Uganda
Bills of Exchange Act
Chapter 68
- Commenced on 15 August 1933
- [This is the version of this document at 31 December 2000.]
- [Note: The version of the Act as at 31 December 2000 was revised and consolidated by the Law Reform Commission of Uganda. All subsequent amendments have been researched and applied by Laws.Africa for ULII.]
Part I – Interpretation
1. Interpretation
In this Act, unless the context otherwise requires—Part II – Bills of exchange
Form and interpretation.
2. Bill of exchange defined
3. Inland and foreign bills
4. Effect where different parties to bill are the same person
5. Address to drawee
6. Certainty required as to payee
7. What bills are negotiable
8. Sum payable
9. Bill payable on demand
10. Bill payable at a future time
11. Omission of date in bill payable after date
Where a bill expressed to be payable at a fixed period after date is issued undated, or where the acceptance of a bill payable at a fixed period after sight is undated, any holder may insert in the bill the true date of issue or acceptance, and the bill shall be payable accordingly; but—12. Antedating and postdating
13. Computation of time of payment
Where a bill is not payable on demand, the date on which it falls due is determined as follows—14. Case of need
The drawer of a bill and any endorser may insert in it the name of a person to whom the holder may resort in case of need, that is to say, in case the bill is dishonoured by nonacceptance or nonpayment. Such person is called the “referee in case of need”. It is in the option of the holder to resort to the referee in case of need or not as he or she may think fit.15. Optional stipulations by drawer or endorser
The drawer of a bill and any endorser may insert in the bill an express stipulation—16. Definition and requisites of acceptance
17. Time for acceptance
18. General and qualified acceptances
19. Inchoate instruments.
20. Delivery
Capacity and authority of parties
21. Capacity of parties
22. Signature essential to liability
No person is liable as drawer, endorser or acceptor of a bill who has not signed it as such; except that—23. Forged or unauthorised signature
Subject to this Act, where a signature on a bill is forged or placed on the bill without the authority of the person whose signature it purports to be, the forged or unauthorised signature is wholly inoperative, and no right to retain the bill or to give a discharge for it or to enforce payment of it against any party to it can be acquired through or under that signature, unless the party against whom it is sought to retain or enforce payment of the bill is precluded from setting up the forgery or want of authority; but nothing in this section shall affect the ratification of an unauthorised signature not amounting to a forgery.24. Procuration signatures
A signature by procuration operates as notice that the agent has but a limited authority to sign, and the principal is only bound by such signature if the agent in so signing was acting within the actual limits of his or her authority.25. Person signing as agent or in representative capacity
The consideration for a bill
26. Value and holder for value
27. Accommodation bill or party
28. Holder in due course
29. Presumption of value and good faith
Negotiation of bills
30. Negotiation of bill
31. Requisites of a valid endorsement
An endorsement in order to operate as a negotiation must comply with the following conditions—32. Conditional endorsement
Where a bill purports to be endorsed conditionally, the condition may be disregarded by the payer, and payment to the endorsee is valid whether the condition has been fulfilled or not.33. Endorsement in blank and special endorsement
34. Restrictive endorsement
35. Negotiation of overdue or dishonoured bill
36. Negotiation of bill to party already liable on the bill
Where a bill is negotiated back to the drawer, or to a prior endorser, or to the acceptor, such party may, subject to the provisions of this Act, reissue and further negotiate the bill, but he or she is not entitled to enforce payment of the bill against any intervening party to whom he or she was previously liable.37. Rights of the holder
The rights and powers of the holder of a bill are as follows—(a)he or she may sue on the bill in his or her own name;(b)where he or she is a holder in due course, he or she holds the bill free from any defect of title of prior parties, as well as from mere personal defences available to prior parties among themselves, and may enforce payment against all parties liable on the bill;(c)where his or her title is defective—(i)if he or she negotiates the bill to a holder in due course, that holder obtains a good and complete title to the bill; and(ii)if he or she obtains payment of the bill, the person who pays him or her in due course gets a valid discharge for the bill.General duties of the holder
38. When presentment for acceptance is necessary
39. Time for presenting bill payable after sight
40. Rules as to presentment for acceptance and excuses for nonpresentment
41. Nonacceptance
When a bill is duly presented for acceptance, and is not accepted within the customary time, the person presenting it must treat it as dishonoured by nonacceptance. If he or she does not, the holder shall lose his or her right of recourse against the drawer and endorsers.42. Dishonour by nonacceptance and its consequences
43. Duties as to qualified acceptances
44. Rules as to presentment for payment
45. Excuses for delay or nonpresentment for payment
46. Dishonour by nonpayment
47. Notice of dishonour and effect of nonnotice
Subject to this Act, when a bill has been dishonoured by nonacceptance or by nonpayment, notice of dishonour must be given to the drawer and each endorser, and any drawer or endorser to whom the notice is not given is discharged; except that—48. Rules as to notice of dishonour
Notice of dishonour in order to be valid and effectual must be given in accordance with the following rules—49. Excuses for nonnotice and delay
50. Noting or protest of bill
51. Duties of holder as regards drawee or acceptor
Liabilities of parties
52. Bill not assignment of funds in hands of drawee
A bill of itself does not operate as an assignment of funds in the hands of the drawee available for the payment of it, and the drawee of a bill who does not accept as required by this Act is not liable on the instrument.53. Liability of acceptor
The acceptor of a bill, by accepting it—54. Liability of drawer or endorser
55. Stranger signing bill liable as endorser
Where a person signs a bill otherwise than as drawer or acceptor, he or she thereby incurs the liabilities of an endorser to a holder in due course.56. Measure of damages against parties to dishonoured bill
Where a bill is dishonoured, the measure of damages, which shall be deemed to be liquidated damages, shall be as follows—57. Transferor by delivery and transferee
Discharge of bill
58. Payment in due course
59. Banker paying demand draft on which endorsement is forged
60. Acceptor the holder at maturity
When the acceptor of a bill is or becomes the holder of it at or after its maturity, in his or her own right, the bill is discharged.61. Express waiver
62. Cancellation
63. Alteration of bill
Acceptance and payment for honour
64. Acceptance for honour supra protest
65. Liability of acceptor for honour
66. Presentment to acceptor for honour
67. Payment for honour supra protest
Lost instruments
68. Holder’s right to duplicate of lost bill
69. Action on lost bill
In any action or proceeding upon a bill, the court or a judge may order that the loss of the instrument shall not be set up, provided an indemnity is given to the satisfaction of the court or judge against the claims of any other person upon the instrument in question.Bill in a set
70. Rules as to sets
Conflict of laws
71. Rules where laws conflict
Where a bill drawn in one country is negotiated, accepted or payable in another, the rights, duties and liabilities of the parties to the bill are determined as follows—Part III – Cheques on a banker
72. Cheque defined
73. Presentment of cheque for payment
Subject to this Act—74. Revocation of banker’s authority
The duty and authority of a banker to pay a cheque drawn on him or her by his or her customer are determined by—(a)countermand of payment;(b)notice of the customer’s death.Crossed cheques
75. General and special crossings defined
76. Crossing by drawer or after issue
77. Crossing a material part of cheque
A crossing authorised by this Act is a material part of the cheque; it shall not be lawful for any person to obliterate or, except as authorised by this Act, to add to or alter the crossing.78. Duties of banker as to crossed cheques
79. Protection to banker and drawer where cheque is crossed
Where the banker on whom a crossed cheque is drawn, in good faith and without negligence, pays it, if crossed generally, to a banker, and if crossed specially, to the banker to whom it is crossed, or is agent for collection being a banker, the banker paying the cheque, and, if the cheque has come into the hands of the payee, the drawer, shall respectively be entitled to the same rights and be placed in the same position as if payment of the cheque had been made to the true owner of the cheque.80. Effect of words “not negotiable”
Where a person takes a crossed cheque which bears on it the words “not negotiable”, he or she shall not have, and shall not be capable of giving, a better title to the cheque than that which the person from whom he or she took it had.81. Protection to collecting banker
Part IV – Promissory notes
82. Promissory note defined
83. Delivery necessary
A promissory note is inchoate and incomplete until delivery of it to the payee or bearer.84. Joint and several notes
85. Note payable on demand
86. Presentment of note for payment
87. Liability of maker
The maker of a promissory note by making it—88. Application of Part II to notes
Part V – Supplementary
89. Good faith
A thing is deemed to be done in good faith within the meaning of this Act where it is in fact done honestly, whether it is done negligently or not.90. Signature
91. Computation of time
92. When noting equivalent to protest
For the purposes of this Act, where a bill or note is required to be protested within a specified time, or before some further proceeding is taken, it is sufficient that the bill has been noted for protest before the expiration of the specified time or the taking of the proceeding; and the formal protest may be extended at any time thereafter as of the date of the noting.93. Protest when notary not accessible
94. Dividend warrants may be crossed
The provisions of this Act as to crossed cheques shall apply to a warrant for payment of dividend.95. Savings
History of this document
31 December 2000 this version
Consolidation
15 August 1933
Commenced