Tanzania
Bills of Exchange Act
Chapter 215
- Published in Tanzania Government Gazette
- Commenced on 15 May 1931
- [This is the version of this document at 31 July 2002.]
- [Note: This legislation has been thoroughly revised and consolidated under the supervision of the Attorney General's Office, in compliance with the Laws Revision Act No. 7 of 1994, the Revised Laws and Annual Revision Act (Chapter 356 (R.L.)), and the Interpretation of Laws and General Clauses Act No. 30 of 1972. This version is up-to-date as at 31st July 2002.]
Part I – Preliminary provisions (ss. 1-2)
1. Short title
This Act may be cited as the Bills of Exchange Act.2. Interpretation
In this Act, unless the context otherwise requires—"acceptance" means an acceptance completed by delivery or notification;"action" includes counter claim and set off;"banker" includes a body of persons whether incorporated or not who carry on the business of banking;"bankrupt" includes any person whose estate is vested in a trustee or assignee under the law for the time being in force relating to bankruptcy;"bearer" means the person in possession of a bill or note which is payable to bearer;"bill" means bill of exchange;"delivery" means transfer of possession, actual or constructive, from one person to another;"holder" means the payee or indorsee of a bill or note who is in possession of it, or the bearer thereof;"indorsement" means an indorsement completed by delivery;"issue" means the first delivery of a bill or note, complete in form to a person who takes it as a holder;"note" means promissory note;"value" means valuable consideration.Part II – Bills of exchange (ss. 3-72)
Form and interpretation (ss. 3-21)
3. Definition
4. Inland and foreign bills
5. Effect where different parties to bill are the same person
6. Address to drawee
7. Certainty required as to payee
8. What bills are negotiable
9. Sum payable
10. Bill payable on demand
11. Bill payable at a future time
A bill is payable at a determinable future time within the meaning of this Act which is expressed to be payable—12. Omission of date in bill payable after date
Where a bill expressed to be payable at a fixed period after the date is issued undated, or where the acceptance of a bill payable at a fixed period after sight is undated, any holder may insert therein the true date of issue or acceptance, and the bill shall be payable accordingly:Provided that—13. Ante-dating and post-dating
14. Computation of time of payment
Where a bill is not payable on demand the day on which it falls due is determined as follows:15. Case of need
16. Optional stipulations by drawer or indorser
The drawer of a bill, and any indorser, may insert therein an express stipulation—17. Definition and requisites of acceptance
18. Time for acceptance
A bill may be accepted—19. General and qualified acceptances
20. Inchoate instruments
21. Delivery
Capacity and authority of parties (ss. 22-26)
22. Capacity of parties
23. Signature essential to liability
No person is liable as drawer, indorser, or acceptor of a bill who has not signed it as such:Provided that—24. Forged or unauthorised signature
Subject to the provisions of this Act, where a signature on a bill is forged or placed thereon 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 or to enforce payment against any party thereto 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:Provided that nothing in this section shall affect the ratification of an unauthorised signature not amounting to a forgery.25. 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 that signature if the agent in so signing was acting within the actual limits of his authority.26. Person signing as agent or in representative capacity
The consideration for a bill (ss. 27-30)
27. Value and holder for value
28. Accommodation bill or party
29. Holder in due course
30. Presumption of value and good faith
Negotiation of bills (ss. 31-38)
31. Negotiation of bill
32. Requisites of a valid indorsement
33. Conditional indorsement
Where a bill purports to be indorsed conditionally the condition may be disregarded by the payer, and payment to the indorsee is valid whether the condition has been fulfilled or not.34. Indorsement in blank and special indorsement
35. Restrictive indorsement
36. Negotiation of overdue or dishonoured bill
37. Negotiation of bill to party already liable thereon
Where a bill is negotiated back to the drawer, or to a prior indorser or to the acceptor, that party may, subject to the provisions of this Act, re-issue and further negotiate the bill, but he is not entitled to enforce payment of the bill against any intervening party to whom he was previously liable.38. Rights of holder
The rights and powers of the holder of a bill are as follows—General duties of the holder (ss. 39-52)
39. When presentment for acceptance is necessary
40. Time for presenting bill payable after sight
41. Rules as to presentment for acceptance and excuses for non-presentment
42. Non-acceptance
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 non-acceptance and if he does not, the holder shall lose his right of recourse against the drawer and indorsers.43. Dishonour by non-acceptance and its consequences
44. Duties as to qualified acceptances
45. Rules as to presentment for payment
46. Excuses for delay or non-presentment for payment
47. Dishonour by non-payment
48. Notice of dishonour and effect of non-notice
Subject to the provisions of this Act, when a bill has been dishonoured by non-acceptance or by non-payment, notice of dishonour must be given to the drawer and each indorser, and any drawer or indorser to whom such notice is not given is discharged:Provided that—49. Rules as to notice of dishonour
50. Excuses for non-notice and delay
51. Noting or protest of bill
52. Duties of holder as regards drawee or acceptor
Liabilities of parties (ss. 53-58)
53. 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 thereof, and the drawee of a bill who does not accept as required by this Act is not liable on the instrument.54. Liability of acceptor
The acceptor of a bill, by accepting it55. Liability of drawer or indorser
56. Stranger signing bill liable as indorser
Where a person signs a bill otherwise than as drawer or acceptor, he thereby incurs the liabilities of an indorser to a holder in due course.57. 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—58. Transferor by delivery and transferee
Discharge of bill (ss. 59-64)
59. Payment in due course
60. Banker paying demand draft whereon indorsement is forged
61. 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 own right, the bill is discharged.62. Express waiver
63. Cancellation
64. Alteration of bill
Acceptance and payment for honour (ss. 65-68)
65. Acceptance for honour supra protest
66. Liability of acceptor for honour
67. Presentment to acceptor for honour
68. Payment for honour supra protest
Lost instruments (ss. 69-70)
69. Holder's right to duplicate of lost bill
70. Action on lost bill
In any action or proceeding upon a bill, the court may order that the loss of the instrument shall not be set up, provided an indemnity be given to the satisfaction of the court against the claims of any other person upon the instrument in question.Bill in a set (s. 71)
71. Rules as to sets
Conflict of laws (s. 72)
72. Rules where laws conflict
Part III – Cheques and protection of a banker (ss. 73-88)
73. Definition
74. Presentment of cheque for payment
Subject to the provisions of this Act—75. Revocation of banker's authority
The duty and authority of a banker to pay a cheque drawn on him by his customer are determined by—Crossed cheques (ss. 76-88)
76. General and special crossings defined
77. Crossing by drawer or after issue
78. Crossing a material part of cheque
A crossing authorised by this Act is a material part of the cheque and it shall not be lawful for any person to obliterate or, except as authorised by this Act, to add to or alter the crossing.79. Duties of banker as to crossed cheques
80. 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 his 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 thereof.81. Effect of crossing on holder
Where a person takes a crossed cheque which bears on it the words "not negotiable", he shall not have and shall not be capable of giving a better title to the cheque than that which the person from whom he took it had.82. Protection of bankers paying unindorsed cheques, etc.
83. Rights of bankers collecting unindorsed cheques
A banker who gives value for, or has a lien on, a cheque payable to order which the holder delivers to him for collection without indorsing it, has the same rights, if any, as he would have had if, upon delivery, the holder had indorsed it in blank.84. An unindorsed cheque evidence of payment
An unindorsed cheque which appears to have been paid by the banker on whom it is drawn shall be prima facie evidence of the receipt by the payee of the sum payable in respect of the cheque.85. Protection of bankers collecting payment of cheques, etc.
86. Application of certain provisions of this Act to certain instruments
The provisions of this Act relating to cross cheques shall, so far as is applicable, have effect in relation to to the instruments, other than cheques, to which section 85 of this Act applies, in the same way as they have effect in relation to cheques.87. Application
Sections 82 to 86 shall not make negotiable any instrument which, apart from them, is not negotiable.88. Application of sections 76 to 87 to bankers' drafts
Part IV – Promissory notes (ss. 89-95)
89. Definition
90. Delivery necessary
A promissory note is inchoate and incomplete until delivery to the payee or bearer.91. Joint and several notes
92. Note payable on demand
93. Presentment of note for payment
94. Liability of maker
The maker of a promissory note by making it—95. Application of Part II to notes
Part V – Supplementary provisions (ss. 96-102)
96. 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.97. Signature
98. Computation of time
99. 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.100. Protest when notary not accessible
101. Dividend warrants may be crossed
The provisions of this Act as to crossed cheques shall apply to a warrant for payment of dividend.102. Savings
History of this document
31 July 2002 this version
Consolidation
15 May 1931
Commenced
Documents citing this one 14
Judgment 13
Legislation 1
1. | Bankruptcy Rules, 1931 |