Section 21Part 2 — Bills of Exchange
Delivery
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Every contract on a bill, whether it be the drawer’s, the acceptor’s or an indorser’s is incomplete and revocable until delivery of the instrument in order to give effect thereto:
Provided that where an acceptance is written on a bill, and the drawee gives notice to or according to the directions of the person entitled to the bill that the drawee has accepted it, the acceptance then becomes complete and irrevocable.
As between immediate parties, and as regards a remote party other than a holder in due course, the delivery in order to be effectual —
must be made either by or under the authority of the party drawing, accepting or indorsing, as the case may be; and
may be shown to have been conditional or for a special purpose only, and not for the purpose of transferring the property in the bill,
but if the bill be in the hands of a holder in due course, a valid delivery of the bill by all parties prior to the holder so as to make them liable to the holder is conclusively presumed.
Where a bill is no longer in the possession of a party who has signed it as drawer, acceptor or indorser, a valid and unconditional delivery by the drawer, acceptor or indorser is presumed until the contrary is proved.
Defined Terms
delivery