Maker, drawer and acceptor principals
Full Text
Maker, drawer and acceptor principals.—The maker of a promissory note or cheque, the drawer of a bill of exchange until acceptance, and the acceptor are, in the absence of a contract to the contrary, respectively liable thereon as principal debtors, and the other parties thereto are liable thereon as sureties for the maker, drawer or acceptor, as the case may be.
Plain English Summary
Designates the maker, acceptor, or drawer (before acceptance) as principal debtors, with all other parties (like endorsers) acting as sureties for them.
Key Legal Elements
- Maker of a note/cheque and acceptor of a bill are liable as principal debtors
- Drawer of a bill is liable as principal debtor until acceptance
- Other parties to the instrument are liable as sureties for the principal debtors
Practical Note
Governs relationship between parties. The primary debtor is the maker or acceptor. Endorsers are sureties. If a surety (endorser) pays the holder, they gain a right of subrogation to recover the paid amount from the principal debtors.
हिंदी पाठ
निर्माता, आहर्ता और स्वीकर्ता प्रधान ऋणी के रूप में।—वचन-पत्र या चेक का निर्माता, विनिमय-पत्र का आहर्ता (स्वीकृति मिलने तक), और स्वीकर्ता, विपरीत अनुबंध के अभाव में, क्रमशः उस पर प्रधान ऋणी (principal debtors) के रूप में उत्तरदायी होते हैं, और लिखत के अन्य पक्षकार (जैसे पृष्ठांकक) स्थिति के अनुसार निर्माता, आहर्ता या स्वीकर्ता के लिए प्रतिभू (sureties) के रूप में उत्तरदायी होते हैं।