Partial failure of money-consideration reduces recoverable sum proportionally from signers who stand in immediate relation to the holder. When the money consideration for a promissory note, bill of exchange or cheque is partly absent or has partly failed, the amount receivable by a holder standing in immediate relation with the signer is proportionally reduced; immediate relation encompasses drawer-acceptor, maker-payee and indorser-indorsee relations, and other signers may be treated as in immediate relation by agreement.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Partial failure of money-consideration reduces recoverable sum proportionally from signers who stand in immediate relation to the holder.
When the money consideration for a promissory note, bill of exchange or cheque is partly absent or has partly failed, the amount receivable by a holder standing in immediate relation with the signer is proportionally reduced; immediate relation encompasses drawer-acceptor, maker-payee and indorser-indorsee relations, and other signers may be treated as in immediate relation by agreement.
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