Presumption of consideration: negotiable instruments and holders presumed valid unless contrary evidence rebuts those presumptions. Section 118 presumes, until contrary proved, that negotiable instruments were made for consideration; that dated instruments were made on the date shown; that accepted bills were accepted within a reasonable time and before maturity; that transfers occurred before maturity; that endorsements appear in the order on the instrument; and that lost negotiable instruments were duly stamped. It further presumes the possessor to be a holder in due course, but places on the possessor the burden of proving holder-in-due-course status when the instrument was obtained from its lawful owner or custodian, or from maker or acceptor, by offence, fraud or unlawful consideration.
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.
Presumption of consideration: negotiable instruments and holders presumed valid unless contrary evidence rebuts those presumptions.
Section 118 presumes, until contrary proved, that negotiable instruments were made for consideration; that dated instruments were made on the date shown; that accepted bills were accepted within a reasonable time and before maturity; that transfers occurred before maturity; that endorsements appear in the order on the instrument; and that lost negotiable instruments were duly stamped. It further presumes the possessor to be a holder in due course, but places on the possessor the burden of proving holder-in-due-course status when the instrument was obtained from its lawful owner or custodian, or from maker or acceptor, by offence, fraud or unlawful consideration.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
