Under the provisions of the Bills of Exchange Act,
• A bill of itself does not operate as an assignment of funds in the hands of the drawee available for payment of the bill. The drawee of a bill who does not accept it is therefore not liable on it (53).
• The acceptor of a bill, by accepting it according to the tenor of his acceptance engages that he will pay it according to the tenor of his acceptance is precluded from denying to a holder in due course.
• The existence of the drawer, the genuineness of his signature, and his capacity and authority to draw the bill.
• In the case of a bill payable to the drawers order, then the capacity of the drawer to endorse, but not the genuineness or validity of his endorsement.
• In the case of the bill payable to the order of a third person, the existence of the payee and his capacity to endorse, but not the validity or the genuineness of his endorsement.
The drawer of a bill by drawing it
• Engages that on due presentment, it shall be accepted and paid according to its tenor, and if it be dishonoured he will compensate the holder or any endorser who is compelled to pay it, so long as the requisite proceedings on dishonour by duly taken.
• Is precluded for denying to a holder in due course the existence of the payee and his capacity to endorse.
The endorser of a bill by endorsing it.
• Engages that on due presentment, it shall be accepted and paid according to its tenor, and if it be dishonoured he will compensate the holder or subsequent endorser who is compelled to pay it so long as the requisite proceedings on dishonour be duly taken.
• Is precluded from denying to a holder in due course the genuineness or regularity in all respects of the drawers signature and all previous endorsements.
• Is precluded from denying to his immediate or subsequent endorsee that the bill was at the time of his endorsement a valid and substituting bill, and that he had then a good title thereto.
