WAIVER OF PROTEST: A COMPARATIVE STUDY

Authors

Raúl Olivera y Borges, University of Habana, Habana, Cuba

Abstract

Parallel to the study of protest, it is pertinent to consider the nature and legal effects of exempting clauses which, while not essential, may be found in bills of exchange. Waiver of protest appears to have been introduced by the practice in France during the first third of the nineteenth century. It is generally used to moderate the consequences of non-payment, by a drawer who lacks confidence in the solvency of the drawee, or who fears that he may not be able to provide the necessary funds before maturity. The drawer can thus spare the susceptibilities of a drawee who does not wish nonpayment to be authenticated by a protest. This situation occurs especially in the relationships between dealers and their customers, when the former draw bills of exchange on the latter for sums due; also when the amount of the bill is very small and it is desired to avoid costs that would increase the debt disproportionately. On the other hand, the clause may be inserted at the instance and for the benefit of a payee or holder, when he wishes to avoid the inconvenience of having to make protest (and in some legislations he may thus also avoid having to present the bill and to give notice of dishonor), or in order to facilitate the discounting of the bill at a bank, in case the drawee resides in a locality without banking facilities.

Recommended Citation

Raúl O. Borges, WAIVER OF PROTEST: A COMPARATIVE STUDY, 44 Mich. L. Rev. 113 (1945).
Available at: https://repository.law.umich.edu/mlr/vol44/iss1/5