Bills of Exchange Act 1949 · 2020 Revised Edition · Part 2 · Bills of Exchange
58. Transferor by delivery and transferee
Feedback & supportWhere the holder of a bill payable to bearer negotiates it by delivery without indorsing it, he is called a “transferor by delivery”.
holder
“holder” means the payee or indorsee of a bill or note who is in possession of it, or the bearer thereof;
A transferor by delivery is not liable on the instrument.
delivery
“delivery” means transfer of possession, actual or constructive, from one person to another;
A transferor by delivery who negotiates a bill thereby warrants to his immediate transferee being a holder for value that the bill is what it purports to be, that he has a right to transfer it, and that at the time of transfer he is not aware of any fact which renders it valueless.