ACCEPTOR SUPRA PROTEST Meaning and
Definition
-
Acceptor supra protest, also known as acceptance supra protest, is a legal term used in commercial contexts, particularly in financial transactions involving bills of exchange. This concept refers to the situation where a bill of exchange has been dishonored, or not honored, by the drawee (the party stated in the bill to pay a certain sum of money). In such cases, the holder of the dishonored bill can seek recourse to the acceptor supra protest.
An acceptor supra protest is a third party who has not been mentioned or directly involved in the original transaction. This individual or institution agrees to accept the bill despite its dishonor and becomes liable to pay the holder the amount stated in the bill. By accepting supra protest, the third party assumes the debt and obligations of the original drawee, ensuring that the holder does not suffer any loss.
This legal provision is crucial in preventing financial loss and maintaining the credibility of commercial transactions. It provides an avenue for the holder of a dishonored bill to recover their money, even if the drawee fails to fulfill their payment obligations. The acceptor supra protest can be an individual or a financial institution willing to assume this liability.
Overall, acceptor supra protest acts as a safeguard for the holder of a dishonored bill, ensuring that they are not left uncompensated due to the drawee's failure to honor their payment obligations.
