COMMERCIAL LAW — Bills of Exchange — Waiver of Rights on a Bill Must Be in Writing
Principle Statement
For a holder of a bill to waive or renounce his right under the bill, the same must be in writing. An oral agreement is not sufficient, let alone a waiver by conduct. Such renunciation or writing should be that of the holder.
Ratio Decidendi (Source)
Per Onu, JSC, in Auto Import Export v. Adebayo (2005) NLC-491997(SC) at p. 28; Paras C–D.
"For a holder of a bill to waive or renounce his right under the bill, the same must be in writing. An oral agreement is not sufficient, let alone a waiver by conduct. Such a renunciation or such evidence of writing should be that of the holder… and not that of the 3rd defendant."
Explanation / Scope
Waiver or renunciation of rights under a bill of exchange must be in writing by the holder. Oral agreement or conduct does not suffice. The principle applies to commercial law and bills of exchange. The rule provides certainty and prevents disputes over alleged waivers. Only the holder can effect such written waiver. Third parties cannot claim waiver on the holder’s behalf.
