7.3 Negotiable Instruments, Related Parties and Liabilities

• Maker/drawer — admits the instrument's contents by signing; liable to the holder. • Acceptor — by acceptance takes the primary liability on a bill. • Endorser — by endorsement engages that the instrument will be paid on presentment, and compensates subsequent holders on dishonour with notice. • Drawee bank (cheque) — pays or returns within the protection of its customer's mandate and available balance; wrongful dishonour damages the customer's credit. • Holder in due course — takes the instrument complete and regular, before maturity, in good faith and for value; the Act's favoured person.