This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 277.— A draws upon B in Rossland by mistake; he should have drawn on him in Nelson, where he has a place of business and a residence. The item is sent forward to Rossland, subject to protest for non-acceptance. Draft is returned protested for non-acceptance. Inasmuch as the drawee has no place of business or residence in Rossland, and the draft was never presented to him, where are there any grounds for protest?
Answer.—It would seem clear that the bill must be regarded as dishonoured by non-acceptance, and it was the holder's duty, in view of the instructions quoted, to protest the bill. The matter works out in this way:
If after the exercise of reasonable diligence presentment cannot be made to the drawee or to some person authorized to accept or refuse acceptance on his behalf, presentment is excused (41, 2 b), and the bill may be treated as dishonoured by non-acceptance (41, 2). The holder of a bill dishonoured by non-acceptance may, if he thinks fit, protest the same (section 51). In this case the agent of the holder was instructed to protest, and would not have acted in accordance with his duty if he had returned the bill without protest.