Form and Content of Protest

A protest is a formal certificate issued by a public notary that serves as legal evidence of non-acceptance or non-payment. Unlike noting, which is a record made directly on the instrument, a protest is a separate document. The Commercial Code requires that for bills of exchange and promissory notes, the protest must be drawn on a separate sheet and subsequently attached to the instrument under Articles 785 and 825(1)(d). While Article 868(a) characterizes a protest for a cheque as a formal instrument, current practice in Ethiopia typically relies on noting rather than a formal protest by a public notary. In practice, the drawee bank usually provides a dated declaration written on the cheque or on a separate slip of paper accompanying it.

Essential Particulars of a Protest Document

To be legally valid, a protest for a bill or note must contain specific information. This includes the names of the payee, the maker, and the drawee. It must also include a formal statement that the maker or drawee was unsuccessfully summoned to satisfy the obligations of the instrument or that they could not be found. The document must specify the exact place and day the summons was made or the instrument was presented. Furthermore, it must bear the signature of the authorized person who drew up the protest and mention any partial payments made. Although the code is less explicit regarding the content for cheques, these requirements are generally applied by analogy in the rare cases where a formal protest is used.

Time Limits for Drawing a Protest for Non-Acceptance

A holder is required to act promptly when an instrument is dishonored, as delays can lead to the loss of the right of recourse. For non-acceptance, the protest must generally be drawn within the time limit fixed for presentment. For a bill payable at a fixed period after sight, this is typically within one year of its date, unless shortened or extended by the drawer or shortened by an endorser. If the drawer specifically orders presentment within a certain timeframe, the protest must be drawn within that specific period. If no specific timeframe is mentioned in the order, the holder has until the day the bill becomes payable, plus the two business days following, to draw the protest.

Time Limits for Protest of Fixed-Date Instruments

For bills of exchange or promissory notes payable on a fixed day or at a fixed period after date or sight, the protest for non-payment must be drawn on one of the two working days following the day the instrument is payable. These two days essentially act as a legal window for the holder to formalize the dishonor. For example, if a note is payable on January 1, the holder must secure the protest on January 2 or 3, assuming those are business days. Failure to adhere to this strict "two working days" rule can jeopardize the holder's ability to recover funds from endorsers or the drawer.

Time Limits for Instruments Payable at Sight

Instruments payable at sight, including cheques and certain notes or bills, follow different rules based on their respective presentment periods. A bill or promissory note payable at sight must be presented within one year of its date, and consequently, the protest for non-payment must be drawn within that same year. In contrast, a cheque must be presented for payment within six months of its date according to Article 855. Therefore, the protest for a cheque must be drawn within this six-month window. If a cheque is presented on the very last day of this six-month period, Article 869(2) allows the holder to draw the protest on the following working day.