Also known as: as needed · if necessary
Written by attorneys · grounded in primary & secondary sources — see below
A designation in a bill of exchange identifying the person or firm to whom the holder may resort for payment if the drawee dishonors the instrument.
Select any source to read its text and confirm it supports the definition.
Alice Atkins drew a bill of exchange on a customer whose account was overdrawn. She inserted the designation au besoin naming Apollo Energy as the party to approach if the drawee refused payment. When the drawee dishonored the instrument, Alice presented it directly to Apollo Energy under the au besoin clause.
Angela Acosta accepted a bill of exchange from a client that listed au besoin next to Avalon Pharmaceuticals. After discovering the drawee had no intention of honoring the instrument, Angela advised her client to present the bill to Avalon under the au besoin designation rather than filing a misleading statement with the tribunal.
Austin Abbott held a bill of exchange containing an au besoin clause naming Ashford Manufacturing. When his client attempted to present false testimony about the drawee's solvency, Austin refused to offer the evidence and instead directed the client to enforce the instrument against Ashford Manufacturing pursuant to the au besoin designation.
Anika Anand received a bill of exchange that included au besoin language directing payment to Alliance Holdings if the drawee defaulted. During pretrial proceedings the court permitted amendment of the pleadings to add Alliance Holdings as the party liable under the au besoin clause.
Anthony Arnold negotiated a bill of exchange containing an au besoin reference to a third-party guarantor. Upon learning that his client intended to conceal the drawee's insolvency, Anthony disclosed the facts to the tribunal and advised enforcement against the au besoin party.
Anita Ali transferred a bill of exchange that carried an au besoin designation naming a municipal authority. When the city later condemned the underlying property, the court required payment through the au besoin clause to ensure just compensation reached the proper holder.
The phrase designates an alternate party who becomes responsible for payment if the drawee dishonors the instrument. It appears as part of a longer instruction such as au besoin, chez a named firm.
The holder presents the instrument first to the drawee. Upon dishonor the holder may then turn directly to the party named after the au besoin language for payment.
The designation survives in some international bills of exchange although it is less common than it once was. When present it supplies a clear contractual fallback for the holder.
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