Legal Definitions - next presentation

The term "next presentation" refers to the subsequent act of formally submitting a document, instrument, or set of documents to an obligated party for acceptance, payment, or honor, following an initial or previous submission. It implies that a prior presentation has taken place, and a further one is now due or required, often because the first attempt was unsuccessful, incomplete, or conditional.

• Example 1: Re-presenting a Bounced Check

  Imagine a small business owner deposits a customer's check into their bank account. The bank initially presents the check to the customer's bank for payment, but it is returned due to insufficient funds in the customer's account. The business owner contacts the customer, who assures them funds will be available in a few days. The business owner's bank then attempts to process the check again a few days later.

  How it illustrates the term: The initial deposit and submission to the customer's bank was the first "presentation." The subsequent attempt by the bank to clear the check after the customer added funds is the "next presentation."

• Example 2: Correcting Documents for a Letter of Credit

  An exporter ships goods to an overseas buyer and, to receive payment, submits the required shipping documents (like the bill of lading, commercial invoice, and packing list) to their bank under a letter of credit. The bank reviews the documents and finds a minor discrepancy – for instance, a typo in the description of goods on one of the documents. The bank notifies the exporter, who then corrects the error and resubmits the revised documents.

  How it illustrates the term: The exporter's initial submission of documents to the bank was the first "presentation." The act of submitting the corrected documents after addressing the discrepancy constitutes the "next presentation."

• Example 3: Seeking Acceptance of a Bill of Exchange

  A supplier sells goods to a distributor on credit and draws a bill of exchange, which is a written order for the distributor to pay a specified sum of money at a future date. The supplier's bank initially presents this bill to the distributor for their acceptance (their signature agreeing to pay). The distributor requests a few days to verify the shipment details before formally accepting the bill. After their review, the supplier's bank presents the bill to the distributor once more for their signature.

  How it illustrates the term: The initial submission of the bill of exchange to the distributor for their agreement was the first "presentation." The subsequent re-submission of the bill to obtain the distributor's formal acceptance after their review period is the "next presentation."