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THE 
 
 BILLS OF EXCHANGE ACT, 1890: 
 
 CODIFICATION OF THE LAW MKKCHANT KESPKCTINO 
 
 BILLS OF EXCHANGE, CHEQUES, AND PROMISSORY NOTES, 
 
 WITH 
 
 KXI'LANATOllV NOTKS AND IM.lSTKATKtNS FltO.M 
 
 CANADIAN, LNCiLLSII. AND AMKIJK'AN DIVISIONS. 
 
 By 
 
 THOMAS HODGIN.S, M.A., 
 
 ONK. in IIKR MA.IKSrV's <ul S«tl,. 
 
 ".V„u ,;-!l alin Irx Home; nil,, .\,h'ni.s, „li„ ,„n>r, „ll., ,„UI,n,: s,,l .; „,„„l „„ 
 Uentrx ,t ,.,„ni lemporc, una eculriii'in.' l,j- „^n/i,7;,7.'— Ci, khi,. 
 
 T O R O N T O : 
 ROWSELL \: injTCHISON; 
 
 JTato Ihiblisljrrs iinb $oohstilcrs. 
 1890. 
 
Entrreh accordiiiff to Act of the Parliament of Canada, in the year 1890, by Tiiov i IIoixiiNS, 
 at the Uopartiiicnt of Agriculture. 
 
 ROWSBLL AND UlIfHltiOS, LAW PKIMTKRS TORONTO. 
 
PREFACi:. 
 
 With the oxccption of a few statutory provisions, tlie law 
 
 relating to Hills of Exchanj^e, Cheques, and Pronussory Notes, 
 
 prior to the present Act, hail hcen mainly proinulj,'ate(l throuijh 
 
 judicial deci.sioiis, lecoijni/inij and giving eH'ect to the usages and 
 
 customs of Jiankers and Merchants. 
 
 These decisions must now be rea<l as subordinate to the statu- 
 tory rules jirescribed by the Act. But where the eases illustrating 
 the text aie faii'ly applicable to the statute, they may be cited as 
 the judicial argument upon which the legislative decision has been 
 founded. 
 
 A comparison with the former statutes will show t'nat in some 
 instances alterations have been made in the law, especially as to 
 the form under which a bill or note becomes payable generally, 
 which may affect the mode of presentir^ent for ])ayment. 
 
 But the most important change is the introduction of the system 
 of Crossed (Cheques, which is recognized in English banking and 
 mercantile communities as a protection to both bank and customer. 
 
 Othi'r provisions jiave been introduced, which are referred to in 
 the notes ; and attention may be directed to tlu^ clause under 
 which the French and CJerman system of guarant* oing a bill or 
 note, puat' Av<il, — recognized as law in Quebec, — may, or may not, 
 •w^hen tested by the judicial ])i"ocess, become a useful addition to 
 the general law-merchant in the other Pj'ovinces and territories. 
 
 As those negotiable securities are governed by similar laws in 
 all commercial nations, the notes of cases have been taken from 
 English and American authorities, as well as fiom decisions in the 
 Ontario, Quebec, JSova Scotia, New Brunswick, and Manitoba 
 Courts. 
 
 The annotations are inten<led to aid in a critical examination, 
 as well as illustration, of the diHerent sections of the Act. 
 
 No modern writer can properly deal with the Act without the 
 aid of Judge Chalmers's " Digest of the law of Bills of Exchange, 
 Promissory' Notes, and Che(jues." As diaftsman and critieof the 
 English Act, — of which our Act is almost entirely a transcript, — 
 he has done good service to all the Etiglish-.speaking communities 
 which have avuled themselves of his codification of the law. 
 
 T. H. 
 
TABLi: OF CASES. 
 
 »♦» 
 
 Canadian Canen. 
 
 Page. 
 
 Ail.Ulls V. Tlntiriiis (i!) 
 
 Allison V. ( Vntr.il IJ.iiik :<U 
 
 AikU THoii V. ■Iciinin^'s I !.'< 
 
 Ari'luT V. Loitie '2(11 
 
 Aniioiir V. ( iiitcM ()7, 1 14 
 
 Ash V. (;i. ,it \V( stem K. ( '(» -J.S 
 
 Aul.lj.) V. .M.|)()ii-all 4!), lO'J 
 
 FJiiillic V. I)ii Ustiii 
 
 I tall I w ill V. Hitcliiork 
 
 I5h11 v. <ii1s(iii 
 
 iJ.iiik lit liriti^ii Nortii Aiiit'ricii v. 
 
 Klliutt 
 
 Hank i>iili.sii North Ainciioa v. ilonus 
 
 174, 
 l>ank I'liitisli Xuitli Aiiiurica v. Iluss 
 
 I7(>, 
 
 I'ahk ot lliiiiiiltdii V. Ifarvoy 
 
 IJaiik nf llaiiiiitoii V. N(»ye 
 
 15,1 Ilk <il Mil lii;^aM V. (iray 
 
 I>aiik (it Miiiitiiiil V. I'cthuiit; 
 
 hank 111 Miiiiiieal v. ('aiiiiion 
 
 liaiik iif Miintii'al v. l)t.'Latro 
 
 Hank ul Mniilical v. (JroviT 
 
 Hank <if Miiiilit'al V. llanismi 
 
 Uaiik lit Muiilical V. I>aii;;l(ii« 
 
 Hank lit Mniitival V. Little 
 
 ISaiik lit vimilical V. Iti'v iiiilils 
 
 I'aiik lit M.iiitiial V. Scott . .' 
 
 Hank ut Miiitii al v. Sinurt 
 
 I'.ank if Moiitnal v. 'riiiiin.is..(l'.t, >s;{, 
 liaiik iif Niw I'riiiisv. irk v. Kimulis. 
 Hank oi New llriin.'^w ii'k v. Mill.oan. 
 Bank ot I'lHH r Caiiatla V. liaitictt . 
 Hank <n I'lH fi (.'..iiada v. Hlonr .... 
 liaiik ot I'piur Caiiaila v. Coolry 
 Hank oi I'l'iu'i Cuiaila v. (i\\\iiin', . 
 iiank ot r|i|ifr (.'.iiiaila v. .lanline .. 
 liaiik ot l.'i'iur t anada v. Joins .... 
 Hunk of UiipiT Canada v. Oi'kciinan 
 Iiank oi I |')H'i' ( anada V. Ittitian .. 
 ]iank of I iipi T ('.-(iiada V. Slicrwond. 
 Hank of I'pinr Canada v. SMiitli.l7.>, 
 Hank <it I'l'piT Canada v. I'liiinias . . 
 Baiuino J :u((iu's Cartior v. Stiaclian. 
 Hanijiio Natiiiiiale v. City Hunk .... 
 Hai btr v, Morton 
 
 ISI 
 
 7i") 
 
 2r.7 
 
 i4r. 
 
 '212 
 IS'.' 
 
 r)2 
 •2:{ 
 
 17.. 
 
 4-2 
 I'ilt 
 
 (17 
 174 { 
 •202 I 
 
 i;is! 
 
 120 
 
 isi ! 
 
 !()(! 
 1!I2 I 
 IM ; 
 
 177: 
 
 •2(i7 I 
 
 177 
 
 1N2; 
 
 i:i7 
 
 '211 
 
 to: 
 
 '211 : 
 I.S7 
 
 •211 
 17si 
 '211 i 
 
 241 I 
 1-28 
 
 Page, 
 
 He.unlry v. r>a(laniino 'i.lS 
 
 Heekutt V. (a)niinh iJS'i 
 
 Hocnur v.Oliviif S8 
 
 li.ll V. Manning; I'iO 
 
 lifll V. iMollat Wo, 1)4 
 
 H.ll V. Iliiidcll 1'2!) 
 
 licrto)! V. ( 'I'litral Hank 54 
 
 HitttiM V. WolliT ;i(» 
 
 Hiilwt 11 V. Stanton liJft 
 
 Hi,-j;s V. Wood '2()0 
 
 Hiiolcaii V. IVtoiiIii '2;')4 
 
 Hlaiklcy v. .McCabc 1(»7 
 
 I'.lain v.Olipliant r28 
 
 Hlako V. WaUh ll.->, 117 
 
 Hiiiiii V. l)ixon 174 
 
 I'.ootii V. Ilidloy '200 
 
 Hoiilton V. .loncH '2."i4 
 
 Hoycs V. .losiph 159 
 
 Hiadbuiy V. Koole 4-2, 18ti 
 
 Hrad'iiiry v. Olivir 74 
 
 Hiidgford V. Siniinons I;")!) 
 
 lli-iltoii V. Kishei' 14'2 
 
 llrooke V. Arnold 14'2 
 
 Hrowii V. Ilowland 47 
 
 l>ro\Mi V. Mai.sli M'i 
 
 Hrowiic V. iioiilton lt>2 
 
 liiowiio V. C'oiiiiiiciciai Iiank lliG 
 
 Hiitlilo Iiank V. Ti .scott '2:f() 
 
 I'liii'k'.s (,'asi' 1 15 
 
 liuikc V. KUiott lfS'2 
 
 liiii'idiaiii V. I'ctuiliorougli ill) 
 
 (.'aiii)ili('ll V. .McKinnon '217 
 
 Canadian Hank ol Coinnu'ri'u v. (ifeen 181 
 
 < anadiaii Hank ol Coinnioruu v. Ross. 1'2() 
 (,'anatliaii Hank of Coinnierce v. 
 
 Woiidwaid 1 1(5 
 
 Canadian Seuuritii's Co. v. I'fcntico . 1411 
 
 ( arnitlii'i s V. .\idaj,dl !)5 
 
 CaN.sidy V. Maiislifld 174 
 
 Cazit V. Kiik liO 
 
 (Vutial Iiank, AV 52, 89, 1 15 
 
 ( liapinaii V. Hishop 17t» 
 
 ( hing V. Jetl'ivy 14'2 
 
 City Hank v. Cheney 107 
 
 City Hank v. Ilnnter 1H7 
 
 City Hank v. Liitluur 92 
 
 City Hank v. Ley 187 
 
4 
 
 TAHI.K OF CASKS. 
 
 74 
 
 rity()f(Jla»gow' IJank v, Miinlock. 101, li'O 
 
 ('l;iriliui! V. Mi>rri« i'»4 
 
 (^iicliniiH! V. < 'nil 'M 
 
 ('•liner V. 'I'lumijiHi II 115 
 
 ('iMi.incrciiil IJiiiik v. Hrfj,'!i 'JCiil 
 
 Comiiicrciai l>;itik v. .Inlinston. . '.Ml, '2(i(l 
 
 ('iiiiiiiii'i'ctiiil Itiiiik V. Hiililjii WV, 
 
 ('iiiiiiiicrciiil l>aiik v, Wcller 174 
 
 (■itmit'lly V. Wciiiliifli 'IXt 
 
 Cdolcy V. lloiniiiiiiii Hiiililiii^' Society. !H» 
 Ciir|)(iriili()ii (if IJcllevillu V. Kiilicy . . !t'i 
 <.'()i'|i<ii'iiti(iii lit I ii'iiiitliiiiii V. ('(intiire. !H) 
 C(>i'|i(ii'iiti(iii (if I'citli V. McfJri'L;"!'. . 'X\ 
 
 C'lirsi' V. ( 'orst! 'J.'?") 
 
 Ciisynivi' V I5(iylc 131, I7">, 177 
 
 ( 'dwaii V. 'riiri.'c(iii 1S7 
 
 C'rcij,litiPii V. Kift/. 'i."iK 
 
 Ci'oiiiliit' V. Ovorlioltzer t!(( 
 
 ('roKn V. ( 'iirrie I'JtJ 
 
 ('rouse V. I'm k .'.(i, '.'Ol 
 
 Ctilli'ii V. Niikorsdii il.'i 
 
 ('uiianl V. Td/.er UCi'J 
 
 (.'iiiiiiinj,'hain v. I.yster II!) 
 
 CiirriiT V. < »l tawa (Jan (Jo 107 
 
 ('uvillur V. l''r!i.sor "JO,") 
 
 Daltoii V. Lako Ill 
 
 Davis V. Dimii Ki"! 
 
 Davis V. .MfjSheny Ill 
 
 Duviiiiiicy V. I'.iriwnlec 21 'J 
 
 Dickenson \. Clemow Ill 
 
 Dorais v. Cliaiifdux ■2."i4 
 
 Dorwin v. 'riioiiip.sou 'JI7 
 
 Dou-,'all V. I'ost I'JO 
 
 Dougall V. Hcalisih I.'{7 
 
 Dougan v. Small I4'2 
 
 Dowling V. Kastwood I'M! 
 
 DowHs V. Mi^Nainara .'{(i 
 
 Driggs V. Waiti! Itil 
 
 Dwiglit V. Kllswortli I -24 
 
 Kastwood V, Westloy I!I7 
 
 Elder V. Kelly V.\S 
 
 Elliott V. Hee'uh 'IWA 
 
 Eva;i8 V. Morley Ill, I '_'") 
 
 Ewing V. Cameron 'l',r, 
 
 Fairman v. Mayhee "Jl I 
 
 Farrell v. Osliawa Manufacturing Co. !M) 
 
 Federal IJank v. Northwood Htl 
 
 Fisken v. Mcehaii 1.S7, 'J 10 
 
 Fitch V. Kelly lUl, 218 
 
 Fletcher v. Noble ;)2 
 
 Forward v. 'I'honitjson 34, HiU 
 
 Foster v. Howes 202 
 
 Foster v. (Jeddea 10() 
 
 Fox V. Sopor 1 37 
 
 Fraser v. Armstrong 20(i 
 
 rage. 
 
 (Jates V. Crook 114 
 
 (ieiides V. itogers 14') 
 
 (Jilili V. Monsette 'IM 
 
 |(Jilliertv. MiAmiany IM) 
 
 I ( iilles|iie V. ( 'amerdU 145 
 
 ! ( iill<'s|ii(.' V. Mar.-ili 175 
 
 I (iirvin V. Hinke I.'IO 
 
 (iladstoii.- V. Oew 2IS 
 
 I < Massford V. Mc!''aul 115 
 
 (Jdiiig V. ISarwU'k 3(i 
 
 Cddilei'liaiii V. liutchi-sdn 114, 12!( 
 
 (idre I'.alik v. (,'raig l(iS) 
 
 (idi-e Uank v. Ci ks lO.'l, lOS 
 
 (idle Itaiik V. Katdii 255 
 
 ( Irant, v. Wiii.siaidey 142, 100 
 
 ( iray v. \\ oi'dcii 'M 
 
 < ireatdii'X v. Score 55 
 
 ( ii'i'eiiwddd V. I'eiry 115, 120 
 
 (Jrdliii V. Jiidsdii 55, 201, 2:17 
 
 (inlliiiv. Latimer 107 
 
 (irilliii V. riiillips 1M7 
 
 (iiiiin V. Macphci'Hon 120 
 
 Hamilton V. Ilolcoiul) 120 
 
 llainiildii V. I'liipps 145 
 
 llaiMiii(in>i V. Small 80, 1 13 
 
 llaiiscdiii,' V. Cdltdii 128, 107 
 
 I Hard V. Talmer 145 
 
 Harper v. Cullicrt 2(»9 
 
 Har|ier v. I'atcisdii 33, 74 
 
 Harris \. I'crry 101 
 
 Harris v. Sidiwoh l,"»iJ 
 
 Hay V. r.iiike 177 
 
 Hayes v. |)avis 74 
 
 Heiithlield V. VaiiAllan lOl 
 
 Hemy V. Little 124 
 
 Hill V. I'"iaiieis 74 
 
 Hdgg V. Marsh .58 
 
 lldlciiiiili V. lliimilton 120 
 
 lldpe V. Caldwell 2.32 
 
 llddker V. Leslie 234 
 
 lliiulistdii V. Tarsdiis 00 
 
 Howard V. ( iodard .30 
 
 How land V. deniiiiigs 5(), 201 
 
 lliird V. I'almer 201 
 
 Hunt V. Lei' 142 
 
 lanson v. I'axton 138, 210 
 
 Irvine V. Canadian Hank of Coiii- 
 
 liierce 180 
 
 Irwin V. Freeman 215 
 
 .lack V. .lack 110 
 
 .lames. A'. 87, 02 
 
 .ienkiiis v. McKenziu 144, 205 
 
 Jones V. Ashcioft 94 
 
 Jones V. Wilson 169 
 
▼i. 
 
 TAIII.K OF CASKS. 
 
 •loHi.'|ili V. DnliHlu 187 
 
 Judmiii V. < iritlin '2'A4 
 
 Kwiiiay V. Kin<li <K) 
 
 K«nii(ily V. Ailiiins 7."» 
 
 K«'iT v.'llci-.ifonl 21*2 
 
 Kerr v. I'jiixoim (i7, 1U« 
 
 K«Tr V. Stiiiat 142 
 
 Kcdcliiim V I'owt'll 207 
 
 Killc.MK V. Hyiitt Ill 
 
 Kingston Miiriiio R. Co. v. (iuiin .. !H) ' 
 
 Kniiiip V. liaiik of Moiitreitl {i',\ 
 
 Iauiw v. (Marku 
 
 liarkiii v. Wiiinl 
 
 Ijii Hot'(|ii(' V. .Andrt's 
 
 f^vriic V. Kvaiiturcl 
 
 Ijiitliaiii V. Norton 
 
 Liitoiir V. (iiiiitliiur 
 
 fiawMoii V. I.!in<iliiw 
 
 Lawton V, Milliilgo 
 
 L<;c V. liank of ItritiHli Noitli Anicrii'a 
 
 Ltith V. Ntill 
 
 I.cHJif V. l<)ninions 
 
 Lock V. Ill-id 
 
 LovfU V. <iil),soii 
 
 IjOW v. Owfu 
 
 Lyman V. l)ion 121, 
 
 Madden V. (Jox 
 
 Mair v. .lones 
 
 Muir V. McLtan 
 
 Mander v. Itoyal Canadian l'>ank.. . 
 
 Martin v. ( 'orporation of Hull 
 
 M.ittlicwson V. iJrousi' 
 
 Matthew «on v. Carman Ill 
 
 Maultson V. Arrol 
 
 Maynard Kenaud 
 
 Melli.sh V. (Ireen 
 
 Mer.haiits" Hank v. Hell 
 
 Mereliant.s" I'.ank v. McNutt 
 
 Mert'liiintH' Hank v 
 
 218 
 ltd 
 
 m 
 
 2(»!t 
 MMI 
 
 88 
 218 
 
 r.2 
 
 181 
 217 
 111 
 108 
 171 
 207 
 
 Stirliiij,'. -I.'- 
 
 nit. 
 
 7!», 
 
 Meredith v. Culver 
 
 Merritt v. Lynch 
 
 Merwin v. (Jates 
 
 Meyer v. llutehinHon 
 
 Meyers v. W'ilkin.s 
 
 Mii'neanlt v. Main 
 
 Miller V. handelin 
 
 Miller V. 'riionijiHon 
 
 Mitchell V. Knglish 
 
 Moffutt \'. Heex 
 
 MolHons Hank v. St^yniour (5!) 
 
 Montgomery v. IJouehcr 
 
 Moodio V. Uowiitt 
 
 Morton V. Block's Cases 
 
 <i8 
 
 i:{7 
 
 128 
 .■)2 
 !I0 
 211 
 187 
 128 
 20!) 
 212 
 17^ 
 177 
 
 187 
 217 
 I 'Ml 
 111 
 2;{4 
 254 
 2:i") 
 '2m 
 111 
 210 
 120 
 , 83 
 201 
 48 
 52 
 
 I'age. 
 
 Mounteashel (Karl of) v. fJrover .... 273 
 
 .Munro V. Cox 48, 140 
 
 .Murray v. Miller 23ri 
 
 Mutual Safety Insurance C'o. v. Porter 
 
 ;14, 48, 78 
 
 Mac.iulay v. MeKariane Iti<i 
 
 .MardunaM v. Wliitlield 210, 2;r. 
 
 Maifiirlane v. D.wey 12:i 
 
 Macli'llan V. Davidson I.'t2 
 
 .McCarthy v. 1 'helps KtS 
 
 McCarthy V. \'ine OH 
 
 M.Cny v'. IHneen 2r.4 
 
 .McCunlillc V. .Ml.ii 182 
 
 .McDonald V. Mc.Xrtliur 100 
 
 .\Icl»,,ncll V. Ilolgatc 2r)4 
 
 M.l> iincll V. Lowry 108 
 
 .Ml Don-all, /{< 201 
 
 .Mcdillivray v. Kecfer Ill, 20!» 
 
 McC.v^i.i- V. HiHhoj. 207 
 
 .McCr-gor V. Daly 40 
 
 Mcliiiii M V. Milton 71, 78 
 
 .Mcintosh V. MiLeod 113 
 
 .Mclvcr V. .Mcl'arlane 108 
 
 McKay v. Fee 50 
 
 .McKcn/i" V. Northrop 175 
 
 McKi ),i V. Caniplicll ... 201 
 
 .Mel. can V. (Jarnicr 93 
 
 .Mclean v. Shields 39, 42, 74 
 
 .Mcl.illan V. .McLcllan 107 
 
 Mcl.ciin;in w .McLennan 43 
 
 McLcod V. Carman \W, 99, 213 
 
 .McMiirray v. Talhot 94 
 
 MiMiirrich v. Powers 177, 182 
 
 .McXal. V. Wagstair 208 
 
 .MrPhir.si.n V. .McMillan 42 
 
 Mc(,»iirin V. .Mi(,»ucen 54 
 
 .Mclloliliic V. 'I'mrance 37, 10(5 
 
 Na..<.s,ni V. O'Keilly 17(» 
 
 New horn v. Lawrence 30 
 
 .Nil. lock V. Mc(irej.'or 209 
 
 North -American Life Ins. Co. Case. 89 
 
 Ockermanv. Hlacklock 39 
 
 Ontario Itank v. Oihson 93 
 
 d'Hrien v. Picht 80 
 
 Pacaud v. Corporation of Halifax 
 
 South 90 
 
 Palmer v. Haker 182 
 
 Palmer v. Kahncstock 30 
 
 Parker V. McCrea 211 
 
 Paterson v. Howison 206 
 
 l*attt;rson v. 'I'apley 151, 174 
 
 Patton V. Melville 49 
 
 Peck V. Phippen 209 
 
TAItl.i: OF CASES. 
 
 VII. 
 
 Pod V. Kiiigsmill 214! 
 
 I'eelf V. I'dtiiiison 67 
 
 Ptitigiift V. McKonzio 17'» 
 
 Porlt'y V. Ilitward . . . I41> 
 
 Parley v. I.oticy 21 1 
 
 Pi-Ts V. Iliill <H 
 
 P(iilt<pn V. pdlningo IKi 
 
 Pratt V. hriik.- U»l 
 
 KVfitt V. McIh.iiK'all 2(K), 241 
 
 (/luU-c IJdiik V. Milh-r 70, 97 
 
 Rpvt\ V. M.. ,cr lt5H. \H\ 
 
 Rf.'.i V. ii.f.i :»:i, 4s 
 
 iN'gina v. Miuiloiiiild W 
 
 ltii<l V. Iliimiitiiey 2I.S 
 
 lU'iil V. Mel 'lit Hiioy lo.'i 
 
 RciiHic V. ,lar\ is' 14'J 
 
 liicliitrilsoii V. hiiiiiel.s Itil 
 
 Kirlicr V. N'liycr 24, .">2 
 
 Ri^riu-y V. V.in Z;iinit 212 
 
 Rolx rtsc.n V. ( 'iildwcll 2:!2 
 
 IJoliiTts.iii V. <:1mss 104, I'M) 
 
 R<»l»«!its(>ii V. IliU'l).ick i;?7 
 
 Roliiiisoii V. Hogle '.!."> 
 
 lioss V. ('..(Ill 10(1 
 
 Ross V. Dixie 1.">1, 1!»7 
 
 Ross V. 'rvsoii 117. I4."i 
 
 R()8s V. Wiiiiiiis 211 
 
 RoHsiii V. McCiiity 7.S 
 
 Rouleau V. 'r<iiiiaiigeiiu I."!l 
 
 Riissi'll V. Croftoii 2i;i) 
 
 ]{iis8ell V. Wells :!: 
 
 Ryiiii V. liaiik of Moiitnial I'.tl 
 
 Ryan v. McCoiimll 117 
 
 Ryan v. MeKeiral 94, 21 1 
 
 Samson v. Yager 217 
 
 Saiiford V. Koss 71, 7lS 
 
 Saxtf)n V. Stevc'iisnn .'57 
 
 Sliannim v. Hastings Mutual Ins. 
 
 Co 177 
 
 Shaw V. IJooiner 142 
 
 Shaw V. Salmon IS'2 
 
 Shcpley V. llur.l 14.^ 211 
 
 Sherwooil \. Hank of Uritish Noith 
 
 AuHrica 212 
 
 Shtiter V. Dee 14") 
 
 Sifton V. Anderson 121 
 
 Sifton V. Me< 'ahe Ki-J 
 
 Sinclair v. l!ol)s<>n 108, ISO 
 
 Skilhofk V. Porter OS 
 
 Sm.ill V. Uiddel 20.') 
 
 Smith V. Fralick 120 
 
 Smith V. Hall 1S7 
 
 Smith V. Harper 20,5 
 
 Smith V. .Judson 205 
 
 Smith V. Rieliardsoii lift 
 
 I Smith V. Smith 108 
 
 ' Societi' de ('onstrnctijin dn f'anada 
 
 V. Maniine Xalionale !H( 
 
 Spi'nee V. Ilei'tor 201 
 
 Steer V. Ailams 47. !•■'< 
 
 Steinliotl' V. MenhantM Hank 180 
 
 Stevens V. Kerry 201 
 
 Stewart V. I'lC'Winan 2H.'> 
 
 Story V. Me Kay 234 
 
 Strathy v. Nieliols 120 
 
 I Street V. W.ilsh "i9 
 
 j St. Steplien's llraneli K. Co. v. Bla.;k. 'M 
 
 Swasiiand v. Davidson I.'IO, 217 
 
 jTarratt v. Wilniot LSI 
 
 Taylor V. ( irier 17S 
 
 'I'lionias V. (iiaee 2."»7 
 
 'riioiii|isiin V. Mi'Donald 211 
 
 'riiiinipsiiii V. Slomi 4.'t 
 
 'rimigar \ . ( 'l.irke 70 
 
 'I'lipi-ing V. Miitfalo, *e, , 1{. Co. . . S!» 
 
 'I'orranee \. I'lank of Mritisli .North 
 
 America 09. 83 
 
 'I'ownsliip of 'rmontci V. Meliride .">! 
 
 'rriiMian \ . 1 >ixnii S(!. 20'» 
 
 L'niacke v. Dicksun '2X'> 
 
 I'liiun liink v. l-'anisworth 90 
 
 , I'n'iin liuik \'. McKilliu'in 170 
 
 ' riiioii r,ank v. Ontario I'.ank 102 
 
 \';'ideiiyan v. VandiistMi !*.'{ 
 
 X'.iiiclian V. Ross 177 
 
 N'einier V. Futvoyt! 1S7 
 
 X'i.l.d V. Ford CO 
 
 \'oyer V. iCielier 24, .'>2 
 
 Waddell V. .lavnes 1.30 
 
 Walker V. Olteilly l.S,") 
 
 Walters v. Heitrelistein ITil 
 
 W.iterous V. Mel.e.m 217, 2.")7 
 
 \V<st V. I'.own .VJ, 200 
 
 : West V. M.iclnnes !42 
 
 Wlnte V. liaker 2<H 
 
 Wiiitman v. Parker Ml 
 
 Widtney V. Wall '201 
 
 Wilcoeks V. 'rinning 47, 9.3 
 
 Wiley V. Leilyaiil 117 
 
 I Willi.inis V. Noxoii ."io 
 
 Wilson V. Aitkin 7.">, 202 
 
 Wilson V. I'.rown 191 
 
 Wilson V. ( iatcs '2ru 
 
 I Wils.m V. Pringle 173, 170 
 
 Wi.imor v. Wismer 84, SO, 113 
 
 I Wood V. lirett 211 
 
 I Wood y. Ross 12.'», 142 
 
VIM. 
 
 TAHI.E OF CA.S^S. 
 
 PftgO. 
 
 Wooilni.lc V. Torontfi Stntd K. Co. . I.T2 
 
 Wonlswiuth V. Mt'lloii^iill \'M 
 
 W'nuht V. Cook 2<Mi 
 
 Youn^' V. Klukc 50 
 
 Kiii/lixh Cnxf*. 
 
 Aluvy V, Crux 29. H« 
 
 AliHiiliiii V, Miirkx l.'K'i 
 
 i\'j,<is V. Nii'liolson I(t7 
 
 Agra lUnk, AV 15'i 
 
 Ainswiirili v. Walnislcy 94 
 
 Airev v. Kaiiisidt'H 3(i 
 
 Alcock V. Alcock 87 
 
 Aldi'i-Hoii V. Liii|;iliilL> "JK! 
 
 Alilous V. ( Kriiw.ill 'JIH 
 
 Alcxuii.l.T V. liiiclilioM 'i40 
 
 Ali:x!iinh r V. Mi-Kcii/ic lO.S 
 
 Ali'xaiiilir V. 'riioiims ;W 
 
 Allan V. Miiwsdii 4(1 
 
 Alloii V. Kiliiniii(ls(iii ISI 
 
 Alluii V. Keml.l.! '2-Mi 
 
 Allen V. StM \>'ivv antl Life Ins. Co. 107 
 
 Aninur v. ( 'liirki' 4'\ 
 
 Ancona v. Marks 14.*) 
 
 AniU'I'Soii V. Weston (iO 
 
 Anilert.ou v. Heck Mi.") 
 
 Anon 3(5, SS, t>:<7 
 
 Anson V. Thoinas 57 
 
 ISS 
 
 Arilifi- V. ISank of KnL'lfind 
 
 Aniiild V. ( 'liccnK- Bank 14(> 
 
 Hrvan 
 
 50 
 
 lliiwdon '217 
 
 144 
 
 Aslipital V 
 Atkinson v. 
 Attcnliorou^'li V. McKi-n/io 
 
 Attorncy-lifncral v. Lichtiold -07 
 
 Attwood V. ( iritliin 'ilS 
 
 Attwood V. Mnnnings lO'i 
 
 Awdf V. Dixon 79 
 
 Tiaincs, /i*< 
 
 FiainuB v. Wright 
 
 Haker v. JuMiur 
 
 liakcr V. I >i'ning 
 
 Baldwin v. Kiohard.son 
 
 lialfonr v. I'lrncst 
 
 Balliiigalls v. (iloster 
 
 Hank of Australia v. Breillat 
 
 liank of Irtdand v. Rercsford 
 
 Bank of Ireland v. Kvans Charities.. 
 Bank of Van Dicmans Land v. Bank 
 
 of \ ietoria 150, 
 
 Banner v. Johnston 
 
 Barclay v. Bailey 
 
 •207 
 71 
 
 ;?5 
 isi 
 
 91 
 154 
 
 •27 
 1'20 
 100 
 
 258 
 
 39 
 
 158 
 
 Page. 
 
 Burlow V. Brofti'hunit 3'< 
 
 harnur.l, AV 47, <W 
 
 Biirriiigton, /?<• 133 
 
 liarrow v. \Viidkin 262 
 
 Biirtrnm v. Cnd-ly 2()H 
 
 Batcnian v. .loHcph IKl 
 
 Batenian v. Mid Wales R. Co 89 
 
 Baxehdalc v. Bennett 77 
 
 Beanlslcy v. Baldwin 34, 58 
 
 Beavcn v. McDonnell S7 
 
 Bechervaisf v. Lewis 1 19 
 
 B.>ck V. Kol.l.y '2(« 
 
 Beeimn v. Dn.k lOO, 191 
 
 Begliic V. Levy 6(* 
 
 Bidfast Banking Co. v. Dnherty 91 
 
 Bullaniy V. .Marjorihanks . ..242,245. 
 
 240. 249 
 
 Bcnnell v. .iarnell .50 
 
 Bentimk v. Dorrien 81 
 
 B»!rridg(! v. Kit/.gerald 109 
 
 Bethel 1. AV 59. 72, 79 
 
 B(!veridge \ . Biirgis 181 
 
 Beverley's Case 87 
 
 liill V. Lord Inge.stre 1.38 
 
 Billing V. I (evanx 2(t 
 
 Binhlield V. Moore 218 
 
 Bislici|) V. Chand)er.s 217 
 
 Bishop V. Chitty 191 
 
 Bishcip V. Ile\'ward 144 
 
 Bl:Mi(kenhage» V. Blundell 4S 
 
 lilvtli V. Birniinghani 204 
 
 i!(ll.l)ett V. I'inkett 245 
 
 Bod.hm. v. Kiley 201 
 
 Boelini v. ( 'anipltell 43 
 
 Boehm y. (iraeias 1,55 
 
 Bonir V. Mitchell 42 
 
 Bor.iston's Case 57 
 
 Bottoinley v. Nuttall 158 
 
 I'.oulthce V. Stuhhs 183 
 
 Boworl)ank v. Monterio 74 
 
 Boyd V. I'hnersou 241 
 
 BoVs. AV 117 
 
 Boyso, lie 37, 70, 167 
 
 Mra.Uungh v. Dellin 233 
 
 Bradley v. Baylis 246 
 
 liianiah v. Roljerts 91 
 
 Br.indao '•. Barnett 10 
 
 Brill V. Cock 261 
 
 Biistow V. Secpieville 230 
 
 Hroniage v. Lloyd 81, 8.% 183 
 
 Broinage v. Vaiighaii 174 
 
 Brookes V. Klkins 253 
 
 Brooks V. Mitchell 259 
 
 Brongh v. Perkins 63 
 
 Brough V. Parkings 186 
 
 Bronghton v. Manchester W.iter- 
 works 90 
 
TAIII.K "'K CASKS. 
 
 \X. 
 
 Hriiwii V. ItyiTH 
 
 Urowii V. I>iivin . . . . 
 Urowii \ . I><'\\'int<)n , 
 llriiwii \. Iliu-Hil<'ii . . . 
 
 llt'OWII V. .IllllllMIIII . . , 
 
 Ki'owiiin;,' V. K iiiiu'iir. 
 
 It ult V. I'iikiinl 
 
 Hlli'kliy, h'r /Kirh . . . 
 Miicklfv V. ilacksiiii 
 niirliiil^'c V. M.iiiiici'H. 
 
 liiitliT V. ('ri|H 
 
 Unit V. Wdiirll 
 
 I5yi<m V. 'riioiiipHoii . 
 
 !tl 
 
 IIM 
 
 ....2r)'i, 25 1. •-•:..-) 
 
 (i'J 
 
 (•;» 
 
 1HI 
 
 21N 
 
 140 
 
 14) 
 
 4( 
 
 ni 
 
 •JIH 
 
 .»:>, 
 
 71 
 
 i:(t> 
 
 < "allow V. LiwrcrniH' Ml. •.'0!» 
 
 < '.iniiili.'"' V- Allciiltv 'i.'il 
 
 (•ain|.lMll V, W.l.rttiT IMS 
 
 ( 'miiiaiii V. l'"annrr KS 
 
 Carcwv. ihii'kwdrtli \H'A 
 
 Ciirliiii V. Ki'ii "'dv r».') 
 
 Curios V. 1 .111. . ,iit 3», .W, 75, '2C,-2 
 
 CaitiT V. Wiiito 
 
 <'..i 'ik V. Vifki-ry 
 
 r.iHlIc V. Kiinl.'tt." (U 
 
 ('asti'i(|Ut! V. Iicriialio K'tS 
 
 ('astri.|iH' V. I',iitti^,'i(!),' (iO, l!»7. '2.1-' 
 
 ("atiiii V. Catoii .'{."i 
 
 ("atfcr.il V. Cattcriil, or Swei'tiimii . . '2'M\ 
 
 Cauiit V. 'riioiMpsoii Hi'.', IS.'J 
 
 Clianil.iis V. Miliir 'J4I 
 
 Chaiii|iiuii V. I'liiiiiint'i' ti5."» 
 
 Cha|.irian v. Hall 'iH.'. 
 
 CliarUnii V. Liiij,'s 'Jd, ss 
 
 ('liarniaii, /v'x /laiVc '_'(!! 
 
 (Minrtcrcil Hank v. Dickscni \{'.\ 
 
 ("liarttreil Mcrcantili; liaiik v. Ditk- 
 
 Kon 'J.'iS 
 
 Chcalc V. Keiiwiird HI 
 
 Clif<k V. Moper 151 
 
 < lifi'thani V. Miitler r,7 
 
 Childuis V. Hoiilnois 25.S 
 
 ("hurcli V. Imperial (Jas Light('(i. .. . S!» 
 
 Clark V. I'ij.'i)t ]'M) 
 
 Clarke, h'.f /mrte. 45 
 
 Clarke V. Coek 2() 
 
 Clerk V. Hlaekstock 257 
 
 Clinch V. Smith (i4 
 
 Clixle V. Hayley 175 
 
 Cliil)l. V. Hii.lsoii \'2:i 
 
 (Mydesilale Hank v. McLean 24:{ 
 
 Colehaii v. Citoke .37, 57 
 
 Collins V. .Martin 1 17 
 
 Colli.s V. Kmmett .37 
 
 Commercial Bank of South Australia, 
 
 Re 202 
 
 Cook V. Lester •J04 
 
 Cook V. Long 110 
 
 b 
 
 ( 'onke V. Iliirn 55 
 
 Ciioper V. i'.arl WaMegrave '2',\'2 
 
 Co.p.r V, M.y.r IIM, VXt 
 
 ( 'my V. I >aviH 'M\ 
 
 {'i,U\ h\r imrti H2 
 
 Court.iiiM V. Sanderi* 107 
 
 • 'owarclv. MuvjIieM 112 
 
 r,,«i.. V. lla-wiU 21H 
 
 Cnwiev Stirlinj{ 40 
 
 C..X V. TiDy 2« 
 
 ( 'ra?iilini;t(in v. Ilvaim 40 
 
 Cranl.y v. Ililliry I!tO 
 
 ('re.ir!< V. Hunter lift 
 
 < 'milk V, .lailJH 2(15 
 
 CroiHe V. Smith 1M| 
 
 Crns-Iey V. Mam 170 
 
 ('nnnnii.'li Mil \ ' '., ^ /,V 89 
 
 < 'nrrie v. Mis:. 114 
 
 f'litisv. PiihanlH 2":i 
 
 ''nthn-^h v. Ciitlmsh 108 
 
 D.iiley V. h.Kri.s _. . I2;< 
 
 I) iiliiiliire V. I'arkcr I7<i, 177 
 
 !).irliii}<tiiii and Stoektuii Itankiii^'Co. 
 
 A'r imiti '.tlJ 
 
 I >:ivii'M V. Wilkinson 54 
 
 I>avis V. .lones . . 40 
 
 Dawki s V. I'.arl lUdoraine .'10 
 
 hawsoM V. Kcartiin Ill 
 
 Dran V. (u-.'.n 271 
 
 I i.l'.erdt V. Atkinson .. IS.'J 
 
 Meernix V. Meyer 74. 155 
 
 h.fanr v. Ox.hden <>S 
 
 he la < lianniette v. liiink of Knjdand 4."{ 
 
 hciinis V. Morrici! IH.'t 
 
 Itennys Kstate. /!>' 2(i2 
 
 JlentDIl V. I'eters l.'U 
 
 niekiiiscin V. \'alpy W 
 
 Dixun V. Nntt.iil " 57 
 
 l>(illlee V. Kastwnod ITS 
 
 Itoe Watson V. .lell'erson I5H 
 
 l)o\vn(!.s V, liiehurilson Ill* 
 
 Drayton v. Hale lIWi, 'iC'* 
 
 l)nl!i>uli y V. DnMoiiley 04 
 
 Dninan v. North & South Wales 
 
 I'.auk \'Xi, \m, I!t7, •-•09 
 
 l>niilop V. Hij,'L'in.s 177 
 
 Diiteli V. () Leary 78 
 
 h'.ddisiin V. ( 'ullingriilge 3I> 
 
 Ildie V. I'last India Company 5.3, 140 
 
 Klis V. Murv 47, 2.53 
 
 Kdmun.ls V.' Hushell «t5 
 
 K.I wards, h'r /.'irli 101 
 
 Klfonl V. -I'ee.l UiO 
 
 I'"llis V. Thonipson 79 
 
 Klaam v. Denny 208 
 
TAIJI.K OF CASKS. 
 
 Page. I P.v^'o. 
 
 Englisli V. Darley 207 ' rJrant v. Vaiighan 50, 53 
 
 Entick V. ('aiinington '2(>0 ' Oray v. Johnston 'J43 
 
 Esdailc V. i:a Nauze 99, 100, 1(W (iriy v. Milncr 47 
 
 Essett V. 'I'ottenham 145 
 
 Evans v. Kvmer 84 
 
 Ewart V. Latta 20S 
 
 Fair<;lou<.'h v. I'avia 139 
 
 Faith V. Kiohniond 70 
 
 P'allon, Kx /irir/r 15,S 
 
 Fanconrt v. Thoine '25;" 
 
 Faiishawc! v. I'l'ot 7<i 
 
 F.-'r(|uliar v. Southi-y 2IS 
 
 Faylu V. liinl 75, 10;{, )<»1 
 
 Feakley v. h'ox 
 
 Fcarn v. Kilicia 
 
 Fiirris v. lioMii 70, 
 
 FishtM' V. ( 'alvLTt 
 
 Fisli'T \-. Leslie 
 
 Kit( li V. .loiics 
 
 Fliu'ht V. Maclean 
 
 Flower V. Sadler 
 
 Foley V. Hill 
 
 Forlies V. Marshall 
 
 Fordyce V. Hridyes 
 
 Forster V. M.ieUreth 00 
 
 Foster V. Dawher 127, 21S 
 
 Foster V. .lolly SO 
 
 Foster V. M.'ickiiinon . 
 
 Frith V. 'I'hriish 174, 170 i 
 
 Fry V. Hill 149! 
 
 Funiival v. Coond.s 109 1 
 
 2().") ! 
 104 
 2.-.7 , 
 :!9 1 
 
 25.S 
 
 21 S 
 
 44 
 
 124 
 
 240 
 
 4(i 
 
 S5 
 
 Fur 
 
 Sharwood 94 | 
 
 i 
 
 ... 95 : 
 
 ( I reaves v. Asldin 79 
 
 (iretMiing, h'x far/f i;<3 
 
 (iriffiii v. Weatherhy ...S9, 1M2, 100, 191 
 
 (Jnriiey v. Womersley "Jd.'l 
 
 (iiiy v. Harris 253 
 
 Hall V. Fuller I(t2 
 
 H.iniilton v. S]iottis\voode .'{3 
 
 Han'.mry v. l.ovett "JIS 
 
 Hansard v. Itohinson 191 
 
 Hardy v. W.iodratle 1«0 
 
 Haiiiier v. Steele 213 
 
 H.w|(tnan v. Child 174 
 
 Harrison v. Clifton 00 
 
 Harrison v. Forth 125 
 
 H.irrison v. Ruscoe 173 
 
 Harrop v. Fisher S3, 133 
 
 Hartley v. Wilkinson 5S 
 
 Harvev v. M irtin 151, l.'>3 
 
 llat<h V. S.arles 71, 123 
 
 Haussonllier v. Hartsinck 37 
 
 Hawkes v. Sanndci's 114 
 
 H.iyward, Kv jxtrtc 29, 71, "H 
 
 Hu'hlmrd V. .laekson 20.S, 209 
 
 He.ilev V. .Storev OS 
 
 71, 79 i Heatliorn v. Darling 123 
 
 HeKd.n V. H.utsink 15S 
 
 Ht^dley V. U.iinhridge 90 
 
 Heilhnt V. .N'evill 130 
 
 Hend<'rsiin v. Australian Steam Xavi- 
 
 gatiou Co S9 
 
 Hennian v. Dickinson 217 
 
 100 
 
 Hewett V. K.iyo 243 
 
 Hewett V, l,oose:>iore 123 
 
 Hewitt V. 'rhonii>s(.n ISO 
 
 Heylyii v. Adamson 47 
 
 Htvw I V . I'iekering 103 
 
 Hill V. Ilalford .37. 58 
 
 Hill V. Royils KiO, 192, 243 
 
 Hindhaugh v. Tdakev (!9 
 
 Hine V. Alley '. I(i2 
 
 Hirsehlield v. Smith 187, 218 
 
 Hirschinan v. I'ltnlil 217 
 
 Hogarth v. Latham 72, 77, 97 
 
 (Jalway, (Lord) v. Matthews 
 
 (x.innnon v. SchmoU 155. 191 i 'lenrv v, Lee 
 
 Cardiner v. Walsh 218, 2.")(i 
 
 Oarrard v. Lewis .50. 72 
 
 Geary v. Phy.sie 33, 1.35 
 
 General Instates ( 'o., AV l40 
 
 General South .American Co., A'» . . 2(*2 
 
 George v . .Suri'ev 35 
 
 Geralopnlo v. Wieler 223 
 
 (lil)son V. Hunter 40 
 
 (iili.sou v. Minet 45, .">(> 
 
 Gill)ert v. (iuignon 110 
 
 (Jiles v. Bourne 40 
 
 (!ill V. Cnl.itt 12.3, 205 
 
 Gillespie. Re 202 I Hoj;arth v. Wherley 100 
 
 (Joodman v. ITu-vey 83, 123, 170 i Hollirow v. Wdkin's 1S2 
 
 <}ood\\ in V. Uoharts (5, 9 
 
 (Joldsmith V. I'.land 173 
 
 ( lomitert/ v. IJartlett 203 
 
 (Sore v. (lilison 88 
 
 (xosH V. Nelson .58 
 
 Gosling V. \'eley 270 
 
 Holdsworth V. Hunter 227 
 
 Hogan V. Healy 113 
 
 Hoyii V. Skeeii 90 
 
 Holliday V. Atkinson 110 
 
 Holmes V. .Ineipit^s 49 
 
 Hooper V. Williams 44, 254 
 
 Goupy V. Harden 100 1 Hopely v. Dufreane 108 
 
TAIU.K OF CASKS. 
 
 XI. 
 
 P.11,'C. 
 
 ..50, .'■a 
 
 ... -.'43 
 
 .. 47 
 
 . . 7» 
 
 ... i:« 
 
 lt)0, HU 
 
 . . . 'Mli 
 
 . . . 2.-);i 
 
 . .. If)2 
 
 . . . .-{3 
 
 . .. '.'IS 
 
 ... 1!>1 
 
 .. Kili 
 
 ... '2\:i 
 
 ... 174 
 
 . . . (iO 
 
 . . 125 
 
 . .. I7;{ 
 
 S.S, ]X\ 
 
 ... 37 
 
 . .. 114 
 
 ». 71, 7S 
 
 2(KS, "JOD 
 
 . . . (is 
 
 . . 1 •_>••{ 
 
 .. l.V< 
 
 . . (t(> 
 
 .. i;<(i 
 
 vi- 
 
 .. SO 
 .. '217 
 . . 160 
 .. 243 
 . 1-2.3 
 .. ISO 
 .. 47 
 . . I(i3 
 .37. 58 
 243 
 
 1()2 
 21 S 
 217 
 ■, !»7 
 lOH 
 1S2 
 227 
 113 
 
 !t« 
 110 
 
 4!» 
 2.-.4 
 KIH 
 
 Page. I 
 
 Hopkiii.s V. Ware IWi ' 
 
 TIopkiiLsdii V. b'orster I!t2 : 
 
 Howe V. l'..me,s :!t2 j 
 
 Honie V. Hetifcaiii 3ti 
 
 Iforiie V. R<iii(|iietti' 233 
 
 Hunter v. .lellrey 45 
 
 Iii<;hiiii\ V. I'riiiiro.sc; 215 
 
 IntiMi.itioiiiil I'lilp Co 42 j 
 
 Iri'liiml V. (Jue.ss !•<> j 
 
 Israel v. l.-^ruel 2.53 | 
 
 .Taek^soIl V. Hiidsdii 
 
 Jacobs V. Mart 
 
 .laiison V. 'i'liomas 
 
 •leiiney v. Merle 
 
 fjoiit s V. < i onion 113, 1:V!, 
 
 .Tones V. .lai-k.-^on 
 
 Jones V. ."^initli 
 
 Josselyn v. Lacier . 
 
 Julian V. Sdiollirooke 
 
 •lury V. I'lurker 
 
 Kearney v. West (Jranada, &c., Co.. 
 
 Keene v. lieanl !I4, 
 
 Kershaw v. Cox 
 
 Kilkennv. \c., It. Co. v. Kielden .. 
 
 King V. 
 King V. 
 King V. 
 Kirk V. 
 Knell V, 
 
 Uurrell . . , . 
 
 Iloare 
 
 Zininiernian 
 
 lilurton . . . . 
 
 Williams . . 
 
 Knight V. ClenienCd 
 
 T^acon v. Hooper 
 
 T.,anitiert, Ex jnirte 
 
 l>anipert"s ( 'ase 
 
 Law V. I'arnell 2!>, 
 
 Laws V. Rand 
 
 Leach v. lliichanan 
 
 Leach v. Hewitt 
 
 Le.ad hitter v. Karrow 1(12. 
 
 Leaf V. (iibl)S 9.3, 13i), 
 
 I,ot»el V. Tucker 4.3, !>2, 
 
 Lee V. Xewsoin 
 
 Leeds Bank v. Walker ....21(., 217, 
 
 Leeds Hanking Ct)., lie 
 
 Leftley v. Mills 1(10, 
 
 Legge \ . Thorpe 
 
 Leonard v. Wilson 
 
 Lester v. ( larland 
 
 Leverson v. I^ane 
 
 Levy V. Pyne 
 
 Lewis V. McKee 
 
 Lickharrow v. ^Lison 11, 23, 
 
 Lindo V. Unsworth 
 
 Liudus V. liradwell 70, 
 
 04 i 
 2IS ' 
 
 57 ' 
 
 40 
 2(;»> 
 107 i 
 125 
 
 30 I 
 
 75 
 
 3(t ; 
 
 227 
 102 ^ 
 21 s 
 42 
 lt)5 
 2.5t( '■ 
 
 225 ; 
 
 0(i ! 
 21S 
 217 
 
 «i4 
 113 
 
 52 
 145 
 241 
 1(10 
 1H3 
 
 km; 
 
 2.")(i 
 23.3 
 \A\ 
 254 
 17ti 
 ISS 
 1S3 
 
 07 
 
 ():t 
 
 00 
 
 70 
 
 (i5 
 100 
 
 '-'I 
 
 103 
 
 Page. 
 
 Lindus V. Melrose 108 
 
 Little V. Sl;icklord ,33 
 
 Liveipool Horoiigh hank v. Walker. 100 
 
 Llewellyn v. Winckwoi-tli 10.3 
 
 Lloyd V. Ashl.y 70 
 
 Lloyd V. .Sjgourney 140 
 
 London iJanking Co. v. (Jrooin .... l-i2 
 London anil .Noitii Westein Dank v. 
 
 Wentworth 104 
 
 Loudon & S. W. IJank v. Wentwortli MO 
 
 Long V. .Moore 217 
 
 Lord V. Hall 103 
 
 Lowe V. Pcskett 140 
 
 Lowther V. Carlton 125 
 
 Lucis V. ( downing 154 
 
 l.uciis V. Williams 1(10 
 
 Lundey v. I'ahncr (iS 
 
 Lynch. /•;.- imrh 01 
 
 Ly.-aght V. l!r)ant S2 
 
 M.ihony V. A.shlin 42 
 
 Mahony V. liast llolyford .MiniiigCo. 02 
 
 Malcoinson v, .Malcolnison 47 
 
 .\lalpas V. ( 'lemeiils 255 
 
 Marscilh's K. .t L. C , /,V 2.32 
 
 -Marstun v. .Mien .30 
 
 .\!.;:tin v. i'.nure (I, 33 
 
 .Mai tin V. ( 'iKiuntry 37, 25,3 
 
 -Mar/etti V Williams 241 
 
 .Mason V. Itanisay 7" 
 
 M.ist.r V. Miller 217 
 
 Masters v. Maretto 2i:2 
 
 Matthews v. lUoxsome 72 
 
 Matfhiessen v. London and County 
 
 IJank 24(';, 2."() 
 
 Maxwell V. I'.rain 174 
 
 May V. Chapman 125 
 
 Mead v. Young 40, OS 
 
 .McgL'iiison V. Ilaiji' r 40 
 
 Mclaiiotte V. Tea.-.lale 253 
 
 .Mellish V. Raw.son 143 
 
 Mcllish V. Simeon 233 
 
 M elide/. V, Carreroon Iss 
 
 .MesseugtT V. Soutlley 173 
 
 Me.sure V. Hritten (10 
 
 .Metcalfe V. Itichanlson 173 
 
 Midland H. Co. v. Amhergate, Ae. 
 
 K. Co 2(i 
 
 Miers V. I'.rowp. 107 
 
 Millard v. Duke of Argyle 204 
 
 Miller V. Riddle .55 
 
 iMiller V. Race 83 
 
 Miller V. . Thomson 44 
 
 Mill! V. Prest 74 
 
 Motiatt V. Kdwards 25S 
 
 Moline, Ex fiarti' 189 
 
 Molton V. Camroux S7 
 
I 
 
 Xll. 
 
 TARLE OF CASES, 
 
 Page. 
 
 Mi)ntai,'ne v. Pork ins 7"i 
 
 Mipore V. (Jlstt r IJankiiig Co 52 
 
 More V. Miiimiiiy r/.i, 1,'{!) 
 
 Morgan v. I 'avison LIS 
 
 Morgan v. .Jriliith fSfi 
 
 Morgan V. La Riviere 19!) 
 
 Morley v. ( ulverwell '204 
 
 Morris v. L<e Ill, '2't2, •_'.")4 
 
 Mulliek V. lia.lakissen 143, 148, 149, I'M 
 
 Munroe V. Honlier 11.") 
 
 Murray v. Ivist India Company .... 49 
 
 MeCall V. Taylor 3.") 
 
 Mclntosti V. llev<lon ir»S 
 
 McKcnzie v. IJr'iii.sh Linen Co . it9, 101 
 
 Maekeretii v. (Uisgow, &e., K. Co. 4'2 
 
 Maelae v. Siitlierl.intl 'J">(i 
 
 Macleod v. Snee ,'<!! 
 
 McLean V. Clydcfiilale IJanking Co.. .'!,'{ 
 
 McN'eillie V. Actnn lOS 
 
 McPher.son v. Wright ISS 
 
 Nelson V. ISriilport 2.TJ 
 
 Nicholson V. Uevill 'Jin, -JIT 
 
 North of .Scotland Hanking Co. v. 
 iUihn ' '2m , 
 
 Novilli V. |{us.>i '2\o\ 
 
 I 
 I 
 
 Odell V. Coniiaek IJros IMi ; 
 
 O'Keefe v. Kiiiiii 170 
 
 O'Loghlin, /•;.(■ jKtr/r '.'TO 
 
 Oridge V. Slierliorne ."i4, O.'i j 
 
 (.•rieiital Financial Corporation v. I 
 
 Overend US i 
 
 Orr Kwiiig, /.V 41.' , 
 
 Orr V. Mayinids 1,S7, iSS 
 
 Orr V. v'nion liaiik of Scotland 101 I 
 
 <.)iitli\v,iite V. Liintlev '217 , 
 
 Overend, Ciiriuy \- Co H'.WA, 119, '2-2:i 
 Overeud v. Oriental Iinanei 1 Cor- 
 poration .SO I 
 
 Owen V. Von Uster 70, 70 
 
 Palmer v. Pratt 37. 
 
 Parker v. (iordon 
 
 Parniinter v. Syinons 
 
 Partridge v. Lank of England 
 
 Pasmore v. North 
 
 I'atience v. Townley 
 
 Paul V. .Joel 
 
 Pe.icock V. Pur.ssell 
 
 Pearson v. (iarrett .'?4 
 
 Pease v. Peiid)erthy 
 
 Petit V. Lenson 
 
 Penkivil v. Connell 
 
 Penny v. Innes 1.32, 
 
 Penrose v. Martyr 
 
 oS 
 KiO 
 
 33 
 272 
 
 00 
 
 !(;.-> 
 
 173 
 
 l.-)S 
 
 r)S 
 
 191 
 
 107 
 1.37 
 107 
 
 Page 
 
 Perring v. Hone 217 
 
 Peruvian |{. (^o. v. Thame.* Marine 
 
 Ins. Co 89 
 
 Peto V. Ileynidds 47 
 
 I'liiliips V. ini-Thurn 50, 05, 2'20 
 
 Philliskirk V. Pluckwell Ill 
 
 Philpot V. Mryant 1«'2, 21 1 
 
 Piiilpott V. St. (icorge'.s Hospital .. 85 
 
 Phipp.s V. Tanner 56 
 
 I'hip.son V. Kneller 182 
 
 i'iilaus V. Vaii.Microp 08 
 
 Pinard v. Klockinann 227 
 
 I'liinley v. Westley 53 
 
 I'olhill v. Walter 103 
 
 Pooley V. I Iri ver 95 
 
 Porrier v. Morris 1 l(i 
 
 Potts V. Pell 88 
 
 Prideanx v. Criddle 103 
 
 Prescott V. Mynu 103 
 
 Pretty V. Solly 85 
 
 Price V. Neal 194 
 
 Prince v. Orient.al Lank Coriioration 21."> 
 Provincial Laidv of Ireland v. l>unne. 1'21 
 P) in V. Caniiihell S4, SO 
 
 (i>uilter V. jMapleson 273 
 
 Paliey v. ( Ireenwell 57 
 
 P.illi v. Dennistoiin '207 
 
 Italpli.u 1 v. Lank of Lngland, 83, 14.'i, "253 
 
 Itedniayne v. Lui'ton 82 
 
 lledpath V. All.m 130 
 
 Uegina v. Leard 98, 99 
 
 JU'gina V. ! >yer 03 
 
 Legini v. J\pps 98 
 
 Uegina v. .liistices of Middlesex .... 153 
 
 Kegina v. Mallow Union 270 
 
 liegina v. N'evill 123 
 
 Legina v. Pearcc '20 
 
 Regina v. Uogci's 98 
 
 Uegina v. Take 98 
 
 Uegina V. Wilson 98 
 
 Uegina V. NV'interbottoni 9S 
 
 Lew v. Pettet 109 
 
 Ilex V. Atkinson 9S 
 
 Ilex V. Loll.ind 98 
 
 Ucx V. Loulton 95 
 
 Uex V. Dunn 98 
 
 Uex V. Porl.es 99 
 
 Uex V. Hides 98 
 
 Uex V. Hartc 98 
 
 Hex V. .lustices of Cumberland .... ()3 
 
 Uex V. i.iainl)ton 132 
 
 Lex V. Marshall 98 
 
 Uex V. Peacock 98 
 
 Lex V. Randall 34 
 
 Rex V Teague 98 
 
TAHLE OF CASi:S. 
 
 Xlll. 
 
 Page, j 
 
 Rex V. Wilkes 4<i 
 
 Reynolds v. I'eto 47 i 
 
 Ftlioiles V. Morse .... 'J'J"> i 
 
 Riehards v. liichanls T)* 
 
 Hieliilule, Ex jxirti' '2A:i 
 
 Rickfi.rd V. Kidge 159, !«;{, 17:« 
 
 Roharts V. Tinker I.")7, Mil j 
 
 Roljeits, Kr jKiiie 117, l.'l-{ ' 
 
 Roberts v. Iktl.ell «0, G8, 7!>, 14!) ! 
 
 Roliert-s V. I'eake ."U j 
 
 Uolieitsoii V. Kensington 74, ISS 
 
 lldliihs V. .May .">?>; 
 
 liciliiiisnii V. island 1'2.') ' 
 
 Itdger.s V. lladley S4 i 
 
 l{o-erscin V. Ladl)r..ke *24:{, --'44 
 
 Kiilin V. Stew.inl -41 j 
 
 lldtliscliild V. ( iinie '2.10 
 
 IIiiiHinetti' V. Overman .... 10.", lUti, '_'.'!;> 
 
 lliiwe V. ^'ollng l.'i.") \ 
 
 liiiikmalMiye v. l.itlloul)li(iy I.'!.") 1 
 
 Jiiiii V. \Vei.i> .■{;{; 
 
 itiiss-ell V. llaiikey "Jll.") 
 
 lUl.ssell V. Lee !tl j 
 
 Kus>iell V. I'hillips 'J(5, 70, 7ii i 
 
 Itus-sell V. I'ow ell .'57 
 
 I'age. 
 
 Smith V. Union Hank 245 
 
 .'>mitli V. Vertue 74 
 
 Siiaitli V. Mingay 43 
 
 Societe ( ieneral v. Metropolitan Dank 'J'iT 
 
 .Solarte v. i'alnier 17,'t 
 
 Sowerby v. Iliitclier (iT 
 
 Sjiniat V. Matthews^ 3'', 74, 75 
 
 Stagg V. Klliott 103 
 
 .St.titiip V. Maedonald 79 
 
 Statr lii8iiianee ( 'o. , AV 'J34 
 
 Stiljhing V. Spiuer 04 
 
 .Steele V. Hinner "(1 
 
 Steel.' V. .M.Kinlay G.S, tiO 
 
 .Ste[)licns V. luyiiulds 05 
 
 Xevei.s V. Hill :{9 
 
 .Stevens V. I.liiyd "218 
 
 Strwart V, (i.iot •J31 
 
 Slot ken V. (Dnlin 177 
 
 St. me V. Mcteult 'J(i2 
 
 Salniniins v. Stavely 
 
 .'^'iiiiiiel V, ( ircen 
 
 .Saiidt'i.-ioii v. Ildvves 
 
 Saul v. .loiies 
 
 >Saiindei.--oii v, .laekson 
 
 Sauiidei.'^oii V. I'ipir 
 
 iSeard v. .laek^dn 
 
 .Seiinciiier v. Noni.s 
 
 .Selii'.ieder v. Central IJank 
 
 Silliy \-. Mden 
 
 Serlu V. Ncnton 
 
 Sharp \ , r.ailey 
 
 Sluliiiii V. liiaitliwaite , 
 
 Slulton V. .lames 
 
 SlieplMid V. I'ayne 
 
 Sliiilt/. V. Astley 
 
 Sliuttlewortli, Ex /i(ir/( 
 
 Sliiittleworth V. .Stei.hens 
 
 Sihree V. 'i'ripp 
 
 Siggir.s V. Ltw is 
 
 Simmciiis v. Taylor 
 
 Sloman v. ('o.\ 
 
 Small [lage'.s A: lirandou's ('ase.s , . 
 
 Hmitli V, Aiiiiott 
 
 .Smith V. liellamy 
 
 Smitii V. Clay 
 
 .Smith V. K( ndall 
 
 Smitli V. Mundy 
 
 Smitli V. New .South Wales Hank 
 Smith V. Smitli 
 
 1S7 
 
 SI 
 
 •->(i<> 
 107 
 
 X't 
 5, .")li 
 
 7.S 
 
 3.-) 
 V.i-2 
 103 
 , 101 
 l,V! 
 177 
 
 34 
 •J7(t 
 
 71 
 \Xi 
 
 M\ 
 
 3S 
 Ki.S 
 •-'4.") 
 
 >>tolt V. Fairlaml) 
 
 .Strakir v. ( iraliam 
 
 ."^triiiLjIielil v. Laiie//aii 
 
 .Siilli'll V. liank 111 l-jigl.mil 
 
 .'^nttdii, E.I jKirli 
 
 .S-.van v. CJux 
 
 .^v\an, E.C /inr'i' -17, 
 
 .Swan V. North IJriti.sh .Au.'^tialian 
 Co 77, 70, .N), 10.-), 
 
 3--', -2 
 
 -II 
 
 ..(I 
 
 1.-.3! 
 
 -'ll 
 
 SI 
 
 I -JO, 
 
 'J.j3 
 
 I'ass.l V. Ll w is 
 
 Latam v, llaslar 
 
 latloek \ ll.irM.s 
 
 lay liii' V. Cioker 
 
 lenjl.lc V. I'ullen 
 
 leiiiiant V. Cia« lord 
 
 I'haekr.iy v. Illaekett 17i', 
 
 riiomas, /•,'./ /mrfi 
 
 riioMipson V. ( 'luliley 
 
 riiompsiiu V. < iiKs 
 
 I lioiMpson V. La<'k 
 
 rhnnip>on V. Cniviisal .Sahagt- Co.. 
 
 liihii.ir.sli V. (imver 
 
 I'lidei' V. .Sansam 
 
 i Ootell. E.I jiiirli 
 
 I (lurrtt V. ( 'ii| ps 
 
 I'l ig:.'s \'. New viiham 
 
 Iriii.lde V. Mill 
 
 I'linimei- V. ( Id.lir 
 
 Ti umaii V. Hurst 
 
 I linuo V. La.'ue 
 
 Turner v. I.e.'eh 
 
 Turner v. S imson 100, 
 
 Tiitton V. I >aike 
 
 Twogo.id, E.C jiuiie. 
 
 74 
 
 1.V2 
 •-•41 
 •JI7 
 103 
 74 
 ■J--'4 
 
 •-'ti5 
 
 205 
 
 40 
 
 02 
 
 70 
 
 •.•.-)4 
 
 174 
 
 I :;3 
 
 1 20 
 
 117 
 
 273 
 
 '.10 
 
 217 
 
 S.S 
 
 3.S 
 
 35 
 
 l.-,8 
 
 81 
 
 170 
 IS2 
 1S3 
 03 
 117 
 
 Uther V. Rich 123 
 
*? 
 
 XIV. 
 
 TABLE OF CASES. 
 
 Page. 
 Vagliano v. Hank of Kimlaiul . .46, 50, 
 
 1)1), KM), l(i7, U)4 
 
 V.anco V. Lowtlii!!- 217 
 
 ViiiKUrDoiickt V. Thellusson 2(50 
 
 Vau;,'liaii v. FuIltT 1(W 
 
 Vinuuiit V. Hdilock UVJ 
 
 Wat'kerbatli, AV y/ftr/t 
 
 VVaitlinian v. Klsoo 
 
 WalkiT V. Atwooil 
 
 WalkiT V. McDonald 
 
 Walinslfy v. Cliild 
 
 Walter V. Hastings 
 
 Walton V. Masuall ... 190, 
 
 Ward V. Kvans 
 
 Ware v. Lord Kj^inond 
 
 Warrington v. Harly 
 
 Watson V. Kvans 
 
 Watson V. Kiglitlcy 
 
 Weill) V. Fairniane 
 
 WegcrslolTi! v. Kucnu 
 
 Wi'st London C'oniniurcial Hank v. 
 
 Kit.son 
 
 Wliatk'y V. Ti-icker 
 
 Wlicatlcy V. Williams 
 
 18H 
 2.-)3 
 
 \\'liistk'r V. Korstur I". 
 
 White V. North 
 
 Wliittield V. Lord Dtspencer 
 
 Whitlock V. I'nderwood 
 
 Whitniore v. Wilks 
 
 Wiggen V. Roberts 
 
 Wilde V. t^heridan 
 
 Wilkes V. Jacks , . . . . 
 
 Wilkins v. .ladis 
 
 12,1, 
 
 1.*!!) 
 225 
 217 
 2(jl 
 L-if» 
 125 
 218 
 49 
 40 
 
 104 
 218 
 2.5.S 
 i;u 
 
 UV.i 
 
 Page. 
 
 Yate.s, Er parte 218 
 
 Yates V. Daltou 96 
 
 Vates V. Nash 48, 49 
 
 Vork.shire Hanking Co v. lieatson 95 
 
 Vonng V. (ilover 132 
 
 Young V. Grote 217 
 
 Wilkinson v. 
 Wilkinson v 
 Wilkinson v. 
 Wilkinson v, 
 Wilkinson v, 
 
 Hritton 6M, 
 
 .lohnson 
 
 Lutwidge 
 
 I'ayne 
 
 Unwin 
 
 Will.ins V. Ayers 44, 
 
 Williams v. 
 Williams v. 
 Williams v. 
 Williams v. 
 Williams v. 
 
 Bailey 
 
 East India Company .. 
 
 Cerinaine 72, 181, 
 
 Snuth 
 
 Waring 
 
 Williamson v. Watts 
 
 Willis V. liarrett 48 
 
 Wilson, Ex parti 
 
 Wilson V. Thornbury 
 
 Witham v. l^ee 
 
 Wood V. Mytton 
 
 Woodcock V. Honldsworth 
 
 Woodward V. I'ell 
 
 Worley v. Harrison 
 
 Worrall v. Halt'ord 
 
 Wynne v. .lackson 
 
 217 
 L-.8 
 
 81 
 183 
 158 
 154 
 214 
 
 (18 
 11. '{ 
 144 
 202 
 124 
 
 77 
 220 
 170 
 ](!• 
 
 01 
 , 70 
 211 
 
 99 
 124 
 
 44 
 178 
 144 
 
 58 
 108 
 231 
 
 Aiiurii'aii Ca-fen, 
 
 Alabama, kc, Co. v. lirainard. . 109, 136 
 
 Amy V. Supervisors 1()5 
 
 Armstrong v. Thurston 161 
 
 Arnold V. Dresser 102 
 
 Austin V. Miller 270 
 
 Bacon V. P.ieknell 257 
 
 Hacon V. Buridiam 137 
 
 Baldwin v. Karnsworth 102 
 
 Ballard v. 'Jreenbush 214 
 
 Bavou Sara v. Harjier 1 1.5 
 
 Bank of Comnionwealtli V. Curry .. 78 
 
 Bank of Rochester v. Harris 242 
 
 Bank of Teimessee v. Burk 89 
 
 liank of Toronto v. Hunter 119 
 
 Hank of United States v. Davis 1.37 
 
 Bank of Utica v. DeMott 180 
 
 Bank of Washington v. Triplett 72, 151 
 
 Barclay v. Weaver 182 
 
 Barker v. Mechanics Insurance Co. . 109 
 
 Barker v. McKay 186 
 
 Haver(iue v. San Francisco 40 
 
 Beardsley v. Hill 56 
 
 Reckwith v. Union Rank 243 
 
 Beede v. Real Kstate Rank 214 
 
 Rencdict v. Cowden 217 
 
 Rellows V. Folson 82 
 
 Biesenthall v. Williams 33 
 
 Bingham v. Kimball Ill 
 
 Blake V. McMillan 151 
 
 Blodgett V. .lackson 50 
 
 Blont V. Proctor 124 
 
 Boiles V. Sterns 70, 137 
 
 Pond V. Rrotherson 218 
 
 Ronldin v. I'age 175 
 
 R(u)th V. ^Vallace 56 
 
 Rrackitt v. Mouiitford 218 
 
 Rrenzer v. Wiglitman 53 
 
 Rrockway v. Allen 109 
 
 Rrooke v. F.dson 30 
 
 RroNN n V. Rntchers and Drovers 15ank .35 
 
 Brown v. (iilman 25.3 
 
 Rrown V. .Jones 218 
 
 Brown v. Spofl'ord 252 
 
 Rrown V. Torkingtou 124 
 
 Buckner v. (\irry 207 
 
Page. 
 
 218 
 
 9H 
 
 ...48, 49 
 nn . m 
 
 .... 132 
 217 
 
 -2, 
 
 ]3(j 
 1()5 
 161 
 162 
 270 
 
 257 
 
 137 
 
 102 
 
 214 
 
 115 
 
 78 
 
 242 
 
 89 
 
 119 
 
 137 
 
 180 
 
 151 
 
 182 
 
 109 
 
 186 
 
 40 
 
 56 
 
 243 
 
 214 
 
 217 
 
 82 
 
 33 
 
 111 
 
 151 
 50 
 
 124 
 
 137 
 
 218 
 
 176 
 56 
 
 218 
 53 
 
 109 
 30 
 35 
 
 253 
 
 218 
 
 252 
 
 124 
 
 207 
 
 TAHLIi OF CASES. 
 
 XV. 
 
 Page. 
 
 Biirttli V. Dint 207 
 
 Ijiillipck V. Aijhuni 112 
 
 Burii.s V. Rowliind S3 
 
 Cantifld v, Ives si 
 
 ( 'iirll V. IJidwii 143 
 
 Ciirltoii v. lirooks ;^7 
 
 ("arniiihael V. I Viin.sylvauia Bank.. ISS 
 
 C.irtcr V. .MrCIintock 
 
 i'arutli V. 'riionip.snn ;{() 
 
 Cliailscy V. .Mtl'reery (j; 
 
 « "hester v. Dorr i|(( 
 
 Clark V. Sigdurncy ,vj3, 133 j 
 
 Clos.son V. Stfiirn.s ' ;{() 
 
 Clutu V. Small 21 S 
 
 (a)Isoii v. .\rri()t 
 
 CoiMirKivial liank v. Koiitli. 
 
 Page. 
 
 < Jantt V. Jones j y ,-, 
 
 (}anliner V.Cleveland Vj) 
 
 (iavin V. Hiirton '/ [ 91 
 
 (Granite K. Co. v. Hucou. . ...[,// 2I8 
 
 Crirtin v. Rice ] 243 
 
 ( iillihin V. Myers . . 29 
 
 (iolding's Petition . . . . *J] 
 
 <iord(>n V. Kundlett .... ,37 
 
 82 Cough V. Staats 242 
 
 (Jroves V. Hrown 206 
 
 (Jookiu V. Kijliard.soii ...'......,/ ixi 
 
 123 
 
 Connor V, liotitli . . 
 
 Cook V. Sattcrleo H 
 
 Hall V. Howard j 12 
 
 Haskell V. ( 'ornish . . lojj 
 
 llardiii V. Wright 
 Harris v. Claik . . 
 Ilea.st V 
 
 C 
 
 Costelli 
 
 orcoran v 
 
 V. ( 'r. 
 
 H.,dg, 
 
 8 1 M 
 \ ! H( 
 
 Syhcrt 
 enry v. ,lones 
 
 JI2 
 162 
 
 112 
 
 158 
 
 .■11 
 
 s l!»Si Ho. 
 
 rring v. Woodliull m-t 
 
 "^*'^" 255! Holn 
 
 Wint 
 
 on . , 
 
 (V)\vi.erth\vaite v. Shellield 
 
 Cox V. Modi: 
 
 Cratt V. State Rank ] 
 
 le.s V. Sinehiir ».-; 
 
 1.32 
 
 :^!» Hopkirk V. P 
 
 Cril.l 
 
 Ad, 
 
 207 
 
 mis. 
 
 188 
 
 Crutehtieid v. Kaston ..,, i:| 
 
 Curt 
 
 2(»,- 
 
 uia v. San Francisco 40 
 
 ina V. ,S,i« yer 1;-,^ 
 
 Di 
 
 I); 
 
 Daniel v. KvK' 24 
 
 '.'.'.'. h: 
 
 125 
 
 lierwood 
 
 Dart 
 
 Day V. Cutler 
 
 D 
 
 D 
 
 Del 
 
 Hovt 
 
 ."^ee 
 
 ley 
 
 179 
 
 242 
 
 Fnghrani v. (iild 
 
 >H 
 
 ,hlv\. 
 
 kson V. 
 
 \ 
 
 oui 
 
 '«• 
 
 lercjhie V. .Steiiliins 
 
 ,]ol 
 
 IMS \-, 
 
 II 
 
 iirison 
 
 .loliiisun V. Smith 
 
 Kennedy v. Mnrdiek . 
 
 ean V. 
 
 eiieirre v. 
 
 ezard 
 
 keves V. 
 
 Di 
 
 ekerson v 
 
 H 
 I 
 
 iriart. 
 »urk . 
 
 I-' 
 H( 
 
 227 
 
 268 
 
 1.59 
 
 79 
 
 102 
 
 124 
 
 nsterniaker i-jg 
 
 152, 161 
 
 40, King 
 
 174 Kingsliiu'v V. Kills "' i 
 .1-" i I ■ . *. 1 . J 
 
 Douglas V. \Vilk( 
 Diiniont V. Will 
 
 1.1 line V 
 
 For. I 
 
 24 
 29 
 
 Dyer V. 'rownshij) of Covingt 
 
 "i"'s<'ii 6() I Kitel 
 
 U'll v, 
 
 Dyk 
 
 on 
 
 Hank 
 
 s V. Leather Manufautu 
 
 rers 
 
 34 j Kilgour V. IJuekley ....'. 53 
 
 ICO O]^ 
 
 201 
 1.59 
 
 PI 
 40 , Knowles v. Hil 
 
 Eark 
 Kll 
 
 IS V, 
 
 Diinl 
 
 lani. 
 
 !.van.s V. Steel. 
 
 243 
 
 l.SO 
 I4!l 
 
 40 
 
 onier 
 
 iiWiiig V. Harnett q&I 
 
 Kohler V, 
 
 Konig V 
 
 Koiuitz V. Hart o 
 
 . .Montg 
 %'^'''l- •••' (i5 
 
 Far 
 
 'orris V. Sa.xto 
 
 Field 
 Fisk 
 
 rs Bank, AV 244 
 
 ." Uui 
 
 1.-)!) 
 
 Nick 
 V. Kldrid 
 
 erson . 
 
 Fort V. M, 
 Fosti 
 
 K^'- 
 
 Lan 
 
 LatI 
 Lei 
 
 sing V. Caine. 
 
 lain V. 
 
 ones . 
 
 iiiian V. Jones 
 
 USOIl 
 
 Leonard v. M 
 
 A!\vis V. Schenk 
 
 18 
 
 30 
 140 
 166 
 
 33 
 
 Liel 
 
 lelier V. (; 
 
 jOWO V. 
 
 lili 
 
 oodric 
 
 67 I Lowt'iy V. Stewart. 
 
 Foster 
 Frankli 
 
 Fiilk 
 Hill 
 
 u V, March 
 
 1!>4 
 10!) 
 I!t7 
 253 
 
 freeman v. Hoynton i", 
 
 Fritsch V. Heislen 
 
 )!» 
 
 60 
 
 Luiiil 
 
 216 
 
 48 
 
 ihernians Hank v. I'ratt 97 
 
 Lyon V. Marshall 
 
 49 
 
 Massachussetts Bank v. Oliver.. 151, 1 
 Matthews v. lied 
 Maples V. Wight 
 
 wiue 
 man . . 
 
 tit 
 34 
 91 
 
XVI. 
 
 TAHF.E OF CASES. 
 
 Page. 
 
 M<'(;li(iiii(!f< li'iiik V. Lynn Ii>2 
 
 Mi(!k V. Howanl I.'UJ 
 
 Mill.r V. liurklcy '2_'7 
 
 Miiitiini V. Im.sIi.'t IH-J 
 
 Mitcli.ll V. I'.ynin H'J 
 
 MiU:licll V. I »o< iniiid 7- 
 
 Mcirton V. X.ivlfH" •'{'.( 
 
 Most V. Hick-* Km 
 
 Miililniw V. Calilwcll "J.")"} 
 
 Musscliiiaii V. ( (iikcs 48 
 
 Pai^e. 
 
 Reid V. Morrison l(i() 
 
 l.'ii't: V. ( Jove im 
 
 i.'ic! V. lliif.'liiiia :V{ 
 
 I'ohei'tH V. .Masiiii !♦)() 
 
 Uolicrtsoii V. Vo(,'le ISO 
 
 lt(><tkiii^liaiii Uaiik v. Claggett '-'07 
 
 IIiisHcll V. Wliipple 'J.');} 
 
 Me \rtliur V, Nri..^..! 11.1 
 
 Mclli an V. Mm lisdii .'$."> 
 
 Mc(!ov V. <liliii(iri' •_'.").'{ 
 
 INlitCioillis V. Ilnw ill 
 
 McKa(^ V. liussull I'-'l 
 
 NaiKH! V. Lriiv 77 
 
 Nasli V lliiiiiiiytoii 17!t 
 
 Nisli V. Kiiss.li 'l'_> 
 
 National l!,u k V. Miilanl •242 
 
 Nfw.so II V. 'riiilicii I'2t 
 
 Js't'W Orleans • anal Co. v. liry . . • I7!l 
 iS't'W N'dik Ciiiiti.n'ting Co. v. Si'lina 
 
 I5ank 1N3 
 
 Kiiliols V. l''rotliiii!,'liani ."S 
 
 Niglitiiiiialc V. II line;; Ill 
 
 Niglitin^alr V. Withiiiijtoii !l'2 
 
 SaylfH V. Sim '251 
 
 Sflinciilcr V. Irving Hank '24H 
 
 Si'ott V. I>i'|)<'ystiT '2(i4 
 
 Si'avi^r V. i^iiii'oln 1;")!) 
 
 Scvniniir V. Lcyniaii Ki.l 
 
 Sha.lur v. Matr'liclor 40 
 
 Sh.'il V. I'.it'tt Iti'i 
 
 Sniitli \- 
 Smith V 
 Sinitli V 
 Smith V, 
 Spcir V, 
 State V. 
 
 Ap|)lfuato I'24 
 
 Kittridge I r2 
 
 Smitii '. 06 
 
 Whiting ]:m; 
 
 I'latt.. (ii) 
 
 Me Lean 2(>H 
 
 I Stoiitenlu TLT V. Lvliiaml 12.") 
 
 : Snl.htt V. .MeKinney 210 
 
 ' Snllivan v. ( 'oiliii« 112 
 
 I Snss. X IJaiik v. lialdwin INS 
 
 j Swasey V. Vaiulerheyden fli 
 
 I ^wift V. Tyson 20 
 
 [ Swojh; v. itohis 1!(7 
 
 Orear v. M- l)(iiiald lo't 1 Taylor v. I)avidson Kil, 
 
 Ormsl.y v. Kemhdl Kl'.t Thayer v. I'.ia.kett 
 
 O-giiml \-, I'aisoiis -is Tdiisi y v. Taw 
 
 Otis v. Harrison 124 T'Mithaker v. C'ornwall 
 
 ' Tnten V. Kyan 
 
 I'alnier v. Sti|ihcns 2.")7 j 
 
 Palmer v. Whitney I7'.l j I'nited States v. liardynian 
 
 l'ar(UT V l.iirlley' 2!l | Cniteil St ites Triist('o. v. Unit.Ml 
 
 Parsiiiis V. Armiif sli, 2.S7 j States I'ire Ins. Co 
 
 Pemiiiewassrt 11 ink v. Itogers I'Jtj 
 
 People v. AUeii 2(>S i Wa>liiiigton Mutnallns. Co. v. Miller 
 
 Peoph' v. Cnok 2tiS j Weitherliv v. Clioate 
 
 I'.'rson.s V. \!(d\ilih«n I.'!-' ! U'ells v. New 'S'oik Central It. Co . 
 
 I'liiladel|iliia I'.ank \. X.'wkirk ."tii Wlneler v. W ehster 
 
 Pine l.'iv.'i r. ^nk V. Ilods.'on 11.". Wiieeler v. Wheeler 
 
 Pres(^ott V. Ward 1 l.'t ; White v. Ilevlman 
 
 Price V. Sharp 2U 1 Wi^'uriiis v. \' inglit 
 
 I Williams V. Xiehcils 
 
 (^uin V. Sterne .Si) | Wiihaighhy v. Moulton. 
 
 W 
 
 ■^enier 
 
 ir.2 
 
 1.-)!) 
 Ill 
 I7<i 
 
 !t7 
 
 2(;s 
 
 54 
 112 
 2(i.-) 
 
 179 
 
 Paigaiiel v. Avlitr 
 
 P 
 
 lymoni 
 
 lliek 
 
 40 j W g 111 V. Thoni|)son 17; 
 
 llo! Wnol 
 
 MeM 
 
 Read V. \le\iilty 37jW Ifoidv. I) 
 
 Jlued V. lloark .SS. 218 | Wordeii v. Dod 
 
 eaiis . . . 
 or win. 
 
 ISO 
 
 3D 
 
Pa.Kf. 
 
 l«i(i 
 
 35 
 
 33 
 
 !•)() 
 
 ISO 
 
 • i;f»7 
 
 l2/i3 
 
 '251 
 
 '.'43 
 
 i.'()4 
 
 la!) 
 
 133 
 
 40 
 
 I«'2 
 
 124 
 
 Illi 
 
 ;')() 
 
 I3(; 
 
 ()!) 
 
 268 
 
 .. 12-) 
 
 .. 210 
 
 112 
 
 KSS 
 
 .... 91 
 
 .... 20 
 
 .... I!»7 
 
 . Kil, I (-.2 
 .... IT)!) 
 .... Ill 
 .... I7ti 
 . . . . 97 
 
 . .. 272 
 
 itc.l 
 
 ... 2(i,S 
 
 Her 04 
 ... 112 
 <> . 2(ir> 
 
 . . v.! 
 
 u 
 
 179 
 175 
 ISO 
 .")9 
 39 
 
 INTItODUCTION 
 
 To TIIK 
 
 l-.\W OF HILLS OF F.\CHA.\(;f. 
 
 I he little -lofnn.rMt, Icnown un.l..r tl.o nninos of a " iJiJI '^ '"ii .,f 
 ot Kxchan;.,.;' or a " Pronnssory Not.," whetlnT iss,,.,! I.v ^"'"""■ 
 H -.•u.l<..r..,sa draft or a hank not., or I.v nn-n-Iiants anil 
 '.tlHM-s. as a cro.lit security, a...| wluel, cMuopolitan i,. its 
 ^.Ht.onnhty, l.as pennentod tho con.nM.nv of ,h.. uorM 
 
 ;""' f ^';"'"'' ;"■""•"' it a ..o,|e of uMivers. rr.utwi 
 
 'Hw. 1ms l„H.n thus <|..senl,e.I: - .\ hill of ..x,.l,.„„,, is cu.n- 
 nundy drawn on asn.nll piece of paper and ^o.nj.^is.d 
 ". tu-o or three hnes, and is so nohle and exeelLnt, that i- 
 -s l.ey.,„d or exeeedini^ any specialty or hond in its p„netu- 
 
 ah y and p,vc,se payn.,.nt: for ifonee accept,.!, it tnust he 
 paui wh.n d„e, otheru-i.e the acceptor lose, his credit." ■ 
 
 The ne^otiahle securities called hills of .xchan^e, pro- ,„„n.: r 
 
 ms-y notes, bank notes, che,ues. and other pap..r.n,.a.ey lilH^r'" 
 
 secunt.e,s^wlnchpartakeuftheir,.haracteristi,.,aretheo,dy 
 spcctes of contract, technically classed hy the lau- und.^ 
 
 " ''t '^ ''^T ''''''■'-''. -'•-l--dinarilv earrv with 
 ""'"'; ^'y ^^^^nsi^y, a clear and ind.fensaM.. 'tit 1. ' Th.^v 
 ".ay he said to possess three -p.alities or charaeteristi<.; 
 -l'H-1' ;hstM,^u.sh then, frotn all other contracts or chattel' 
 .-.ghts ,„ property of the species known as cho.. ; .J, 
 
 !• The t.tle. If any chattel, whieh can !„■ i.l,.„titi..d is , „ , , 
 
 t:^Jr'^:!' ;rr' '" ''"•^^'^^^^'•- ''-^•--' "— ^or ---■' •^" 
 
 .^^no,ant of the theft, can acquire u title to it against the 
 
 ' Heawe.s, Lex Afcrcaforla 501. 
 
 ill... 
 
INTIMULH TION TO TlIK 
 
 ■J. CfrlHiii 
 liiauiouiit 
 
 3. True in 
 
 cousklera- 
 tiuu. 
 
 tiMio ownor. Aivl such owiut can claim it at any time, 
 and at any place, it" lit' is abU- satisfactorily to identify it 
 and ('stal)lisli his ori^^inid ownership. Hut it' la ne^otiahlc 
 bill or note, drawn or indorsed so as to lie payable to liearcr, 
 bo stolen, and transfeireil by tlie thief to a third ])erson 
 Avlio is iiniocent and i;,Miorant of tlie theft, and wlio gives 
 value for it to the thief, such person l)econies, by his j)ur- 
 chase, ii hdiKi title liolder for value without notice. He is, 
 as the new Aet designates him, "a holder in due course'," 
 and ac(|uires an absolute and indefeasabh^ title to the; bill 
 or note, anil can claim the payment of it from all the jirior 
 parties, who n)ay be legally liable to him according to 
 their several contracts. 
 
 '2. 'i'he amount. If a V)onil, or otlier clnn^c In (U-tion, is 
 transferred to a hona fide holder, it carries with it all its 
 ecpiities and de^'ccts of title; and the assignee or holder 
 steps into the shoes of his assignor, and is subject to the 
 contingencv of its amount beinu- reduced by set-otf or 
 counter-claim, or agreejuents ijualifying its value, between 
 the oi'iginal ])arties. No transfer by a thief can give a titlt; 
 to it, or in any way defeat the right or title of the original 
 holder, or any successive holders, of such bond or c]io,<te in, 
 action. But a bill or note guarantees the right to the 
 whole amount secured by its face, and is subject to no 
 deduction or set-otf, at the instance of the original or 
 intervening parties, in the hands of a liolder in due course, 
 who has honti Hdc acquired it for value before maturity. 
 It is like a bank note, a circulating instrument of credit, 
 and jtart of the commercial currency of the country, and 
 has all the rights of negotiability which, for the public 
 interest and convenience, attach to an oivli^ary bank 
 note. 
 
 8. The consideration. By the usage of merchants, the 
 value stated on a bill or note, is the true consideration, and 
 is conclusively presumed by law to be so ; and in the hands 
 of a holder in due course, no evidence is allowable that, at 
 
 
LAW OF HILLS OK EX('llAN<iK. 
 
 a title! 
 
 •i^'iiial 
 
 •use in 
 
 ,0 the 
 
 to no 
 
 nal or 
 
 'our.sc, 
 
 turity. 
 
 credit, 
 
 y, and 
 
 )ublic 
 
 bank 
 
 ts, the 
 II, and 
 hands 
 laty ati 
 
 the time tlip bill or note was .si;,'nt.'d and delivered, or at any- 
 time .sub.se(meiitly, there was a total or pai-tial failure of the 
 eonsidt'ration stated as the "value recei\eil; ' or that its faci; 
 value was to be reduced ou some (lualify'ni,' contiuj^ency. 
 Ami this ab,>,()lute aud indefeasal)le proteeticju and security, 
 as to the consideration lor the bill or note, is available in 
 till- hauils ol' a banker discoinitinj,' and holdinij it as a 
 security tor advances, as it is in the hands oi' an absolute 
 ownei' of the bill or note, who holds it by the title of a 
 holder in due course. All defects of title, and all e<|uities 
 attachini,' to the bill oi- note betwcH'ii the immediate au<l 
 remote parties, who are le:;ally such, ))erish with its buiKi 
 I'lde transfer for value to "a holder in due course." 
 
 The oriijin and history of IJills oi" Exehati;^'*', like the 
 origin and history (jf many other conunereial eontra<'ts, are 
 subjects involved in no small obscurity. ']'1k' i-xchaiif^o of 
 '4oods for goods, or what is called barter traile, appears to 
 have existed in all nations from the earliest pei-iod of their 
 formation into conununities, aj)parently from the very 
 necessities of their trading intercourse with each other. 
 
 The original traffic by barter becoming troublesome, 
 soon led to the invention of money, in tlu; shajtt' of 
 coins of the most valuable metals, which, for the conven- 
 ience of foreign trade, were of an easy carriage, by lieing 
 less bulky than goods. Ultimately the ingenuity of man 
 and the necessities of commerce, substituted letters of renut- 
 tances and exchanges by bills, to save the expense, risk, and 
 trouble, which the transport of money from one kingdom 
 to another occasioned. 
 
 The Jews banished from France in the reigns of Philip 
 Augustus and Peter le Long, are supposed b}^ some to have 
 been the original inventors of exchanges ; whilst others with 
 greater appearance of probability, assign the contrivance 
 to the Gibelins, on their Ijeing expelled from Italy by the 
 factions of the Chielphs; though the motives given for 
 
 Origin aMi 
 lii-lciiy of 
 bill> and 
 
 IlOtlS. 
 
 liartor. 
 
 M'incy Hill 
 Ciiiiii'. 
 
 Excliaii^t'-. 
 bv bilN 
 subatitiiti-l. 
 
 Inventor^ 
 of bills iif 
 exchaii)^-. 
 
"W.I5 
 
 4 INTI|(»l»i:( TIoN TO TIIK 
 
 hotli aro tho same, vi/., tlu'ir ondcavotirs ti» witlnlraw 
 tlieir absc()U<lc<l cfrt'cts, with the .secrecy Jioccssaiv to pi'o 
 vent tlifir coiiliscation, to those coiiiittli's which they hml 
 cliosen, or whertf they liiul been conipeHed to reside; and 
 for this iiurjiose they i^nve hill.s on their private iVietids, to 
 11.LM11.11..1 i'orciiJii iiierchaiits, i'or the sums a'fieed on, which wen; reifu- 
 *"'""*• hited Ity tlio ditt'ereiit vaUies of the coins c.\chan<j;ed. As 
 
 many of tlieso bills canio back unpaid, it n'ave birth to tlie 
 chari^e of re-e\(liani;'e, saiij to have l)eon first beyun liy the 
 Jews and Loiidtai'ds; and tliese after difleivnt niodilications, 
 fixed it into a branch of mercantile itusiness. - 
 
 Tliese exclian-res by bills wore soon extended lor tin; 
 easier conductintr of mercantile affairs, and at the same 
 time to pr(!vent tlie exportation of their current ci/n. ; and 
 wi-re found so beneficial and adv!i!it;ii;'',)us to evading 
 conMiiuniti<'s us to induce several sovereigns to make laws 
 and I'ei'ulations concernin<r them. 
 
 Tafu'Vf''""" ^^«lward 111., under an "Act for Tallies of Kxehange," 
 foreign ooins. p,,^^,.,| j,, | ;};.;,_ ^..^ixsvil certain tables to be set uj) at Dover 
 and other parts of th(( I'ealm, declarini; the value of the 
 suinlry species of coins current in the countiies tradini,' 
 "with his subjects, and the rate of allowance merchants were 
 to pay t(t be accommodated Avith remittances. ( )tlit i- 
 statutes velatini;- to foref«L;ii trade may be seen in m.iiiy of 
 the laws of his I'ei^ii. 'i'h.ese tables and exchanges were 
 subject to the ilirection of the Kijiy's Mint-Master, who 
 Aiii.«:inrc made thuiu niir ih'o pai-i, or value for value, with a reason- 
 
 foroxcliunge. i / i 
 
 able allowance to those who were appointed to intervene as 
 exchangers for tlu-ir trouble; and many Acts have been 
 passed in succeedin, reigns concerning them. 
 
 Whitli.r 
 bills of 
 o.\i"iinnj;o 
 wiTc known 
 to tlic 
 aiiciviit..!. 
 
 It has been sujtposed by some writers, that Bills of 
 Exchange M'ere known to the nations of antiipiity, and 
 esjiecially to the Romans.-* ]^ut there is great reason to 
 
 - 15c;iwes, Act" Mercatoria, fj-jO-riOO. 
 
 ' Mr, Juslioe Ryles in the preface to his work on Bills of Exchange, 
 says that " there it* no .xstige of the existence of bills of exchange among 
 
I. AW (iK 1111,1 s ui' i;\riiA\i;i;. 
 
 5 
 
 witliili-nw 
 ly to |)i'o 
 tlit-y liivd 
 side : mill 
 tVitMids, to 
 
 lyt'il. As 
 rtli to the 
 im liy the 
 lilictitiuiis, 
 
 .1 t'ui- tlic 
 the saiiir 
 foil. : and 
 I) CViulilii; 
 lukt.' hiws 
 
 xdiaiiijjc, 
 
 at |)o\fi" 
 
 lie ot" the 
 
 trading 
 
 lilts were 
 
 Oth. r 
 
 many nf 
 
 iocs WlTi' 
 
 >ti'r. ^\■ho 
 a rcasdii- 
 ■rvene as 
 
 ILVO ht'Cll 
 
 Hills ol' 
 lity, and 
 icason to 
 
 Exchange, 
 
 iige among; 
 
 # 
 
 <louht. wlittlifr the Mm- «d' tlirhi. ill tin- form and maiiiH'i', 
 and fof the iiur|ii>sr>, to whii'h tiny air now a|i|iiii'il, was 
 known to aiitii|uity. 'I'hf n«air^t a|i|noai'h srcm^ to hr tin; 
 (.'iisloin. whi'-li prrvaiji'd at Home, whci'i.' oii<' paid iiiuii.y 
 to aiiotlnT at Home tu lie ir|iaid liy ihc otlitT at aiiitiicr 
 |ila('f, as, tor an cx iiii|(li', at Atlii'i's. This I'oiitract is rc- 
 poatodly alluded tn \>\ wiitn-. An 1 in the I'aiidrcts, the 
 liki' contract is sU|i|ti»srd to Ic icd ncd \<> in ctiMain 
 passages, liiit it may !"• douidt'ul, whether the cDntract 
 licrc spoken ot", is that ot" iiiii' modern hill ot" exchange. It 
 ma\' he said nioit! nearly to resemhle a contract for theex- 
 ohaiin'e of moneys in dill'erent ])laces, or a mandate to 
 advance iiinne\-, tn he repaid in another place. (Vrtaiii it 
 is, that the peculiar distinguishing ipiality of hill> of ex- 
 change in iiKMJern times, their iiegotiahle characer, does 
 not ap]iear to have heeii known to the ancients, or to have; 
 found its way into the general transactions of their 
 commercial intercourse. ' 
 
 Some uncertainty rests upon the ])oiiit when Hills ol" 
 Exchange were liist introijiiced into l^nglauil ; hut there 
 is reason to helieve, that they were there known a^ early 
 as A.I), lo()7; since i'ldward I. in that year ordert.'d certain 
 moneys, collected in l"]ngliiiiil for tlie l'o[te, not to he 
 remitted to him in coin or hullion, hut hy way of exchange: 
 jii'i' I'Kiiii i:<i iiihi I . ■' 
 
 tlu' atR'ii'iits ; and tlic piuc-isu in'iiml of their intiDiliiitioii i.s suiiicwliiit 
 cimtroVcrtiMl," Ainl in C/d'li/ mi lli'/.s a/ h'.rf/iint;ir, it i.s st.lted : "Ity till! 
 Jtunuiii liiw, a jit'i'iSdn Iciicliiig money to ,i ni(i\li:int who nuvig.ituil tho 
 sens, Wii.s nuclei' tiie neoe.snity of .semling one of liis sl.ives to rec^eive of his 
 debtor the sum li'ut, when the ilehtor arrived at his de.>tiii'il p Ml : wliicli 
 would certainly hase iieen iinneee.s.-saiy if eonnnerce, tiirougii the medium 
 of hills of exchange, liad been in use with them."' 
 
 * ■'•'/vri/ nil liills iij I'jxrlvlll'jr, S. (i, 
 
 '"1 \\\w^i\■:i i'liili rn. iOI'J. This form of e.\cliaiige was called -amA-o 
 comiiiiiiir (mutual exehange) an.l "was constiluted liy the several kings, 
 who, having received money in Hugl.ind would remit liy exeh.ingo the 
 like sums to lie paid in another kingilom, according to the regulation of 
 the above mentioned tallies:" lieawes, L(.c Mi iraturin, ."itiO. 
 
 When l.lll- 
 
 w 
 
 re 
 
 H^^^I 
 
 ill 
 
 Iro 
 
 IuimI 
 
 III 
 hi 
 
 II 
 III. 
 
 On- 
 
 A 
 
 I) 
 
 13117 
 
INTUdlU'f TIiiN To TNI'; 
 
 It, is statid ill ii law tuict lliul I'luinissory Nutts, |iii\;ililr 
 
 tn lirnirl'. Ol' to .1 lll.'lll Illnl Ilis MSsii'llS. WtTi' klliiW 11 ill till* 
 tilllr "I' hMwiinl l\'. '• linli'rd Ms fill'K' as lllr stilhltr ul' .*{ 
 
 / I. i:ca Ilich. ||.,.,:j( l:{7!(), I'.ilUof Kx,.l,i,i 
 
 ILfi' W rfi' rt'lnii i| I 1 ;iN \r 
 
 ti'i's III' cxflwuint' ihfhri ill c/iii iii/r); n}u\ tlir licLfi' jMiijilf (»1 
 
 th.' k 
 
 mL;tlnlil WtTc lU'dliihlli'ii, WltlKMlt llic klll''s hrciisi 
 
 11(1111 M'tnliiii;- Lfiijil, sil\ fr. or <)tln'i' trriisuri', out, of tlic n-uliii 
 liy Midi I'/hris, tor tlir liciiclit, ol iilii-ns irsiiliiiM' in rnicicin 
 Cnuiitrics. i!ii( tlic Li'i'iicial ns'' of Midi Irttclsof (■xciiaii!;!' 
 must lia\(' liiTii liiniti (|. .Xci'orijini;' to Mr. .Iii>i i-f St -rv. 
 
 till' iiit loiliiftioii am 
 
 1 ll'-c of iiill> of t'Xclialr'r ill !• 
 
 ii'l II 111 
 
 t lilnl Oil 
 
 I lin'tiii. 111' 
 lii'rrliiiiit>i 
 
 A. ii. nil.; 
 
 (■-iiriiMis 
 <Mliiiiii;i . 
 
 I.iiw iiiriiiiiHt 
 111 V r\ 
 
 • liiinci'. 
 
 iis iiiiji'iil it \va> i'\ t'i\ u iirrr r\>\\ '■ M'l'iiis to ;ia\r liirii 
 foiimli'il oil till' iiific |ii!icl ici' of iiii'icliaiits, aiiil uraihially 
 to lia\i' ai'i|uiix'il the foici of ciLstoiu." 
 
 Willi till' i|r\ i'|o|iliii'llt of I'Jinli-^Ji ( 'oIllliliTCi', till' Usr of 
 tlirsL' iiio.'^t coiiMiiii'iii ih^t iiiiiH'iiK of (•oiiiiini rial liaHii! 
 M'oiilil iiccrssaiil y iiicirasr; yd, until aiioiil tln' iri'^ii of 
 Kli/alii ill (l(i()2^,~ till' piacl ici' of inakiii'^' llii--i' MIU iii'l;o- 
 tiiii'li' iiy iiiilorscinciit, liail iio'l liccn L^^nirralU- kiMun; ami 
 till' lailii r liill> air foiiml lo lia\i' in cm mkhIi' jiavaMr to a 
 man anil liis as.sinns, tlioii^li in miiih' iiistaiKo to licu'ri'. 
 
 Till' raiisi'^ of lliis uaiil of Uvi' an- \ar'oii-^. I'l ioi to tin' 
 itIl;!! of Jlt'iii'v \ II.. u>iiriou> li'inlri.--, wlio ilcsiicil lo taki' 
 iiioir intfii'^t tlian llir law allownl. n i|ninil tlir nniiliants 
 wlio liail to proriiir loans from I In in. lo ilo mi t liioii^li Mils 
 Callnl i-iiiiilnn .•^tiru ({\r\ ('.\rliail'.^r . or m in III fill /I II) 
 
 (lirtilioiis I'xcliaiij^i'j, liy wliicli r.\tra cliartics. iiihIi'I' tlir 
 pi'i'triii'i' of ('Xcliai\L;(' ami n'-t'.\rliaiii;r, were r.xactfil. 
 
 'I'lifsr two last UH'tlioils of raising- iiioiiry from tln'iicci's- 
 sitioiis, wiTc proliiliitctl liyaii Act of I'ailiainrnt in l4N7.1iy 
 .'> II. nrv \'I I.,c'. '»: l.iut on account of the liaM' moiicx s coiiu'il 
 
 ■ •■SiR'iinii.'n (if a IHgi'st ut tlic l.iw ut I'.ill.s of l''\rli;uiyi', ' citnl liy 
 Coi'kliuni, ('. .1., ill (•'iiiiiliriii v. Itnlinrlx, I,. 11. 1(1 \\\, ',\\~. 
 
 " 'I'lu' lirst ca.-ii' nil liill.s of cxt'iiiiiiut' (a fuici^ii iiill) to lie t'luiiiil in tlic 
 law ropoita is Muiiln v. liviiii i^\\ Kliz. lliOli), Cro. Jiic. 0. 
 
iri'i', 
 
 till' 
 
 I tilKO 
 
 liinlits 
 
 ill ll lO 
 
 ■V tlic 
 
 IICCOS- 
 
 ksT.l.v 
 
 111 tlio 
 
 i 
 
 I, AW nr nil. IS itV i:X« II.WiiK. 
 
 liv l'iiii\ N'lll.it till' >.i.'i.'i' 111" |ii)iilui;ii(', t'xcliJiiiLC"'-^ \\«'r«' 
 disci III tiiiui-' I a III ll lie Jil'i 111 •■>.•! ill |iri'ssuri's jiiid aluix's In riiim- 
 aiiiiiii riiii'iil ill llh' iriuii <•! Ivlwai'l \ I., wliifli iMTasiuMt'il 
 all i'\rliaii;;fs In lir |iii ihi I'ilfil lnr a ■.Imil tiliir; l.;i; this 
 lii'iii'^ Iniiihl iiI'Liivjit iiin.iiN fiiii'iict' anil ilt'triiiii-nt tn tifulc, 
 it was a^aiii ir^tmiil ; llinii'^li aliimst i|iiitf iic^^dfct''.!, and 
 tin- illr'^al part nt* it was (■(•iinivrd at iliiriii'4 the siicci'i'diiiL? 
 reii;M.^ 
 
 lull 
 
 IHolllliltJiill. 
 
 A. I', mij. 
 
 Aiiotlirr caiisi' may lie said In liavr i'\i-.trd in I'laiici', ki 
 wilt';'!' tlicir was an ( Mdiiiaiici' nf Lnuis X I. i IMii' i w hicli 
 pt'iMiiittrd jii'rsuii> III' all iiatiuiis to ;^i\ r, takr, and nniil 
 tlii'ir iihmm'V 1i\ ItilU uj' l'!\rliaii'^i'. in tin- llll-^illl■>'■ ot' 
 
 llli'l('li,llidi/.r, III tir tVulii utlii'l' •uUIlt li<'S, t ,ri-( i>f I In iiiilcnt of 
 J'Jili/lii ml. 
 
 liUt aliHliI till' (•iililliirliriiiiilit iif till- M'Vi'lltcrlllll ri'll- llilh |'ii> >''!« 
 
 liii\ ill'' |iiarticT of iiiakiii'4 MIU iiayaMr to urdiT. look 
 
 it> risr. Soiiir writi'i'v mi iiilU of rxrlian^i' statf lliat llio 
 
 tirsl known inriition of tlir indor-i'iiirnt of tlir-M' in^lrii- 
 
 iiimts ocriirs in l(i()7. ()tliir> lia\c assi;,qird it to a jatrr a. n inor. 
 
 date, iiaiiH'ly 1020. I'Vom it-^ olisioiis c'iin\ riiinici' in tin- .<. n. lojn. 
 
 transl'ri' of liills, this |ir,K't icr sjn-i'dily caiiic into m-iifi-al 
 
 u 
 
 n.'i'ci\rd tilt' sanction ol' tlir ('oiirts. At the tir>t tlif use 
 
 SI.' ; and, a> part ol' tlif ^I'lH-ial custom ol' iiii'rcliaiit> 
 
 ot" liiMs ol" rXcliatlLfC si'i'liis to h;i\i' lirrll I'onlilli'd to lorri^-n 
 
 hills lirtwri'ii KiiLjIish aiid I'oi'i'iLrn iiicvcliants. it was nxt'ii'L-ii t 
 
 ilaml ami 
 
 afterwards "■xtcndrd to domrstii- iiills hrtwri'ii tradcis, and {'>y>'.:i< imii 
 iiiially to hills of all )itrsoii>, whrthiT t ladfis or not . '■' 
 
 111 till' nii'aiitinir, I'lomi^-'orv Notes had also conn- inl 
 
 o iiri;,'iii of 
 |iniiiiis!iory 
 
 use, ditreiini;- hiMriii Iroiii Hills of Exchange in that they nufs. 
 were not drawn upon a third party, lint eontaiiird a simple 
 promise to pav hy the maker, restinif, therefore, upon the 
 security of the maker alone. They were at liist made 
 payahle to hearer : hut when the practice of making hills 
 
 * Ik'iiwus, Li.r Ml liitfurui, 5(il. 
 » Ch'Uty on BUU, Stli eil., p. 13. 
 
"H 
 
 « 
 
 INTUODICIKIN To I UK 
 
 'rriiii.'-riTiiiii 
 
 iiii'iii 
 
 Oriiiin of 
 Imiikini;. 
 
 <i|" cxclian^c pfiyalilc to oi'ilrr, and iiiakim,' tlniii traiis- 
 IV'iralilt^ liv in<l()i's('iiiciit. lia<l diici' Imcohh' cstalilislicd, tlio 
 pi'afticc (if inakiiii;' [nomissoiy iiotts payalilc to (irdcr, ami 
 of tinii'-rcriiii^' tln'iii ly iiidoiscMiiciit. as liad liccii done 
 with liill^ of ('xelian<ft'. spccdiiv jXTvailfd. And for sonic 
 years tlic ('oints of law, aftci' some coiiHict of <]ei-ision, at 
 last acted npiii tlie usace of mci'cliaiits with reference to 
 prond-soi'v notes, as tliey liad jiicxioiisly done with refer- 
 ence to hills ot exchani;i'. 
 
 Tiie practice of drawiiiL;' che(|nes may he said to liavo 
 orioinateil with the London ( Jolil-miths, who were tlie 
 first lMiL:lish hankers. Prior to the middle (jf the 17th 
 century, their trade was I'cstricteil to the imi-chase an<l sale 
 of f'ureiyn coin hut thev then (>xteiided it the holdini:^ and 
 lendinii' (jf mor.ev. Up to that time, the nurchajits of 
 London had heen accustonu d to deposit theii- money for safe 
 keopini;' ii; the Mint : hut <,'liarles I., in l(i4(), took jiossos- 
 sion of .C:i()(),0O() thus lodged, which at once put a stop to 
 the pra.^tice. The (loldsmiths heing then tlie onlj* trader.*, 
 in gold and silver, and having strong boxes, hecame the 
 custodians of money, and ultimately extended their busi- 
 ness as borrowers and h'nders on securities. The deposited 
 moneys were lepaid by cash notes (jr as their customers 
 ivijuired ; and wdien the customer wi.slied to make a ]>ay- 
 ment to another, he would write a note to his g()lilsmitli, or 
 l)jriker, shnply re([uesting him to pay the amount re(|uired 
 to the person name(l as tie: bearer of the note. This 
 new business of the goldsmith gave ri.se to a novel form of 
 meiCantile paper; and these "cash notes," oi' notes of recpiest 
 ooidsiniiiis soon became current, and •were for many years known as 
 "goldsmith's notes;" and although, as in tlie case of prom- 
 issory notes, they were at first held to be non-negotiable 
 (Niclio/i^on V. SeJipr'ni', 1 Ld. Ka}'m. 18b), they s])eedily 
 became negotiable as ciirrent mercantile securities, or in- 
 land lulls, or "ca.sh notes,"' but subject to the same conditions 
 as to pi'ompt presentation for payment, as ordinary bills of 
 
 notefi. 
 
LAW OF lilLLS OF FXCHANGK. 
 
 
 
 busi- 
 )()sit('(l 
 :()iiicrs 
 I jtay- 
 itl). or 
 [uiri'd 
 
 This 
 
 )l'lil of 
 t'i[Ucst 
 WIl its 
 
 ])i'oin- 
 )ti!il.le 
 iee<lily 
 cr ii\- 
 litioiis 
 nils of 
 
 ■il 
 
 oxchanno payable on di'maiul (Moore v. Warren, 1 Stra. 
 4l."»l. These j4-()l(lsmith's or ca^-h notes nre saiil to have 
 lieen tlie oi-in-in of tin- nioileni " cluMjue," an instnnuent ^''"'i'"' 
 wliich in leL,'al laiii,nia,u(^ is an inland l»ill of oxcliange 
 drawn on a banker, |iayal)lo on demand to tlie bearer, or 
 to the order of a. person n lined. Tlie che([ne on a bank is 
 therefor*' sultject in e-eneial to the rules wldeli re^'ulate 
 tlie rii^ht and liabilities of ]iarties to bills of e.\chani4-e: 
 but it is also subject to certain nsaLj,'es of banks peculiar to 
 chctpie^, which have s])ruiii;- np and been r"ct)ifnized in 
 lei^'i;' dei'isions. 
 
 'file J.i.r Mrrcdforitt, or wi w-inercliant, is sonielinies (nijii! ..f 
 spoken of as a lixed body of law, fornlin^• part ot the com- iiMr.iwnt. 
 nion law, and as if i( were eo'n'al with it. l>ut as a 
 matter (tf let;al history, tliis \iew is altogether incorrect. 
 The law-merchant thus spoken of with rt;i"erenee to bills 
 of cxchanee and other n(\i;'otiai)le securities, thoueli form- 
 in;4 pail of the L;eniral Ixjdy of the h.r iiirrcohirni, is of 
 comparatively recent origin. It is neither more nor less u.:,^',. ,,f 
 than the usages of merchants and bunkers in the ditfereiit raVili.'.'i'hy 
 departments of trade, ratifieil by the decisions of t'ourts of 
 Law, which, ujioii such usages of merchants beiug {iroveil 
 before them, have adopte ' them and declared them to lie 
 st.'ttled law, with a view' to the interests of trade and the 
 ])ublic convenience. In thus legalizing nic'i'cantile usage, the 
 ( '(jurts have proceeded on the well-known ]irincij)le of law 
 that, with ref'jrence to transactions in the dilfereiit depart- 
 ments of trade, it may be assunie(| that the partie-- lia\c 
 • lealt with one another on tlu^ footing of some custom or 
 usage, |)revailing generally in that particular department. 
 I'>v this in'ocess, what before was usa"'(! onlv, unsanctioned .^I'l -" 
 liv IciJ'al decision, has become en"raftt i upon, or inror- '":" 'i'- 
 
 ^ ^ ■-'1 r..|iiliioii law 
 
 porated into, the common law, and may thus lie said to 
 form jiart of it. I " When a general usage has been judici- 
 ally ascertained and established," says Lonl ( ampbell, 'it 
 
 ' Per Cdckluirn, C'.J., in (lo<>du:ni v. Huhartt, L. It. 10 lv\. ;{4(), 
 
10 
 
 i\i i;(»i)r("ri<tN" 'I'o the 
 
 Cu>liin of 
 
 muileni 
 
 buuki'i'-i. 
 
 Moili'i II 
 
 ini'i'CMiit. 
 
 usage. 
 
 ^(•{■l)lll^-^ ;i ]•; it Ml' the l;i w-iiicreliiint, wliich tliu ( jdii ts of 
 ju>tif(.' arc lioutnl to know aiiil i't'co<fnize."2 
 
 Tlir uiii\('i'salit_v i>\' a iisan'c vuluntaiily adopted lietwccn 
 1)11 Vers and srUo's, is conclusive proof ot" its i)ein^' in accord- 
 ance villi public coiu'eiuence. An illnstrutioii of the elH- 
 cacy of usa^■e i.s to lie foimd in the modern English hankini^ 
 system. It is a matter of history that, with the exception 
 of tile i>anlc of iMiLilaud, the system of bankinii' has nnih-r- 
 iTone an i-ntire cliaiiue. FoiMnerlv tlie braiker issued his own 
 notes in return for tlie money of tlie customer deposited 
 with hini. Xow the customei" is L;i\en credit in -iccount, 
 and may di-;iw u])on the baidc, by wliat is now calleil a 
 chei|Ue. payabK' to bearer or u'der. \"pon this state of 
 things the genrral coui.se of dealing between banks and 
 tlieir custonier.s lia.s ingrafted nsages previously unknown ; 
 and till --I' iiy tli(} decisions oi" the Courts have lieconie fixecl 
 law. 'finis while an ordinary drawee of a bill of exchanire, 
 although in possession of the funils of the drawer, is not 
 bound to acc'pt, unless by his own agreement or consent, 
 the bank, if it has funds oj' the drawer, is bound to 
 ])ay cash on presentation of a customer's cheque, ]iayable on 
 demand. f]\en the admission of funds is not sutlicient to 
 bind an ordinary drawee, while it is sufHcient with a b:nik ; 
 and money depositeil with a bank is not only money lent, 
 but the bank is bound to I'cpay it, when called for liy 
 the chi'ipie or dvaft of its customer. Besides tliis pe- 
 culiai- custom, other customs and usages have grown up 
 ln'tween banks and iheir customers, and between banks 
 themselves, by whicli they liecome boinid, and to which the 
 Courts have given the .sanction of law. Bills of lading 
 may also be referred to as an instance of how geneial 
 mercantile u.sage may give effect to a writing which, with- 
 out it, would not liave hail that effect at common law. It 
 is I'roiii mercantile usage, as jjroved in evidence, and 
 ratified by Jtidicial decision, that the right to pass the 
 
 - Bniiiildu V. Bunnit. \'l C. & F. SOo. 
 
 % 
 
 
LAW ol" i'.II.I.N OF KXCHANGi:. 
 
 11 
 
 I'lal 
 
 vith- 
 
 It 
 
 and 
 
 the 
 
 property in j^'OOlIs hy tin' !i».iu-niin'iit of I'ills of liuliu'j,- is 
 (.lt'ii\('(l. -5 
 
 'I'hc liUt(ji y of till' Lx Mirnitiir'ni also illustratrs tlio J'i|'J',';;,^[^ "^ 
 co^^l•ollin,^• (.■Meet of incirniiti!- i.>a-v i!i tlic asNi-ninnit of ';]X'"L 
 liill> aiiil iintt;s from otu' [ici'^uii to uiiotlii'i'. In tlif rarly '"'""'• 
 (la\s of ihr .•oiiiinnii law, ^I'l'at iuil^cs (Icclaii'il that, tliu 
 as,>i'^tiiii' iii or traii>ffi' <<t r/msrs /// (h-liDii \\n< iir.lawiul, 
 because tliey "wmuIo lie the oeeasimi of mult iply iiiu- cou- 
 teiitions iiiiil suits, and hi' t^i'eat opiires-idn.-, df the |ie(i[i|f,' 
 (|l> y\). il. 4.S); and they intenlieteil such as>i^iimenis as 
 iiaxin:;- a taint of mainteiianee. ihii piii>r to sueh deelara- 
 tiou (»f the foiniuon law, meriliant- had e^iahli-sjied the 
 n>aLi'e of ! ransfei riui:' hills of '■xelian;_;e (which were al^o 
 c/insi-s III iirtiDii), fioni hand to hand liy deli\ iiy. oi' hy 
 the simiije wi'itiiiL;' of a name on the hill, whieh as>i:^iicil 
 at on(H' the fii^lit of aetion, ami ^ave an unwi itlen eonttaet 
 of izuai'antee to tin.' hole lei- of the hill, in silent disi e',:atd of 
 hotli the' judieial ileclaration of the common i;iw, and the 
 li Lii^lativi' prohihiiion of the Statute of b'rands. The rights 
 of [ti'dperty ;ind the contract liahiiitics thus estahlishcil hy 
 the custom of merchant^, re.Nprctin^' this clas>, of f!i,,.sf.-< in 
 (icl inn . iu\i\ tile necessity of I'eeo^uizinn' hill> and notes as 
 pari of the negotiable currency of the community, >ilently 
 iueoi poi'ate<l these irsau'es and customs into the connnon 
 law, .1-. |i;irt of the /.'■,/• Mr rmtnr'iK . and cominlled X\u\ 
 har>line-> of t he common law to '/wc \va\' to the more coui- 
 inon-siiisi- Usages of merchants, iliu it was not until \>u'l. 
 that many of t!ie rules ol the /,<■,;■ .1/. fiiilnmi w rrr cxtendeil 
 
 to othej- cla-SCS oi I'Iri.-tcs i ,i iir/ii,,,^ \ ,y the ( (ntal'io Act, ."i." 
 
 \'ict(iria. chapter 'r2. (now K. S (.). [>>>>7, c. I'l'l s.>. (l-j:;.) 
 
 Another illnstration of how uieix-autile n-.a'4e has ilis- rnviici;.' nf 
 
 111 -1 . ''"'^ ■'""' 
 
 plticcd tlie common law, ma\ lie >hown iii the iiiaetiee <jt imus ;l^. 
 
 ,1 ,1 1 ■ 1 1 • I I " ' • >|M(MlllUiS, 
 
 tlie courts, hy which a luii oi e.\chanL;-e or jU'omisxn-v- note, 
 though chisseil by the common law as a "simple contract,' 
 
 " Lii-Uiarroir v, J/,/soi/, '2 Ivist 7n. 
 
12 
 
 INTRODUCTION TO THK 
 
 bears on its face tlio pi'oof of its vilue in money. No such 
 priviley;e is jillowtMl to ordinary simpler contracts, for the 
 money or other valuable consideration given for them is 
 not presumed, but must be proved. But the specialty, or 
 more formal, contracts under seal, carry with them the 
 internal evidence (jf theii- being made for valuable consider- 
 ation. Thus by tlie controlling force of the usage of mer- 
 chants, the legal privilege of specialty contracts has been 
 conceded by the Courts to bills and notes, for the 1 tetter 
 facilities of trade and finance, and for the further reason 
 that thes(> negotialtle securities liave become part of the 
 recogni/ed currcnc}- of the country in commercial and finan- 
 cial ti'ansactions. » 
 
 mwu'o'naw. '^'^^•'^ process of law-making has been termed legislation 
 iiiakiiis,'. i^y tlie judiciary mode, to distinguish it from the ordinary 
 legislative process by which the general laws of a nation 
 are enacted. And as tins judicial law has been, from 
 time to time, hM'ined by judges under the eyes of the 
 sovereign legislature, or has been acquiesced in by its 
 recognition in various statutes, it thereby becomes law by 
 the acquiescence and authority of the sovereign government. 
 
 Austin on 
 customary 
 iuw. 
 
 .Ttulic'iary 
 Iuw. 
 
 Referring to the mode by which a law is derived from 
 custom or usage, Austin says : " Independently of the 
 position or establishment which it may receive from the 
 sovereign, the rule which a custom implies, (or in the ob- 
 servance of which a custom consists), derives the whole 
 of its obligatoi'v force from these concurring sentiments, 
 whi(.'h are styled Public Opinion. Independently of the 
 position or establishment which it niay receive from the 
 sovereign, it is merely a rule morally sanctioned, or a rule 
 of positive or actual morality. It is properly jus morihus 
 const it lit am; its only source, or its authors, ai-e those who 
 observe it spontaneously, or without compulsion by the 
 state." 
 
 " Law, styled customary then, is not to be considered a 
 distinct kind of law. It is nothing but judiciary law 
 
 
LAW Of JilLI.S OF EXCHANGE. 
 
 13 
 
 No such 
 f, for tlie 
 • tlicin is 
 cialty, or 
 tlit'iu the 
 cousidcr- 
 
 ot" iner- 
 has bucn 
 le better 
 ii' reason 
 •t of tlie 
 lid tinan- 
 
 ■gishition 
 ordinary 
 a nation 
 en, t'roni 
 !S of the 
 by its 
 law by 
 rniHent. 
 
 ed from 
 
 oi' the 
 •0111 the 
 the ob- 
 
 whole 
 tiiuents, 
 
 of the 
 0111 the 
 
 a rule 
 no I' I bus 
 jse who 
 
 by the 
 
 lered a 
 ly law 
 
 founded on an ant<n'ior custom. As merely customary law 
 (in the loose and iiiipi(jper sense of the term 'law"), or 
 rather as merely positive morality, it comes immctliately 
 from the subject members of the community, by whom it 
 w^'is observed .spontaneously, or witlunit compulsion by the 
 state. But as positive law, it comes immediately from the 
 SDveix'i^n, throucjh subordinate iud<{es, who transmute the 
 moral and imperfect custom into lejjjaland perfect rules."-* 
 
 It was not without a strutrclo that the meroliants 
 succcedrd in comnellin<j' the Jud^'es to recotrnize these cus- 
 toiiis and usages. Lord Molt, V. J., was, as his reporter 
 states, tixis viribus, against some customs of merchants 
 which he said '" proceodeu from (jbstinancy and opinioii- 
 ativness." And in refusiuLT to hold that a promissory iKjte 
 payable to bearer was valid, lie said: "It amounted to setting- 
 up a new specialty, unknown to the C(jmnion law, ami in- 
 vented in Lombard street, which attempted in these matters 
 of Itills of exchano-e to irivc laws to Westminster Hal!."' 
 And in another cas(> he denounced, " tlu' noise an<l cry that 
 such is the usngt.' of Lombard street, as if a contrary ()[)inion 
 Would liiow up Lombard street.""' Tht' matter was 
 finally settled by Parliament, in favor of the contention of 
 thr merchants, by the Act o c^' 4 Anne, c. D. 
 
 But the merchants ultimately became the victors in the 
 struggle to engraft their usag(^s and customs on the com- 
 mon law, mainly throii^-h the <>ieat assistance of Lord 
 Maiislield. who has been justly styled " the founder of the 
 comnieieial law of this eountry,"' (2 Last 7*5) : and judges 
 have had to concede that the custom of nieichaiits is now 
 part of the common law, and that the couits will take 
 notice of it ex ojficio. 
 
 ' 2 Aii.stiu's Juri.spnidoiico, "m.S iin<l ')5't. On a juior ]>aj,'(.' (p. ')4S), lie 
 ili.stiiiguislio.s these processes ;is " liiw estahlisluil in the h'ji.^alirp 
 manner,"' ami " law introduced and ol)taining iJi'iqiK-hi" or "law estab- 
 lislicd or introduced in the wny of jitilicidl legislation." But elsewhere he 
 combats the use ot t!ie term "judge-made law." 
 
 •■' See '2 Lord Raymond's Reports pp. 758 and 930. 
 
 Conti'st 
 lictwwn the 
 liicrchaiitri 
 
 Cuurt,". 
 
14 
 
 IN'TUODUCTION To THE 
 
 Ktiirlish, or 
 banking, 
 tluuiN . 
 
 French, or 
 mercantile, 
 theory. 
 
 Knulish, !i 
 tlcxililu 
 
 system. 
 
 Kicucli, a 
 
 triiiJ« 
 
 .svsli'in. 
 
 French and 
 Entrlish 
 
 systems 
 compared. 
 
 Tlio results of thi.s formation of the law by cu.stom are in- 
 stiuctive;f()r this law of tra.lc usage and custom now controls 
 all noyutiable instruments alike, whether they are the con- 
 tracts of traders or non-traders. The Engli.sh usage may 1)0 
 called the Blinking or Currency theory, as opposed to the 
 French or Mercantile theory. A Bill of Exchange in it.s 
 origin was an instrument by which a trade <lebt, due in one 
 place, was transferred to another. It merely avoided the 
 nece.ssit}"^ of transmitting cash from place t(j place. This 
 theory the French law steadily keeps in view. In England, 
 bills have developed into a perfectly flexible paper 
 currenc}'. In France, a bill represents a trade transaction; 
 in Eno'land it is niei'elv an instrument of credit. English 
 law gives full play to the system of acconuuodation paper; 
 French law endeavors to stamp it out. A comparison of 
 some of the main points of divergence between English 
 and French law will show how these two theories are worked 
 out. In England it is no longer nece.ssai'y to express on a 
 bill that value has been given, for the law raises a pre- 
 sumption to that effect. In France the nature of the value 
 must be expressed, and a false statement of value avoids 
 the bill in the hands of all parties with notice. In England 
 a bill may now be drawn and payable in the same place 
 (formerly it was otherwise, see the definition of bill in 
 Comyn's Digest). In France the place where a bill is 
 drawn must Ix o far distant from the place where it is 
 payable, that there may be a possible rate of exchange 
 between the two. A false statement of places, so as to 
 evade this rule, avoids the bill in the hands of a holder 
 with notice. As French lawyers put it, a bill of exchange 
 nece.s.sarily presupposes a contract of exchange. In England 
 since 17G5, a bill may be drawn payable to bearei', though 
 formerly it was otherwise. In France it must be payuble 
 to order; if it were not so, it is clear that the rule requir- 
 ing the consideration to be expressed would be an absurdity. 
 In England a bill originally payable to order, becomes 
 payable to bearer when indorsed in blank. In France an 
 
LAW OF BILLS OF EXCHANGE. 
 
 15 
 
 place 
 )ill in 
 nil is 
 it is 
 laiige 
 
 as to 
 loldcr 
 lano-e 
 
 land 
 
 indorsement in blank merely operates as a procuration. An 
 inilorseineiit to operate as a net,'()tiati(jn nmst be an indorse- 
 iiu'nt to ordtM', aiid muyt state the ecnisideration ; in short, 
 it niusl conform to the conditions of an orii^inal draft. In 
 l'ji<,dand if a liill be refused aoeeptanee, a I'iglit of action at 
 once accrues to the holder. This is a lot^ical consequence 
 of the currency theory. In France no cause of action 
 aiises uidess the bill is again dishonored at maturity ; the 
 holder in the meantime is only entitled to demand security 
 from the drawer and indorsers. In England a sharp dis- 
 tinction is drawn between current and overdue bills. In 
 Fiance no such distinction is drawn. In England no pro- 
 test is required in case of an inland bill, notice of dishonor 
 alone being sutiicient. In France every dishonored bill 
 must V»e protested. Grave doubts m.ay exist as to whether 
 the English or the French .system is the soundest and 
 most Ijeneticial to the mei'cantile ccunnnmit}' ; but this is a 
 problem which is beyond the province of a lawyer to 
 attenq^t to solve. ^ The French system, in great measure, 
 pervades many of the other continental systems. 
 
 A more extended view of the rules of the law-ni.erchant 
 respecting Bills of Exchange is contained in the Report of 
 the International Conunission, appointed at the Hague 
 in LS75, on the assimilation of the laws and pi-actices of 
 nations I'especting Bills of Exchange. The Conunission, 
 which was conq)osed of the representatives fi'om several 
 continental nations, classified the rules of the European 
 and American .systems under the following heads : 
 
 1. Capacity of parties to a Bill of Exchan(jc : 
 
 DisahiUty of minors. All the different systems concur 
 in principle; but the period of majority differs in different 
 States. The tendency of nearly all the present systems 
 being to adopt the age of twenty-one years as the period 
 of majority. The Spanish law, however, still maintains 
 the period of twenty-five years. 
 
 * Chalmers, Dhjest of the Law of Bills of E.rchaniji', p. xlv. 
 
 K' port, of I n- 
 
 torii:<ti<>nul 
 
 Cnmiiii.'-.si(j|i. 
 
 A D 18T5. 
 
 (mi ai:ity of 
 
1(5 
 
 Form of !» 
 bill of 
 
 CoDPldlTil- 
 
 tiim or a 
 bill. 
 
 INTRODrcTloN TO TIIH 
 
 A liability incurred Ij}' an infant is, under nearly all the 
 systems, voidable, not void. 
 
 Married women conic under the same disabilities as 
 infants, namely, that the contract on their part is voidable ; 
 but the French Coile do Connnci'ce, Art. 113; the Italian 
 Code, Art. 1!)!) ; and the Spanish Code, Art. 434, enqjowcr 
 women to contract, but not by means of a bill of exchange. 
 
 The laws of Enirland and of the United States, con- 
 cur in rendeiing the contract as .against a wf)man abso- 
 lutely void. (Ihit these laws have been varied since the 
 abovo was written.) 
 
 2. The fiu'in of ti Jiill af Kcchanr/c : 
 
 Tlu! law of the German ]<]mpire, Art. 4, s. 1 ; the laws of 
 Hungary, Austria, and Russia; the Code of Zurich; and 
 the laws of Sweden and Norway and Denmark, make it 
 obligatory to insert on the face of the instrument the 
 words Bill of Exc/iuin/r: "Wcchsel ; LcHre da Clutiijje." 
 
 The Code dc (Commerce (France), jr.id the systems based 
 upon the same; the IJelgian law, liOth May, 1>S72 ; the 
 laws of England, and of the United States, do not make 
 this ol)ligatory. 
 
 3. The coiisidcrallon or raJvc fni' a BUI (Vah'ur) : 
 
 The codes of Gernuiny, Austria, Hungary, Russia, 
 Belgium, Art 1, 1<S72 ; the laws of England and the 
 United States; those of Russia, Poland, and HiMimark, do 
 not reijuire that the woi'd " Value" (I'ct/rftr), or an}' e(juiva- 
 lent expression, should be stated on the face of the bill 
 itself, nor in any subsequent indorsement. 
 
 The Flench ('ode de Commerce, Art. 110 on the con- 
 trary' ; those of Spain, Art. 42!) ; Italy, Art. 1!)0 ; Portugal, 
 Art. 321 ; Brazil, Art. 354 ; and the systems based on these 
 codes, render it obligatory that the term Vidciir re^'ac, be 
 stated. 
 
 I 
 
 M 
 
I AW (JF KILLS OF EXCHANGE. 
 
 17 
 
 all t: 
 
 le 
 
 I 
 
 4. Hills jxiijdiilr to hearer : 
 
 The r.avvs (.f Ei.crjand, of the United States, and of f^'trrV,**-'* 
 Denmark, permit the issuing,' of a 1)111 of exclian^re payable 
 to lieai'er or ordei*. 
 
 The ( ieiiiian Law, Art. 7 ; the French Code de Commerce, 
 Art. Ilii; Cod. Com. Italy, Art. 198; C ul. Com. Spain, 
 Art. 4:5<S; the Commei'cial C(;de of Holland, Art. 102; 
 and till' llussian llules on I5ills of E.\chanj,'e, Art. '2[)7 , 
 I'lirliid the is^-uin^' of hills of exehaniie to hearer. 
 
 o. 1 ii(l(irseiiieiit of' Hills ill 1)1(1 nk: 
 
 The Cerman Law, Art. 12; the laws of Kno-land ; of XXir* 
 the United States; the Belnian Law; 2()th May, Ls72, '''"°''- 
 Art. 27; the Portguese Code, Aits. :>")4 and .'}.')(); that of 
 llimuarv; the Jlnssian Law; tin; Danish Law; and the 
 Au>trian Code, [icrnut indorsement in lihiidc. 
 
 Widlst the Italian Code, Art. 22:}; the Frmeh Code de 
 < 'uinnirrce. Art. I .■)7 : and tlie Spiinish ('ode -Art. 4^7, 
 jirohiliit Mich, L;i\ Imlj oidy a |)artial \ alidit y to siieli iiiiioi'se- 
 iiient, or e\en (a^ in Spanish (A)de) forliidiiing- reeoxcry. 
 
 (I. //m/((/ >■(';/((■/// (*/ crcnltu: litlls : 
 
 All the vaiious co(h's and laws irive to an indorsement in'inr^ci'nt 
 
 ■~ of overuiie 
 
 al'ter due date, the elfect of a simple cession ; that is, as ''•""• 
 an assignment with eipiities attaching. 
 
 The (Jcrnian Law, Art. 1(!, makes this dist inetion, that, 
 where due protest has been made, the right to indorse as 
 betore ilue date, continues. 
 
 7. Due I),ile of Bill {I'kheance). 
 
 The Co le de Connnerce. (France), Ait. 12!); that of i^"" ^'^'t""*" 
 
 ^ ' - bill. 
 
 Spain, Alt. 4.")!); the laws of Fnglaml , of tlu^ rniled 
 States; the Lelgian law^ Art. 20; the Italian Code, Art. 
 2[(J; the Portuguese Code, Art. :i70 ; and the Hungarian 
 law, all allow the drawing of a l)ill at usance. 
 
18 
 
 INTHODL'CTKJN TO THE 
 
 Kiiys of 
 
 Copic'8. 
 
 Arci'ptance 
 uf bills. 
 
 Wliilst tlic ricrnian law, Art. 80; and tho Au.striaTi 
 law, lia\ e altolishetl all rul'erenct! to UHance. 
 
 S. Da lis of Grace. 
 
 Tiu' laws of all countries allow days of nruco, tlifM! 
 varying,' from throe to f(»urti.'L'ii days; wliilo asancea \iivy 
 from I'ourtuen days to three months. 
 
 The German law, Art. 33, has abolished days of grace. 
 
 !). Dtiplicates, Copies. 
 
 The (Jernian law, Art. 07; the French Code de Com- 
 merce. Art. 147 ; the lieloian law, Art. 57 ; the Italian 
 Code, Alt. 2',i'2, and the coiles based on these laws, do not 
 re([uire the annullinjr clause to be inserted on the face of 
 the bill of exchange. 
 
 Whilst the laws of England, and those of the United 
 States, do reijuire this. 
 
 10. Acceptance of Bills: 
 
 What constitutes acceptance varies greatly in diHerent 
 countries. 
 
 The German law. Art. 21 ; the French Code, Ait. 122 ; 
 the Spanish Code. Art. 4GI ; the Portuguese Code, Art. 
 830 ; that of Brazil, Art. 894 ; the Belgian laws, Arts. 7 
 and 10 ; the laws of most of the Swiss Cantons ; and the 
 Dutch Code, require that the acceptance be expressed l»y 
 the word " Accepted," or some equivalent term. 
 
 The law of England (1 and 2 Geo. IV. c. 7«) formeidy 
 limited this to inland bills only. The United States' law 
 permits verbal acceptance, though a holder may insist on tho 
 acceptance being in writing; and wrongful retention for 
 ove rtwenty-four hours, by the law of Spain, and several of 
 the South American Codes, is deemed acceptance. 
 
 According to the Dani.sh and Swedish laws, retention 
 is construed to mean refusal. 
 
 
Austrian 
 
 1,.V\V OK lilLI.S OF EXf'IIAXCJK. 
 
 in 
 
 ace, tlio.M! 
 lices vary 
 
 of grace. 
 
 tie C(»in- 
 le Italian 
 
 kVS, <1() nut 
 
 111! face of 
 le United 
 
 (liflerenfc 
 
 Xvt. 122; 
 
 ode, Art. 
 , Arts. 7 
 and the 
 
 •essed \iy 
 
 ornierly 
 ates' law 
 ist on the 
 ntion for 
 everal of 
 
 retention 
 
 A? 
 
 il D I all una r for Kon-nco'iilojice : 
 
 'Hie Gernum law. Art. 2.J ; and the Austrian law; th(' |;;,^J'°°op!."' 
 
 ('ode do Cunnni'rce, (Fmnce), Art. 120; tlu- lalniun law, •" 
 
 Art. 10; the Italian Com. Code, Art, 207; the Spanish 
 Com. Code, Art. 4().") ; most of the Cantons of Switzerland; 
 ami most of the laws and codes of South America, retjuire 
 security to he given in case of dishonor lor non-accept- 
 ance 
 
 Whilst the laws of England, those of the United States 
 of America, those of Sweden and Denmark, the Hungarian 
 Code, the Finland Code, and some of the South American 
 States, give to the holder, on dishonor for non-acceptance, 
 an inunediate right of action for payment. 
 
 12. Not ice. of Dinhonur : 
 Notice to antecedent parties is reriuiretl, hoth on non- N"tiwpf 
 
 ' ' disnonor. 
 
 acceptance and non-payment, according to tlie laws of 
 England, the United States, Russia, Bolivia, anil Ihazil. 
 
 Whilst the Code Aq Connnerce (Fiance) Arts. 173 .and 
 175; the German law, Art. 4.5 ; the Spanish Code, Ait. 
 •")22 ; the Chilian, the Argentine, and the Italian Code, 
 recjuire protest. 
 
 The F'rench Code de Commerce requires that, within four- 
 te(!n days, and a furtlier period, according to the dlstmifid. 
 loci, after protest, proceedings be taken against antecedent 
 parties ; each successive indorser liaving the same period 
 of delay allowed lum. 
 
 The German law differs from the French law, and 
 adapts in part the rule of the Dutch an<l Portuguese 
 Codes, rendering notice necessary to protect any claim for 
 interest, re-exchange, and to protect against any claim for 
 damages ; it likewise limits the time within which proceed- 
 ings have to be instituted. 
 
 13. Limitation of act ion fi {Prescrvption) : 
 
 The law in regard to limitation of actions varies greath' statutes or 
 
 1 ■>>>., . ' Limitation. 
 
 in dinerent countries. 
 
u 
 
 20 INTItdDlf TI(»N TO TIIK 
 
 'I'lic (Jcnimn law proscribes .'J inontlis, (J montlis and IJ* 
 iiKjiitlis, accoi'(lin<,' to plnco ; Code (\o Coiniiicrcc ( Fnincu)» 
 Art. IM!), ') yinrs ; iJclnian C'oth', Art. 82, a 3 curs; Portu- 
 gUf.>-o, Art. .*l2n, and S|iaiii.sli Codes, Art. '^.■)7, 4 yoais ; 
 Italian ( 'ode, Ait. '2^'2, •') yuais ; Ccrniiui law, Art. 77, •*{ 
 ycais, ajj'ainst tlu- acceptor. 
 
 As against other pjirtios: The Dutch Code, Arts. 20G- 
 207, 10 ycai's ; Unn^aiy, 2 years; Kn^iand. <» }fars: I'nited 
 States, various peiiods. 
 
 ofmMrrrim'i!) Thus it appears that the laws of .several nations on the 
 .sulijeet of IJills of Exchange, agree in shewing that there 
 are g<'neral principles common to all conuiiorcial eonnnuni- 
 ties which constituti- an intiMnational code, upon which 
 the law oC hills ol' exchanue rests, and which has become a 
 ])art ot" the municipal jurispiudeiice of each nation. These 
 principles, having their origin in the custoni.s and practice 
 of mei'cantile exchanges, are deemed so proper in them- 
 .selves, as to be of universal obligation; and, in the absence 
 oi' any local statutal'le or positive regulations, to govern 
 cases allecting l)ills of exchange; while the general di'duc- 
 tions of the conniiou law, and the law of nations, as well as 
 those of the Roman Law, are often resorted to in order to 
 expound and enforce them. 
 
 UMiiircH. 
 
 liill.sof 
 I'xcliiiiii'o iiri! 
 
 It may, thei'cfore, be truly said that a Bill of Exchange 
 
 .•..Mi.op,,iiiuu \^ ^]^^^ j„„^t cosmopolitan of all contracts; and that the 
 
 law respecting negotiable instruments is in a great measure, 
 
 not the law oi a single country only, but of the whole 
 
 conunercial world." 
 
 I'liiicipips The International ConunLssion, before referred to, also 
 
 <>l iiitcMiia- 
 
 tioimuuje. rcconnneniled the adoption of the following rules or prin- 
 ciples for an international code goveniing bills of exchange, 
 which were approved by the Conference ot foreign repre- 
 sentatives at Bremen in 187G: — 
 
 ^ Per Story, J., in Sicl/t v. Tyson, IG IVters, (U. S.) 1. 
 
\..\\\ <>l' I'.IM.S OK r,\(ll.\N(iK. 
 
 21 
 
 (luc- 
 
 11 as 
 
 ur to 
 
 ), also 
 
 prill - 
 
 itinge, 
 
 ■ej)re- 
 
 1. That thr f ;ip!U'ity of a paity to coiitmct ini<ler a bill ^''t'-'-'y 
 of t'XcliaiiL;'' '^liiill lie L!:<'vui'n«'ii liy tlif cajMicity "»F the party 
 to ciitri' into ail olilii;i)'ion ii;ciu'i'ally. 
 
 ± That to coM^titutra hill of cxcliaii-'t' it shiill lir iiccos- Ti-i,...n 
 
 nary to insert on tin- lac f tin- iii>tniiiii'iit tlu wonls 
 
 " hill of cNchannc" 
 
 o. 'i'hat it shall not he (thli^^atoiy to insert on the laet' of ,.^,V'uh." 
 the instiMMiicnt or in an imlorscniont the ^(n-tls ''value 
 i'Oceive<l," nor to state the consideration. 
 
 4. That the einployiacnt of " ('sro/crs' ' shaJI lie aholisheij. """"■"• 
 
 ."). A hill of fxchanj,'e shall not he deeiiieil nenotiahle, ^'||'"' '"'•'" 
 unless re><tii('tetl in express words on the face of the 
 instrument, or in an iiidorseiiient. 
 
 lo 
 
 (J. That the makiiiL;' nf a hill <it' exchaniro or nrouiissorv imvuMh 
 note to lj(.'arer sliall not he allowed. 
 
 7. Thai the rule of law of di-ihi at at loci .shall not ariitlv i>i<!'intia 
 to bills ot'excliani,^'. 
 
 S. That a hillol'exuhan''0 be iie'^otiahle by blank indorse- nimik 
 
 *• iinliirs(<inent. 
 
 inent. 
 
 !). The indorsement of an overdue hill of exchan^'e which i>vii.iiitt)iii. 
 lias not been duly protested for dishonor tor non-payment, 
 shall convey to the hoMer a iiij;ht of recourse only a,L,'ainst 
 the acceptoi and indorseis subseipient to the date of 
 jtrotest. Where due protest has been made, the holder 
 shall only possess the rights of the last indorser ay;ainst 
 prior parties, subject to ei[uities. 
 
 10. 'i'hat tlu' acee])tanee of a bill of exchange must bi> A(vepiiiiu« 
 in writing, on the face of the l»ill itself The signature of 
 
 the party or ])artie,s upon whom it was diawn (without 
 additional words), shall constitute acceptance, if written on 
 the face of the hall. 
 
 11. The party upon whom a bill of exchange is drawn Mmitea 
 
 1 11 1 -ii 1 If 1 . 1 '• 1 Ac('f|)taiice. 
 
 .shall he permute I to accept tor ale.sssum than is expre.s.sed 
 on the bill of exchaiiire itself 
 
22 
 
 INTRODUCTION TO THE 
 
 Cancellation 
 fit rtpcept- 
 iiiiri-. 
 
 Days of" 
 
 ftrace. 
 
 Kecour,«i; 
 
 ai^ninst 
 
 iiidor^Lis. 
 
 I'rotests. 
 
 Dcflilllt nf 
 
 noiico of 
 tlishODor. 
 
 K.xtendiiij; 
 tiini' for 
 prdtrat. 
 
 Aiiiiulliiig 
 on ilupli- 
 Ciites. 
 
 Kiflht of 
 aition on 
 bill. 
 
 Oofiiiition of 
 " iinmussory 
 note.' 
 
 12. The cancellation of a written acceptance shall not bo 
 valid. 
 
 V-i. That no days of iiTace shall he allowed. 
 
 14. The party seeking recourse shall not be liniiteil to 
 the order of succession of indorsements, and he shall be 
 entitled to his election, at any time, against all :v any of 
 the ])arties to the VhII. 
 
 lo. Tiiat protest, or noting for protest, shall be necessary 
 to preserve the rig'it of recourse upon a bill of exchange 
 dishonored for non-.r-ceptnnce or for non-payment. 
 
 IC That default .A' notice of dishonor for non-acceptance 
 or non-payment, shall not entail on the holder, or other 
 parties to a bill of exchange, the loss of their right of 
 recourse for the amount stated on the face of the bill, but 
 the defaulting ])arty shall, nevertheless, be liable for any 
 damages consefpient upon such default. 
 
 17. The legal time required for protest shall be extended 
 in the case of rls iiKiJor, during the time of the cause of 
 intei'ruption, but shall not in any event exceed a short 
 period of time to be fixed by tlie Code. 
 
 15. That the aimulling clause on the face of a bill of 
 exchange shall not lie necessary in the ense of duplicates. 
 
 19. That the right of action on a liill of exchange shall 
 be allowed against all or any one or more of the parties to 
 a bill of exchange. 
 
 '20. That in the foregoing articles the expi'essiou 
 " promis.sory note,"' shall not apply to coupons, bankers' 
 che([ues, and other similar instruments, in those countries 
 where those instruments are classed as " promissory 
 notes." 
 
 The Conference also suggested that, in the event of a 
 universal code foi" bills of exchange coming into operation, 
 no special agreement between the jiartios to a bill of 
 exchange, or any custom, should exclude or limit the 
 opei'ation of the code. 
 
 M 
 
 m 
 
ill not be 
 
 mited to 
 
 sliall 1)0 
 
 ;v any of 
 
 lecessary 
 'xohancre 
 
 ceptance 
 or other 
 I'ig'ht of 
 bill, but 
 for any 
 
 ixtonded 
 
 cause of 
 
 a short 
 
 l.m of 
 plicatos. 
 ge shall 
 irtics to 
 
 ri'ssiou 
 )ankcrs' 
 untries 
 iiissory 
 
 it of a 
 'I'ation, 
 bill of 
 lit the 
 
 LAW (IF lUM.S OF FXIHAN<;K. 
 
 Mn' • ot the rec()ii\in('ii(lati<ins of this ( ^onfereiice have 
 since been incoiporatetl inti) the statutes passed b^- many 
 of the EriLclish-spcakinn' eDininunitit's, and many of them 
 Avill be found in the lu/w ('anadian Act. 
 
 Till' iK'cessitifs of trailf and commtjicc havr extended the 
 nee'otialile (pialities of bills and utAcs to other mei'cantile 
 securities, such as bills of lading, shi[)piny recipts and, 
 in a limited sense, to warehoiisu recei]»ts. Since IT^'SO,'^ 
 l»ills of lading have held to be traiisferabU' and negotiable 
 by the custom of merchants in this sense, that the indorsc- 
 /iient of tlieni transferreil the right of projierty in the 
 goods co\ei'ed by the bill: although subsei|Uently it was held 
 that the right of action, <x eotitrncl n ^ dicl not pass witl) 
 the right of jtroperty. But first in England (liS.')5), and 
 later ill Ontario (18()!)), this technical rendering of the law^ 
 was altered, and all the rights in the contract were made 
 similarly assignable by the statute, o-] Vic. c. l}),*iiow R. S. 
 <►. 1SS7. c. 122. 
 
 The shipping receipts given by railway companies, were 
 by a judicial decision in IN?!*, brought within the same 
 eategory as bills of lading, for the reason that " tht; ship 
 and the railway are alike the instrumentalities used for 
 the transport of goods.'"'' 
 
 Warehouse receipts are negotiable securities' authoiized 
 by the 15aiik Act, R. S. C. c. 120, and by the Ontario Act, 
 R. S. O. ISSJ, c. 122, and are also transferable by indorse- 
 ment. The indorsement may bt; in blank, as in the case 
 of bills of lading and other secvu'ities, ami is such a mode 
 of transfer as satisfies all the requirements of the Acts. '<' 
 
 'J'he bonds and debentures of corporations, were made 
 neg ialile in Ontario by the Act of 1N72, previously 
 referred to Cio Vic. c. 12, R. S. O. c. 1*^2, s. 0); so that a 
 
 ■'' See page 8, and Lkkharrnw v. Ma-i',ii, 2 East 70. 
 '■' I'er Mo.-i8, C. J., in Ash v. Onat WMirn R. Co., :i App. R. 4Sl. 
 ' " Bank- vfllamUlon v. Noijt, 9 Out. 11. IJ37. 
 
 23 
 
 Other iicff-i- 
 tiiiliU" si'cri- 
 
 F.ills of hid- 
 ing. 
 
 Sliii'i.ins; 
 
 rL'IC)|ltM 
 
 Wari'liduse 
 reei'ijits. 
 
24 
 
 THE (AW OF lill.LS OF KXt'IIAN(;i:, 
 
 lUnk 
 
 iluposit 
 loct'ipts. 
 
 Law-inakiiit» 
 by nier- 
 
 CcNliScHtinn 
 of the law. 
 
 transfer hy imlorsenicnt, if j)ayal)lo to order, or ]>y deli very, 
 if payalile to l)earer, vests an indefeasaltle title to such 
 bond or delientnre in the lioldei" thereof for the time bciii;,'. 
 
 Bank deposit receipts given hy bankers for money de- 
 posited, hut not sul)jeet to immediate demand, are api)ar- 
 ently piissing tln-ougli tlie same preliminary contest for 
 negotia))ility which ]>romissory notes and goldsmith's imtes 
 were sul)jected to during the last century. The decisions 
 in Canada, with one exception, have been adverse to their 
 negotiability ; althou<di the Judicial Committee of the Pi ivv 
 Council, in a case from Quebec, intimated that there was 
 high authority in favor of their being transferable by 
 indorsement, i 
 
 The history of the Law-Merchant may be cited as an 
 illusti'ation of the law-making power of purely democratic 
 communities of mei'chants, who, without the formalities of 
 rejxal summons or assent, without national le<jfislative func- 
 tions or authoiity, without parliamentary procedure or 
 debate, or even a delegated or municipal power, but ([iiHli- 
 fied by theii- financial skill and business experience, have, 
 nemiiw eoulriuHcente, established "usages and customs" 
 affecting the currency and credit securities of their sepan.te 
 nations, which Judges and Courts have been compelled to 
 recognize as being of e(iual authoi'ity with the common and 
 nuHiieipMl law of the nation ; and which sovereign legisla- 
 tures have accepted and clothed with statutory forces as 
 having the essential (puilities of wise and beneticent legis- 
 lation. 
 
 The codification of the law-merchant affecting Bills of 
 Exchange and Promissory Notes by the present Act, In'ings 
 the Canadian law into harmony with the laws of Great 
 Britain, India, and some of the other Colonies of the 
 Empire ; and also into harmony with the leading provi- 
 sions of many of th<> J^]uropean commercial codes. 
 
 liklmr V. Voyn\ I,. W. 5 1'. ('. at \k -177. Sue .ilso, note 2, p. .VJ. 
 

 
 '■ii 
 
 ,i 
 
 25 
 
 Till': BILLS OF EXCHANGE ACT, 1S90. 
 
 it legis- 
 
 Jills of 
 
 brings 
 
 Great 
 
 lot" the 
 
 jirovi- 
 
 53 Victoria, Chapter 33. 
 
 (Canada. J 
 
 All Act rehitiiifi' to Bills of Kxcliaiige, Cheque^!, and 
 I*romissorv Notes.* 
 
 Acceptance and Payment fo^" 
 
 Honor, (i4-(i7. 
 Lost Insti'unitjnts, (i8(i9. 
 r.ill in a Set, 70. 
 ( 'ontlict of Law.s, 71. 
 Part JII. — Cnit^iKS on a ]?ank, 
 7-J-74. 
 Crossed Cheques, 7.")-81. 
 Part 1 V. — PuoM issoKY XoTKs, S2SS. 
 
 Part I. I'KKM.MrNAIiV, !-■-'. 
 
 Part II. r>n.i~s of Kxchaxoe. 
 
 Fdini and Interjji'etation, ;i-21. 
 Ca))acitv and Authority of Par- 
 ties. -12 '2V}. 
 Consideration for a Pill. '27-30. 
 Ki>;oiiation of Piills, 31 -.'iH. 
 (it ii.rai Dntitssof Hohler, .S9-,V2. 
 I.ialiilitcs of Parties, o.S-.lS. 
 Discharge of Lill, .jD-GS. 
 
 Part V. - SlI'I'I.F.MKNTAUY, .S!)-{)7. 
 
 [A.'^^cntcd to /(J(h Miijj, 1.SU0. 
 
 11 Ell Maje.sty, by .and with tlie advice and consent of the 
 '-^ Senate and IToiise of Coninions of Canada, enacts as 
 follows : 
 
 PART I. 
 
 PUELIMIXAUV. 
 
 1. This Act may be cited as " Tlic Bills of Exchav(je 
 Ad, ISDO." 
 
 ' Tile lirst legislative references t" P>il!s of Ivxehaiigt; in England are in 
 the statutes I! liicli. 11. c. .S, and .1 Uich. II. c. 2 (see p. (5, ante). ]!ut tiie 
 tirst general legishitive enactment regulating the acceptance anil use of 
 liills of exeiiatige was an Ordinance of Mircelona, passed in 1304; and tlie 
 tirst I^anli of excjiange and deposit was estahlished in tiie s.une city in 1401, 
 and was for the acconiinodation of foreigners as well as eitizens. The first 
 Canadian Ki'isl^itiN e enactnicnt was an ordinanci' passed in 1777, for ascer- 
 taining damages on pi-otested hills of excliange, and lixirig tlie I'ate of 
 interest in tiie Province of (^tiieliec (17 < Jeo. 111. c. .'{). This oidinaiicu 
 reguhit'-d tiie pai- of oxi'hang.', ,ind the damages on hills drawn within the 
 province, or " in any place heyiiud tin' Long Saiilt on the Ottawa river, or 
 lieyond Oswei:atciHe (Oswego) in the ii]>pt'r part of tlu^ ])rovince," ami on 
 hills drawn on persons in any of tiio colonies on the continent of America. 
 Ordinances regulating the i-'iirency, and other commercial matters, were 
 also passed in the .same year. 
 
 Preamble. 
 
 Slinrt title 
 Imp. Act.f.l. 
 
•20 
 
 Till-; mi.i.s OF i;x(,HAN(iE act. 
 
 Sec. 2. 
 
 liLt«iprc;ta- 
 
 tioii. 
 
 Imp. Act,s.: 
 
 "Accept- 
 ance." 
 
 **. Ill tills Act, unless the context othetwise requires,'- — 
 
 - 'I'lie iiioilern legisliitivo practice is to commence n stututc l)y an 
 iiitniductni y interpretation clause explanatory of exi»re«sions tiiscd in the 
 ^Act. An inteipretation clause should l)e used for the purpose of inter- 
 preting words which are ambiguous or e(juivocal, and not so as to disturb 
 the nu'aning of such as are plain : HkjUki v. I\<nr(:, ."> (}. B. I). 3S9. An 
 inteipretation e'lause in an Act should be understood to detine tlie mean- 
 ing of the words thereby interpreted, in cases as to which there is nothing 
 else in the Act (ippused to or inconsistent with that interpretation : Mhl- 
 1(1 lid IL ir. Cn. V. Aiiih<r<j(ilc, ttv,, A'. H'. Co., 10 Hare So'J. An Interpre- 
 tation Act is not intended to exclude the rule alike of good sense, and 
 grammar and law, that general words are to be restrained to the subject 
 matter dealt with : Cliuiiloii v. lAmjx, L. R. 4 C. P. S87. Words which 
 are terms of art ought to lie distinctly explained. Coninion words, there- 
 fore, ought to be used in their eommoii acceptation, and when they have 
 dilfereiit acceptations in common language, these, when it is necessary, 
 ought to l)e distinguished. It is sulHiieiit to detine words that are uncom- 
 mon, or that are userl in an uncommon meaning : UihVs Inlillcrlual 
 /\iirtrs, 'Jl!). 'J'lie lirst general Interiiretation Act was passed by the Legis- 
 lature of Upper Canada in IS.'iT : 7 W'm. iV.,e. 14. In 1 84!) a similar Act 
 was passed by the Legislature of Canada : 1'2 \'ic. c. 10. 'J'hese Acts were 
 consolidated in C S. C. c. .">, and ('. S. U. C c. 2 ; :md were made api)licable 
 to the whole dominion, with some additions in ISG7, in ,S1 Vic. c. 1, now 
 consolidated in I!. S. C. c. 1. There is a similar Interpretation Act in 
 Ontaiio, R. S. (). c. 1. In 1S.")0 a similar but shorter Act was jiasscd by 
 the Inipeiial Parliament (l.oi<l llrou^liam's Act), l.S & 14 \\c. c. 'Jl, which 
 was repealed in 1889 by an Ac/ for roiifollildtiiii/ tin- inuictmciil!^ rt:/a'ii,(j to 
 t/ii ciiiifilriKiion af Acts of /^(irliainiiit, ami for furl h^ir shortcniiKj the Ian- 
 ijitiitjc iiKtd in Actx of Parlianu nt (o2 & o'.i Vic. c. (i.'i. Imp.) 'J'he dcHiii- 
 tions here given are merely verbal. 'J'he substantial and operative inter- 
 pretations affecting the property, rights and liabilities incident to bills 
 and notes, appear in other clauses of the Act. 
 
 {(() The expression " Acceptance '' means an acceptance 
 completed by delivery or notification ; -^ 
 
 •■' " Aecei)tance " in its ordinary signilication is an engagement by the 
 drawee of a bill of exchange to pay the bill when due : Hiirke v. Cork, 
 4 Kast. 07. Such payment must be in money (s. .'?). An acceptance to 
 pay by another bill is no aeeeiitaiice : /i'((«(// v. I'hUlipx, 14 (i- B. 801 ; 
 s. c. lit I.,. .1. ((*. 15. 'J!)7. 'I'lic acceptance must be " written oti the bill "' 
 (s. 17, sul)s. 'J). I'rior to this Act the following were held to be a suffi- 
 cient acceptance : A letter stating that the writer was prepared to pay the 
 liill : Jii/liiiij V. JJirtiii.c, .S M. iS: Cr. ."((io ; ."> .lur. 1 IS'2. A letter stating 
 that a bill ilrawn on the writer would meet with due honor from him : 
 C/(irk( V. Cock; 4 Kast. .")7. 
 
 •f 
 
THE HILLS OF EXCHANGE ACT. 
 
 27 
 
 (/>) The expression "Action" includes counter claim ami 
 setoff; -i 
 
 '"Action" is (kfmed l>y the Ontario Jii<H,'fitin-' .1''', (H. S. (). 
 ISS7, .'. 44), to incliidf suit, iind to mean a civil procectlin^' connncnccil 
 by writ, or in sncli other manner as may be presoinbcd by rules of Court. 
 The SI etions (o wlii. h tliis .letinition applies are s. 30 (evidence in an action 
 on a bill), s.s. .V2 and S'2 (costs of action before maturity <if a bill or notei. 
 and s. ('((» (action on a lost bill). In Quebw " Every action ))efore tli" 
 Superior ( 'oui-t is instituted by means of a writ <if sninmoiis in the name oi 
 the sovereiLTu; savim^' tiie exceptions contained in this eode and other case> 
 provided Inr liy speeial laws:" Tit. I. c. 1, .«. 4.'i. " Actions founded on 
 bills of exchange, notes to order of bearer, chei|Ues or onleis for jiaymcnr, 
 l)o„-. or acknowlidunu'ut of debt," arc deenu'd to be summary matters 
 and are to be tried as such : Coil'- Ciri/ I'nn< (lin-<, Tit. II. c. 1, s. SS7. 
 
 {(■) Tlie expression " Bank "" means an incorjioratcd liaul< 
 or savings liank' cari'vin"' on Imsiiic^s in ' 'anaila ; •"' 
 
 ■■■The IPtiik Art (1!. S. ('. c. 1'20), jirovides th;it. '• Kvery per.son, firm 
 or conipany assuming or using the title of 'bank,' "lianking company." 
 ' baidiing house,' ' i)anking association,' or ' banking institution,' without 
 adding to the sai<l designation the words 'not inc^mpiirated ; ' or w ithout 
 being authorized to do so by this Act, or by some other Act in force in 
 that behalf, is guilty of a misdeuuMUor, and shall incur a penalty not 
 exceeding one thou>and dollars." The ui'W llniil: A'-i (.^.'t \'ie. e. ."{l, >. 
 KlO), which is to come into force 1st duly. 1S!)1 , vai'ies the abovt; ])rovision 
 in some jiartietdars. In the English Act the clause i-eads "banker." 
 and includes a body of pei'sons, whether iiieorpoi^ati'il oi' not. uiio eairy 
 on the business of banking. The nature of the business of bankers is 
 a part of the law-merchant, and is to be judicially noticeil by the 
 Courts: /.'.////,■ (if Aiish-al<isi<t v. /lin'/ldt, 1) Mod. j", ( '. ly.'J; |-_' ,Iur. 
 ist). Hanks may stand in variou.s leg;il relations to their i ustonn-rs : 
 (]) The lirst is the ordinary one where a u>toim'r opens an ic'^'ount with 
 a bank by deiiositing a sum of money to his credit, the liank umlertakin- 
 to hold itself liable for the payment of ii like sum to the customer s use, 
 and either l);iying interest on it, or not, according to agreement, and also 
 agreeing to honor or cash any che(|nes or orders for the pavnu'iit of 
 any sums of money which the customer may draw, to the ext .nt of the 
 sum deposited. In this case the bank and customer stauil in the com- 
 nmn law relation of debtor and ereditor. ('2) Another n 1 itiou is the 
 converse of the fust. The bank may make advances to its customer 
 by si)ecilic lo;ins, or by allowing him to overdraw his account, eharging 
 interest on the advances, ami reiiuiriug either the gu:irantee of a third 
 person or making such advances on the deiiosjt of securities, a^_'ain.-t ware- 
 house receipts, or on bills of l:iding for produce .-hijiped, or other shipjiing 
 
 Sec 2. 
 
 • Aetiell " 
 
 "Iliiuk.' 
 li..l.,\.^t, <. 3, 
 
2S 
 
 Tin; llll.I.S OF EXCHANGE ACT. 
 
 Sec 2. 
 
 Bearer. 
 
 ' liill." 
 ' Note. " 
 
 sccmitifs ;ill(>\Vf(l liy llic lliiik Art. In >iii}i lmscs the ri'latinii of tho 
 li.uik aiiil its .■iisroiucr is that of crcilitcir and clclitor. (I?) ,\ tiiinl rela- 
 tion is wlicu a liink acts as agent for tiiu custoniff in imrrliasinj,' and 
 Sflliny llrilisii, ( 'olonial, or [''orcign securities, or stocks and sliares, and 
 in receiving or collecting, when iliic, interest, dividends, coupons, deben- 
 tures, hilN of exchange and iironiissorj' notes, clie(|Ui's, di-atts, and other 
 coniniercial [laper, when left with the Inink for collection. In these and 
 .similar cases the relation of the hank to its enstonier is that of .agent and 
 l)rineiiial. (4) A fourth relation id when the hank receives debentures, 
 mortgages, shares, deeds and other securities, and also boxes of plate, 
 jewelry, and other valuables for safe custody, and deposits them in its 
 safes or strong rooms along witii its own securities. As a general rule 
 no c.iuipensation is made for this service, and the relation between the 
 C' ,' and the b ink is that of bailor and gratuitous bailee. {0} The 
 
 t 'I ..oil- I ^ which aiisc from theonlinaiv banking biisiiipss of discounting 
 1 . V . ■ \i liange, ]irounss()ry notes and other negotiable ))aper draw the 
 banlv and its customer into the legal relation of princi|ial ai.d surety, 
 (i)/ !)i'.r when ;li ■ bank sells to its customer its own drafts, or other 
 iiegoli..i pa(/L,' on i' . br.-uu.'hes or correspondents, the relati<. -i are 
 changed, and the ( ustouicr becomes a ])rincipal creditor, and the bank the 
 surety, although the relations of debtor and creditor may also intervene. 
 In the ordinaiy and simpler relations of bank and custiuner, no liduciary 
 relation arises, and money deposited in a bank to the customer's credit 
 and account, has no "ear mark,"' ami ceases to be tlie money of the ptu'- 
 son de])ositing it ; it becomes the money of the ])anking com])any, which 
 is bound to return an eijuivaleut by paying a similar sum to that deposited 
 with it, when asked for by the customer's che(ine or order. 
 
 ((/) Tlic expression " IJearer " means the ])erson in pos- 
 session of a l>ill or note wliich is payable to bearer ;" 
 
 " A bill is payable to '" l)earer,'' which i.s so expressed, or ou which 
 the last indorsement is an indorsement in blank (s. 8, subs. S). But the 
 detinition given above, excludes a bill or note payal)le to order. When the. 
 holder of a hill payable to order transfers it without indf)rsiug it, such 
 holder acquires under s. 31, sub-s. -i, all the title of the transferor, and 
 the right to have the indorsement of such transferor. " The possessor of 
 a bill or note [layable to order is not technically the bearer of it :" Chal- 
 DKfS oil /iil/<, 4. 
 
 {'') The expression "Bill" means hill of exchange, and 
 " Note "' means promissory'' note ; ' 
 
 "'{"he fuller delinitions of "bill" and " note," are given in ss. .S and S3. 
 The essential (jualities of a l)ill of exchange are, that it must be payable 
 at all events, not dependent on any contingency, nor payable out of a 
 particular fund ; and must be for the p.iyuient of money only, and not 
 
Till: I'.II.I.S OF EXCllANtiE ACT. 
 
 '2\) 
 
 elation of the 
 A third rola 
 lui'i'liasini,' ami 
 1(1 .shares, ami 
 jupons, (lel)oii- 
 il'ts, ami otliLT 
 111 tlifso and 
 ,t (if aj,'ont and 
 ij.s deliuiituri's, 
 boxes of |)lato, 
 ts thcni in its 
 a i^encral inlc 
 1 butwcun tl'e 
 ileu. (o) The 
 of discounting 
 apur draw the 
 al aud surety. 
 afts, or other 
 relatio -i arc 
 1 the hank the 
 ilsii intervene, 
 r, no lidueiary 
 itoincr's credit 
 cy iif tile jicr- 
 iiijiauy, wliicli 
 at deposited 
 
 SOU in pos- 
 irur ;•' 
 
 or on which 
 
 li). But the 
 
 [)■. When the 
 
 iiiiL,' it, such 
 
 aiisieror, and 
 
 possessor of 
 
 f it :" Chal- 
 
 Lxiiire, and 
 
 I O •' 
 
 |ss. 3amlS3. 
 
 be i)aya!)le 
 
 i)le out of a 
 
 fdy, and uot 
 
 for the performance of any (jtlier act, or in 
 
 tlie alternative : (liUilfni v. See 2- 
 
 M 
 
 III /•■ 
 
 :!i ill. 
 
 A cl 
 
 RMiue IS an in 
 
 land "liill of cxchaii 
 
 drawn on a 
 
 hanker, p.iyalile on demand (s. 7-). 
 
 ( f) Till' expression " JJi'livcry'' means trans 
 sion, actual or constructive, IVoni (.me person to another 
 
 t'er of I 
 
 losses- 
 
 '• lii'ilvcrv. 
 Iiiil. Act, 
 
 14. 
 
 Delivery of a hill or Uite is a transfer of posse.ssion from one iicison to 
 
 anotiii 
 iii(loi> 
 
 ami is necessary to complete the aeeeptanee of a 
 
 1, 
 
 th 
 
 it of 
 
 a note : /<< //rii/i^ 
 
 ,1, L. K. r.. (■ 
 
 -.^(i 
 
 i'.eh 
 
 deli-, 
 
 the 
 
 aeeeptanee may he revoked : Co.r v. 7 
 
 /•<"/, 
 
 .-) I!. \- Aid. 474. Delivery 
 
 IS nece.- 
 CM'. 4-. 
 parti 
 1!»4. 
 
 tlie il 
 
 .irv to eive etl'ect to the contract (s. 'ill : Alii< i/ v. ( rn.i, I.,. 1! 
 
 It i 
 
 s an act in \\ iiicii liotii ]i.irties must join 
 
 '1'Ir' minds of both 
 
 must concur in tiie ac 
 
 tof 
 
 (leliverv 
 
 V. y'o/(/, .VJ r.alb. (iN. V.) 
 
 .1 I /IKI 
 
 /dc 
 
 elivery may be made l>y delivciinj. 
 
 the bill to an ai'eii 
 
 t of 
 
 irsce ; or by traiismitti 
 
 the 
 
 bill li 
 
 y ]>(ist 
 
 ir bv the 
 
 Ojl!< 
 
 Arf. ( i;. .S. C c, ;{.">. s. 4;^), from th(' time a letter is deposited in tlu' post 
 otlice, for the piir|)ose of being sent by post, it ceases to be the ]irol)el ty 
 
 >f th 
 
 ■nder. 
 
 d 1 
 
 leconies tlie property 
 
 (1. \\ hat will constitute ciiii<lnii/ii 
 
 ,i ti 
 •■ d 
 
 le 
 
 lerson to w liolii It is 
 
 deliverv ot a lul 
 
 )]• note 
 
 must deiieiid upon special facts and eircuiiistaiices. Delivery may b 
 eil'ected w ithoiit change of actual possession in three cases, iiaiiu ly 
 
 A bill is held iiy C. on 
 
 his (n\n aceoiin 
 
 t : h 
 
 lbs( 
 
 itly holds it as age 
 
 (1) 
 nt 
 
 of D. CJ) A bill is held by C."s agent, who subseiiiielitly attorns to !>., 
 and hoil> it as his agent. (."?) A bill is held by I), as agent lorC. ; he 
 
 lit : Chill nil r-i oil Jli/li. 4. An 
 
 t to b 
 
 subse(iuently holds it on his own 
 d 
 
 indorsement on a note, and signed by the payee, r< (piestiiig ] aynieiit to be 
 made to a third ))erson is not, without iwoof of delivery, evidence of the 
 
 assi''nnieiit of the note : I'nrdi 
 
 I/uk/Iii/. ;U 111. 174. 
 
 ('/) Tlie exnres.sion "Holilei-" means the pavee or indorsee ■nr.idci 
 
 ^ ' I I I l,,,i Act. 
 
 of <'i liill ())• iiot(j who is in po.s.se.ssiun of it ; or the liearei" 
 theivoi';!' 
 
 '•' The term " holder,"' is sometimes used in dilTereiit senses. an<l it may 
 
 lu.l.Act.t^.S. 
 
 be held to signify the mercantile owner of the iiistitiineiit. who may or 
 may lujt lie the legal owner of it. It is uelierallv used to denote the law ful 
 
 •hold 
 
 er 111 due course 
 
 who is detilli 
 
 db 
 
 /" 
 
 Th 
 
 Act also ii:akes a distinction between a •'holder" and ; 
 
 due course' bys. .'{S. A "holder' includes tlii' p.ayee. J.li(' imloivei 
 
 holder ill 
 
 tl 
 
 le hear 
 
 el, of a bill, and 
 
 uid 
 
 may denote : (1' The j)ersoii to wbom the bill is 
 
 payaiile, and whose title is good against all parties to it, and is a "holdei 
 ill due ei.uise." (2) The person to whom the bill is by its teiiiis payable, 
 and who, as against third parties, is entitled to enforce payment thereof, 
 
 althdiigh, as between himself and the transfei 
 
 fir, 
 
 or 
 
 hold 
 
 lUeeti' 
 
 1011, and has no hieher title to the bi 
 
 er in due 
 
 eonisc, " he is an indorsee for e 
 
 than that of agent or bailee. »See Luic v. I'arntll, 7 C li. X. >-. -S'2. Uue 
 
 if 
 
f 
 
 30 
 
 Sec 2. 
 
 " Indorse- 
 ment." 
 
 ■Issue." 
 
 Value. 
 
 THE IWLLS OF EXCHANGE ACT. 
 
 wIkj lioMs a iioto meruly a.s aguiit, may luaintain an action on such note, 
 altlioiigli he has no henulicial interest in it: AlUsim v. Central Hunk, -i 
 All. N. ]'>. '-'70. P r't ma J'arif a person who ha.s the possession of a note 
 indorsed in lilanU, i.s tlie legal holder : Hoirard v. (Jodard, 4 All. N. I>. 
 ■li}'!. (.'{) The person who has a defective title, or whose possession is 
 nnlawful, /'. <., a thief who has stolen a bill indorsed in hlank, but who 
 can nevertheless give a valid discharge to a I'.irty to it who pays it in 
 good faith ; or a good title to a person who takes it before maturity in 
 good faith, and pays value for it to such holder (s. liS): L'aruth v. Thuniii- 
 "oit, Hi 1>. .Mt)n. ')~'l. Hut a wrongful possessor, that is a person hohling 
 uiKk'r a forged in(h>rsement, or a person who has possession of a stolen 
 bill, payable to the order of another, has no rights, and can transfer none 
 (s. •24). 
 
 (A) The cxpve.'^.sion " Indorsement " mcan.s an indorse- 
 ment completed by <lelivery ; I 
 
 '"Indorse" is a technical tci-m, having sudicient leg.il certainty 
 without more particular explanatory delinition : lirvukc v. Edson, 7 A't. 
 ',\'A\. Indorsement creates two distinct contracts, one executed ami the 
 other executory. It transfers the proiierty in the bill or note, and it also 
 involves the assumption of a contingent liability to pay the amount of the 
 bill or note to the luilder. The indorsement, to be operative, must Ijc in 
 writing and signed by the indorser (s. 3'2). The indorser's contract to 
 transfer is incomplete until the delivery of tlie indorsement (s. 21). A 
 transfer Ity imlorscnieiit consists of an indoisement of, or writing, the name 
 of the party transfering the bill, on the back of the bill, and a delivery 
 for the purpose of completing such transfer ; and it will follow that the 
 issue raised by the jjleading, "did not indorse," involves both these 
 propositions: Mur-ifon v. Alli-n. S M. & \V. 504. An indorsement writ- 
 ten in pencil is valid : CUitavn v. St(Airii'<, 4 \'t. 1 1. 
 
 {'i) Tl)e expression •' Issue" means the first delivery of a 
 bill or note, complete in form, to a person who takes it as 
 a holder ; - 
 
 -This definition refers to the term "issue" in ss. 9 (.S), 12, and 71. 
 Notes delivered after tlie time they bi;ar date are valid only from the day 
 of delivery, and are jonsiilereil as nuule and issued on that day : ■ l.afisiiKj 
 V. aaint, 2 Johns. (N. V.) 300. 
 
 ( /■) The expression " Value " mean.s valuable considera- 
 tion. 3 
 
 " This expression is further deliued by s. 27, 1'Ost, and means any con- 
 sideration which is sufficient to support a simple contract, or an antece- 
 dent debt, or other liability. A valuable consideration in the sense of the 
 
Tilt: Mir.r.s of EXcnANciE act. 
 
 81 
 
 )n suuli note, 
 tral Hunk, -1 
 L)u of a iiotu 
 4 All. N. 15. 
 
 [)ossc.ssi()u is 
 iiU, liut who 
 lio i)ays it in 
 ! maturity in 
 *h V. 'J'/ioiiiji- 
 ■rsiin lK)l(ling 
 1 of a stolen 
 iiansfcr uoue 
 
 law may consist cither in some rii^lit, intfrost, jtrotit, or homtit aocruing SeC. 2- 
 to tho one imity, or some furlicaiancf, di'trinu'iit, loss, ov rcspon.sii)ility, ' 
 
 tjivi'U, sutl'tTid, or uiult itaken liy tiu^ otlitr: Cuniijii's liiijcst, Aution on 
 Case, Assuiii[tsit 15. 1 •!■"). It ixi'liides illegal or immoral t'on.siilfi-ations. 
 I5ut a tr.insftr of shari's wliidi may be valufles.s, is not itmluin piiv/iDii: 
 Chiale V. Kenwunl, \\ DuCJ. it .(. -7. 
 
 (/,') The ('X|»iX'ssi<)ii " Dot'once " iiiclude.s i-ouiitiT-clfiiiii. "* 
 
 * This (li linitioii only apiilics to a modern form of jiloading. It would 
 have lieen more ai»pro])riato if it had read " sueh forms of i)lea(lingM as 
 are authori/ed for tiiat [luriiose in the rrovincial and Territorial Courts." 
 'I'he detiuitioii applies to s. .'{0, .suh-s. "), whieh eontains provisions relat- 
 ing to hills or notes given for tiie ])urehase of patent rights. 
 
 '• Defence." 
 
 II iiidor.se- 
 
 ,'al certainty 
 
 Eilsoii, 7 ^ t. 
 
 uted and the 
 
 -', and it also 
 
 mount of the 
 
 ;, must be in 
 
 contract to 
 
 (s. -Jl). A 
 
 ig, the naino 
 
 d a delivery 
 
 ow that the 
 
 both these 
 
 L'ment writ- 
 
 'eiy of a 
 ikes it as 
 
 I'.', and 71. 
 
 im the day 
 : LaimiKj 
 
 onsiilera- 
 
 s any con- 
 an antece- 
 euse of the 
 
 PAllT II. 
 
 mi-LS OF EXCHANGE. 1 
 
 ' Hy s. 7-, except as othcr'.i ise provided in Piirt HI., the provisions of 
 tile Act a|i[ilieiil'le to billij of exciiango payable on demand (s. 1(1), apply 
 to che<pies ; and liy s. HS, with tiie following exceptions, the ])rovisions 
 of the Act relating to bills uf exch.mge ap])ly, witii tiie neces.'^ary modili- 
 cations, to promissory notes as follows : The maker of a note shall be 
 deemed to correspond with the acceptor of a bill, and the lirst indorser 
 of a note shall he deeliie<l to correspond with tiie drawer of an accepted 
 bill pnyabL' to the drawer's order, liut the following provisions as to 
 bills are not to ajtplj' to promissory notes, namely : — (a) Presentment for 
 accejitancc (s. W.) it >■■■"/.) ; ('') Acciijitanct^ (see ss. 17 and '1\) ; {<•) Accept- 
 ance ■•iupnt, protest ^.s. 04 et stij.) ; (il) Bills in a set ; (s. 70 >:l ■•'«'/.) W'iu're 
 a foreign note is dishonored, protest thereof is unnecesisary, except for the 
 preservation of the liability of indorsers. 
 
 Form and I nlirpretnthiiK 
 
 '<X. A Villi oi' oxcliiingo - is an uiiooiKlitioiial orilcv inwhatisa 
 \vritin<^' -5 addressed by one person to another, ■^ sio-iu'd by lOxoiianRe. 
 the person givino^ it,*"' reipiiring the person to whom it is imp. Act, 
 addre.ssed to pay/"' on demand or at a li.x.ed or determinable in.i Aot,B.5. 
 futiH'e time, " a sum certain in money f'* to or to the order 
 of a s[)ecitied person, or to bearer ; 'J 
 
 2. An instrument which does not comply with these whcninstru- 
 
 ■,. . 1 • I 1 ■ 1 !• • iiieiit is not 
 
 conditions, or winch orders any act to bti done m addition suchttWii. 
 
32 
 Sec 3 
 
 T'?icnri(li- 
 ti'iiml order 
 (luttnej. 
 
 Illll hot iii- 
 vnliil lis lo- 
 
 Diilc. 
 
 Valii.-. 
 
 I'Uiir. 
 
 THE HILLS OF KXriFANfiK ACT. 
 
 to the pnyiiieiit of money, is not, except us lieivinafter 
 provi(l''(l, ii liill ol" exolinnjfo : 
 
 li. An order to pay out of a particular i'lnul is not un- 
 conditionsil witliin the nieanini,' of tliis seetion ; liut an 
 un([Ualiti(Hl oriler to pay, coupled witli (</) an indication of 
 a particnlai' fund out of wliicli the divivveo in to re-inil>urse 
 liiinsi'if, or a particular account to bo debited with the 
 anioiuit, or (h) a statement of the ti'ansaction wliich L;ives 
 rise to the bill, is unconditional , 1 
 
 4. A bill is not invnlid by reason — 
 
 {(I) That it is not dated ; -• 
 
 (/*) That it does not specify the value ^iven, or that any 
 \alue has been ^iven therefor; 3 
 
 ((•) That it doi's not specify the place where it is drawn 
 or the place where it is payable.-* 
 
 - I'lic tti'iii l'>i" f I'^iliaiigo (l(i-iv('(l its iiaiiic fii'iii the l-'n iich J!il/'f 
 <l( Chiiiiiji . soil' ,illf(l l.ittri </i ('liitiiijr. I'litliicr makes a distinc- 
 
 tion lii'twi'fii 11 A'"'' t/i ('liaiKji and a li'illil ilc < /kukjc. He ,-ay.s that a 
 Hill (I ill < lioiiiji is yi\('ii w lu'ii tlic p.irty with whom the coiitiact i.s iiia(h- 
 is not at intsint iirrjiaicd to yi\c liif hill ni' i'.\chaiij,'L' auiccd upmi, an I 
 iMcitdy nivcs a lii/li I, ]iy whiih ]\v ciiyag' s tluMcaftir to tiiiiii>h one. 
 /'nihil I ih ('hiiiiiii, 11. 4. A Hill of l']\rhaiim' is soiiutiiius calK'd a draft. 
 'I'iic iHTsoii \\hii eivcs or draws the onlcr in thf hill or draft, is called the 
 " di-awiT." 'I hi' person on wJKiin it i.s drawn, or who is riiiiiircd to pay 
 is oiilhd the " drawtf"; and if lie accepts the liill or draft liy writing his 
 acceptance thereon (^s. 17--H), he is then e;dle(l the "acee])tor." The 
 person to w honi the money is recpiired to he paid, is called tiie '" jiayee," 
 wlio may he the sanu' jierson as the dr.iwer, or hearer, as the case may 
 lie ; and if he Iraiisfeis the hill or diafl to aiifither 1 y imhusenieiit, lie is 
 called the " indorser" (s. ."itii : or if he transfers it hy delivciy without 
 indorsing it, he is called thi' ''transferor"' (s. TiiS) ; tiie person to whom 
 the iiill or draft is indorsed is called the '" indorsee,'" wIk- may transftr 
 it to anotlu'r as ahove stated. "Jhe "holder " nuans the pa n ee or indor- 
 see wiio is ill possession of the hill, or draft or note, or thi' person who 
 liolds it as "hearer."' A hill of exchange or promissory note maj' he 
 drawn in any language, and any foiin of woj'ds : />///'.•-■ on liill', .")(>. A 
 l)ill di'awn in l''rench Ijy a domicileil l'"renchinaii in France, on an English 
 company and accepted in l-'nglaiul, was treated as an I'liglisli hill : 
 
 m 
 
 Smalliiaiii:'K <(• Hi 
 
 raiiitoii s I ((,v( 
 
 30 th. I). (VJS. .See also s. 7L An 
 
ft(M- 
 
 ■IV ma 
 
 s unt un- 
 ; but an 
 cation of 
 -iiiiliurso 
 witli tlic 
 ich <T;ive.s 
 
 that any 
 is drawn 
 
 rciu'h II n/'/ 
 /s (I distiiu'- 
 lys tli.-it a 
 t is made 
 ipoii, ai: 1 
 li.-li (iiic . 
 
 I a ih-aft. 
 ■ailed til.' 
 
 d tn ])ay 
 ritiiii,' Ids 
 .!■.•' "'llie 
 
 •• I'^iyi-f," 
 
 •a.sc may 
 cut, lie is 
 
 Witlldllt 
 
 to mIioih 
 
 \ traiistV'i- 
 
 (ir indiir- 
 
 is<iii who 
 
 e may hv 
 
 .-)(i. A 
 
 II Kurdish 
 ish l.iU : 
 
 71. An 
 
 ■iiii; I'di.i.s oi' i:x( ii.\N(;i: .\« r. 
 
 iiistriinifiit, invalid as a Kill of cxchaii^^c. may I"' valid a>. an .•i^rrifiiitiit. it' 
 it IS otiicrwisc (•.infdi'iiiidilr to the ufiicial law us to contiiu'ts : i/niiiilli'ii 
 V. .s/,(.///.(/'./v./., 4 Mx. •Jnii: /.'..«/ v. A'.../, 11 l". ('. \>. 1'.. -'H. 'rii. tiims of 
 a not(,> iMMiiot 1)0 vui'iod liy fvidiMnT of a parol amitiniiit : //nr/nr v. 
 /'(itii-.^iiii, 14 K. (". •'. 1'. o.'iH. WliotluT an insti iimiiit is a hill of 
 t'Xchiiin'r or iiiit, iiiii>t 111' dcttMiiiiiii il from itt fafc ; it^ cliaiarti'r cannot 
 ho changed liy extrinsic evidence ; A'/V- v. I!a>il<iii<l . 10 Iluiri|ili (Tenii.) 
 54.'i. 'riic tiist case on lulls of excliaii;,'e to ln' it<\\ui\ in llic re])Mits is 
 MdiiiH v. lUiiiii, ("ro. .lac. ti, an action tn re. ■over the amount of a fofci!.'!! 
 hill drawn for " 1 ,.'{•_'(! dollars, called reals of eiylit, niDiiitit JJisuaiiin , si niii- 
 tlitin iiaiim III! irKtiirtim" payahle at Aleppo, in Spain. The d.^linition given 
 in the Act oi a Hill of Mxehangi', emhraces a cheque, and is declaratory 
 of tlic forim r law : M'Luin v. Vlijili .silnh llniik'ni'j Co., '.» App. (as. ',»,'). 
 
 •''"An uncondition.il oidoi- in writing." A lull of excliango is an 
 "order, " and must therefore he a request and luit prec.itive ; hut the use of 
 terms of i;ourtesy will not make it invalid. The usual form of a i'rencli 
 hill, i-i " // riiHi jil III I'll pdi/' r." The hill or note may he u i it ten hi pencil as 
 well as in ink. [here is no jiuthority for saying that w hen t he law re(|iiires 
 a contract to he in wiiting, that writing must he in ink: d'nirji v. I'liiisir, 
 ') 1). it C. "-'."it. A note written in pencil and written nwi in ink, is \alid : 
 Rml V. Iliiiirk, 14 Tex. ;{'.",(. l''iVery hill of exchange inijiorts a eoinmand to 
 the drawee to pay, and his aec;e[)tance is not only an admission of nmney 
 or etl'ccts in his hands siiliicieut to |>ay, hut it is an uiidci taking hy the 
 aecejitor as well with respect to the dr.iwee as the payee, to p,iy the hill : 
 Panniidir v. Synion-i, 2 Ih'o. I'. C 43. 
 
 Il.l.lSTKATIoNS. 
 
 A p.iper in these words, •• Mr. L. please to let the hearer have t?7, and 
 place it to my account, and yim will (ddige your huinhk' servant, U. S.,'' 
 is not an unconditional order, nor a hill : Li/fli v. Slw l.jhnl, M . & Mai. 171. 
 
 '■ \Vu lierehy authorize you to pay on our account to tho order of (i.," 
 with an acceptance, as follows : " Having received the foregoing author- 
 ity from Messrs. W. it.S., 1 undertake to make yon the payments as ahovi 
 stated, " is only an authoriz.ition to pa^ : Ihun'i'llnn v. S/intlfsirondc, 4 Ex. 
 •2W. 
 
 An order as follows t " I'le.ise let the hearer have .*,"i(l. I will arrange 
 it with yon this noon,"' is a hill : Biisi ntliail \. \V lliiains. \ \)\\\. (Ky.) '.VIM. 
 
 " I'lease j>ay Iv li. , attorney for the plaintitls in this case, the sum of 
 £1"2.'> on account of plaiiititl 's ehdni in this suit," is ih pendent upon the 
 plaintiir's claim in the suit : Cvvi>oia'iitii v/'J'erfh v. Mciin i/nr, 'Jl [' . C. 
 Q 11. 4,-i!t. 
 
 " Mr. I'., will much ohlige Mr. A. hy paving to the order of Mr. C,"i8 
 valid : Huff v. fVdib, 1 Ksi). 1-J!I. 
 
 An order directed to 15. hy A., that H. pay ('. :?100, and take up A.'s 
 note of that amount, is a hill : Coo/c v. SiifUrlfe, Tow. (X. \.) lt)S. 
 
 A reiiuest to pay a promissory note written under the note hy the 
 promisor, is a hill : Lemtard v. Mason, 1 Wend. iX. Y. ) 5'22. 
 
 33 
 
 Sec 3. 
 
:;4 
 
 Tin: nii.i.s ov kxchangk act. 
 
 Sec. 3. A " iiroiiiiMc t'> pay nn sikiii iis I iini in |iii.Hsi'ssi(ni of fiimlH to ilo mo from 
 ~~~ """ ll .state ot I'l,, ' i.s cciiiilitiniial : IVi'i'i'nis \. Vitinjlil, ( 'licvcs, (•>. ( '. ) 01. 
 
 P^'M)!! ilcin.iiiil, I proiiiiHi! to p.'iy .\Ir, S. i'.ld in ooii.siili'iMtiuii nf Imh fore- 
 ^'•liiij,' aij'l rorlicariiij,' an action U>v (l;inia;,'('.s. a.sci'i'taincil l)y consunt to 
 ivMioiiht to tliat Hiini, i»y rca.son of the injiii'ics Mintaiiied l>y \\\h wife in 
 iv.s|ic('t of iioiiic|i.iii' of a footway," i.s a nott.' : Sin llmi \. Jmiii.'), T) 
 11M»; T.liir. Ii;;(l. 
 
 A iiroini.sf to pay "on tli(.' ileatli of (i. U., ))roviili'il lio leaves eitlief of 
 iiM siitlicient to pay tlii' saiil sum," is <'oniliti()iial : I'li/nrls \. /'(«/.•', 1 IJiirr. 
 
 ;L';t. 
 
 A promise to pay so miny days after niariiai,'o, i.s eoiiilitioiial ; liviirdi^lei/ 
 V. Ii'dilir'ni, 'J Slra. Il.")l ; s. [i. /'nirsiiu v, tliwi'itt, 4 .Mod. "JPJ. 
 
 "Twelve months from the I'lith dune, \H''^, F, (defendant) will [i.iy d. 
 t'., (|pl.iiulill'| .•?!»(», for !». I'., or otherwise .settk" the sum of ^'M) tor hini mi 
 il note tlial he say.s he j,MVe d. ( '. fur .■<l(Mt ;" I leld, t hat this was not a 
 priimis.-or'v note, payahle to the iilaintitl', nor an aL;reement witli plaintitl', 
 but with with I). !•'. : Corh,aii> v. Ctiil, W l'iij,'s. N. I J. 'ilX. 
 
 * " Addressed l)j' one jiersoH to another." In idl hill.s of exchange the 
 drawiT is i)oinid to the person from whom tli(^ value is received, as tlie 
 acceptor is to him to whom it is iriade ])iy.dile, for altlioui,'h the iliawee 
 and aere[itor -Ui^ hound hy the one hill, and hotli I'lpially liaMe for the 
 j)aymuiit thereof, yet they are not connMnidy Imuiid to the one v \ 
 litairi s, l.i'.v Mcrat/oriu, 'yi)',\. 'J'he payee should he named or im' ' 
 
 with reasonahle eert.'iinty (s. 7). He shoidil !)i^ pirtieulurly descr' 
 tiiat he cannot he confuuMdiid with anotlier })erson of the sann; name : 
 Jliffc.iiiii /;///\, (10. Xor should the l)ill he addressed to persons in the alter- 
 nitive, or in sueeessirm (s. ti), A hill of e.xchanytiought to s])eeify to whom 
 the same isiiayai)le, for in ;io otln;r way can the drawee, if lie aceepts it, 
 know to w liom he may properly ]i.iy it, so as to ilischarge himself from all 
 further liahility ; Sfurij an Bills, s. 54. As to a tietitious payee, see s. 7 (•''); 
 inchoate hills in hlaidi, see s. 'JO ; and misdeseription of payee r indoivsee, 
 see s. 32 (4). 
 
 iLHSTIJArioNS. 
 
 " Three uKMiths afterdate ])ay to the order of W. T.," not addressed to 
 a drawee, i.s not a hill : Forwiird v. 'i'honi/isoii, 12 U. (.'. (,>. li. lUU. 
 
 "Pay or order," before this Act (see now s. '20) w.is invalid : 
 
 I't.rw I'liitihill, R. k, 1!. 19;"): liut see M iitiinl Saj'eli/ In.siuutare Co. v. 
 J'orl,r, '2 AU. N. 15. '_'.'«). 
 
 " Mr. A., pay on the within ^~i)0," is invalid ; Dowjkins v. Wilhaon, 
 Wend. ();17. 
 
 A ]tronnse without the name of a ))romisee, " to pay the amount which 
 should he made," on a certain e.\ecution, is not a note : Malthcici v. Jied- 
 
 iriiHj, 
 
 :;i M 
 
 ISS. 
 
 •2X1 
 
 "'".Signed hy the person giving it." The signature is intended to 
 authenticate and give elTect to the contract. It matters not where the 
 ilrawer (make.; or indorsers sign, provided it appears from the hill or 
 note what their respective liabilities as indicated by such bill or note 
 
i to ilii Nu from 
 •s, (<. ('.) 1)1. 
 
 m iif lii.s forc- 
 liy <'uiisciit to 
 ly liiH \\i»i' ill 
 '(I 'lilt, T) 
 
 •;vv('s t'itlicr of 
 
 /'.((/.■., I lilllT. 
 
 till : ltiiiidiilt.li 
 •_M'2. 
 
 it I w ill pay .F. 
 <'.I0 lor liiiii on 
 tiiis WHS not ;i 
 witli iiliiintitl', 
 
 exclmngo tlio 
 
 CL'iVfll, IIM tilt! 
 
 li till! tliiiwee 
 
 liiil)le for tlie 
 
 the 01U' 1' : 
 
 d or iiit' ' 
 
 y (k'sci" 
 
 o sanii.' iiniiie : 
 
 IIS in till' alter- 
 
 ify to wlioiii 
 
 10 cict'ijpts it, 
 
 jsi'lf from ill! 
 
 , .si;u s. 7 {•'?); 
 
 r indorsee, 
 
 iulilrussud to 
 15. 103. 
 
 was invalid : 
 ntiice Co. V. 
 
 .'. Wilk('.-io)i, (') 
 
 iiioniit which 
 llica-.'i V. Jietl- 
 
 intcndod to 
 lot where the 
 111 the l)ill or 
 li bill or note 
 
 
 Tin; lill.I.S i>\' I \t ll.\N«JK ACT. 
 
 ,irr : V'"" V. S/irin, '.M » i.i. 'J'J.'J. fSuf iilno Cii/t.u V. Citliiii, I. i;. 1* M. \.. 
 
 I'-T. 'I'lir ii.ii it til.' ilrawrr i(* usnilly written or siiliscrilifd ,it the 
 
 l.ottoin ot the l>iil, hut tliii^ does not srciii to lit' ivlisolnteiy iiidisiitiisaliK', 
 for ii til.' liil! i.'* wiUlin hy him, and his nanic is insi rlid in tin' hoiiy of 
 the 1. ill or is otherwise signi'd to it, so tint it cl.aily appiar.s that he is 
 the iir; \\er, tiiat will he '-iillieient : Stufif mi I:I//m, s. ,V_'. .-Xs to \\\\M is 
 a snthcieiit s-ij^natnre, the following are cases iindertiie Statute "f Frauds ; 
 A eontraet in writing I'or die sale of good« in wliieh tin- name of the ven- 
 dor i» printed, and that of the vendee is written, at the time of an order 
 >,'iven for the fntiii" 'lelivery of puids, is ii wullieieiit signature under the 
 Statute oi' Frauds to charge the vendor : Sdiini/i'i-.idii v. .hn-k'^ni, '2 li, c& I'. 
 •j;{S ; ;t Hsp. 1M>, S. p., Sr/nnii/. >■ V. Xnrii^, '2 M. it S. 7S(1. So a llleino- 
 
 randiim written on a letter Keariiig a printed heading : Tnurnl v. I'rl/ips, 
 IS L. .1. Ch, ."iti7;'_'7 W. I!. 7l'ii. The signature may he written in peii- 
 ei!, or hy initials, or hy a stamp, or it may he a ]irinted signatiiri^ of the 
 [larty. if intended to he tak'ii as the signature of such party. The signature 
 may 1m signed hy some other person, hy or under the iiuthority of the 
 party to lie IiouikI (ss. '_'.") uud 110.) 
 
 Ii i.rsrn.vrrnss. 
 
 An instrument in the follow ing lorm : " Four montliH after date pay to 
 my oilier L'.'JOO, toi' valiit' received," addressed to and toilnally accepti:d 
 hv the jiarty, and transferred to ('. for value, hut having no date ami no 
 drawer's ua'im'. is not a hill ; M.r,iU v. Taylor, li) C. li. N. S. .SUI ; IJ 
 h. T. .N. S. Itil ; i:{ W. I!. SIO. 
 
 .•\. wrote his name oii (he luck of the note hefore delivery; held liahlc 
 as maker: liiU v. MniT'tl, 4 I'ugs. k Uiir. ,1'JI ; s.p., ',""" '^'- ■'^/>i'iii , 'JO 
 (ia. '-"JS. 
 
 Where the maker signed ".\. for 15.," the maker alone is liahle ; Mflhtin 
 w Miii-ri.-1'in, 1 A. K. Marsh ."i4."). 
 
 "We joiutly and severally proniist^'" and signed ''1*. and I., for ti.," i.s 
 the noti'of <;.": ///'■' v. <!<,n, •_'•_' I'ick. (Ma.ss.) 158. 
 
 A person ahle to write placed the figures I, '2, S, in peiu'il on tlichaek 
 of a hill :',s an iiidorsciueiit, hehl a gooii indorsi'iiieut : Jinucii v. Ilati'luri^ 
 mill Dninrs lUtnk, t; Hill (N. V.) \V.\. 
 
 A signature written in pencil is valid : ('lii.<s(,n v. Shco-iii, 4 \'t. II. 
 
 The initials might he eijuivaleiit to the name: (\i>nn v. ('(itmi, L. l\. 
 •2 H. L. at p. 14:5. 
 
 A signature made hv a mark is valid: (ln.rijr v. Siirni/, M. fc M. ,")](); 
 s. p. Jlah-rr v. Diiuikj, S A. it K. it4 ; Willowjh'hii v. Mmillni,, 47 N. 11. 'IW^. 
 
 " " Reipiiring the person to whom it is addressed to pay * * a .sum 
 ce'tain in money." The sum for \\liich ;i hill is made ])ayahle is usually 
 Miitten in the hoiiy of the hill, in words at length, the hetter to prevent 
 alteration, and is also usually su[ierst'rihed in ligures ; hut where there is a 
 discrepancy between the ligures and the words, tl.e amount stated in words 
 is to govern (s. !)). It seems positively indispensable that the exact 
 amount to he paid should lie inscried ; for in no other way can the drawee 
 know what he is to pay, or the holder know what he is entitled to denuuul. 
 
 85 
 
 Sec 3- 
 
3G 
 
 Tilt IIII.I.S OF r,X('HAN(;K ACT. 
 
 m-'i 
 
 Sec. 3. Hence if the specific sum to l)e paid he not expre.sseil at all, or it he 
 ' ■ ' uncertain in amount, or he accompanied hy other worils tliat make the 
 
 sum mure or les.-i, aceording to circum.stances, the instrument is void a.s a 
 
 hill of exchange : S/uri/ on Bilii, s. 4'2. 
 
 IlLI:.STKATION,S. 
 
 An inijtruin(!nt promising to pay £14, to he paid in carpenter's or joiner's 
 Work such as may he required, is not a note : JJoirn.s v. McXamara, ',i 
 V. C. Q. H. -JTfi. 
 
 A j)romise to pay a sum certain on a day named "in cash oi' mortgage 
 on real estate,'' is not a note : <luiii'i v. Ikincirk, ItJ U. ('. (}. B. 4") ; s.p. 
 Siir/iani V. Lairri-uut. ') U. C. Q. 1!. l\,')9. 
 
 " I)ue d. J., or hearer .'r'4S'2 in Canada hills, payalile in 14 days after 
 date '■ is not a note : <''r((i/ v. Wordin, 29 U. C. (}. ii. ii^^). 
 
 An instrument made in Canada promising to pay in "current funds of 
 the United States " i.-, nnt a note; Jidfi.i v. H'cZ/.r, .30 C. C. <,). li. -2.3. 
 S(-U roiitni, St. SI) phin.-< JJmui:/i R. W. Vo. v. Bhick.'l \h\u. X. H. 13l». 
 
 A promise to pay a sum certain at Kingston, I'pper Canada, "^^itll 
 exchange on New York, '' is for an uncirtain sum, and is not a hill or nute : 
 Pahiur V. Fahne-^lor/,; (I IJ. C. C. I*. 112 ; s.p. /'/ii/,iilr//,l,ia Hank v. 
 Xiirkirk, -J Miles (I'a.) 44'2. 
 
 A custom hetween merchants in Canada and the United States to draw 
 ])ills " with curient latc of exchange on New York," is not part of the 
 Icj: mcrcatovid ; t'a:.! t v. Kirk, 4 All. N. 1». iiV.l. 
 
 An instrument " payahlc in Pennsylvania or \ew York paper currency, 
 to he current in tiie State of I'ennsylviiniaor the .State of ^<ew \ Ork, ' is 
 not a note : Liib- r v. Gouilrich, 5 Cow. (N.V.) ISti. 
 
 A paper consisting of a promise "to pay A. or order 111.", for value 
 received, together with interest at i'5 per cent, per annum, and all tines 
 according tip rule." is not a note, (U» accnunt of tiie introduction of the 
 last words : A:i<y v. Fitiriisi(/is, 4 M. & W. KJ^S ; 2 Jur. 590. 
 
 "I., J. I.)., have this day horrowed of J. ( '. C'.W) at 4 per hundred pay- 
 ahle yearly," is not a note ; Curi/ v. Davis, 14 C. H. ^i. S. 370. 
 
 " I have received the sum of £'200 which I horrowed of you, and I have 
 to he aecountahlc for the said sum with interest," is not a note : lluiw v. 
 h'td/rani, 4 Ihiig. \. C. 430. 
 
 " I will pay J. ('.. i?'.)0 for I). I'., or otherwise settle the sum of §90 for 
 Jiiin on a note tiiat he savs he gave J. C. for §100," is not a note : 
 (■oi-hmii, v. ('((il, 3 I'ugs.'X. 15. -J-.U. 
 
 " T pronnseto i>ay to Mr. S., or his order, at three months after date, 
 flOO, as per menniraiiduin of agreement," is a note : Jury v. Ilarker, K. 
 B. Ik. K. 4.V.t: 4.lur. X. S. .587. 
 
 " I'ort of Lomlon Sea, I'ire and T.ife Assurance Company. 'I'n the 
 cashier, l''ifty-three days after liate, credit P. &, Co., (U' order, with the 
 sum of oOO/. cliiuicd. per Cleopatra, in casii, on account of this corp(U'a- 
 tion. (Signe(l) .A. C. (the di'awerj. Managing Uirector." The \\ords 
 'eri^lit in cash, " meaning pay, is a hill : Eddisun v. Col/iuijridije, 9 C. I». 
 570; 14 .lur. H(i9. 
 
 An order to ])ay in "three good East India honds" is not a hill: Anon. 
 BuUer's N". P. '208. 
 
it all, or it lie 
 that nuake the 
 lit is void as a, 
 
 tcr's or joiiior s 
 MiXainaiii, ',i 
 
 sli 111' mortgage 
 <,>. II. 45 ; .s.p. 
 
 11 14 days after 
 
 iri'ciit fuiid.s of 
 
 . c. (}. v.. -2:1 
 
 . N. H. 13l>. 
 
 Jauada, " with 
 ; a l)ill or note : 
 'Ijihia Bitnk v. 
 
 States to di-aw 
 lot part of the 
 
 aper eurreiiey, 
 New York," is 
 
 flTi. for value 
 LUul all lilies 
 etioii of the 
 
 to. 
 
 hundred pav- 
 
 )U, and I have 
 te : J/uiw V. 
 
 mm of .'?flO for 
 not, a note : 
 
 lis after date, 
 V. llarker, V.. 
 
 any. Jo the 
 der, with the 
 this corpora- 
 'I'lie woids 
 
 ridjt, u c. r>. 
 
 a liill: Anon. 
 
 THE 151 hLS (IF r:xCH.\NtlK ACT. 
 
 A promise to pay A. IJ. or his order .^TuO in grain, is not a note : Corl- 
 l,,„ V. /;,v,.,/s 14 N. H. I4!». 
 
 ■• Hue to "<.<;. §10,000 to he paid as wanted for her support," is not 
 valiil : aonloii v. Itundbtt, 'JH N. H. 4.3.'). 
 
 An orilerreijuiring the drawee to pay a sum eertain, and deliver up a 
 wharf, is not a hill : M'irtin v. Chauntry, 2 Swu. I'JTl. 
 
 .All order to pay i"7. 000, -'whieli sum is on aeeount of the dividends 
 and interest due on the eapital and deeds registered in the hoidis of the 
 Bank of K. in the name of C. & V>., which you will jilease f.aige to my 
 aeeount and eredit aeeortliiii.' to a registered letter J have addressed to 
 y(.u," is a negotiable bill : AV /ioij.se, 33 Cli. I). Hl'J. 
 
 'I'he following.' addressed to executors : " We do he^'hy authorize and 
 reipiire you to pay to (i. 1'. or his order, the sum of l'-'r)0, being the 
 aniMuut direeted hv the order of the L'ittli .Iidylas*^ to lie paid to our 
 order," IS n<.t a bill : Hwyfll v. Poinl/, 14 M. &'\V. -.KS. 
 
 An instrument by which A. promises to pay to the be.irer t.'iO, being 
 the portion of a value, as under, dejiosited in security for the payment 
 thereof," is a note: //('»^>'")//'/V*' v. ihn Uiurk, 7 1". It. 733. .And m'v ChIUh 
 V. Kminf.tt, 1 11. lil. 313: /.V,„/ v. M<-X,(/ty, 12 IJieh. (S. C.)445. 
 
 A prrnnise to pay a sum certain " with exchange not to exceed one lialf 
 ]icr cent." is not a ii'de : Su.cinii v. Stereiixoti, '23 U. C. C 1*. r)03. 
 
 \ note payable to the I'epresentatives of .'^. three moiith.s after his 
 <lccease. " tirst deducting thereout any interest or money which S. might 
 <)W e to the maker on any account," i^; not a note for the payment of a 
 definite sum at all events: Burloir v. Uroailliurst, 4 ^foore 471. 
 
 .\ii instrument promising to jiay a sum " to eollat. -rally secure the pay- 
 ment of the money mentioned in an assignuieiit of iiKUtgage, ' is not a 
 r.dte : M<'liiililiii v. T<i)'r<iiii'i'. 't .Man. R. 114. 
 
 "On demand, or at a fixeil or determinalile future time." The time 
 of piynieiit is regularly and usually stated in the beginning of the note or 
 bill: but if no tiuK' lie expressed, the instiinieiit will be payable on 
 demand. Tlicre is no limitation as in the time when the bill or note is 
 iiiaclc payable : but it may lie on deuiaiiil. or at sight, or any certain period 
 aiti r date, or siuiht, or usance. " If a bill of exchange he made payable 
 ,it never so distant a day. if it be a day that iniist eonii', it is no objection 
 to the bill:' /'.;• Wilb-, C.l.. in Cuhhuii v. Cuokr, Willcs 3'.l(;. It is 
 obvious that some time must be lixiil, either absolutely or by necessary 
 relation to some fact, or by iiuplic:itioii of law, at which every bill is to 
 be payable ; for otherwise the rjehts, duties and oblig;itioiis of the parties 
 respectively woiih' be indetermiiialilc aiel uncertain: Stonj mi /{l//-\ s. .'iO. 
 See further delinition in s. II. 
 
 li.i.L'STi;.\Tn(Ns. 
 
 Due to H. 11. t.'iOO for value received, iVo., " p:vyable at the sale of 
 timber marked I' A. in (.hiebec, (jr el-iewhere, ' is not a fixed time ; 
 /^^ -■<.// v. HV/Av, ■) U. V. <>. S. 7-_'5. 
 
 A promise to pay "on the sale or prohu-e, inimedi.itely when sold, of 
 the White Hart, .St. Albans, Herts, and the uoods, value receiveil," is 
 Jiita ti.xed time : //('// v. Ilnli\,nl. :! 15. it I'. 413. 
 
 .A bill payable at .30 d;iys after the ship !'., shall arrive at (.'. , is contin- 
 gent : Palmr v. Pnttt, 7 Bing. l^.'i. 
 
 :j7 
 
 Sec 
 
 m 
 
38 
 
 THE HILLS OF I'Af'FTANGE ACT. 
 
 Sec. 3- A ]in)niiso to pay " at such a ])orioil fif tiiiu' tliat my circumstances will 
 
 ■ ' ' admit, witiidut (Ittrimeiit to myself orfamilv," creates no debt : Ex ]iartc 
 
 Toolr/l, 4 \'os. 'Al'2. 
 
 An ordiT for a sum "))ayalile ninety days aftci' siglit, or wlicn realized,'" 
 is not a Mil : Ali xamlir v. Tlnn/Ki-', Hi i^. 15. XVA ; 15 Jur. 17.'>. 
 
 Mr. S. has this day deiiositeil with me f.'ilM), on tlie sale of t:iO,.'{0n pel- 
 cent. Spanisii, to he returned on ilemand : llehl, not a hill or note : Sihrec 
 V. 7'///v', 1.") M. i. \V. 2:1 
 
 ^ "A sum certain in money." It is an indispensable re(juisite that the 
 bill should 1)0 for the payment (if money, and of money only. Tims a l)ill 
 to ](ay money and to do some otiu;r tiling;, or a Itill to deliver goods, mer- 
 chandize, or stock or homls. or liank notes, f>r current medium, or drafts, 
 is not a l>ill of exeliange. It nuiy be jiayahle in coins, such as guineas, 
 soveri'igus, Napoleiius. tloriiis, oi' dollars. It may be payable in the 
 currency or money of ]''ii,;land, l''rance, ( lernuuiy, Italy, Russia, Siiain. 
 Holl;uid, India, L'liited States, or any eounti'y, as jioumls sterling, francs, 
 nuirhs, liras, roubles, piastres, Horins, rupees, or dollars, foi- in all tluse 
 cases the sum of money to be paid is tixed by the par of e.xehange, or the 
 kno^\ n <len()minatinn of the eurreiu'v witli reference to the par. See Sfuri/ 
 oil Bills, s. 43. ".M(UK'\ is the medium through which the incomes of the 
 different numbers of the coninninity are distributed to tlicni ; and ihe 
 measure by v. hicli they estinuite their iiossessions;'' '2 J[ill'n I'ulitirnl. 
 Ecouomij, S. "In the rude ages of society, cattle are said to have been the 
 common instrument of comnurce. The armour of I>iomede, says Homer, 
 cost onlj' niiu' oxen; but ll.at of (llaucus costs an huiidi'cd oxen:" Smilli's 
 Wraith (1/ Xdlioii-'!, II. " I'urs h.ave been employed as money in some 
 countries ; cattle in others ; in Chinese Tartary, cubes of te;i closely 
 pressed together ; the shells called cowries, on the coast of Western 
 Africa ; and in Abyssinia, at this day, blocks of rock salt ; thoui-li even 
 of metals the less costly have souutimes been chosen, as iron in Laceda- 
 mon, fi'oni an ascetic liolicy ; coppei' in the early lloman Ilepidilic, from 
 the poverty of the people. (ioldand silver have been gi'Uerally preferred 
 by nations which were able to olitnin them, either by industry, commerce, 
 or con<|nest :" '2 J/zV/'y I'olitiml h'cononii/, 7. 
 
 '•' "'!'(). or to the Older of a specitied person or beai'cr. " Kvery bill of 
 exchange uught to specify to »\ii;'m tlu^ same is payable ; for in no other 
 way can the drawee, if he accepts it, know to whom he nia> properly pay 
 it, so as to ilischarge hiurscif from all further liability. It should also be 
 stated to whom absolutely and cert^iinly, and not alternatively, the bill is 
 to be paid ; for if it is payal)le to A. or t') B. , it is not pro[ierly a liill of 
 exchange, since it is ]iayable to one only on the coiitingeru'y that it is not 
 jiaiil to the other ; Shiri/ mi /lill.-i, s. '}\. It i^ not indispensabh- that the 
 name of the payee sluudd be inserted in tlie Mil whci. made. The blank 
 may bi; tilled up aftirwaids by any person in pos.session with his own 
 name as ]iayee, ami thencefoith it \\ill he valid and efl'ectu.il for all 
 purposes in tlu' hamls of such jni-.-on as iiolder til) iiiitin (s. 'JO), 
 
THE liTLLS OF EXfH.WGR ACT. 
 
 :^!> 
 
 instances will 
 lit : Ex iKirli. 
 
 iicn realized," 
 7:5. 
 
 f (:iO,.S0Oper 
 ■ iKite : Sihrei' 
 
 isite that the 
 
 Tims a hill 
 
 r goods, iiior- 
 
 ni, or drafts. 
 
 1 as guineas, 
 
 yalilu ill the 
 
 iissia, Sjiain. 
 
 rling, francs, 
 
 • ill all tluse 
 
 liaiige, or the 
 
 r. See Star;/ 
 
 iconics of the 
 
 em ; and ihe 
 
 ///'.s I'olitirnf. 
 
 lave hceii the 
 
 says lionifr. 
 
 ten ;" S)iiif/i's 
 
 ney in some 
 
 tea closi'ly 
 
 of Western 
 
 loiigh evt'ii 
 
 ill Lacethe- 
 
 tililic, from 
 
 y preferred 
 
 (■(iiiiinerce. 
 
 Ivcry bill of 
 ill no other 
 ■oii.rly pay 
 mid also he 
 y. the iiill is 
 "rly a hill of 
 lat it is not 
 ilf that the 
 Tliehlank 
 til his own 
 liial for all 
 0', 
 
 ' If rlir hill or note he payahle out of a ]iartienlar fund only, or upon SeC 3. 
 an event \\iiirli is (;ontiiigcnt, or if it he otherwise condit ii/iial, it is imt. 
 in C()ntiin|ilatioii of law, a hill of exchange, or in its essentia! eiiararter 
 negotiiMe. Ami lieiire the gener.i! rule is rli.it a hill of exrli:inge 
 implies a personal general credit, not liniitv'd or a])])lical'le 10 p.irticnlar 
 <irciiiiistaiiees ;ind events wliieh cannr)t he Uiif>wii to the holder of the 
 hill in tile ;;.iur;il course of its negotiation; sfnri/ on /<///>, s. 4(). Where 
 th(! direct ion is to pay '"out of a particular fund tlie order is conditional; 
 Imt whii'c tlic words .'irc useil merely to indicate that a ])aiticiilar fund is 
 lo he ih'hlted. the olilcr is unc< ludit K ill A. W'llethei' a hill oi' liclc is colidi 
 tioiial, is .'i i|\iistion of law : Sjirimft v. Mn/lhnrs, 1 T. I!. ISli. 
 
 Il.l.rsTKATloNs. 
 
 A hill drawn payahle "out of the crowing' siihstance ' of tlie dr.iwcr is 
 invalid : ./n.^^.^Ji/i, v. I.nri,,'. 10 Mod. •J'.il. 
 
 A pmniise to ]i;iy "out of tlu' net pro'^eeds of ore to he raised and .^old. " 
 is conditional : WUrthn v. hml'i', ■'! Den. (X. \ .) |."i!(. 
 
 An order to pay £\'^ ''out of my hall )i;iy which will hecnine liue the 
 1st .lanii.uy," is conditional : Sli'viii.< v. 7/(7/, o Ksp. 247. 
 
 An order to p.iy '■ out of t!ie iiiiou ys arisini; from my rcMTsion when 
 sold,' is conditional : (iiihi.-' v. Fiiiir(.iirf, .')'['. l[. 4S'_'. 
 
 All order to pay " 01,1 of rents," is ci'iiditional : J/'.rton v. A'",/.,/-, 1 
 
 itiii(N.Y.).').s;{. ■ 
 
 An ordei' to pay a sum ^■el•lain " on account of moneys ;id\anccil hy me 
 lotlieS. t*^ I''. ('( lii[iali\ . " is nijcoliditiciial ; (jriWnw Wnttln ihi/, I,, h'..'? 
 
 .■\n ordi'i- to pay a sum certain '■ag.iinst credit \o. "iO, ;nid iijacc it to 
 a.cuuiit ;is advised hv d. 1*. iV Cd. ," is iiiicoiiditlona! : I'l'iitm r \. ./■■/m.^lcn, 
 
 1 . 1;. :. ir. L. i.-iT. 
 
 .\ii Older to pay .€'.'.11' '' ">■ my (pi.irterly half-pay d.iic 1st I'ehi u.iry hy 
 a tvaiicc-," is unconditional : J/nrlun \. .v/.n, •_' ,stia. 7<i'-. 
 
 All acceptance on a draft in these unids ''We will keep tlie .~iims of 
 .'■I'lO") and ir^-tC") from the first estim.ite of McL. ;ind M. \ dp., as recpiested 
 .ihovc, in'ovided they li.ave done siitlicient wnk to earn that sum ;" Ijejil, 
 I.I he a hill : McL^'uii v. Sin, i, Is, 1 Man. I;. ■.'7S. 
 
 A hil' or note drawn on a p.irticill.n t'lnd. ami not p:iy.alile j^eiu r.illy . is 
 not valid : hinrl-is \. /■,',, ,7 I >, l,,raiii> . '1 \\. I'd. ~,S-1. 
 
 All Older drawn in express terms tor a )iat tienjar fund, will ejierare as 
 an assign in cut of the fund, hut it w ill not he m iioli.ihle. and is not .a hill 
 of exchange: f '(.(/-/jr,//, //•,(//. v. sli,jii<'il. ,'! \. N'. iCoinst ' '1V.\. 
 
 "Mr. <).- .Mr. W. want.-. C-.'o, t'velve o'clock this.la.v. /..., I.^thof l-'eh.. 
 Istld. 1 want yon to c( t it him iminediati ly out of >,'s UMincy ;" si-neil 
 1 y II., .anil aei'cpti d hy the defen<lant ; - Held, mt ,-i liill. Imc-him' payahli 
 oiit ot a particul.ii Hind : < )ib rninn v. /Hurl./,.,/.-. j'J I . ( . ( '. I'. ;i(;'j'. 
 
 An .•iiit lioritv to ii.iv iiiouev '• cut of the iiiiiiievs now elm- or lieie.aft 
 
 ill 
 
 i :i 
 
 1' 
 
 to hecoiiie i\uv to iiie iiiidci the will ol niv late lather. 
 
 /v.v/iM- v. ('->//■' w, •_'7 \\'. 11. ;ioi. 
 
 r 
 
 dition.'il ; 
 
40 THE BILLS OF EXCHANGE ACT. 
 
 Sec. 3. All oilier to ]);iy "out of the moneys in j'our liiimls heloiiginy to the 
 
 ' iiropriftors of the I )ev(iiisliire mines iind (juiirries,'" is (.'oiulitioiKil : Jenne.y 
 
 V. Jhrlc, 2 \A. Kayiii. VMM. 
 
 All order ilrawii upon the treasury by a i)ul)lie utlieer for liis salary is 
 not a hill : Shiuh r v. /l,i/r/i>.!i/r, S H. Mon. (Ky. ) IGS. 
 
 An order on a piihlic auditor as follows : " From , roceeds of drafts of 
 Messrs. A. & T. in my favour tiled in your olHee, pay to the order of 
 Messrs. 11. ifc Co., of I'hilailelphia, SUriU, aeeeptance reeeived, and charge 
 without further notice to account of C A.,'" is not a bill: Raiijaml v. 
 -ly///; It) Ark. r)!)4. 
 
 A warrant issued by a (jounty auditor, dated at his ollice, and reading, 
 " Treasurer of S. F. enunty will |)ay to the order of J. D. .\1. the sum 
 or.'?l,0(X), as ordered by the lioard of .Supervisors, &c. ,"is not a bill: 
 Ddiia V. Siiit Frmirki:!), 11) Cal. 4.y(i ; s.p. liai/i rqHv v. San Fram-Uco, 1 
 MeAU. 17.-). 
 
 Towiisliip orders drawn by ttic towns .1^ tIeaf^urer, and " ])ayable out 
 of the niouevs arisiutf fmui road ta.xes," are uot bills: l>i)(v v. Tiuciiship of 
 CiwiiKj/uii, lit Pa. St. -IW. 
 
 - The deliiiitioii given .)f a bill l)y the preceding part of this section 
 does not make the date essential to the form of a Itill. T?ut in general 
 it may be stated that there should be a date to every bill of e.\chanf;e. 
 However it is not in all cases indispensable, although in foreign bills the 
 date is rarely if ever omitted. In all cases of bills drawn so many daj's 
 afterdate, it would seem almost indispensable that the date should appear 
 upon the face of the iustrument, for otherwise it cannot be known to the 
 drawee at wiiat period it is pay.ilile; nor cm the holder know when it should 
 be presented for payment. But when bills are drawn at, or so many days 
 after, sight, or (,n demand, it does not seem indispensable tliat the date 
 shoiild appear. It is obvious, however, that every such omission must be 
 attended with some practical iiieonvcnience, and therefore it sehlom 
 occurs excejit from ])ure mistake ; S/ori/ on Hi//-:, s. 37. Most of the con- 
 tinental Codes rei|uiri> the bill to be dated, if the date of a bill or note is 
 omitted, it is considered as dated on the day on which it is made : (I'l/fa v. 
 Bourne, (i M. it S. ~'^. .\nd such date may be shewn by ])aroI evidence : 
 Ditris v. J'DK^, 17 C B. &2'k A note d.itcd in ls:!7, and made payable 
 ••.ranuary 1, one thousand forty,'' was hcM to mean 1st ■January, 1840: 
 /■Jniii-: V. .S''('7. 2 Ala. 114. By s. 12 /)">', the true d.ite of a bill may be 
 inserted by any holder. The date of a note is only deseriiitive ; it is not 
 necessary to its validity, and may be explained : /)tuii v. DcLezanli, 'J4 
 Miss. 4-24. 
 
 ■■' It was formerly a matter of controversy iu our law whether it was 
 neoessary that a bill should import on its f.ieo to be for value received. 
 "If the drawer mentions it ./o)' (Y(/((t /•etv /iv(/, then he is chargeable at 
 eommoii law ; but if no such mention, then you must come upon the 
 custiim of merchants only:" P< r Holt, ('..!., in Cminlinijton v. Eiian-'^, 1 
 Show. ,-). It has long been fully estalilisheil th.-it the words are not neces- 
 sarj' or material : Wat.-ioti v. Kiylit/ci/. .'{ I'er. & I). 40S. The words " value 
 
 i 
 
THK I'.II.I.S OK KXCHANCK ACT. 
 
 41 
 
 piig to the 
 lal : Jtnnv.y 
 
 lis salary is 
 
 )f drafts of 
 lie ordt-r of 
 ami charge 
 'iai(jint<'l V. 
 
 ml reading, 
 d. the sum 
 nut a bill : 
 ■"Va/ifi.sco, 1 
 
 )ayal>Ie out 
 rownshij) of 
 
 Ills section 
 
 ill general 
 
 exehani^e. 
 
 ,'n bills the 
 
 many days 
 
 )uld appear 
 
 )wii to the 
 
 ;n it siiould 
 
 many days 
 
 t the date 
 
 jii must be 
 
 it seldom 
 
 f tlic (;oii- 
 
 or note is 
 
 ; (iili'tt V. 
 
 vidence : 
 
 ])aya])le 
 
 ay, 1840: 
 
 iH.iy be 
 
 it is not 
 
 ezardi, 24 
 
 ler it was 
 received. 
 
 gealile at 
 upon the 
 
 lilt iieces- 
 Is • ' value 
 
 % 
 
 r.'cived,"' are ambiguous where the bill is to a third person : for they SeC- 3- 
 III ly mean either value reei'ived by the drawer or the payee, or by th(! ' 
 
 a^cejitor of tlie drawer. Hut tiie first is the more [nobable interpretation'; 
 f.ir it is more natural that the party wlio draws should inform the drawee 
 of a laet which lie does not know, than one of which lie must be aware : 
 /;;//..>• I'll II, lU, M. 
 
 ' Our law seems less strict and peremptory than most of the Kuropean 
 'odes. ]iy tlie French code it seems indispensable to the essence of a bill 
 of exchange that i'- slumld contain the jilace wliere drawn, and also the 
 ]ilaoc upon which it is drawn ; for the definition of a bill on their code is, 
 tliat it is drawn from one place upon anotiier place : ('ode de Cum. Art. 
 110, in Older to ascertain wliether a bill be a foreign bill or an inland 
 lull, as tile riglits, duties and obligations in regard to each are not 
 exactly coincident, it seems proper th.it tlie place where it is drawn or 
 iinde, and is to be jiaid, should in all cases lie stated upon the face of the 
 lii!' |]nt whatever may be the necessity in respect of foreign bills, it 
 dor>s not seem indispensable tliat the (ilace wlieri; drawn should be stated 
 on the face of inl;uid bills, and I'Ctween the original parties. 
 
 4. An iiilau.l liill is a bill wliicli is, oi- on tlir face of it J,",;',?;':,', %^ 
 |'in'|iorts to lie, ('0 liotli ili'awn and p.-ivaMt' witliin Canada, i'',lp'.'A,.t8.4. 
 nr /( di'awn v.itlnn ( "anada \\\»m snuic pi.'is(ju re.sident ^'"'■^''''' "' 
 tlii'iviii. Any wtlk'i' liill is a tureio'ti liill : ' 
 
 '1. Unloss tlie contrary appears on tlie face of the hill, i^ia',',Vi"ii. 
 the lioldi'r niny treat it as an inland liill. 
 
 ' A definition of wliat bills are inland and t'orcign bills of excliange is 
 of great [iractie il importamjc, as the riglits and remedies thereon are not 
 exactly the same, nor are they goveriUMl by the same doctrines and laws. 
 The forms of foreign bills of exchange have varieil atdiU'erent periods, and 
 are even at the present time, <litVerciit in ditf'erent countries.* A bill of 
 eNehunu'c is projierly denominated a foreign bill, tliough formerly calhMl 
 ail iiutlaiid bill, when it is drawn in one state or country upon a jx-rsoii 
 in another or foreign country, as when a liill or draft is cli-awn in Canada 
 Upnii some pei'son in tile I'liited States, or ill the I'nited Kingdom. Hut 
 a bill is properly denominated an inland bill (which is eimivaleiit to the 
 evpressioii that it is ailomestic or iiitra-territorial liilli, when both drawer 
 ami diiwec; reside, and the plai'e of |)aymeiit is, within the same country 
 or L.'overiiiiient. Hut what properly ciuistituttts, in the sense of tiie law, a 
 tereiun ciumtry iias been the suliject of much judicial disi'ussion. l''ortlie 
 piiiposes of nationality ;uid allei,daiue,all partsof the Emjiireare within the 
 one sovereignty ; except iierhajis as to local naturalizations of aliens. (8ee 
 
 s.inw" tiaily T'lriiH of Tiillj of Eyi'lmnu'P .'■oinm nr.>.l with an iiivneati'n to tl.e Doity 
 '• M nuini' ilf Dio. Aincn, a ili 1. Ui Febiaro, l.'-tbl." 
 
 (i 
 
 1 
 
42 
 
 THE BILLS OF EXCHANGE ACT. 
 
 Sec 4.^ Tmpnrial Xatiiralizatioii Ai.t, .S.S Vic. c. 14, s. 10, and Canadian Natural- 
 ization Act, 4i \'i(;. i:li. 1."), H. 17). Before the union of the three United 
 Kingdoms, each of them was " foreign" to tiie otiicr, altho-.ijih they were 
 at the time under the dominion of the sajne sovereign ; and the several 
 Acts of union still left eaeh of them, for some jjurposes, separate; and dis- 
 tinct, and thd'cforc " forciv'n" in regard to loeal laws, jurisjirudence and 
 the jurisdif'tion of tlieir Cdurts. Thus where the question as to hills 
 came dirertly hefore a Court, Ixird Teiiterdin, C. J., said : " It is indeed 
 admitted tli;it hisli and Scinch l)ills drawn u])or. Kngland, wcie foreign 
 hefore tlic respective unions lietween the i:ount.ics ; a:iil it does not fol- 
 low because Ireland and Scotland were unite I into miv Kingconi with 
 this, tliat tlie hills drawn there, wiiich before were foi'eign, became inland 
 hills: Miihonji w A.<hl\ii.>l !',. & P.. 4.S'2. /\nd in a later ease (1S.")0), Sir 
 F. IVdJdck. ( '. 15.. s.iid : " We have to administer the law according to 
 the law iif llngland, and not according to tlie law <if Scntl;,nd, of which, 
 so far as it has reference to the present case, we may be assumed to have 
 no knowledge whatever : '" Hoiiar v. Mitclull , ,"> Kx. 410. And so mitil the 
 Imperial Act of ISS'J, bills drawn in one part of the United Kingdom and 
 pay-'ihle in another, were not distinguished from foreign bills drawn or 
 payable, or both, ;diroa,d : Ihjhs on /!!//■<, 'Mo. According to similar leason 
 ing, it h:is been held that a company incorjior.ated by tlic Imperial Parlia- 
 nientforthc |)urpose of building arailwayin Scotland, is a foreign corpoi-a- 
 tion in England : Marl; nfli v. <;/ii.-<</oir, ,iV., /,'. IT, Co., L. I!. S Kx. 140, 
 althougli S<otlaiid is not a foreign country to Kngland : /'c Orr Kiriii'j, '2'1 
 Ch. I>. -K!."!. So an Irish con.p.iny incori)orated by the s.iinc i'arliament. 
 is a foreign corpoiation in Kngland, and may be conipclled to give secu- 
 rity for costs: KUbiiii}/. ,1''.. /'. ir. Co. v. Firldni, (i Kx. SI. Similar 
 d cisioiis ajijiear in the Irish and Srotch Coui'ts. Ihit an exce))tion 
 is made in winding ujt cases, and the Court acipiiring jurisdiction in 
 a case under the Com)).uMes Act, 1S(!2, Ijecomes a Court for the I'nited 
 Kingdom ; nnd no actions affecting the assets of the company in liijuida- 
 tion I'aii be Inunglit in other Courts : fii/cniotional /'ii/ji Co., .'? Ch. D. 
 .'i04. A similar line of cleeisions previuls in the Canadian Courts. The 
 locality of the forum of litigation is the test \\hether a eoi'poration or 
 individual suing in it, i.'. foreign or not witliin its juris<liction. Thus tlie 
 l)aid< of Montreal is a foreign corporation in Ontario : lioil: <>/ Mnninal 
 v. Ihtlniii'. 4 U. C. () S. :{4I ; so a juilgnunt of a l^ower Canada (now 
 Quebec) Court is a foreign judgment in tliis Pnivince : Mr rkr-rsun v. 
 MrMIHiDi. '.\ V. C. i). 11. .'{4, And sinnlarly a judgment of a .Manitolia 
 Courtis a fort'ign juilgnu'ut in Ontario: Mrl.ian v. .^/lii/u^. it Out. K. 
 600 r>ut tliesc rules ha\e not been ap|ilit'd in .-ill cases to liills ainl notes. 
 Under the Upper Canada .\ct, 7 Wjii. IV. c ,">, s. 1, whicii piovidcd that 
 when a bill or noti' was diawn payable at a bank or any otlier ]iarticular 
 place, it shonid be a general acceptance, it Mas held that a note made in 
 Upper CMnad.i. ])ayable in Montreal, in Lower Canada (then a separate Pro- 
 vince), being ]iayable generally, \\ as an inland m)te : Bnidhin-y v. J>oo/<', I 
 
Tin: lUT.i.s or ExnrAXGE act. 
 
 4:{ 
 
 V. r. Q. T5. 442. But in aiiotlior case, wlicre the note was also ilr.nvn in SeC- 5- 
 U]iln r ('aii.'i'la ami iiiadf ])ayalpli.' at the IJaiik of Montical, in Muntixal, it ' 
 
 Mas apiiarcntly clcalt with as a fortign iKitc, and aLTonliii;,' to t\\v hiw cf 
 I.ouci' Canada, as [iiovc'd at tlic trial: Me I.' inuin v. Mi-Li 
 ('. I'. !(»'.». Thi.s Act. 
 ( 'aiiada. 
 
 17 r. (• 
 
 ,v\\ niakos all bills "diiiwi 
 
 M and payal'lc \v itiiiii 
 
 or iiraMU witlini 
 
 inada upon sonic (icison ri'sidcnt Ihiiciii, 
 
 1. 
 
 1" 
 
 the t 
 
 wo classes! o 
 
 f (.'ascs illustratiiiL: \\liat an 
 
 d;iu<l 
 
 liills, it may Ijc int'ci-icd that a hill drawn in Canada upon a person i-c-idciil 
 in a foreign cfpuntry, hut jiayahlc hero, i.s an inland hill. And a hill draw ii 
 in Canada upon a person resident hero, hut ])ayahle in a foreiijii country, 
 
 would Kcein tf) l)e 
 
 ]>'•' 
 
 ■rlv a foreign hill ; for tl 
 
 le rule 
 
 ■ f 
 
 aw IS thiit 
 
 where a contract i.s niade in one country to he pi'rforniecl in another, it is 
 the i>resnn)<'il intention of the parties that the conti'act, as to its validity, 
 
 nature, olili^atioi 
 place of ]ieiforina 
 
 tl interpretation, is to he j,'overned l>y the law of tl 
 ; Sinri/'s Coiitlict of /.airs, s. •J,SO. 'I"he place of pe 
 
 iinanet: IS then, fif/iniiijiin- 
 
 the /o( 
 
 ii.scoiifrnrlnt: 
 
 ■M 
 
 iiiriji (III ( 'iiliiiiui 
 
 /■ 
 
 I A 
 
 (in Hjii 1.(1 ii\ I I 
 
 171. 
 
 ■lidaiid hills (und 
 
 er .1.) 
 
 111. 
 
 1S4. 
 
 liii 
 
 s are not drawn ]iayahk 
 
 .1:" /^r Lord Ahiuiitr, C. )!., in 
 
 i/ aii'l 
 ■h 
 
 .dausii 
 
 Vlarh, •_' C. M. & i;. 4t;s. 'I'lie Indian Act of KSM has a MUiilar i 
 
 to till' ahove. with the addition: "Any such in>t r'iiiiiei:t not soclrawii 
 
 niaile. or made 
 
 (.s. 1-. 
 
 payalile, shall he deemed to h 
 
 Il.I.I srUATloN.- 
 
 a lorciu'ii uistiiuuent, 
 
 A hill signed in !•" ranee hy a Canadian, and payable in Ca 
 
 inland bill : Jl, rr/,ni,/.^ l:,iiik v. Slirlh.ij, 1 Huss. itliel. I.">i). 
 
 A hill drawn in Lond 
 
 on, on a liei.- 
 
 in I'esident in I! 
 
 ■Is, b 
 
 in London, is an inland hill : ^li 
 
 V. ClarL'i 
 
 T 
 
 '.IJ-J. 
 
 naila, is an 
 
 payabli 
 
 V hill ))aj'.ahle to order, drawn, accepted, and payable in V, 
 
 but 
 
 indorsed in I'rance, is an inland bill : Ldni v. Twk 
 
 i; 
 
 (I i; 
 
 ^^■ 
 
 here the body of a hill was written, and tlu' acec]itance of it niaih 
 
 I'jii'land, and it was afterwards transndtted to tlu' d 
 
 rawer al'Mi.e 
 
 sii^nature, and w;is there si 
 lUiihiii V. Cam]il/r//, (iow ."it 
 
 d 
 
 it was held tl 
 
 forei-'u bi 
 
 A Hrm resident in Ireland signed and indorsed four ciippcr-]il,tte bills nf 
 
 I'xehaugc, dated at a place in Ireland, but leaving blanks for i 
 times of payment, and names of drawees, and sent thein to tli 
 London, who Hlled up the blanks and negotiated the liills : llehi. to b 
 
 eavmy lilanks tor dates, sums, 
 eir aLCent in 
 
 liills nf exehani'e n 
 
 in licl.ind, 
 
 d tl 
 
 lerelorc mrii'^n In 
 
 lis 
 
 Siiii I 
 
 Ih 
 
 Mi 
 
 ;/".'/. 
 
 I M. iV- scl, S7 
 
 A Unto niaile and indorsed in a forei'Mi counfr\'. is necotial 
 
 within the .statute of Ai 
 
 Til, 
 
 A note iiay.able to the beai' 
 
 ni/iyioi V 
 h 
 
 S/o 
 
 V. c 
 
 lie 1 
 ^'iet. 
 
 urr, 
 
 er maile in 
 
 Kn-hi 
 
 IS transfer,- 
 
 deliveiv in a foreign country ; /)i In < 'Inm nii It'- v. ISnuk uf Ki^ij'iiinl . 2 \'>. 
 
 & Ad. ';?s.'). 
 
 ."». A bill may lie drawn i)ayal.Ie to. or to the ■'r.lcr of, ,'':",,':;'^;:^''^^ 
 the drawer; or it may liedi'awu payable to, oi to the order 'i'i',,'"Art s.r. 
 of, tile drawee: I ' ].m1 ■A.t,'..i3; 
 
44 
 
 TMK BILLS OF KXCIlANfiK A< T. 
 
 Sec 5. 
 
 Wh.T.'luill] 
 ari' till' ■;imi' 
 
 plTMlll. 
 
 2. Wlicrt.' ill u l)ill (liawer and drawt'c aie tlio samu 
 ptTsoii, or wlit-n; tile drawoi! is a fictitious person - or a 
 person not liavini,' capacity to contrai.'t, the ho'.dei' may 
 treat llie instrument, at his option, either as a bill of ex- 
 change or as a promisory note. 3 
 
 ' The (Irawur is the persim ^iviii-,' tlie order " (iiMres.scd l>y one person 
 to another." Ami it may be drawn payable to the drawer or iiis order : 
 liu'l' r V. Cri/11, 1 Salk. 130. The law as to notes drawn to the maker's 
 order h IS UmI to some variance of judieil oiiinioti. In /■'//-//(/ v. M(trlinii, 
 l(i L. .1. IvK. '2',i, the Court of i',.\''he(|U(.'r held that a note payable to the 
 order ot' the maker, and indoised t(j tlie |)laiMtiir, was not within the 
 statute ol Anne. Hut the Court ol' (^>ueen"s IJencli, in W'lxjil v. Mi/floii, Hi 
 L. .J.(^. B. I4lj, held that sueli a note was within the statute, and assignable 
 by indorsement. Subsennently. in //un/icr v. Wil/idiii':, 2 K.\. l.S, the 
 Court of K.xehecjuer ailopted the decision of the (Queen's Bench, and held, 
 on a note payable to the maker's order, that the order was complete when 
 the maker's indorsement was made, and the note tiieii became a binding 
 contract ; and that when the maker's indorsement was in lilank, and the 
 note put in circulation, it became a note payable to bearer. 
 
 lLLrSTliATI()N>. 
 
 " If a man draw an instrument in the form of a bill of exchange on 
 himself, and accepts it, it is a promissory note. Ff he says, ' I pay to 
 A. B. €100,' and adds an address to tlie instrument, it may be declared 
 on as a note :" Per Parke, B., in lluopur v. ll'i/liant-i, 12 .)ur. '270. 
 
 A banking company carried on business in London an<l Liverpool. The 
 London house draw a l)ill on the Liver])ool branch house. It is a note 
 made l)y the l)anking company pavable to the same company in Liverpool : 
 AfUler V. Thomson, .3 M. &(U: .")7li. 
 
 Although bills of exchange, drawn and accepted by the same ]>arties, 
 may in strictness be promissory notes rather than bills, yet where the 
 intention to give and receive such documents as instruments capal)le of 
 being negotiated in the market as bills of excliange is clear, both the 
 holders and the parties may treat them accordingly : H'miaiiis v. Ayi:t.<, 
 
 ;i App. Cas. i:i:i. 
 
 -■ I{y the Interpretation Act, R. S. C. c. 1, the expression "person" 
 includes "anyboity corporate, and ])olitic, or party, and the heirs, execu- 
 tors, administrators, or other legal representatives of such person, to 
 whom the context can apply, aecordi'ig to the law of that part of Canada 
 to which such context extends." The term "lictitious ])erson" is also 
 used in the Imperial Acts, l)ut the more appropriate designation in viewof 
 the above interpretation of "person," would seem to be "fictitious name," 
 which is the term used in the Indian Act (s.42). It is not clear how 
 such contracts as bills and notes, made to lictitious or non-existing persons, 
 came to )>e recognized as iiaving any legal valiility whatever. To draw 
 or indorse bills or notes in the name of a lictitious or non-existing person. 
 
TIIH MILLS OF LXCHANGK ACT. 
 
 4.> 
 
 is clrnr fi'.iuil, ainl is a frauihiltiit niisroiirescntation niadf wilfully ami SeC- 5- 
 kiiowiui'lv, ami uitli traiidiilciit iiitiMit. Such fi'auil in nrdinniv cdntracts 
 
 vitiates tlicin !ii /uh, 
 
 and tlie Courts uil' not exercise anv iurisdictioii 
 
 to enforce them. Sf> in judicially eonstn 
 i)('r.-<on or thini' n 
 
 ills, if thed. 
 
 ■nptioii 
 
 .f 
 
 anicd in the will, lie wholly inaiiidiralilc to the >uLjei't 
 intended, or saicl to 1)(^ intended hy it, evideiii'e is held to he inadniis>iiile 
 to prove whom or what the testator really intiMided to deserilie : (!)'•'( ii- 
 hdf oil h'riiti iiff, s. •_'!!((. iJut aiiparetitly f(jr the henelit of niereantilu 
 transactions, tlie('ourts havi; waived their judicial alihoricnce of fi.iud, 
 ami have reco^'ui/ed the validity of hills and notes dr.iwn or indor.sed in 
 the names of tictitious persons, for certain purposes. The reasons for this 
 jndieial declension were thus stated in an early ease in the House of Lords • 
 The intent of the drawers and acceptors of the hill in (|Uestion, ^^as to 
 make a negotiahle instrument ; and ff)r want of an actually existing payee, 
 nominated in the hill, it could not he so indorsed as to he put into a itate 
 of negotiahility hy iuihirsenn nt, J'here is no rule of law to jnevent its 
 lieing tiansfered hy delivery, and have the etleet of a hill expressed to 
 he made payahle to hearer, that heiiig the only other nntliod of negotiating 
 hills of exchange, liy thus giving etf'eet to the hill, justice is done hetwixt 
 the parties, and the lule affords ]irotei,'tion to the fair holders of hills of 
 exchange, against framls hy which they might otherwise lie injured, \\ ith- 
 
 it which protection, the currency of hills of e.xchange 
 
 d he gl'catly 
 
 istructed, and gi'i'at inconveniences would arise in comiiicrci.d transac- 
 
 tions 
 
 ai/ison V. M'liicf, 2 liro. 1'. C. (>1.* Since then (IT'.H), Parliament 
 
 has given legislative recognition to hills and notts draw n or [layahle to 
 tictitious or nou-existing persons. 'J'he sections m which these expressions 
 are used, are ss. 7 (3), 41 (•_>) (//), 4U ('2) (b), ')() (L'j (c) and (il). But see 
 as to the effect of au indorsement of such a hill or note, s. .")5 {'2). 
 
 Il.l.l'STI; AlluSS 
 
 In an action hy an indorsee of a hill di.iwn )iayahle to the order of a 
 liititious person, it was held that such a hill was completely void, and 
 that the indorsee could not lecovei' against tlie acceptor, unless. it ajineared 
 that the latter was a« are of the Iran. I, or that the money advanced on the 
 hdl had found its way into his hands ; I'k umil v. lun-inll, 1 Camp. LSO. 
 
 liut in .■mother case it was held tli.it. .ihhi.ugli a hill made to tictitious 
 ])ayecs was a mere nullity, yet as against the indorscr it did not signify 
 what the hill was, it heing his husiness to see what he eouhl make ol the 
 hill : Ex jiurti Clavhr, ."? lire. C. C. ■J.'iS. 
 
 A ]ierson discounting a hill payalile to a fictitious payee for the henefit 
 of the drawers, and with knowle<lge of the Iransai/tion, cannot recover 
 against the acceptor : Ilinifcr v. •/fjfni/, I'eake's Ad. Cas. 1 4(). 
 
 Where a hill was dr.iwn hy the def(;ndant and rjtlrM's, on the defend- 
 ant alone, in favor of a tictitious person (which v, as known to all the 
 
 "I'lie ri'jinrti'r'.* ilifjcot of thi.« ca.'c stiiti s tliiit "It is iiotUcci'.s.^-iiry tn tlii' viiliility iif 
 (Ici'il- nr coiitriU'ts that they ran in all chm'* oiM-ratc acninlintr to llif \vi.iil,< in wliicli 
 th''y arc exp.'i'S.^cd : tor wtnTf tlie rules, or tin' jiolicy. of Ihi- law |iievi'nt- surli upeiatien 
 tb^- in.«trnnit:nt may Ipgally opcrato in a ililTureiit niuinier lo give etfecl to llie legal 
 inteieel of the contracting partie.s." 
 
 l! 
 
 
k; 
 
 TIIK lill.I.S OK KXCllA.NtiK ACT. 
 
 Sec. 5- |i.uti('-i coiiccnu'il ill (Ir.iwiii;; Uu' liill), hihI tlic (Ufi'inliiiit rt'ccivcil the 
 '— — i— -^ Viililr 'it it tiiiiii the sucoiid imlorsci' ; Held, tliat a Imii'i llih IkiIiKt fur 
 
 xiiluc iiii:;lit ri'covci' till.' .•uuoiiiit of it against tlio aoi;itptor ; Tdil'nk v. 
 
 JhtrriM, ',\ T. I!. 174. 
 
 Ill ii cast! in the lloiihu of l/ords it apiKarcd that A. <lri\v a hill on I!. 
 jiayaMc to a liftitions [laycc or onlor, and iiidorsi'd it in the iiaiiio of 
 such liutitioiis [layci-, wliicli II. accfpti'd. In an action hy an iiinoceiit 
 (.'iidor.sui' for value against 15., it was held tli;it in ordiT to draw an iiifcr- 
 encL' oitlior tliat ji.. at tlu^ tinic of liis acccjitaiicL', knew tliat tlie name of 
 tlio iJiiyee %\;is liutitioiis, or that he (11.) had given authority to A. to so 
 draw the hillhy his having given a generiil authority to A. to draw liitls 
 (111 11., payalde to liutitioiis |iij«ons, evidence may lie adiniltcd of irrecnliir 
 and Hiis]iiiioiis traiifactioiis and circumstances relating to other iiiiis drawn 
 liy A. on 11., [layaiili' to tictitioiis jiayees, and accepted hy II, , althoiigii none 
 (if these t laii.^.ictioiis have any ap|iareiit rel.ition to tlie liill in (|Ucstion, 
 and although none of tliciii jiiove that II. .'icceptcd any of those other Mils 
 with a knowledge that the payees were tictitioiis; (lilismi v. Ihnilir, fJ 
 IJfo. 1', C. 'J5.j, 
 
 The names of real persons as drawer and payee were forged to a liill 
 of exchange, which was acee]ited iiy V,, ])ayal)le at a hank, and paid liy 
 the hank: lli'ld, that such forgcil n.iiiies were not "tin; ii.imes of lictitious 
 or non-existing persons," wliic''. would make the hill pay;il)le to hearer, 
 and that tht; hank was not entitleil to credit tor the hill. "Fictitious 
 person " meiiiiH lictitious to the knowledge of the person sought to lie 
 eharged upon a liiil ; I'dii/iano v. liitnh ol' Kmihtud, 22 <jl. 11. I ). KHi, ami 
 
 'i;\ (). II. i». 'Jhs. 
 
 A hill of exchange drawn in lictitions names, where there are no such 
 persiuis existing as the hill imports, may he a lurgery : //' .' v. Wtlkt.-t, '1 
 
 .Hasfs P. C. !t.")7. 
 
 " If it lie amhiguou.s whether an instrument is a hill or a note, the person 
 who receives it, may treat it a.s against the drawer or maker, as either : Shut- 
 tli-.wurth V. S/i /ihi'its, 1 Camp. 407; s. [•. Forhiy^ v. Mar-ilni/l, 11 Kx. l(i(i. See 
 s* 25. I'.'irtieularly where an instrument which apjiears on common ohser- 
 vation to be a bill, may be treated as such, althocgli words are introduced 
 into it for the purposes of deception, whiuli might make it a note : Allan 
 V. Maii\<(i)i, 4 Camp. 115. As to persons not having capacity to contract, 
 see s. 22. 
 
 i\. TIk' (.Irnwco must be nnnicd or otlierwi.se indicated in 
 
 Driiwec imi-t 
 bi' uuuK' 1 ill 
 
 ?mp. Aei.s.fi. ^ bill with reasonable certainty : l 
 
 ifm.MLtbiui 2. A bill may be addressed to two or more drawees, 
 
 one, nut 'iii"^ i iiii 
 
 aitunintive whether they are partners or not ; Init an order ad(UX's,sed 
 
 or sui'rossive , ' • i i 
 
 aniwcMs to two drawees in the alternative, or to two or more 
 drawees in succession, is not a bill of exchange. ~ 
 
 ^ A bill of exchange being an open letter of recpiest, should regularly 
 be addressed to the drawee by his christian and sur-name ; and also by a 
 designation of his place of residence or business. This seems indispens- 
 
Tlir; ItlLI.S OF KXCIIANCiK ACT. 
 
 alilo to tilt' I'iijlitH ,intl (lutio.s and ()l)liL;ati()iis of all the ]i;iitic'.s ; for tin 
 jiiiyi'i' cimiiot otluiw isu know upon whom he is to I'all to urn pt anil pay 
 th(; l>ill ; noi' can any otluT prison know \\ Iu'IIkt it is ailili'f>.»'(l to liini 
 or not, ami whctlnr lie would lie jn>tilicd in accepting; ajid p.iyiiii,' tlu; 
 liill on account of tlic drawer ; Sturi/ nii IliUs^ s. r)S. Every man who 
 takes II liill of i'.\chan;,'c, must know whereto call u|>on tliediawce, lor In; 
 undertakes to dcinaml the inf)ney of jiim ; and wlu.'ii the liill is indorstMl, 
 the indorsee undertakes to demand the money of the drawee : H> i/li/n v. 
 Addiiisiiii, '2 lluir. (i7-t. See further notes to ss. "i 4 and o."). 
 
 ILIA'STKATIONS. 
 
 Tf the drawee's name is not niontione<l on tin' t>ill liy tiie drawer, luit if 
 thi'i'c is a place of i)ayineiit lixed as "at No. I W'ilmot street, Loiiilon," 
 ,iiiil the person who lives there accepts the hill in such foi'iii, iiy writini; 
 his name thereon, it will he an adoption of the liill on his jiait, and he 
 will lie lialile on it as an acceptor: (•'ihi/v. Mi/iiir,S Taunt. ~'M. .Seo 
 J'iUj v. i'(i/iiii/ilf, tt Ivx. 41."), and eases there cited. 
 
 A party L,'ave the following instrumcr.t : At si:,dit, phase pay 1>. S. M. 
 I*, or order ,the .sum of f'ilMI, value received, ami place the same as per 
 letter of advice to the account of A. H. Across it was written in the 
 handwriting,' of A. 1{., "Accepted, S. It., Shin Lane, Kedminstcr, I'liis- 
 tol." It was held that not liavini.,' the name of a clrawee, it was void as 
 a liill of exchange : Pifo v. Jii ynolils ; a. c, /.'. i/iiul'ls v. J'i.!u, 'J K\. 
 tlO; IS.Jur. 47'2; 11 Hx. 418. 
 
 A hill ihawn upon and addressed to the .Milfoid Spinning Company as 
 the driwi-es, >vas accepted liy F. M., one <if the )iartners, " for tile .\lil 
 ford S|iiniiing ('oin|)aiiy and self:" Held, that the acccptaiici' did not 
 entitle the drawer to rank on the se[iarate estate of F. M. : Miilcnlmsnu v. 
 Malndmiuii, 1 Ir. L. II. (^h. I). -J'-'S ; s. p., II,' linriKinl, .Si' Ch. I). 447. 
 
 Where .\. made a note, payaldu to l>. or order, and ( '. wrote his name 
 on the hack without ll.'s first endorsement : Held, tliat ( '. could not 1)C 
 considered as a new maker, ami tliattlie note would not siip[ioit a recovery 
 against him hy 1). : Stctr v, Aihiins, (] \j. ('. (>. S. (it). 
 
 A note made by A., i>ayal)lo to li. or order, and endorsed l>y ('. in 
 lilaiik, cannot be declared u])on by 15. as a note made by C to him, the 
 plai'itifF: Wikoch-iv. Tinniw/, 7 U. C (,». B. 'M± 
 
 All instrument in the form of a note was adilressed to a third party, 
 who accepted it : Held, to be a note : A'(//< v. Jhiri/, (i B. & C -I'A',]. 
 
 A note of a joint stock company was signed O. .-X. II., y/i"/- l>. S.. man- 
 ager. Jt was iuti'iided to be a renewal <if a note previously given by the 
 eomiiaiiy, and that the name of the company was to be inserted over the 
 siuiiritures by a stamp helil by the manager, but which was not done ; — 
 Meid, in appeal, that the instrument had never been jierfccted, and was 
 not therefore a promissory note ; liron-n v. Hoii-luml, II Out. 11. 4S ; 1,") A. 
 K. 700. 
 
 - This clause re-enacts the old rule of law as to alternative or .successive 
 drawees. But the next section makes a material alteration in tlie law 
 respecting payees. When in case of neeil the name of a person to whom 
 the holder may resort is inserted in the bill by the drawer, he is more 
 properly an original alternative drawee, than an acceptor for honor : 
 Bytes on Billa, 201n. 
 
 47 
 
 Sac (i- 
 
 i 
 
 1 ; 1 1 
 
 
48 
 
 Sec. 6. 
 
 TriK Hll.r.S OF HXf:iIAN(;K a<:t. 
 
 Il.l.UHTKATIONS. 
 
 " Tlirt't' iii()iitli«i iiftor (lato, wc or citliciMif uh, prrmiiHo to j>ay K. S, I;, 
 or J. 1'., his giiiiiiliiiii," it not a note : ttitU v. Ihnl, II U. C. g. H. •_»». 
 
 A pniuiist! til i>iiy a sum ciTtiiin to A. or to I'>. iindC, is not a iioto : 
 ItltiiirkriilKiijni V. lUtuiili-ll, 2 h. &. Aid. 417. 
 
 \ proniiHct" pay a Mutn certain "{to A. or !i.," is not a uoto : Osi/Dnil 
 
 V. / 
 
 '1, 4 (Jray (Mas".; -t." 
 
 A |)roirii.s(! t'l p.iy looiw of two pccsons in tlio alternative, is not a note: 
 Mii.txi/in'iii V. Ori^Iv, I'.t 111. Si. 
 
 A note payalih^ to till- ■■ oiiltT of J. H. (i, for \V. M." is a promissory 
 noti", ami nc^julialiii', luit tliu fnilor.sur would 1m' lionnd to ser that the 
 
 prouL'i'ds were apjilii'd fcir M. 
 
 .1/ 
 
 iiin-o V. Ci>j\ 30 u. c. i). ]',. m:i. 
 
 A iintr payalilc to A., "or lo his wife, and to no oilier piixin," is tin 
 
 same 
 
 as il payal.le to A. alone : Mui.dk v. Jioici//, 14 U. (,'. g. B. 273. 
 
 I'dyiip wlinn 
 piiyiililc to 
 iH-ari'r. 
 tmp. Act,».7. 
 
 Payatiln to 
 morn tliaa 
 UIIP. 
 
 7. Wlicro it liill is not piiViiMe to bearer, tlio payuo must 
 lio iiaiiird nr (jtlii'i'wisc iiidicatL'd thort-iu with iva.sonablt' 
 certainty 
 
 1 
 
 2. A liill may bo made payable to two or more payees 
 jointly, or it may lie made payalile in the alternative to 
 
 )f t 
 
 one or two, or one or .some or several payees 
 
 of 
 
 A bill 
 
 ma\' 
 
 also be made 
 beim: : - 
 
 I"kV 
 
 able to the liolder of an otiiee tor the tinu 
 
 fi<"m*uso •^- ^^'^K't'^^ the payee is a Petitions or non-e.\istin<^f person, 
 non-exi-stiDg. ^1,^^, ],\\\ ^.^y 1,^. treated as payable to bearer. '^ 
 
 ' Thy payee shoidd ho particularly deseribed so that he cannot 1)0 con- 
 founded with another person of the .same name, liut if the hill get into 
 the hanils of a wrouL,' payee, unless it he p.iyahle to bearer, he can neither 
 ac(juire or convey a title : Jhjlc.< iin IHUx, 70. 
 
 Illustkations. 
 
 To con.stitute a bill, the payeo must be a [lerson capable of 1 ' .t- 
 tained at the time the instrument is drawn : Yi(li'-< \. Xo"' .\.S. 
 
 r)8i. 
 
 A plaintiff suing upon a note, which jjurports to he payal ^ a person 
 of a ditl'erent name, may show by evidence that ho was the pei.-oM intend- 
 ed : l('/7/;.s V. llanrtt, 2 >tark. '2!}. 
 
 A promissory note payable to or order, cannot be recovered 
 
 by the person to whom it was given, either as jiayee or bearer, without 
 inserting iiis name in the blank as payee : Mutiinl Safetii Insurance Cum- 
 )ianii V. Porter, '2 All. N. B. '230. See coutra: Luwtry v. titewurt, 3 Bosw. 
 (N. Y.loOj. 
 
Il.l.lvriiATIIiNS. 
 
 •nil. liil.l.s «i|' l:\(ll.\N<il'. .\^■\^. 
 
 40 
 
 In 111! iii'tioii l>y iii'liirNi'i ui;;!!!!,-*! .•u'C('|(t(ir ni a liill ii;iyalilr tn A. nr Sco 7- 
 orilcr. Ill' may •>'' n'lu'Vfd n| luliility liy t;i\ in;,' ividrin f tha tlj'' inrson — 
 wl.i> iiidorMcil tn till! plainlitl' was nut tlio rviil piiyi-f, tlidiuii "I i'"' ^imu 
 
 ii.inii' 
 
 .\f,iiii V. Yoiui'j, rr. I!, 'js. 
 
 W'lii'iiMin .luciit, having iiiumy in lii-< IhmkIs liiloni^in,' to in-* iniii' i|iiil, 
 lii.imiit a liill witli it, \\ hicli ill' iniliiisiil H|»iKilly in tin' lutur, « Im was 
 (li'iiil at till! tinu- i>l' tiic iinlniM in< nt, luit uf wliirli ciiciini^tan i> tlir a.'cnt 
 wiiK iyiiiirant : lliM, tli.it ilir |>iM|Mrty in tlir liill ](i«-ri| tn il,( iiliiiiiii-*- 
 liat'ir nl' tilt' iniiicipal ; aiiil, ron-i iiuiiith' tli.it lie nii.lil . iir mi ii in his 
 
 ■ - II. .V .\, -JOl. 
 
 cs nt lirlsollS 
 
 i\vn 1 h.ii ii'tcr ai .•*uch 
 
 M iirnii/ y. i'.ii^i /ikIki i ' 
 
 ii)/'iiii'/, .1 
 
 'hi 
 
 s rl iilsi! in.l 
 
 ki'^ an alli'iMtioii in Ihi' lau as tn the ci.i 
 
 tllcITni ilrs.:iliM'i 
 
 ■<(T null' 'J to s. (i. In l\ii;jlan'l a ili.-tinclinn has hi i ii 
 niiiilc liitwcun jnint stn.'k cnniiianii s ami tVicmlly H<it'i<'tii's, fur tlii' rra- 
 son that jnnsilii'tion as to tin; lattir was vi'stcil in justkes of the iJUiice. 
 
 l!,lk.s 
 
 i:;:is 
 
 A il'iiMinii'nt as folj.iws 
 
 (In 
 
 I.M I'.IV 
 
 tn M, ssls. \V. !•, .V M 
 
 ih inaml Wf jointly ami sfvi rally pmniisc 
 nr tiH' nia ji'i' |i:irt of 
 
 i|' tn thfir nCi 
 
 ihiin. flltO, is a nnti' njinn wliich tlic thi-ic p.iycfs may m.iinliun an 
 
 ai'tii'h 
 
 II,-/ 
 
 nil V. i.riiii 
 
 :!•-> h. .1. V. 
 
 or t'ithrr (pf ns, pinnii^r tn pay tn .\. !'.., tria.' 
 
 ur( r ( 
 
 Ins sni'cossor or simrcssois ni nttn'i 
 
 or (prih r, iti 
 
 IS a linir, • l|r Wn| 
 
 if, .\-. 
 
 ir 1i 
 
 ir tn ins successor or .sikjccssois in n||j( 
 
 iLini. 
 
 \ niil : Mrt ; ri<j< 
 
 '('/■ V. 
 
 I la/ 
 
 .'/, i> 
 
 r. ('. c. 1'. iL'i) 
 
 .\n instiiimcnt ]prnmi.>inu tn pay a sum certain 
 
 tn .1. I' 
 
 ti( asiircr o 
 
 f 
 
 tlic huililinji cnnmiittce oi the coiigri ;,'atinn of St. .InhiTs ( luireli, or \\\f 
 siu.'ccssnr iliily appnintcil," is a ])roinis>nry note; tin- woiilsheinjiiliscrip 
 
 rive cnily, as the iiayee a 
 
 nhl h 
 
 IVe nn SIR 
 
 cessor le^ially speakiiiL; as trcas- 
 
 ■r, tile huihlini; cnminittec m>t having any corporate capacity : J'til'i 
 
 .1/ //•;//,. -ji r': ('. (.1. i;. •ji;:!. 
 
 Where 
 
 a imtc was in 
 
 ulc |i;i\alih' tn the tiiistics ;ii't 
 
 liii; niiili 
 
 r .\.'.-. will. 
 
 parol I'viileiice was lield iiilmis>ililc tn show \\ ho ilu \ were. ,iml what the 
 
 triwt - Were 
 
 ,1/ 
 
 ii/iltlisdii V, 
 
 //( 
 
 4 'I'vr. !l(). 
 
 .■\n inilorseinent to pay to tlic trustei/s nl an iiiM>!\eiil tirin, witlmut 
 siillicieiilly certain : Anl'ijn v. Mr I h.injiilL ii I'. C * >. .S, 
 
 11 lining lliein, i.> 
 ill'.t. 
 
 "tin (Iciiiaml I pidini.^c to pay tn the trii.--tees of the \\'( ^hy an ( 'liiipcl, 
 IliU-rnyate, nr their tiea.-nier fnitiie time lieiii::, VlOd," isa,t:n<iil nnle, for 
 iheie i.s no iincertainty in thepajees, as the trustees alniie ale tn lie con- 
 ■ii>leru'l as payees, aiiil tlieir tre.isnier as their ayeiit men !\' to iKiive 
 
 An 
 
 ■lit : Hill nil a v. Jaiifms, L, |!. 1 (^». 1',. ;{7(i. 
 
 iistniinent made payahie '• tn the estati- u\ A. iJ., deceased, 
 
 not 
 
 a note : /.//.,/, v. Mnr^/ial/, 11 liarh. (N. \.) 241. 
 
 N'iiic' niontiis after date I iiromisc to ]iay tn the sceretary fnr tlie time 
 
 hein. <>\ tile Indian Lamlah 
 
 d Mutual lii.-iiraiice Sneietv, or order. 
 
 imp !y s rupees twenty tliniisaiid." Jleld. that the instrument was not 
 
 rtain at tliu time of iiiakini,' it : Con-it v. 
 
 th 
 
 payee luinj,' unci 
 
 S/ii/n,,/, (J K. ^t 15. ;}Xj 
 
 .Inr. \. S. (103. 
 
 A hill payalile " tn tile order of tlie treasurer for the time lieiiit; " of a 
 Hiicvolent institution, i.s null and void : Yal'f< v. JS'cts/i, S C. 1!. ^'. S. 587. 
 
 !' 
 
50 THE niT.LS OF EXCHANGK ACT. 
 
 SeC- 7- ■ •'"■niiicrly it was lieM tlmt a bill piiyaljh; to a liutitious person or order 
 
 ' Was coiii])lctely voiil, and that the iiidnrsou of sui;li a l)ill couhl not recover 
 
 against the aeceptor r li( mutt v. Fanidl, 1 Camp. 130. The words in the 
 above ehiiise, " tiie liill may l)e treated as payaljle to Iiearer," mean as 
 against those who are t" l"j made liable for the bill : VniilJaii'i v. Hank of 
 L'li'jtdiii/, i'A (.). 15. 1). 201. See furtlier the notes to s. '). 
 
 llJ.rsTitATIONS. 
 
 Wlieie a note is payable to a tietitioiis payee, and not to his oi'dei or 
 bearer, a person receiving it from a third l>arty for value, cannot declare 
 
 10 
 
 against the maker as on a note payable to bearer : W'illiani't v. J\'uX(: 
 U. ('. U. 
 
 A. .1 
 
 i-e\v a 
 
 bill 
 
 15., a fictitions person, ami negotiated it to 
 
 )th 
 
 The holder may treat it as, a bill or note wiade by .\., and presentment 
 is dispensed wiuh : Sailih v. Ii/I;niii/, "2 Star!" '2'l',i. 
 
 If a bill is drawn in favor of 
 
 a lictitious payee, an 
 
 1 that circumstance 
 
 IS Known 
 
 as Well to tlie acceptor is the drawer, ami the name of such 
 
 rawer, wlio imlorses 
 
 payee is indorsed on the bill as indorsing it to th ' d 
 t to an innocent indorsee for a valualilc considi . ation, the latler may 
 
 able to bearer : (lih^ijii 
 
 )(;rson, were 
 
 ix'covcr on it against the acceptor, as on a bill [ 
 V. Mhut, I H. 151. .")(>!). 
 
 Forged bilLs of one ('., drawn on S.. jiayable to a fictitious | 
 lefll ed acce]ttance by him and |)rotestcd, and S. requested T. to accei)t 
 them for honor, and he, assuming them to be genuine, accepted them : 
 Held, that T. was liable; and sthililf, that the ]iayee being a lictitious or 
 non-existing person, the bill was to be treated as payable to bearer : 
 /'hi//ipi V. I'll Till 
 
 L. K. 1 C. I'. 4(;3. 
 
 A distinction is to be dr 
 
 betv 
 
 the forged si gnat 
 
 lire o 
 
 f a real 
 
 ii'i'son, an 
 
 I th 
 
 signature ot a hctitioiis or non-existing [lerson. I'icti 
 
 tiousness or non-existence does not de[)eiid merely iqion the seli'ctiou of a 
 
 lictitious or iion-exi.sting name. 
 
 T 
 
 le test is the intention < 
 
 if th 
 
 !ptor. 
 
 answering; 
 
 If no one is knf)wn to exist, to the knowledge of the accej)t( 
 til'; name ami description used, the payee is non-existing ; or if a name 
 .lud ileseription is adopted which hapiieus to be of an existing pei>in, but if 
 the acceiiti. u 'cs not intend to accept the actual order of the nai;, ;d payee, 
 
 is treated as p iya])le 
 
 I' . ,- . . 
 
 md knows that he is in that sense fietiti 
 
 th 
 
 to bearer : V.tiiliano v. Bank of Emjluml, 'I'l i). li. I). lO.S ; --'3 (^ IJ. D. IH.S. 
 
 Dow 
 
 11 
 
 le- !■ 
 
 ssing of the recent statutes, the exception that bills 
 
 drawn to 1 lie oriU'' .f :i fie*-itioiis or non-existing jiayee might be treated 
 a- li,. , iiili- 1 I licarei . ,',i< U;i n] nniformally on the law of ostopjiel, and 
 
 appiux 
 the biT 
 
 I ,-uh 
 
 ain.si I he piirii"^ who, at the time they beca 
 
 '!i!/ai 
 
 not ilie lictitious character, 
 
 line liaiile on 
 if the noii-e.xisteiice. 
 
 of the supposed payee : /V/- Uoweii, L. J., //'/'/ ■_';{ (^). 15. 1). '2U0. 
 
 Where a note is made i^ayable to a firm, which does not exist, the person 
 to whom such note is given, may assume such linn's name, and so indorse 
 the note, and it will lie a good indorsement in the hands of a hoiia /iili' 
 holder : li/oi/'jrtl v. Jarh.so.t, 40 N. H. '1\. 
 
 A note drawn payable to ship Fortune or bearer, is a note jnyable to 
 bearer : (Irani v. Vawjhan, 3 Burr. 1510. 
 
 Where to the knowledge of all parties, a bill was ilrawn and iiidorsiil 
 ill the name of ;i dead man, and so accepted iiy the payee ; — Held, that 
 the executor of the dead man could recover against the aeceptor : A-hjiitii/ 
 
 li, 
 
 ■yuh 
 
 •i L. T. >;. 8. 710. 
 
THE lULLS i)V EXCHANOP: ACT. 
 
 ')l 
 
 8. When a hill contains words proliibiting transfer, or Sec 8 
 indicating an intention that it sliould not be transferable, Non-trans 
 
 _" _ _ li-nililo bills 
 
 it is valid as between the i^arties thereto, but it is not y""^'- 
 
 '^ Iin|>.Act,s.S. 
 
 negotiable : ' 
 
 2. A negotiable bill may be payable either to order or to N.^'otiabie 
 bearer : - 
 
 o. A bill is payable to bearer which is expressed to be so "in v.nMc 
 
 11 1-11 1 1 -1 • tilM-ai.T. 
 
 ])ayable, or on which the only or last indorsement is an 
 indorsement in blank : -^ 
 
 I ru il 
 I'iuti 
 iDii of il 
 
 l'l'|ltOl'. 
 
 ivvt'ring 
 
 a iiariK' 
 
 hut if 
 
 ));iyee, 
 
 iva])lc 
 
 I V. -IVA. 
 
 l)ill.s 
 reateil 
 
 fiml 
 lilo oil 
 steucf , 
 
 ])nrson 
 inlorsu 
 
 <!((, Il'lli' 
 
 ill lie to 
 
 (lorsi'd 
 tliiit 
 hjiiliit 
 
 4. A bill is payable to order which is expi'essed to be so 
 ]iayable, or which is expressed to be payal)li'to a particular 
 person, and does not C(jntain words pnjhil^iting transfer or 
 indicating an intcntif^n that itshouhlnot be transferable : ■^ 
 
 a. Where a bill, either originally or by indoi'sement, is 
 expressed to be pa3'able to the oi'der of a specified person, 
 and not to him or his order, it is nevertheless payable to 
 liim or his order, at his option. 
 
 ' It wiis foiineily ii niiittor of Joulit \\liftlur, by our liiw, it was not 
 t'?scuti:il to till' I'liariictur of a liiil of i-xi'li;iiigo tliiit it .sliouid he lugotialilo, 
 for (jtlierwist; it was tliouglit tliat it might liu (IcuiiumI to luivj no giciitcr 
 LlliT't tluLU lieiiig ovidi'uce of a contract. It was ^'oinicily liiM tliiit i'. IjiU 
 liuyalile to A. or ticiirer, Wiis not negotiable. It is essential, however, to 
 the negotiability of a bill i)ctween all persons except the Queen or (Jovern- 
 iiieiit, that it should be jiiiyable to order or beiirer, or tlnit some other 
 eijuiviileiit words should be used, Jiuthorizing the payee to ;i.ssigii or 
 tr.iiisfer to third persons : Slcny on /jVV/.s', s. (iO. There must be an inten- 
 tion appiireiit on the face of the bill .ii- in tli<- indorsement, tlnit it is not 
 negotiable. The drawing or indorsing it paviible to ii piirticuhir jiersoii 
 simjily, will not nii.ke it non-negoti;tble. See subs. 4, and s. Ii'). 
 
 Il.LCSTHATIONS. 
 
 .\ note payable to ,\., without tliu words or bearer, or order, is 
 valid: SinU/i'v. Ki'iultll, (i T. R. 1-J;{. 
 
 A note payiible to tliu " treasurer of the oori)oiiitioti (jf Toronto town- 
 ship," without words miking it iiegotiiible, cannot bo sued upon by the 
 to\vnshi])eorporiition: 7'nirnsltip ot'Toroiifo v. Mdirufi , '2[) U. Ca} \i. l.'J. 
 
 A director of ii company, jointly and severally with three others, in idu 
 ;i |)romissory not-c (»ay able to siiid eoin|)aiiy, and not negotiiible, with the 
 inti'iit that it sliould l)e used bj' the company, ui)on the credit of the 
 makers, for tlie purposes of the company, and the company indeiiiuilied 
 
 Itill |)ii.\ .i.ip 
 to il |iiiiil('ii- 
 l:n' lersciii. 
 
 When 
 
 tniiisfcrabl'-. 
 
 Hill piijiililii 
 tij oriliT. 
 
 O|.tiori iif 
 Iiii\ i.'r 
 
 II: 
 
 r. 
 
i>Z 
 
 TIIK nil I.S OF i:XCHAN(iK ACT. 
 
 Sec 8. til 
 
 in:ik( rs ;i<'ai 
 
 list Jiiihilify tluTion ; tlic ]jliiiiiti(rs dist'oiiiituil tl 
 
 noti 
 
 r for till' ci'iii] ■•my. niid ]i;iii| the j'rocftds to tlio C(iiiii)aiiy, ;iii(l tlif iiioiiey 
 
 was iijijiliid to tlif jmrpdbt's of tlio c(aii]i;iiiy, ami that at'ti'i ikfaiilt in 
 pajiiicnt tilt' (lirc'toi- ;jave seciii'ity to the iilaiiitifi's aj:aiii.st lii.s lialiility 
 updll the not? : ]1(1(1. tliat tllf ]ilaiiiti(ls were entitled to recover ai,'ailist 
 tile (leleiidaiit tlie amount of tlio note, tlionL:li lurt a iieyotiaMe iiistru- 
 
 liu !it : /Id III: (if II 
 
 rivni/f'ii V 
 
 J/< 
 
 my, 
 
 y Ont. K. 6;"): Id S. C. i; 
 
 m indor-ser of a noii-nei;otialple note, or if noyotialile, not indnised hv 
 
 tlio payee, cannot lie sued on sueli note 
 
 si V. / 
 
 i'urii. 
 
 .'u:.c. g. v.. -I'M. 
 
 A l>ill or note is a ch'iyf in (irlitiu. and tlic title to it iiia\ lie trans 
 
 fc 
 
 d 1 
 
 '.V 'i 
 
 separate writing, or liy a voluntary deed e(iii>titiitiii 
 
 ileclaration of trii.st, or liy a written contract of sale ; ('/iidu 
 
 liill.s 
 
 118. formerly it was the policy of the coiiunon law not to recognii^e tli 
 
 i-ignni 
 
 it of rhiists ill <tr/ii,ii. for the reasons Lciveii li^' Lord Coke; " .\ 
 
 ml 
 
 tirst was <!l)served the great wisdom ami policy of the sages and foumll■r^ 
 of our law who have provided that nu possihility, right, title or tiling ii; 
 
 action, bliall lie granted or 
 
 as.-igiicd to straiiger.- 
 
 tiiat 
 
 lUhl he till 
 
 occasion of multiplying of contentions and suits of great oppressions ot 
 the ])eople :"" fjimjnri's ('(isi. 10 Co. I!. IS. Ihit when the necessity ot 
 faeilitatiii'' the oiperalioiis oi trade and eummeice leil to the reeoiinition 
 
 >f tlie /'.I' lit' rra/ii/'iii, the ri;jor o 
 
 I tl 
 
 le ccininion 
 
 and iiltiniatc rece]iti 
 
 law had to lie nindilieii in ri'i:ard to the assinnnunt of hills nf exi'liaiiue. 
 
 I 
 
 ieL'islati\ e rcrdiriiitiiiii wasuiveii to such assii'iiiiii 
 
 nts of li 
 
 k -1 
 
 Anne, c. II, wiiicii priixided that pi Dinissiiry notes sinnild he assi^'iiahle or 
 the sane manner as inland hills of exehange are. m 
 
 C/iosi-.i ill arlinii, prexiously 
 
 imlorsaiiii' over 
 
 L'oordini'to the custom of merchants. 
 
 assiLiiia 
 
 hh 
 
 ill eiiiiity. wi'ic liisl made :i 
 
 s.sii'iialile at law in (tiitaiinin I S7 
 
 by the Aet.S.") Vic. c. I'. 
 
 l;. S. (). 1SS7 
 
 .).) 
 
 'I'i 
 
 leie are some 
 
 dc 
 
 ins holding that hank deposit receipts are not negiitialile ; Imt tlio.se 
 
 ihle t( 
 
 der 1 
 
 lave lieen 
 
 .'Id 
 
 itialih 
 
 iLl.rsTl:ATI(IN> 
 
 A <l( 
 
 tol 
 
 posit reeiijit 
 
 le aecolin 
 
 ted 1. 
 
 .ledgiiig the iiei ijit of a siiiii certain liy a 
 
 li.'Uik 
 
 to the ];arly d(|iositing the nieiuy, is not a neijotiaoli 
 
 instnnnint in eeuitv aii\ more than at law, 
 
 to entitle the transferee 
 
 to demand pa\nient ot the mdiuyfrom the hank: Mm.iiir v. Ui't/nl 
 
 C(ti,<iil,(')i lliii.k, 'JO r. C. C. I' I'J.'i and '.'I U. C. C. I'. W. 
 
 (if MoiiliKil V. l.'iltli, 17 (uant .'li:i; Li i v. JianL-n/ lirili-h Smlli A, 
 
 .SU V.i.V. V. •-'.Tl : M, 
 
 I'.'si.r /l,ii./:iii>i Cii.. I. i;. lie. I., ."il: 
 
 />''//-/. 
 
 r 
 
 /;!r/r 
 A !i;ili 
 
 i:i L c 
 
 ui:{ 
 
 it see the latter c; 
 
 L. i; 
 
 I'. C. lUI 
 
 deposit receipt payaMe to C. or order, w itli interest, hut will 
 
 the t'lilluwiiiij condition 
 
 '\o interest will he allowed iiiih s-s the nmney 
 
 le 
 
 remains with this liank six months; this receipt to he given up to tl 
 li.mk when iia\mint if .ither principal or interest is leiinired," is iiegoti 
 loldcr is entitled to recover on it as a ]ironiissoiy note 
 
 ilih 
 
 am 
 
 th 
 
 /{i Ci iilnil Hank, Mvrlim'x a- Block's ('• 
 
 17 Ont. R. iuA. lint see th- 
 
 prior cases aliovo referred to. 
 
 A writing, piirpoi ting to be a bank uertilicate that U. liiid di^posited a 
 sum of money in the C. I'ank, dated C. Bank, July tilli, IS.S!), and payable 
 
TIIF, lilF.l.S OF KX('H.\N<!K ACT. .) 
 
 tlip 1st Decc'iiilior then next, to the ortliT ^if TV ami on tlio rftiini of SeC 8- 
 
 on 
 
 the eertificatc, ami sii'iie 
 
 .1 •' \V.. I'l-esi.hnt, 
 
 IS 1U'L(0 
 
 tial)l 
 
 e ana a iti 
 
 U of — . 
 
 (.■\-i-|l,lll''C 
 
 Kil'jiiiir V. Ilnlk' //, 14 Conii. 'M>'2. 
 
 Juarer is a f 
 
 li srripllo person' 
 
 • I , anil a iHi'siiii iioidui'' a 
 
 Idi 
 
 Mil s, 
 
 l''iy- 
 
 ahle, may take \>y that deseiijition as wi 11 as liy an\ other. 'Ihe ((ii.fract 
 is to pay to the hearer or tlie ])erson to whom he shall drlhi r the hill : 
 
 A transfei- hy nure ihlivny, without 
 
 ■s not 
 
 if V. ViiuijhdH, .'{ Burr. I.' 
 
 Ml 
 
 lorseiiient, of a hill or note, iiiaile or j)ayal)h' to hvanr, 
 lemlur the transferor lialile on the instruniiiit to the transfcret'. 'Ihe 
 ^eniliiig to iiiai'ket of ;i hill or note ])aya)ile to hearer withnut, iml"-' -iiig 
 it, is /'?•('//("/'(('■('( a sale ot the hill or note, and there is no iin|ilie(l f,'iiaranteo 
 of the solveney of tiie maker or any other ]party: /.'///' .t on Hill", \'1'2. 
 ^ee as to warranty in sue'h ease, s. 7) 
 liegotiahle. the jiayee may make it s 
 
 Altl, 
 
 iiUl;Ii a note is n 
 
 it in fiiini 
 
 iiiihirsinur it payahle to order, 
 
 alter \\iiie 
 .liai 
 
 hit I 
 
 leeoiiies, a 
 
 t,'Xelian<{e. wliuli an iiiiloiscc 
 
 s hetweeii him and the hiddei 
 takes siiliiret to th'.' saiiii' i 
 
 daiid hill (if 
 
 instruments negotiable in the inee[ilioii : Jlri irj r v. 
 X S. (I'a.i'JtU. 
 
 llles uhiid 
 ijhtiniiii, 7 
 
 1 ui'ivern 
 Watts 
 
 lusly 
 IST-J 
 
 ' some 
 hose 
 
 hank 
 
 i.ihh 
 
 sfcree 
 
 /.'■■i/dl 
 
 ll'ni,!. 
 
 rii'ii, 
 
 \'(iil<:i' 
 
 I'lJl. 
 
 with 
 
 lloliey 
 
 to the 
 
 leuoti- 
 
 liote : 
 
 ee the 
 
 ited a 
 iiyable 
 
 ' This siih-seetiiin alters the I'ornier law, under wliieh it was hehi that a 
 hill not drawn payable to order, was not negotiable : I'lhiih ij v. U'l s/lii/, 
 2 liiug. X. ( '. '2\'.) : although the rule wis held to \<v <ith< ru i-sc in i>-arcl 
 to indorsements witliout the words "or order:"' Mure v. M'liinui;/, 
 
 I '(iiiivns ;^l I ; and evidence of a eoiitrarv niereantile 
 
 iisa'je Was Ik 
 
 hi to 1 
 
 )e 
 
 liiailiuis^i 
 
 bir : /•;-/;. 
 
 AVrv/ //,-/;,( < 
 
 'i/ii/iini>/. 
 
 i; 
 
 I'JIC. This clause 
 
 Iocs lint .\\ 
 
 IMHl. 
 
 t aiiiilv to I 
 
 nils (ir lie 
 
 ites dated jirior to the lii'st day of Si'ptcmbcr. 
 
 0. The sum payalilt' 'ly a l>ill is a sum cci-taiu witliiit tli 
 iiioaiiiii;.^' ut" tliis Act, altlioii^li it is rri|uiri'il to In' jiaiil — 
 
 {(i) With intotvst ; 
 
 t' .-iini inu-t bi- 
 rill liii. 
 lne...\ t s.'.i. 
 1 11(1. Act?. .0. 
 
 Iiitcivst. 
 
 (h) I>v statcil iiistaliiii'iit> 
 
 I ll~t,lllllUUtM. 
 
 ('•) 
 
 IjV stati'il instalment- 
 
 Willi a i)rM\isiiiii 
 
 lial ii[)MU 
 
 "aiilL ill |)ayiiit-'iit (if ;niy iiistalini'iit llir wholi.! shall 
 
 ni'fdiiH^ due ;- 
 
 ((/) Accoi'diiiL,' to an iiidicatiil rnii'df cxclianL,'!; 
 
 (ir ar''iii'( 
 
 I- " 
 
 111' iif 
 
 dil; to a ra 
 tlir liill;;i 
 
 tr ol' c.Xcl 
 
 UlUo'i 
 
 to 1 
 
 n: asceiLtiiut 
 
 as i|ii'(" 
 
 •tr,l 1 
 
 K\ ii!iii-'« 
 
 )\' 
 
 w 
 
 HTc till' .-^iim jiayaldc is (•\jirr-,s('(l lu wuids aiii 
 
 lM-rri'|i;ilic\ 
 111' IV 
 
 Iso ill fi:iuii's, ami th 
 
 I'l'i' IS a 
 
 liscrrpaiicv ln'twcrn the two, «" 
 
 ri's iinil 
 
 li«- 
 
 tl 
 
 wiinls 
 
 ic slim ili'iintnl li\- the wor 
 
 is thi' ami.uiit pMvalilc : ' '"'• ^'•' -■'■ 
 
THE I'.ILI.S OF FXC'HANOE ACT. 
 
 Sec. 9. 
 
 'I'lllll W llcl> 
 
 iiitcii-t 
 
 '\. AVhcre a Lill is expressed to bo payalile witli interest,, 
 unless the iiistruiuent otlierwise pi'ovi<les, interest runs 
 from the date of the Viill, and if the bill i.s undated, from 
 the issue theieof . -'> 
 
 ' r.y s. 'A, a 1)ill imi.'*t lie an order to pay "a sum tortain in money." 
 .See note H to that section, [t. ,'5S miti'. On a note payalile by instal- 
 ments, an action of dclit will not lie until the last clay of payment be past; 
 heoause till' (liU'iMcnt iiist.ilnients aie considered to constitute Imtone deljt, 
 and for one delit the plaintifl' can luiny luit one action of del)t,and cannot 
 .split Ilia demiind, and vex the dclitor with a multitude of suits ; JJi/Ze-i on 
 
 V 
 
 or value received 
 
 Il.l.rsTllAI KINS. 
 
 proinist' to yny 
 
 .lames Me(,)ueen and Jacoh 
 
 Mt((|iieeii, or tli( ir ordei-, the sum of tlOl'.la, cy., to he paid in yearly 
 propditions :"- lltld, that the etl'ect of this was to give two years for 
 jiaymeiit ; and that no parol evidence could lie admitted to prove that it 
 V as jiayalile in lour years, or until after the death of the plaiiitifi's" 
 father: iV((Ji, 
 
 A hill of excl 
 
 V. MrOiiand U. C. O. 15. 53(1. 
 
 liiiiL'e -vvas draw ii 
 
 ]iayalile in three instalnients 
 
 W 
 
 len 
 
 the lir.'-t instalment lieciime due, the holder presented it at the bank 
 Aviiere it Mas jiavable ; the cashiir jiaid the iirst instiilincnt and returned 
 the bill to the holder with the following iudorstmeiit : " i'aid on the 
 within §7-11. ;i(). August I'i, ISdl ;""— Held, an aceejitance for the remaining 
 instalments : iUilou v. Cmtro/ llaxl:, .") All. K.I!. 41I.S. 
 
 A note jiayable 1)y instalments is assignable under the statute of Anne, 
 and three days gi'jice are allowed on each ii'stalinent : Oridtje v. Sherbovif, 
 11 .M. k W. :{74: T.lur. 1(IL>. 
 
 1 
 
 to 
 
 v^y 
 
 A. 11 
 
 •<Ur, I'tiil."), at four instalments, viz. 
 
 tlie tirst on, &c. , beiiiL' f'-'dO ; the second on, &c. , bei 
 
 i;ir)0; the thinl 
 
 on, &e., being i"l,")((; the fourth on, &c., being tlOO; the remainder, t'O") 
 to yo as a set-oil' for an older of I.', to (!. ami the remainder of his debt 
 
 I'nm 
 
 I), to him 
 
 IS an aLrrcemeii 
 
 t and not 
 
 )te : fhi 
 
 Wilk! 
 
 ]0 A. iV Iv '.IS: M Jur. 4U."). 
 
 A iiremium note was giv(n in these words: "I promise to jiay said 
 
 comjiany the sum of i;'2\ in .--mh pertii ns 
 
 and at such time or times as the 
 
 directois of said conipaiiy niay, agreeably to their Act of incorporation. 
 
 reijuiie ;"'— Hild, 
 
 a promissory note. 
 
 ind that the w hole amount thereof 
 
 w as absolutely due : Wu-^hhuilon Mitlvtil his. Co. v. il/.'. 
 
 .'() \t. 
 
 In Quebec an action lies en a note pay.ible by instalments as Koon as the 
 first d;iy of jiayiia nt is jiasscd ; but it lits only for tb'j amount of the first 
 instidiiK lit, each of the in beint' considered as a separate debt : (.'lariliii'' 
 
 Mi. 
 
 •1 
 
 Itev. Le 
 
 ;{(). 
 
 - It is eoneei\(d that presentinent and notice of dishonor are reipiircd 
 w hen i';ieii instalment falls due, but that laches as to one instalment in 
 ordinary ca^es only discharges an indoiscr as to that one ; and that a 
 note payable by iiistidments. cimnotbe indorsed over for less than the 
 entire sum due upon it : /)'///' ^ mi /HI/.':, ."i. 
 
TFIK I!ir,I,S OF r.XL'MAN'f;'^ APT. 
 
 .)•> 
 
 jjas 
 
 -J 
 
 Il.I.I'STKATKlNS. 
 
 WlicTc ;i Kill or iirito is siiUji'i't tn ;i rduditiuii, tliiit, on cltf.uilt in imy- 
 ini'iit of the liist ilistalnieiit, tlic wliolt; shall hccoliiL' jiayalilf, and di'laiilt 
 is made, an indoisur is liablu for the whole uniouiit ; Ciiii<iii v. K'liin'li/, 
 r_'.M. >^ \V. i;i<t. 
 
 A imn transforalih^ not(,', jiayalik' in two instalments, av. on dtfaull 
 in till- tornu r, at once, is valid, and tlio maker has tliree davs ^'laee : 
 Mil/u- V /;/'/(//.-, 14 .T>,r. X. S. !IS() : \:i L. T. X. S. .St. 
 
 A jiioniissory note made on the Joth April. IST"-'. to pay UlTI'with 
 interest at live jiereent. as i'ldlows : The first payment to wit. L'4(l or more, 
 to lie madeon tli(' 1st l''el)rnaiv. ISTN.and t'oontiu' liist day ot laeli innnth 
 foilowin;,', until the note and interest shonld lie fnlly satislied ; and npon 
 default ill |iaynient of any of the inbtalmeiits. the full amount tlien 
 icniainiiii,' ilue is to lie forthwith payable, is a valiil note : Cu"/,' v. //nni, 
 •21) L. T. I!ep. ;i(i!). 
 
 ■ 'I'lie just and true exehaiiire foi' money.s that is at this day u.sed lidtli 
 in lliiLilaiid and othei' countries, i.y liills, is /Kir /irn /mi I, or value tor 
 vahu', so til, it the JMiglish e.\(diange liein^:' i^rnunded on the weiglit and 
 tiueliess of mir own money, and tiie weiglit and tiiieiiess of those of eaeli 
 iitlier eoiintrv, aeeordiug to tlu'ir several standards, pr<iportionaliie in their 
 \aiiiation. w hieii being truly and Jusliy made, aseertains and leduei's tin.' 
 price of exelianue to a sum ctrtain fur the exchange of nmueys to any 
 nation or country whatsoever : />'"/»■( x. /,(.}■ Mi ndloric, MW. Sei' as to 
 exchange as damages, s. 'u, ;uid as to how the rate of exchange is to lie 
 calculated, s. 71. 
 
 ll.H STKA rioNS. 
 
 The current rate of exchange mu>t be proved by extrinsic evidi nee : 
 therefore ii promise to [lay a sum cirtain with tlie ciurcnt r.ite ui ex- 
 change added, is not a negotiable note, but a spi'cial promise, and r( ipiires 
 jironf i,f a consideration ; Loiri y. n/i"-^! , l'4. 111., lOS. 
 
 Action oil ii sterling bill drawn by plaintitFs in London upmi ilefemhints 
 ill rpper Canada, accepted by defendants in London (one ot them lieing 
 it tlie time in London), and payable in I^niidon : Held, that tlie iilaintirts 
 were entitled to rtcovcr the current rale of exciiaiiL'c: 'if' aliir< x v. Smri.. 
 
 (1 u. c. L. .1. -n-i. 
 
 It is not necessary in an actinn un a note, due and )iayalp!e in tli.' I'liit'd 
 States, to prove the value of (hillar.s and cents in the Statis, as < anaili 
 lias a corresponding currency, and there being no par value fortiie Anieri 
 can currency fixeti by law : (in'jilii v. J iii/.^nn. LJ L. ('. ( '. 1'. b'iO. 
 
 ' The figures at tlie top of tlie bill do only, as it were, serve as tie li 
 
 teiitsof the bill, and :i hf rinf tiiercof ; liiit liie words at lcHL;tli arc in 
 the body of the bill, anil are the t-liief ami [iriiicipal substance thiicnl. 
 whereto special regard ought to be had : Muriii-i on />'///>■ (l(i."i,"i). 'M. 
 
 li.i.rsrnATioNs. 
 
 A bill was drawn in words. ■'Lay to the order of {'. t u n liundreil 
 pounds." and in the margin weie tiie tiuures t'il.'i : Ibid, i bill f.ii l.''_'(JM 
 iiiily : Sdiuitli r.-<(iii v. I'i/i' r. o liing. X. C .")(jl, 
 
 Jec 9. 
 
 i! 
 
Tin; liir.i.s ok exchanci: act. 
 
 Sec. 10. A. .sii,'ii'il ;i lilank accoptiiiico in wliicli tlio luii >unt in words w.is left 
 
 ■ — ■ liliiiik, liiit ill till.' mii-i'iii wuru tilt; tii'iiro.s C 1 1. 0. (i, Tlic(lr,i\ 
 
 till 
 
 fil nil 
 
 thu l)l;uilv u itii iiiit,' luiinlri'il and .sixty-fonr pounds, ,in<! iVaudiiirntl yultorcd 
 the iii,'iii'rs to tKil. (». (i. : Held, that no alt(;ration of thi' niar^'inal lii,' 
 
 ires coahl vitiali^ tliu 1)111 in Lhc hands of a liohh.'i- for \ al 
 
 lu; w no IS unaware 
 
 of thealteratio 
 
 Tl 
 
 le h.'ures in the niii'Mn of a hi 
 
 ■'I V. /.. 
 f 
 
 ;!o. ]'.. I). :!o. 
 
 iU of 
 
 eonveinellre ot I'ererenije 
 
 exeliaiii;*-' ai'i' merely an in 
 
 ilex I 
 
 mcl form no pait of the liill ; ai 
 
 or 
 
 in alteration 
 
 in them, without the eoiiseiit of the ilrawer, ni.ikiii'' them ediiforin with the 
 
 liod\' of the iustiainielit, dot 
 
 )t vitiate tin 
 
 Smith y.SiiiilliA K. I. 3'JS. 
 
 \VI 
 
 U'le till' mar 
 
 u'inal limire.s diU'er from the amount in the words in the 
 
 , e\ Hleiiee is inailmissil) 
 
 hil 
 
 true value : Snuii'/ir^'oii v 
 
 le t( 
 / 
 
 that the m 
 
 ru'U'in.il li'Mli'es express tlie 
 
 th 
 
 (;*(/■, ,) 1)111''. 
 
 X. ('. tj: 
 
 A hill '■ I'ay to my ordiir twenty-live, seventeen sliillin'^fs 
 
 penec,'" is a hill for twenty-live pounds seveiitiujn shil 
 
 iiiLjs ana 
 
 .1 tl 
 th 
 
 iree 
 
 peiiei 
 
 /'I, 
 
 (t'onn.) -IV, 
 
 /'/' 
 
 Tl 
 
 -> C. & !'. 4SS; s. 
 
 Ihioth V. Wiilhi 
 
 Root 
 
 Mits 
 
 lere a note was expressed to p.iy 
 
 lie liiiiiili'cil and niii'-tyoiic fifty 
 
 Held, to lie a note for one hundred and ninety 
 
 ilolln 
 
 liftv cent.'- 
 
 /; 
 
 •dshii V. IJilL ()1 111. -XA. 
 
 Issue (it a 1)1 
 
 .1 i.s de 
 
 elineil hv s. '1 : see 
 
 note 
 
 Ii.i,rsTi;\ri(iN? 
 
 Interest made p.iyahle liy a 
 
 note is pa 
 
 •t of tin ilelit, and not mere 
 
 imiiie-; lor lU.'tainiiiLr it : (raiise v, 
 
 /'.(/•,(•. •{ I'. ('. (). 11. 4.-|S. 
 
 Iv 
 
 Interi'st is recover ilile on a note at the rati s[iecitied in it till pay- 
 
 jlit : lhnrliiii'l 
 
 .;/s 11 U. (". c. \\ -r,: 
 
 Tl 
 
 ,'re(.'iiK'iit between the partie.s lixes the r.ite of interest rceoverahle 
 
 hitaiit it may li 
 
 ) 
 
 nUII'J V 
 
 Flab' 1,-, U. C. C, 
 
 as (lainiurs, liewever exor 
 
 I'. :\m. ■" 
 
 The holler sued the maker and iiidor.ser of two notes, adilini,' a 
 eoiint for interi'st ; and at the trial, oll'eied in evidenee two written 
 undertakings, one signed hy the maker .-uid the otlier by the indorser, to 
 allow him interest at the rate of thirty per ee'iit., until iiayment, in eon- 
 sideration of an fXtensioii of time. The learned judge rejected the evid- 
 eiKH', 
 am 
 
 id after iudgin"nt had lieeii entered up with interest at six pereent 
 
 1 satislieil, the holder 
 t.,tl 
 
 <l tl 
 
 le maker on his uiiilertakiii'' to n/eovor 
 
 twenty-four ]ier ei'ii 
 
 le lialaiiee i 
 
 f interest a'oeeil to he iiaid by it :- 
 
 Held, that tin' former iiidgnient was a bar to .my further elaiai for 
 
 interest upon tie.' sail 
 
 u' notes 
 
 MiKnij v. /•'<-. L'O r. I'. 1^ W. --'lis. 
 
 IlillimyMlil.' 
 
 on 'li'iiiaihl 
 
 or pivsuiitii- 
 
 tidii 
 
 Itiip. Aot.s.M 
 
 I1I>. A 
 
 is jiavnlilc on ilciUciiiil — 
 
 (") Which is e.Kprcs.sed to be ii;iyiihlc on demand, or 
 
 Inil. .\cf.s.l'.» 
 No timii. 
 
 .\i''C|it;iii<'i 
 
 WilL'll 
 
 ovii-iluc. 
 
 on presentation : ' nr- 
 
 (/' 
 
 In whicli no tnin 
 
 for 
 
 ])iyiur!it is e-xpressei 
 
 1 
 
 2. Wheiv a liill is uecepted or indorseil wlien it is ovcr- 
 <iui'. it sliali, as reg-ards the aceoptoi- who so accepts, or any 
 r who so indorses it, Ijc deemed a bill payal)le on 
 
 iinlorsi 
 
 demaiHl. - 
 
TIIK lUI.LS OF KXillANdK A(T. o? 
 
 'I'lu' words '■ lit .si,!,'lit," ill the Kni^lish Act, :uo oniitti-il in this Act. Sec 10- 
 
 it a ■ • iiiU payaliK' (Ml pi'fM'iitatidn" wmiiM iiichi 
 
 lie 11 111 
 
 11 i);iy;ilil(' oil 
 
 it." 'i'lii.s tlclhiit 
 
 loll. Wlllll (.'Oil 
 
 ipariil with s. II, shows that such hills 
 
 s the ahovc arc not ciititlcil to '"days of L,'racc." 
 
 - This aiiplics to all kiiiilft of hills which heudiiu' ox cidiic. As regards hills 
 i.iyalilu oil doiiiaud, see, s. 30 (3), as to overdue i)ills : s. 15 (•_'), us to |ire- 
 riitineiit for payment ; s. 7- as to chetjiies ; and s. S,') as to promissory 
 
 1 Mites. 
 
 Il.I.fSrKVTIONS. 
 
 .\ |iiMiiiissory note jiayahl 
 
 i: oil ilcmaiii 
 
 1. is due l' 
 
 l-o;ii tl 
 
 IV of its date, 
 
 lid tli'j statute of liniititions runs an liiist it lidia th it date : J^n /'on/ite 
 . Ainlros, -2 L. C. i;. 33.-.. 
 
 \ hill payahlo at si:.dit is not to 
 
 lie CDlisiiUTCit a li 
 
 II 
 
 |)ayal)le on 
 
 iiaiid : Aii.'iOii V. '/'/iii/ii'i-i. \\i\]. Uills. 1\) : s. c. w^'Hi. . ./'in lui V. 'J'lii 
 l)..u-l. 4-_'l. See also /.',■,,„/ v. Sun, ill. \. ( ', M. .»^ 1!. 3ilT. 
 
 A iiott; ji.iyalile to hearer generally, is payahh' on demand : Whiilurk v. 
 
 /■„,/, 
 
 iiih I'll'inn 
 
 I. -2 i;. .t c. i; 
 
 .\ note payahle only to .X., generally, is not one payahit' to hearer on 
 ■luand : Clin I ham. v. liiith r, '> 15. & Ad. .S37. 
 
 II. A liill i.s iinv;ilili' ;it a, (Ictrfiniiialilc t'litiiri' time, Ki" pnyauiu 
 
 :it a till lire 
 
 within llic iiH'iViiin''' "i 
 
 i-- Art, wllicll i> CXpfoscil to 1 
 
 te 
 
 llllli Vrts. It 
 
 :i\';iidL'- 
 
 I : 1 
 
 •M 
 
 !" 
 
 ) At a fixed iieiitid after date or si^lit : ' 
 
 l'"i.\i'il pi'i iimI 
 
 (/i) ( )ii or at a li.\od iicrioi 
 
 aliii'tlM' ori'urri'iiec ot a Afi.Tcv.Mii 
 
 ^]) •cilii'd cvi'iit wliii'li iscrrtam to lia|i[)<'n. tli(iii'j,ii tlic tune i 
 
 <'I'I 1 Mil, 
 
 n.l. Acl.i^. 
 
 oi liappciiiii^- is iinecitaiii : - 
 
 2. .\ii iiistruiiiciit c.Kpic-x'd to 111' payaMr on a conti 
 
 n- Or iMi.tiii- 
 
 Li'i'iicv is not a liill, am 
 l.'d curi' ilie d(;fi'ct. •'• 
 
 tl 
 
 ic iia 
 
 jijKiiiiiL;' oi the rvent does 
 
 ''I'll! I'VCUt. 
 
 ' Wii'^re the words in an instruineiit refer to v.h.it niiist necessarily 
 iiiien, it is no contingenc\' : Unrnsloii'-^ t'usi^W Co. It. 1!). 
 
 1 1 l.rsTK \TloN> 
 
 .\ note in this fori 
 
 I 
 
 for niys(dfand my cxeontoi-sto pay A. 
 
 Ill- her executors), one year after my death, t3(i(),"is valid: A'l »//"// v. 
 '.,..,/"■//, 10 A. A; K. ■22-2. 
 
 \ note to ]iay A, or order, six weeks .ifter tlie death of the maker's 
 lathe, , is a note, for though the contingency is uncertain as to time, 
 as in tJie cast; of hills payihle at so miuy days after sight, there 
 is no coiitingenev \vhere!)y it may never heeome payahlo : L'o'i hnii v. 
 <V,.,/v, •_> Sir. l-JO'J ; Willcs 31),S. 
 
58 
 
 TIIK iilLI.S (»F K\('MAN"(;E act. 
 
 SeC- 11- All iiistriiniciit wlicicliy tli(; dcfciiilant ])i'oniisi'il to pay A. or orilfr, 
 ' ' .1 siiiii ct'itaiii liy iiist.iliiiciits ; liiit it was iliclari'il "that it was thiTcliy 
 
 coiisiilcruil and fiillv intriicltil liv the rcccivci', 
 
 'II 
 
 tl 
 
 H! I'lvcr 
 
 of tiiis iiotr (if haiiil, tint all iiistallcil payinciits tlicicuiHiii wliat- 
 sodvci', fi'iiiii ami iiiiiiiciliitcly after the dcct'asi' of tlu' rcccivia", 
 slioiilil I'caso ami liccoiiii' null anil void to all intents and j)ni']iosL'8 
 aj^aiiist the exueiitoi's,"' is nofc a note, l)eing payahle only on a conting- 
 ency : iVurlij/ V. Jiitrrisoii, 'A A. «.t K. (id!). 
 
 - Ii.i.isri; ATroNS. 
 A note i^iven to an infant, payalih^ \\ hen Ik^ eonies of ago. and specify- 
 
 the [lartienlar day, 
 
 V. Xd.^nii, 1 I'.nrr. •-'•-'0. 
 
 *' Seventeen months .after date I ]iidniise to ])ay .1. il. or onh'i', t'.'iO 
 without interest ; oi- three years .anil five niontha after date vitiitwo 
 years interest, for value reeeived," is a valid note, lieing pajahle cer- 
 tainly at the latest day : //o;/;/ v. .)/f/ /•>/(. "i V. C. (.». 1!. ;{l<t. 
 
 note payalilt' " t\M nty 
 
 afterdate," is not void for iineertainty. 
 
 nnr is it a note payaMe nn ihinaml : it is payalil;; some time after d.ato, 
 and the jury will he judires of tlii' time of jiayment intended : Coiiiior v, 
 
 /i'oiit/i, 7 II 
 
 / Mow. 
 
 (Mi>s.) 17(i 
 
 note ]i 
 
 ly.ilih 
 
 lii'ing patent is not cvplainidile liy jiarolevi 
 
 after date,"" is not void. The aiidiigliity 
 
 hut mav he eonsti lied ;is 
 
 a note payahlc six months after date : JS'/'/io/-. v. Frolinin/lirdii, 45 Me, 
 2-20. 
 
 A proniisi' given tf> })ay a sum certain, for the jiiirchase of llr, liut 
 with a condition that it should lie void if any ilis|)iite should arisi' ri'spect- 
 ing the tir, is not a note : lliirll( ij v. \Vilkin-«)ii, A M. ilt S. '_'.>. 
 
 I[,t. 
 
 f.-^THATlONS. 
 
 A promise to ])ay sixty guineas two montlis after the ))ronnsiir sluiuhl 
 
 maiay l-Mi/ahelh I'lettv. is not a note 
 
 Kvciniihuii riiti.sid 
 
 liidiiii ni lui irnfonnit; 
 
 I It r.sun v. 'iiirri 
 
 I 
 1151. 
 
 K, 4 Mod. •24-2,* .s. 
 
 p., umnii^dij V 
 
 Ikild 
 
 will, '2 Stra. 
 
 A hill 
 
 >t(^ iiavahle on a eontingeiicv is ahsolutelv void : I'lilimr \\ 
 
 I'ni/I, -2 liing. IS5; s.}!. Cdrlns v. Fnin-itiirf, 5'!'. it. 4;{"2. 
 
 The contingency in order to vitiate a hill or note as such, must be 
 apjiarent on tin: face of the instiiiment : ll(cli<init v. I!'ich<ii(l<, '2 15. k, 
 Ad. 447. 
 
 Tl 
 
 le liapiieniii 
 
 U of tl 
 
 lontiiitiency on whiih the ]);i 
 
 lyment of the iiistru- 
 if the sale of an hotel, will not 
 
 nient i^ depeiidi lit. a'^ out of the proiliue ( 
 cure the d, feet : //;// v. Ihilfi,,;!, '2 IS. & V. 4 IS. 
 
 "Twelve moliths .iftir date 1 promise to pay A. and 1!. i'oOO, to ho 
 held liy them as collateral security for any niiiiieys now owing to them 
 hy C". which tluy may he unahle to recover on realizing the securities 
 they now Imld, and others which may he jilaced in their hands by him,'' 
 is payable on a continu'eucx- : livhiiis v. Mai/. 11 A. & M. "21^: 3 Jiir. 
 1188.' 
 
 *Tlii' rrpovt I'f till' cu.so (K'TOi stitto-^ that. '• IJr. \VitliiTl\'s son brnuj;ht the liko action 
 !■ was a iriiiili niaii. ami iiiitiailin).' mcii'liaiit, hut travi'llinir into I'lante, 
 afiiiwaril.t alliruit'd in tlie Kxihcqiier Chuuibor." 
 
 U]ion a iintc, luiil 1 
 
 and had juiltiincnl, uliirh 
 
Tin; IMIJ.S OF EXCIIAXGI': ACT. 
 
 .VJ 
 
 i*t. Whore a l/ill fxi)ic.ss(^(l to Ix- paviiMc at a lixi'd Sec.J£. 
 iMiioil aft<'r (late is issued iui<lato(l, or wIktc tlic acceptance ii.iMiiiiii«.v 
 of a I'ill payable at a fixed pei'iod after sii.dit is undated ''"''i»>' ,„ 
 
 I "^ ' Inip. Ai't,s.l2 
 
 ;iii\' lioldi 1' iii;iy insert tlierein tli(; true date of issue oi' 
 aeceptanci', and tlie bill shall i)e payable acconlinnly ; ' 
 
 Proxideil that (a) wlicre the lioldiT in tjood faith and ll^• \\ nm- ,ii.t.' 
 mistake insei'ts u wrono' date, and (n) \i\ every ease wliere I'i'i. 
 a wi'ohl;' date is inserted, if the bill snbsetjUt/ntly conies into 
 the hands of a hohh-r in due course,- tlie bill sliall not lie 
 
 \(il(lei 
 
 1 tli(;i'eby, but shall opei'ate and be payable as if the 
 ate so inserted had been the tine date. 
 
 ' Dateof "issue" is (Utinrd by s. 2, i>. .'50, ami s. '2\ . p. SO. 
 
 Il.l.rsTKATliiNS. 
 
 .\ ilioiiuo witlmut n il:it(! wiis ''ivcii tu the Imlilcr wifli ,'iii iii^ti'iictiiin 
 
 tn till in tlie ila 
 
 tv \\] 
 
 lull there were 
 
 fiiiiils t(i meet it : llclcl. tliiit ,iftt 
 
 I't^iiiiinu' it six years, the hnhler eiiiihl udt till in tl 
 tnriiaynient : j}c llitlull; ;U Ch. D. TjCI. 
 
 ite. imr [ireselit it 
 
 A r.ote takes cfl'eet hy iKlivi-ry, and finni tin; time ut its ihli 
 
 lilt 
 
 l>: 
 
 lirlivfry and at the time of the date, will Ik; inxsniiiei 
 
 \yn,„h;,iii 
 
 ;j vt. s2. 
 
 .\ Ncrva Seetian, re>icleHt in I^'ranee. L'ave M. an aceuminndat imi imte 
 
 <lMted Jlalitax (!tli, 1S7"), and mailed it to him on the 
 
 11 th 
 
 lime 
 
 '111 
 
 iiiiie. 
 
 <ltli .hiiie lieliig Smid.iy, M. altered the (i t" 8, ami insertiil 
 whieli had been (imitti'd ;- tlild, that as the alti-ratioM was made to 
 ciiirect a nianif(;st mistake on the ])ai t of the niakei', the n.itu was gijod : 
 .M< i-'hnir-i liiuih V. S/ir/liiu. I Kuss. ^^ Cel. i:{!t. 
 
 A joint note made by two pirsons apiJi ared on its faie to have been 
 (ilti red in the date. The note wa.s (U!i vend to the id;iintill' by an ai,'ent 
 of one the makers (defendants) in its altered state ; the other defendant 
 was ealh'd as a witness, and stated that he could not w i ite, or read w litiiiu' 
 Inyoiid his own name, and eoiild not say that the note had been altered 
 since he .si;,'ned it ; — Held, that the jury miidit infer that the .dtciation 
 Was made before the note was sii;iicd : S/njii \. Wnl-ih. ."> All. \. li. .'{4.'}. 
 
 Hold 
 
 er IS lU'lmci 
 
 leti 
 
 I'y 
 
 '2 ; see note '•>, p. 2 
 
 If) 
 
 due course " is till' expre.ssion used in tlii 
 
 Act, and 
 
 III''. " lloMcr in 
 jipinntly siilisti- 
 
 tiited for '■ hdiiu jiih: holder for value ' loriinrly used. See tiic dclinitioa 
 
 ,'iven m s. 2; 
 
 ■si. 
 
 \X\. Where a bill or an acceptance, or any indorsement nu 
 ell a bill, is dated, the date shall, ntdess tin contfary i 
 proved, be deenie(l to be the true date of tlie drawing', 
 acce])tance, or indorsement, a.s the ease niav be : ' 
 
 S CVI'Irlll'C 
 
 lull . \rt,s.i;i 
 
 n (1. \.-t, 
 s. lis li). 
 
(io 
 
 Tin; liii.i.s oi' i;\(iiA\!;i', act. 
 
 2. A liill i> not iinfilMl liy rciison only that, it is antc- 
 ati'il 111' ]pM^t(luti''l, iir tliaL it bcar.s iluti,' on a Sunday - 
 
 Hoc 13. 
 
 <'< II.UI. 
 
 toiiiviiuaiitu. ,)!• oilur null jurjilical day 
 
 Tl 
 
 \v lii'iiilU I'lli'ii CISO lll.'liU' I13' tllr lUiMlllclioU of llli; hill, .^ln 
 
 )W111'' itN 
 
 il.iti.', it) r(liiitt!ilili'. 
 
 Ii.i.rsriiA TiiiNs. 
 
 A note ilatoil 'JOtli Sojitciiiln'i-, I.S47, ]):i.\;ilili' t'i)ur innntlin .it'tcr il:it< 
 wii.s ;ii;ci'|)ti'(l liy tlu' cK trucl.uit . At tin.' trial tli(^ ilati' of .iccciituiiL't.' wa.s 
 imt ])ii)\ uil, liiit it was |ii'<)Vci| thai thu clufiiidunl lu'ciiiui of ii'_'e 
 on tiio -Jlth I)(triiih.'i-. hStT : llrlil, tli.it tliui 
 
 (• w.is no I'vnhiicc o 
 
 IjL'iiig ail iiil.iiit jit till,' tinii; of his iicci'jitiii;; thu liill : Ihtri 
 
 ,f h 
 
 ClU'ti 
 
 1; 
 
 .). j'lx. •_':«; hut soe /,'«/» z'/^' v. li<Ufll, I'J <". I'. 
 
 A hill of 
 
 cM'liaiii!!.' liius 
 
 t, ill the ahauiicii of ovidci 
 
 ifc, to raisi- a pre- 
 
 iiii|)tioii to till! roiitrary, 1)0 takiMi to liavd huuii ilr.iwii mi the ilay on 
 
 which it hears ihiti 
 
 iidi r.ioii V. 
 
 I! 
 
 S .Seott Ass. 
 
 'i'ho reason of Siiiiiliy not lifiiiL; ;i ihiy of Imsiiiess, is the ileeriit 
 
 (ilisfi\ .iiice of the Sahhath :'' I'l r l\yre, ('..1. 
 lU. (117. 
 
 Jl-Lll.STK.\TI(l.\S. 
 
 .1/- 
 
 lirUt, 
 
 H. 
 
 L'liiler the Lonls l),iy Act, S N'ict. c. 4,"), s. "J, a note luailo on Suiulay 
 
 111 ]);iynieiit ot 
 
 Ills sohl on that day. is void, as hi'tween thu oiiLrinil 
 
 ]),irti(S, Imt iK.t as ayiiiiist an indorsee for v.iUie and without notice 
 //i,ii/i.<h>ii V. J'arsuas, [) U. V. (^ 1!. tisl ; Crom'ik v. Ovcrhnllj'i; II U.(". 
 (,>. 11 .".■). 
 
 An indorsee may recover au.iinst the acceptor of a hill d.ited on Snnday, 
 wiien tlieri! is no evidence that the hill was accepted on that day : liri/lnf: 
 V. Lrri/, I C. &..]. ISd. 
 
 A promissory liote, puyahle to order, may he validly made in (j)iiehee on 
 the Lord'.s Day, conmionly called Sunihiy : Kturmi/ v. hii/r/i, 7 I-.. < '. ,J. 151. 
 
 A promissory note was executed on Siiiid.iy. hut was not delivered to 
 the payee until the following' Wednesday : Held, that it took ellect at 
 
 tile t iiiK 
 
 .f 
 
 li\er\-, and ua< va 
 
 did : Friisi'h v. ILIJ. „, U) Mi 
 
 .\n indorsee of a hill indorsed hy a payee, who died hefore the day 
 which it hole date, may u'ivc evidence that the hill was ])ost-il.ited, and 
 may make title tlirou>;li such indorsement: /'usi 
 
 V, Xoiih, \:\ Ivist •")r 
 A jiost-dated chcipU' j,dveii and received, with the intention that it 
 
 slionld 1)1' held ovi 
 
 which it \\;is dated, is a hill of exchan 
 
 not presented for piymeiit until the day on 
 
 d therefe 
 
 express authority, one partner of a linn of solicitors cam 
 ]iartners hy dr.iwiiii,' a jiost ilated elieiiiie, as a hill, in the iim 
 
 the ahsence of 
 not hind his co- 
 
 if th 
 
 hriii 
 
 'iirMi r V. 
 
 Miirk, 
 
 L. K 
 
 Kx. Ki.S; 10 L. T. N. S. -Jli 
 
 CdiMjiutiitinii 14 \\']|0]',.> a bill i.s not ])aval)lL- on demand, tlie day on 
 
 of tllJli' 
 
 ini|..\rts.i4 wliiL-h it falls due is detefniined as follow.s 
 
 111. I. A. 
 
 davs 
 
 iillowc i. 
 
 \V 
 
 (('j TliiTL' days, called days of gi-ace, are, in every ease, 
 lii've the bill itself does not otherwise provide, added to 
 
TllK lill.l.S «)l' KX(|lAN(iK ACT. 
 
 01 
 
 tlir tiiiK! of |>ayiiM'iit iis lixid liy tlic liill, ami tlir liill i^ 'liir Sec 14. 
 iiii'l I'SiMiMc oil till' last diiN' (if L-rucu : ' riovi(|c(l tlial — 
 
 CI) Wliriicvcr the last <lav of uracr fnlis (Hi a 1 al Imli- i-""' 'in.v of 
 
 ' -- uTlll'l' II 
 
 ila\ 111' linii iiiridical ilav in tlir I'luxiiirr wImti- aii\- >iirli '"''''';'>; „, 
 
 •' • • 1 ml. Act,*. 2. 
 
 liill is jiayalilc, tln'ii tlir ilay iirxt i'nlliiw iiii;-, iml luiiii;' a 
 lrj;al lioliday or noii-jnri.'.'.^'ial day in sudi l'in\ incr. >|,iill 
 III' till- last day o{' uracc :- 
 
 '2. Ill all iiiattrrs relating' to Mils of rxcliaiiuv (lir rollow- wimi me 
 in:^ ami no otliri' sliall lir olisrrvrd as Iri-al liolida\'s or h-iiiiiivs. 
 
 iiKii-iiiridicial da\s, thai is to sa 
 
 y 
 
 Ih ■|'..C\CI'|lt 
 
 {(I) In all tlir I'loviiic'cs of Canada, cxci'jit tlir I'roviiicr imhiip 
 III' (.Mirlirr, — Suiidavs : Nrw ^'rar's l)a\': (lood Friday ; '."I't"' 
 l'",;i--trr Monday: ('lnistnias l);iy; Tin- liirtliday (or tlir 
 day lixrd Ity pruclaniatioii lor tlir rrlrlnation of tlir Kirtli- 
 
 I a\ o 
 
 r tlir iriiiiiiiin' Sovrn 11:!! : and if'suc-li birthda\ is a 
 
 Sunday, tlirii tliu iollowinn' day ; 
 
 Till' first day of July (Douiinioii Day,) and if tliat day 
 is a Sunday, tlirii tlir second day of duly as tlir sjuiic 
 Imliday ; 
 
 Any day ajipointt'd by proi'laination for a public lioliday, 
 or for a rrnrral fast, or a ^'riirral tlianksi^iv iiii;' t1iroUL;liout 
 ' 'aiiaila : and tlir day next following;' Xi'W Vrar s l)ay and 
 ' liii-^tiiias Day, wlirn those days rcsprrtivrly I'all on 
 
 Sunday ; 
 
 (/') And in tlio Provincr of <^)urbr(• tlir said days, and '" '^ 
 also— Till) ^^piphany ; Tlir Annunciation; Tlir Ascriisiou; 
 t'oi[iu.-^ ('hiisti; St. Peter and St. Paul's Day ; All Saii\t.s' 
 I'ay ; Coiierption Day ; 
 
 mcIk 
 
 ('■) And also, in any oik.' of the I'rovinces of ( 'anada, s;.((iiii h 
 
 <lins ill 
 
 :ili 
 
 y day appointed by proclaiiuition of tlie fiieutrnant I'liviuef 
 
 •io\t'inor of such Province for a pnlilic holiday, or for a 
 la>t or thankso'ivinix within tlic same, or br'iuL;' a iion- 
 
 iiiric 
 
 lical day by \irtue of a statute of such Province : -^ 
 
 I 
 
02 
 
 TMl'; lill.I.S (tF KXcMANUli ACT. 
 
 Sec 14- ;i. Wlicn? u liill is |)iiyal>l(! at sit^lit, or at a (ixi-il juTiod 
 
 Wh.ii liim- after ilatc, al'tni' si<f|it, or alter the liai)i)eiiiiiLr of a sijeeifieil 
 
 111 )1\.mi ('veiit, (lie lime of piiviiieiit is ileteniiiiicd 1>\' excliuliii'' tliu 
 
 ii)ii.A.t,i..'j». (ijiy iVoiii wliidi tlie time is to lieyiii t(» run ami l>j iucliKl- 
 
 iiij^' till' ilay of j)ayiiieiit : • 
 
 "l:'msiMnm 4. Where a hill is |iayahlt! at sight or a fixed period aftei- 
 
 i'iia.Al;'t,s.llx' ■'^i^'ht, the time hegiiis to run from the date of tiie accept- 
 
 aiH'e if tht; hill is aceepttMl, and from the date of noting or 
 
 protest if the hill is noted or protested for non-acceptance, 
 
 or tor non-delivery : •"' 
 
 M'.nth. ,'). Tht,' term "Month" in a hill means the calendar 
 
 month :'• 
 
 Hiiw inuutlm 
 III liilJM art! 
 conifiutiHl. 
 
 (I. Eveiy hill which is made payahle at a month (,r 
 months aftm' dati; hecomes due on the same munhered day 
 of the month in which it is made payahle as the dii\' on 
 which it is dated — unless there is no such day in the month 
 in which it is nuule ])ayahle, in whi(,'h case it hecomes due 
 on the last day of that month — with the addition, in all 
 eases, oi the «lays (jf grace. ' 
 
 ' Tliusc (lay.s of gracu, wliioli take tlicir iiamu frniii hiing days uf indul- 
 gence, seem to liave had tlieir origin at a wry early piTiod in the history 
 of negotialile paiier. 'i'huy were ))i()l)al)ly introduced hy tiie usage of 
 merchants in the iirst place to enable the acceiitor the more easily to 
 make payments of his aceeiitances, as they heeanie due, which as the 
 payments were ail to be made in gold and silver, nught s.imetiiiics from 
 the occasional Hc.u lily of the precious metals, become a matter of no small 
 ditlicultv ium' e'ldjiirrassment ; and in the next |)lace to point out to the 
 holder \ tr,t ti-ne he TU'^^ht reaMonnbly grant to tiic acceptor for such pay- 
 ment, witliou^ I'.'iii,' ^'iidty of laches, or endangering his right of re- 
 course, upon the ultimate non-[iayiiicnt of the bill by the acceptor, 
 against the other parties thereto. The usage Mas at tirst iliscretionary 
 and voluntary on the part of the holdei', and gradually from its general 
 convenience and utility, it ripened into a positive right : Slurij on llills, 
 s. 333. The niimlier of days of grace varies in dillereut countries from 
 .) to 15 days. In some countries, especially whci'c tlu; l'''iench code 
 prevails, no days of grace are allowed. Days of grace were allowed on 
 promissory notes by 3 & 4 .\une, c. 9, as notes were then i>ut on the same 
 footing in all respects as bills of exchange : /iroirii v. ll(intd< ii, 4 T. R. 
 151. The general rule of law is that " days " mean consecutive days, 
 
Tin: Hii,i,s (•!•• i;\('iiAN<iK A( t. 
 
 6H 
 
 I'Xci'iit wliiTc Suinliiy is till! lir.st or tlic lust il ly. I'dit in coiimicrciiil See 11. 
 «n>ti'H it Im Hdmetiiui'M (ttliiirwiHc, hucnuNi! nu'icaiilili' cniitiarts iin; tn Ih; ~~"' 
 
 idlistruuil witil rt't'tJI'UllUU to COIIIIIinru'iill usilgc : /Irnirn \. Jn/iil^nii, 10 M, 
 
 fi W. '.i'.U. Days of ^'iiicc mv not allowed to 1> 
 or 
 
 |»iyi 
 
 oil ilcniiiiK 
 
 On pruHuntation, " or "at sij^lit." Suu fiirthur, note I to h. lU. 
 
 1 r,LI'STIl.\TI()NS. 
 
 I!y iisii;,'!' in ('anailii, all Kills of cxclianj^e arc alloucil tiiruo dayH of 
 
 race alter l)ci(iininj,' ilin'.ji 
 
 mil il 
 
 ili'i' to liolil the iiiilorsi'i's lialilc, 
 
 raci', with 
 
 • li'iiiaml of ])ayMi(iit oiij.'lit to l)0 niailc on the tliiril day of 
 lirnti'st and iiotilication if imt ii.iid : and tl 
 ciliscrvcd I'Vrii wlicrt; the liill is iiiadc payaiili' at tli 
 
 toriiialltlrs arc 
 
 c rcsKlciu'i! o 
 
 to III 
 
 f th 
 
 linjilir liiiiiscll : /\iiii/i/i V. liniiL ill' Ml. 
 
 ,K I \..c. i; 
 
 w. 
 
 '11 
 
 ic maker of a note p;iyalilc> Ity instaliiii 
 
 iits is entitled to tlie dayn of 
 
 j,'raee upon the falling iliu; of hinli instalment ; Orhiji'. \. Slu rlib 
 .M. \- W. .•»74. 
 
 li 
 
 - This clause is taken from ( '. S. ( '. e. \'1.\, 
 
 for d 
 
 iiiier an a( 
 
 ■tfall 
 
 s on a day iiimn w Inch the puinie ()lliees ari 
 
 \Vh 
 
 Hi 
 
 the last (I 
 
 ly 
 
 '1. i-y 
 
 reasiiii of its lieiii"' a holiilav lln'i'e, then such d:i\' is not to bu reckoned 
 
 ]VUki 
 
 /iril/u 
 
 I M. it (ir. .',", 
 
 See also s 
 
 iti. 
 
 " This is a re-t'iiaetineiit of C. S. C. e. I'J.'i, a. 'A. Sunday, Cliristnia.s 
 Hay, (Ji)od Friday, a [mhlio thanksgiving or fast day, or any festival, on 
 which a man is forbiddiMi liy his religion to transact any seciiliir atl'airs 
 (for the law-merchant respects the religion of dillereiit people), is not to 
 he reckoned in computing the time when iiotiee of dislionur sliiudd lie 
 given. 
 day, Ir 
 
 a man receive a 
 
 let: 
 
 er col 
 
 taiiiiii'' iiotici' of disliDiior on such a 
 
 it h 
 
 mid to open it, ami will he coiisi 
 
 1) 
 
 dered 
 
 IS liavini' receive! 
 
 no 
 
 tii'c on ihe next day : /)_///'••■ "// /,'///■,, •_'•_'(. The dates when the special 
 
 estiva Is occur 
 
 in th 
 
 i: year, may lie ascertained troiii an almaiiai 
 
 the ( 
 
 oiiri 
 
 t agreed that the almanac is part of the law of England, of 
 
 All 
 
 ich 
 
 the t'ourt must take judicial notice :" lliyiiin, v. I >i/i i\ V) Mixl. 41. " But 
 the .ilmanac to go hy, is that annexed to the ('oninion Prayer I'.ook : ' 
 hrini'ih V. /'< li-iits, (i Mod. SI, .s. p. Tiifloii V. /hir/.r, (i .Jur. X. S. !IS:{. 
 
 III 
 
 The 
 
 ,'uiieral rule for the coni|iutatinii of time ti.xed by statiit<! is 
 
 unless there is something in the statute to the eoiitrarv, to hold the lirst 
 
 dav excluded and the hvst day iiKdiided : A'l 
 
 .liistici's o/ Cniiilii iliiit'l. 
 
 4 X. & M. ,'?7S. Where goods were sold to be paiil for "in two n 
 
 ilh 
 
 tiiii 
 
 <lav of sak 
 
 it was held that the last day was included, and the tii>t day, the 
 
 aw excluded : HV//A v. / 
 
 iiiniKi II' r. 
 
 :i M. .V \V. 47 
 
 T 
 
 rule for deterininini' whether, i 
 
 n computing time from an act or e\eiit, 
 
 the di 
 
 iv is to lie includeil or excluded, has b 
 
 th 
 
 ■itated : VVli 
 
 th 
 
 act done, from which the computation is made, is one to which the )> irty 
 against wdioni the time runs is privy, the day of the act done may reason- 
 ably lie incluiled ; but where it is one to wl ich he is a stranger, it ought 
 to be excluded: Ltsli-r v. Varlaml, l.'i \ .'S. "248. "Our law rejects 
 fractions of a day more generally than the civil law does. The etl'ect is 
 
{}[• 'iiii: iiiLi.s (i|- i:xniAN<;i; A( r. 
 
 Sec 14- U) rt'iidiT till' (lay a sort of iiidivi.sililc puiiit, so tliiit any act ili'iic in ''■■ 
 eoinpass of it is no inoi-c refiTraMc to any oii',', tlian to any oilier, imrtion 
 of it ; liiit tlic ai.t and tlic day arc co-extonsivc ; and tlicrcfuiu tlic ait 
 cannot |iro|ifily 1pc said to ln' passed until tlio day is passed : /'i r Sir W. 
 (Inuit, M. U.. //</'/ 1 ."> \'is. '2'u. W'JRi'c it is nuccssary to show the tini"' 
 .•it whieli two eVL'iitti took phioo on tile same day, the ( 'ourt may enter 
 into the i|iustion of the fiai;tion of a day. as the piiitienlar hour at which 
 jv person died : L'/ii/r/i v. SmUh, ,S I). I'. ( ', '.V.V, . Wliere the eonijjiitatiiin 
 of time is from rn aet done, tiie ilay on whieh the aet is done is to he 
 included in tiie reckuning : C((xi/' v. li'inhtl, .'} T. K. ti'2.'{. See also s. '.II. 
 
 '■ TJie noting a hill for protest, anil tlu! e. 'tending of the protest m/ed 
 not 'le done on the s imc day, lint hotli acts must hear the same daS. 
 S. ."il sail s. 1 priividrs " .Snlijeet to the provisinns nf this .\et w hen a hill 
 i.s [inuested, tlu; [irote.st nuist he made or note. I on the ilay of its cli^luinor. 
 When a liill has lieen duly noted, the pi'otesL may lie suhseipicntly 
 extended as ei' the date of the noting.' See the notes to s. ."il. 
 
 " liefoi-e th" Inrer|i''i't;itinu .\et, w lii'n the wurd "month" was used in a 
 statute without the addition of the wonl " e,iU>nd;ir," or any orlier \\ ord- 
 to show that the k'gislature intemleil " calendar," it w.is nnilerstood to 
 mean a lunar month : Laran v. Ifntiticr, (1 T. IJ. '2H. I')iit in the ease oi 
 bills and n<ites. ,-in 1 otiier mercantde eonlraets. tin; rule wns otherwise, and 
 liy custom of trade, when the hill is made p.iyalile at a month or month-- 
 after date, the computation must in all cases lie liy calendar, and not hy 
 lunar, months: ('/lii/i/un /v7/s, -100. 
 
 " This re-en,\ets s. I of 1!. S. ('. c I'J.'i. .\3 all tlie montiis of tlie year 
 have not an eipi.-d nuniher of days, the following example may illustrate 
 luiw the time, inel nding days of grace, for the payment of liills or notes 
 sIkiuM lie eom])iited. .\ hill or note dati.'d the 'Jstli Xovemlier, another 
 <m '2'.hh XoNfmlier. auil anotlu'r on the ."iOth Xovendier, each heing pa_\ ahle 
 three months aft<r <late. all fall due on the .'{rd .M.ircli, in the following 
 year. 
 
 I ."». Till' (Ifawt'i- ot" ;i liill nnd any iiiiluvscr may iiisci't 
 .'. til 'iL'iii till' ii.iiiii' 111" a ])L'r>i)U to wliiiiii tlir Imlijor may 
 7 resort in casi' ul' nrcil, that i.s to sny, in cast; the liill is dis- 
 boiioicil liy iHin-accciitanct' or nDii-paymtMit, Such ju'ismi 
 i.s caili'd till' I'l'i'ori'i' in case of iit'cl. !t is in tin- ti|iti(in (if 
 the lioflri' to i('>()i't to th'' I'L'fi'it'o in ciist' ol mt'il nv iiul, 
 as h'' thinks lit. ' 
 
 ' .\ stranger to the drawer and indorser ni.iy intervene .^•l'/'r'( protest, 
 and accept. .Vnd it is no olijection to siicli intervention , .'ind does not 
 inip.dr .such aeeeptoi's i-emeily against the p.irty for whom he intervenes, 
 that it is done at the request and umlef the guarantee of the drawee : 
 
 Ki'fi'rfi' ill 
 
 rase of IHO 
 Imp. Art, -i. 
 
 liid .Vit,-'. 
 
 A'r, 
 
 !"■' 
 
 tltl 
 
 nil 
 
rwK i'.ii.i.s OF i;.\(iiAN(.i', .\cv. 
 
 65 
 
 h'niii'i \- /!ki/'Ii-</. I IV't. r. S. -J.")!). Srr a 1 SI. /•/(////'//< V ///( T/mni. I,. 1!. I SeC 15. 
 ('. I'. lli.S. A liill must lie protcstiil i.r ii'ih'il iuv lUMti'st, licfmi it i an ]»■ 
 i)ro.SL'iitfil tu the " rofciTc in case of iiccil." Scu ss. (it-()7. uihlcr tlic 
 titli' " Ac-ct'iitaiK'f and I'aynicnt for Honor." 
 
 Hi. Tlif (li'iiwt'r oF ii liill, ami any 
 llu'icin an cxtJi'i'ss stip'.ilatioii- — 
 
 iihlwiN.'i'. 1 
 
 luiiit lialiil- 
 
 ilv. 
 
 lllip.Art.S.lS 
 
 ((I) Nc^-ativino or limitiiii;' liis duii li;iliilit\' to tlio 
 
 iKMill'l 
 
 (h) Waiving-, as rcL;'ai'ils liimsdl-'. some or all tlic lioMn's v 
 
 (luLies. 
 
 " It was always conipett-nt fur a ilrawor or in<l irscr to limit iiis lialiility. 
 A (Irawi'iLC or inilorsenniit is rcstrii'tivc wlii^ni* restrains the ncL.'"tial>ility 
 111' till- liili til a |i irtii;ular |)cis.iii or tnr a iiarti-iiiai- ]iui'|iosr. An imlorsc- 
 niciiC is qiialilit'd ulien it restrains or limits, or i|Uaiities, oi- cnlar^'i's, tlu' 
 lialiility of tlu' iinlorsir in any niannor clillcrent from what thu law gcni'r- 
 .iliy iiM|>iiits a,s to his true li,-i,liility iliMluriliir liiini thi' nature of the 
 instruiiieiit. An indorsement i.s eonditinnal wlienitis made uiion sonu; 
 
 (•(iMilitiim w liiili rs eithei' to i.'ive ( 
 
 ll'ert t( 
 
 I, or avoii 
 
 1 ir : S/n,-i/ ,,ii Hin.< 
 
 ■_*(Mi. A man may indorse a. Iiill witlmut ineurriuL; any ]ier>iimd res|iiinsi- 
 
 iditv. 
 
 iiy expressing m his i 
 
 adiiisenieid- tliat it 
 
 i-. made w ith thn ou 
 
 dil! 
 
 ration that lie shall not in- Ii dih' un default of aeeeptanee, nr payment, hy 
 the drawee, sueh oualitied indorsement uill lie made li\' \\ritin'' in 
 
 /V coiii'^i- ll) UK 
 
 lieiii-h the w<irds ^'snii rirt)iir<," or in Iviglish " iri/lmni 
 
 ir any other eipiivaleiit expressiiui ; and this is tlie jtroper mode ol indorso- 
 
 nent liy an agent : /l///i.s n/i /lilfs, 117. An indor.senient with tiie words 
 
 silil" I'lf I HI /•■'■■, or " iritli'iiit 
 
 indursei, and wil 
 
 !■( I'niir.o , wi 
 
 11 iiei'ative the lialiilitv of tlio 
 
 iply pass his title to the liill, but will iml alliit its 
 
 itialiilitv. \o KuLdisJi 
 
 I ease on sueh a restrn.'tive indoisemeii 
 
 tof a hill 
 
 1^ lepiil'te 
 
 lilt th 
 
 e CMS,' ( 
 
 ll 
 
 le mdorsi ineiit " w 1 
 
 if 1. 1 iris \. .]fi/\'ii, I., j;. •_' |'",\. ."iT >liiiws that 
 thoiit reeiiurse " on a liill nf lading, exonerated the 
 iiid.iiser from lialiility. 'I'he " negativing oi limiting his ciwn lialiility to 
 the hnjder '' doe.s not apply to the dr.iw ei> ; ainl tlioii:di it a)i]ii'ar.^ at 
 variance with the detiiiitinn in s. ,"> that a bill is an •' uiuniiditioual order," 
 
 it is (inly uneonditiniial ;is respe'ets the dra 
 
 iwee when 
 
 he, 1: 
 
 _\ aeeeptlllg 
 
 the hill, heeomes the acee|itor, subjeet h'lVMVer to the ipialilieal inns de- 
 lineil in s. lit. 'IJie Indian .\et (s. TilJ) alsn provides that an indni.-ei- may 
 
 isee -11 eM'iUileS 
 
 i\' hide his (iwn liability theri'iii, and that "where an iiidi 
 
 hi^ li.ihility, and afterwards beeonies the lujlder of the in>liuijient, all 
 
 intermediate indorseis lUv liable to him." 
 
 ri.i,r>Ti;ATioNs. 
 
 I''or every praetieal purpose, au indorsement "without recourse" 
 r.y be plaeed upon the same footing iis u note payable to bearer, or 
 9 
 
GG 
 
 IIIK I'.ILI.S OF KXCIIA.NGK ACT. 
 
 Sec 16- traiisfcred V)y dolivciy. Tlie iKirty .so making tlu> transfer docs luit 
 — ~-' tlicicl.v iiRiir tlic oliligiitidii Of icspoiisiliility of an iiul(jr.s(.!r : J>Hiiioiit ■•. 
 
 \yiiiun,i.<i,u, '1 r, ('. l; ,). x. s. •_'!!•. Sec .s.",")8. 
 
 fii an agrcunicnt ' y wliicli (Icfumlant agrcH,'(l to kocp tliu ]ii;untiir"s noto 
 r'lH'Wt'd until tlif nial.ifing of T. & Son'.s note ; and a.t tin; maturity of 
 T. it Sou's note, " to procure the said 'V. & Son to renew tlu'ir f^,'^{) note, 
 liy giving their seven notes for e(|ual unionnts ]iayal)lo to my order, and 
 |)ayal)le in one, two and three montlis," &c. ;-- Held, that the \^•orlls 
 " ])ayal)le to my order," did not neet'ssarily impt)rt an unconditional 
 iuilorsement by defendant of the seven notes, lint might mean only sudi 
 an iudor^elMent as would (lass tlie pi'operty in them to tlie plaiiilill ; that 
 evideui.-e of eonversatious lietucenthe parties lieff)re niaUiug the agree- 
 ment, and of the surioundi'.'.g eireumst;uiees, was therefore admissible to 
 h\uiw its tiue meaidng. And it appealing that anothi'r note for S7'5'l. also 
 payal)le to difendant"' order, was indorsed by defendant " witluuit 
 recourse,"' and that the j)laiutill' designe<lly left the agreement doubtful, 
 HO as to insist upon an unconditional imlorsement as to the others; — 
 Held, that he could claim finly that these notes should i)e imlorsed as 
 the lirst one was ; McCiirthij v. Viii< . •2'2 L', ('. ('. !'. 4.")S. 
 
 ii. aeteil as a'.'ent in .Malta for A. for liie ])ur])iise of buying and remit- 
 ting to him in Ivigland bills on i'higland, on account of money received by 
 l>. in .Malta. In the course of his agency he ])urchased bills in Malta, 
 and imlorsed them to A. without nny icservation in tlu' indorsement as to 
 his liability ; -Held, that in the absence of special cireumstinees showing 
 tiiat any liabibty w as inti'iide(l by the general mercantile l.iw uliieh must 
 be taken to bi,- in foi-ee in M.ilta. IJ. the agent was not li ibic to -\. u])nu 
 the bills being dishoni.rcd ; C\i-^t>'ii/itc v. Jliif/ii/icj, 10 Moore, 1'. ('. V. 
 !I4. 
 
 - These duties are dclincil under the title " (Jenenil l>uties of Holder, " 
 s. I>n ' / Kcq. The obligation crcateil by law in cases of imldrsement, is 
 conditional and ri^piires the holder to make due demand, and to give due 
 notice to the indorser of tlie non-ai'ce]itan(^e or non-]iaynient of the bill, 
 and if lie oiTiits to ilo so, the indorser is disiharged. But an imlorser may 
 absolutely guarantee the payment of the bill in all events, and dispense 
 with any such demand or notice : Stor;/ on Hill-', s. 21"). 
 
 Accpiiinc' I -J 'I'll,, at'ceptfxnco ot'al>illis tlic siirniHcatioii l>v tlio 
 inin..\.t,M_7 ili-iwc'c of his assent to tlie onler of tlu' drawer: 1 
 
 Ind. .An, s I . 
 
 r.m,iiti-.n«r.f 2. An acceptance is invalid unless it complies with the 
 
 followiuL!,' conditions, namely :- 
 
 Must ti. {(() It must be written on the hill and be si<med by the 
 
 I'iii. diawee. The mere .sig'nature ot the drawee without 
 
 additional words is sufficient :- 
 
 .\ii.i ii« fir (/,) It must not express that the drawee will i)ertbrm his 
 
 till' imjiiunt ' ^ ' 
 
 of luoiH-y. promise by any other nieaus than the payment of money; 3 
 
THE P.U.LS or rXCHANGK ACT. 
 
 f)? 
 
 Where in u bill the (h'awce is wroiiLi'lv ilesijfnateil or Sec 17. 
 
 his iiauie is unsspelt, lie may aecrpt tli" hill as therein 
 (lescrilied, ivhliui;", it' he thinks fit, his ]>i"(jjier signature, ov 
 lie may aeci'i)t by his pi'oper signature. ^ 
 
 Wh.re 
 ilniwne's 
 name is 
 lui.sepclt 
 
 tl 
 
 le accciitor. 
 
 ' AftiT tlu' (liawce ai;cc](ts tlic liill, he Ijol'oi 
 
 itract (pf acL'u|itaiiet' must lic(.'vick'iu,((l liy his signature in wiiiii 
 
 lli- 
 
 ■n till 
 
 liill (s. 17), and its (.fl't'i t is ilolini'il liy s. oi. The f(irni of the ai'ccptiinci 
 (htriniini .s tlie personal lialiility of tiie acceptor. 
 
 liill 
 
 Tl.H'STKATIoNS. 
 
 I'. ('. Del/itre, Ks(|., President X 
 
 Dock 
 
 d 
 
 H ii'lionr CoMip.iny, Niagara, C. W.,' and accepted thus: — "Accepted, 
 
 payahlc at the oliicc of tlic Bank of Upper Canada, Xi 
 
 — 1'. C. I)e- 
 
 Litre, President N. U. fc I ». (' 
 
 -lleh 
 
 it til 
 
 li.l. 
 
 V" 
 
 ■Snp|) 
 
 >ini' tile d'awer 
 
 hail 
 
 e accojitor was peis 
 
 on- 
 
 that 
 
 lia\r made a di'.i'ereiice ? Ban/: nf Moiityi al v. I>' Lalri, ,"> L'. ('. (,>. II. ."ili-. 
 
 (J., being the Secretary of an insuranci' coni[)any, gave this note tor a 
 luss:— " i'lOlM) cnrrcucy. — Sixt days after <hite 1 pinniisc to pay to the 
 order of W. tJKtOl), value received hy the Ontario Marine aiiil I'ire Insur- 
 ■■;i Company, payahleat the (lore IJank in llainilti n. -( '. Horatio ( iates, 
 Secretary (). F. ♦''(jinpany '' : — llehl, that he was iiers.inally liable; Ar- 
 ,,...•••• V. ^''^/r.^■, H 17. C. ('. P. r)48. 
 
 poll the consignees of a cargo of eoals by a broker 
 
 A bill 
 
 was urawii n 
 
 who li:id elb'Cted the p 
 
 th 
 
 That bill was relunied to th 
 
 si''iiature. 
 
 'i'he broker in the ineantinic absconded i 
 
 ]iayees unaccepted, on account of the date being too short. Another bill 
 \\ as drawn at a loiiL'cr date, ai\d sent to tlie broker's counting house for his 
 
 n piruiiiary eiiibai'ra.ss- 
 iiielit : and his brother, the det'eiidaiit, who was investigating his ati.iirs, 
 signed, at the rcipiest of the plaintilfs, the bill they h.id pii'|iarcd, without 
 i|Ualifving his liability ; -Held, that he was personally liable; Soirirhif 
 v. Butchtr, 2 C. & M. .SOS ; 4 Tyr. :{•_'(>. 
 
 Kxecutors purchased goods of a firm, and g i\e notes thus ; ■ We a.-. e.\ecu- 
 trix and execntcns of, iVc, promise to pay," itc. ; held, tli.it they were 
 personally liable : K'-rrv. /' 
 
 11 v. <'. c. P. 'a:i 
 
 ii th 
 
 ■bt had 
 
 rued in the lifetime of the testator, and after his death these defendants 
 
 lad given these notes, I sliould upon the aiithori 
 
 itv of 
 
 (leclileil cases jiu. 
 
 d 
 
 them liable, as adnutting assets and obtaining time to jimn:" J'>r lira- 
 per, C.d., Ihid. 
 
 X note payable to "James (i. Mc(.'reery, treasurer of tii<^ 1!. 1. and 
 A. 11. H. Co.," is not a note to the company, but ro the individu.il named. 
 The adilition to his name is merely </rs<ri/)/iu jnr.-ioi 
 
 Vhuil.s 
 
 i.S. 
 
 U 
 
 Mr- 
 
 \ pr 
 
 to the 
 
 (imissory note in tlii.s form : "One year after date T jjromise to pay 
 
 der of myself $7y2'2, value recei\ ed, 
 
 .1. S.,T 
 
 rustee o 
 
 f 
 
 Sullivan Itailroid. 
 
 mil indorsee 
 
 1 "J. s. r 
 
 rustee, 
 
 ds.l. 
 
 /■•;-/,• 
 
 /;/'//•(•'/;/', l-JiJray (.Mass.) 474. 
 
 IIk^ defendant, as Comniissioiier of the New l>r 
 
 unswiciv an 
 
 .1 C 
 
 dly 
 
 dii 
 
 Kailway Company, <lre«' a bill of exchange on the 'ompaiiy. to pay fc 
 
 Will 
 
 kd 
 .1 
 
 one on the ranwav, 
 
 a!id : 
 
 (lit ".I..!. I 
 
 obmson, ( 'ommissioiier. 
 
 The ilrawec knew for what jmrpose the bill was draw n, and th.it the 
 defendant was the agent of the company ; Hehl, in an action by an 
 iiiiiiirsee. that the defendant was personally liable : /'"/• v. Hohiitsou, A 
 All X. B. iJlil. 
 
(58 
 
 'J'lli; lUI.I.S OF i:X(ll.\\(iK ACT. 
 
 Sec. 17- A i-ailw.'iy conipaiiy liad power to accciit liills, ami a l)ill aililrcsscd U> 
 
 ^~"~. the I'li'siilint, was acff]itc(l as f()llf)«s: ••fortlu! M. II. ( 'o. , accciitc il, 
 
 H. I!., sciictai V, (i. A, (J., pi'oidfiit ;"— IKlil. that thi' pi trident was 
 ptTsonally lial.h' : Mmltliv v. Cox, 44 U. C. (,>. J5. ."i4-J ; ."i .\'pp. I>'. 47.S. 
 
 l)ii'C'ctf)ra of a jr)iiit .■^tdck iH.'Msjaptr c( nijiaiij" j:a\e tlic ]ilaiiitill the 
 folldMiiif; iKite, ill part jiaj iiu lit for the jmicliase of a iie^.-paj i r, which 
 the ((iiiipaiiy hii<l agreed to ]tiir(lin.«e of him: "On (UiiiaiHl. we jointly 
 and seveially pionjisr to ]'ay Mr. H. or order t'lTiCl, value reedved, U r 
 and on Ik halt of tlie W'e^lejan >i'ew>paiier ;\.'^s<.eiatioii.'" Sij^md hy the 
 diicetois ;- Ilehl,tliat the words jointly and severally w ere iiitiivah lit 
 to the \^ (irds jointly and [lersonally ; and that the diieetors w i re tlieieior(^ 
 personally- lialih' : Jhiiliii \. S/cni/, ^ K\. 'A. 
 
 OneM. jirocnred for his two sons a loan of tlOO from W. on a hill 
 drawn hy \V, payable to his own order on tlie sons, w ho duly aeeejited it 
 and returned it to M. \\ im then wrote his name aerossthi- hack, and 
 handi'd it to \V. ;- Held, that M. was not liahle as aece)itor : S/n/i-w 
 Mr Kiiihiii. ,") A[ip. I'as. ~7A. l!ut see easLS in notes to ss. ■_'.'> and .">(i. 
 
 A ]iMitnei' ai'ecpted a I'ill on the name of his linn, and then added his 
 own indiviilual name ; — Held, not a debt to charge his separate estate: 
 Jit B,ir,»>n:l, W-l Ch. I). 417. 
 
 Tlu! iiresumption of law is that pr'ima fac'ii- a bill of exehaii'.'e is deemed 
 to ha\e been aeet'pted iliiriiig its eurieney, and within a leasoiialile time 
 after its date, and ekarly bilori' any of the days of giaee, siieh beii'g the 
 i'<'i.'ular and Usiial course of business: lliJurt.-^ v. liillidl, I'J C. i>. 77>S ; 
 l'". .iur. !(is7. 
 
 See al>o the eases eited in the notes to s, 'H\. 
 
 - The law as to what is a iiirding ae'eeptance of a bill of e.vehaiige 
 has given rise to sonu; eonlliet between the U'gislati\e derisions of I'arlia- 
 ment and tlie jiidieial decisions of the Courts. The statute of Auiie (.'land 
 4 Anne e !( s. ."i) expressly enacted that no aeee])taiice of any inland l)ill 
 sliould be snllicieiit to charge any person w hatevc r " unless the same Ik; 
 underw lit ten or indorsed in writing theitupon." Two Chief Justices, 
 afti'r ;i review of the whole .\et, held that this pr()visif)ii, although 
 very generally expressed, only affected the right to dam;ig>s. end that a 
 person giving a verbal or collateral acceptance to the payment of the sum 
 siiecititd in the Idl was liable: Wi/Liiisun v. i.iil iriilij, , I Stra. ()4,S ; 
 I'illdiix V. \(iii M icuji, li iJurr. Itid.'i. I^ord Chancellor Hardwicke siii)S(- 
 (piently iicM th.it tlnir decisions were correct in law: /.uni/ii/ v. Pii/niir, '2 
 Stra. Kino. I'luliauicnt then pas.scd tht> Act 1 and '-' Ceo. I \'. c. 7S. which 
 enacted that no aceeptanee of an inland bill shouhl be suliicicnt to charge 
 any [icrson unless such aece]itance be in writing on such bill ; but in 
 J>ij\iiir V. (I.ii mil II, I M. i\: Itob. '.10, it w as held that it was a ipiestion for the 
 jury whetlur an unsigned acceptance was sulHcient to bind the aece])tor. 
 Ill IS.'tt'i the Mercautilc Law iVniendmeiit Act was passed, jiroviding that no 
 acceptance of any bill sliould be suliicient to liiiid or charge any person 
 unless it was in writing on such bill and signed iiy the acceptor. Under 
 this Act it was lieM that sillily writing the name of the drawee across 
 the face of the bill, without some word or words Imlioatiiig an intention 
 on the part of the draw ee to be bound as an acceptor, did not constitute 
 
TIIK lUI.I.S ul' I.XCHANCiK A("l'. 
 
 (i!> 
 
 nit( 
 
 ilid ;iccci)taiic(.' : Jfiiii/linii'jli y. /Ua/.i ;/. ',] {'. I'. I >. I.'ili 
 Stiiti's. uiiiHT :i M'liiiliir statute, wliirh n 'lii'ci 
 
 Alt) 
 
 iitiiuli ill till' Sec. 17- 
 
 lcc('lit.'lli<'i 
 
 t,.l. 
 
 iiitiiitr ami siLriitil liy the ]iarty inakiiif; it, it was iicM, tliat tlie writiii 
 
 .f li 
 
 lis liairie, \i\ the drawee, aeross tlie faee (it a 
 
 if exeiiaiiije, was a 
 
 Mill 
 
 leielit 
 
 ■ptii 
 
 'h<J,r\. \V,hsl, 
 
 1 ]•: 
 
 ith, (X. V 
 
 I 
 
 1' 
 
 S/ii((r V. I'mlt, '2 Hill (X. \ .] 'iS'i. 'riiei'eiiii'Hi hy a ileel.iiatoiy elause 
 
 tliu 
 
 Mills (if i;.\(;hi 
 
 lliye 
 
 Aet 
 
 llii|i. ) ISi.S, ' it \\ as ]ii(i\ iili 
 
 H-jitaiiee tii a Mil shoiilil imt he (leeiiied iii.^iillieieu 
 
 t 1 
 
 iv reasdii (111 
 
 il th.it the 
 
 Iv tJKlt 
 
 the aeeeptaiu'e edlisists merely of the signature ol the drawie written <in 
 siieli I'ill. 'J'lio Ffmise tif l.drds in a ease wliieh eaiiie liefdie it in ISSO, 
 
 was ill etl'eet a deelaratiini that //ii/'Oiiiinjh v. 
 
 held that the Aet of ISTS, 
 
 llhd 
 
 i '/, was \\ run 
 
 rlv d 
 
 eeli 
 
 d : .SV"/. V. MrK'nil,, 
 
 ('as. 
 
 Il 
 
 a (.'ase in (Jiieliue, under ( '. S. li. {_'. u. 04, a linn in Mniitreal drew on a, 
 linn in i'didntd on the faith of a telem-ain iidiu the drawees that they 
 
 ;lit 
 
 Id sd in di'der td retire a 
 
 irevidus I 
 
 liat't 
 
 CdiniiiL' (lilt 
 
 diseounted it; the lirst draft was retired, and t 
 
 '|it : Held, that the drawees were liii 
 
 'I'lif |ilaintitrs 
 he drawees then Itfused to 
 Mtilsiiiix lliiiil: V. S( i/iinHir, 
 
 (l>7S|.-_'l 1 
 
 (lilt. i;. ,"io:j 
 
 ('. .1, s-j, '2:i L. r. .1. 
 
 V 
 
 Iliiiil: III' Mdiiif 1(1 \. Till 
 
 Hi 
 
 mill y. r,ii III: iif llrili- Il \'(>rlh A/ii'ru'ii, 
 
 Tl 
 
 le alidVe elause (if tliis Aet, whieli 
 
 ta 
 
 iven Iroiii 
 
 the K 
 
 1'. ('.•_>!(;. 
 Ulish Aet, 
 
 1 i|uiring an aeeeptanee to he in writinu', would seem to have tin elTeet of 
 
 .■i-.-imilatiui' tin 
 
 lis respeeting th 
 
 .■]itaii 
 
 of a liill of 
 
 e\(liaii''e 
 
 td ihdse (if the Statute of {•''rauds, wliicdi reipiire tin,' signature of "the party 
 to lieeharged" dii a guarantee, to lie in writin;,!', and si^iiied hy such party. 
 
 nr his agent law fiilh' aiitlidiizi-d. If .su 
 
 en a vii'W he ei 
 
 of 
 
 iiiirn 
 
 td tl 
 
 le ."^latute o 
 
 f !•' 
 
 rrcet, IIkii th 
 1 
 
 lav lie c 
 
 it(!d: 
 
 Th 
 
 ■tnieiit edinpels tlie ('(lurt to i"fu,S(i to enforee a ]ii'dinise how 
 
 ever 
 
 ele.iiK it I 
 
 iia\' 111 
 
 d. unless th 
 
 lie tl 
 
 ^ta.tlltalll 
 
 e (■^iiieiice 
 
 Sin If V. Ml\iiiln_l/, ') App. < ',is. TliS. 
 
 Very lull ini)ilies a 
 
 ■ Jl,l.rsTI!AIK)NS. 
 
 111! and t(j the drawf 
 
 d liav, and hi 
 
 lot only an adinissidii of moiiov or elleets in Ins hands 
 tl 
 
 dli 
 
 lit is an undertaking liy the aeeeptoi- as well with respect td the 
 the paycie, to pay the hill ; J'uniiiiilri 
 
 leplanee 
 
 eieiit to pay, 
 
 dr.iwer. 
 
 Wils. IS.-), 
 
 Si/ nil 
 
 v. c. t: 
 
 III an action liy a )iayee against the maker of a rote it was ph aded mi 
 uitalile grounds, that tlie pl.iinlili was cajitain uf a i-ille comiianv 
 
 III U'ani/.cd accoi'din; 
 
 to la 
 
 )mpany 
 that defendant lieing a niemher of it and a 
 
 tailor, was emiiloyed to make the uniforms, w hieh it was agreed lietwuei 
 liiaintifF and defeiid.mt should lie ]iaid out of tin; moneys edming to th' 
 
 Slid edinpany fur their drills 
 riise the neeessarv sum at dii 
 
 ■ding to the statute : that in order to 
 
 it was also a^ried that a note should 
 
 discounted, tn lie reduced from time to time in t 
 and reneweil until jiai.! oil' ; --Held, lio defence ; V 
 <,'. B. SS. 
 
 le moneys .so received 
 
 •iiiii V. 'Fn.ii, 111 r. (■ 
 
 \v 
 
 icle a ni.iii draws a liill td pay a deht, hi' caiiiidt set up 
 
 that the hill w 
 
 iveii iiiidii 
 
 lietween himself and the jdaiiititf, that the dra 
 
 piuir vei'ha 
 
 gainst the 
 •rstanding 
 
 tliev ehose, 
 
 idiild tint pay unless 
 
 All. 
 
 illll'' V. 
 
 ', and tnat in that event lie was not td he liaKle as d 
 Till. inns, 7 L', C. (). i;. •J4;i. 
 
 rawer 
 
70 TJIE 1!JI,I,S or i:X( IIANdK ACT. 
 
 Sec. 17- In nil aft-inii on a iKitc an ngrffnicnt was set up that wlun it hccanif 
 
 ' <liii' plaintiU's Wdiilil rciu'W it lor line lialf. and L.'ivf three iiidUthM for t lie 
 
 other half : Init tiiat thi'y eiainieil the whole instead of li.df, which the 
 defendants weri' ready to pay : Held, no detenee : lUink af C/i/n r (.'(tndi/a 
 V. Jours. I \J. C. 1'. It. IS.-.. ' 
 
 An instr\inient which orders ;iny other act to ho done, in add'tion to the 
 pajint'iit of money, is not a hill : A'l lUajsi , ^,V^ Ch. I). (il'J. 
 
 An accpptaneo of a l)ill nnist be to pay in nionev, an aecopt.'uiee to ji.iy 
 hy another hill is no ••loeeptance ; /.'»«'// v. /'ki'/l/'^. U (). I!. SKI. 
 
 See further note.s (1 and S to .s. .'5. 
 
 ' There is no analouous clause respecting drawees in the l'',ni;lish Act. 
 In H. ^'2 there is a similar provi.sion resjiecting tho payee or indorsee whose 
 name has heen misspelt. 
 
 TlM'stk.ations. 
 
 A liill addressed to W. 1!. was ac'cejited hy liis wife, in luidwn name 
 M. B. : Held, that if a iirincij.al authorizes his agent to accept a hill, such 
 ])rinripal is lialile as ac<-eptoi' though wi'ongfully (hsi rihed Ity tile agent 
 in the acceptance : .L!iii/i(s\. /l,(i<iin/l,,'>i'. 15. .-S;} ; P.? dur. 'JliO. 
 
 A note .stated that .1. S. jiromised to jtay A., or order, a sum certain, 
 and was signed .1. S. or el.-je .1. ('•.: Held, not a note of d. (I. : Firri-: v. 
 /ioii'/, I r.. & Aid. (17!). 
 
 A ]iei'son suing upon a note whi<'li ])uriiorts to lie imyalde to a person 
 of ailili'eient name, may give e\idence that he Mas the ]•< rs<in intended : 
 nV//;,v V. li'tri-itl. •> Stark! 'iU. P>ut see Bo'ih.'^ v. Sfiru--^, 1 1 Lush. .SliO. 
 
 A hill drawn on A- it Co., a prior tirni. huttlie ]iropcr style of the then 
 firm was A. iV; I!., hv whom it was acii)ited in their jiroper name : Held, 
 that the linn of A. \ I!, was liahle : /././//(/ v. .1 sAA//, 'J 15. (S; Ad. -23. 
 
 A hill drawn upon a tirm asM. i^ Me(,>., their pro])er name hcing M. 
 Mc*,). it Co.. w.is accepted liy their man.igcr in the uanie of M. it ^ic<,>.: 
 Held, that tlu tirni of .M . Mii). &. Co. weie not lialde ; \iii,l„c Ihntk v. 
 Mill.r. ,S .Man. 11. 17. 
 
 \\'hei'<' a ]i.irtiier who was accustomed to is>ue iioti's on In half of a tiim 
 indorsed a ]iarticular note in a name ditlerent ficin that of the partner- 
 ship and not previously used hy it. In an action on such note hy iin 
 indorsee, the ]iroper ipiestion for the jury is w liether the name used 
 though inaccurate, .sulist.mtially desciihes the tirm, or whether it so fai 
 varies, that the paitner must he taken to have issued it on his own 
 neeount : Failli v. IHrhmoiul, 11 A. & E. .'^.'W. 
 
 A liill addre-scd to a linn was acce])ted liy one of the jiartii ,s in his 
 own name : Held, that the linn wen liahle : Md^aii v. I'lnnsii/, \ Cani[). 
 
 A hill addrissrd to a tlriii w;is acceptecl li\ one of the iiaitncrs in his 
 own name : Held, lli.'lt he was indi\iduallv lialile : <hr, ii v. ]'oii i''<tti\ 10 
 
 c. r.. ;]is. 
 
 .•^ee further the cases to s. '2:>. 
 
 Acreptanre | ,S. A liill lUa\- 1 K' ilCCcpttMl 
 
 of liill while "■ ' 
 
 incnni|ili'tp. / \ i. f •. i i • i i i i i -i 
 
 imp.Aet.s IS {(I) Kt'toi^' it liu.s lu'e'ii sioiidl nv tlif drawer, or while 
 othcnvi.se incomplete ; ' 
 
Tin: lui.i.s or i:xfiiA\(;i; act. 
 
 me usid 
 it s(i lai 
 liis own 
 
 rs ill liis 
 "^in; 10 
 
 AVIhm 
 
 (l\ 
 
 ,r- 
 
 lltlr. 
 
 fi 
 
 U- 
 
 liHiior 
 
 '<t 
 
 Mll 
 
 SllliM'' 
 
 IK 
 
 iitly 
 
 a.v..pt 
 
 •a 
 
 
 while 
 
 (//) Wlit'ii it is uxcniuc, or nt'tfi' it lins !,(.. n (li-.li.»ii')ic(l Sec 18 
 liy a ]ir(\inii,s I'd'usjil to aoccjit, orliv iioii-|i;i yiiiciit :- 
 
 2. W'lifii a liill i)ayal)li' atter si^ht is (lislidiiijicil \>y iioii- 
 accfiitaiicc. and tlic (li'awoc snl)S(M|iii'i\tly acccjits it, tiie 
 lioMcr, ill till' aliscncr ot'aiiy (liHriciit a-ifcini'.it , is cut itl^J 
 til liavL' tlir liill acceptuil as of the ilatf of lii'st [n-i'^riit iiunt 
 til till' <iia\Vfe I'ol' ac'C(]itaiiro, '5 
 
 ' Tliis sc('tioii iiiiiy !»■ rcail uitli .■-. "JO as tn iiirlinatc liills, or >ii:iiatiii'(.'s 
 uii lilauk papLT " ill ordor that it iii.iy lit-' udiivi rtid iiitd a liill," 'i'iif law 
 i\'i)iii't.s contain iiiaiiy iiistaiu-f.s wluTf tlic autliority thus uivcn lias rr>iilti'il 
 ill greater damages to the jicisoii ^jjiviny his :iL;iKituii- in lil.nik, than liis 
 .iiiLjiiial risk, Siuli an acci'iitaiiLC in lilank, iiiitjioiizcs thi' |iri-oii to 
 uhoiii it is yivL'ii to make ii I'lHitr.ic-t lor the projiiisi'd aei'tptoi- for any 
 iiiiouiit. and in tliu terms of s, ol. 
 
 li.i.rsTi;\i KINS. 
 
 W'hcri' the defendant .-.ii^ned, as niai;er, ;i juiiiteil foiin of a note, and 
 iiainled it to A,, liy whom it was lilleil tip lor .■:rS,"i."), ami tie ]iliintill's 
 .afterwards lieeame indorsees of it for \alue witliont notice: Ih id. that 
 t he defendant was liaMe. thoiigli it mi.uht h.'ive lieeii fraildiileiilly or im- 
 1110)1(1 ly tilled np or indorsed : Mrlmh < v. M ,lli,ii, ,'i(l U, C. (i>. li. 4S!I. .'>ee 
 siiii/unl V. /.Vi.s-s () r. ('. (), S. 104. 
 
 If a man write his name acros.s the hai'k of a hlank hill stnni)^, and part 
 uith it. and the p, per afterwards is imjiropi'rly tilled i, p. Ik is lialile as 
 an indorser. If he write his n.inie aero.ss the face of a hill, he is liahle a,s 
 an aeeejitor. when tlu! instnimeiit has onee passed into the h.amU of an 
 iiiiioeeiit indorsee for value, lielore iiiatnnty : /'' /' ilvies, .1.. in /■'■'-!,,■ v. 
 .M(i<-Li,iin,ii, L. K. 4 ('. r. 712. 
 
 A form of a hill of i xehanue may he aeeepted liy the drawee. ,ind in- 
 dorsed by a straiitjer to the acci'pti'r, hefore the liill is exteiiiled : ^huli; 
 V. A-^tl'H. '2 i'.in-, N. C, ;")44, 
 
 A lilank aeeeptanee for L'liCin tiiiiires, w.-is sent to ]ilaiiititriiv defendant, 
 iiiit 111' tilled it lip foi- L"4li, aiil altered the livures Wiitteii in the maiLiin; 
 Held, mita. satisf,Leti<inof thedeht of .llti;) : Ihib r x. Jiil,U, r. I M. A <ir, 'Jl'J. 
 
 .\ liriii ae<'e]ited a hill to whieii no drawer's name was aliixed, and 
 ; fterwards made an assiu'iinieiit for tilt Iji-m-lit of ereditois. .\frer the 
 .•is.signment, the iiill was eoinpleted li\ the insertion of a dr.,\Mi'> naine. 
 .iiul it then ]iassed into the hands of a holder for \'alue •— Held, th it it diil 
 not ere.-ite a deht until it had issued, whiuli w.as after the hankniptey ; 
 hx jKiri' I [iii/irdiil , L. 1! Ii ( 'ii. ,"i47, 
 
 A liill of exehaneo aeeepted for v.diialile eonsiderati'ill, with the di ,iw ir's 
 name left blank, may he eoinpleted by the draper's nmie )» iiiL,' .idileil 
 after the tleath of till.' aeetptor : i 'nrli r w Whil' . •_'()( h. |). •.'■J.'i. 
 
 \Vliei'c value is j.nve'.i for a blank .u'eeptaiiee, authority to till up the 
 liill is not revoked by death, bill: where there is no sui h v.diie or 
 interest, the authoritv to lill up and negotiate the bill, is revoked i.\ the 
 •leath of the aceeptor": UiUch v, SuirU-i, '2 Sm, & (J. 147 : 'Jt l..d. ( li. •_'•_'. 
 
I'l 
 
 ■iiii: iiii.i.s OF i;x<'ii.\N(; 
 
 AC 
 
 Sec 18 
 
 A fiiMh iif liiil (if 
 
 ixriialij'f u 
 
 hicll 
 
 it;iiiU(l till' .--iiiii nf L"! I, ill liiTUli'S ill 
 
 — thru 
 
 lull till \\(l 
 
 |<I« ill tliu lioily ti) ilciintt; tlif aiiKiillit, was ii,ci'i;|)ti'il 
 l)y till' lit friiil.uil and rutiinicil to tlu^ d'awui to ln' liilcil in. Tin' diawcr 
 I'laiididriiily iiisi'ituil tlif wnrds " oiu; liiiinircd and sistyhiiii" in the 
 liiidy, Mild aitcnd tliu iiiaiL;inal ligiiirs to tli;it aiii'iunt and issued tin; 
 
 liill ; -Held, that tlic difi-iid,iiit was lial 
 
 llic liill ti> tlic lilailitilV, lUI 
 
 innorcii 
 
 t Imldfi lor vail 
 
 a 
 
 7/ V. I. 
 
 Id It. 
 
 I». :!(». 
 
 A |i,iiliici' lias no implied authority to liiiid his linn liy issuing aeeep 
 
 •t- 
 
 iinces lit the liiiii ill 
 
 iihi 
 
 I ln'IU 
 
 l.iUlu 
 
 •,\ (.>. H. I». (U.'i. 
 
 A di-feiiiiaiit inti'iidiiiL,' to heroine surety to the iilaiiititl's lor money to 
 
 lie adsaiiced hv tl 
 
 stanii 
 
 lelll 
 
 alter wliieii 
 
 to U 
 
 w 
 
 I'olo his iiuiiK' on the liaitk ot' a lilaiiU hill 
 
 l'> 
 
 kTote lii.s a line across it 
 
 iis aceejitor. 
 
 and then 
 
 handed it to the iilainiiU's, u ho hlled it n\i as a hill of e\eh 
 
 I'^'y 
 
 il.lt 
 
 to their own order ; — Held, that although the defendant could not he 
 Hiicd as indoiser, he was nevertheless lialile as dravter of a iiiil piyalile to 
 bearer, or according to the tenor and cd'ect thereof, of a lull payalile to 
 
 the plaiidill's order : Mdlllu 
 \. S. II, 
 
 See also cases in iiotc;s ti 
 
 I.S L. .). O. 15. -JO'.! : 10 L. '1'. 
 
 ill aeeepted in Idaiik was Idled up twelve years after it was given, 
 itrd ill the year it was tilled n]i, is hindiii:,' on such aeec)itor in tli 
 
 hands of a holder for value : Mmildtiin: v 
 ('. I'. 187. IJut see A*. n,th'll, :u Ch'. I>. .".( 
 
 I'rrkiii^, 17 .lur. r.77: •-'-' L. d. 
 
 ■-' As to o\erdue notes sue ss. 10 and ."i'i. Where a hill has lieen pre- 
 sented and accepted after the period at which it is mide payahle has 
 flaps, id. the acceptor will thi ii lie iiahlc to pay it on dcnniid : /li//is(ji/ 
 IjHI", I4i>. There caiinol he a series of suci-c>si\e aei-cplor.-, ■ ii|)oii 
 the same hill. it must he aeceiited liy the nriuiiial drawer, or liy 
 the drawee itn Ixsaiii, or hy a third pcr-on for honor, or where the 
 l/ill slates no drawee, liy a person in tliat character : S/nri/ nn Itil/s, 
 '2'tl. ;\u aceptinci; for honor is allowdile only when the liill has 
 lieeii ret'u-;ed a'-ceptaiii'i.' hv the drawee, and has hcen protested therefor : 
 Jliid, s. '2Mt. See s. ()+. Tlic absence from his home of the ibawne of a 
 bill where the holder calls with it for acceptance, is not a refusal to 
 accept: li'tiiL- I'j' Wit^^hiicjliiii \. 7'/vy/'(//. 1 I'eters, V S. •_'."). If after a 
 refusal and a protest for iion-acee|itanee of a bill payable so many days 
 after sight, the drawee aiaa'pts the ne\t flay, but becomes insolvent 
 before the day of payment, tlu' drawer is not liable if he had ho notice 
 of tlicoii-inal noii-acecptaiii.'c : Milc/ni'/ \. I )•( iiuiii'/, 1 .Mason 17<i. 
 
 ■' 'I'liis sub-section was intended to si'ciire that, apart from special agree- 
 ment, the holder should lie pnt as far as possilile in the same position as if 
 the bill had not been dishoiiiued : ('lidiiiii r-'mi liilh,A\. The fidlowing case 
 was iheid'.'d before tli.it Ai^t : W'lp're a bill of exchange, payable after 
 sight, Was presented for acceptance and refused, and protested ; but eight 
 days afterwards was accepted by a third person for the honor of tlie 
 dniwer. and at matnritv was niesented for iiayment acconlinif to th; 
 
 that 
 
 acceptance, it was lii.ld to have been pn.'sentcd at the ])ropev time 
 
 II 7//, 
 
 («//(> V. ' >i riiiuini. , 
 
 I',. & c. k;s. 
 
TIIK llll.l.S or liXCIIANCi: AC 
 
 73 
 
 .■i.t- 
 
 SVVf- 
 
 as if 
 case 
 
 iftrr 
 
 I !►. All iirci'ptaiii'c i> citliri- ill) ^vii.'i' 
 
 il, or 
 
 i|n;ililir,l: Sec m 
 
 llri iTill iiliil 
 
 l|M'lllHli| HI-- 
 
 inli'f of till' iliawfi' : a, ([iialitii'il arcf|itaiici' in "'■"^I'l''''^'^ VmV'""^ i'.> 
 l-niis varirs the circct oT tlir liill a> drawn : I 1..1. Art'.ss.) 
 
 ;^''ii('ral acci'iptaiu'i' a^-^i'iits witlioul (|iialirn-atioii totl 
 th 
 
 ll. Ill paitii-ulai-, an arfcplaiH'i' i-; (|iiali!ii'il wliicli i- 
 
 Uniililir.l 
 1-— 
 
 1'"} ( 'oiidil ioiial, tnat is to sa_\ , wliii-h inakrs ]iayiiu'nt l>y Cdiniit al. 
 
 tlic urccjitor (l(']H'nilriit on tlic t'liUilnn'iit ,,['■,[ coiiilitioii 
 ihrri'iii slati'il : 'aiL an iii'('c|>taiii'c {<> ]i;i\- ;it a [)ai't Icular 
 -|M'cilii'il jilai'i' i> not coiiilitionjil or (|ii:ililicil ; - 
 
 (h] I'artial. tliat, i> to --ay, an acccjirancc to pay |>art only I'artiui. 
 ol' tile aiiiouiit for wliicli tin' liill is ijraun ; •> 
 
 f) (.^)iialili(Ml us to time ; ' 
 
 <,Miiilili''l a< 
 
 III llMll'. 
 
 ('.') The acceptance oI'soihl' oiir' or more of tlir (h'awees, ah ,ir,nv,..s 
 liiit not (_)!' all. ■"> 
 
 iii({. 
 
 ' III all casus tin- IimIiIit is ciitilli''! tu Iris'i- an a!is..liitc, iiiH-iiiiditiiilial, 
 iiiiil iiu((iialititj(l accL'[it,iiii-i' at tli.' liill as di.iwii. 'riiiinL;li an ai'cc|itaii(.'C 
 Naryilij.' from the tmni- of tint liill willliiml lin' |irrsiiii niakiii;;,' it, the 
 li'iMrr is ciitillcil, fmni the innliTtiikin^ of tlir di aw .t and imlnisirs, to 
 • ■\|)rrt an alxoluti.' ai:cc|itan(a.' liy till' draw rr ( ni', il tlnri'lif scvirai nut 
 ■■iiniu'i;ti-d ill iiart.n(i'slii|i, liy cirli) i'i\' tin' p;' ynn'iit nftln' full siiiii of 
 111 Ulry niriuioncd t llclrili, ai-cordini; toils trim!'; Sjircify ilii; ifllonc 1)0 
 ini'iitiiiiicd foi' tile imrposc, a jilarc for its [layiiioiit, and (.■xjux'ssiiig, if the 
 lull In; )):iyal)k' within a liiniti'd tiiiu' aftiT sitdit, tlir tiiiii' for its ])ri'suiit- 
 iiii'iit for aci-i'|)taiicc. and in' in ly rcjci/t any otln'r. Still hnwrvrr tho 
 hiildor may, at his |icril and rjsU, takr a coiiditional or i|ualitii'd 
 Mi'i/oiitaiiei.' : and if lir <lor- tin; ari' ptor will, if tho ooiidition 
 is i/nniplicd with. Ill' liniind tlii'i'i'liy. If thr lioldrr mi'.uis to assoiit 
 t'l a oomlitional otlbr of ai.'coptaiioo li'' nni-t do .-.r at ih.' tiiiio of 
 tiio ollor, for if ho tholl doolint's it, it will ho a \v,ii\ri' of all li'4hl lo jiolil 
 till' drawoi' to tin; oll'i'i'. And if tho hohhi' >lioiild tako an ai'i;o|itaiice 
 v.'iryiiig ill any rospoot from the triior of tho hill, wln'thor coiiditional or 
 ipialitiod, or otliorwiso, in such a ca.so, hi' iiiiist nivo imlii'o thereof to the 
 antoi'i'doni partios ; and if lir ilou.s not tlio\ will not ii'.' hoiiud liy it. luit 
 \\ Ml ho alisolvod from all rosiionsihiliu^^ upon tho hill, liidord it \sdiild 
 - Ill that notice would not of itself bo siillioioiit w itiiout a piotost of the 
 hill for the noiriicoe[)taiii;e according to the toiior of thi' lull; nor unless 
 after lintiee such pai'ti<'S adopted or acipiiesced in the conditional or 
 'pialiliod acceptance, for it may mati.'rally cliaiiu;o llnir wiiole rolation.s 
 to, and respnnsihilitios on, the hill ; and eaidi of them has a right to say, 
 10 
 
74 
 
 111: lui.i.s or i;x< II ANWK act. 
 
 Sec. 19. 
 
 ililc, tl 
 
 II ri I'l III 
 (ciii-tnicil 
 
 Sinrii nil Itill-i, s. iMO. .\ii ;i. iit.aiiri' is, wlicri'vcr 
 
 ■r.il .■mil lint, i|u;iljli<'(l : ( 'liiih. 
 
 Hills 
 
 4-J. 1 1 
 
 II until jiiii'|ici.s<',s 
 
 to iii.ikc ii (.'iiiiiljtioiial 
 
 itiiiii'i'onlv. .'iiiil I'diiiiiiit 
 
 t.hiit aiTciitiiiu'c III w liliiij,', ln' sliuiilil ln' circfiil to cxp.cs.s fully tlic criiidi 
 
 tioiiH : fur it limy '»' liniiliicil u lutli 
 
 1)1 (•viiltiii;c i)f till' coiuliliiiiri wmiUl 
 
 1h! adiiiissililc ; .iiii 
 
 I tl 
 
 iiiiiif wipulil liu of nil .HVail if tlif liulilcr or iii 
 
 piTsiih iiiiiliM' w liDiii 111' i'l.iiin.'<, tiMik tlic Kill witiioiit iiiitict; of .iiii'h cmi- 
 (litiiiiis : liiii/lii/ nil IHIIm, \\\t. 'I'lir tii.sl p.iit i)f tli(! clauso i.i tivkcii from 
 tho l'liiL;1isli .\it ; Imt llii' latter pirt of tin; rlaiisu ri'-ni lut.s jiart of an. {) 
 !•_':!, ;inil is .ippiriMitly Hiilwtittitcil for rlausc' (c) in 
 
 ml ICi III it. S. (' 
 
 tlu! I'liiLili.sli .\itt, wliic'li irfi'is to ail .ii'i't'ptaiico to pay at a ii.iitiuuiar 
 
 specil 
 
 note ."> to s. 4.'i, ami 
 
 'I'lii.s scctinii lias im applii' itioa to promissory iioti.'s. Sue 
 T, ,'Uiil SS. 
 
 ll.l.lSTUA III 
 
 Wliitlnr all .iici ptiiiii'i' is iMiiiilitioiial or alisolutf is a i|iii'.stioii of la> 
 
 Sprout \ . 
 
 MiiIIIk 
 
 IS-. 
 
 Words which ai'i' allri,'rd to ipi.ilify all ac'(3i'|itaii('t' slimild In- con^triiDil 
 most stroiiuly .iLiainst till' aic('i>tor ; l)i rrnix \\ Mii/i r, -'> (). Ii. |). .■|l."i. 
 
 Parol i'\id''i raniiot lir rt'Cfivcil to show, tli.it .'i liill 'if cxch.'ini^'C 
 
 aiM'cptrd pay.ilih' tliii'i' days after si^dit, was accepted on condition that it 
 was not to he |)Uil till a further time had elapsed : /Iriii/lniij/ v. Olirn; 5 
 I'. ('. (). ><. 7n:!; s.p. . //iii/ii\. /hiriK, (iU. ('. (i. 11. WW) : //iiUv. Frdnrl.f, 
 4 F. (' ('. I'. 'JMi : //in/irrv. I'alirM)/!, 14 U. C. C. 1". .ViS ; .S"/o^/ v. /•'((/)■- 
 
 /iiiiiIk 111 I . T. 
 
 11. .I'-'ii. 
 
 IJiit as lietwccn the iniiiiediate ])Mrtii's tfi tlui liill, a written ai,'ri'ement 
 ilitrol its leL;al I'll'ect : /Imn rhii.iik w Muiili'rin, 4 Taunt. S44. 
 
 ilraft: "We \\ill keep the sums frmii the lirst 
 
 may vary or ci 
 
 A 
 
 n ;icce|itaiici' on a i 
 estimate of M. it (ai., as rei|ni'st(.'d alio\i', provided they liave done 
 .snlliciciit work to earn that .sum, " is not conditional ; Mc/.ian v. tShiili/.s 
 
 1 .Man. i: 
 
 •JT.S. 
 
 A ciin.litional acce)itaiK't! liecMimcs as efl'ectual as an absolute one, when 
 the condition is coiii|ilied with : Mihi v. /'/v>V, 4(';unii. Ii!)!!. 
 
 If the payee of a liill .■iniic.ve.s a coiulition to his indorsement, and tlie 
 drawee aitiiw.iiils accc[its it, he i.s hound hy that couilitioii, and if tho 
 condition he nut iierformed, tlie ])ro|)eily in the hill reverts to the jLiyee, 
 and he in.iy recover the amount ag.iiiist the ac 'ejttor : Hahi rt-mu v. A" 
 niniltiin 
 
 Wl 
 
 4 Tiuint. :!(). 
 
 uu'c a lull has 
 
 liccn a('eo])teil on a condition to Ik- )K'i'fornicd hy 15., the 
 
 pnrform.iiice nf sucii condition liy ('., will not 1 
 
 ic ;i I'dUl 
 
 condition.il acceptance: Sirnn v. (' 
 
 M 
 
 irsli. I7f) 
 
 pliaucc with the 
 
 A liill accepti d '■ p.iyalile on giving up bill of lailiii',' for 7ti bags of 
 cloversced per .Ajiiaziii, at the London and Westminster Bank, HoroULdi 
 Uraiieh," is a cdnditional acceptiiice to tlii.s extent, tliat the holders are 
 only entitlcil to receive tlie .imoiint on delivering over to the acceptor the 
 
 bill of ladiie.'. hut th 
 
 it ion was satislied bv the haiidiii<' over of the 
 
 bills of lading, .aid presenting the bil 
 wliich it bec.ime due: Smith v. Vi rtm . 
 
 •xchaiiife the d.iv after that on 
 
 !M . U. X. S.'.>14: ;i L. T. X. 
 
 r.,s3. 
 
 An 
 
 conditional 
 
 ■pti 
 
 to pay "when the goods conveyed to me are SO 
 
 Id. 
 
 IS 
 
 ith V. Ahhnl. 
 
 Sti'a. 
 
 II 
 
Tin; lui.i,^ OF i;\cii.\N<ii: act. 
 
 I •» 
 
 An acci'ptani'c to puy " wIh'Ii in ciu*!! I'nr tlic iar;,'o nf tlif .sliip A." i- See. 19 
 iiiilitiiiuiil : JitHdii V. Siliit/liidii/,! , - Wils, '.I. ~~~ "~~ 
 
 An act'i'|)t.'iiico trt |iay '•cvcii il' (lir -lii|i wiir lo>t, ' is r<p|iilitiiiMal 
 
 ilclicniiin!.' npoii twiicvi'iitH : tlic slii)) 
 
 .(' V. M<ifi/H 
 
 I '!'. If. Is-J 
 
 ai in iiil; at Luniluii, nv lifiiiy 
 
 llPNt 
 
 - I'lidi- til til 
 
 IH I'liai'tliii II 
 
 t, i; 
 
 s. r 
 
 It! pruviili .| iliat iiiil''.-*.-( 
 
 tinj hill or 111 it 1' I \|irtsscil on tlic tare of it tlial it was payalili' at a part ii 11 la I 
 place "(inly iiinl iif>t otlici'wiso or <.'lsew lii'ii'. " it was payalilf ui'iifrally 
 liut. that if such wonl.i wot in the aiTcptaiiic of tlif hill, or pnnnjsf in thi 
 
 iti'. ■■ then such 
 
 a i|iialitU'(l iU'('('ptaiu'(! ami pl'oinisi 
 
 •ptaii 
 I 
 
 il'iiliiisf shall he (Icriiicij ami 
 
 tal^ 
 
 III to 111' 
 
 th 
 
 •ptnr or III 
 
 iki'i' .-hall not 
 
 hi liaiilc to pay tlir hill or note, imliss paynnnt has liiiii liist only 
 (h'lnaiiilcd lit such liaiii< 
 
 or other plai'i 
 till proxision nipiiriiig the words '•only 
 
 Til 
 
 is Act 
 
 iiiit ntinnci 
 
 il Hot otjii ru isi 
 
 e or el<e\\ 
 
 hen 
 
 to lie inserted in tl'.e acceptance of a iiill ; hut the acceptor may neve 
 tiicless use them or similar words, and so take his acceptaiicr out of tli 
 
 ■liiiitinii of a general aiceptancc. Tlie woi 
 
 Act. 
 
 .Sec 
 
 flirlli 
 
 cr note ."i t< 
 
 h 
 
 I, ainl ss. .)•_' an 
 
 arc rclaiiicd in tiic Miiuli- 
 1 S(i. 
 
 il. 
 
 .rsTi; \Tio\- 
 
 \ liill tlrawn iia\'ahlc to the drawi'i's order, in 
 
 l.ond 
 
 on, auil acceii 
 
 ted 
 
 Fiii/'f v. niiJ. t; IJ. ii^ c. :i:!i. 
 
 payahle there, is a ;,'elieiMl acceplaiico 
 
 .\ iiolr made in I pper ( 'aii.ada, payahle in ( ;iasL!;o\\', not addiiiL', "and 
 lint otiierwise or elsuu iierc," is payable generally ; ami the' piaiiitilV c.-iii- 
 imt recover the dill'creuce of ixchangc on siu li imte 
 
 r. ('. c. I'. :;7(i. 
 
 ir 
 
 ,7/,/ 
 
 A note drawn in llostoii wlierrhotli makeiaml piyic icsidi'd , .iinl made 
 
 pavahle, "at aiiv haul 
 I ilau. N. H. .-liO. 
 
 k, nu.'.aiis aii\' 
 
 liaiik 
 
 III IlllStlill 
 
 lidl'hnu V. H'llrlirock-. 
 
 " li.i.rsTi: \ rioNs. 
 A foieif'n hill, dr.iwn for 1'1'27 iSs. hi., wi 
 
 ited liv the d 
 
 lawoe 
 Iniil'i. \\ iiliiii 
 
 the .alllollllt of 
 
 for I'lKO only ; held that the iiartial acce[itaiice was ;,'ood // 
 the custom of nieridiaiits : Wnjirsitiffi' \. Kkii'. 1 .Str.i. •_'! t. 
 
 I!, drew a hill on .\. or order re(|Ue.stinL; him to pay I 
 my iiecount furnished." (In presentment A. wrote on it "roirict for 
 •ST.")," and signed the initials of his n ime ; lleld. not a hill: !(< i,io ihi \. 
 Ada,,,-: -* I'ug.s. X. li. lO'.'. 
 
 A hill was drawn upon 1!. wlm accepted it thus : " i do ,iccc)it this hill 
 to he ])aid half in money and half in hills.'' it was juoved hy (livers 
 merchants that tlu: uustom among them was th.it tlniv might he a quali- 
 liuation of an acct'ptance. for ho may refuse the l>ill totally, or may .iicept 
 it in part ; and the lioldef may refuse ;iiid jirotest tiu' lull : .and tlmiigli 
 there he such accrptaucc he hath the same lilicrty of idiaiging iIk drawer: 
 I'l-til V. Jldisnn, C'omljcr. 4.")2. 
 
 ' ri.I.rsll: \TloNs. 
 
 A hill was drawn out d.ited Stli .\pril. 1707. without spccifyiiiL: tin- day 
 on whii-li it was to he p.iyalile. A. accepts it )iiyalilc on tin- IStli Aiiril. 
 Held the acceptor i> Imund hy the custom of meicliants to pay at the 
 time appointed : ir'(//,v»' v. Atii-oml, 1! Mod. I!l(). 
 

 v^;\^r^ 
 
 IMAGE EVALUATION 
 TEST TARGET (MT-3) 
 
 y 
 
 / 
 
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 €€// 
 
 ^* 
 
 
 ^i. V'^ 
 
 (p- 
 
 w. 
 
 
 & 
 
 fA 
 
 1.0 
 
 I.I 
 
 1.25 
 
 IIIM IIM 
 
 la |||||2i 
 
 ^' 12.0 
 
 1.4 
 
 1.6 
 
 ^ 
 
 ^ 
 
 */^/ 
 
 o 
 
 "^^ 
 
 e: 
 
 
 (5> 
 
 e^ 
 
 C 
 
 / 
 
 /# 
 
 Photographic 
 
 Sciences 
 
 Corporation 
 
 iV 
 
 a. 
 
 ,\ 
 
 O 
 
 '''^ .^ '' 
 
 6^ 
 
 IV" 
 
 % 
 
 V 
 
 
 23 WEST MAIN STREET 
 
 WEBSTER. NY 14580 
 
 (7i6) 872-4503 
 
Sf 
 
 w. 
 
 P. 
 
 w- 
 
 '/. 
 
 S 
 
 ^ 
 
76 TUK liilJ.S OF i:XL'IIAN(JI'; ACT. 
 
 Sec 19. -\ I'ill iliitdl Stli Si|it('iiilH'r, Is.iii ilr.twii ]i iyal)l(' in [.uiiloii I'l 
 
 . — ' aftiT ilad' \v IS a 
 
 itr.lth 
 
 •i)i(' 1 iu o. (;. ^t ( 
 
 Mil' niontlis 
 I.MMaMii.diic lltli 
 
 DccfiiiiM!!-. IS.'di; li. ,\: Co." U.'lil. ii II (jiicstidii lit' law tint tlu5 lull was 
 acci'pt'il ai-coi'iliiij,' to its tciinr ; Imt it' a (|iiir.stioii of I'lct, tlnTc was cvi- 
 (h'licL- to hIu'vv that words, " <|iif Mill I)i;ci'iii1)lt. IS,")(»." woi-f not iiiti;iidtMl 
 to (|iialil'y tlif aci'i'ptiin'e : Fii ii ^haif v. /'f-i/, •♦ II. iV N 1. 
 
 .V liill (irawii "JSili Novciuhur, l.s;{(i, payaliK; foi'ty-two inontlis afti^i' 
 
 (late, 
 
 was a('('f|itci 
 
 tl 
 
 Ills 
 
 \i!(,i!|)tcil oM condition of its IxMnj; riMicwci 
 
 I 
 
 until Nov('inl)i'r "JStli, JSU, without intcnj.st, payalilo l>y ine at \V. & D. 
 liankt'is, London." IFcld. a i.'o(id .•.t'i'('|itani'i'. and tliat tli" hill was pni- 
 |i(rl\ |i ly ililo on '-'Stli .Novcniliir. 1S4I : / 
 
 .// V. I'hiHiii^. 14 <.>. I'., Sid 
 
 UJiir. sot). 
 
 le who aiiifot- 
 
 On 
 
 whii'h he is a 
 lialilu tht'i'i'- • 
 
 '■ Il.l,ISTtl.\TlllN> 
 
 ids iinUvidnal niMii' a 
 
 hill a'ldrv^s.Ml to the lit 
 
 on'inl LI", yivis 
 
 .f 
 .1 (|iialilii'il acci'iitanci'. and is individually 
 
 V. V i I ('.hr, IOC. I',. .SIM. 
 
 < '■. and l». 
 id that I'.. 
 
 to H , and l.y li. 1., .\ 
 
 not s'.'t up as a liifciu-; to .m .u'tion 
 
 jointly, w 
 ,vas li dill 
 
 as iiiilorsi'il hv ( '. alor. 
 
 iiiilorsiT. .iiiil iim 
 
 ihl 
 hv .\ that I), had not ioim-d in the 
 
 itlih 
 
 irsLniuiit 
 
 77, 
 
 'iHiyir V, 
 
 ■/<ir/:. . •_• Km- \. I'.. .'iTO. 
 
 .V hill or noti' diMwn, ai'ci'pti'd oi' indorsed hy oin- of two solicitors in 
 the name ot tiie linn, must lie pi(;vt:d to have heen drawn, accepted or 
 indorsed li\ the aiitiiority of the other partner ; lnit in the case of a coin- 
 ineiciil linn this is not nrcessary, 
 authority in e idi partner prcsnni d : /-'/// \. /'i/m 
 
 as there is, in that 
 
 i1 
 
 Car. cV: M. 4,-i:{. 
 
 fiirtl 
 
 icr iiote.s to S.S. '2'2 am 
 
 d -s.i 
 
 Blank a- 
 
 C'.'plaiH'i'iu ly 
 
 til' iiiiiiji' a 
 
 hill. 
 
 Iiini. ^■•I,< -.'O 
 
 lii.lAi't.vJ'i, 
 
 <)iiii.c.siiiii> 
 recti tied. 
 
 When ivini- 
 )ilclril \< I'll- 
 fori'i'abli'. 
 
 Limit H'i I' 
 titiii' aixl 
 aiithciriiv. 
 
 SllllSI'ijtll'Tll 
 
 liiililfr 111 iliii 
 cmrKo iniiy 
 oiil'orce it. 
 
 *-J0. Wlirrc a ^itiiplt' siMfiiaturc on ;i lilaiik jiainT is 
 (lulivcrcd liy tlic .sioucc ju oyiU^y tluit it may 1)0 convLTtcil 
 into a bill, it o))L'rat(*s as a i)riiim ptric autlioi-ity ' to fill 
 it uj) as a complete hill I'oraiiy amount, tisiuj^ the siL,Miatiii"c 
 for that of the drawer, or the acceptor, or an indorser ;'-i 
 and, ill like manner, \vlu;n it liill is wantiiin' in any material 
 partieiilar, the person in po.ssessioii oi" it has a pri uni. hwic 
 authority to till up tlu,' omission in any way he thinks lit: •* 
 
 •J. in order that any such instrument when completed 
 may lie eiit'oreealile a^'ainst any person who lieeame a party 
 thei'eto prior to its completion, it must he lilled iiji within 
 a reasonaMc tinu', ^ and strictly in accordance with the 
 authority i,dven; •"' reasoiial'le time lor this jiurpose :.:* a 
 (juestiou of fact : 
 
 Provided, that if any siicli instrument, after completion, 
 is neiiutiated to a liolder in due course, it shall he valid and 
 
THE lUI.I.S OF EXrilANOK ACT. 
 
 7T 
 
 tflrt'tnal for all purposi's in liis IimikIs, aii<l ho ma}' cnfoire Sec. 20- 
 it Ms it' it liad Ix't'ii lillrd ii]> witliiii a rcasoiml)!*' time ami 
 sttiitlv in ac'CDiM lance with the aiith'jiitv ''iveii. '• 
 
 ' •• /'riinri t'dcir authority.'" 'I'lic law ilcliiit-s the nature nil auiounl of 
 till tviih'ucf wliieh is sutheiei tti i'st<il>li.>-h ;i juinKt j'urir easi', and to 
 lliiow the Isunh'U of proof (lu tlic otluT ji.irty ; aud if uo opposing cviih nee 
 iv (ilVered, tlie jui'y are hound to tiiid in favour of the presiiuiption : 1 
 Tiii/'i'i' I'll /.'ri'/iiirr. 1 ir>. Where the hiw pre.-iuiies tile aliirniatlve of any 
 laet. tile negative of sueli fact niu.st he proved liy tile ]yuiy a\ erring sueli 
 iiiL'.itive: \yil/ii(iii< V. Eitsi liiilid < 'oiii/i(i II If. '2 Knst Ml'-'. A fact i.s •laiil 
 til iir |ir(i\ed when, after eoiLsidoring the matters hefore it, the v'oiirt 
 1 illu r heiieves it to exist, oi- eonsiders its <'xisteliei' so ]iroliahle that a 
 piudciit man ought, under the eireunistanec s of the ])artiiulai' ease, to 
 iict iijion the su))positioii that it exist.s. A fact is said to he disproved 
 \\ lull, after eoimideiing the matters hefore it, the ( 'ourt eitlu'r helii^es 
 th.it It does iiot exist, or considers it.s non-existenee so jirohalile that a 
 |iiuili nt man <iught, uiidir the eircuniHtaiiees of the |t:irtiiular ease, to 
 ;r t iiiiciii the suiiiidsition that it does not exist. A faet is said not to he 
 ]iiii\ ed, \\ hen it i.s neither proved nor disproviil : /mllaii Kriilnir, Afl^ 
 IsT'J. .s. ;{. 
 
 Il.I.rsri; ATloNS. 
 
 Where one 1>. signeil his name mi a Idaiik ;ui())tanee, intending to 
 lu( cime tile the aeee|)tor ol a hill, hut phieed it in a drawer at his 
 ehainlii is, from wlunee it was stolen, and one C. tilled It up and 
 iiigotiated it with a liiiiKi Ji'li holder for v.ilue : Held, that as the instru- 
 III! lit w ,is stolen without l>. s ne<:ligi'iiee. and as lie liad not parted witii it. 
 Mill ;iutliiiri/.id it to he tilli'd up, 15. Mas not liahle ; llnxfiiilnli v. Htniittt, 
 
 ;; t.' i;. i». .">•_>.->. 
 
 if a 111,111 writes his name upon a hl.nik jjiece of |i,T)ier. and another 
 |iiisoii iiht;iins po,..srssion of the name, .ind, witlimit .lUthority to use it 
 fur .my )'urpose, writes a promissoi v imte over tiie same, and negotiates 
 it. .^ui'h note' is not v.ilid. in tlie h.inils of an iimoieiit hoidi r. :iL:>iinst the 
 |ii iMiU w iiose name is suliserihed to it : S'mci v. Ijiri/, ."> Al.i. .'i7<l. 
 
 '■ Where a man lose.s or part,- with his name wriltc ii on a pieer^ of 
 >t;iliiped |iapt r he is responsihle to any /iiKiff //(/' iioider wieli it is tilled 
 lip as a promissory note:" /'i ;• ri_\h>, •\.. n Siriin v. Xmlh llntish 
 A ii'ii-'i/ldii ('i>..'.\'2 I.. .1. Kx. 27*^. Ihit if a Man'; aei eptance not delivered, 
 is |ii>t orstiden without the writer's uegligenee, he is not liahle : />'(//«.< on 
 
 /;.//.. i,s7. 
 
 !•'. of the liiiii of I.. \' Co, gave an aeeeptanee purporting to he made hy 
 the tirni, with a hhink for the n;inie of the drawer. < '. give it to H. for 
 \.ihie. II. tilled U|i tile liill, putting the name of his (inn, H. iV Co. uh 
 iliawers, and indorsed it to hiinsilf. kiiowint; when he did so that K had 
 Mil aiitlioiity to aeeept the hill : Held, tli.it I,, i^ Co. were not li.dile on 
 the hill at the suit of II. ."^emhle. that a /miiii jii/e holder for value to 
 v\liiim the hill had eoiiie in a perfiit state, wt)uld have lieeu entitled to 
 sue : I/n<iaitli v. Latham, 3 (^>. IJ. 1». ti4a. 
 
7S 
 
 THK JHI-LS OF EXt'HAXfiE A<T, 
 
 Sec 20. 
 
 ll.I.ISTKATIlIN? 
 
 Wlii'fo tlic ilcfciidiint sii'iicil, MM iiiiikcr, ;i iiriiiti'd fonn of note, ami 
 
 l.n 
 
 hiunli'il It t.) A.. Iiy wlidiii it was lillfil up fur S.sri.'i, uinl jilaiiitill' uftf 
 
 w.irc 
 
 Is I. 
 
 iliiliil'sfi' of it ior iiililc witlii'ut iHitirc ; llfiil, tlial tiit 
 
 (It't'eniliiiit w.is li ililc, tlioiigli it niiglit liiivc l)L'un liimcliilciitly m iiiqiro- 
 perly Jilli<i ii|i ..r indin-sed : Mrlninx v. Mi/tou, liU V. (". Q. 11. ISK. 
 
 All iiislniiiiciit ill till' fiirin ut u hill of l'XcIi.ui},'!', but accciitfcl with tin/ 
 ili'iiwci's iiaiiii' ill lilaiik, Auvn not exist as a liill until tlic ilrawi r's iiaini- 
 inscrtiii, ami t.'Vt'ii tliiii dous not iTcatc a dolit against tlic j)ai tics to it, 
 
 is 
 
 /, L. 11. (i I'll. .")4(i, 
 
 until value lias ln'cn giviii for it : Kx imrh. Jlaijirar 
 
 WliL'i'i' tin- jiayi'c and indorser of ii notf iniloi-Kcd it for tlio acconiinoda- 
 
 ticii of the III 
 
 lia\iii'' the date and sum lilanU. wlii<li wire attciw 
 
 tilltcl u|) liv till' iiiakiT, and tlic note dated ot' a time l.itcr tliaii tlic lil 'i.k 
 was imlorsc<l, Imt iiiior to the time when the note was actually tilled 
 up ;--IIe|il. that the noti; was good against the indorse!', notwitlistandiiii,' 
 the alteration : Saii/ord v. h'lx.^, 6 U C. (). S. 1(»4. 
 
 Where a note i.s sij^ned ami delivereil, with a hlank left for the .sum 
 piyalile tliouudi the tirst holder is restricted as to the amount to lie 
 inscrteil. yet, it' the note comes into the hands of another, who, without 
 notice of the restriction, tills the lilank with a lar<.'er sum, the maker « ill 
 lie IioiukI liy it: ISanh 'if Coinmoiiifaillh v. I'lirnj, '1 liana. (Ky.) 1-1-. 
 
 It is no olijt'ctioii to the validity of a note, that wdieii indorsed to the 
 jilaintiU's it was not signed liy tlu' maker ; the sul)se<|iicnt lillin;,' \\\> of the 
 
 inak 
 
 er"s name, or of the amount, or of a payee's naiiii' 
 
 ill 
 
 treated as 
 
 if made hefore the indor.semeiitji : livs' 
 
 III V. 
 
 Mc< 
 
 >(,'•///, 
 
 r. c. i). r.. KKi. 
 
 Where a hill which had a blank space left for the cirawer's name, came 
 into iiosscssion of an administratrix, ;ifler it wasoverdue, and .she inserted 
 
 icr ow II name as drawer 
 
 as iliawir. 
 
 Hehl, thatsh 
 
 as entitled to insert her nan 
 
 .Old sue on the hill as ailministratiix : S-nnl v. Jitrh- 
 
 :u 1, 
 
 T. i; 
 
 (.■[). (i.)/i 
 
 p. Diilrl, V. <j'/.t<in/, o Ir. L. U. If.'. 
 
 Any Itiiiiii li'lf. holder of a noteilrawn payahk t< 
 
 or order, nuiv 
 
 insert his own name in the hlank as [layce : Mutual StiJ' /i/ Ins. Cu, v. 
 
 'or/< 
 
 All. N. 15. -J.-id. 
 
 " .Section 12 authorizes the holder of any undated hill payahle at a fixed 
 date after. </;//(/, to insert the true date. This section ajiplies to all kinils of 
 bills, which, in the hands nf a "person in possession," may be " want- 
 ing ill any material particular," and authorizes such person 'to till up the 
 omission in any way he thinks lit.' The expression " person in pos.ses- 
 sioii," mii-^t he reatl with the limitations shewn in the cases cited. Sec 
 tile (letinition of •' holder ' in s. 'J ; and also in s. L'it, where " holder in due 
 course " is dcliiicd to be " one who has taken a hill eoinplete and regular 
 on the face of it." 
 
 Il,[.rsTR.\T10NS. 
 
 A. held a note of 1). with divers iudorsers, which at maturity was 
 arrangeil to be renewed. Ii. drew another note, which he si.,'iied, and 
 to which he obt lined tli'j signature of the other iiidorser.s ; the time of 
 payment was left hl.ink, but 15. represented to some of the indorseis 
 that tour months was tlie time agreed upon. .\., however, had no under- 
 standing on this point with any of the indorsers, and after he received 
 the note, he lilleil in the time of payment as three months ; — lIelil, that 
 
THE r.U.LS OF KXCHAXCiK ACT. 
 
 A. was autliari/.ftl to till tln' Klunk, fixing; tlic tiiiu- of jiaynn'iit, jukI tliiit 
 lu' was nut iiDiiinl liy tlir agrcfiiit'iits of 11. with tlii; iiiiloiMrs, of wliicli he 
 liail iin notice : Juhus v. Jinrrisou, "JO Iii(l..'{l7. 
 
 •• If a iilind mail, or a man wlii< cannot read, or wlio for .sonu- reason (not 
 nn|i'.iin)4 nc^'li^vncfi forlx'ai's to read, lia.s a written contra<'t falsely reiiil 
 ovf • to liiiM, tile reader inisleadinj,' him to sncli a dej;ree that the written 
 roiit.'act ).•> >i a natiirt! altoj,'ether ditlVrent from the itaper which the Mind 
 or illitv'rate man afterward!* sign.s ; then, at least if there he no neuligi'nce, 
 thi' sii;nai,;;i<; so ohtained is of no force : " J'lr Uylis, ■)., in /•'«</<■/• v. 
 M.i-liniioii. L. K. 4 C. 1*. 711. 
 
 " Negligence in the maker cif an instrunuMit payable to hearer, maUes 
 no ilill'erence in his lialiility to .an honest holder tor value ; the instrument 
 may he lost liy the maker without his uegligen(;e, or stolen from him, 
 still he must i>ay : /'' '' Byles, .J., in Sir.m v. Xnr/h lirilisli A n-iirnlinn 
 r.,., •! H. it V. 1.S4; '• If thiit he ri-lit, it can only he with reference to 
 the case of a comjilete instrument, ii can hardly he ,t|i])lic,ililc to a case 
 where a man's si:,'nature has heen ohtained l>y a fi.iudulent re|iresentatioii 
 •■i-; to a document whiidi he never intended to sign : '' Pi.r ilyles, .J., in 
 Fvsirr V. Mtii-L-innun, L. |{. 4 C. 1'. 7U!). 
 
 Wh.rcMhe maker of an ai^ommodatioii note wrote on it "Halifax, 
 Ts. S., (), 1S7.">. " and signed it in hhink, in the month of .linu-, and the 
 |irr>nn to whom it w,is L;iven, alteii<l the (i to S and w idte ''.lune ' ovel' 
 ih'' ligures, the (Itli .hine lieing .1 Sunday : Held, that he was authorized 
 to do so : M !■ ixIkuiI s liatik V. Slir/iinj, 1 l{u.s.s. it (iei. 4;{1t. 
 
 A. agreed to jf)in his l)rother in .a note for his accommod;ition, provided 
 11. Would also join. A. accorclini.dy signecl an instrument in the form of 
 a note on condition that 11. Joined in tlie note, a hjank Ining left for the 
 name of the payee, 11. refused to join, and .afterwards A.'s lirotlier 
 delivered the imperfect instrument to (". for value, lepresenting that ho 
 hill authority to deal with it, and ('."s nanu' was inscited as payee: — 
 llehl, th;iL II. iking the instrument complete, contrary to the condition, 
 rendered it a false iiisiriiment as against A., .and that V. could not recover 
 on tluL. note against .A. : Avilt v. Dixou, Kx. Stil). 
 
 ' When no time is expressly .aentioiied for the performance of an act, 
 the law considers it shall take place within a reasonalile time : (Inuvia v. 
 .l'/(///(, 3 Camp. 4l.'() ; .'''llf v. Thoin/isoii, 'A M. &. W. 44,"). In iiet,er- 
 iiiiuiiig what is a reasonalile time for making tlielilank paper "complete" 
 as a hill or note, there must lie taken into account the purpose for which 
 the hill or note is to lie used, the ordinary liini*' of eretlit on such securi- 
 ties, and other contingencies, as well as a failui-e of the jmrposi', or a revo- 
 cation of the authority to till up or use the hill or note. A (piestion of 
 re.isonalile time for the jierformance of an act, is a <|ue,stion of fact, and 
 ii'it of law : Startup v. M,tcdoii(tld, '2 M. it (ir. 'M't. 
 
 Ilmtstrations. 
 
 A " reasonalih; time" for the accejitaneu of a hill would lie very soon 
 after its date ; /i'vhut.s v. Ihthrll, 12 C. H. 77H, IG .Jur. 1087. 
 
 A hl.mk ]iromissory note was given liy a dehtor to his creilitor in duly, 
 istd : in .May, 1H.")1. he got his discharge, and on -JOth Octolier, l.s."r_', the 
 hliiiks in the ]iromissory note were tilled in, and it was negotiated for 
 v.due. The jury found that the n<ite was tilled up within a reasonalile 
 time, considering the circumstances of the maker, and the jirohahility of 
 his heing ahle to pav it; ami the tinding was sustained : Titnidt v. /'ulleit, 
 s Kx. ;}«U. ikitsee A'e Bd/u/l, 34 Cli. I). 5G1. 
 
 T!) 
 
 Soc 20. 
 
 ti I 
 
80 
 
 Tin: lUM-S ol' i;X(:iIAN(JK ACT. 
 
 Sec. 20- ^' Tlio clause luakfM no reHtiictii)ii as to the pivrty who ma y cointrt 
 ' " tlin sim]ilf sij,'iiatmt' (111 a Malik papiM- " into a hill. It has liccii held, 
 
 that it i.s iHit ni'i'cs.s.iry tiiat tlii' lull slmulil lie drawn liy the s.iiik' pcisdii 
 to wlic'iii llu' a('cr|it(ir lias haiidiMl the lilank .leceptancc : liiihn mi ltill<, 
 \A'^ II. I''riiiii tlif latter part of tlit; claii.se it may lie inferred that " the 
 |Hti'Hoii ill p'l.ssessioii '■ lui« the nL'ee.-4Siiry prima Jacic authority. Itiit as 
 hetweeii the immediate parties, notwithstanding that the pieviou.s <leeis- 
 ioii.s have not lieeii ipiite haniionioiis, the law now rei|iiire.H that the 
 iiKstnimeiit shall lie lilled up "strictly in aoi'ordaiiee with the authority 
 given." I»ut note the elFect of the proviso as to this condition. 
 
 '■ Where .1 lidl is aeee])ted ill lilaiik for the piii'iiosi? of lugiiL,' ncL'oti.ited, 
 and afterwaiiis tilled in with the name of a )ierson a.s drawer or in lorser 
 whose siiiiiature i.s for^^ed, or is the name of a lietitious person, the 
 aeeeptor is iialile to a hiilder in duo course and cannot >,'ive evidence of 
 such forLjeiyor tict itinusne .s : Luinloii uml S. W. limih v. Wcntirdi/li, 't 
 \']\. I>. '.(il. "The (ilijectof tile law-iiierchaiit as to hills and notes iiiaile or 
 liecome [lajalile to hearer, is to secure tlieii circulation as nioiiey ; there- 
 fore honest aci|uisitii"ii confers title. To this des|)(ptic hut m-ecssary 
 priiii'iplc the ordinary rules of the coiiimoii law are 'iiade to lieiid. Tjie 
 mis-apiilic;iliiin of a ^'ciiuine signature written across a slip of st.iiiiped 
 papei (which transaction, lieinu; a forgery, would in ordinary oases I'onvey 
 no title), may give a good title to any suiii fraudulently inserted v.ithin 
 the lii'.iils of the stamp, and in America, where there are no stanii' laws, 
 to any siiiii whatever :" J'l r IJyIes, ,1.. in SiiHin v. Xorlh linli-ih A rii/imi 
 Co.. •_' 11. iV ('. 1st. The aliove dictum, and the unrestricted terii,.s of tiie 
 elausi', must he accepted with some ijualiticatioiis, and should he read as 
 applic.ihle oidy to "such iiistrunieiits" as are deserihed in it. See the 
 eases to note 'A iiiit< , and notes to s». 'I'l, '1\, ."i4 and ;">."). 
 
 Kill ii(.(. 1.111- *J I _ Kvciv contract on a liill, wlu'tluT it i.s tlicilrawui's, 
 
 plilc until 
 
 .leiivrry. \\]q acct'l )t oi's of all iiii loTsi'i's, > i.s iiicoiii]»lfte Mild rcvoc- 
 
 linp.Aot.s.JI I _ ^ _ ' 
 
 iiui..*ct,s.»ti alilf, until (Ic'livevv of the in.stnunuiit in oidiT to irive oHuct 
 
 Not id" of 
 m'Ci.|)l;iiiii' 
 iiiiikea it 
 irr«vociiblf. 
 
 DeliTery. 
 
 When 
 cfTuctUBl. 
 
 tlu'l't'tO : - 
 
 Provided, tliat wlicrc an acceptance i.s written on a bill, 
 and the drawee give.s notice to, or according to the direc- 
 tions of, the person entitled to the hi!' that ho ha.s accepted 
 it, the acce[)tancc then becomes complete and irrevocable:-* 
 
 2. As between immediate parties, and as reganJs a remote 
 party, 4 other than a hokler in due cour.se, the deliveiy — 
 
 {it) In order to be ettectnal must be made either by or 
 under the authority of the part)' drawing, accepting or in- 
 dorsing, as the case may be ; 5 
 
TIIK l!IM,.S OF EXCIIANCi; .' ( T. 
 
 M 
 
 I 1 I 
 
 I i 
 
 (//) May 1h' sliDWU to liuvt- lu'i-ii cnivliiiniial or (ni- a Sec 21. 
 si»«(!inl i)nr|)o.st' only, iiiid not fur the purpose oftiunsfrniii'' '"-'I'li'ii- 
 the property in the bill;<J 
 
 liiit if the hill is in the liands of a Imlilci- in ihir course, < .n- 
 a \ali<l ijfiiverv of the hill liv all i)Hitirs prior to him, so iian.ix.f 
 a^ to make them liahle to him, rs conelusively pirsumeil: < ci.iii>., 
 
 .'). Where a hill is no lonu'-r in the po>sr>sion of a i)artv ^*"'ii '"li'J 
 
 . . ilcln.Ty 
 
 who has signed it as <li'a\ver, aceept(M" or in'loiser, ^ a valid pnMiuled. 
 and nneoriditional delivery hv him is presumed until the 
 contrary is proved. '•' 
 
 ' 'I'lif tcriiis cif tile sc|i,ir,iti' I'liiitr.'Vi'ts in a liill (if cxrli.iiii.'f of tlic paitics 
 111 II! i.iiriuMl, will iif fiiiiiiil ill tlic fiiiluwiiig sectimis; hniwcr'K oontnu't, ss. 
 Id ami .")."»( 1 1; Acfoplor s (•(iiilrai.l. ss. I", 111 ami ">4 ; liiijursi'r's I'diitract, 
 .■-.s. I(i ami ">.") ['2}. 
 
 '' Tlif lialiility of llir puly iiiuKt hi-- miitiMi't as aimvi' iltliiRil, is 
 iiToviiciil>l<; on tlie cmiiiilftinn nf two sc|i:iiato arts; i 1 1 t In' w ritiii:,' uf 
 his sigiiiitiiro (III tilt- liill liy tlii' party t ) lie ImhuiiI ; ami cJ) \\\v ilflivcry 
 ot the liill sit Migni'il, t(i tlu' party to wlmm !l is traiisfrml, so as to ,t,'i\e 
 till' pii>si.;s.sioii, or till' ri-lit nl pii>.srssiiiii. 1). till- liill t'l till! piii|ii r party. 
 Si'u s. ,'{| i( .-it'ij. as til llic iicgiiliatioii uI liilU ">\ ;mliir.--riiiiiit aii'l ilili\cry. 
 
 Ii.i.isritAriiiN- 
 
 " A transfer of a Mil im aiis imlorsenioiit hikI iK'livti'y : ' /'• r Kolfr, 15., 
 in llriiiiKKji V. IJtijii/. 1 V.K. '.i't. , 
 
 If the ilrawff writts liis naiiu' on a liill witli the intention to ai'i'opt, 
 111' is at hill rty to erase ami taiieel liis aeceptanee at any time lufore 
 tlir bill IS ilelivereil, or licioie tlie fact nI tlie aeeeptaiiee is (•oiniimnieated 
 to the hol.ler ; ( 'o.r v. Ti-ii. .") li. & AM. 474. 
 
 If !lie ai'i fpt.UK'e lie so caneelli il. ami the Imlilrr eaiise the hill to he 
 liiit.il for iioii-ieeeptanee, he eaiiiiot aftei wanls sut' the ilrawee as aeeiptor : 
 ll'hiinri; V. hoi-r'fii. ti Kast l!l<t. 
 
 The iieceptiiuec of a hill though rovoeahle at any time In fme ileliven-. 
 is. if iinreviikeil, I'oiiiplete as soon as written on the hill : ami the eoiitract 
 i^ iiiaile in that place where the hill 's aeeeptnl. not where i'. is issiieil : 
 • If/i/. V. .s7m /•;.!<»/(, "Jl L.J. <,i.l'... "JtiO : hi .liir. 4-Jt;. 
 
 \\ lure a hill was left for aeecptaiice ami aeei ]iteil. hii*^ ^\\v aeeejitaiiee 
 ^^a^ .ilierwanls eut oil', and the hill retiinieil in that nmtilateii state : — 
 IliM, that the aeeeptamt> heiiig onee maile. it emiM not he levokiil. ,-iiul 
 tliat the iiooeptor was iiahle : '/'riiiiiinr \. (hldii-. I'layhy on l;ill>. 1(11. 
 
 \\ here a joint ami several note wa.s exeeuteil, ami htt in the li.imls of 
 M . one of tlie makers, to In' deliveiiil to the Jjayee on demand in exehangc 
 i"r a note of tlie same amoiiiit, hut of a t'evitius d.ite. signed hy M. alone, 
 iiii I Ml) di'niand was made therefor hy th»' payee, hefore the death of M : — 
 Ih hi. that not h.iving heeii delivereil, the property in such note had not 
 ^e.-ied in the payee : Caiijiilil v. /p.s IS I'iek. iMass) '.Vill. 
 11 
 
 I I 1 
 111: 
 
S-2 
 
 TIIK l!ll,l,S (»F KXvMIANUK ACT. 
 
 Sec 21- I'lu' i»)-isr.M.siiiii of ii ni>t«r is /iiliiin j'irii eviilcuce of a di'livcry to tlic 
 — liosx'Hsi.r : /;-//.,//• s V. I'nlsiini J l!<>l)t." (N. V.) 43. 
 
 hflivcry is nci'i'ssary to tlir <'otii|plcti- fxciutioii of :i pioiiiissoiy iiotf ; 
 hut it tlic |i:iyi'f olit.iiii |M(ssi'ssiipii tlici'fof liy fraud, lit' ciimiot iiiiiiiitaiii an 
 action tlicr.'/m : l',i,-li i- v. M<(/i,iliir/,-, •_>',» .NJo. 4(i4. 
 
 A 1)111 of cxriiiiiit,'!' traiisiiiitt<'il to A. Ii., in < 'harlfHton, for liis who, Up- 
 (•oMKts his luopcrty as .soon as it is piii into the mail at liivfr|»ool. An 
 action insiilulcil on it in liis niiim', at any time .iftcr it is mailril, will ho 
 Hiistaincil, if the hill is proiuufil at tlit- trial ; Milr/ull v. /{ipic, (i llich. 
 (S. C, 171. 
 
 'I'lif riih's of tiif Krcnoli |iost-o(lii'i' pci'mic a jici'son to rccoviT a post 
 letter at any time hefore it is ilespatelieil from the olliec where it is posteil. 
 Theretorc, where a letter eontainin;^' iiills of cxchanj,'!', inilorsed to the 
 per.soii to w liom the letter was aililresijeil, was posted in a l'"renidi jxist- 
 ritlieo ; -Held, that the propiTty in the hills did not p.iss to tlie indorsee 
 till the letter had left such postdllice : A'.r //a/Vr r,,^ . L. |;. (» I'h. 27. 
 
 A ilefenilant, wanting money, dt- irtid '!'.. a discount hroker, to pr<icure 
 him t'l()(» on discount. 'I', asked tor security, and the defendant >;ave 
 his clu'(|ue for tlhlt, pay ihlf to T. or hearer. T. alt»'rwai'ds ohtained tlu 
 money from the pi lintiit', handed him the ehei|ue, paiil over the money to 
 the defenilant, .iiid ;it the s.ime time received L'l."» from the defendant for 
 discount, of « lii(.-h he kept i;7, nud |):iid fS to the plaintilf. The clefen 
 dant afterwards re(jueste(l time for the payment of vhe cheipie, and T. 
 j,'ave' time witliout inferring to the plaintitl, or mentioiMn<.' any lender hy 
 name to the defendant. In an action on the ehei|iie ; Htdd, that a jury 
 was w.irranted in timling a didivery of the ciiecpie hy the defendant to 
 the plaintilV ; Siiiini(/v. Uran, 10 0. H. '2(>-' ; 1 1 .lur. "()(»7. 
 
 S. sent the halves of two hank iu)tes to M. to pay the same to \\'.; hut 
 the arrangement witli \V. went otV, and S. reijtiireil .M. to return the 
 halves of the hank notes ; -Held, that the transaction was an incho.iti' 
 tiansfi^r, and jiartial delivery, and that the right of |»i(H)erty in the hank 
 notes remained in S.: Smith v. Mini'h/, (5 Jiir. N. .S. !I77. See I'ldtuayio 
 V. lim-ton, -1 L. T. N. S. \\-l\. 
 
 A firm waa indehtcd to 15. One of the partners was l>. 'siigent, and in- 
 dorsed in the tirm's name a hill, and placed it amongst ceitain securities 
 whii'h he held for l>. , hut no cummuuiuation of the fact was made to IJ. ; — 
 Held, a good indorsement ami delivery to 15. : Li/ndi/lif v. lirynut, 9 C. 
 15. 40. 
 
 ' The act of acceptance must he in writing on the hill, hut the notice of 
 the acceptance of the hill may he either written or Verl)al, or may he hy 
 «ome act from which notice of the acceptance may he infei'red. Hut if 
 the laiiguage he eijuivocal, as "your hill sh.ill have attention," it would 
 not he held to l)o a notice of acceptance. .See note 'J, to s. 17. 
 
 Illit.str.\tiox. 
 
 Y. drew a hill on T., wdiich T. accepted. The hank )>ecame the holder for 
 value Hefore due date it was agreed hetween Y. and the hank, Y. assur- 
 ing the haidi of T.'s concurrence, tluit the hill should he renewed ; and Y. 
 ol)tained an accepted chenuc from the h.ink for the amount of the hill, to 
 the intent tiiat T. .should he placed in funds to retire the origin.al hill, and 
 should thereupon accept the renewed hill. Y. sent the new hill to T. for 
 acceptance, and also sent him the cheque, aii<l T. knew the purposes for 
 
TIIK IMIJ.S OK EXCHANGE ACX 
 
 83 
 
 wliirli liotli were scut. T. I'lislicd tlif <li«i|ii('!iml ri'tiitd tlu; first bill, Imt. SeC- 21. 
 
 rclii-icil toiiL'ci'iit the sfcoml ; -llclil, lli.itT.'s .iccfjit iiij,' inul ii|i|irii|iriiitiiin ' 1—^' 
 
 the chciiilf, WJi.-j II ifpKsciitiitioii to the liuiiU tliiit ln' wmilil ;ifii'|pt llif l>ill : 
 'l\iimtici V. llnul- iif llrll'isli Xnr/li Annrivn, 1,. li. 5 I'. ('. '_Ml>. 
 
 WluTf tlio holili.'is i(f ii l)ill thinking tht- iu-i-cptor wnulil he iiii.ihlt' to 
 nii'i't it at niikturity, toh'urapluMl him to draw on them, and the aereptor 
 on the repfeseiitation of tiieir ti'h yi'ani. incjuued n liank to cash a si>;ht 
 draft on tlie holder.-* for the anmnnt of tiie hill, and retireil it ; - Hidil, 
 tiiat the l>aiik was entitled to reeover against the holders the amount 
 adxaneedon the faith of their telegram : /litiik nf .\l<iiilr< nl \ . TIidiihi-^, 
 hi Out. K. ")().■<; s. ]). M'llsuii-i llmiL- v. S,i/nh>itr. '_':< L. ('. d. 51 ; /»/(/■//> v. 
 I!',ir/„itil, 4(» ilarh. (N. V.), ;i(iS ; hi,-'«,ii'-< v. Armor, W I't^ers l). S. U.S. 
 
 ' Tile e.\jiressiou "immediate parties," means those who are in direct 
 n lation to each other in respect of the hill. The Imliaii Act (s. 44| gives 
 l!i(' following i^xplanation : " The drawer of a hill of exchange stands in 
 iiiimiiliatc rel.ition with the acceptor. Tht; maker of a promissory note, 
 liill of exchange, oi- cln ipie, staiid.s in immediate relation with ihe payee, 
 and the in<l<»rser with his indorsee. Other signers may by agreement 
 stand in immediate relation with a holder." The term " remote party ' 
 \i> a hill, is not referreil to elsewhere in the .Act. 'I'he danse excludes a 
 •■holilei'in due course" from the nn'aning of the term. Olivioiisly it 
 ii'fers to some " j)arty "" between the " immediate j)artics," and a " holdei' 
 ill due course," who must stand in some relation to the bill similar to that 
 cf the intermediate parties. 
 
 ■ The authority to deliver a bill for or on behalf of the drawer, acceptor, 
 or iiidorser, niiiy be either express or implied, as in the cases of [lartners, 
 agents, or trustees, and subji'ct to the limitations prcseribeil by the clause, 
 lint the title of a holder in due course will not be aflccted by an unautho- 
 rized delivery of "a bill complete and regular on the face of it.' 
 
 iLI.I.srilATIONS. 
 
 .\ hill which is drawn payable to the onler of the jnyec, is not trans- 
 ftraiile without his indorsement, and an authority to indorse the hill 
 iimnot be implied from the mere act of delivery of the bill to a holder : 
 limn,)) V. Fislur, !(» C. IS. N. S. ]{»0. 
 
 .\. indorsed a note, but did not deliver it. After his death his e\ee\itor 
 ihlivered the note to the plaintilF; — Held, that thest; two acts did not con- 
 stitute a delivery, anil that the plaintiti' had no title to sue on tin; note : 
 llromrKjf v. Lloyd, 1 Kx. ',V2 ; s. p., C'/ro-/ v. Snjoiirin i/, 17 Conn. ')71. 
 
 The tith; to a bank note payable to bearer, passes bj' delivery, and 
 thiiu_'h stolen, becomi'S the property of him wlio, having no notice of the 
 rolihcry, gives a valuable consideration for it : Millir v. line , 1 IJ.irr. 4.")'-'. 
 Sec also ivi/thiiil V. liiink of Eiiijlimil, 17 C". H. Itil ; HuviliiKin v. Ihirrti/, 
 <; A. & E. 870. 
 
 ' 15y 8. ,"} a bill must be an " unconditional order ;" but by s. li) the 
 iirceptance may be " conditional, " or dependent on the fulfilment of a 
 roudition therein stated ; and by section '21 the indorsement may be con- 
 diiional, and the delivery, as between the parties naiued, may be " eondi- 
 
.s+ 
 
 THK nil. IS o|' KXr||AN(ii: AlT. 
 
 Sec 21. tiniinl " And if tlic (■•iiiditiiiiiM sf> (iiiitTdllint; (lie rcKiicctivc nctH of tin- 
 partus jipiMar 1.11 tlic liill. ifH iicgdtiaitility is iillictdl, f.\r(|)t in tlir rn.-c 
 of a cciiidifional iiidoiHcnitiit, \^liicli undir h. Xi may lu' di«icv;aidtil l.\ 
 till' |ia\fr (a( c.iitdr) of tlif l.ill, hut not liy flic otlnr jiartiis allcctdl 
 tlicifliy. Tin; (.'(inditional delivery or siiecial |iiir|io.HL' lu'it; ivftried to, 
 may iicate the rtilation of |irintijiul and aj;tiit, or pledgor and pUdgee, or 
 trustee and ns/iii ijiir /nM^ hetween tlie transteror and transferee ; fur 
 the dejivtry hen; <letined, is not to have tlie etl'eet of transfi rinu; tlie 
 iihsolute property in the hill. Sec nc^tes S and !). p. •J'.t. 
 
 Ii.i.r.sii{.\TioNs. 
 
 Where .\. signed and delivereil a ncte to ]',. . to he held liy H. for ;i 
 Hpeeial puijiose. that he should hold it for A., and not negotiate it;— Held, 
 a gooil (Kienee : H/.-v/irc v. }\'i.sitii r, '22 V. ('. (.). i>. 44fi. 
 
 A hill waH drawn hy A., and aecejited hy H. for the purpose of lieinu 
 diseuunied for the henelii of ]>. W'hde in A.'s h;inds hir that puipose, he 
 indorsed it for v.ilue to ('., who was told it helongtd to 15. ;- MeM, that 
 tlie propt rty in the hill \\a.s in !'., and that he eoidd niaiiit;iin trover for 
 the hill against r.: Emus v. Ki^imr, 1 I!. iV Ad. ".'JS. 
 
 Kvidenee is aduiissihle to show that a iloeunieiit, ainiarently an agree 
 nient, Was signed with the intention of making it an agreennnt only u])oii 
 the happehini,' of a certain event, which has not occurred : i'/,))i v. Cam/' 
 hill, K. & IJ. :(7(>. 
 
 It is coniiieteiit for parties to show that it was not their intention in 
 siL'iiiuir a diiiunienl, that it sliouhl opciate as a contiait : A'071 rs v. lladlfh, 
 •J 11. \ f. 21-. 
 
 ' In ordinary cases where a hill is genuine in all respects, anil with ;i 
 genuine iiulorsenient in hlank hy the jiropcr tiwner, oi' holder, tin; jio.sses- 
 sion of it is sulliiient to entith: the persoiL producing it to receive ]iay- 
 meiit thereof. l''or such a possession is priiiio farif., or prr.siiittjifiri . 
 evidence that he is the jirojier, owner, or lawful possessor of the hill; 
 and indei (1 it this doctrine did not prevail, the acceptor woidd in many 
 lases ]iay .it his )ieril, whi're the true ow ner or holder was unknown to him : 
 and eniUos endiarrassments would grow out fif the negotiations of hill- 
 w liicli, in a vast vai iety of eases pass hy mere deli\ery from hand t^ 
 hand. It is thereloru for the security of all ptrsons that the rule i> 
 adopted tt) jiievent innocent holdeis fri ni heing c( mpelled to estahli.sJi 
 their titles liefore tlie acceptor will he hound to pay ; and they may hi 
 bona title puichasi rs and holders hy mere delivery, without the knowledge. 
 or mean.s of knowledge, of the persons thidugh whose haiiils the hill ha- 
 passed hy <lelivery, after such a hlank indorsement : Story in I'tilts, s. 
 41,'). 'J'his clause therefore provides that wh(n it is estahlished that tlir 
 holder <if a hill comi's within the definition of " a holder in due course, 
 a valid delivery to him is conclusively presumed, and cannot he rehutted. 
 
 termed 
 
 ley 
 
 II" 
 
 prt 
 
 ipti 
 
 I'll 
 
 of law, are rules determining the (juality of evidence rtquisite for the 
 support of any particular averment which is not permitted to he over- 
 
m 
 
 n 111 
 
 Till'. r.ll.l.S (»1' K.\< IIAMii: ACT. 
 
 Mo 
 
 I'liiii 
 
 (• liy any pniof that till' fact is ndici-wisi'. 'I'licy hiivc I ii ailojitt'il See- 21. 
 
 liv c'l'iniiiun ciiiisciit, fiiini mntivi.s ul' ],iil)lii' |inlii'y, fur tlic h.iUi- <if >,'i(':it<'i' 
 certainty, .'iiiil tin' |iriiinoti(Pii n! pi'aci' and c|iii«'t in tlic ("iinriunity ; and 
 tliiTi'iorc it is tliat all ciiridlioratin^' cviilfncf is (lis|i('nscil with, ami all 
 r.]i|i()siiig cviilcni'i' is fi)rl>iclil(ii : I Tuiilnr uti Kn'ili iia , ~>\, This is 
 
 .-iiiiilar til a pf' 
 
 >n in 17 A IH Sict. c. s'A (lnii.), w liiiii |ii(i\ iijcil that 
 
 tviMy liill <>t i^xch.myi! w hitii |iurpiirtt'il to lie dr.iwn in any |il;ii'i' dut <>f 
 thi' rnitcil Kin<.;(liini, shoulii Ih; ruin-lusiri /i/ iltH^nieil to l)t^ a fori'i;,'n liill, 
 ' ii..twithstaniling tliat in fact the same may hiivu heuii drawn within the 
 I'liitiil KinLrdoni." 
 
 itcntion in 
 
 TIk' piinr chiusi' is allinnativ c, wliilr this is ni'^ativc 
 
 >ii.i r 
 
 I'lini itH 
 
 wirdiiiic, it ni ly yet lie a i|iiistic.n how f,ir it may lie said to vary the i-ircct 
 <ii thi' pruccdiii.,' I'lausi;. Thv I'oi'nicr iiiakts tlu' ])oss('ssion of a hill l>y 
 "a hoMi r in due coiirsc," ri)iirlif<irt (evidence of a valid didivciy to him. 
 Wh'ii in the hands of sni'li a holclcr it is " no loiij^'cr in the |)osscssion of 
 till' party who has sij^'ncil it as drawer, acceptor, or imlorscr." lUit this 
 rliuisc provides that when sneh negative fact is estahlisln'd, it is not 
 eonclusivu, hut may he rel)Utt(.'il. This cdaiise must also lie considered 
 witii s. ."), which ilctinos w liat are the estoppels allietinj^ a drawer and an 
 iuilor.ser as against a holder in due course. |)isputaiile presumptiiuis 
 
 )f tile lioman law, may always \w. 
 
 oils, as 
 ill the class ot conclusive evidence, h.ive heeii adopted l>v common consent. 
 
 answering to the /irir^nni/iiioiir.s Jin 
 
 ircoiiic hy opposing proof. The rules in this class of presimipti 
 
 Idi 
 
 >ri'ii|iliii< 
 
 i-l 
 iiniii notices of piihiic' policy ; yet not ;is in the fmnH i- class, fc ^ 
 
 all further evidence. Imt cmly dispensing with it till some proof is given 
 t'l leliiit the presumption raised. Thus as men do not generally vinl.ite 
 the penal cole, the \n\\ presillin s excry mm innocent ; hut suiiie men <!•> 
 
 iMiiSi'ress 
 
 it ; and therefore evidence is n 
 
 <1 t. 
 
 '■I 
 
 cKll 
 
 P 
 
 '1' 
 
 tinn : 1 Taijliir oh Kritliif'i, 11."). The following are some of the cases on 
 tlir cciiistruction of cmillicting clauses in a statute. The intention of the 
 l..egislature must he ascertained from the wonls of a statute, ami not from 
 any general inferences to lie drawn from tin' li.iture of the ohjects dealt 
 with hv the statute: /'(in/iiri v. /in'di's, j II. h. ('as, I,s. c. II .lur. 
 
 I'he language of a statute taken in its plain ordinary sense 
 
 id not 
 
 its su[ipos<d intention, is the safer guiile in eonstrning its jiarticular 
 eluises : I'hiliivli V. .S7. ilairiit's //o.^'jiifit/. (j 11. L. ('as. .'<.'{S. Wherever 
 t\M) parts of a statute arc coiitradictoiy, the ('ourt endeavours to give a dis- 
 tinct interpretation to each of them l>y looking at the context : /'<c Lord 
 Iciniilly, .M. 11., ill I'ritfji v.SnI/i/, "ili lien. (ilO. It is a sound ]iiiiiiiple 
 ill tile exposition of statute- that less ir_:ard is to h'.' [laid to the w(U'ds 
 ii-'id, than to the policy which dictated the Act : liriiiDn'" /.•',i<t/ M'ljiiii^, 
 (titli ed.) ■").'}!). Also if any section he intricate, ohscure, or ilouhtfiil, the 
 pinper moilc of disi:overiiig its true ineauing is iiy coiiipaiing it with the 
 etlier sections, and liiidiiig out the sense of one clause hy the wiuds or 
 "hvious intent of another : /'<((/. .")4U. 
 
.Sd 
 
 Tin: nil. IS (IF l.,\«'IIAN(iF, ACT. 
 
 Sec. 21 
 
 TUf /iriinn j'lirii fact u liii'li iimy I'l' iii'^iitivt'd iiiii1»t ilii;* clnUHC JH .1 
 
 ~~' vnliil ami uiiroiiilitiniml dclivi'i-y of tln' l)ill liy iiiiy niifiif llic | irticHnbovo 
 
 nailicil. Hllliji rt til tln' |ir<iviMin||s <if tllin .Act IIH to the title lit' II lliildtT ill 
 
 diU' fiiiiisc, I'liiir rasi'H kIicw tiiat it in iKJiiii.-'fiiiilr to pnivf that llie iluli 
 very waH iDiiilitiiuml, nn ilenoiilwd in claiiHu '2 [li) ; or that flu- iKHtninieiit 
 wan nut til (i|)riatc an a ciuitiact iiiiir.';s a I'crt liti L'tiiiilitimi was |iiTfiirim'il : 
 J'yiit V. ('(iiiijihiU, (i ]•;. Si r.. ;i7(); '-'.Im. N. S. (ill ; m- tliat tliiii; wa?' a 
 udlliitcral n^'ict Hunt varying tlic writtiii cnntiact : .1/'. *•;/«;( v. ilr'tffilh, 
 L, I!. (1 I'lx. 7<* : Alirij v. Cmx, \.. \\. .'1 ('. I'. W, ; m t" impiaili the cim 
 Hiilir.itidii fur tlio hill an iHtwcm tin- maker ami thr Jiaity tn «lioin ho 
 gave the note: I'd- I'arke, U., Fo'<trr v. Jvlhi, I C. .\l. iV It. 7»is ; h. p. 
 O'/lririi V. A'Wf/, IS l). ( '. ('. I". 'JH ; nr that tlie note wiih u securi'y that 
 the phiintiU" would sn|i|iiirt tlit^ maker, and not negotiate the note : W'istn'i 
 V. WisniT, '2'2 r. I', i). IS. 11(1 ; or tli.it the eontiai t h;is lieeii discharged 
 
 hy iiaym lit or otlu'iwise ; 7 
 
 nniKiii V, 
 
 />l3 
 
 'J I'ligs. ."k Mur. Xi ; or that 
 
 the liill w;is aect'iited for tlie ;i(i oliiinodation of the dia«er, and that the 
 holder gave time to the drawer, tht lehy disehaigiiig the aceejitor, wluni 
 he knew wa.saniere surety: (inninl v. Oi'i(>ilii/J''ih(iiiii(il<'oi/ioralii:ii, 
 
 L. 11. 7 II. I-. ;i4S. I'liit w lien onei' fraud, dtiiess, 
 
 force ami fear, 
 
 or other illegality, are proved hy a lUfemlant in an action on a hill 
 or note, the hiirden of proof that the plaintill is a " holder in due coiirBe " 
 
 is shifted on him. The fi 
 
 olldW 
 
 ill'' t;ilile indicates some of the chief grounds 
 
 of defence on the part of the ;icccptor against the drawer, and also against 
 the indorsee respectively : 
 
 Acoei>tor sued liy the 
 drawer may plead - 
 
 No consideration, or an acconnnodatiou bill. 
 I'ischargu us surety. 
 Fraud, duress, forct; and fear. 
 Illegal consideration. 
 Patent right defence (s. 30, (4) (5). 
 Payment, or disch.irgc. 
 . Indi'lieiideiit agl-eement. 
 
 Acceptor sued liy the 
 Indorsee may plead - 
 
 U'ciiminoi 
 
 lati 
 
 hill, 
 
 or no coiihii 
 
 leration from 
 
 the indorsee, or any prior parties to him, foi 
 
 the hill. 
 Mischarge as surety, 
 ••'lauil and no considei:ition. 
 I''i;iiid ^as ahove) with notice. 
 Illegal considciation (as ahove) with notice. 
 Patent right defence, s. 30, (4) (')) 
 I (elective title, 8. 31 (4). 
 Independent agreement (with notice). 
 Title acijuired after hill overdue. 
 Payment, or discharge. 
 
Till-: iiii.i.s or I X( iiANcii; m v. 
 
 >i7 
 
 ('iipacili/ mnl A iilliiinl 11 nf l*ii,t'ii!t. 
 
 Sec. 22. 
 
 *Z*l. ('uimcitv to incur liiiliilitv us a iiartv Im a Mil • is "niMi.iivor 
 (•()-c.\trtisivc witli caiwu'ity to contract :'-' imp a.i njj 
 
 I'roviilrd, tlifit iiotliiiii,' in tlii; section shall cnal'lca cor- A.t.Morpor 
 
 ,.,.,.,, , iitii.ii«. 
 
 j)oriitiiin to iiiako itsclt lialilc as drawer, a(HM|)tor or 
 imlorscr of a l>ill, unless it is competent to it so to <|o m.cli r 
 tlie law for tlic time lieiuLj in force lelatinii; to sudi cor 
 [Mirat idii : '"^ 
 
 '1. Where a hill is (h'awn or iuilorsiij hv an infant, t "'"^ '•> 
 ininiii', or eorprjration liavini;' no capacity or power to "'''"■"''" 
 incur lialjility on a hill, the tlrawini: oi iinloisement entitles 
 the holder to receive ,>fi . inent ot' the liill, and to enforce it 
 ii^fainst any otlier party thereto.-"' 
 
 ' ( >iii:iiiully tlic right tiMlniw, liolil, iiidorsi- (ii'ii('<'ipt, a liill of rxclumgc 
 sctnis t(i li.ivf liifii idiiliiicd to iiiciili. lilts, iiiiil iiiliir jicisoiw ingamd in 
 tradi- j,'fiu'i'iilly , i>i' in tliu tratlic nl' liills. 'I'lic olil iiilf was toinnily pic 
 valciit on tlie coiitiiR'iit iif l'!iiiii|i(', fnuinli'd in .sonii-- nn'asiirc iipini tin- 
 [it'culiar rcnicilii'S wliii li cxistcil in sudi cases in favor of nni<liaiits, ami 
 
 'ave croilil to the iiills. Iliit this is m 
 
 totally 
 
 ilisriM'an 
 
 l.<l 
 
 .1 
 
 piisoas having gi'iiural caparity in otlur rfs[K'(-ts, wliftlnr ongiigeil iit 
 tiailc or not, arc oapahh' of iIoIiil; all or any of tliusc acts ; Slur;/ mi Hills. 
 ~. 71. Contnu'ts with jartics not having capacity, arc void as a liaKility 
 hut not as to the capacity to transfer the title to, and the ritiht 
 
 //, 
 
 ,li 
 
 f action on, the lull or note, as iirox ideil in subs 
 
 Tl 
 
 le coiitiai 
 
 tsof 
 
 una- 
 
 til 
 
 or <lriin 
 .1 1 
 
 kel 
 
 1 men, are vonla 
 
 hi. 
 
 and not voi 
 
 1. '•II 
 
 icre are lolir man 
 
 iicrs ol lunatics or //'</( riunjiD'i im iili'< : c) Miotorlool natural. |/'i lleuh 
 
 i> of g( 
 lie w 
 
 d and 
 
 sound iiicinorv and, hy the visitation of (lod, has lo.-,t it. 
 
 lo is sometimes 
 
 ciod ami sound niemory, and ."omctniics not. 
 
 7) He w ho is 
 
 Oll/i 
 
 'y 
 
 Ins os\ 11 ,11 
 
 t, ;is ;i drunkard : ' // 
 
 ,/. 
 
 \ (■ 
 
 H 
 
 It, I' 
 
 isoumliiess of niim 
 
 d ^^\ 
 
 it vacate a contract if it h 
 
 ikiiown to the other contracting party, and no advantage h.is heeii taki n 
 
 • t the lunatic, 'riiereforo «liert a li 
 
 itic 1 
 
 iiirch 
 
 lased certain .iiiiiiii; les nf 
 
 I socii'ty which at the time had no knowledg*' of his iinsf)iiiiiiiiess of mind, 
 the transaction lit-ing in the ordinaiy course of Iiunian atl'.iii>. .ind fair 
 unl Iiiiiiii jii/r Oil the ji.iri of the society, the transaction was snst.ained ; 
 
 Moliou V. ('ntiiniiir, 4 K\. 1' 
 
 See also . I /<o- /■ v. Jim,-/,-, :? M i; (Ir, -JCS, 
 
 III 
 
 Mr Do 
 
 ill, '.) Ex. .'iOO, 
 
 d /A 
 
 !> Out, I", it. ,ss. Ill an 
 
 action liy .in indorsee against ajnior indoiser. it is a good ])!ea that when 
 
 lie indor.-ed the hill, he was .so intoxicaui 
 
 iiid iimier 
 
 th 
 
 c iiiihn lice iif 
 
 i|Uor, and thcrehy so entirely deprivid of the use of his nason, as to he 
 
 liii^tiiil. r 
 
 .til-. 
 
ss 
 
 Till-: mi, I s OF KXciiANfii: aci-, 
 
 Sec. 22. 
 
 itilc t.i uiulcrst.'uul tlio nature or cflV'it of flic iiiilorsenuMit ; .ami th.it 
 
 tlU' 1 
 
 ill tl 
 
 {ilaiiitiir, 
 i;it st.itt' 
 
 it till' tilt' tiiiii.' of tlic iniliirscimiit, \v:is aware of liis bciiij.' 
 
 <;ih> 
 
 l;{ M. .\: \V. {•)•_'.•{ ; '.).liir. 140. 
 
 - I'lii-i may lie i-oii--t i ucil as I'Xiludiiii,' from lialiilitv on lulls or notes, all 
 jMrsons \\ lio liavfsoiiic inht-iciit, or. for'hc tinn- licin'.'. somr irrcnKnalilc 
 ini'.iji.icity to coiitiact. Sik'Ii are (1) ////ioi/-, or pirsons iimliT tin- age of 
 twenty one years. The full a!j;e of tweiityoni' years is eoin|>let<'(l on the 
 
 ■ Iiiil; I 
 
 le aniin el sar\' ot a person 
 
 Kiith 
 
 Salk. U. A 
 
 (lerson Korn on the llitll .\u;^list, l7-">, who dieil on the |.")th .\lij,'ust, 174ti, 
 
 to liave 
 
 1 1 
 
 lived to attain the aiie of twintv-oni' vears 
 
 Ti',l> 
 
 j(ower to thaw lulls or irivi 
 
 I', c. k;s. 
 
 I'i) Ciir/iuriitc'ii^ lia\ ini; no exin' 
 
 or iiniiliei 
 
 note 
 
 CA) .\l 
 
 ti II ' )if h,tt ■• 
 
 All 
 
 e'ontraets lie 
 
 t\\( 
 
 > th 
 eaeh otl 
 V. /A //, S 
 
 d 
 
 le sulijee'ts or eiti/eiis of ditl'eieiit nation.-- whiel 
 
 I are at w.ir witli 
 
 HT. liiade wnli'Ult the .SiiVi'ril_'li 
 
 I!, ."lis. Prior lo recent li 
 
 l.i 
 
 |i-.n-e 
 
 ire 111 teliv von 
 
 I'utt. 
 
 ;i-l,ition, nianied wonieli, liein 
 
 classed liy the eoniiuiin law. as |iersoiis under d 
 liility 1>> draw ill::. iiidiir>inu'. or aece[iting a luI 
 iiieaitaeitv to eoiitraet liv iiaBoii of hei' coverture, was not reinovi 
 
 4 
 
 falscl 
 
 y re[ii-escntin^ herself as lieiliL' a widow 
 
 isaoility. inciirriil no Im 
 
 I ; and a man led w oman': 
 
 d l.y he 
 
 /■. 3 Kx 
 
 ' '<lh lilt III V 
 
 /'r 
 
 tlilS. liv tl 
 
 omiiinn law a inirrie 
 
 d 
 
 woiiiin iiieiirreii no 
 
 Hal 
 
 illltV 
 
 liV 
 
 ■]itiiii,'. or indorsing,' a liill of cxc 
 ,is a sole trader within the Cit 
 
 naiiLrc or |)ioiin> 
 
 iiv note, 
 
 \ of 
 
 ondon. or ui 
 
 less 1 
 
 lei 
 
 husliand li.id alijuied the realm, or was deemed, in cnntemplation of law. 
 to lie ci\ illy dead. Iiy lieini; under a general seiitcni 
 liic or a teriii of years, or if he h,id reiioiuH'ed civil life t 
 fessiou, o 
 
 it iiiiiuisoniiicnt for 
 or a reJiLri'ius pro- 
 
 r was an alien resident aliroad. Nor did her iiidoiscnu'iit iiaus- 
 fer any title or |iio|iei ty in a liill or note payaole to hei . iinle-is .--he indorsed 
 
 it witli her hushand's I'onseii 
 
 t. 1 
 
 iut under the .Married Wollieli's l'r( 
 
 )ierty 
 
 Act. K. S. (>. 1SS7 
 
 1 :?•_>, sh 
 
 ic may lieeonie .i party to any 
 
 such 
 
 contracts; Imt tlie jii. lenient entered .■ii'ainst her. niiist lie against her 
 separate IHopeity. See the eases of [.(vrsim v. l.iiiilUtir, .'1 .\|ip. It. 77, 
 and III ' ut' r v. (ilicir. 10 Ap)i. It. at p. titil. " I>i'i.'al iiieapacitv" cannot 
 lie eoiiliiicd to total incapacity to do any l<'i,'al ;ict whatever, Imt must 
 coiiipielieiid Icl; d incapacity to do some ]iartieular act ; f-hoii^h there may 
 lie capacity to do s(inie le:;'al acts : ('ha rlti<ii w l./nh. \.. U. -M '. I'. ,S7-I. 
 "Capacity"' iuu>t he distinmiislied from '• ;iuthority. 
 
 power to contrai-t soastoliind oner 
 
 df. Aut 
 
 < 'ijiacitx' means 
 
 lority means power to eoii- 
 
 traet on lielialf of another, so as to hind him. • 'apaeity to coiitr.ict is tin 
 creation of law. .Authority teeontract i.sderi\ed from the act of the particf 
 
 tlieins(dvi 
 
 \V 
 
 lilt ot capacity is incurs 
 
 Want of aiithoritv niav li 
 
 ■iired liy ratiticatioii. ( 'apaeity is a iiuotioii of law. Authority is a (|uei 
 
 tlOll I 
 
 if fact : ('/mil, 
 
 /.'-//v, .■.4. If a 
 
 has caiiai/itx' to do aiiv act. 
 
 or is under an\' incaii.nit v to do ;inv act. )i\ the l:i 
 
 ■f th 
 
 iinicil, th 
 
 •t. when done there, will 1 
 
 )e ''ovei'eli 
 
 llivtl 
 
 )f h 
 
 le same law. where 
 
 e\ er its validity may come iiit<i cuiitestation in any other country : Sdiri/ 
 
 Cmifllcl of Li 
 
 l>4. 
 
I' i 
 
 TIIK lUI.I.S OK KXCM ANCK ACI. 
 
 Sf) 
 
 T 
 
 \" I'lpii'itii'-; mill jiowrr-; "f trailing' .Tid otln'f cn'iioiTitiiMH arc 
 
 Sec. 22. 
 
 liiiiitiil ill ili-LTi''!', iii'cordiiii; to tin- liiisiiuss or tniiotinii.-i of sik 
 
 li coi'i 
 
 )or;i- 
 
 tiiii-i ; aiiil till' iiu'isiin; of a coriKiriitioii's lialiililv 
 Ir i:t-; iiiMst ]iL' I'o-cxti'ii.sive witli its jxiwrr to ma 
 
 ill ri'-<|iiTt of it-i ('I'll 
 ;i' t lii'iii : //' ' '« iitrtif 
 
 H'liik. ■..'<! Can. [.. .1, Ii;{."i. As a i.'(iicral rule tin' imit lacts of cdriiorati.ms 
 
 linlSt ML' tllll 
 
 l.T til 
 
 II 
 
 ut coi-|ioratt' seal ; liiit the nilc ailiiiits of some eM't'ptioiis 
 1 tlif cases of eoiitraets wliere tlie charter, or tl-c iiiii|iose incidental to 
 
 II' ill ikiiiL: of liiils ami note.s ; 
 
 ilie liit-incss of the corporal ion, .'iiithori/i 
 
 th 
 
 tl 
 
 ili'l 111 tlie cjvses o 
 
 f contracts Hiieeiallv autliori/eil hv statute to ln' made 
 
 without tlie corporate seil : also in the I'ases of eoiitr acts wiiere the cor- 
 II ii'.itioii is esto|i])cil from ilis|)ntiiiL; its li iliilify. A imii iracljn;; jiartiier- 
 |i (.such lis solicitor^i may ratify a hill not hindinu on the pai tiurshii) ; 
 c < of a ciir|ioratinii. eaiiiiot he ratilied. ( 'orjiora- 
 
 >li 
 
 hilt a hill or note "///•• 
 ,i'ioiis .'ire mentioned in tlie statut" of .'? i^- 4 .\iiii 
 
 I iiidi 
 
 !l. n 
 
 ,'tiii 
 
 Iimiaissory notes, as [lersons w iio may make and indorse neL;o 
 
 itiahle iiott 
 
 iii\- sucli 
 
 \ means 
 
 I I.I.rsTUATIONS. 
 
 mention of a corjioration not li:. villi.' jiower to take notes, in tl 
 
 h 
 
 ly ol a note payalde to the corporation or li.aicr. 
 
 ■ire:- ol such note on a worse footiin: than if i he nan 
 
 not put the 
 
 I, id lieeli ilisel'tei 
 
 Hill 
 
 ii V. SiiiaH. k; r, ('. Q. 11. ;rt. 
 
 le ol a lictltloiis Jiajec 
 
 A depirtiii'e from the style of the corporation, will not avoid a noto 
 
 to it. if it snhstaiitialiv aiipears tli at tl 
 
 \ 
 
 del : /!, t „/.■../ ■/'■ 
 iiiipaiiy incorpoi 
 
 V. /!ni/:, I ( 'oM. ('rcnn. i H-j; 
 
 e particular corporation was 
 
 ated for tr.idi 
 
 It hv a contract made in t'liitlieraiicc of tl 
 
 ic and other piirposes iii.iy 
 
 hind 
 
 111. tlioiii,'h not under simI 
 
 //. ,!•/■ 
 
 le purpose ot Its iiicorpor;\- 
 
 A n-^l I'lllni II S/i'fiii .V'lriiiaf 1(1)1 
 
 K iV i;. Kill. 
 
 w 
 
 urc a coiiiii iiiv IS I 
 
 stahlislicd for Irailint.' 
 
 . Iiicli reipiii'cs that it slionl 1 liasc the p' 
 
 purposes, t he hllsilless of 
 
 )f issiiiiiLf hills of exchaiis'i? 
 
 iidinissory notes, as in iKUikiiiL: ami tr.idiiij.' eompaiiie^, such 
 
 I' iu\' has iiuiiiu'i 
 A K. sdl. 
 
 iv that 
 
 C/> 
 
 II ri"i V. I III III nn 
 
 il (lii< /.iij/it Ci,.. i; A. 
 
 o while the pou'er ,'ippe,irs to exist under the ai 
 
 ticl 
 
 es III as^oi 
 
 t:i 'iiu'h it coulil not lie inteirt 
 
 iatioii. 
 from the nature of the hiisiness of the 
 ts: /• 
 
 ii|iinv. siicli coniiiany may issue iienoti ililc iiisti iimeiits : I'tnirifui li 
 
 Tin 
 
 M 
 
 iirnii 1 11.111 I'll iifi 
 
 L. i;. -J ( h. h 
 
 A promissory note siirncd on hclialf of .i company hy its m.inaijer, hut 
 ^^illch w.is not necessary for the eonipaii\ "s t radiiiL'. and not authorized, 
 l-nol liimliiiu;- (111 tile coiiip.iny : /o < 'innii.i'j/iii m ,v I 
 
 !t) ( h. I». 
 
 here any application of the funds of a company would not he war 
 
 W 
 
 iMti'd hy its cliiirter, the t'oiirt canint declare tl 
 • funds liahle tliel'efor ; as silcll a 
 
 I'clarat ion w nu 
 tioii to a li.ihilily iilh-n riri.i of the eoiiip any 
 
 eoiii[iaiiy s property 
 
 Id 
 
 lie L.'l\ IIIlT JUi 
 '/( ,1 nil I n'li II 
 
 licial 
 l.if. 
 
 I 'ii.li, -M ( ■;ili. 
 
 !.. .1. 
 
 A railwav conipauy not having; hecii authoii/.id hy i,s charter, or the 
 iieral Railway Act of Is.'d, to draw hills or u'lve imti s, cannot so con- 
 c't : 7'ii/i/iiiiii v. /liijl'ii/ii dr., II. Cii., (i r. ( . ('. I'. 141. 
 
 A rail 
 
 iilway company incorjior.i 
 
 ted 1 
 
 V a siiecri 
 
 1 act of the Imp rial i'ar- 
 
 li iineiit coiitainin;; the usual clauses inseitcd in smh statutes, cannot 
 I pt hills of exchange; /intiiiiKii v. .U/7 Willi v /,'. r ,. [,. K, I (". P. 4'.H>. 
 
90 
 
 THIi HILLS OK KXCHANGI': ACT. 
 
 Sec. 22. A c()iii|iiii> y iiic'Drponiteil foi' rojiiiriiif,' .sti-iUiiliDats niiil other vcshpIs, ami 
 
 ■^^i ' liiiviiif.' ixiwoi to transact )lU^iIlt■.s.s ot a coiimioruial cliaiaotcT, may give 
 
 and take nlltt^■< in tlio cimr.se nf its ))Usiiic>s : K'ini]<hiii Murliu 11. Co. 
 
 V. ti'inni. '.i ['. ('. (). I>. .'{(is. Sue as tf< a salvjigc cdinimny, '/7(ow;>.so» v. 
 
 UnircMd Sii/ru,/,' (■<,., 1 Kx. <i!l4. 
 
 A iniiiiiiu r(iiM]i;uiy inciir|)(irati'il luidor ('. S. (,'. c. (i.'{, has nut as a nocca- 
 sary iiniileiit to its Imsincss thr right, to draw hills or give notes : (I'llhcrl 
 V. MrAiiiimni, 'is IJ. C. (). W. .'{^4. s. p. Dkk'titson v. Val/n/, 10 ii. & C 
 1-28. 
 
 Commissiom -s for a turin)ike road trust, apjiointed undei' a statute 
 liniitiiig thi.il- jiowers. tonka note from the tenant of thc^oad for the 
 amount of rent ; — Held, that tlie commissioners had no power, to give 
 time hy note foi' ]»aymer,t f)f rent already due; Irihiml v. (liuss, \\ IT. 
 C. t^). I J. 2-J(). 
 
 A ])romissory note signed on hehalf of a munieipal corporation in set- 
 tlement of a judgment against the municipality is void, no ))ower to givo 
 promissory notes heing miplie<l as necessary to the Imsiness of the cor- 
 poration ; and hesides the legislature having empowered ninniei]ia]ities to 
 raise money in a diU'ei'cnt way : Pamnil v. ('orji'irnfinii «/' llalifiix .'<iiiitli^ 
 17 L. ('. i;'. ;■(). 
 
 Where no denial of tiie capacity ,if a corporation to draw a hill or 
 make a note is plea(h'(l, the Court will presume tiiat the corporation is 
 capaliie in law of making iieg<jtiahlc [lapei' : Furrdlw Osliiiirn MiiniitUc- 
 
 luriiiii (•<,., !» u. ('. ('. v. -Jan. 
 
 Wliere .■' mum'eipal corporntion had allowed judgment to he olitained 
 f.r jxirfi . on a jiromissoiy note signed hy its mayor and seeretaiy-ti'easuri'r, 
 and then apjiealed on the giound that the note was void for want of 
 Huthoii/ation in the signeis, the apiieal was disnii.ssed on the ground that 
 the note hi ing apparently ngular. an<l the corporation not having olijceled 
 in the Court helow to the ^\ant of authority to make such note, could not 
 rais4' such defence in ajipeal : ('crjiiiidtinii of (Iriiiilhnm v. (.'onlurf, 10 
 Rev. leg. ISCi: s. c. 2 L.g. ISeWs.'l.'iO. 
 
 'J'I.e ^ecietary-tr( asnrer of a nuuiicijial corporation lias no jiower to 
 sign notes and acet pt diafts : Mai /in v. i'ur]ioiatiu)i vi' J/iill. !l llcv. Leg. 
 5I2; and 10 Kev. Leg. L'.TJ. 
 
 A negotialile proniissoiy n<ite made hy huihling society or other cor- 
 ])orate liody, not speciallx authoii/cd liy its ehaiter to make promissory 
 notes, is a promise held out to the ])uhlic that it will ])ay the amount to 
 the order of the ])er.-on named tluuin, ;ind will he licld good as an 
 iuknovh'dgnu nt of imhlitednt .■-s ; and in the ahseiice of a ])lea specially 
 denying th<' exis-tence of the delit or the authority of tiie otiieers to make 
 till' note, the iniloisee ot such note may recover the amonii*t from the 
 corpoiation. on the mere )iro(liietion of the note : Snri( /,■ cic ( 'nnstriic/iiiit dn 
 (\lli(ii/ii \. lunniiii Xiiliciiiiit , 'A Leg. News Hid, and 'lA L. C. .1. '_''_'(). 
 
 A note gi\en hy a liiMlding society as eollater.d security for .in advance 
 to the society, is not an ordiiiaiy negotialde iioti' : CooA// v. I>uiiiiiiiiin 
 Buihlhiij S<i<ii III, 1 Leg. News 4!)."). 
 
 Hy tile ]iiip\isions of .-everal statutes it was enacted, that " it sliall not 
 he lawful for any hody corporate to horiow, owe, or take up any money 
 111 their lulls or notes ji.ivalile on demand, oi' at any les.s time th;in six 
 
 moiitlis finm tlie liori'owiii'' thereof 
 
 M( 
 
 that a corporation not 
 
 estalilished lor tr:iding pui'i;o>es could not heeniiie acceptors of a hill pay- 
 
 ihh' at a le: 
 
 flu sh 
 
 llli 
 
 perioil than .-i\ nionths from the dtite : lirutujhtoii v. Mmi- 
 
 irnrL-s. \\ It. vV A. 1. 
 
TIIK JilLLS OF KXrilANGK ACT. 
 
 !)l 
 
 TiiiH'ctors of a CL-mftory oomii.-iiiy wiTf l>y tlicir act of incurjKir.itifiM See, 22. 
 
 «'iii|)()\vficil to iiiaku Loiitracts ami l)aruaiii.-i toucliiTij,' tin' uiuli rtakiii).', """■ ' 
 
 aiiii to <l(i and tiuiisurt all otiicr iiiattcis ami things ii(Hiisitt> to ]iv iloiif 
 
 .1 t 
 
 raiisartcil 
 
 for ti 
 
 U' ilircction ami ma 
 
 illlfllt o 
 
 f til 
 
 illii 
 
 i'()iii]iaiiy 
 
 -Held, tliat tli.'V had ii 
 
 ,s7../, V. //iiniirr, 14 M. & W. S.'U ; 4 Kx. 1. 
 Hi M. & W. •-'•)'_'. 
 
 ) iiowii' to ai'('cj)t oi' indoisi- 
 
 il.so / 
 
 >ioini V. 
 
 it th 
 l>ill»< 
 
 If a liill is drawn on liilialf of a company for any]inii)osu not witiiin 
 till' scojiL" of the llllsirJ^■^.s of the iimii'an}', an<l not siiili as tliu dini'tnis 
 have power by the dued of st'ttlfnicnt to liind the coni|)any in rcspiii 
 of, it doe.s not hind tho companv, and is not .•ivailaMo in the hands 
 
 '1. 
 of a /idiia fii/r lioldir : /><(//' 
 
 /•; 
 
 si, 5 C. 15. N. S (iOl. Sf, 
 
 also lirnini 
 
 k !■;. 7 4: 
 
 ill V. Ji'ol>,',ts, -.i 15 
 
 X. C. !)(i:{ ; anil llnfl v. \\'urr<//. \'l A. 
 
 
 Sec al.so, note 1 to s. I" 
 
 ani 
 
 1 tlic notes t( 
 
 .■\n iidant is in the 
 
 otiur wmds, oni' that 
 of contract : (ii)l(ini'f.^ 
 sidcr an infant is capa 
 V, Ihirsl, 1 '1'. 1!. in. 
 
 eye of the law iifhin". that is Njiecthlcss, or in 
 annot speak for liimself in tin- oidinaiv matter^ 
 
 ■)7 N. II. 14<>. 'II 
 
 does not eol 
 
 .le of 
 
 making an accurate com|iut;ition 
 
 Ti 
 
 ui infant ni:i 
 
 V !■ 
 
 iln.-cli t. 
 
 1' 
 
 for his 
 
 sarv meat, 
 
 d lik 
 
 ewi 
 
 rink, 
 for h 
 
 ipp 
 
 irel, I 
 
 iece.-:sai 
 
 y 1' 
 
 h othi I' iieeessariis 
 
 d tcai-hiiiu or instruction, wlurtliy he may protit 
 
 himself afterwards : 1 <'ii. Lin. 17-. This is lieiii^nitj- to infants, for if 
 they weie not allowed to l)ind themselves for necessaries, no person wiuihl 
 trust them, ill which case tliev woiihl he in worse eireumstames than 
 
 [icrsons o 
 
 f lull 
 
 ;5 lU 
 
 Ahrii/i/iiiirid ii'Xi. 
 
 Ii,i.rsri;.\rioN- 
 
 .\n infant is not liahle on a hill of exchaii 
 
 ite.l 1 
 
 i\ liiiii lor mce.s- 
 
 sancs : H i/liiiiiisi,)i v. MV/Z/s, | (':uii[). i)'ui. Hut see //».• 
 N(!. and the reporter's note to this case, in 1 (',ini|>. 5.").'?. 
 
 ,// 
 
 /. 
 
 ev, 
 
 .\n action cannot lie maintained aj.'aiiist 
 
 ii'ite ;!•< it is, hut it can he iiiaiiit:dneil for the necess 
 
 111 infant upon his pininissory 
 
 L's for w Inch such 
 
 note wa.s uiveii ; M'-< 'foiU'is v. //iw/-, 3 N. 11. WAX. s. p. Siriisi i/ v. 
 h'Udrii, 10 Johns. (X. V. ) .•{;<. 
 
 I'liiiili' 
 
 A 
 
 of a 
 
 n action is inaiiit.iiii.' 
 
 liy an indorsee for valiU' aLraiiist an iicce]itor 
 
 iccepted while mkIi acicptor « 
 
 an 1 
 
 nf.nit for a dcht cuiiti acted 
 
 lunii 
 
 infancy, tliouyh not for iiccessai ies : liilfitsi IliKiklini ( 
 
 I loll, >■!>/. 4 L. i;. Ir, l'_'4. 
 
 note execli 
 
 ted 1 
 
 )\ an infant as snr 
 
 ■tv f 
 
 iVi'lfih 
 
 inn. 4 ( 'oiui. .'(70. 
 
 or another, is Miid ; .Mii)'U-< v. 
 
 A note ''iveii hv an infant who is the father of a hastard cliih 
 
 -ttl 
 
 elllelit Wl 
 
 th tl 
 
 1 • nintliel 
 
 is \alid : '•' 
 
 iinln,,. s .M.l. till. 
 
 .\n inf.inl who has tiadeil winlc under :n'e, an 1 who 1 
 
 « liilc so tra- 
 
 ding, committed an act of li.niki iiptcy, imiy he adjudicated a haiikiupt 
 
 ifter he has arrived at full aj-'c 
 
 /" 
 
 '■'' l.iiiii'li 
 
 h. 
 
 Action Was hrouuht on a promissory note nweie liytiie di frnd.iiit, a 
 minor, and indmsed hy the i);iyees to the plaintitis hefnie niatmity. 
 I'efeiidaiit pleaded his minority ; hut, held, that a> the exiijencc oiovcd 
 
!»2 
 
 TIIK lill.l.S (»!■" i:X( llANCiK ACT. 
 
 Sec. 22- tli.it tlic ilifciidant was a tiad' r, ami tliat as tlie initc was ;:ivi'ii for fronds 
 
 ininhasi.i t'(j|' tlif use (i| his liiiMiicsifi as .sucli, In; was lial)le : <'ilij Hunk v. 
 
 l.itjhnr. -lu L. (', .1. i;il. 
 
 Knur 1 11(1111 i^;.(iry initi s wcri' inailc liy tlic ilcfinilaiit and oni' H.. ]iayal)Ie 
 ti> till' |ilaiiililf 1(11' till' [iiirili.isc (il till- |)laiiilill"s iiilcnsl in ('cit liii lioiiif- 
 sti'ad lands in tlic statiMif Mii lii<;aii, 11. Iniiii; tliu |)UiiliaM;r of tlu' lands, 
 and dclciidaiit >iL;iiing us smcty. Under tin; laws dt ^ln.•lli^'all only pcrsdiis 
 (iViT t\Mnl\ -iiiii' yciiis could locati' liomcstuad lands; and the |ilaintill was 
 under tnat ajic There was no re|)resentiitioii that tile iilaintill was ol' a^e, 
 and 11. olit, lined from the iilaintill'.-i snriendei- of his interetst in tlie land, 
 whereiiy he Was eiiiMed to have himself located in his stead, which ho 
 otherwise niijiht have had ililliciilty in doiiii;, and he got the same rights 
 which 111' wouM have got if the |il:iintiir had lieeii of full age :--lleld, that 
 it could Hot lie said that there was no cniisideration for the notes, iiorany 
 misrepresentation; and tiie iilaintul was therefore entitled to recover: 
 !■'/> Ir/i, r V. A'-'./i. s Ont. I!. I'.'l'. 
 
 .1., an inlaiit i^ave in M. a iironii>siiry note for the imrcjiase money of a 
 liuggy. indoised liy his father, who was of unsound mind, and tinahlc to 
 iiiiderstaud what he was doing, '{'he f.ither received no consideration, 
 and .\l, was lint .iware of Ids idiiditinii ; Hehl, that the father's estate 
 was not li.ililc ; AV ./((//(«.-•, il Out, I', i!, NS, 
 
 '' 'The title, hut not any coiitr.ict of lialiility on tin- hill, jiasses from the 
 liersnn iir ciiriinration h.i\ :iil; iio ia|iai'ity tn cm tract, to the holder, w itli all 
 rights to enforce it against tlic other partiis, and is eijuivalent to an indorse- 
 ment " without recourse. '" In ordinary eases a corijoration which has no 
 capacity to draw a liill or make a note, incurs no lialiility liy indorsing a 
 liill or note. 'J'hc iiuestion has heeii mooted whether corporations iiaving 
 no such c.ipacity, eau draw a chenuc on a hanU ; such che(|iies lii ing detined 
 by s. 7- to he hills of exchange drawn on a lianUer payahle on demand. 
 I'liit It was held in the case of a mining company (which comiianies have 
 no powci' to draw hills ; see note ,S, to s. •_'•_'!, th.it clici|Ues draw n hy tiie de 
 j'tidii directors of such a eonipauy,and paid hy a hank, discli.uge the hank 
 Ironi lialiility in re-.[iect of the moneys of such coui]iaiiy : Md/m/iif v, Lit^l 
 Jlvt;//"!-'/ Milling Cti., L. U, 7 II, L. ,S(i!l. '{'he sign.iture for a corporation 
 is a procuration signature, 
 
 iLi.isriivnoNs. 
 
 A imti' made payahle to the ti'casuier of, and indorsed hy him to, a 
 muuieip.il coipor.ition, to secure a li,daiicc due the eurpoiatiou on a jtast 
 tiaii>aetioii. is lint Void under tlii' Miinici ,il Acts : ( 'nr/xirdlinii o/" Jiilk- 
 rilh V. /''/m//, .-. r. I'. I,. .1. .\. s. 7:i. 
 
 Jn an action against an acceptor hy an indoisee, it is no defence that the 
 drawers who iiad drawn tlie hill |>ayahle to theinsehes, and indorsed it, 
 were infants when it was drawn ; '/'ni/Zur \ Cruhr, 4 Ks|), 1S7, 
 
 All inilorseincnt hy an infant, thou:.di he is not capahle of making a new 
 contract, transfers tlie jiropcrty in the hill ; his indorsement heiiii: ']• <''>ii- 
 ditioii of the contract : /.'hi/ "v. Twktr, 8 li. & S. ,S.S3 ; .s. p. Ai'jhtiii'jalt 
 V. IVilliiiiijIiin, IT) Mass. 27-. 
 
 Signnturo *>;{ \(, licisoil i-; lijlMi' il^ dl'.'lWCl', illi)i il'SiT, or ilCCOptol" 
 
 ('8Cfllli.ll to 1 1 1 11 • 1 1 1 
 
 liiii.iiity. „f .^ iijii \vi„, iias not siiiiit'd it its siicli : ' Froviildl that — 
 
:^ii 
 
 THK i!ll,F-S OF KXClIANCiH ACT, 
 
 !j:} 
 
 i I 
 
 (a) Wlicrc a iki.sou si^iis a Inll in a trade or as-^unit'd Sec 23 
 naiiH'. lie is liaMi- tlicrcoii as it* lie hail si'^iu'd it in his own Tr».ir n.ime 
 
 ■^ liiliils. 
 
 uaMH.' : - l"'!';^'>".rl^ 
 
 Incl.Act,»2s. 
 
 (h) IMic siifnatnro ot'tln' name (if a firm is (M|nivah'nt to linu- name 
 
 1 * 11 • • i' 1 I' 1 1 ''H"-i''' 
 
 tlu' siLi;natnrt' hy tin' ji.'rsdii so si^iiuil;' ot the nanif> ot all 
 persons liahK.' as partners in tliat tirni. •'* 
 
 ' \'>y tlie rules of tlio l;uv-niori'ii;uit. no imo is lial.Iu on ;i liill unless 
 lio is a party to it in one of the cliaraotera above iiaiiieil. l!iit there has 
 lii'cii a euiitlict of decisions as to liow far the signature of a strani^cr to a 
 liill or note, creates a liability or not. In some cases it has lieeu held that 
 it is not alisolutely essential to the li iliility of the party siiininL'. tliat the 
 claim of liability on. or title to, the bill should have come tlndui.'h him ; 
 nor that he shouhl liave siyned his name on the liack ot tiie liill where an 
 indorser usually sijins. l!ut in otliei' cases sucii a signature wlnn placed 
 aliove the indorscmint of the payee, has been licld to t'reate no lialiility ; 
 w idle in other cases, such a signature has been Ik Id to m ike tlic party li.ilile 
 as m.dicr. In lioth classics of cases the siirnattu'c iiad been made by a party 
 wlio iiad ai^rccd to liccome a surety for the payment of liic i)ill ^r note. 
 This contliet of di'i'isions, and the alisointi' terms oi' this si^ction, \\oui(l 
 seem to be moderati'd liy s. ')ii. In ac'tions on bills or notes, it is not 
 adndssible to i;ivc e\ iilencc that the liill or note sued u]ion, is the contract 
 or liability of an undisclosed piiiicipal : '2 Taijlor an L'riilcii'' , 'Xi',i. See 
 notes to ss. (J, 'M an<l .")l). 
 
 ri.l.rsTKArioNS. 
 
 A note was drawn by L. & Iv jiayablc to I'., and was indorsed by O,, 
 and tlien by I', who signed his name Imutliu ise on the iiacU of liie note, 
 I', signed it cross-wise ; Held, that (i. by indorsiiiL.' the note aiid j,d\ing 
 it to I'., allowed hun to tl.'Uister it to wiiom he ph ased ; ;ind that he was 
 liable as an indorser: M( Lnin v. Gur/nir. '2 Ituss. \' (!el. \[12. 
 
 A. made his note payable to 15. or bearer; before deli\ eiy to 11, T>. 
 indorsed it ; HeM, that D., the indorser. was liable to 15. as holder of 
 the Uiite : \'iUiliiiC( n v. I'd/idii-^ri,, ~ I'. ( '. (^1, 1!. 17*). 
 
 Wliere A. nuiile a noti- jiayable to 15. o;- ordi r. :\iid ' '. «rote his nnnw 
 oh li[f li.ick, witiiout I5."s iirst indorsement : llehl. that ( '. enuhl not be 
 ( nusiih i\(l as a new mak"r ; and therefoie not liable : Sh > r \. .Idatn--, i\ 
 r. ( . (). S. tiO. See U i/rnrts v. TlntiiKj, 7 U. < '. <,>. 15. 'M-2. 
 
 A., an nidorser wiio liccame ;i p.arty to a note for tlie aci'nmmoilatioii of 
 thi' m dicr, on eonilition that i'>. should also become an indorser. but 15. 
 h.ivim; refused ;- - Meld, that A. was not li.dile. even at the suit of a iioldiT 
 lor value : Oiitariu Hunk v. (lihtion, 4 .Man. 1!. 440. 
 
 \\ . uiadi' a note not neuoti.iblc, for money lent to \\".. ami .\. atid B. 
 -i^'oed on the back <d' the Mote as surt>ties ; one ot them had paiil interest 
 u It, iiid both promised to ]iay the note, when s)ioken to; H«ld, 
 
 |; 1 I 
 
 tU.it tin 
 
 y wore not lidik' upon the note 
 
 Sk>lh,ck V. /' 
 
 14 U. C. 
 
 ( ' 15. 4;iO. See als 
 
 /. 
 
 'Kl'y. (lihlis, 4 C. & P. 4()(i 
 
94 
 
 THK IJIIJ.S OK KXCIIANGE ACT. 
 
 Sec 23- W'licic .'ifterii note is t'oiiiplftiil, it is sigiicil liy ii thinl party, or is so 
 
 ''^ ' ' siiiiiiil l>y liiiii iiftor iniitiirity, without any tjoiisiiUTiitioii or ngreciiit^nt to 
 
 ixtciid tiiiR', siicii third pursoa is not lial>lu : Jiyan v. McKtrral, 15 Out. 
 
 I!. 4(i(t. 
 
 When a ninn's naiiu; is written on the back of a hill or note without 
 the intention to imlorsi'. and so to niaUo himself lialile for it, he is not so 
 liahle. 'riiougli he put iiis iiauK^ on the hack, that is a writinj,', hut it is 
 not an indorsenient in thi- legal sense of t!ie term. 'I'jie writing must 
 always Ixt done animo imlnri'iiii/i, in order to make it etl'cutual to hind 
 the indorser : Kmir v. Jimri/, (i ilnr. N. S. rj4S. 
 
 ^Vhere A. as surety indorsed a note in Mank, payalile to V>., hut not 
 negotiahle: Held, not liahle as inakei-: Mr.]f,(ntii/ v. Talhol, .") V. (,'. C. I', 
 l.w. 
 
 A. drew a hill on 1!. re(iuiring ('. to he a surety, 'i'he 1)ill was acei'pted 
 l>y IJ. ami also hy ('. , (,'ai'li writiuL; his name on it : Ifeld, ('. not lial)le as 
 ai'ct:ptor : Jnflitoii v. //m/ii/ti, '2 I'ami). 447. " I know of no eustom or 
 usage of nierehants according to whit.'h if a hill is drawn upon one man, it 
 may Ix' aece])ted hy two. A hill may be accepted by the drawee, or 
 failing him, l)y some one for the honor of the drawer :" J'er Lord ICllen- 
 borough, ('. .1. , /''/(/. 
 
 A party had indoised the bill ;is surety, but had signed his name after 
 that ol the jiayee ; — Hehl, ihat the payi'e could not recover against him, 
 as he w'as a party to the note suliseijueut to the paj'ee himself: Join a v. 
 A^hrriifl, (i U. V. (). S. l.U. 
 
 V. signed a non negotiable note and H., whft agreed to be his surety 
 wrote across the liack "a joint note, or better than a joint note," anil 
 signed it ; — Hehl, that H. was liable a.s maker: /'i'fo v. Ilnll, '1 Tugs. Hi. 
 I'mr. ;{4. 
 
 Where A., not a ]»ayee, ]iuts his name on the back of a promissory note 
 payable to ii. or order, befiu'e it is delivered to the payee to taki^ etiect 
 as a promissory note, he is liable as maker : 1'k II v. MaJUl, 4 i'ugs. Ik, 
 Bur. I'il. 
 
 Where A. 15. &. S. .M. assigned their stock in trade to trustees to carry- 
 it on in the name of i'^. M,, and S. M. was employed by the trustees as 
 tlieir agent, and indorsed l)ills wiacli he discounted and ap])lied the jiro- 
 ceeds, partly to the business and partly for his ])rivate pui'poses ;— Held, 
 that the signature of S. M. to tiie hills was pr'tiiKt j'm-ii', the signature of 
 the trustees: Fiir.e v. Sinvirood, '_' Q. B. .3SS ; .lur. 554. 
 
 In an action (Ui a note ])ayable to J. W. and indorsed by J. H. to the 
 plaintill', it a])peared that there were two persons of tlu; same name, father 
 and son, and there was no evidence to show to which of tliem tlu' note 
 had been given, but it a])peareil that the indorsement was in the hand- 
 writing of the son ; -Held, that althmigh primtt I'n.c'ii' the presumption 
 would be that the father was meant, that presumption was rebutted )>y 
 the son's indorsement : Stt/jl/uiij v. Siiircr, S (J. B. ,S'27. 
 
 - Trade names, as well as trade marks are in a certain sense property ; 
 and where the name of a manufacturer is useil to designate goods of his 
 make, it will be protected in equity : Aiuxworth v. Wnhnshii, L. R. 1 Kx. 
 518. But where the mime is merely descriptive of the nature of the ;)usi- 
 ness and the locality, .Mid is not so inseparablj' connected with the estal)- 
 lishment that a secondary meaning may be attributable to it, will m)t he 
 
 
1 ' 1 ; 
 
 1 
 
 Tin: lUI.LS OF i;X(.'||AN(!K ACT. 
 
 95 
 
 lirotfctfil : h'ljliiiif.iii V. Itiijli', lis Out. K. ',\S~. 'I'ln- jissiiiiliitiini of ,i 
 niuiie heloMj^ing to aiKitlu'f l)y ;i stnuiycr, is not the siil)ject of an artion, 
 ■i-i tliere is no I'iglit of propuity in a jjci'.son to tlic iisi; of a )>ai'tiiMilar 
 iiamu, except in connection witii a trade or lui-iincss : l)ii /{mi/'ii/ v. 
 Ih( li'iiihiy, \^. K. 'J 1'. (". A'M). Assnmini,' ami using a ti'titions name, 
 tliongii for the purposes of concealment and fraud, will not amount to 
 forgery : A*'.'- v. llodtDii, R. k It. •_'(;(). 
 
 Ii.i.rsrKATnis.s. 
 
 Where ffuir pei'sons dcscrihed in a oontr.nt not l>y tiieir individual 
 names liut as a collective l)ody, and not incorporated, signed « itii their 
 owTi names, thev were held to be individually liahle; ('ulh ii y. Xi'L' rson, 
 10 r. (". C. 1'. .")4!». 
 
 One tl. emplojed 15. as man.-iger of his business, to carry it on for 
 liim in the name of IJ. it ("o. Tlie drawing and acce])ting liills weie 
 incidental to the carrying on of such business ; hut it was stipulated 
 iietweeii them tiiat 15. should not draw or accept bills. H. having accej)- 
 ted a bill in the name of 15. & Co. ; — Held, that .). wa.s liable on the bill 
 in the bands of an indorsee who took it without any knowlcdL^f of the 
 rvlations of .1. it 15. or the bnsini'ss : /v//// ;/«(/,< v. A'l/.v/c//, L. I!. 1 <). 15.07. 
 
 ■The signature of a tirm is deemed to be the sigii.iture of all persons 
 u iio are partners in the firm, whether working, dormant, or si'cret, or 
 uiio, by holding themselves out as partners, are lialile as such to thiril 
 parties : I'aoli'i/ v. Drirer, o Ch. |). 47)S. 
 
 Ilu'-trations. 
 
 A note of a lirm carrying on business as bankers, was signed by one of 
 them in the following form; "1 promise to pay the bearer on demand 
 live pounds; value received. For .1. C, H. M., d. 1'., and T. S., 
 H, M.;" — liidd, that the holder of this note had not a sei>;ii-,ite rii;ht of 
 action against the party .so signing, but that the tirm was lialile : h'.r /xiiii; 
 AV/././..V, 14.M. & \V. 4(i0; s. p. LordC/alway v. M.i/fh-x; 10 Kast •J()4. 
 
 A. who was a cheesemonger at Woolwich, carried on at Wool«i(di the 
 liMsiery trade in partnership with ("., but in his own name. C. accepted 
 in the name of A. a bill drawn for goods supidii'd to the partnership, and 
 which was addressed to .V. at Woolwich : —Held, tiiat the ;ieci'[)t:im.'(,' 
 was binding on A. although the bill was not addressed to the place where 
 till' ])artnei's!iiii business was carried (ui : Slip.'(''ii-i v. R'l/nold-:, 5 II. it N. 
 .ii:i : 2 L. T. N. S. 222. 
 
 In the absence of express agreement to that eU'ect, a creditor taking 
 [iic n')te of one partner for a debt of the partnership, and suiul.' thereon, 
 ';ut faiiiu;; to recover the amount of the noti'.is not prcclmlcd from after- 
 
 Sec 23. 
 
 wards claiming the amount of the note against tin. 
 V. A nil Km, 20 Grant 579. 
 
 partnershii) : ('arrallivrx 
 
 If the name of a pirtnershij) lirni Ijc merely the name of an individual 
 ji u'tner, )>roof that he signed such name to a bill of exch inm^ is not •nough 
 to make the tirm liable on the bill. 'I'o establish the liability, the holder 
 of the bill must further prove th.it the signature was put to it for the 
 purposes of the firm : Vorkihire Binikiii'j <'o. v. /imfson, 4 (,'. P. I>. "Job 
 
 On the dissolution of a tirm it was agreed tiiat an agent should be 
 ■ip[)iiinted to realize the assets, .md that the business should tluMcifter 
 be carried on by one of the retiring partners Hills on the old tirm were 
 
 i^ 
 
96 
 
 Tilt: HILLS OF LXCIIANOK ACT. 
 
 Sec. 23. acc(^](t('il l>y tlic iiyciit in 'li.s nwii iriiiu-, iiinl tliat of tln' ])jiitiiiT ; ililil, 
 
 tliat tlic aj^'ciil Ii.'k! Ill) awtiioiity f*f> to acci pt su 
 
 Was nut lial> 
 
 On 
 
 ilii) t,i 
 
 (hi II V. ( ■ 
 (Ui s from ;i nicni 
 
 rk II 
 
 I !»(.». I!. I). 'J'.'.f. 
 
 mil tliL' iiaiUur 
 
 LlT of .'i trailini' til ni in sati-ifacti 
 
 .f li 
 
 ic icinriirixii'i' o 
 
 f 
 
 Hcjiaiatc ilclit, a iifL;i'tial)lc srciirily in tlic naiiif of tlif |(artnri>lii]>, is 
 honiicl to sliiiw that it was accoiitcd or imloiscil « itli the in 
 tilt' otJii'f paitics: /.I ri riini v. t^iiii'-. lU ('. |{. N. S. 'I'S. 
 
 In an artioii liy iniloiscc .•lyainst iiu'inlMi's of a liiiii on a liil 
 the nanif ol the lirni, nimn its liriiii; (dOM-il that the ai'ii'])ta 
 
 it.'il 
 
 lll'l' w.is 
 
 ono of the iiail mis in liaml of tiio |)aitiii'isiii|i, .nnl rontiary to the |i;iit- 
 t;rshi|) articles, the onus is east on the holilcr of the hill, of shewilii,' tiiat 
 
 h 
 
 ;a\'e value 
 
 /A. 
 
 '/;/ V, 
 
 S/,; 
 
 ISC, II. N. 
 
 A hill ilrawii hy ,i [laitinr iii the name of liis liriii. iiiiIoimiI by him 
 
 S. 4-_'(i 
 
 f 
 
 \< 
 
 ilso III ^[ir\t name to liiinsi 
 
 If. 
 
 il iliscoiintcil at his |iri\,ite liaiikcis lor h 
 
 own account, ciniiot he proveil airainst the joint i-state of the 
 lie iiail authority fnnii his ])aitni rs to act as he iliil. with l'< 
 
 :aiil to th 
 
 ill. 
 
 or iiiilc<s tlie |iiiieecils have actually heeii apiilicil to pii tiiershiii pur- 
 ])oses, ainl the hi'iii is imlehted to his private aeconnl >iillicient to cover 
 the . 1111011111 of the hill: A'.i.' /tititi /)itrliii'iloii and Siorklvn /ianl.iiuj Co. , 
 
 1-2 L. r. .\. s. :i7L>. 
 
 An au'cnt of a huiU ilisoimnteil a note for J. X.. tiie maker, payalile to 
 
 anil il 
 
 I'll lpy a liriu in the paunershi 
 
 V one o 
 
 t tlie Iiartneo 
 
 the ai,'cnt knowiiiL,' that it was so iniloiseil as secnrity for. I. \. 
 
 il that 
 
 it hail no coiiiiietioii \\ ith the partiierslii| 
 
 > business 
 
 llehl. that th- other 
 
 partnei 
 
 s Were not h ilile: I'lihntl liiutk v. yur/li' 
 
 i'/, 7 Out. 1! 
 
 {M). 
 
 If the law protects an iiuioi i iit partner in sudi ;i ea>e as the ahov^. it 
 is equalls strict in holilini,' the innocent |p,irtiieis li.ililc for the framl ot 
 their eo-partner in purtni'iship le .ttcis : /'(/■ Wilson, .1.. Iliid. 
 
 In an action hy a liana /Idf holder .against the indoisiis of a note, it is 
 no defence that the note was indorsed hy one of the dekndants (a tinii) 
 frandiileiilly. w il hoiit the ;mthoi ity of the other defendant.'-, and foi' mat- 
 ters nut relating to the hiisiness of the i>artnersliip ; McLtud v. (annd 
 
 II, 
 
 1 M, 
 
 N. i;. oyj 
 
 One of two attorneys in |)artiiersliip has no iniplieil authority to liiiid 
 his ))artner hy a note in the name of the tirni, thoiiLih L'iveii for their 
 
 doht, as for 
 
 •v handed to the linn hy a client to lie laid out on nnat 
 
 gage : //-.//-//v. Iluhdirhhj, , 3 l>>. I'.. .'{Ki : ti .lur. K<\. 
 
 The iitijilied authority of otic partner to hind aiinther hy a note or hil 
 is conliiUMl to partnerships for the }iurpose of traih' : //'('(/. 
 
 Two ])aitners carried on luisiiiess as hrokers, under an agreement that 
 they Were to get orders on eomiriissioii and divide the expi'iise- 
 them travelled for order> 
 
 On 
 
 liavini' ineurreil expenses, i 
 
 Irew 
 
 ill fii 
 
 the first time in the partnership name, to raise funds to exei nte an order. 
 The other jiartiier accepted it, imt, hefore it was issued, cnniitermandcd 
 the authority to negotiate it, and it was negotiated without Ins knowl- 
 edge ; — Held, that the mere partnership did not render him liahle upon 
 it : Yates v. Daltun, 28 L. J. Kx. O'.t. 
 
 A partner has no implied authority hy law to hind his eoiiartners by 
 
 lis aect 
 
 pttui 
 
 >f a h 
 
 •pt by 
 
 partnership; tlieiefore where a li 
 
 an .'iceeptanee 
 
 in the true style of the 
 
 insisted of .1. \\. and C. H., the 
 
 partnership name being,]. U. only, and (". II. accciitcd a bill in the naiiifc 
 of J. h. it Co. ; — Heki, that J. B. was not hound thereby : Kiik v. Blur- 
 
 toil, 9 M. & W. 284. 
 
•IIIK mi.l.S (IK KXCIIANCiK A* r. 
 
 A I'ill iliiiwii n|"iii ,1 III III as M. (i^ M((,>. , tlnir iciitm r liiji iiiinc htiii',' 
 M. Mel,". iV (ci., wa.t aici'iitcd in the Ininn r iiiini' ; llrM tli.it tlir lii rii 
 ..1 M. .M((.). ,t Co. wiio not lialilf : (Jii<l„r /,',(,./, v. MiHn; 'A Man. \[. 17. 
 
 A liill u.is iiidiii-iscd liy tlif iiaVf.- to aiiotlu r, who iii.loisc.l it. and 
 .iddtii to tlicii' indoiMiiHnt the loilow ini'. " I ii nicd S. I'. \('o." '.lie 
 I'ili V* as MiliM'i|ncii',iy iiidorsid in liiank to a liank. wIkp iiimoimiI it in 
 I'laiik lo t III' paini ill's, mIio indoist d it sjiirially, " I'ay Mcssis. 'rcrncy 
 A j'ailiy. or ordtr" wiio indor.siil it in til ink liy writihi,' a dilltrrnt nana-, 
 ■• Tlioiii i> !'( niry A: I'arliy." 'llic liill win n dnc was duly ['ii >intfd at 
 S. iV (ii.. London, lianki IS, and w.is didioiion d. ( hi tin' s inu' day it 
 was luTscnti'd at S. 1'. .V ( d."s who ri't'iisid to \>.\y it, .-.i.lily oii tin' j^inunil 
 ■ 'I' till' irii';;ii!aiity ot I't nify it l-'arloy's indnisiinint. I'ln! custoin of 
 London lriiiUt'i« was adiiiitti'd to liu to fufiisi! all Inll.s. I'Vcii tlnir own 
 aci'iptini't's, w In ri' t nil'.' IS a letter \\ i<iiil; in any indorsi im lit. 'I'lie liill 
 was then went to I'liin y ,V: I'ailiv, uliolned in Inlind, to itetiiy tliu 
 ini^t die. and tin- liill. witli the pioper indoisciiient on it. w as then sent 
 lip to Lninlon, and a'jain p't'selit'd lo S. I'. .V ( 'o. "s W ho refused to pay it 
 as liein;.' out of time; Iji 1 1. that the liink was liaMe on the hill: 
 l.riiii'iiif V. \y>t-i,n. •_'('. vV .\L .'iMI; .") 'I'yr. 11.'). 
 
 A t'oiniei' piitner in a linn \vliieh h id dis-olved. induised iiiad\ t rteiitly 
 III the linn's name, ;i tmle p.iyaliU' to tin' linn and made to it In foie tin; 
 ilisMiluii n : Held, that In wa^ peisoiidly li.iLle : f.innli' rninii't Hditk v, 
 I'nill, :,~ Me. ."i(i;{. See al>o 'J'iit',i v. I,';/, in. I S|.eal-s |S. ('. ) 'JKi;!. 
 
 .\ |iartiier has no impliid .inthoiity to hind his linn l.y issniie.^' aiee]it- 
 iiiees of the linn in lilank : llo'inrlli v. /.(il/iniii, ."> <,'. l'>. I'. (i4;i. 
 
 *i4. Siiliji'ct tn the )i|(>vi->iu|is iif tliis Act,' wln'iT' Jl 
 -i .;ii;it lire MM a liill i~^ fi )|•^l•(l - or plnci'il tlirrcmi witlmiit 
 ihf aii( hnrit \' ol" tin' jirr^oii wIium- sjoiiat uir it ]iMi|i"rl> to 
 lir, till' t'liiovil Of iiiiaiitlioiizi'd si^uat iiri""* is wIkiIIv iniipcru- 
 tivc, aiiil no ri^jit to rrtain tlic liill <ir to i^ivf ii ili--iliaiL,n,' 
 ilicicror or to t'liroici- jiayiiii'iiL tlidcot" ao'aiiisl any pai'ty 
 tin I'rto t-an l)r ari[niixil tliidii'^li or iindi'i' tliat Nionatnro. 
 unlos till' party aoainst wlioin it i^ soiioiit to ri-taiii or 
 I'lit'orcr [layincnt of the liill is jirirlnnl I'roni M'ttiiii;' up tlio 
 l'iiroii\ oi' Wi'iit ol antliuritv : ' 
 
 07 
 Sec 23. 
 
 K"i'ui-il "I' 
 
 IIH Hit )|. .?■'/. 
 clI -i::li:lUlll' 
 
 ii' |..ialivi'. 
 Inn . \rt,^.'J4 
 111. I. Alt, s. 41 
 
 l'iilos« pnrty 
 ii c.-tiiiiin'il. 
 
 l'io\iili'il, that iiotliiiiij;' in tliis sect ion sl.all atli'ct tlie I'l 
 I alitii-atioii of an iniautliori/.rd sioiiatnii' not ainonntinn" to 
 a loio'i'iy : •"' 
 
 Ami iiidvidt'd also, that if a rluMine, iiavahlc to fird<r, ivvniput 
 
 , . ,11 i"i '■■■' 
 
 i"; paid liy the drawee upon a foroed indorsenient (tut of oheij 
 
 ilie fund.s of the diawei.oris so paid find charged to his 
 
 aceonnt, the drawer shall liave no riolit of aetion aiiain.st 
 
 the drawee for the recovery back of the aniount so paid, 
 
 13 
 
 l(ii-fd 
 
!>fS 
 
 Tin: I'.ii.Ls oi' h.\('IIAN(;k act. 
 
 Sec 24- or no dclfiiPt' to any clHim iniule hy tlic druwoo for tlic^ 
 nnioiiiit so paiil, ns tlic casr may lir, unless lie ojivrs not,ict^ 
 in wiitin;^ of such t'or;^'fry to tin; drawci' witliin one 
 yt'fir after lu lias ac'(|uinil notice of such for^^ery ; an<l in 
 casr of faihne hy the iliawiT tt» irivo stich notice within 
 the saiil period, such chet|Uf shall he held to have heen 
 pjiid in due course as ri-speets every other party thereto or 
 iuiukmI therein, who li.;s not ]»reviously instituted proceed- 
 ings for the })roteetion of his riglits. •> 
 
 ' 'Vhr ]ii()visi(iiis iif tlif Act rt'liiivd tn ari' cviclcntly tlinsc in s 'J!l siilm. '_', 
 anil .'iCt (I), riiis cl.insf iiiiikfsy'";;/"/ sii^iiatiins, anil iiiniiillniii:' il .si^nii- 
 tiiiis, "wiiully iiiopri'ativi;" ti> cniivfy any titlu to tlii' liill; anil tlnrffin'i! 
 HiK'li signatures iipiTatf as a Mm'k in tlii' rliain nt titlu tn siirli liill, unless 
 the party whose si;,'iiatiire is l'iir;^i'il or- unauthorizeil, i.s estoitpcil froni ileny- 
 ini' iiis lialiiiit\'. See fiu'tlier, the notes to ss. ,")1 anil ■">."). 
 
 -' " l''i>i'gtMl signature on a hill." This sei'tion only ileals with the 
 forgery of a ■■<i'jiiittari on a hill, which in ed'eet it Mots out of tlii^ hill, liy 
 (leelariiig it to lie "wholly inoperative," .so far as it afl'eets any valiility in,or 
 title t", the liill. Seetion (>;{ ileals «ith other classes of forgeries, "mate- 
 rial alterations," umlcr wlneh such hills are ileelareil to he voiil, except 
 a» to II /inr/ici /IS criniinis, or only to the extent of the material alter.i- 
 tion, when in the liauils of a " hoMer in due course." See the notes to 
 that section, ami also notes to ss. 5 ainl 7 as to the signature in the name of 
 " a tictitioiis or non-existing jierson." The following aits with refereiice 
 to liills anil noti's have heen hehl to he forgery, it iloiie \Nith frauilu 
 lent intent : Writing the name ot another «itiiout authority : It'-c v. 
 ifiiiin, 1 Loach C. ('. .")7 : lii'jiiiu. v. Tub, 17 U. C. 'J. i«. 'l'M\ ; Ili'jiiKt v. 
 /ii'iiril, S t". & 1*. I 13. W'l-iting the name of a fictitious person ; Ji'i x. v. 
 Marsha//, li. it I!. 75; //r.r v. lial/aml, 1 Leacli ( ', ( '. K\. Writing the 
 name of a tii'titious firm : !!■ 'inut v. /i'o;/< /•>■, S ( '. it I'. ti'J'.t. Imlorsing in 
 the name of one of several payees, althougii the hill was not negotiahie 
 without the signatures of all : Hiijiiin v. Winti rliuttoiii, '1 V. &, K. .'57. 
 Assuming a false name for the purposi of pecuniary frauil, Iti-x v. 
 I'caraiL', U. & li. '2~S. Putting a false aililress to tlic name of the. accep- 
 tor: llcijum V. E/ij>-<, 4 V. it F. 81. Writing a promissory note on a piece 
 of j)aper which has on it tiic genuine signature of another : Hex v, llalis, 
 17 How. St, Tr. Kil, 20!), 221*. Writing one's own name with the inten- 
 tion that it should pass for another's signature : MkhI v. Yoiiikj, 4 T. 1!. 
 2S. Filling up a hlank acceptance with a larger sum than is authorized. 
 lii'X V. Jluiit, 7 C. & I', GJ2 ; or a hlank chci[ue, lii'ijhia v. Wi/son, 2 C'ox 
 ('. C. 426. Altering a hill from a lower to a higher sum : ll< x v. Temjiiv, 
 \\. it Ii. WW. Altering the period of payment : AVx v. Atlcinson, 7 t^'. * 
 
TIIK l'.II,[,S MK r.XrllANdK ACT. 
 
 !MJ 
 
 I'. ()(>!(, A f(iri,'f(l p.ipir puriiortiiii,' to lie n haul; in'tf i-t ii pioiiiissory SeC- 24- 
 
 note, 
 
 mil ciiiia 
 
 11. V 
 
 even 1 
 
 f tiiire lie till HiU'li liiiiik as thai iiaiiiiil 
 
 y,'.;////</ V. M,l<:li,ililhl, VI {.'. ('. (,>. Ii. nj'j. 
 
 lll.l SIKAI lu.NS. 
 
 'I'lic linldcr iif a piiiiiiis-iory iiiitt' wIidsc tilU- tlicrctd was ilcrivnl fiMiii 
 an iiiilor.sfiiii'iit \\ liiili pnivcil to lif a t()i';;frv, altliciiiLili lie liail artid 
 
 III t'litirt' 
 
 i.l taitl 
 
 caiiiicit itoovir tln! aiiicniiit of tlif iintf tin 
 
 any 
 
 .fill 
 
 jjicviiiiis iriilorjjirs : Liiriii v. J'Jriintiin I, 'J |^, ('. I,. ,1. ll.'i. 
 
 Wlicii till- iiri^iiial iiiilorst'iiiciit of tlic payt'i''s name on a liill ol' fx- 
 < lianu'i' was writlrn without authority, anil thfi-cFoiu a for;,'(':y, the sulisi-- 
 i|in'nr- imlorsi'incnt liy surli iiayt'c, aftiT the hill hail airi'. nl at niiitiiiity, 
 was licM not to '.,'ivo till- holilfi' any title to the l>ill : h'silni/i v. Ln Xtiir.i , 
 I \. it ('. Kx. ;{!t4, 
 
 Notice of such fra.iiliili'iit imlorseinent ;,'iven to the luinn liilr hoMer of 
 a note, will not atl'eut his I'ieht to recovei', nor will it all'eit the li^'ht ot 
 
 Ills Mil 
 
 loi'see, tlioui'h the l.isi; indorsement was made atter the note 
 
 due 
 
 Mrl.rnil V. Cm 
 
 1 I Ian. X. l;. .-.(I-J. 
 
 Till' Court will not order the production of eheipies ,dlei;id liy th 
 
 deleiidallt to lie fi 
 
 or^'eries, tor the sake ot eompann;,' the 
 
 liaml 
 
 « I it in;; with 
 
 a doeuiiieiit. alioiit the i^eiuiineness of which thi' pai ties are at issue: 
 Wilioii V. Thiiriiliiiri/, L. M. 17 I'lip •")I7. 
 
 Tlie.se (fi)r;,'eil) docliinellts arc not liills of exclialige ; tlierefote />riiii<i 
 I'lii'ii sncli d'iciiinents are not dealt witii li\' the Act. lint as lnLwceii 
 
 p.iltles. where one is estopped troin deliyin;,' to the otii 
 
 tiiat tile docu- 
 
 iiii'iit is a hill of exciiaiii'c, the diicmiKMit as lictwecn them must he treated 
 
 a hill of excli.niL 
 
 icMi'' within 
 
 the Act ; /'',■ Lord Ksii 
 
 M, I! . r..;//;.(//() V. li'tiiL- i,f Kii'jhii„l,--.^^i. Ii. I>. -'■">-. 
 
 ■ " Unaiitli()rize(l.sii,'nature." Thcj,'eneral rule is that if any [lerson jnits 
 the name of another on a hill or note without authority, with the iiiten 
 tiiiii of meetiii:; the payment of sucii hill or note when due, or that the 
 
 pi-rsiiii whose name 
 
 h.is h 
 
 cell jiilt on the hill or note will ovei 
 
 I'look 
 
 it, it is 
 
 tiir;;ery : Hex, v 
 
 I' III hi 
 
 C. & 1'. •-'•24. 
 
 if 
 
 [icrsDii lelyiiii; upon the 
 
 kiiiili 
 
 of a near relation or friend, uses his name on a hill or imli 
 
 ith 
 
 out authority, trusting that such person will pay it rather tlwni tlieit^ 
 should he a prosecution, this is also foi-Lieiy. And the fact that siieli 
 relation or friend h.id on thri 
 
 h 
 
 r four pic\iciii- occasions, \\lieii lulls had 
 .11 so drawn, paid them uitliout remark or reinoustaiiue, uiaiid allord 
 
 ,7'"" 
 
 mil for the l)elicf that he hail autlioii/ed such use of hi- 
 V. Ihard, fSC. & 1'. \V.\. 
 
 Illi'stk.\tu)N- 
 
 A 
 
 pers 
 
 ilio ki 
 
 that 
 
 :.the 
 
 relyiii'4 upon his forL,'id si;^'iiatiir(? 
 
 to a hill cannot lie hv and not divulye the fact until he sees whetht-r th 
 
 position of such other [lerson is altered for the worse, or h 
 
 II h 
 
 •Id 
 
 t" have acquiesced in the forgery, and he esto|)pid from denying his 
 Ii ihility oil the hill : MrKi ir.li v. liriUsh Limn Co., (i App. ('as. S'J. 
 
 rile name of one V. had heen forged to a note, hut previous to the trial 
 
 he had stated that he hail 
 
 d til 
 
 ite for the a 
 
 ccoinniodation i 
 
 if 
 
 CM-ili't'fiiilant ; — Held, that F. 's conduct amounted to an adoption aiel 
 latilication of the signature to the note, and that he was liahle thcre(»n : 
 I'liivn. Bank v. Farusirurl/i, Ii) Uuss. & Uel. 82. 
 
 
 
 ' 
 
 
 
 [ft ' 
 
 
 
 
 
 
 
 
 1 
 
 
 1 
 
 
 R '''•' 
 
KM) 
 
 Till'. llll.l.S o|- KXCIIANOK ACT. 
 
 SeC' 24' If ''> paitv til ii lii'l, on lii'iii^ : xkoil if it is IiIm Iwiiiilu ritiii;,', aiiswi'irt that 
 ~~" ~" it i-", Mini will lie iliily |iai'i. In' iMiiiiii( iif t(r« iinls ncI u|> .i iI' li'lnc "t 
 lorgii.v . Icpi ln' lia!< riciliiid ilii' lull, ami iiMluicil otlu is t^ t ikr it : Lmrh 
 
 V. 1 1 III lull 
 
 •I Iv 
 
 >|.. •.'■.'(; 
 
 A lull |iiii |i.iiiiii;i.' tn 111' iliawii liy .1 really fxistiii^ liiiii payalilr t" tin ir 
 onli'i, aiiil til III' iinliiiMil liy tli< in. waw in ^jntiati'il liy tlir arii'|itiir Willi 
 that iinliiiMiin lit u|iiiii it. I hr ilraw iii^ ami iinim .siiinut wrii- tin ni'lii--; 
 
 iiiM. th.it it till' lull « as aritpti'il ami iii';:ntiati'il liy tlir ai(r|iliir w it h 
 klmw liil;,'i' lit t III' Iiil;;i|-\ , III' Wil.'H I'-t i|i;'i'i| to ilrliy t ho lliili)r.srllU'lll a- 
 well a> tin- ili.iw iiii; : /!,, imiii v. /)iif/,\ II M. \ W . 'J.'tl. 
 
 \VI 
 
 nic till' 1 1 ii.'-ti 
 
 III 
 
 aiitv hit tlnii seal in tlii' iliHtiii]y of tlnir 
 
 Hfcntaiv. ami hi' tiainlilh iitlv atli.xnl tli 
 
 ll to li\i! tip|i;ril |iowi'IM III 
 
 ittoiiny .Mil hull/in;; thr t laii.'^ffr of stm k ; llclil, that any allcL'nl 
 
 ni'^li'iilni ill allow llH' tlir m ri 
 
 ri'larv tolia\c tlm iiistmiy olthc .'■(•al 
 
 vrry iiim'dly I'oiiiii'i'tt'il with llir fiamliili lit ait of tiaiislnr, ami not ci-.h 
 iiH to iiiaki- till' tnihli'CM lialih' tiicri'tor. If ;i juison iii';.'lij,'riit l\ kcfps hi- 
 clu'iHic liiiok, or iicyh'ctM to lock the ilisk wlicic it Ih kipt, ami ii siTvaiit 
 or Htr,iin.jir t ikrs it ami tiirj.'i'sa clit'inii', siii-li |ii'rsiin is not },'uilty of li'j;iil 
 
 n('^ll;;tinr tu iiiakn him 
 Hunk I'f li'liiiiil V. I:'riiii-< 
 
 li.lliln fur t 
 CI, 
 
 II' I'liiiM i|iiin«'(.'M of .siii'li forgery 
 
 II I'll II .", ii 
 
 II. L. ( 
 
 .•;m). 
 
 Whert' a hill of cxi'han^f has liceii ni'notiatiil liy nir.ins of tlii' fuij/i'i \ 
 of the ii.inii' of t he piyi'i', as iinlorsir, finiity will restrain even n lnniii 
 Jill' liiihii r oi the hill fii'iii siiiii!.' the aei'e|itor, ami Will ilirii t the fur^eii 
 ilisti linnni to he ileliven ll n|i tu lieeamelhii ; Ksilaili \. I.n Xmr.i, 1 ^■. 
 
 & ('. I A. .•nil. 
 
 'I'ln- ilni'liiiie of I'lstoppel ii.is lieeii iniieh iliseiisseil in aoine of tli 
 
 it 
 
 mr.tliy favmeil li\ the euuits, i's|)e('i,iily where it is esseii 
 
 tiiil to the (|iii'k ami easy tr.iiisaitioii of Imsine.ss. Ami so tliataiiiaii 
 siiiiiiiil he alili' to put faith iii the ininlmt ami ivpreseiitatiuns of his fel 
 lows, tlu; ( 'iiiirts havi' iiielineil to Imhi siii'li inmliii.'t ami repre.sentatiinis 
 hiiiiiini;. in eases w iiin- u niisehief or in jiistiee woiihl he caiiseil liy tieatinu; 
 
 their ellei-t ,is icvoiahli 
 
 ■S;/* 
 
 ■ /ll'.- 1.1,1,1 
 
 '".'/ 
 
 ( V/s 
 
 ■Kid''. Ami .tlthoiiLih it 
 
 lias Ih'i'ii l.iiil ilowii .IS ;i lii'o.iil iremi'.il pniiei|iie tli it wherever one of tW' 
 innoi^i'iit persons must siiller 
 
 liv til 
 
 aet of a tliiri 
 
 le Willi lias 
 
 eiiaMeil 
 urst, .1, 
 
 sin h iiirsiiii 
 
 to oi'e.i.-inll the loss must sillier it. (I'lT Ash 
 l.i,-/r',>ii'ri,ir V. Mii^'Hi, '2 Ivust 7<M, the I'eiieral rule iinw 
 
 Seems tu he til it wl 
 )f 
 
 lere a elel 
 
 or 
 
 serv.-mt of one person h is hy virtm 
 
 or his eiiipluyiiniit. iieeii aole to ei'iiimit a tr.iml on amitiier, nei;ligeuee of 
 the eiiipliyer of sueli elerk or servant, niii^t hive lieeii the iiiinie.Iiate 
 
 cause of tiie fr.iml. 
 
 is to niaki' sueh einiilo 
 
 i\ei lialiie ; hut where sueli 
 
 lie 
 
 'gligellee of tile eliipluyer is the rellliite ami lint the [iloximate cause of 
 
 ■h f 
 
 rami, t he eiiiplnyer is n 
 
 it lialile. Mere iiei;lii;eliee, or a careless ;iii 
 
 slovenly iimih' uf emnliteting hu.siuess is not uiioiigh : Va'jliauo v. Hank of 
 Kii'lliuiiL '1-1 (}. 1'.. 1). 117. 
 
 li.i.rsrit.xTioN."*. 
 
 In an .letion n^^aiiist the iniloisir of a note, it apptareil that his name 
 had lain wiitten hy the maker, his nei'liew, ami theie was i,o eviilenee of 
 exjiress ,■ nil ority ; hilt it va.- pioM'il th.-.t the (h fi iiilaiit 1 ail heiore ami 
 att( I'wanl.s imioised for his m phew i n jiiiiehatii s hy him In ni the jilain- 
 titl'si, and til, it when payment ol tiiia note was ilinianded Iroui him, he had 
 
Tin: itii.i.s MI- KNcii vNcii: act. 
 
 101 
 
 .'i''k>'<I ror titiif, lunl liiii' not ili iiiuil liix iiKlorxriiu'iit iiiilil somi' nmntliH Soc- 24 
 :ifirrw,iriiM, wlifii till! iiiiikiT li.'nl ali-tc'iiiilu'l. Hi^ cxciihc w.ift, tliiil lie — •■""' 
 U' l>t III) ini'iiKir iiiiliiiii til Ins iiiilorsi'iiK'iitt, unA HiipiiuMcil it was ri^lit ; 
 II M. til It till' >l'l'i'iiii lilt ii,i>l iii'i'i'liiijril liiiiisi'lf liy his coihliK't fi'iMii ilm 
 I'liMii^ his liilpility ; /'I'lli \. /fni/... 17 V. ('. t). I'.. '-'T. 
 
 Oil .in iicfioii liy iii'li>r»''i's for v.iliU', ii^Miust ii linn iif M. ;iiii| ( '. . mi a 
 iiill <liMvvii liy S. »t I'll., ill tlii'ir mvii f.iv.mi', nivi'iili'ij liy M. X ('., iiiid 
 ml'iis'il liy S. .^ ( '() ti> till' |il,iiiitili's, till' il fi'iil ml ( '. plri.lrd tli.it tlm 
 liill was .irci'pti'il liy his )iai'tii"r M. in tlw ii iiii'' of llif linn as an ari'rnn- 
 III "latiuii f >!• S. it Co., .111(1 willioiit his, ( '. ".s aiilh n'ity. ami \v i.s not within 
 iIm' si' i|ir .111 1 (ihj.'ots of till' |)artiii'islii|i Imsin.'ss. ami tli it tlii' |>I liiitills 
 Im ik it with iiotii'i' ; -lli'll. til it alilioii,'li it iiii^lit lif iiil'i'iic I ihit tln^ 
 il 1 fill I lilt I '. kill' w not 111 iii; I if till' lull, ail' I til it tli' ari','|it ni'i' w.is lu'V"ii>l 
 :hrsc.i|i ami olijiift if tlic |iartn''r-i|ii|i. ami riitii'.'ly loi'i'i^^ii to thr piir 
 I s of it, h' shmilil liavi' pirail 'if tli t it hail no iif.'i'.'iii'i- to any trinsii'!- 
 
 II 111 aiiil ij.' iliiii^'s h'twi'i'ii S. ,V Co. ami his liiiii : ' Vy nl'dtiii I'lu' liink v. 
 )hn;l„d\ II l". C. C. I*. l:fS. 
 
 Thi'io lilt! cases whiih show that a foriicry in roiini'tioii with a 
 I'll! of I'M'haiigi' or pi')ini.s.-<oi'y iiotn faniiot In.' ratilii'l : ainl this strtion 
 
 III ly III' i-i,' 111 li 'ill way.s. Tin' lirst pint of thi' Hrctinii liiil.ui'.s iliat ti 
 fmufil nIj^ii il nil' is "wholly iiio|H iati\i' " ami uivcs no iij^lit to ri'tain or 
 I'lii'nicc payniciit of it " /o'/i <> thu p.iity JuaiiiNt whom it is suiiuht to 
 . . / /(/( i.i- yiii'm'i'f iii{>i)\\i itl y\'i the hill is pit'clmhil I /'. ( . . rstoppi'il liy r.ititii'a- 
 ti'iii or i'i'j,'lij,M'm'i'), trom .m'ttin',' iqi the liir;;(iy." Tin >iil..si ipK nt pinxisd 
 I, ii\f\i I ■,> mill .si'ciii to coiiiiti'ii.iiii'i' till' view that a forgi'iy I'oiilil not ho 
 iMtiliiil. Ihit Lord lilarkhnrn says : " If a luisoii wIio.m' iiainc was nscil 
 w 'hunt auihiii ity, clioosi .s to rat ify the art, ex t ii t hmiiih kimwii to lira 
 
 I niic, hi' iiiakfs hiiiisclf (.'iMl'ly ii's[ioii.siliii'. just as it he hail originally 
 
 .iiitlioii/('(l it:" Mfl\< if.'ir \. ISril'i^h l/ntiii ('n,, (! Afip. ('as. !l!l, Sri' the 
 
 r.iM'S ;o note l. 
 
 Il.I.f.STnVI KiN. 
 
 '•iii'W. anopti'il rcrtaiii hills of I'Xiliaiigi' in the ii.nm'. hut \xitliont 
 tlr authority, of his hrotlu'r .1. W. wis taUni up mi .inothi'i- cliargi' of 
 toi'^i'i'y. ami wliili- in cnstoily thn liolilcrs of the hills applii'il to ,1. for 
 payaiiiit. .1. then g ivi; a writtoii ai;kmiwli! Ignii'iit (.ifcur tin; hills hail 
 h. I'u (lishonoii'ili, that hi' was rcsiionsihli,' for tlu'in, anil woiiM pay tlii'in 
 ill r isi' his hrotlur shoiihl f.iil to do so ; li.ld, siillicicnt to niakf .1. liahlo 
 on the hills : A'.-' /mrfi Kihriii'l^. "i.liir. 7<Ml. 
 
 ' This pi'o'iso is new law, ami may he taken as a nioililiration of s. 'iO 
 'il till' Knglisli A't which plovidcs that whin a hiiikci, on u hoin a hill 
 piiyahlii to order or dcinand and imlmscd. Is draw ii. pays it in good t'.iith 
 and in the ordinary course of Inisiness, he shall lie diseliar;:ed, although 
 siieli iiidorseniciit has liecli forged. A similar elanse to s. (iOilinp.) in 
 this mcrsip c, was struck out of the Kill during its jirogiess in I'arli.iiiient. 
 The ell'oct of this proviso is to lix a limitation of time to a claim ag.iiii>t a 
 hnik or other drawee, ffir paying out of and charging against the funds 
 of .1 customer, the amount of a forged cheipie. 
 
 Ilj.fsri! ATIONS. 
 
 Payment of a forged draft is no payment as hetwi'cn the ])ersoii |iaying 
 and the person whose naiiR- is forged : < >rr v. I'li'mn Ittvik "/ Sculhtiiil, 1 
 .Maeii. II. L. (as. 'il.'J. 
 
102 
 
 TIIK I!I[,L.S OF KXCIIANGi; ACT. 
 
 Sec 24- A ciistoDior iliow ii|i(>ii liis liiiiikiT a tlu<|U(! lor t'.'i, ami paid it away. 
 
 ■ • ' 'I'lic aiiiniiiit of tile clit (|iR' u as alti'icil 1)\ tin; IkiIiIit, to t.''2()0, in siicli a 
 
 iiiuiiiuT tliat no <inu, m the ordinary couisl: oi' hnsiiiesH, coulfl liavc 
 oli.scrvcd it. wa.s |iiosent('d, and tiic f'Jdd paid by the liankiT ; Held, 
 that till! banker ua.-s lialile to the eustonier for the ditl'erenee between the 
 amount of the genuine and the alteri'd elieijiie : Ilnll v. Fttllir, 5 U. & C. 
 7r)(». 
 
 The r. I'lank, at (jtiiebee, iiiiide a draft upon tiieir braneh at Montreal 
 for ^'1'}, w itiiout advii'e to the liraneli of tiie fiiet. 'J'he holder altered the 
 amount of the diaft to .•?"), (KKI, and dejiosited it to his own eridit in his 
 bankinu aii-ouiit with (). liank whitli presented it without delay, to the 
 branch .it Montreal, wlure it \\as]iaid witliont olijeetion. The (). Hank 
 tlien paid part of the jiroeeedn t) the dejiositor. Six days afterwards the 
 U. Hank discoviied the Ir'ainl ami (hinanihd bark the amount of the 
 forgery ; — Held, that they eould not reco\er: Uiiiuu /Ian/, a/ l.'uri r Cii)>.ii/<i, 
 V. (hi.firlo I'ldiik, 2 Leg. Xews i.TJ iV u'S L. C. J. tit), .'{ Leg. News 3SG, (t 
 
 'J4 I.. ('. .1. :;i)i). 
 
 Procuration 
 
 sifrniitiiri's 
 iiiilii't (if 
 liliiili'l 
 aullini-ity. 
 Imp. Act,^.-") 
 
 
 tl 
 
 A sioiijtturr l)y ])i'()C'in'uti()ii opei'atcs us notice tlmt 
 ii liiiiitctl autlidiity to sion, aiiil tlio 
 liv >ncli .siiiiiatniv only ii' tliti ao-eiit in 
 
 ic a^iMit lias liut 
 
 pniicijial IS boniiil 
 
 so si'niiiii'' was actiiii 
 
 andinfitv'. ' 
 
 w 
 
 itliin till' actual limits of liis 
 
 'The signature by proeuration Ijjir/iror. ov /irr pra.) is notice of tiie 
 I'lnittHl authority of the Mgeiit signing. I'.ut the iiiineipiil cannot be bound 
 if tilt; agent lias not the authority he i(')iresents. 'i'he agent however will 
 
 )e liound if he assumes so to act without authori* 
 
 if h 
 
 authority of his prineip.d. in ea,s(! of a defective power in tli.j agt'iit to bind 
 
 tl 
 
 le urinii|);il. i 
 
 if til 
 
 agent .vjieaks only in 
 
 the 1 
 
 Uli'liaue o 
 
 f th 
 
 jirincipal 
 
 not be lial 
 
 unv on the 
 
 and does not use apt language toliind hiniselt. In- 
 
 conti'aet ; but he ni:i.y lie liable to an action for a false assunijition or repre- 
 
 sentation of authoritv : Julii 
 
 V. Siiilfli. '21 Co 
 
 tl'iT. Till 
 
 ess an MKeiit 
 
 states mioii the face of the bill that he subseribes it for aiiotlu'i- ; mile: 
 
 he say.s plaini, ' I am tlie mere scrili 
 
 Lord i']llenlioioUL;h, C J., in Lmdii lli r v. /'(irixnr, 5 M. & S. ;]4."). 
 
 he will be liable personally : /'ir 
 
 Il.l.lSTK.VTlUN.S. 
 
 A power of ■ ctorney giving the ageii 
 
 it full 
 
 po 
 
 .•rs as to the management 
 
 of certain speeilied real proj)erty, w ith general word.s extending those 
 powers to all tlu' ))iopcity of the prineiiial of every description, and in 
 eonc'iisioii authorizing the agent to do all lawful acts e<ineenniig all tlie 
 
 or kind soevei, does not 
 ill the name of i;is prin- 
 
 innciii.i 
 
 I's 1 
 
 lusiness a 
 
 nd atlairs of what natiiri' or 
 
 autliori/.e ilic aijcnt to unloise lulls ot exchange 
 
 eipal : K^diiili v. I.ii Xi 
 
 1 V. \ ('. K 
 
 •14. 
 
 A general power to an agi nt to sign bills, notes, &e., and to siip'rin 
 
 teiii 
 
 iii.'iii;ii.'e, am 
 
 1 <1 
 
 ueel 
 
 dl th 
 
 iH'.iiif 
 
 f the principal 
 
 yivis liim a 
 '.lit. 
 
 power to indorse notes: Aiiltlja v. McJ)iiii(/iil/, .'i V. ('. t ). S. 
 
 A person t.ikinga bill signed (//'/■ jirtit .i siiould re(|uire the )»rodurtion 
 
 of th 
 (J. -iTS. 
 
 ithoritv \\ hieh the a';ent exercises : Altifuvd v. M 
 
 uiniiinjs 
 
THE I'.Il.l.S OF i;X<HAN(ii: ACT. 
 
 lo:; 
 
 An iicc('[it;iii((; or nil imloisiiiiu'iit ex])it'ssi;il to 1»' jur ]irficiii,aii)ii. i.s a SeC- 25- 
 noticu to till' iiiilorsi'c tli.it. tlif party so arrtptiiig or iiiiloi'siiiLr. [)iofrs.sfs — — 
 to act uiiik'r an aiitliority from wonu' )iiini'i|)iil, and inqmsis ii|iiiii tho 
 iiidorsci^ till' fhity of a c'.'ftaiiiiiiL,' that the |iarty so .■ic'c('|)tiiiL: oi- iinloisiin; 
 is actiiii; within tlu' terms of such authoiitv: A/' .rnni/i r \. M'h'iir.n,^ 
 ('. I'>. 7(l(i; \'.i Jur. ;U<). 
 
 A liill a(,'ci-])te(l por procuialioii is notice to any party w ho tak's tliu 
 hill that tho acceptor has iiiit a liinited aiitliority, .ami the liohh'r cannot 
 nuiintain an action against the acceptor if the aotlioiity lias liecn ex- 
 ceeded : Sfii;i-i V. /■://;,,//. 1-2 ('. I!. \'. S. :)7:! : () !,. T. \. 's. 4X1 
 
 A jiersoii who accepts a hill per procui'ation, ha\iiii,' no .nitlniiity to do 
 so, is liaMc to an action oi' tort for fal.-ely representing that he was so 
 authori/ed, .although he may .it the time have thought lu' had aiitliority, 
 or th.at his act would he rat'ilied : /'n/'n// v. U'n//, r.^ :i W. \- Ad. I 14. 
 
 If a ]iriiici|i d authorizes an jigi'iit to accept a hill, siidi principal is 
 lialile as acceptor, though widiigfiiily descrihed liy his aL'i iit iii ihe 
 acceptance : l.iiiilus w Hi-iithri'll. .">('. j!. ,")S."! ; I'J .hir. 'I'M). 
 
 In an action against a party as acceptor of .a hili accepted in his name 
 hy another per.soii, when evidence has heeii gi\cii of a general .■luthority 
 in that person to accept iiills, in the clefeiidaiit's name, an admis-inii liy 
 tiie <lefeiidalit of liahility on .another hill so accepteil. is Linod e\ iihncc 
 conhrmatorv of the former: IJiiriUiin v. Wuirkirorili, \'.\ M. i\: W. .")!)s : 
 II L. .1. V.\. :!•_><). 
 
 l'"roiii the facts that the defendants' conlidenfial clerk had hi^cn accus- 
 tomed to dr.iw ehei|Ues for them : that in one iii>tancc, at least. I hey had 
 authorizeil him to indorse, and in two other iii.-taiiccs had ici-eivcil mnney 
 iihtained hy his iiidoi'sing in their name, a jury is w .irr.aiitcd in interring 
 that the clerk had ;i -ener.il aiithuiit \' tn iiulni-e : I'ri .<r,ill \. FIhiik.W 
 r.iii'.'. 111. 
 
 Where an agent is authorizeil to imloi'sc tlic nanie of his |iriiiei]ial, he 
 may do so hy the in.striinieiitality of a th;rd pai ty. and .--ucli .iiithnrity may 
 he exercised hy the clerks of Mich ,igent : I, mil w Hull. •_' (', v\: K . (1!IS : 
 /•,> //!(/•/(• ,Si//'oii, •_' Co.-. S4. 
 
 Certain notes for debts ])ayalili to the cntiir< of an e^t.ate came 
 into the hands of 1!. the agent of the exccutor.s, who indnrsi d t wo of them, 
 •■.I. M. 1>., agent of the executors of the late [■',." and the third '"the 
 ■ ■\ecutnrs late I!., y<i /• y,j'o. I;." !'., held ;i power of .ittoriiey from the 
 executors, authorizing him (anmng other thiiig>) to make and indor>e .ill 
 >ucli pi oiiiissory notes as might lie ri'i|ui.-<ite in the conduct and maiiace- 
 nieiit of the est.ite. 'i'hese leacs indeised as .ihove wire uiveii to M., 
 Mill' of the executors, who w;is laru'ely iiidelifcd to the estate, and was in 
 diliiciilties. and who liiscoiiiited them with the liank, to \\hem M. 
 iiwed a large sum, and who made iin ini|niries as to the cvtciit nf lis. 
 authority, or the cireiinistaiiees under which M. iilitaiind them : lleld. 
 
 That the iiidorseim nts were siillicieiit ii 
 
 hilt. 
 
 That tint licillL 
 
 the pur[ioses of the est.ate, th'V w lie nut within the aiithelity 'ji\ i n to 
 
 !>., the extent of which it was 
 
 the hank'.- diitv ti 
 
 iscertaili : H 
 
 •j(i ['. c. o. i; 
 
 ii. 
 
 1'. \' c. f. 
 
 iiiiiiii ti 
 
 ireigii corres|ioni 
 ■feialant for f.'iCO. iiii 
 
 lents i.f II, (i. \ ( 
 
 o., relilli 
 
 ted to th 
 
 /,''-/./,• 
 
 hill 
 
 d in .a letter advisini; tlnin that it 
 
 it to meet a draft on II. i> .V ( 'o. of the same .ininiint. 
 
 ire tl 
 
 airi\ .il of the letter. ( i, (who .done ci instituted the lit in ef II. C. ,V ( 'o. ;, 
 h id .ahscondeil, having ]irevioiisly addressed a letter to I,, antherizing 
 him, for and in tiic iiaiiic of 11. (i. iV Co., to iiulorse any hill or lulls which 
 
10 + 
 
 Till': liiLF.s OF r<:xcii.\N(ii; Acr. 
 
 See- 2')- ini;^ht lie roiiiitii>il to tlu'iii, iind toili-ipriHc rvf tlicni in a partionliir way : — 
 — • ■■ llcM. til it til'' liist iiiiiiiliiMiiMl luttcr liiil not niitliori/.c i,. to iiilor.sc tin 
 
 1)111 ill (lui'stioii, in i.siiiii'-li as that hill iiovor i 
 
 ic'aiii' 
 
 till' |)i'o]ifrty of H. 
 
 ( ;. it ' 'o. , the coii'lition u|ion whirl i it w is sent to thi/m not hciiiLj capahle 
 
 Ol tlllllllll 'II 
 
 t : /•• 
 
 /■■//'■ 
 
 s Scott, X. i:. '-'ii. 
 
 It w IS ]iroVL'il that oiu; I), wa-: (.'liM'k or agi'iit for tlir ilcfciKluit kci-piiig 
 a storu at \j., ami th.it ilrfiMiil mt ha I s aiu'tioncil his purchasini: certain 
 goo. Is ; Held, that tliesu circiinistaiices gavi' no iniiiliccl authority to |). 
 to sign thu (Ich'iiiluit's name to nc^otialilc ))iii 'r, ami that the jury were 
 \\ arraiiti'il in tiiiliiig that thi^ dcfividant hid given I), no anthoiity to 
 ])urch ISC goods of the iilaiiitill': licalhlii hi y. Vim All<ui,~ I'.C. (}. \\. ;Ui!. 
 
 Where a liill of exclnii'.fe was aeci'lited th 
 
 The llichirdsnii ( o)l 
 
 Milling ('oiii|>aiiy, /"/• .(allies ( Jlass, .secl'et ai y ; -ircl.l tliat the secretary 
 
 w IS lint |)cr.soiially li.i 
 
 Unlrrl^ni, V. ^7a «, -JO I'. ('. ('. 1>, -jriO. 
 
 A 
 
 IV alile to order and adilres^ed to a train\va\' cnnnvinv which 
 
 iiad no power to ai;eept hills, was accepted "for and on helialt or tin 
 eoniliinv " iiv two (lireetois and the secridarv. 'I'lie hill was indorsed ti 
 
 lioldiM' for \aliic, and it was ludil that the directors and secretirv wen 
 
 )> 
 
 dlv liahle, as hv th 
 
 •ptaiiec they represented they hail 
 
 aiithoritv to aece))t on hehalf of the eoinpiiiy, which was a false represei 
 
 tati if a 111 itter of fact: Writ Loiiiloii t'o 
 
 ixial Bank V. Ki'-imi, 1'2 
 
 (.». i;. 1>. 
 
 ]'.] (). r.. 1). .S(iO. 
 
 P.Tsnn si:;!!- 
 iiifT ii< a.'' 1 t 
 or in ri'|ir' ■ 
 
 S(Mltllti\(.' 
 
 (■liar;icti' ■. 
 Iiii).. \il,< -I) 
 ImlAvi,-.:: I. 
 
 Hi. Wlit'i'c ;i ])iTS()ii si^'iis it hill as ilrawt'V, iiiil'ir-rr or 
 
 ;iC'Cr])t 
 
 ui'. ;mi| ailMs \Vi> 
 
 I'lls to liis si^nnturc iinlicjitiiii;' 
 I 
 
 lie .si,L;'n> oir nr mi o.'iiali in a [iriiiciii.ii, ' ny m a rrincsci 
 ati\f (-liarjicti'i'. - lie is not |ii'r-(iiiall\' lialilc 
 
 tliaf. 
 lit- 
 
 he lllrl-i' ai 
 
 Mitiipii to his sio'iiatun! nF 
 
 thiTciiii ; hut 
 
 ^V(lnls (IcscniMnL!' Imii 
 
 as an a^eiit. or a- 
 
 tihiii^' a rt'i»i'fSfiitati\'o charactci', doi. 
 
 not ('\i'in|it him iVoiu jicrsonal liahility .'^ 
 
 l''0!l-;fMI'-' i"Il 
 
 fiivi.ral.;,' I . 
 thi' vail liiv 
 ol'sil.l, I 
 
 II ih'tci'iiiinino' wlitdhcr a SI141 
 
 nature on a hill is tliat 
 
 if tl 
 
 iiiiifiiial ol' 
 
 that of til 
 
 aj^-ciit Iiv whose haml it is 
 
 \viitt"ii, the (instruction most I'avorahje to the validity of 
 (he instrument sliall lie aihipti^il. • 
 
 I' 
 
 le worils acMei 
 
 1 to tl 
 
 signature of tin' ag.ait. whether elei 
 Hi 
 
 hook 
 
 veejicr. cii^hier. s"eret irv. director, or other ollicer ot a liini. 01 minei 
 
 eial e ini|i my, iii 
 
 <t eleirK' indicate that the instriiinent siiMied is 
 
 inteiuhal to he hiiiding on the i)riiici|> d, or on the e(unpiny, and not on 
 him as such agent, or oilicer, so as to hriiig him within the protection from 
 
 1' 
 
 liahility here intended. '11 
 
 le nieli' addition of 
 
 tht 
 
 word "agent' 
 
 irector," or other oilieial title, to the signature, will not exempt 
 
 him from sieh liahility. The ])roper mode tiu'i'efore for an agent todr 
 
 iw, 
 
 indorse, or a a'ept lill 
 
 ir 111 ike or iiidoise notes, so as to avoid jiersonal 
 <poii>iliility, is hy imlieating that he acts as agent, and hy adding tli>' 
 
 ■ siiii -• ri roin:<, or iri 
 
 /liniif ri I'oiirx'- /o IW (IS nij'iif, illnrlDr, or 
 disi|nalitie,itioiis as to the capacity of peisims to make 
 
Tin; I'.IM.S (»F I'.XrilANCK ACT, 
 
 itf.'ic'ts (111 tlirir (iwii a(/c()niit, ilo iiiit .iplil.N to .■i^rii 
 
 t-< : for :iii i-'ciii is Sec- 26- 
 
 ollsl 
 
 I.TC.I 
 
 ii iiiiT(_' iiistriiiiKMit lor iiiiotlioi 
 
 wiiiiKii, lU'ii-. or o 
 
 I'll 'ii'ioiv iiifiiiits, iii.irricd 
 
 tllrr IH'IS ilH 1 llioui'illl,' lliub't- Ir^il di -iilKil i t ics, Mlliy 
 
 lie aL^fiits lor tilt; iiurposcs iiliovc sprriiicil. Xo |).iiliciil,ir form of aii- 
 |iiiiiitiiiciit is iK'cuHsiiry to rii ililr an am'iit. clircrtor, or oiiicrr. to ilraw, 
 ac.'i)it or indorse tiill or notes, so as to c^liarijf his |iriiiii|pal, or lomiiaiiy, 
 -o loii^ as tliu autlioritv to do sn is clearly convcyid, 'I'lic authority may 
 li' vi.tIiiI, or 111.' ooiivi'yi'il liy a sji'ciil form of aiipoiiiliir'nt, or it may liu 
 • '.I'livifl from sonic j^uncral or iiii|ili(' I i,'r.iiit or |Mi\\ir. SnlisfijUiiit ratilii'a- 
 tioii of till,' ai^cnt's or oirh'ci's acts is fi|ni\ah'iit to a previous authority, 
 
 prov 
 
 (li'il the ai'i'iit or ollii-ir \\ lu-ii lir ai-tcd. assumed t<i act as such anient 
 
 idi 'cr. (Iciicral aiitlioiity to colh^ct dclil^ 
 
 liills, or m d<c iioti 
 
 s, or iiidorM- LM 
 
 ither. And 
 
 II it iiwv the power to 
 pci-ial autliurity to 
 
 a •ecpt. make or iiidois*' must lie clearly given, for Mi,di authority is 
 u'''Uerally constriieil strii'tly. Miieli will ilcpeirl iijiou the construction 
 L;iveii to the Words useil in the appoiiitineiit of the aL,'eiit or oHii'er : illld 
 wiuM'e s]iccial objects and liu-.iiie->s arc eniiiiirrati d, siilisei(iient g<'neral 
 
 ill 
 
 voiMs Will generally lie restrained so as not to '_'o lieyoim the spec 
 
 ial 
 
 owcis coiivevei 
 
 d. As th 
 
 onsiiiilitics of 
 
 11 agent of a tirm, or 
 
 illicer 
 til 
 
 ol a c<»iii[)aMy, arc coiiinieiisiiratf with tne extent ni his (lelcgited autlior- 
 ily. it may ln' useful to suiumari/, • some of the general dutie-^ of an agent 
 ;i! the liiisiiicss of his |irinei|ial : 'I'lie a'i 'lit ~hoiild lie careful, ■- 
 
 I. 'I'o perform wilh care the duties he h.i- iiiidei taken. 
 
 ■_'. To do all .lets in the name of his priiieipal. 
 
 .">. To ac't in person, uiilc--s an thoii/ed to deh-'Mte his duties to anotli(,'r. 
 
 1. To keep faithfully within the terms of the authority 
 
 n\'en liim, ami 
 
 'cy his (irincipars instructions 
 111 the alisc'iice of spi^cilic instruct 
 
 lolls in a 
 
 ll\' sp 
 
 mat ter. to con 
 
 I inii to usage or recogni/ed modes oi dealing in the special l>U'-iu<";s 
 li. To act ill g I faith during his agency. 
 
 To use reasonalile skill and 
 
 oi'itinarv (lili'.'encc 
 
 S, To make a full disclosure to his principal wIi'Mc he has an adverse 
 
 l.llen St. 
 
 ".I. .\<it to allow his private interest to contiol his rluty to his principal. 
 
 Id. To keep the goods, accounts, and moneys, of his principal separate 
 ii'iiu lii> own. 
 
 11. 'i'o render full ami eoiitidcntial reports of his dealii 
 
 .1 full 
 
 unts of his recciiits auil d 
 
 i.-l(iirseiiiciits as agi-nt. to his piaiicipal. 
 
 'i'o act in all matters connccti 
 
 wit h (he lill^iness 
 
 if 
 
 MS iiiincipa 
 
 i> lie WiiUlcl c.xpci 
 
 t his agent to act, if he had >iieli an agent. 
 
 Ii.i.rsru.Mioss. 
 
 \ lirm a.'tiiii.' as aLtciits fm- another, purchase. 1 a load of .'nal. without 
 -i.iting that they were agents, and sent in )iaymeiit a draft drawn hy 
 rli"inselves on iliei- priiici|i,ils, ad li'iLT tin' word " .Xiji'iits" to their own 
 ignatui'' ; - Ifi'ld. that llie\' were person illy lialih; as drawi 
 
 /,'. /'/ 
 
 MrCI, 
 
 Cs//< V, 
 
 u 
 
 s V. ('. ('. 1'. .-)((. 
 
100 
 
 THK j:ii-ls ok Ex<'iiAN(;i; act. 
 
 Sec. 26. 
 
 . ' 15. to I 
 
 If ;iii iij,'('iit fur A. (liiiws ,i l)ill upon li. in favor rif ('. tlioiigh lie iliifits 
 
 iliirc the 
 
 it to A."s (1 
 
 clllt, tint iim'llt \\\ 
 
 11 )>' 
 
 )(r..-on:iliv lia 
 
 il>l( 
 
 to(". if this liill i.s not piiiil, tiioiij;li ('. Uiii'W lu; uns only ayiiit inr A., 
 nili'ss JH' nscs |)iopii- Wolds to piuvt'Mt such liiiltility : L' iidliitii r v, 
 
 /-', 
 
 M. .V s. ;!t: 
 
 "A. & Co., i.y A. jnnr.," 
 for, Jinil not as one of, tiu' titni : hdirliinj v. 
 
 A (Icfi'inlant'.s iniloi'scnicnt niiuli' li\liis w 
 
 priiiKi farii imjiort.s tliat A. .'^ii^ns tl'c note 
 
 /■:,i^/,n„„l, .-{ V. ('. (,». 11. .•!7(i. 
 
 iff. tlioMi'h in lu T own nann 
 
 hut afti'rwards iccoi 
 action cm tlu' l>ill : /.'( 
 
 ,'nizL'(l liy (lifiiKlant. would ii 
 ;>.ss V. r,'„/,/. 7 C. ('. (.>. I'., tit. 
 
 Iinji liaii 
 
 If t. 
 
 Hills wcrr (liawn iiy a lionsc in Lonih 
 
 lious 
 
 Lisl 
 
 thirty days aitiT si 
 
 uht. 
 
 and inilorsi 
 
 ion. ]iayal 
 
 to A. in London. A. indoi.si'd tiicn 
 
 ithont any (pi.-dilication to li. ,it I'aris ; I!, without ]iri'stiitinL; thcin foi 
 
 iicucplani:*.', put tln'Ui in liriulation, and on \> 
 
 icniir iircscn 
 
 ti'd at l.i.slion foi- 
 
 ;ic('(.'ptancf, they were dishonori'd. In an action hy 15. ai,'ainst A.-- 
 Hcld, that .\. was hound hy his umiualiticcl JMdorsinni'nt, and co\dd not 
 otl'er i\ idi'Ui-r to show that he wa.s acting nurcly as 15. 's agent: (!i>ii/'ij 
 
 V. l/anl, 
 
 aunt. 
 
 'I'lii' plaiiitiil" sn|)pliiMl the dofi'nd.mt with goods ordoi'o<l tlirougliM., 
 till' |)lanitilfs travuUur, and thu dclVndant hy way of payment aciuiited a 
 
 hilldiawn hy M. uiion tint defendant, and made payahle to li 
 
 d.d 
 
 aving cashed tlii' hill, and it.s valiu' did not n 
 
 de 
 the ula 
 s. It 
 
 M. 
 
 Mas 
 
 tiff, who then sued the defendant for the price of the good 
 ]iroved that .M. had on a prior oee.i.sion, taken payini'nt hy a liill <liawn in 
 hlank and accepted hy the defendant, which the plaintilf had aft'rwards 
 lilled up and cached, and also (iiat tlic phiihtill' hul w ritten a letter to .M. 
 which \(as siiown to the defendant, in which lie intimated .•i wish to draw 
 u]M)n him lor an .iniount <lue ; -Held, that neither tlu; previous dealing 
 
 nor t hi 
 
 iett 
 
 er ol ti 
 
 )1 lintitl to M. 
 
 eviilence o 
 
 f an authoritv to .\1. t( 
 
 draw a hill in his own favour: /fn,j,ir/h v. \\'lirrl> i/. L. I!. IOC. 1'. *'>'M). 
 
 'I'ht' treasurer of a It.iilw ay and Canal company .'iccepted a hill ch'.iwi 
 upon him .is such ticisuier. thus •• Aecej 
 
 ited, W. A. <;. 'I'l 
 
 s. \V. I. 
 
 I!. \V. .V C ( 
 
 soiialh- liahle 
 
 /■',,,s/r 
 
 th 
 
 ipany's seal : -Held, that he was jier- 
 
 It L". ( . (•, 1! 
 
 !;{'.». 
 
 A hill drawn hy one defendant as secretary, on, and accepted hy tie- 
 other defendant us president of, a railway company, did not come w ithiu 
 the juovisioiisof the coiniiany's charter anthoi-i/ing the draw ing of hills t< 
 
 •pti 
 
 hotll Wert 
 
 i;. c. c. 1'. 1. 
 
 ly the |)rcsi(|cii 
 
 t and countersigned hy the secretary : and 
 
 ally rcsponsilile : /ttin/cof' Moii'rui/ v. Snuui. l'> 
 
 Ji 
 
 1 an action ;i:,'iiiist an ai'ce])tor on tlu 
 
 foil, 
 
 ill of 
 
 •h 
 
 ige:- 
 
 5S00. .Moiitreil. l'\ h. I!». ISIilt. Two months after date, jay to th<" 
 
 ('artier l>ank in .Mcnticil, ei^jht huinlred 
 
 order of iiiv> 
 doll 
 
 ■If. 
 
 at tilt 
 
 us, valui' receive! 
 
 ((Ut. 
 
 ami eh,>r.ri 
 
 th 
 
 ;ame to accoun 
 
 t of Iv K. C 
 
 and :iildresseil to the Secictary, itichaidsoti Cold Mining( 'ompany, i'xdh 
 ville, Ont.irio, was ai 
 
 )t<'d thus 
 
 T 
 
 \{\v 
 
 )n ( i 
 
 M 
 
 imiiu < 'o. 
 
 I»r 
 
 allies ( ■ lass, .^ei'retarv 
 
 Held, 
 
 not to he the aceept;mee ot the 
 
 soeretarv, and that he was not [icisonally li;ihli> : HdUi rliDU \ . (Hnx 
 
 \j. V. (■; 1'. ■_'.■.(). 
 
 ••II 
 
 as 
 
 A .1 
 
 foil. 
 
 ircctoi II 
 
 W 
 
 impany signed hy himself and other direetfu's a noti 
 
 till 
 
 directors of the Roval 1> 
 
 if .\ir.-tralia. for oui- 
 
 selves .-md 
 inise to p.iy ( 1 
 
 itlier shareholder; 
 
 II. W 
 
 if the ciimpany. jointly and severally ]) 
 
 or oe iler. ul 
 
 1 the I'Jth of Kehruary, IS.'iO, at the 
 
TIIK I'.llJ.S OF KX('HAN(iK ACT. 
 
 107 
 
 I iiion li.inU (if l.diiilnii, f'idO, !())■ \ali 
 
 ]i:iliv 
 
 ;isi.' 
 
 -Ilflii, that 1 
 
 If was inT-iiii 
 
 Me iccfivi'd (111 aic'diin 
 illv llal)le : /', iikir,/ v. C 
 
 t (if the coin SCC 26- 
 
 A liill was (lirccte(l t') tlio joint inaiia<,'i r^ of an Insurance Associ.itioii. 
 as acee])te(l tliiis : " Aecepteil, .1. .1., W. S. as joint niaiiagers ot the 
 
 ition ;" — Held, tliat tliey weic peisonally 
 
 lloyal Mutual Maiin 
 
 lialiie, and tliat the introduction of th 
 
 iir 
 
 ird "as ' liefoiv the woid- 
 
 |oint niaiiai^eis, nia(h' no dillerenco with respect to sueii 1: 
 
 il.ilit' 
 
 ■ htik' 
 
 11 \.. v. i: 
 
 s-js. 
 
 A. directed a liill to a eomiiany of limited liahility liy its name withi'iit 
 tlic addition of tin.; word " Limited. ' which wasacce]ited hy the secrt tal\ 
 ii>todo\\s: "Acce|ited, payalije to Messrs. i>. it Co., .1, M, secretary to , lie 
 coiii]iany ;" Held, that the secretaiv was ]iersonally lialile hy lisisoii of 
 the omission of the word "limited" in the name ol the coiiiiiaiiy as 
 
 i(i|Uire(l hy the .\_'t : /' 
 \ note siiined li\ f( 
 
 V. Miirtiir. v.. 15. it K. AW. 
 
 lUr iiersons, licsc 
 
 if the I'iiiancial Insuranci' Oompany, (limited)" and 
 
 rilling tliemsehcs as ••director- 
 
 C (;. (i 
 
 .\1 
 
 inaircr, ' in tlu-^v wdrds 
 
 tlin 
 
 coiintersii,in( 
 ft( 
 
 d 
 
 lis 
 
 e mouths after date W 
 
 to pay the I'lnglish .loint .'>tock ilaiiU, (Limited ) or (uder Cl.OOC. 
 
 \ alue received 
 
 \ . .S'liiili r.' 
 
 as held liindiiiLr on t!ie lieisoii.'i 
 
 n; L. T. I! 
 
 siuiii'd it: < 'iiiirliiiilil 
 
 The president of a company which was anthori/.ed to 1 
 id iu;il\e note; 
 
 lorrow inoiiev 
 
 actllii; uiioli a resolution of tin; directors, sii'iiei 
 
 1 tl 
 
 iiiitc ill (|llestion, hut it a|ilie.ired that tlu' directors had not lieeli a)i 
 |iiiiiiteil as rei|iiired liy the Act t-lfeld that the resolution siiHieieutls 
 ■ miiplied with tlu; Act ; ;iiid that, as the statut(; empoweiid the dircctnis 
 to authorize the i)resideiit to sign notes, and the plaintiti had arci'pted 
 otes in good faith, and the proceeds of \\liich were aiiplied fi'r the 
 
 thoritv 
 
 >Ucll II 
 
 ses of the coiniiaiiy, it might he ]iresunied that the ] 
 
 roller ail 
 
 L'en ynen : Vin 
 
 \ . < lltiliril < I'ds ( ' 
 
 18 U. ('. f. r. -Jd'J. 
 
 The charter of ii coiiipa y provided that all e\ideiK'es of delit of the 
 iiiipany should he issin il and signed li\' the l're>ident and Treasiiier. 
 pi. II a note siiruei 
 
 iiv siun ollicers \\ 1 
 
 ith t: 
 
 le aililition ( 
 
 if th 
 
 illl 
 
 titles, and to ■\\hich the seal of t 
 
 le ('ninuanv was 
 
 .itlixed :— Held, that th 
 
 ■tlicurs Were not personally liable : (.'//// H'ik/c v. ('/((in;/, \'t V . < '. <,>. !• 
 
 Iiin. 
 
 note w ritten tliu.- 
 
 Tlie President and Hireetois n; the 
 
 W 
 
 0(ll|>tllC 
 
 • d.is> Co.," promise to ]iay. itc. and signed by the Tn -^ideiit ; Held. 
 hiiidiiig on the company, although its real nai 
 I llass Company 
 
 lie was ilie 
 
 W 
 
 ( Mhi.^ror 
 
 .!/(-// V. J/ let., 1 ( ■ 
 
 (N. 
 
 An iustrumeut issued 1 
 
 cashier. J'hirty days after dati 
 claiiiis per Susan King, in 
 
 y an iiisiiiaiicc i ]iaiiy in this fonn 
 
 To th 
 
 dil Mrs. .\. 
 
 or Older with C;;i 1 '.Is. (id.. 
 
 easli, on accoiin 
 
 t (il th 
 
 irpiii'.itioii, ami 
 
 led liy two of the directors ot the company, is lnndin^oii the ciiiiipaii\ 
 as a note, iiotwitlistaudini,' it may not have heen drawn strictly piir.Miant 
 
 so as to lie hiudiie.^ upon the 
 
 to the nrovisions of the deed of settlement. 
 
 sliarehiil 
 
 ili:rs : 
 
 /!//i- 
 
 >/ I. 
 
 K V, .>('( /■()•'' (ii((i /.(/(■ A ■•<.■<(( r((ii(( I o 
 
 !t C. li 
 
 :4. 
 
 'he foll'iwiiii' instruiiienf was sii.'iied hv two directors of an insiiraiici 
 
 conip.-iny, a 
 
 lid sealed with th 
 
 ■al of tl 
 
 le colillialiv 
 
 • tter dat'>. we, two ( 
 
 IV ..111 
 
 f the diri'ctors of the Ark Life liisiiiaii 
 
 1 on ln'li!ilf of the .Society, )iidnii.st' to jiay to Mr. May. 
 
 llle llliilltllS 
 
 .>oi-|et\ , 
 If nlder. 
 
 lii7 l.")s. lid. valiii 
 
 ■ived." Tl 
 
 lere was no eoiliiter siLin.itiire lis the 
 
 secretary of the c()lii|iaiiy ; - Ihdd. a note liinding mi the coinpaii) , and 
 nut on the parties who .signed It : .I;/;/-.- v. A ('7(o/-(//', 1 H. \ .\. l(i.">. 
 
lOs 
 
 TIIK liir.I.S OI' i:\(||.\N(!K A< T, 
 
 SeC- 26- A notiMviis siu'iicil liy tlirtic did'ctors iiml tlic .ic(M(-'tarv of a company 
 
 ' ' iiii'Mi |)ciiatcil witli liiiiitcil liiMlity. in tlic .'nllowiii;,' funii: " I luii' 
 
 iiioiitlis afU'C <l:iti; \vt' jniiitly ](i'iiiiiisc to pay S. or- onlip Clil'U for valiii: 
 I'l'in'ivcd ill str)i'U. oil ai'i;oiiiil (»f tlic \j. ami ll. 1 1 trilwarc < oiiipaiiy, 
 liiiiit(!(l :"- llcl.l, tliiit tlicv wiTo not pcrsonallv iJalilc upon tin' note : 
 IJii'hi^ V. M,!rns. . .'{ ir. it N. 177. 
 
 Sco also the cases i;iti'ii in iioti'S to ss. 17 ainl 'l',\. 
 
 ■As to tiiisti't's, j^'Maf'liaiw, cxi'ditdi's, anil adiiiiliist lators. ao'l otli'i' 
 persons aetiiiL,''r ii mil ri ilrni/. t liey are. Wy oiir law. ■.'eiierally lieM per-on;illy 
 liahlc on Kills ami notes, 'oeeause they have no aulhority i .r dlri c/n, to hi nil 
 tlie ])ersolis for wholil, or for whose lienelit. or fur « llose estate, they ai't : 
 ami lieiiei- to i^rive any validity to the hill oi' note, they must he lU'eineil 
 personally hoiiinl as (]ia\veis or makers. It is tine they may cxe'iiipt 
 theiiis(.'lves from personal respoiisihility hy iisiiiL; clear and explicit words 
 to show that intcnlioii, l.iit ill the alisciiite of such words the law w ill hohl 
 them lioiind. 'i'iiiis if an executor or admiuislrator should draw or 
 indorse .a note, or ai'ccpt oi' indorse ,'i hill in his own name addint^ thereto 
 the Wolds " as executor," la' " ;is administrator," or "as trustee," he 
 ■Would lie personally res]ionsilile for the amount of the hill or note. If lu' 
 means to Ihiiit his respmisihility he should eoiilim; his stipulation to pay 
 out of the i'stat<' : .S7n/v/ i>ii /!i//s, s. 74. i'-iit a person so sij;iiinL,' a hill or 
 iiot<'. will nor ^dsc the holdci' the riglit to eliargi' tlu^ esiite, or to hive 
 the trust est ite administered so as to r.mk as a ereditor ; for tlie assets of 
 ii deceased person are not liahh; for deiits ineiiireil liy an exeeutor or 
 administrator in eoiitiniiinL; the trade or laisiness of tlu^ deci.'ased : //oc ''' 
 V. (lihsoii, 1!) (irant •J.SO. Hut if tin; testator direut.s ids iirojierty to he 
 used liy his execut(us in carrying on his tiade, persons wlio heeoiiie trade 
 ereditoi's of the exe'cutoi's have no claim on the general assets of the 
 estate, liilt only on so limch of it as was em|)loyed in such trade at the 
 time of the testator's d.'ath : Mr\,:iln v. Arlm,, \ \h(\. M. .'c (;. 7t I, 
 s. p. Siiiitli V. SiiiUli. i;{ (Jr.int Si. And siudi tradt! creilitors wlio rely on 
 the ci't'dit of the testator's estate diould look to the will, to aseiTtain tlie 
 extent to \\hi(di tlu' testator has authori/ed his assets to he embarked in 
 trade: ('ii'iiush v. Ciitlni.ih, \ lieav. 1S4. l!ut a provision in a trust ilced 
 iiidcmnifyiu'j the trilstci's out of the estate for the (.'Xpenses of the trust, 
 does not givi' the er(.'ilitors of such trustees in respe(,'t of such expenses, a 
 right to claim as creditors against tint trust estate or its funds ; Worrall v. 
 
 Ihilh.nl S \'es. 4. 
 
 Il.I.rslKAIIoNf 
 
 Til defendants as executors piirehased goods of the plaintill's, and gave 
 
 ■■'h' . ; : '■ We, as exeeiitrix and executors of the late Ii. P., promise," i^e., 
 
 •d })y defendants, "executrix and exeeuto''s of IJ. I'., deeeased " ; — 
 
 i; !e'. that they Were ])crsoiially respoiisihlc : A"' /■;• v. /'nr-oiis, II U. C 
 
 :■ '■■ ;-,i:<. See also /;,„; Ihink v, Cr<:ml:s, •_'(! U. C. <,). Ii. '-Vil. 
 
 V. aeutors carried on the testator's Imsiiioss after his death, and in tlie 
 ordinary course of such luisiness aeceptcd a hill, descrihing themselves in 
 it as exeeiitors of their testator ; — ilidd, that ii'dtlier these eirciimstances 
 
JUK lUI.LS i>V liXCIIANCH A<'T. 
 
 IU!> 
 
 If till' form i)f the ii ■iciitiu 
 
 u'l', I'ciifvcc 
 
 I tl 
 
 ic f.-.tati' oi tiiic (it tlir t\i (U Sec. 26- 
 
 tors, « III) ilicil ill tlic lit'c'tiinc (if the oilur, from tlir unlinary lialiility iqiDii 
 
 the; liill: /Jr( i-jmo/ lluritinjh lUiiik v. W'nlLir, 4 1 it ( i . k .). "Jl. 
 
 A iidtf L;i\i'ii liy Mil rxi'iMitDr, so can yiiii; on tin- testator's liiisiin'ss, to a 
 
 (litor, but in tlu: liaiiio of tliu ti slalol'.s tini 
 
 c-iat'' is iiisohi'ii 
 
 liiiidi 
 
 III;.' on tliL' I'Xtciildr 
 
 I, W iirif tlir tchtalor .s 
 II- \ . II i/liniiis, ;{ 
 
 (.ill. i:.U; 
 
 4 IkC. F. \-. .1. I.iti 
 
 A. & l>. sigiH!il a note, hy wliicli tliiy proiniscil "as eliiircliwaicU'iis and 
 o\ t r,<icrs '" to [ay to ('. or orilcr a sum ol nioin'y witli iiiti rest ; wliicli 
 
 liV <'. fnr il 
 
 If USl I) 
 
 f ll 
 
 >iiiii \v.is ill lait tlic amount of a loan liiai 
 liiiirli; ll.l.i. tliat A. & I'., wen- pel .soiially lialiie : /.'-«■ v. I'iU<l, 1 A. & 
 
 I'f /■ II nil I'll V 
 
 /v. (■ 
 
 il,.^. ^is^■,.^i N. I! 
 
 W'li' Tl! one yivcs a noto as ij;uaiili.in of a mim r. altliop.;li it is so statcil 
 I t.u' liody of the note, he is [jei.^oiially lialile : i'u.^h r v. Fitllt r, li .Mass. 
 
 \\ here iiii'ividuals siiliscrilie their ]ii'o[iei' names tf) ;i note, /iri'iiii I'ltrir, 
 tiny '^re jieisonally liahle, tliouyh lliey aild a ilesei iiitioii oi the eliaraetel 
 
 liut such [iiesuniptioii of [leisoiial li.iliility 
 
 . iiieli tl 
 
 ln,i\' ll 
 
 u.' note IS given 
 e relmtted as lietweeii tlie oiiviiial |i.iiti 
 
 «a-- gixt'li liy tlie niakers .is agents wit Ij the [layee's kiiowh 
 inn/ V. .!//'/(, 17 \N end. 40. 
 
 ly |)ii.o| that the iioti 
 
 l;r,,rh- 
 
 .\ lull (liawii on 
 steamer ('. W, 1 ». 
 
 <t<anier 
 1 
 
 C. \V. !». 
 
 allil o\\iiei> 
 
 /" /• li. ilgell 
 
 t" hinds l; 
 
 ■^ 1' 
 
 ," and aeeepted \i\ 
 lis the o\\ IK r> of t he 
 
 steamer; and tluy eaii he sued liy their |ire|ver nan. 
 
 Mnh 
 
 mill, (!•.■., (. 
 
 IS 
 
 III, ;-i5 Ala. 47(i. ^'Cil rouhu, < iim-lii/ v 
 
 Kniiiaii. •_' .\iU. ;,:{s. 
 
 .\ note as fn 
 
 We tl 
 
 niidel'si('ne(l tnutees of the ehureh and in 
 
 hiliall of the whole hoard of tlUsti'es," signed liy two of the trustees, liind.- 
 the ehureh. as the ageiiey siiliieiently up|ieais on the fa.'e i.i the willing 
 
 llii.ikril V. r 
 
 v//, KU'al. 4."). Sill mill I'll, linrki r w MhIh 
 
 lii-iniiurr 
 
 C 
 
 ;nVeiid. (N. V.) !)4. 
 
 ■'■ .'^ee the eases as to the signature of agents of individuals or ollicer.' 
 if ei'iiipaiiii'S given in note 1 to s. •_'."). 
 
 The elVeet of tl 
 
 that whetlnr the 
 
 It of 
 
 aiiiitlier. ol' the ottieer 
 
 iif a eom[iaiiy, had or had not authority to sign the hill or note, tlu^ eoii- 
 stiuetion to he givt'ii to it shall lie tlia.t w hieli is most favdi'ahle to its 
 
 \a 
 
 hdity 
 
 as a 
 
 hi.l or note for tin 
 
 liayineiit of niuin'y, an 
 
 th 
 
 <iMsei|lielit 
 
 liahility of Some of the [larties 
 
 Mgnilig 
 
 the h 
 
 1 11 all siii'li e.intra.'ts it 
 
 ~t he remuinliei'i'd that smne jn'i'son or ('..iniiaiiy is inte'iuled to he 
 lid hy the hill or note; and if tin.' priiieiial has not hicii h .uiid at law 
 
 itatioii of till' liahility of sllell 
 or ■■ without 
 
 or 111 t'liiii 
 
 tv. th 
 
 party making the n pie.-eii 
 
 d must, in the ahsellee of the \Milds 
 
 >((//.< /'( Clllll ■■ 
 
 he held liahle. The geliiral result of the eases is however 
 
 .■<iiillietiiig ; ami no elearlv 
 
 delined 
 
 in lie stated as to what foiiii of 
 
 aceeiitaiiee will free the agent or oliieer from personal liahility. The 
 Freneli law treats the hill or note gi\eii h}' an agent, or a iierson in a repre- 
 sentative ehaiaeteras strietly the ciuitraet of the priiiei|ial, thiough the 
 instrumentality of the agent, trustee, guardian, or other [lerson aeiing 
 <7( uiitn: ilroit ; but if the principal is incapable of contiacting, or has nut 
 
110 
 
 TMK r.lI.KS nv KXCIIA NfJK ACT. 
 
 Sec 26. 
 
 Valiialilc 
 considera- 
 tion (Iniinrd. 
 Imp. Act,.". '27 
 
 Uiglits of 
 lioMir for 
 
 Villui'. 
 
 IIoIdtT liy 
 lien is a 
 lioldir for 
 
 N.lluc. 
 
 .uitliun'/od the contract, till' agont i.s personally liaKlc : Story on lilUx, ». 
 7"). "'{'his Hci'tii)ii soniowliat nioilities tlu; rii,'or of the coninion law nilo:'' 
 Clinl,ivr.ioii Jli/U, SO. 
 
 Ctrnsiilcivdoii for it li'dl. 
 ?»1. Valiialtlecoiisideratioii iora liill ' may boconstitutoil 
 
 (a) Any consideration suHicicnt to support a simple con- 
 tract : 2 
 
 {h) i\!i antecedent debt or lialiility; sucii a del)t or 
 lialiility is deemed valuable consideration, whether the bill 
 is payable on demand or .-it a future time : •< 
 
 2. Wlu'i'e value has at any time been given for a bill, 
 the holdtir is <leemed to be a holder for value as regards 
 the acceptor and all parties to the bill wlio became parties 
 j)rior to such tiiue : ^ 
 
 ,*}. Where the holder of a bill has a lien on it, arising 
 either fi'om contract or by implication of law, he is deemed 
 to be a holder for value to the extent of the sum fcjr which 
 he has a lien. •"' 
 
 ' A consideration founded on mere love, or affection or gratitude (which 
 in a li'j^al technical .sense i.s called a griod (.unsideration in contradistinction 
 to a valuable consideration), is not as a general rule, sutiicient (consideration 
 for a liill of exchange, or a promissory note. Nor is a mere moral obliga- 
 tion, altiumgh coupled with a I'Xprcss promise, a sullicicnt consideration. 
 These observations relate to a consideration for the bill as between the 
 imme;iate parties, and are not ap|ilicablc to the title of a holdci' in due 
 course. Tlie true doctrine seems to be that a consideration which the law 
 esteems valuable, nuist in all cases exist, in order to furnisli a just founda 
 tion for an action on a bill or note. 
 
 Il.I.rsTIJATIONS. 
 
 A son gave his note for a debt owing by his father to the holder of the 
 note, for whicii lie was not I'csponsible ; -Held, that there was a gooil 
 consideration for the note, viz., family ati'ectiun : Cuok \. Lviuj, Car. & 
 M. 510. 
 
 A note expressed to be for value received was made in favor of an 
 infant aged nine years, who wr.s tlie child of anothci' pei'son ; -Held that 
 neither gratitude to the infant's fither, nor affection for the child, was a 
 sutiicient consideriition for the note : Hullidan v. Atkinxon, 5 B. & ('. fiOI. 
 
 A defence that the note was maile to the holder as a gratuity, and tluit 
 the maker never received any consideration therefor, is good : I'oiiltun v. 
 Dolmaye, G U. C. Q. B. 277. 
 
\\ 
 
 TTir. r.irj.s of ExniANTii'; act. 
 
 in 
 
 A note fjivcn by toatator in rcncwiil nf ,i jipcvioiis note to si'imhn' a sum 
 (if iiiDiii'V to ii <,'(iil-cliilil, oil wliicli iioti' till' lostiitor liiiil p.ii'l iiitiitst ; — 
 11(1(1, the- iL'm;\Vfil iioti' L'oiistituti'il a dilit, liiit not to tlic prijiidice of 
 cruditors : Dairxan v. Knirloii, Ii Sin. .It (lif. lS(i ; •> ,]\w. \. S, 1 |;{. 
 
 The want of coiisiiU'ration //( /n/o, or in jiart, cannot lu; si't up as a 
 
 ilc'fiiii'i' if the ])!;ii!ltitl iji .tii\ iiii>i miiinU: |(.ni» iiitv.>iii iiiiii ainl ihc 
 (IflVmlant. took the liill or iiotf hoiin jid< and upon a valid uonsidtTation : 
 Marrit v. Li'(, IJayliy on ISills, 'AW!. 
 
 The partial failure of tl;e consideration for which u |)i()iiii.ssory note 
 was given, is no defence tf) an action on the note, without evidence of 
 fnuidi : A'(//o;/;/v. /fi/iilf, 1 U. C. (,t. 15. 4I.\ 
 
 Nor that the conHideration proved to lie less beneficial than was repre- 
 sented : Dalfoii V. Lake, 4 U. C. (>. S. lo. 
 
 1'nt an entire failure of consideration is a good defence to an action 
 limuuht by the vendor of goods as payee ; K< l.iuii<i v. llijnti, I IT. C. (}. 
 IJ. -14.-.. 
 
 I'arol evidenci! is admissible to disprove recei[it of value for a bill or 
 iKite, Init not to vary the engagement to pav : />'»/•('•>■ v. McS/n iri/, ~ 
 L". ('. <.>. W. 4!H». 
 
 A. made jointly with 15. a lease of certain lands to C. , taking notes 
 fiMiii C for the rent, p.iyable at the time it would liecome due. 'i'lie day 
 after the execution of the b'ase, A. <lied intestate, and then 1>. died, and 
 15. 's executor's sued (!. on the notes ; — -Held, tint they could not recover, 
 the consideration for the notes having failed: Miririn v. 'i'((^>, U. C K. 
 T. 7 Will. IV. 
 
 To an action on a note, defendant pleaded tluvt it was given on an agree- 
 imut by plaiiitiiT to ])ay one M, a certain sum, whicii he had not done ;— 
 Held, no defence : Mittthiicsim v. Citnnan, 1 U. C. (,>. 15. 'Jdd. 
 
 AVhere a note was given by one partner to anotiier so as to raise money 
 to pay oft' a debt of the firm, the maker is not liable theretjii to his 
 partner: Miller v. T/iomp.ioii, 10 U. C. (). 15. 391. 
 
 A note made to a wife during coverture m;iy be sued by husliand and 
 wile. The note imports a consideration for the jiromise, and the wife is 
 the meritorious cause of action: I'hilliiklrk v. Phirkicil/, ~ .M. iV S. .'{S.'>. 
 
 A guarantee endorsed on a note at the time of its execution in the fol- 
 lewiiig words : " Wu guarrantee the payment of the within note," does 
 not sliew a siiliicient consideration for the pKunise, the ease being within 
 the Statute of Frauds: Lorkv. Ihul, (i U. ('. O. S. •_'!».■). 
 
 Where a bill was given for the purchase of shares in a ship, wiiich siiip 
 was liurned on the morning of the day on whicli the l)ill was delivered, 
 but the hull was afterwards sold for .SoOd ; — Held, that there was not a 
 total failure of consideration : Whi/mait v. Pmk-i r, "> liuss. & (lei. 1').'). 
 
 The following have been held void for want of a suliicient consideration : 
 
 C.'s note given for the purpose of paving A.'s debt to P.. : liiinjhitm v. 
 Kiiiihiill, 17 Ind. o9(i ; s. p. Tou.'^'ij v. Tair, 1!) Ind. 'IVl. 
 
 A note given by A. to B. for a debt due by C. ujion a consideration of 
 forbearance, and upon no privity shewn between A. & C ; McO'iltiiniy v. 
 K'ifrr, 4 IJ. C. Q. B. 45U. 
 
 A note founded upon a mere moral obligation to pay money : Aiijhlin- 
 i.iak V. Banit(j, 4 Greene, (Iowa), lUG. 
 
 Sec. 27. 
 
112 
 
 I iii; ijii.i.s OF i;xriiA.N(;i'; Acr. 
 
 Sec 27. A iiotr i.'iv(ii l)y ii pfi'sdii til an (itliccr of ji luiicvdlfiit dp;,' i)ii/:itioii t'.ii- 
 
 ^ • ' liis iiiitiiitii.ii fiT, iiiiil I'oi- Ills (|iiai telly (Iiich iim u iir'IiiIht ; A'lr^/i v. /.'»■• 
 
 icti, r» llai'l). .").")(). 
 
 i\ ]ii(iiiii.--,soi y note, the only c'nnsi(Ic'rMti<in of wliicli in tlic lovi' and 
 allci'tion of tlir niaUir to tlif |)ay('(' : Smiih v. K'iliri'lij< , "Jl \'i. -.'fS. 
 
 A iiofci' yivcn ill cfiiiHiilciiitioii of a sii|i|)oscil <laini niailc liofore suit 
 iilioii HiKjh claim, when in fact no s-ucli fiaiiii <'xi.sl('(l : Snl/mni v. I'nUiiis, 
 IS Iowa, 'JSS, H. p. Ilnlh.vh v. A<il>,ini, l.'J Ala. .'fK>. 
 
 A note uivcii in ixtninis, piyahlc ;it tlui doatli of the niaUi;r, and si;,'n('il 
 by two witncssrs ; Hull v. iliiiriiril, 1 Kiel!, (S. ('.) .'{](>, 
 
 A note pill up as a fortVit to secure tli'i performance of a veih.il .sale oi 
 land : W'i'illi, ill >i V. I'limih, '1\ '{'ex. '27-. 
 
 A note i^iveii liy an lieir as a memorandum or <'videi)('e of an advanceiiu'iit 
 made to liim hy tlie ])ayee : Ihiriiiii v. W'riiili', .">■.' Mo. l.'i'J. 
 
 A note ;;i\en ill oider to olif.iin possession (jf the maker's j;oods, which 
 ■were wr(<ngfully wilhiield : W'liili \. lliiihiKin, lit I'a. .St. 14'J. 
 
 A note ^d\i'ii to tlie inother of a eliild, \\ ho h.iil l)c<.n lieaten, in eon 
 .sideratioli of her not prosecuting : Iha^l v. Si/I„ rf, Clieves, ;.S. < '. ) 177. 
 
 A note given l»y a widow to a creditor of jier deceased liusliand, for the 
 amount of his delit, where the liiisliand li ul left no est.ite or as>cts. 
 though the cieditiu' gave to the wiilow a I'eeeipteil lull, acUiiow ledgiiig 
 payment; \\'illi(iiii-< \\ .\'/(7/(//n, 10 ( liay, (Mass. ) S.'i, 
 
 A lianUiii;^ lirm advanced money to ,\. and tixdv a note for such ail\ aiice. 
 which was sicncd liy A. and his wife, who li.id no separate luopcity. 
 A clied iiisohciit, and .•ifter his death the hank ohtained a new note from 
 the widow. It licing douhtful w Ik ther the widow knew th t slii' was nut 
 lialile (Ml tile lirst note, her non-liahility was not mentioned to htr : 
 Con-anI v. J/iinh'--:, I K. .V .1. 4i:{. 
 
 - 'I'lu' considrration fur the ])roniise in hills of exchange and proiiiissoiy 
 notts to pay money, as well as the indorsement of such hills and notes, 
 unliki' the ease of other contracts, is presumed until the contrary is pinvc^d. 
 Hills and notes on their inert! production, e\cii witliiuit the words " for 
 value it!ceivei|," are juiiii'i y'f(<'/(- evidence of valuahle consideration, iioi 
 only lietwein the original parties, liut as ag.iiiist third persons. In all 
 cases will re the hill or note can lie used in evidence, either as against the 
 parties to it, or ag.dnst third persons, the same legal presumption arises 
 as to its having Imii given for value, as arises in the case of a deed under 
 seal. A hill or note, therefore, although aeeording to the general priiici 
 pies of the common law is to he considered in the light of a simple eon 
 tract, is nevertheh'ss in this rc^pi'ct entitled the privilege of a siieeialty ; 
 for it, like the contrait under seal, carries with it the eviileiice of a valii 
 ahle eoiisideratioii. This luivilege always heloiiLed to foreign hills, au^l 
 was, after siiine strug'iles, eonceded to inland hills and ])roinissory notes. 
 But it is conlineil to negotiahlc paper, and does not extend to orders not 
 jiayahle in money. '• Some of the peculiar privilegt s of hills of exdiaiiLic 
 are of a nature giving them a ])i'euliai' sanctity and obligation, and freeiiiL' 
 them from the etjuities and cross claims which may exist between the 
 original parties. 'J'hese are allowed in order to give them a ready eireiila 
 
 
m 
 
 ■I'lIK lill.I.S OF i:\(II.\N<ii: ACT. 
 
 113 
 
 tioii Mill! extensive citv 
 
 s>. 
 
 in/ on 
 
 lUll 
 
 II. h \\;i,s foiiiuilv In 111 Sec. 27. 
 
 til it ;i priiir \\aiit of cimsi liritioii wms an ciiuity iittHi'liiiiL; t 
 
 II an nVCI'cUlO 
 
 ITU: /.' 
 
 Kite ill till' liiunl.-i 111" 111 lili-r tor vali 
 
 I" 
 
 lii' /.(I mil- !■/, i:i V 
 
 ,1 (1 
 
 1/ it' (' 
 
 :\ T. 11. ISO; l)iit sui'li is not tlic liiw now ; AV 
 
 1.. 1!. (I Km. :tlf. h 
 
 cinacN of I'liii^iijii'ation or 
 
 coliMiilfi'ablf limli'i'-v 
 
 line, lii.iv 1 
 
 ly III' an inqio 
 
 itant ell iinnt in 
 
 ■asi's allcyin^ 
 
 liiul faitli oi- fiainl : J<nit^ v. <!nnh>ii. ■_' Xyy. ('as. lilCt, lint mhIi in- 
 ;iilii|ii;ii'y oi I'onsiiiiT.il ion niiiht lie ilistinj,'iiisli('ii troin a partial alisriirc oi' 
 faijiui' of I'oiisiclnation, or a pai't pavnicnt <in ai'i'oimt, or ;i liniitccl 
 a.jv.iiiir iiiailc on ii liiil or iioti' iili'ii^'C'il or (li'[i()!jitt'(.l us siicuiity for xui'li 
 
 Il,I.l'S'rt{ATIO.N.-<. 
 
 Altlioiiirh notes and iii'lor.scim'nts. a.s sinqilt' contraitx, r('(|uiri' a con- 
 ■ illation, it lias long limi lu'M that tlicy import a coii^iili'ration, /ninid 
 I'ii. so as to tlirou I lie iniiilin on tln' otiur siili' to sliow tlir want of a 
 
 ilr'lati 
 
 M.-Ariln 
 
 Mr/. ••>(/, ti .lolli'S (N. ('.) -IT."). 
 
 w 
 
 latl 
 
 ii'r navi' his iiou- in (■oiisiiloratioii of thcpayi'i' niai'iyiiiy 
 
 iiuhtcr, wliK'li iiial liaLTi' \\a: 
 
 hail in f ii't, a iid li 
 
 il li 
 
 iliii: 
 
 llclil, that till' iiiin'riaiic in fact was a siitliiiciit iiiii>iili ration : 11 (//,/ 
 
 /', 
 
 4 T. It. 4(iS. 
 
 On a tri'aty of iiiariia'_'i' a itroiiiissoi y note um.-. ;^ivrii in i'oii>iili rat ion o 
 the iiiai riairi'. wliifli \\ as aftcrw mis soh ninizcil, anil an aition was siili 
 
 i|iU'iitly liiDiight liy tl 
 
 ir.si'i' a.:.iinst tin- in lUi'isof ihr iioti 
 
 II. 
 
 that lis till' inai'l'iairt'. tin roiisidi'i'iitioii tor the iiotr. loiilil not Im' iiikIoiic, 
 
 It was not coiiip 'ti'iit to till' ill iki'is to avnid the iiotr ii|ioii t In' ukuim 
 
 1 of 
 
 liaiiil iir.ictict'd iliiriiiu tlir niairiau'i' tirats': Ib^'iiin \. Ihahi. II I r. (' 
 1,. U.. I l!»: luvi'isinu In li. ( '. !.. II.. i;. " ' 
 
 A notr proniisinj,' t<> pay tln' < him-h SmiitN of the dmriM' oi Toronto 
 III ln'.inr, t'.-iU. \\ itii intrrtst, towards i lovnlini: a tiiiiil tor tia- siippoit ol' 
 a l)islio[) o 
 
 if the wrstcri 
 
 I iliocfsc ot ( 'aii.ida. w 
 
 ho should l.c ai 
 
 |iiiisnaiii.'c (it an I'li'itioii \>\ t 
 iiiiiiii a siiliii'ii'iit coiisidc r.ition 
 
 pollitl'll 111 
 
 11- (•!( rjjv aim l;iit \' 
 
 niiiiiiihil \. !>iiiii 
 
 Ih 
 
 llilil, to III' 'oiindi'd 
 
 //, hi V . c, (.>. 11. :i7i. 
 
 t is a L'ood di'fi'lU'L' to an artinii on a n 
 
 d-.(r that siuli note was n 
 
 iti' liy till' p 
 
 -t th. 
 
 iiaili' tor a .sincia 
 
 thi' p 
 
 l'"iT 
 
 ivi'i' should take lare ot it lor the maker, and slioiih! not ii(L;otiati 
 
 lyic ,'ii.'.'iin 
 iiiK', to wit, that 
 1 
 
 ir |iart w ith it to any other person, and lliit there ne\ir w.'is any other 
 xaliie or eoiisideratioii for the imte : ]\"<yiiiir \. H '/-//"/'. "J'J I . ('. (^K IS. 
 -11(1. 
 
 \ note was made and delivered to |)1 lintitl' in payment of I'flO hats 'uid 
 
 t lidaiit. whieh.it tin' time of aetioii 
 nee, there lieile' no reiiue>t for tin ir 
 
 to 1. 
 
 'red liv pi liiltlir to lii'f 
 
 irniaiiieil iiinlehverei 
 
 leli 
 
 ili'll\'er\' 
 
 .1 lllh 
 
 Hell 
 li 
 
 rsoii V. ./( iniuiiji 
 
 l.'f. 
 
 r. ('. (). I!. 4'. 
 
 is plain aiitliority that even as Intuiiii t! 
 
 ic onullial 
 
 lai'ties. w here 
 
 • '111' hiiys goods worth more than SKI, and ;;ivi's his note for theiii. In,' eaii- 
 iiot refuse 'o take the uoiid.s, .ind then repildi.ite the note, liei'Milse of tl'.o 
 lioods not having lieen delivered, seek to deteat the eontract li\' his own 
 art or default, and then ri'innliate the note, tieeaiise the eon raet had 
 faded : I'cr Tlionipison, J., in .\hli,t,ish v. MrL,,»l, (i I'.liss. & <iel. I.'U. 
 
 ■ It was fori', .'I'ly suppo.'^ed to he uncertain how far an anteeedent deht 
 was a .suflieient eoiisideration for a nogotiahle seeiirity payalile on demand; 
 alilioiigh it wiis clear that a pre-u.xisting debt due to the transferee of a 
 
14 
 
 Till-: lIll.l.S Ol' K\CIIAN(JK ACT. 
 
 Sec 27. I'ill, I'lititlcd him til nil tlu' li^liLsof a liolilvr for viiliic, a jirotci'tioii wliiih 
 WiiH giviii to siit'ti a liulilfi' DM tliu ;;i'iiuii(l.s of cfiiiiiiit'rcial pdlicy niily, iiinl 
 ill oi'ik'i' to I'tiVdur tliu uiirustiii'ti'd iihi;, as currency, of mgoti.ililc paiicr. 
 Itiit it is now settli'il that llii' K'^'ii'K "' '' ni'gotialih! Hi'curity |iayal>lu on 
 (Icnianil lor an aiitriciU'nt iK'lit is a conilitiunal {laynii'iit of the \y,int (hit- 
 (k'ht, thi' loiiilitiun lit in;; that tl.u (lol)t rfvixcs if thu .sci'iiiity Im not 
 realizril : Ciiriii v. Mi-m, I,. K. 10 I'lx. l.'t."!. Where tlii're is a precedent 
 duty wiiieh would cii^ati' a sullicient legal or ei|uitalile right, if there had 
 heeii an express promise at the time, oi" where there is a precident eon 
 fliduration, which is capaiih' of lieing enfurreil, and is not extingiiisiied at 
 
 th 
 
 e o|)tioii (if thi' party, fouii 
 
 ded 
 
 ipon 
 
 ime liar or defence which tht: law 
 
 justili( 
 
 lutdocs not rcipnrc inni to a.-Mit, there an express pinniise «ill 
 
 create or revive a Jusl cause of action. 
 
 W 
 
 leie a man is undcl' a legal oi 
 
 llitali 
 
 iligation to pay, the law implies a prondse though mme 
 
 w; 
 
 /■irHiiri. a legal or ec|uitalile '//(/// 
 
 lerc a man is ui 
 
 sullicieiit 
 iiUr a m(>ral 
 
 ever actually made. 
 
 cousidci ' 'ion lor an actual promi>e. W 
 oliligatioM which no t'ourt of eipiity or law can entorce, and /iminisi.^, the 
 honesty and rectitude of the thing is a consideration ; as if a man promises 
 to pay a just debt, the I'ccovery of which is harred Ity tin; Statute of 
 Liuutations. Or if a mat: after he conn/s of ag(! promises t<i pay a meri- 
 torious delit contracted during his minority though not for necessaries ; 
 or if a hanlii'upt, in allluent circumstaiu'ea after his certificate, proniisea tti 
 pay the whole of his dehts; or if a nuin promiHcs to peiform a sccrt't truHt, 
 or a trust void for want of a writing liy the Statute of Frauds. In such 
 
 itl 
 
 lud many other inst.incc> 
 
 tl 
 
 lOU 
 
 di til 
 
 c promise gives a compulsory remeily. 
 
 \> licit llicie was nunc 
 
 licl'( 
 
 re cither at law or in eipiity, yet as the promise 
 
 is diily til do wli.it ail honest Man ought to do, the licscif coiiscicucc upon 
 an upright miml arc a siillicieut consideration : " Pi r Lord Manstield, 
 
 C J., in llturk, 
 
 Siutiidi rs, 1 L'owp. '2!Mh 
 
 li,i.r.sTi;.vTi(iNs, 
 
 A pre-existing delit is a godd ciiusidenitiou in \\ hole or in part for a 
 note or hill : (lumli rhmn v JJ K/rhi.^nn, 5 U. ('. ( '. 1'. '2^\, 
 
 'I'liere i.s no distinction as regards consideration, lietwi'en a uoti' given 
 for a pre-existing debt and for a new tuusideralion : Kraiis v. Moiii y, '_M 
 
 u. c. (,). i;. -Ai. 
 
 A note was given tiy defendant, secretary of an insurance! coni]iaiiy, for 
 a loss, the policy having hccn marked " cancelled." and left in the posses 
 sioii of the company, ami the note was not payable until three d;iys after 
 the loss would be payable by the jxilicy ; —Held, a sutHcient consideration ; 
 Armour v. (!a(,.-<, 8U. C. C. \\ 54.S. 
 
 A debt due to a bankrupt estate, is a good consideration for notes given 
 to the trustees and assignees of the estate : (l<iti'f v. Crookx, l)ra. ficp. 
 4.-)9. 
 
 A debt due by a third party, liut not yet payable, may form a valid 
 consideration for a note given as collateral security for such debt : Dicb.ii 
 son V. Clemow, 7 U. C. Q. B. 421. 
 
■^ 
 
 Tin: nii.i.s oi' i;\(iiANui'; ait. 
 
 II 
 
 A ii'itc j^ivtii liy fi 111:111 fur hi-, iltliy to I'lillil ;i |iriimi>f nf iiiiiri'i.i;^!', .•ii»il HeC- 27- 
 toi' liipiist;li()li| s('i\ ices iciidircil 111 liiiii liy tlio Winniiii >lmiii^' tlu' fiiK'^H'' —■"""' 
 iii"iit, is Vikliil, iiiit\vitlitt;iiiiliii>{ that otltor i'tNiM<in.s, in iulilitinri lu tlicHC, 
 iiiiiy li iv(> itiiliii't'il hiiii to K'ivt! till! iioti' : rf<rtilt v. Wiinl, III Aili'ii 
 (MiiHs. ) •liYX Hut ni'n Hiitjmunil v. St/ZirL-, KM oilli. HO. 
 
 'I'l 
 
 U' iiRTf I'iict of lorlii'ivi'iiuci! Widilil not lie I), ciinsiilfr.itioii t 
 
 .l>'l>t 
 
 Imt ,'i iiiiiiliiii; |ti(iiiii-*c td I'di'liciii', or nu fu'tiiivl l'iirlnMiMiii;c at ;i rif|Uf>t 
 (xpri'.s.s III' iiii|ilit'il. Wdiilcj Ik; h ;;ii()il ( oii.sidcr.itiDn tor ii jn'oiiiitiHory iiotr : 
 r/M(,< V. Itniihr, I!) (,l. 1;. I). ;Ui. 
 
 A note ;.'iv(ii t<i a i'(iiiimitt<'u iipiMiiiit'il tip roiicxc siill'i tith frmii a litf, 
 
 lli'lliy II M 
 
 //.I 
 
 '7"''i 
 
 |iri,'ial 
 I't La, 
 
 I'liiitrai't \vi 
 
 All. •-»;{:«, 
 
 111 HiiL'li (;(>liillliltut', JH viiliil : / 
 
 liii/Dii ■'^iir'i V . 
 
 'I'liis t'lausi' 111 ly apply ti) tlu; flas.s of sccnritit s knowi 
 
 an at'coiiiiuiiii.'i 
 
 tiuii liilN or iKilis tiMiisfi Tii'd to a liiili|t;r for sali 
 
 ir ti 
 
 l>ill 
 
 or iiott! ill 
 
 the 
 
 liarnl.s of a iioldi'i', wlio li.is iiut liiiiisclf given value for it, Imt lias 
 
 .lit in 
 
 wli 
 
 III IS a lioliler lor valiu 
 
 il who has all tiie liyhts 
 
 ot a 
 
 lioiuer 111 due eouisi 
 
 The holder (if Hiieii a liill or iiiito lias the 
 rights of siirii liiilder ill diK! course against all pai ties to the Kill or note, 
 e\i('[it the jierson from wiioin he may have received it. See note 7, p. I'-'"). 
 
 Il.l.lSTKATIo.N'S. 
 
 Valiio arising at aiiv tiiuc during the i:nrreney of a note, i.s sntlicieitl : 
 
 /i7i(/.'i V. ir.(/«/i, •_".» I'.' c. i). 1;. Jll. 
 
 A nu'inher of a joint stock association, not incorporated, lending a .-uin 
 ' money o: ♦: of the ioint fund to anotiicr inenilier and taUiii'' from liini a 
 
 note piyahle to himself, individually, for re payment, is i siilliiient con 
 sidcration, notwitlistainling th.it liie funds were advanced from llic com 
 
 moll stock : C 
 
 oiih r V. 
 
 Tlu 
 
 iii/i-<i>ii, 
 
 1 L^ C. (). S. •_',-)(). 
 
 \\'hei'e a stiickiioldi'r in a joint sto 'k comiiany had 'dveii iintes for hi 
 
 h 
 nditioiis 
 
 1' . 
 
 stuck, wilieh he afterwards forfeited liy not coinplying with tlie eo 
 
 of tile association : — Held, that he could not set up such a forfeituri' as a 
 
 ilefenco to an action on the notes : (i/as.-ii'oi-il v. Mi-Fniil, IJ. ( '. T. T. '.\ Ifi, 
 
 i Vict. 
 
 !•■ /' 
 
 li 
 
 Jiaidv. JIoiUlijii, 4() N. H. 114; /iii,/:'.i r,t.-; 
 
 y; c'i/(/,i(/ iiitiit, us'.io. 
 
 A. indorsed a note for Sl'J.SO, for the purpose of eiialiling the maker to 
 
 oiitain. as an a. 
 
 Iditi 
 
 il advance, the diiti 
 
 ■e lietween that sum and 
 
 loan o 
 
 f >:!)IS, which had liee 
 
 dvanced to him liefore tl 
 
 le ni.ikiiii' 
 
 kii 
 
 if th 
 
 note 
 
 the additional advance, was, howiAer, not made 
 
 Held, that A. was not lialile as an 
 
 di 
 
 ■r for the S'JIS on''inall\ 
 
 laned : (Irrtnwood v. J'trri/, HI U. ('. ( '. 1'. 4l).'i. 
 
 Whore the remitter of a foreign bill has received credit from ti 
 rawer, and the payee gives the remitter full consideration for t 
 It the remitter does not pay the drawer, the payee may mainlaiu his 
 
 liU, 
 
 action a''ainst the drawer, although the drawer has never received 
 
 Clin; 
 
 'ider.ition : Mimrot v. liordier, S C B. S(i2. 
 
 H. W. & C( 
 
 iierican m 
 
 crehants, wore indehted to 1'. it (' 
 
 if 
 
 Paris, and C. it Co., of Koiulon, and being pressed for payment by 1'. iV, 
 • 'o., remitted funds to C. & Co., which paid ami overjiaid them, with a 
 <lirection to remit the liaUiiiee to I'. & Co. in L'ari.s. C it Co. then bought 
 
 in London a bill on I'aris, drawn by M. Ik Co. to the order of C. & (Jo. to 
 be romittod at once to Paris to be paid for by C. & Co. 011 the next 
 
TIG 
 
 TiiK isii.i.sdF i:X( (lANcr: act. 
 
 Sec. 27- foreign post (lay. Tlic liill w.is so icinittcd, Imt iKfoic the luxt forcijiii 
 
 '^~' ])ost (lay ('. i^ C'o. fiiilcil, and tlicn'n]i(in M. & Co. ictiisid ti' jiay the liill. 
 
 I'. & Co. Miic aft( iwiinl^ |)ai(l liy II. \V. &■ Co. in full. In an aition hy 
 
 1'. & Co. on hdialt of II. W. & C 
 
 ain^t M. & Co. on tlif liill ; IliM, 
 
 tliat I'. >V C 
 
 ■re entitled to lecover as holders for vah 
 
 tl»' Mil ; or 
 
 if siiin;,' for II. W. it Co., C. & Co. \vere only eoi resjxiiideiits of \i. W 
 & Co., 1o remit tlie Kill, and were not tlieir a;;ents to 
 
 for th 
 
 price of the 
 
 hill : /'. 
 
 Mi 
 
 K. cV I! 
 
 ( orn nieiehants in ( 'alih 
 ill I'iii'dand. for 
 
 ornia ayreei 
 
 \\ hieh he was t< 
 
 I to .sell earj 
 1 
 
 I'l 
 
 Mt 
 
 ..f \vl 
 
 je till ir credit 
 
 liir 
 
 IlKi 
 
 leat to a inillei 
 
 give lii.s acceptance again 
 
 <t \\\v I 
 
 III 
 
 if 
 
 liulinL'. 'The hill of lading Mas made out in .six ])arts. 'I'liice ) arts, with 
 oorres|iondiiig hills of exchange drav* ii on the miUer. wfie iii<loi>ed hy the 
 
 corn me 
 
 lehant.s. and tiansferred to aCalifornian liaiik f 
 
 or value, anil were 
 
 with the hill.s of lading annexed. ac(!(i 'ed hv the miller. One indorsed 
 part of the hill of lading was inadvei laiitly senL hy the corn dialers to the 
 
 m 
 
 iller, and was traiisteried hy liini to an Kuglisli hank for \ali 
 
 '111 
 
 bills of exchange were not uiit hy the milliiv;- - Held, that the Kngli.-^h 
 
 bank. 
 
 lid 
 
 net. iiiide 
 
 tl 
 
 le circnm.><tances, cl.iiin as 
 
 hoi. 
 
 th 
 
 lading without notice : (lilhi d v. (iiiit/iKni. L. K. S Ch. Hi 
 
 1" 
 
 'I'll 
 it of 
 
 e (llseoun 
 
 t of a hill must he distin-riiished from tin 
 
 ill 
 
 irity. 
 
 A 
 
 discounter is a huMer 
 
 tor fi 
 
 .,'e or (Ic 
 lie. The 
 
 positK'ii of a pledgee (or mortgagee) is 
 
 th 
 
 If h 
 
 le sue the acceptor or 
 
 iiHlorsers. he sui s 
 
 as tiu>tee for the plecl^or. ami must aecoiint to liiin f< 
 
 the dilleiinci hitwiui the aiiMiinf he has a<lvan 
 
 with interest an 
 
 co.sts 
 
 and the amount recovucd hy him on tiie hill. If the pledgor could 
 
 have sued on the hill, the [ilcdgee can rccovir the 
 
 le aiiKriint due on 
 
 the bill. Ai 
 
 if the 1 
 
 hohk 
 
 er 111 i]uv ( diiisi'. 
 
 atl'ectcd li\ r.iiy defect of title in the pledgor 
 
 d ;{Si. Lik 
 
 ,t h. 
 
 e evei\ 
 
 .1.1 
 
 otli.-r holder lii due 
 
 course, till' pledgee of a hill must 
 
 liliL'C 
 
 with reference t.> it. having re'.'ar.l to the nature of the security pk 
 
 if tl 
 
 le hohli'l' 
 
 iUi.l the diiti 
 
 wi.so lie ma\, tlir.iugh ir 
 
 if hills 
 
 or imt.'s as .leliii 
 
 bv the Act. .)ther 
 
 ;t'iici', rel.'ase the [larties to the hill, 
 beeotne lesponsihle to the plc.lg.ir for any loss sii.'-taiiic.l by his n 
 
 gem. 
 
 illil. ill the ah 
 bilks receiveil 
 
 .\ hanker s lien i-- an iinplieil ple.liie of his cnstomer'.s securities : 
 e of .111 agrceiiK'nt t.i the c.nitrarv, he has a li. ii on all 
 
 r.>m his .iistoiiier in the 
 
 ncss 
 
 aii\' liaian.'e 
 
 that 
 
 oidinaiy e.iuise o 
 IV be .lue from sinh cust.iliur. 
 
 f hank ill.' 1 
 
 ii.'-i- 
 
 / 
 
 iiDlii /lien . 
 
 wliei bill is negotiated fiom one per.-on to another, it is deemed to lia\f 
 been wholly transferred to iiini,aii.l not to have been pie. Ig.d or dep.isite.l 
 as collateral security : Chulnii r 
 
 niiN 
 
 .^ce further, note f). 
 
 p. 'Zo. 
 
 Ii 
 
 STK.XTI.iNS. 
 
 The .lefeiiilnnts made a note for >f'2()() to one .M., to assist M., in retiring 
 
 pajier in 
 
 which till' di f. nilants w ere interested. .M. discouiitt d his own 
 
 note for J^L'tlO with tin' bank, deims.ting with them the defin.lants' not. 
 
 dlateial. \V 
 
 M.' 
 
 ite fell .lue. the defeii. hints' n. 
 
 tel 
 
 i.'liii' 
 
 th 
 
 over.lue, 
 
 iM 
 
 V' 
 
 d iSi^r 
 
 :ave a rem w al 
 
 f. 
 
 r J:?! ,.). ieaviiii' deten.laiit 
 
 ;iote with the bank ;- Held, th.it as the note was transferred to the 1 
 
 lalil 
 
 as seeliritv 
 
 tv f. 
 
 •Y the oi 
 
 ijjilial debt. 
 
 it for M.'s note spieially, tl 
 
 defeii.lants r.iuained liable : Canni/idn Inuik of Connnore ". ]\ uodward, 
 8 Ajip. U. ;{47. 
 
T}1K UILLSOF KXCHANGI-; M'l\ 
 
 117 
 
 5, p. -.). 
 
 WluTo (nTtiiiii scc'-itii's hid Ixrii assi'.'iuil .is cnlliitoi'al tor tlic ])a\ rnciit SeC- 27- 
 
 ((I a ]iroiniss(ii'y iioi it' Sl.OOO, wliicli luitr liail hccii |iiii'lly (laiil, and ii — . ' 
 
 IK'W note i,MV '11, the lioMir <if the notu is fntit.h'(l tii retain siieii seriirities 
 until tliu wlmh^ aniniiut of the oiininal noti; i.s (liseliai';/eil liy |ia\ iiieiit : 
 ir;/.//v. Lr,hiiti-I, lOOntl'. I!. ISL». 
 
 One M. ni I le a note i):iyal»hj to T. oi' order, for .^l.OOll. wiiieh was dis- 
 counted hy the liink for T. Aft'rwai'ds a note for SI..")!);) made hy \V. 
 payable to '1'., and indorsed iiy M. for T. .s aecjoninindation, \v,is handed 
 to tlio I) ink liy T. as eoUateral secni'ity for tlu' .SJ.UCl) note, and the hank 
 also advanei.'d on it Sl.CDO to T. Tliis note, wlieii it fell due was retired 
 hy another note for §1 ,")l)l), made liy W'., payable to 'I', and indorsed by 
 '!'. and iiy M. to the batik, and was i,dven for the same jiurpose as the 
 or. 'vious ^>1, .")()') note. 'i'iie bank reeeived .■>) ,•_•()(! from T. on ai'eount of 
 the -SI. 000 note, and the plaiutill', who was oni' of the iiidorsers on that 
 note, paid tlie lialanee. In an a<'tion on this renewal note by the plaintill 
 against W. it M.:— Hild, that iu! was eiitith'd to reeoviM' ; for, 1. He was 
 till- holder of the note' : '_'. Tiii; note bein.; deposited with the bank as 
 collateral security for the .'r'i.dOO note, and not merely for the -SI ,()'•() 
 ad\ anced on it, tiie b iidi held it for the full amount ; ;{. If the note eould 
 lint be said, when taken, to bo a security for value liecaiise the .Sl,(t()(t note 
 li.id not then matured, it became so wlieii the 1 itter note fidl due, and 
 \ahie arising' at ar.v time duriiii; the curreiiey of a, note is suliii/ient : 
 
 i','nh V. ]r,ii.<i,, -I'Xv. ('. (.). i;. .-)U. 
 
 Where a bill is reniilt-.^d to another, indorse 1 merely to eiiabli' tiie party 
 receiving it to raise money to meet future advaiiees, it is w bile retained 
 lor sucii advances a mere deposit, applicaiile to the demands of thi' 
 
 leiiiitter, but if such remitter negotiates it. In nstitutcs the party with 
 
 wiiom it is ncLtotiated a holder. Indorsement is /trinKt I'arl,', evidence of 
 the discount of a bill, lint tic agreement of mere deposit may be shewn : 
 
 /■:.■/, II, -fr Tii:,l„',l. I'.l Ves. -l-l'.). 
 
 \ mere discount of a bill, without tiie imlor-scment of the jiarty who 
 receives the money, ibies not give the holder of the bill any claim against 
 sn 'h ])arty : Er innic /''ili'ii-i, '2 ^'dx. 171. 
 
 llanUi'ls may pledi;e bills deposited \\ itli them by a customer, though 
 sii.h customer is a crtiditor and not a debtoi' ; and the parties to \\ lioin the 
 liills are pledged, may hold them if tliey are uiiacipiainted with that 
 eircun'staiice : ('(il/in.-t v. Murh'ii, I \>. & W (US. 
 
 And the bank may lu'gotiati' them to such an extent as the necessary 
 d( mands of their customer may require, w ithout his express anliiority : 
 riimniiMiH v. <!ili<. .'{ |). A: K. ~'X\. 
 
 A promissory note given i>y luiiicipd and surety fonidelinite sum ]>ay 
 alile on a fixed day, is presiinied to be given in consideiMtion of an ad 
 \aiice at the date' of the note, and if the payee asserts as u'^aiiist the 
 ^lll•ety that the note was to seruri; the b il iiice of an account due by the 
 |iliiieip:d to the pavee. the lillldcli ol pmuf Hes on the pa\ ee : /,'. /Ini/.-:. 
 
 b. i;. 1(1 Kci. -U)7. ' 
 
 Tile holder of pioinissoiy notes, tr.iiisferreii iiy 1 he payee as c'ollateri'l 
 security aiiainst ■' fiituie lialiilitN' on the liolders |iart for the pasce. can 
 collect the note- .ic m itiirity before that liability arises ; ami tiie p lyee has 
 no control over them so as to enlarge or vary the maker's lialiiltv : /i'dts 
 \. Ti/<oi,. v.) r. •'. ('. I'. •_»!)[. 
 
 \\ hci'c promi-snry notes wivr yiveii to ,a cre.litor by his ilebtor as 
 collateral seeni-ity for the delit, unless the diditor sutl'el'S liy tile t Uiiiliess 
 lO' laches of his creditor in eollectiiii: such iioti's, he is not dainnilieil ; ami 
 it lie is demnitiecl, tlien slleh debtor is rclei'scd to the extent of the loss 
 caiiscil by the creditor's laclies : l,'i/'iii v. .\/<-('oiiiii/l, IS Out. il. 4(J!». 
 
IS 
 
 THE RTI.T.S OF KXrilAXGE ACT. 
 
 Src- 28. **8. An acooninKxIntion party to a 1)111 is a person wlio 
 A.r(,niiModa- lias .si<,fii("(l fi liill as (Irawci- acceptor oi- indorscr, witliont 
 
 I mil piirty ~ ' 
 
 "Icfini'd. 
 
 Iinn.Ait.s 28 
 
 Iiid Act, 
 
 Ks. 43 A :<-2. 
 
 receiving value thei-efor, and for the purpose of lending his 
 nani(^ to some other person : • 
 
 i!1ioMo'ti^r ~' ■'^" '''t^t!f>"iiiif'*l'iti'*i» pjii'ty is liahh^ on tlie hill to a 
 value. holder for value ; and it is inunaterial whether, when sueli 
 
 liolder toi)k the hill, he knew such pai'Ly to he an aceoiii- 
 
 modation [)arty or not. - 
 
 ' 'I'lir ()l)joct of ail iiccoiiiiiKulatioii liill is to ciialilc tlif jiaitics tliiTito, 
 liy a sal(: or other iu'i,'otiatioii thereof, to ohtaiii a flee eredit ami eireiilatiou 
 of .sueh liill. 'j'lie jiartie-s to eveiy aeeomiiiod itioii hill hold theiiiselve.-> 
 out to the jiiililie, hy their .siLJiiatures, to he ah.soliitely hound to every per- 
 .sou who shall take the same f(U' value, to the same extent as if that value 
 were iieisonally advaneed to themselves, oi' on their own aceount, and at 
 thuir own request : Story mi I'tills, s. liH. In conunon language, a hill 
 aceepted or indorsi.'d without any eousideration to the party making him- 
 .self liahle on the i)il], is ealled an accommodation hill ; l>ut, in strictness, 
 an accommodation hill is not merely a hill accejited or indorsed without 
 value ruc(,'ived liy *^he acceptor or indorser. hut a hill accepted or indorsed 
 without value liy the acceptor or indoi'ser, to arrouimoi/nte the drawer, 
 (ji- some <ither jiarty, /. '.. that the party accommodated may laise some 
 nu>ney upon it, or othirw ise make use of it. Tiiis distinction is of im])oi't- 
 ance ; for a party acci'|itintj; a hill merely without consideration (as if, 
 for example, he does not know the state of accounts hetween himself 
 and thedrawei), and is afterwards sued on that hill, he cannot chargi' the 
 drawer w itii the costs of defi'uding tiie action ; whereas the acceiitoi' of 
 an accoinoda, ion hill, ])ro|ii'rly so called, who is eom]iellid hy an action 
 to pay it, ha; a claim uiion the ilrawcr fo/ all the expiuises of the 
 action: /li//is on /lil/.t, ',V2ii. Wy an accommodation hill or note the 
 accei)tor of the hill, or maker of the note, hecomes the ))riniipal dehtor 
 according to the form of the instrument : hut whether a paity is in that 
 capacity, or is an accommodatior. indorser, he is a surety for the person 
 who ohtains value for the hill or note ; and it is the iluty of such person 
 to pay the hill or note at maturity. Where there is an account hetween 
 the parties, and hills are ai'ei'pti'<l. tho.^e are not strictly accommodation 
 hills: Oi'iriilu/ FiiKiiK'idl < '(ir/ioroliiiii v. (Jriniii/, I,. R. 7 t'h. 14();/. Sec 
 also s. c, L. Ik. 7 11. I'. ;US, Presentment for ])ayment is dispensed 
 s ith where the aceiunmodati"n iiill or note is accepted or madi' toi' the 
 benefit of the indorser : s. ^(i cJ) (</) : as also notice of dishonor : s. ."0 (2) 
 ((/) ; and as a eoiisei|Ut nee it may he inferred that protest is also ilis|iensed 
 with : s. ."il (!M. An accoiMmoilation hiil when paid hy the paityaccom- 
 niocl ted is discharged : s. oil {'.]). liy s. ,'{(1 i'2). an overdue hill can only 
 he negtitiatcd stihject to any defect of title allecting it at nuiturity ; and 
 
THK r.IM.S OK KXCIIAXOK ACT. 
 
 1 1 n 
 
 it li.is Itocn liclil tliat if iiii acconimoiliition liili !>(■ iicj^dtiatcd w lii'ii over- SeC- 28. 
 iliR', till' liiilder ciiiinot rccoxiT, for tlic liill is in tt'iiiis a cinlit for a 
 liiiiitt'il tiiiic, ami to lu'i/otiatc it aftiT tiiat time is a lircarli of f.iit 
 
 Chr 
 
 Dn 
 
 41 N. V. --'T'.K Wiuiv ai 
 
 I : 
 1 acroiiiniodatioii liiii is takni l>v 
 
 a jK.'i-sdii aftiT it lias lucii ilislionorod. inasmiudi a.s tlic diawci- rainiot 
 
 fcovof. luitliiT can the lioldcr from surh iirawtT do so : /o Oi 
 
 '</, 
 
 ii iiriici/ v 
 
 lO»., J.. K. (i K(i. .-{44 
 
 li.i.rsTKAriuNs. 
 
 An ac'oomimidation hill is not issued until it is in the hands of sonic |n'r 
 son who is entitled to treat it as a se/nrity availahle in law: />iiir„, s y. 
 /I'lilKtrdiitii, T) 1>. it A. (174. 
 
 An aeconiniodation acceptor of a hill of exchanye. is a siiretx . as to the 
 driiwer, hut a jirineipal as tf) the holdei, iilthonnh the holder knew him 
 to he an aeconiniodation acceptor: Hank nf '/'(i/'nufi, y, II mil' r, A lli>sw. 
 
 (\. Y ) (i4(;. 
 
 Aeconiniodation iiidorserx. after thr note on \\ liich thev were Hi 
 
 had 
 
 matured, may ohtain a relief in e(|uiry agnnst the holder and maker t( 
 enforce payment hy the latter; and the niakiM' will he or<leicd to pay tht 
 costs hoth of the ]ilaiiitill' and of the holder of the note ; ' 'inniiinili'i in v. 
 Lij^i' r. \'A < irant .">7"). 
 
 Till' maker of a note hciiig' indchteil to tlie ]iayee, procured A. ti 
 indorse it as surety to the jiayee, w ho had previously ind 
 
 d ,lfte 
 
 erwarils " without recourse 
 
 'II 
 
 le note was siil 
 
 orseij It III 
 >y the i; 
 
 l>hi 
 
 lintifl' 
 
 hehalf of tlio payee; — Held, that the plaintitl was entitled to n 
 aiiist A : Smilli v. I!irhaiil'<t,n. K; V . ('. ('. 1'. •_M(». 
 
 Where a einporation having a chdil to jiay, raiscil nioiiry upon an 
 ■roinmodatioii note of an individual, and ap]ilied the iiKuny to tiie pay- 
 
 niniodation maker is entitled to relief aif liiist 
 
 t of the <lel)t, th 
 
 men 
 
 tie (MrporatHiu 
 
 o acco 
 
 And if the m.iker had li 
 
 mindled to ]iay the delit 
 
 hr woulil lie entitled to stuid in tlii' jihice of the corporation ei-editor 
 Ihi.uliaiii V. I'( >< rliorniif/h. S < irant ."^liti. 
 
 1>. imlor.' 
 
 )U'iiinissorv iiotr for tin 
 
 ai'i'omiiioilatiiui o 
 
 hiti 
 
 if \\'.. w ho d 
 
 is- 
 
 imtc<l it, and gave |). a niortu'i''e c)n I'ertain laud to iiidemnifN' him 
 
 ig liiist his liahility as indorser on llu' iioti 
 
 W. ilurinu' t 
 
 le currciHS of 
 
 the note ahseoudeil. after ohtaining fi'iuii M. hy false pretemes a (dn ip 
 
 or a lar'_'e sum 
 
 which Ir 
 
 ^hed. 
 
 :ave 11 u't ot tile iirocei 
 
 ds to I), ti 
 
 the note, wliiidi I >. did hclore matiintv. W. tol;i I >. tint h 
 
 u''it the nio 
 
 licv fioili M. with whom he h nl had dial 
 
 as 1 1, kiiiw , lint 
 
 . hid no notice of any wrong doing in eonnectioii witii the UMiify ; 
 rid, that the mortgage ceased to lie an iniMinihr;niee on tic l.ind w hen I Ic 
 ite was retired ; and that M. could not hillow his nciiicy into thr note 
 •Id hv I)., iinr the security held hy him : ■/.(.■/,>. ./.r./-. 'id Out. 1!. I: 
 
 A I 
 
 47ii. 
 
 lilt aiiv sill 
 
 di acioiiunodatioii 
 
 I pa.itv Inin- nii'i-cK- a --iiri'tv. miv 
 
 ii'leased hy the holder giving time to the piiinipal delitnr on sm li hill or 
 note. The surety has the right as soon as his ohli'_'atioii to pay li.is hccome 
 disohitp to he exonerated liy his ]irincipal. And where the jirimipid 
 delitor has a s.'ood defence at law or in eipiity airainst tin' eicditor. the 
 surety has also a light to set up a similar defenci' : 111 c/ii n-'ii.^ 
 
 L 
 
 \i. ', V. V. TtX Much 
 
 I contusion often arises tioin a coninion practice 
 
IJO 
 
 TlIK lUi.I.S OF KX.(niAX(iE ACT. 
 
 Sec 28. ill tin's conntry of taking' notes to a biuik for (li.scouiit ; not, as in tlic 
 ' proiici- cruirso cpf husiiii'ss, from tlit; party whose name a[ij)ears last thereon 
 
 as iiiiloiscr, anil w lio is legally hidil to he the hoMer uniler ]irior ])ai'tie.s, 
 hut taking them t'loin tin' njaker, who hi'ings them to the bank with one 
 oi' two names on thi- hac-k as inclorsers, and tries to have them iliscounted. 
 'I'he e\|iei'ieni't; of years has proved too clearly that persons w ill always 
 he ready to Ixiriow miimy upon any terms, and afterwards to refuse pay- 
 ment on any ground, w itii or without merits, that ingenuity may suggest : 
 /•'•/• llagarty, J., in lUiiih i>j' Monlnal v. /,'>,/„,, Ids, 'i,") I'. ('. (,). I!. ;{(il. 
 As to the I'lghrs and I'ipiities of aeeommodation parties. /;^/' ;• .vc, a.s eo- 
 KUl'eties, see note to s. ."ill |,'{) /'o.v/. 
 
 Ii,Msri;ATioNs. 
 
 Alllioiigh the holder of a lull h.id noti'C wlii'U he ti^nk it. tiiat the 
 aeet'|)t()r iuid only acee))tiil it for arc(inini(i<lal ion of the drawer, y<'t the 
 aeee|)tor is hound to |)iy it, and ihitlnng ran discli iiL.'e inm hut payment, 
 or a release ; liiiid: nf Ir^'mml v. Ihnsj'ord, (J how 'I'M. 
 
 In an aetion hy the imlorsee against the aeeeptor, it is eompetent to the 
 aeeeptor to shew that the aeeeptance was for tlie aeeoinmodaticm of the 
 indorsee, and that he has reeeived no eonsideration from tlie Irawer. 
 and that it was airreed tiiat the hill, when due, should he taken up hy 
 sueh iuciorsee : 'l7i(i/iijiM>ii v. Cluhby, 1 M. & \V. '21-. 
 
 .\ note was gi\-en hy .v. fur l';{0 foi' the aeeonnninlation of tlie )iayee, 
 hut the hiilder advaneed only C'JO Ids,, to seenre w hieh it was tran>ferred 
 to him. Tin liolder claimed that the sum a<lvaneed was to he paid at a 
 particular time, l)ut if not so ]>aid, he w.is to Indd the note for tlie whole 
 .sum securi'd liy it ; Held, as .\. was only an aeeomiuodatiou maker he 
 could not he cliaiired witli more than tile iiolder iiail advaneed on tlie note; 
 Stndluix. X'irliolls, I U. C. g. I!. W'l. See also drciiiiruoif \. I'n'ri/, l!l 
 
 l^, (', (', 1'. io;{. 
 
 Where the iioliU'i' of a liill or note sues tlie drawers, aeeejitors, and 
 indorseis, in one action, lu- may discharge the drawt-rs, or indorsers, or 
 aeeommodation :iei'eptiirs, after, as well as hefnre. ju'lgmeiit, without losing 
 his remedies airainst the other jiarties liable in |)riority to those discharged •. 
 Holroiilh V. Ilmnilhiii,'! K, & A. •-'111*. See also I ln'iil'tlhin v. I loh;,iiil>, VI 
 \J. ('. C, P. :{S: 11 U. C. C. !'. !).•{. 
 
 'i'he payee of a mdt' indnr'ied for the accomnicidation of the maker, 
 having oht^iiiied judgment against the maker and indorser. may release 
 the makei', reserving all his rights against the indorsers, may inforce such 
 judgnu'iit ai.'ainst the aeeonunodation indi>rsi>rs : /)' // v. Mdiiiiiinf, II 
 (ii-ant !4--'. 
 
 'Ill 
 
 holilei' ol an acco 
 
 mniodation hill foi' value, aftei' heeoming aware of 
 
 its lieuii; an acconimodatioii 
 
 bill, 
 
 mav releasi' the drawer without releasii 
 
 the accommodation aeeeptor : ''(/// of (lln.yiinir Ihtiih v. M iirdink, 1 1 U 
 
 ('. (' 
 
 KJS. 
 
 .\ seeuritv given tf) an accommodation indorser, iloes not enure to th 
 
 benelit of the Se 
 
 eouil 111(11 
 
 U'ser : Sni'ilhw /'';/(''>■/', a (! rant til "J. 
 
 ite was given bv S, to M. i^ (' 
 
 iiid R. as accommodation iudorsei 
 
 to M. >'(; Co. The note w ls so treated to eualile S, to obta 
 
 m 
 
 goods oil eriMii 
 
 tfr 
 
 .\1. & Co. At the trial .M. & Co, indorsed tin; not 
 
 above 
 
 K 
 
 s, name, aildin 
 
 hli 
 
 without recoiir.- 
 
 -Hehl, that M. k. Co. 
 
 eouhl recover : Miijlhl/ v. /iV(.s, If) U. C. Q. 15. 5'27. Sue also < 
 
 i till it V. lUf 
 
 Mr 
 
 J'h 
 
 I r -If III, 
 
 ISU, C. Q. IV '2U. 
 
Tin; I'.iLi.s OF r:x<ii.\x(;K act. 
 
 1-21 
 
 Th(! I'cci'itit 1)V tlic liol.li'i- of 
 
 ill! .•i('c(iiniiiij( 
 
 itioM liill, nf (■(iiii|nisiti<)ii Sec. 28- 
 
 iiiitcs of tilt! iicci:ptiir, ill |)iir.suunc,' uf an :iriaiiu:i'iiuiit in liiiiiki-iiptcy, i.s ' . — 
 
 nut tM|iiiviilL'nt to piiyincnt. ami il^cs imt suspcnil lii< liLjIit nf .id 
 
 Mst tlic (U'Cdmnioilatinn d 
 
 iirli notes : /' 
 T 
 
 Ion 
 r.iwcr.-iiiil inili'i'sci' (liirin;,' tlic riiircncv of 
 
 1/ Itiiiik <ii' InhiiKl y. /)iiiui', '2 Ir. L. I!. I.M. 
 
 If lidldi'i' ot an a('( 
 
 iiuniiiilatinii not 
 
 (-• ni:i\' I'dMiin'innisc \\\\ 
 
 h and 
 
 the ai-c(ininiiMl.ition maker, ami ni,i\- then liolil t 
 
 li ilile : Sii'hni V. .1 //'/■ 
 
 le imlnr.sur.s 
 
 i:. c. (.>. 
 
 i'lie liolder.s of aeeoinnnidation |)aiiei- 111 ly laiiU upon tlie estate of and 
 ■li:ii\i,'e the ind ... . . . 
 
 or.seis, even kiiuwini; the s.inie to he aeeniMim 
 
 |iei', and niav afterwar^ls leeover from the maker ; /, 
 ('. .1. KiC. 
 
 dati 
 
 III II 1 1 II V 
 
 D'inil, 1;? 
 
 •X 
 
 'iO. A lioldcr ill diH' CDUr.sr ' is ji liolilrr wlio lias taken nnM<iir 
 
 a iiill, foi 
 
 dill' I'liiirM* 
 
 lupM'tc and rco-ulai- on tlic fare of it, - niiilcr tli(> <i>'iiii'i 
 
 illcwiuL;' coiiilitidHs, iiaincly : — 
 (i() That lie became tlie lioldiT of it hi'fore it 
 
 was (U'er- 
 
 line aiK 
 
 1 without iiotife tliat it luid lieen ]n'e\ioiisl\ dis- 
 li'iiioied, it siR-Ji was tlie fact. ; •"{ 
 
 ih) That lie took the hill ill o-ood faith and for value, ^ 
 and that at the time the hill w.is iie^(diated to him ln' had 
 
 III! 
 
 notice of any defeet in the title of tlie jhtsou wl 
 
 10 
 
 iioLi'otiated it : ■> 
 
 li, In jiaiiicular, the title of a 
 
 Tson who neL;otiati's a 
 
 Till.' ..'.•IV,- 
 U\f ill cii.-ls 
 
 'iita 
 
 is defective within the meaning' of this .\ct when ho of '1 1 ali!'t! 
 iiieil the hill, or the acceptance thereof, liy fraud, 
 
 duress, or force and fear, or other unlawful means, or for 
 an illegal consideration, or when he neiiotiaies it in hreach 
 of faith, or under such circuni>tances as uinouut to a 
 
 (hiii',-s, or 
 etlii-r uiiljLW- 
 fui mi'iiiis. 
 
 :rauil :" 
 
 .V holder, w liether For \- 
 
 iliie or not, who deri\' 
 
 es his Tii!,.,,f linM- 
 
 tille to a ill 
 
 11 tl 
 
 iioiil;'!! a holder in due course, and who is i„,i,i..i-;iniue 
 
 iM I himself a ]iart_v to any fr;!nd or illegality ali'ectini;- it, 
 li:is all the rio'hts of that holder in due course as red-anls 
 tlie acceptor ami all par tie-: to the hill prior to that holder. ~ 
 
 ' l!ythe iiitir|)r(tation el.iiise .s. •_>_ 
 |iiyee or indor.see of a liill or note \\ 1 
 ot it ; " and liy tliu same section " lie.irer "' is ilelined to mean '' the jiersoii 
 Ml jKissession of ;i l)ill or note wliieh is ji.iyaMe to liearei'." 'i'hoiiL.'li tlie 
 .\et generally h.is adopted the term " holler in due I'oiiise," the old expres- 
 sion " hol.ler for value, " ap[iear«i in ss. 'JT, '2S ami o.S. 
 
 a " holder ' is detined to mean " the 
 ■-ion of it. or tin.' lieaier 
 
 10 IS in llos<e: 
 
3 22 
 
 TlIK lill.l.S OK KXCIIANdK A< T. 
 
 Sec 29. 
 
 A bill cniii|)l(tc iiiid i'(!ynl;ir on the fruc of it, 
 
 liavini' all the 
 
 riM|iii.sito.s liiirfiiil)('f(irc iirt'scrihi-i] liy tlic Acttn iiiaku such liill ii valid and 
 Mo;:()tiai)l(! siM'uiify ; and tiiat tln-re is notliin;,' on tlic face; of it indicating 
 tliat it is incouiplcti' or in\alid in any respect (other tlian as indicated in 
 
 (4) 
 
 I'l) ; or tliat it is a sus])icious, or douhtfnl. 
 
 tirity riMiuirinj; 
 
 ,Vny inilieation leading to 
 
 or inviting explanation or invi'stigation. 
 any sueii con(;lnsi')n, may convey to a Imsinc'ss man of ordinary iirudenco 
 a warning, wiiich, if wilfnlly ilisrcgarded, may lead to loss of the seciiiity, 
 or an expensive litigation. The; maxim randl im/>/oi\ would then give 
 the warning : " let the pureiiaser who ought not to he ignorant of tiie 
 ••imoiint and nature of the interest which he is ahout to liuj', exercise 
 
 proper I'autiou : " Ih-i om'x Lnjul .Vn.i 
 
 ()(»." 
 
 The law-merchant in 
 
 regard to the i,i-g( 
 necessary, priii,.'i. 
 
 if commci 
 
 ce, an( 
 
 (f hills audi notes has made the despotic, hut 
 law, bend to the exigencies 
 "'{'lie general rule of law is 
 
 o connnon 
 
 of th 
 
 )f merchants. 
 
 iindouhteil that no one can liMiisfer to anotiicr a better title than he hii 
 
 self possesses : i,' / 
 tion". oiu! of which .■nis( 
 
 (/ i/iioil : <>ii lidliif. To this tl 
 
 II re are some excep- 
 
 tiabl 
 
 (! instruini nts. 
 
 Th 
 
 nt o, 
 1 
 
 lult -I of the law merchant as to nego- 
 
 se hemg \)xn 
 
 th 
 
 )tiabl 
 
 country, are subject to tlie same ruics as money ; and if such an instru 
 
 e currency ot 
 f 
 
 the 
 
 ment is transfeicd in good faitl 
 
 d for value, before it is ovei'due, it 
 
 b 
 
 available in tiie innds o 
 
 >f tl 
 
 .Id. 
 
 le holiler, Ui 
 
 itwithsta)uliiig fraud whicii 
 
 ihl 1 
 
 lave reniiereit I 
 
 t inavailabh; in the hands of a ))re\ 
 
 holdc 
 
 nil Is//, r V. /•'. 
 
 14 C. 15. N. S, 2.1 
 
 Hut tlie negotiator for th 
 
 1' 
 
 chase or ])ledge of bills of CAchange or iironiissory notes has, notwith- 
 standing the above enactnicut, and the idd and well reeogiii/ed rule of 
 law in harmony with it, to make such pui'chase, or take such i.ledge, sub- 
 ject to the risk of foigery, and of his own carefulness or negligence iu 
 guarding against the defects in title defined by s. 21) ; or il hi acipiires the 
 bill or note without the indorsement of the transferor, then only with the 
 
 warranty di lined in s. .")S <.' 
 
 ,Sce notes to ss. 20, 22, 24, 24, 54, and 5."). 
 
 Notice of the previous dishonor may be, eithci' th 
 
 ■rdi 
 
 date 
 
 Ol' 
 
 the notarial jirotest, or such other evidence as the bill, <.r marks (ui it 
 
 may present, or as i 
 ;ic(|uisitioii of the ii 
 
 nav be inferred from the (•ircuinstanccs(jf the holder': 
 
 (looil faitii " is delined by s. SO to mean where a thing is in 
 
 fact 
 
 done honcstlv. whethei' it is done ncLdiuently oi' not 
 
 Val 
 
 ue 
 
 mo 
 
 s. J to mean 
 
 ihiabli 
 
 msidcratiiin. 
 
 ,hi,l 
 
 1 i.y 
 
 '.I, IS 
 
 rtl 
 
 defined 
 1 
 
 urtlier .am 
 
 re fully ilelincd. A total, or jiartial, failuii'ofci 
 
 defen 
 wli 
 
 •ratif)!! is a good 
 
 against a party 
 
 o is not a iioldcr for value, unless he derives his title from u hohler 
 
 ce Jigunst the 
 
 immediate parties 
 
 )f tl 
 
 le 111 
 
 11, 
 
 in due course. See notes to s. 27. and note 7. p. 1- 
 
 This sci'tion does not sneak ot 
 
 itual 
 
 notice o 
 
 f the 
 
 prn 
 
 holdf 
 
 defect of title," altlr 
 
 'h such notice wotiltl he conclusive. Constructive 
 
 notice which is knowledge imputed to the parties from the facts proved, 
 
TKE r.rU.S OF FXCIfANfiE ACT. 
 
 12a 
 
 lllilN' 
 
 fl 
 
 icn 
 
 fore, 1k" suH'icient ; tlic prosiiinjition tliat tlio kn'p\\lt'(li;t< must SeC- 29- 
 
 inli 
 
 haveboen coniiminii'atfd is luld to lie Ino .stlMiUj,' to lie lililittid : //« 
 V. I.niisfi\inr< , !• Hiirr 44!*. And wlicrc a party lias tiio iiii'aiis of know iiii. 
 1 fact, lie is lioiuid to sliow tliat lie exorcised nasoiialile diliu'eiice to ascei 
 
 tain it : llittllii 
 
 l)u 
 
 ;/. I Moo. P. {'.('. "). lUit vai'iu- and iiidetiiiite 
 
 rmiioi' <ii' siisjiii'ion. is c|iiitc too loose and inconvenient in practice to lie 
 :idujitted to l)e siiliicieiit to put a party on eiHiiiiry. l>ut each case ninsl 
 di-|iend upon its own uircunistances. At one time tlie doctiine prevailed 
 that if the holder took the hill under siisjiiiions circumstances, or witjiout 
 due caution or in(|uiry. although lie ;4ave \alue for it, yet he was not dei'incd 
 
 dcr fc 
 
 or valne u 1 
 
 tiiout notice : <i;il v. Cuiritf, W !!. it ('. -IC.Ii. Uiit tli 
 
 do^t 
 
 riiie has since lieen al) ukIoikmI, iilion tin 
 
 th 
 
 d of its ill 
 
 com ciiK'nee 
 
 ,1111 
 
 ilistriiction to the free circulation and negotiation of liills and notes : 
 
 limill III'IK V. 
 
 Ilo 
 
 '.'/■ 
 
 4 A. \- ]•;. s7(>; niii 
 
 llUh, 10 A. it K. 7S4. 
 
 >eu 
 
 fill tiicr. note 1 to s. .S'J. 
 
 Ti.i.rsTiiArniNs. 
 
 W'iiere a ]ierson, at a heavy discount, negotiated a liil 
 
 drawn hv 
 
 fraud of his ti 
 
 nil, 
 
 pirtiier 111 
 
 liie frauiliileiit drawer with know 
 
 it a name w 
 
 from aiiotiier who had t d<en it from tii 
 
 ,led;j 
 
 hicli made it jierfeetly 
 
 of the fraud, the hill iiavini,' on 
 d ; Held, that from these facts 
 
 the .jury mieht presnmo that the plaintilf took the hill iii'i'n /ii/i' 
 
 hnil. 
 
 '/ V". 
 
 Ih' 
 
 11 W. I! 
 
 A ]iei'son who takes a hill under i.-ircimistances ealcnlati d to excite 
 
 Misiiieion, and liaviiin 
 
 the 1 
 
 f kl 
 
 neaiis ol kiiowU.'i 
 
 hut w ilfiillv alistains from 
 
 Miakiiig any iiajuirics. must be censidei-u<l to li 
 
 hoi 
 
 der with noti 
 
 fiainl. if any exists 
 
 i/v/c) 
 
 A) 
 
 ('as. (liti 
 
 Where a person without any expics> notice of any circumstance of 
 
 .suspicion, took 
 
 not relying on 
 drawer who ( 
 
 th 
 th 
 
 iU. 
 
 not \n tl 
 
 ordinal v course ot liusincss. am 
 
 security ; liiit ri'C[uired cvi<lence of title fn 
 
 leeeivod him. lie lias no hotter titli 
 
 ili.iwer had : Jliilr/i v. St-ar/i- 
 
 ;ilso ('n/.' 
 
 Oil V. 
 
 L» Si 
 
 Ariio/, .-.4 N. ^■. •_'.■•);{. 
 
 .tOif. 147 
 
 the Kill tl 
 !4 1,. d. Cli 
 
 the 
 
 laii the 
 
 See 
 
 '• Hills or notes so drawn or made. ;irc xdididilc. .Sucji lulls or note:j 
 are generally "regular on the face;" and tiie facts necessary to luing tlicm 
 v'. itliin the operation of this clause, have to !»• prowd. .\s to the term 
 " other iinl.iw fill means." it must he interpreted to include only such 
 means as are ^/'(■'-■'/' //(.'/' //'■/■/.^ with those ih ,<.-iilM d. The g< lur.d rule for 
 tiie cuiistrui'tiiMi of statutes is that where se\cral Murds, jireccding a 
 j;rneral wor<l, iioint to a contined iiicining. such general word sli;dl not 
 receive such a meaning as to extend its ellect h'Niuid suhjects which arc 
 ijiisdi III 'ji III ris : I'li/liia v. A"' /•///, S (,). 11. KJ;}. 
 
 ll.l,rsTl;.\TloNS. 
 
 A son having ackuow lodged to have stolen S'i."), his mother wa- induced 
 to sign a promissory note, under threats of having her son arrest cmI ; Held, 
 tli.it she was not liahlo on the note: Miirfdrldiu v. hin'iii, 1 .'> I... ( '. .1. Sf). 
 
 .A note given in consideration of the payei's foi hearing to prosecute a 
 < inri^e against the maker of olit ■.inilig iiioikv h\' false pretences, is illegal : 
 (■/,(/,/, V. //(((^o/,, IS ('. 15. .\. S. 414. 
 
124 
 
 Tin: liii.is (>!•' KxciiANcir, act. 
 
 Sec. 29. An 
 
 il'i'Clllrllt lUit fil lir( 
 
 ill :i iiro.sL'ciitiiiii i'cir ]iLTiiiittiiig iii 
 
 iw fill 
 
 LMliinliiiL; III .■! tiiAi TM, i'^ an ilUija 
 
 1 I'Diisidfiatidii fur a nntf : />)rii/li/ v. 
 
 E/h 
 
 rih. !i V. ('. (>. i; 
 
 :!!i. 
 
 Ill (inlcr to rriii'icr illri/il tlic rei'tdnt nf .'^fciiritii s liy a ci'L'ilitnr fimi 
 
 liis ilclit" 
 
 r, wiicii' tl 
 
 .t 1 
 
 ic i|(l)t lias her 
 
 II loiitliicti'il liiiilci(;iicilir..staiii.T.s w liicli 
 
 iiii;,'lit rciiilir tlic ilclitdi' lial)lu to oiiiiiiiial iiriii'i'iMiiii;_'s. it is no (Iffciici' 
 tliiit tlu^ lull was iiuloiHuil liy the ilrawcr to tin- iilaintill'. in nrdcr to stjlli' 
 ■A )iii>>('culinii lor t't'lony, i( tlirru is an actual dulit due : Flmri r v. Suilltr, 
 
 !M,>. i;. i>. s:{: 10 <,). \\. I). .-.;•_•. 
 
 .V tatlicr, wliosf son had ohtaili 'il disidimts t'ldiii a hank on |ia]H'i- 
 
 on wliirh (III' latl 
 
 had 
 
 hcfll loigrd, was a|)|iu; 
 
 d.d to 1)V tl 
 
 hank to tike upon hiiiisrlf tin; liahility in ris|nTt of his son's forycri 
 
 UK I w 
 
 ho did .so, hilt with the know lcdi_ft' that unless he <lid so his 
 
 lid 
 
 le exiioseil to a elliiiinal nroseei 
 
 itioii, Mith a iiKHal eertaiiity 
 th 
 
 eon\ieti(iii, is not a free and voliiiit.iry a^ent. and tlii' a^'reenieiit 
 makes under sueli eii<'Uinstailee.s is not enfoieeahU', even thoiii^h th 
 
 f, 
 
 pr;^ed insMiinieiits are u'iv'ii up. and his sons peril is not ])iit lo 
 
 ward li\' the li.iiik as the iiiotiw tor iiidiiciiiL; the a,L;i'eiMiient : \Villi(UH-< 
 limhi/'. L. K. I II. L. -IW. 
 
 To support a defi 
 
 nee that a note was '^neii in emisi 
 
 lerati 
 
 Kill of t'orliear- 
 
 anee to proceed in a ])rosei'ution for felony, the jiirtieiilar nature of th 
 criminal ehai'Lri' should he proved : lliiirij v. Litllr, II IJ. (', (^), 15. 'J'.tti. 
 
 lilt x'oidalile, as oiii' i;i\i'ii for w hat is niiihii 
 
 AVI 
 
 lere a note init \oii 
 
 ///•(; 
 
 li'th'tl 
 
 Hill. IS J^l 
 
 Vt n 111) III eolisli 
 
 lerati 
 
 ion ot another note "iveii at a distanc 
 
 day, the illei;alit V of the former note wil 
 
 le no defence in an action on 
 
 the latter : Willu 
 
 /..., 4 K 
 
 ip. 
 
 .'01. 
 
 .V jiote ,;;iveii in eonsideratioii of eounterfiit hank notes sidd hy tl 
 
 payee to the maker, is void on the ground of pulilie policy 
 
 I ill III I 
 
 I' 
 
 iclar. .) 
 
 llach. (liid.) -JIM. 
 
 A note ^iven at the request of a director of a liaiik foi' money owed 
 
 hv him to the hank, in exc 
 
 / 
 
 ( iilli/' in/ysi 
 
 t liiiiih V. Itiiij' 
 
 if the amount allowed hy law, is not 
 IS X. II. 
 
 A note 1,'iveii to an insuranee eomjriny. contrary to .'in exjifess statu- 
 
 tory provision, Ks Void : (> 
 
 \ note Ljiveii 
 
 ii\' one of sevt'i'a 
 
 //an-isiiii, •,]•; IJail). (\. V.) -JIO. 
 tenderers tor a < ioveriiment contract. 
 
 itlicr ti'iideier, to iiiduc'e him to withdraw his tender, is void : Kiii- 
 iii'ih/ v. Miirilirh, .") liar. (Ocl.) 4.")S. 
 
 A note given to a niai.;istrate for tines and fees imposed iqniii tii'' 
 maker on a eriniiiial charge, is void : KIii'ImIiiuii v. F.Ui'<,\ Ciisii. (Mass.) 
 .■)7S. 
 
 Notes uivcii to a municipal otiii'cr for licenses, are void; Xiir^omw 
 Thhili. ' 
 
 !0 .Mi.-s. 414. 
 
 A note given t<i induce a jicrsoii to \\ithtlraw o))))ositioii to the opei 
 
 llig ot [iiililie road is von 
 
 //// V. ApiihiiKh. •_).•{ N. ,). (/ah.) Srvi. 
 
 Though ,1 statute incorpor.iting 
 
 tloiis tor stoc 
 
 diall 
 
 ipaiiy provides that snhseriii 
 
 lie Void It not paid 111 money, a promissory note 
 
 given for suidi snliscriiition is not void, and may lie enffiieecl, as the 
 giving of such note is not contrary to public iioliey : McUai' v. liv<- 
 
 Sill, VI lied. (N. (".) '1'1\. 
 
 \ note L'i\en for a transaction forhidden hy law, heing for an illegal 
 consideration, is void ; JJroirii v. Tuikni'jtuii, ."J Wall. 377. 
 
TIIK lUF.rS ()[■• i;X(ir.\Nf!K ACT. 
 
 A note given in consiilcr.ition of ;i promise liy ;i ilefcniliiiit in ii divdice SeC- 29- 
 
 suit, tiiat slie wonjil uitlnlraw li 
 
 I'l 
 
 din'' ;ui(l ni.ikc no lU It nrc tn t lie 
 
 a(.-tion, is Vdiil : Sttinliiilxrijw Lijhvaud^ l.'J Oliin 'JJS. 
 
 A ii'gi.-ijiitnre, as a conilitioii of i,'rantinj,' a ilivoreefroni liis wifo, i((|iiii'c(l 
 tlif liu.->i)anil to pay iier ^oUO for inT fiittirc .--njjiicirt, for wiiieli aniount lie 
 t;a\X' Ills promissory note ;- Held, tiiat tlic nutc « as not againsl ['Ulilic 
 liolicy, and was not void : />a// v. Ciithr, 'I'l Conn. (i_'5. 
 
 if pait of tlu^ 
 
 Unlu 
 
 sideration onlv i.s illi'L'al, tlie iiill in voiil for IIk' w liole 
 
 V. Illaiiil, '1 i'.nrr. lOS'J. 
 
 " liy s. H7, wlicn a hill is n(■^()tiat('d liaclc to tlir drawer, oi' tn a piicr 
 iiidoiiser, oi' to tlie aei'e])ti)r, .sutdi [larty may re-issne and furtiier negotiate 
 it : and l)y tliis elansc a liolder ^Jii'tlier for valui' or not, who dorivcs Ids 
 
 title tlifoiiLcii a holder in due eoiil'f 
 
 entitled tn the ti^iits nf such 
 
 holder in due eoiirse, ]irovided he lias not iiceii a ]iarly to any fraud or 
 ill(L,'ality alleeting it. 'I'he el.inse only atl't'ets '• a yi///// to any f';iuil cir 
 illegality," and not a party who has itulin of such fraud or illegality. 
 'I'iii' doetiine of eonstrueti\e nntiee as to defei ts in title is not to lie ex- 
 
 t( iided. i'he (inestion is whether a pill 
 
 h.iser had the means ol o 
 
 litaini 
 
 IIL' 
 
 nIiow le(lge of the del't^et, and migjit Ity )>iudent eantion have olitaiiie 
 
 whether the not ohtainiiii,' it, was an aet of yress and eii 
 
 1 it; 
 l|>:d>k 
 
 lJeL,'li. 
 
 II' 
 
 V. L,n-il. I: 
 
 i/lllnlli 
 
 /, 4 l>e(;. M. & (;. 1(1(1; or that hi 
 
 -iniiedly alistaiiied fi-oin niakim.' iiuitiii 
 
 ,l()l(r.< \ . S/iiil/l. 1 II; 
 
 'I'he e(|uit ilile doetrilie appliral'le to tit les tip real t st;it('. is also applieahle 
 til titles to liills ami notes. 'I'luLs where A. who had iiotiec of an ineiim 
 
 ranee on an estate imrehased it, an.i then s<ild it to 1 
 
 I., \\ lio hail no 
 
 lioliee. ■■Hid l>. liei 
 
 ni 
 
 ■h 
 
 for Willie without notiee, aflei'w anh- 
 
 il it to C 
 
 w lio 
 
 had uotiee of siieh iiieiiinlieran''e, it was held that 
 
 ( '. 'jot a '' 1 title from !>., and th;it he held tin' est ite free of tin' in 
 
 eiiinlieranee ; for if tin' rules were iithi I'uise, the sale of estates wouli 
 
 1 li 
 
 \ery 
 •J Atl 
 
 Ai 
 
 ly niiiell eloirited : // 
 
 ((rn-^mi V 
 
 J-'nrth, I'ree. Ch. (11 : /."ir/h, ,■ \\ ('(in'faii. 
 
 Il.Msl'KA'ri 
 
 loeent ]>ait_y, who is a holder for \aliie. may transfer a i;ood title 
 ill ;i liill ton person wlm was no [larty to the oii'jinal fiainl, thoiiuh he 
 lia\e hail knowledge of it ; J/((,'/ v. t hn/niKlii, l(i M. it W . .'.'i.'). 
 
 An indorsee: without value is entitled t 
 intermediate party is a holder for value : 
 
 11 reeovef oil a Kill ol note if any 
 U'ooil v. y.Vvv, s I'. {• C. I'. •_'<)!». 
 
 A note given for the priee of lottery tiekets is not under 12 (Jeo. II e. 
 ■JS, ilmi). ), Void in the hands (if n Imii't liih holder for \aliie : h'i;iii-^ v. 
 M'.rlnj, ■_>! U. C. (,>. iJ. i';47. 
 
 The holder of a draft payalile to order, wliieh In- has olit;iin( d ln'ii'i jiih , 
 ;uiil for value, lint without indorsement, has no hetti r title llmnthe prior 
 lioliler, even though he afterw.iids gets sin li ]iiior liol'h I' to iiidoise it ; 
 ami he is atleeteil liy fraud, of w hieli he has notice iK'fore he olitaiiis the 
 f'Uiiial indorsement": Wlii-slhr v. Forster, 14 C. J5. N. .S. '-MS ; 8 L. T. X. S. 
 ;{i7. 
 
 ^N'here a trader in the eourse of his hiisiness received a eheipie, which 
 liid been stolen from tlie payee, and gave the ilitl'erenee to a stranger, who 
 
120 
 
 TllK KILLS OF EXCllAXCiE ACT. 
 
 SeC- 29- IH'csontcil it in payment of an article |)nieliase(l ; lleli], in tliealwcnce of 
 
 ' . Iran.! an<l iie:,'lii,'enc'e im the traiji r's part, that lie was taititled to rocover : 
 
 A" V. Xiirsoiii. 1). k I!., \. )'. ('. 50. 
 
 I>. iiuliirscil a proniiss(ny note iiiade liy ('. f"i' tlic ]>nrpos(,! of retirinL' 
 aiiotlier similar note wliieli he hail previously indorsed I'orC's ac(!om 
 nindation, and gave it to I'. Insti'.id of retii'iiig this note, however, ('. 
 handed it to the plaintill' in payment of a debt, who took it in good faith, 
 hut made no iiupiirs respecting ( '. 's tith; to the note, or his authority so 
 to deal with it ; -Ifeld, that the plaintitF was entitU^l to recover against 
 |{ : Cross v. ('iirrii , V.i U. C. (,), I'.. 51)!) ; 5 App. 1!. .'{1. 
 
 W'hei'e it was alleged that a prioi- note had lieen obtained Ity frami from 
 the maker, and sulisiapiently another note was given as a suhstitute foi- 
 such prior note, ovidi'iice of the alleged fraud is inadmissihlu in the action 
 on the substituted note : Doiiiiull v. /'(w/, 5 U. ('. ^i- i-5. 554. 
 
 A note ]iayal)l(! to L. or bearer was made by and dej)osited with one 1). 
 as collatei'al security for note made by L. payable to I)., vA'hich I), had 
 discounted in a bank. Afterwards It.'.s note when overdue was al,--o 
 transferred to the bank, as collateral ^5C^•urity for D.'s note; — field, that 
 even if the liank had no higher titli^ than I)., 1>. had a vested right in 
 the note at maturity, which he could transfer to the bank: (Jaiiuiduii JJitn/: 
 i>l' foiHiw in- V. /.'o«, ■_'•_' U. C. C. I'. 4!)7. 
 
 I'rcsu T.ptinn 
 of valiio auU 
 good fiiith. 
 
 UO. Kvery party wliose .signatuiv appcar.s on a bill is 
 l>run<( fd.ch' (It'einod to have hecoiiii' a painty thereto for 
 value : i 
 
 Wtipru anus 
 lirtibandi is 
 abifted. 
 
 Act mil 
 kuowlt'ilge 
 of UHury. 
 
 What a bill 
 or note for 
 patentriglits 
 ]iiust con- 
 tain. 
 
 2. And every holder of a bill is prima facie deemed to 
 l)e a holder in due course ; but if, in an action on a l»ill, it 
 is admitted or proved that the acceptanee, issue or sub- 
 .setpient negcjtiation of the bill is affected with fraud, duress, 
 or force and fear, or illegality, the burden of proof that he 
 is such holder in due course shall be on him, unless and 
 until he proves that, .subseijueiit to the alleged fraud or 
 illegality, value has in good faith been given for the bill 
 bv some other holder in due course ;- 
 
 3. No bill, although given for a usurious considei'ation 
 or upon a usurious contract, is void in the hands of a 
 holder, unless such holder had at the time of its transfer 
 to him actual knowledge that it was oriyinallv given for a 
 usurious consideration, or upon a usurious contract:-^ 
 
 4. Ever}' bill or note the considei'ation of which consists, 
 in whole or in part, of the purcha.se money of a patent 
 right, or of a partial interest, limited geographically or 
 
mm 
 
 'iiiK r.iLi.s or KxcHAXdi: act. 
 
 127 
 
 itlirrwisc, ill !i piiti'iit riL^^ht, shall luivf wrilti'ii oi- printrd Sec. TO._ 
 
 iroiuinciitiv iiml ic^'iiiiv ficross 
 
 l.b 
 
 til.' fi 
 
 u'l' t licri'ol 
 
 I iridic 
 
 th 
 
 «l IKKIU 
 
 jiiirii .s. 
 
 same is issued, the worils "eiveii for u patent ri<j;ht:" and 
 without sncb woi'cls thereon such iiistriunent and any 
 I'eiuiwal th(.'reof shall he void, except in the hands of a 
 holder in dne coiu'se without iKjtice of such considei'ation. 
 
 5. The indorsee or otlier traiisleice of any such instru- Trmisf,.ri-o 
 
 *' to tiiki^ 
 
 nient haviuir the woi'ds aforesaiil so ])rinted or written ■'"'''j''i':> 
 thereon, shall take the same subject to any defence or set- 
 otl'iii respect of the whole or any \)iivt thereof which would 
 have existed between the t)ri^inal i)arties : 
 
 (). Evei'V one who issues, sells (Ji- transfers, bv iiidoi'se- MiMicim'iin 
 iiient oi' delivery, any sucli instrument not ha\in;,f the « 
 words "i,Mven for a i)atent rii,d»t " printed or written in 
 manner aforesaid acioss the face thereof, kiiowini;' tlie 
 consiileration of such instrument to have consisted, in 
 whole or in part, of the purchase monc.'V of a patent i"i,<,dit, 
 or of a partial interest, limiteil ^■eo^'raphically or otherwise, 
 ill a ])atent lieht, is i^'iiilty of a misdemeanor, and liable to 
 
 or if pri'sirib- 
 
 il wonis not 
 
 NMit I'M Oil 
 
 siii'Il liiU or 
 not>'. 
 
 m 
 
 iprisonment for any term not excei'diiig one year, or to 
 su('h tine, not exceeding two hundred dollars, as the court 
 tliiidvs tit. -^ 
 
 'I'his clausu 
 
 bo read in coiiiicoliou witli tlii' 
 
 il ."it; 
 
 lattor sc'ctidii seems to modify tho rule that only tlmsu u lio sign tlie hill 
 ill one of the eharaetcrs mentioned in s. 'i.'i, are liable on siuh hill. 
 Hitherto the judieial <leeisions as to the parties who sii,'M or liaek the hill, 
 iutcudins^ to heeonie sureties fur the payment of tlii' hill, iiave not 
 hull nniforni, for sureties, as such, have not Keen reeoniiized hy tlie law 
 iiicirhant. Aeeomniodation aceejitois, makers, and indorsers do i.ot 
 usually hecoiiio parties to hills or notes " tor value." nor do sureties, 
 liiit if the remarks in the note to s. .'ili i;orre(,'tlv indicate tiie intention of 
 
 the Lei'islature, it may follow tiiat the liability of 
 
 sureties, or parties 
 
 liijirr Am/, will he found te he the same as the sureties known as accom- 
 iiiudation parties, liills of exchange and promissciry notes diller from 
 other contracts at eonnnon law in two important particulars ; (irst they 
 are assignable, whereas cAo-ves ia artloii at eonnnon law are not ; ami 
 secondly, the instrument itself gives a right of action, for it is presumed 
 to have been given for value, and no value need be alleged as a consider- 
 ation for it : Fo.sier v. JJawhtr, G Ex. S.jH. 
 
IL'S 
 
 Tin; i;ii,i.s «)i' i:.\<'iia\(;k a< t, 
 
 Seo. 30. 
 
 Il.l,l'sru\T|n.\- 
 
 W'li' ii it .iiiiii'.in'i) tliiit II iiotf «MH iiitnnlfd to liiivc lucn iiiiulc tu tin- 
 |il;iiiitill III' iimIii', til lit: iiiiloi'si i| liy liiiii tu tlic ilclt'inlaiit, tn si rin'r a 
 (l(.')it line Id the ili'iViiiliiiit Itytlic iiiaUcr, Itiit liy iiiiNt.'ikc it MKs iiMili' 
 jiayalili' ti> I 111' ilcfi'iiiLiiil iir (iiilcr ; ami Ik- thcri'iiiioii iiiiimx'tl it. to tlic 
 ii'iliM' til I lialilo liilii til siU' till' lil.'ikcr, ami nlT .iir illiitciHtilllil- 
 
 |ilaiiitill. Ill III 
 iii<{ that llir |> 
 II 
 
 iiilill' siiiiiild liavc mi reel 111 I'st' anaiii.-^t liiiii a> iiiiUirwci 
 
 c'lil, a liuoil (li'ii'iuM 
 
 li'f, 
 
 liliilii V. O/l/ilitni/, !l I'. ('. (,». Ii. I7;t. 
 
 W'Im'Ic ill an aitimi mi ii imlf |i,iyalilt' to A., it was |iiii\ril tliiit !'■ 
 iii:;;lil it t(iA., \\ lid imluisi il it imckIn inr acn m 
 
 imioiM (I It, ami I In ii liimi;^ 
 imiiiatiKii, w illiiiiit I t'l <'i\ ill' 
 
 ly Miliii- t'lir it:- III III, lii.'it want ul t'nii 
 
 !<iili'Mitiiiii iniilil not I u iiilti'ittl, as lictwicn tiic inakcr 
 
 i:., ami lliat. 
 
 tli( |il,iiiilill was not olili^td to [ihivc tlic I'dnsiikialinn : Mo'tix. Mi 
 
 A. 
 
 I I'. ('. <.». 11. J.V 
 
 W'ini'r it i;|i|irai'('il tiiat lict'oi'c suit tin; ili fi'mlant. liy au'rci'inciit with 
 H. .'inil ( ),, till' M'l'iimt ami tliinl imlorscrs. inailc, ami imlmsril to tlniii 
 iinotlicr mill', wliirli was in'i I'jitiil in iiill satisl'artioii ami ilisi,'liai'j.'r ni tin 
 not(! sinil uiioii, Init which notr iiniainri 
 
 tlm liamlH of I!, ami O. 
 
 «irlioiit tin.' fault nt till' (K't'i iidanl : ll< Id lh.it tlin |iidiif of considri'a- 
 
 tioii l.iy nil till' [iLiii 
 
 it ill: .I/.W//.V 
 
 W 
 1 1 
 
 nil' an iiiilni-M r ii 
 
 nil. I'M d 
 
 /. 11 l. ('. (,». I'.. Sl. 
 itc while ill lilank, then' lii'iiiL' n 
 
 inaki I's iiaiiii' att.i. In d to it nor ,iiiy siiiii nor jLiycc t'X|in'S.s('d in it, and 
 the naiiu' lit till' m.-ikor was attcrwaids Kii^md witlmnt .inthoritv ; ll< Id, 
 
 that the im 
 
 loiscc siiiiii; iiiiist sln'W 
 
 himst'lt a Ikuki Ii'/' lioldfi' for valin 
 
 IJi 
 
 nil) V. ( 'ntli. 
 
 ir. r. c. (.>. i;. w 
 
 'I'll!' difi'iniant .'i;.'! red to ln'conu' surety for wli.itever itoods I', should 
 wler of till' 111 liiitilf. T. sent tin; i'0( ids ordered .and other i;oiiils, with 
 
 out diselii-iiiL; these f;iets to the derend.int, lint in |ieifei't 
 '{'he plaintiir then iiresented a liill ot ex 
 
 I'liani'e on 
 
 I*, f 
 
 or sii^natiire 
 
 def. 
 
 elnlalll. w ho sli^'iied the s.inie, sil]i|iii>lli;.' it was 
 
 fur t 
 
 le i.'iioi|s oil 
 
 <1 f.'iith. 
 lis the 
 I'er.il, 
 
 1'. ki'jit all th 
 
 ds ; Held, that the defendant w s lialile mdv to the 
 
 extent of the i,'ooils oiderud, and th.it the eoiisideiat ion for the liill taih 
 a.s to the excess : /liirlnf v. Mniinn, 7 Aini. I-!. II f. 
 
 - 'I'he eU'cct of this clause is that the /iriind Jacii e\ idence of valm- 
 which the iiiddintiiin of the hill or note estahli.slie.s, may he displaced hy 
 pi'oiit ihal the acce|itance, issue or sul)sei|ueiit negotiation of tlie hill or 
 note is alleeted or tainted with the defects of title descrihed ; and the onus 
 is tluMi on the party claiiniii!,' to lie a holder in due course, to prove that, 
 
 lisei|neiit to the defect in titk', value was jiiveii in j;ood faith hy .some 
 r iiute. The latter part of the cl.uise dillers from 
 
 su 
 other ho 
 
 Ider of till! h 
 
 the l'',ni;lisli Act in ri'g:ird to the jiai'ty i^ivini,' the "value in good faith ; 
 the h'/ii^lish Act re.'uling : "the Inn den of inoof is shifted unles.s and until 
 the holder jiruves that sulise(|ueiit to the alleged fraud or illegality, value 
 lias in good faith liceii given for tlie hill:" thus allowing the proof that 
 value has lieen given hy the then, or some prior, holder of the hill. This 
 Act limits the proof of such value to have lieeii given "liy some 
 
 (//(( 
 
 liolde 
 
 er in due course, 
 
 l>ut the :.itfereiice in application may he found to 
 be iiiore in words than in sulistance ; and on this see s. -!). >See also as 
 to jiriiiia Jdciv evidence, notes 1, p. 77, and 7 and 8, pp. 84-85. 
 
Tilt-; lui.i.s oi' i;n<ii.\N(;i: a* t. 
 
 Im.istuatiiins. 
 
 Sec 30. 
 
 WliiiT fciiiil Ih jiiiivid in iin action on a till] of rxcliaiiuc. tiii' liuiiltn nf 
 |.i-iiiil is tlirn on till' iioldcr, to ^iiovc iioth tli.it \n\\\v Ii.mI Ini'ii yivi'M, 
 iHi<l that it liiiil liccn given in louiI fuiili. w itlioiit notin <>t ilutiaiiil: 
 ■"''Ikiiii v. /l,isl,i,;'2:i\i. }{. l>. :{i.">. 
 
 NVlicmilirin wliirli lia>l l»un in tlif iialut ol draw in- liill> on tin ii l'.iii;li,-<li 
 (■itrri's|ionilint, clrt-w lulls on him aflor ills i'i'C|iii'sting tlnm to drsi.st, iin<l 
 *'\L'h,inut'ii II liill .so (liawii tor a noti-of II., anil tliu liiin at'ti i wahLs t'ailcil, 
 Miiil till' lull wiiM returnt'il ilishonourL'd ; llriil, that it the linn iln w thu 
 iiill lor which tho note Was ^ivcii, liaviny no fX|ictlatioii thai it wcjiihl ho 
 hoiioiiriil, thi'i'f wa.s fviiU'iice thai they |ira(iifiil fiiiiiii in |>niL'iuin^ 
 till' liott; : Ci^iJn-hdin \. 1 1 iilrlii>u)i , ."> L'.'f. C. I'. 'J U . 
 
 Win rt' one C. \vii.M imliiceil to aeci pt a hill liy the fraiiil anil niisn'|irt'- 
 scutalioii of the iniloi~ei's |i|'iiii' to the Imhler, ami without any eoiisiileia- 
 lion, ami that l>,the la..-l olMnli iihIoimi's. iinloix il lu the I'laintills 
 
 without any eoiisiileiation or valiK' ;;i\'en li\ th<'io to him 
 
 I ell I, a ''oiM 
 
 ieti'lii 
 
 /.•'«/,/■ nf M 
 
 mil /■' (I 
 
 I \. ( 
 
 (I iiK niii. 
 
 IT r. c. <•. 1!. liiii; 
 
 The ilelenilant wa-; aiiesteil on the ehar;.'e of (.nilnv/linj,' lines lielonMinif 
 lo a to« nsliip, w liich he hail l eeeived a.> a Jllstiee ol' the I'e lee, and w hlle 
 
 under arn'sl, lie eoinpiomiM'd liv umiii; seeiinty to iiloeiue Ills iilease, 
 d till' jilaintitl !,' iM' a note to the towi shi|i tor the amount el, i lined, and 
 
 ilitain 
 
 tidiii till. lU'leiidant a note tor tin 
 
 llir. li:'!.>lsi d lis his \\ lie. 
 
 he [ilaiiiiilt now sought to reeover on the deh nd.int's note; Held, that 
 
 'e eoiisideratioll tllerelor, lu'iuy the slilling ol .1 proseelit ion lor lilony 
 
 < illegal, leliiUired the note \oid, .ind t li.it tlie pl.-iintiir w as in 110 iietter 
 
 ,)siti()ii than tlie township would have I" en hid the\ taken the note; 
 
 /;.// V. iiid'iiiL •_' Out. 1: 
 
 This clause is not in the Miiglish .\ct. l'"orfeitiire of a security for iiMiry 
 i p.irtly aliolislied in old Canail.i (imw Ontario and (,>nelii d, in l.So.'} 
 
 ill) \'ie. c. SO) ; and coilti.icts wen 
 
 •i.ired li 
 
 \(>id olllv III I he l\ti lit 
 
 of inteii'st ahove six per cent. I!iit that Act excepted from its general 
 leliif liaiiUs, Insurance and 1 oaii ('oinpanics, leaving them (e\c(.])t as to 
 
 links which were limited to scm'ii per cent.) si 
 
 llij.l't to the 1 
 
 I olilliltlollS 
 
 ami penalties of the liMiry l.iws, I'.aliUs w ei e aftel'W al ds leliixid of tllO 
 licnalty of forfeitiin.' (K. ,•< ( '. c. I'iU, .ss. Ill ami li"J. and ."10 Vic. c. ;{1 ss. 
 M) ami, Si). The present statuloiy provisions again.^t ii>iiiyiii (liit.irio 
 
 d O,;..':- 
 
 arc set out 111 
 
 .•<. (' 
 
 s. 1(1, al 
 
 d 1 
 
 .S. 10 
 
 nulls lo.'ili 
 
 iii|iaiiies to six per cent. "• lor loan of ,niy mom ys, w.iies, mcrihandi/e, 
 
 or otiier uomniodities ; and insurance coiii]iaiiies to eight ]ier cent 
 
 ■ on 
 
 .my contract or agreement." .S 1 1 is as it 
 
 1 
 
 .Ml hi.nils, hills, ni( 
 
 iiiissorv notes, coiitiacts and assiiran 
 
 hat.- 
 
 oe\('l'. mailc or cxecu 
 
 V 
 ited 
 
 )f tlr 
 
 violation ol the provisions ot the section next precciliiig. whciriipon or 
 
 ■A liereliy a 
 
 'leati'i- interest is reserved and taken than ,iiitliori/'i d liv this 
 
 ■r any other act or law , shall 
 
 void ; and every eorpniation, ei nipany, 
 
 and association of persons, not being a bank, authorized to lend or hoirow 
 money as aforesaid, which directly or indirectly, takes, accepts, and 
 reieive.s a higher rate of interest, shall iiieu'' :' nenalty eipial to treble the 
 value of the moneys, wares, niercliandi/e or other eoiiiinodities lent or 
 har^jained for. (2) Such penalty may be recovered by action in any court 
 
:i() 
 
 Tin: Mii.i.s o\' i:x('Ha\<;e act. 
 
 Sec. 30. of ciiiiii)ctcnt jurisdiction, and one moiety thereof sliall belong to Her 
 ' .Majesty for the pulilie uses of Canada, and tlie otlier moiety for tlie 
 
 per.siii. \\iio .sues for the same." There is anotlier ehiuse as to usury 
 aii|)li';iil)le to Nova Scotia, (s. l.")) ; Itut there appears to lie no penal- 
 ties in tlie otiier I'rovinees. The words of this chuise are laryo enou'di 
 
 to allect all hills and notes od'endii 
 
 i'ainst what are ttM'iiiiicallv 
 
 vnow 11 as the 
 
 ' usury liiAvs 
 
 hut douhtless judicial eonstiuetion 
 
 ill 
 
 " ansiver tile sense of tlie statute," ami eonline their efl'i.'et to tlie cor- 
 porations specially suljject to the chuises of the usury law cited ahove. 
 
 ' These clauses as to patent rights are not in the ImiliHsIi Act, hut are 
 taken fiiiiu !!. S. V. c. I'ili, s. ]'2. W'iien a statute intlicts a penalty for 
 not iloing an act provided for, the jienalty enacted implies that there is a 
 legal c(jinpulsion to do the act in (pii'stion: li<il}ntlh v. Allan, L. K. 4 P. C. 
 511. All I'iglits reside in persons, and are rights to ai,ts or forhearances 
 on the part of other persons, They are cajiahlo of heing enfoiced judici- 
 
 ally a 
 .1 ii^tt 
 
 st th 
 
 persons who are hoiiin 
 
 1 to those r,c*s ol' forhe; 
 
 Jiu 
 
 ■■<pru 
 
 d<: 
 
 ■MS. 
 
 ll.l.rsTUVTIONS. 
 
 note was given for a patent rigiit in 
 
 sliiu'd 
 
 e niiic'liine 
 
 hut 
 h 
 
 as 
 
 tl 
 
 le 
 
 letters patent were void, it was iield there was a taihiio of consideration 
 /Carli V. I'liiii , (i X. W. 477. 
 
 1). gave ('. two |)ioniissory notes for patent rigiits, jiayahle to (!. or 
 
 LU", hut haviu'' imUirseil on each ol then 
 
 tl 
 
 iiiteinuorancMiuslv with 
 
 leir niakiiu 
 
 th 
 
 le wor<ls " the Mithiii note not to he solil," which indorse- 
 
 leiit toiiiicd part of the contract i)etween the jiarties. The notes wcie 
 
 tiansfcired ti 
 
 itii the word " not " in one of the ahove indoisem'.'nts 
 
 erased (which S. noticed), and in the other the whole of said indorsement 
 torn oil', hut without destroying any part of the face of the note : Held, 
 
 that S. w 
 
 as not ail innocent holdci', and the wurd.s of the al 
 
 ticiit wi'i'c ])art ot the orii 
 
 [lua 
 
 oiitract ; ami the ctlect of it 
 
 'ove indors( 
 
 was 
 
 LMlt ('. d 
 
 isp.isin 
 
 g of tl 
 
 le notes t' 
 
 )ld 
 
 cr lor va 
 
 to pr( 
 
 as to pri'serve to 
 
 the makers all dcfeiu-es and e(iuities, as against the lirst holder and volun- 
 teeis under him : Sn-iushnul v. I luriilsait, .'{ Out. I!. .'{"Jd. 
 
 .\. niadi? a iii>te uiioii the representations on the part of the payee and 
 indorser, as to the foiniation of a company for the sale (d' ;i patent right 
 coiitr<illcd \>\ the payee, the note being given in consideration ol a share to 
 ucli company : iiul it was doubtful whether any such company existed 
 
 It all. 
 
 if so. whether A. 
 
 was ever placeil in tlu' position 
 
 )f i 
 
 leconiing a 
 
 shareholder ; - Held, that as there was nothing on .V.'s part to be rejiudi- 
 ited and reseiinled, A. was not pretdiided from si'ttiiig up thedeleiice that 
 
 it ha 
 
 d b 
 
 obtii 
 
 •d f: 
 
 roin linn 
 
 by fraud : WwUbll v. J 
 
 (ll/IICS, 
 
 II. ( 
 
 The objc't of the legislature in reipiiriiig the words "given for a 
 
 patent 
 
 it" to be on the fai'c of notes so given, is to Lii^'e the tr.msfi ri'c 
 
 notice, and subject him to any defence the maker may have ; ilirrii 
 /htrkr, 1<) (hit. k. L'04. 
 
 Where notes had been 
 
 ith tl 
 
 e words •■ given lor a pitciit right' 
 
 oil them, and subseijuently cancelled, and new notes gi\en w ithout sucli 
 Wiirds ; — Held, that the substituted notes wi're siibj(ct to the same 
 defences as the original notes : fliid. 
 
THE ItlLLS OF EXCHANCE ACT. 
 
 1:51 
 
 Xci/of nilion of liUh. 
 
 Sec. 31. 
 
 Ul. A hill is no'n'tiatod wlirii it is traiLsfei-cil from (»iic N-'f."-'''""" 
 
 O (if lulls 
 
 to anotlit.-r in such a maimer as to coii.stitute tin- ''"'''"','•. „.,, 
 
 J llip. A<'t,P..>l 
 
 lii.l.A<-t,<<.4t:. 
 
 jicrsoii 
 
 tiaiisferoe tlio lioldcr of tlie liill : 1 
 
 2. A bill paval)lt' to Ix.'ai'ei- is neirotiatcd Iiv delivrrv :- I'n.vai.i.'t.. 
 ■'). A 1)ill pavaltlc to order is ne<jotiatcd by tlie iii('.-)rse- i'a.vi<»>ie to 
 
 ' • . onlur. 
 
 iiieiit of tlie holder comph'ted \\y delivery : •' 
 
 4. Where the holder of a hill })ayahle to liis orilcr T^illl^lVl• 
 traiistei's it tor \'alue without nidorsiiiy it, tite tiansier (iors..in.ni 
 nives the transferee such title as the transferer had in the 
 liili,-! and the translei'ee in addition acquires the ri;^dit to 
 have tlie indorsement of the transferer: •"> 
 
 .'). Where any person is under ohlii^ation to indorse a 
 hill in a re]n't\sentative capacity, he may indorse tli<' hill in 
 siii'li terms as to iu\i,'ative personal lial>ility. '» 
 
 ' Tlui iK'gotiatioii iif ;i hill (ir note iiieiins tliat wiiicli is (ji|iiiv;ilfiit to a 
 lUiU'liiiHc (ir .sail' lit" such hill or iK)tu. so as to i.i\ e tlu^ titii' in it to aiiotiiur. 
 I'luTi' liHU^t he tlie nii'iital assent of the owner, and the n.aiinal ;ii-rs oi 
 iiulDisenieiit (it |)ayal)l<' to onlei) and ilelivery, either liy tiic owner or iiis 
 agent. In order to eoiistitnti' a valid indorsement of a hill as against the 
 indoi'ser, there must he thi' writing of the name of the holder, and a 
 manual delivery hy him of the hill with the intention, not only to pass the 
 |iro|)orty in it, hut toguaraiiteu the jiaymeiu, if the ae'eeptoi' makes default ; 
 and evidence of the facts showing the ah.seiiee of this intention is adniis 
 sible under a traverse of the iridor.senient : Ihiiloii \. I\lir^, I,. I!, f) 
 <,l. 1). 475. A negotialile instrinncnt i.s transleiahle to any [lerson hohl- 
 ing it, so as, hy delivery thereof to give a ^ood title to any per.son honestly 
 ae(|uiring it. W'lu're an instrument is, hy the eiistom of trade tr.iiisfer- 
 dile like cash, liy delivery, and is also eapahle of heing sued u[ion liy the 
 person holding it y»y'o /i-mpun, then it is entilh'd to the name of a negoti- 
 alile instrument ; and the property in it passes to a Ikiiui jlih tiansfereo 
 for value, though the transfer may not have taken place in nmrbl uriil. 
 I'>ut that if either of the ahove reijuisites he wanting. /'. (\, if it he either not 
 aeeustoniahly transferahle, yet if its nature he sueh as to lendei- it iij(a)ialili; 
 of heing ])ut in suit hy the party hohling it /</'" ^ mpnn , it is not a nego- 
 tialile instiument, nor will clelivery ])ass the property of it to a vendee 
 however Ihuki jiilc , if the transferor ha\e not himself a good title to it, ;ind 
 the transfer he made out of ///a /•/•(/ onrl: 1 Smilh't Liii<liiiij('iis't'2.'\\\. 
 Iiisti iiuieiits ill the shape of hills or notes, iijdess they ai'e for the pa\menti 
 
 Inilirsi'iiii'iit 
 ill rejiri- 
 st'lilillix r 
 <'a|iiicit V 
 lint. Act, 
 s. 2l>. 
 
i;{2 
 
 THK lilLI.S or EXCHAXGI': ACT. 
 
 Sec 31. of iiu.iicy only, iiro not iiogotialilc : Ifuih/i ■< v. Win/nii, Mart. (\. ('.) 7(>. 
 This Alt <mly deals witli tlif luyotiation and tiaiisfi-T of hill.s and imtej* 
 at'oordiii;; to tlu; ruks of the law-niorcliant. lint wlitio tlie transfur is liy 
 aid of the law, tlie iiilo.s of the general law govern as to their transfer as 
 chattels, or vhosia in <ic/ioi). See the derinition of holder s. '2; and of 
 
 ' holder in due course. 
 
 •-'•». 
 
 'I'he efl'eet of the transfer of ax,- h a liill or note l)y delivery, is delined 
 
 in s. ns. I'rior to IST'J tlie ])onds and delientures of e 
 
 onuianies 
 
 an<l 
 
 cor- 
 
 l)orations, even although [jayahle to hearer, were not transfi rahle : Woal- 
 siifc V. 'Idi-oiilo StnrI niiihra,/ Co., 14 (uant AW. lint l.y o,") \'ic. c. VI 
 (now H. S. (). 1SS7 c. l-J'J, s. it), the bonds 'H' delientures of corporations 
 made ijayalile to lieaier, or to any person named therein or hearu', may lie 
 transten d liy delivery, an<l if payalilc to any person or order, shall (after 
 a_!4enei:d indorsation thereof hy such person) he transfeialile liy delivei'y. 
 
 theti 
 
 if ihe j 
 
 ndorseinent. See the definitions of "li 
 
 am 
 
 lof 
 
 <lell\ frv, 
 
 d tl 
 
 ■llect of ddiverv of a liill 
 
 ir nciti 
 
 :: 'll 
 
 fered 
 
 lis IS 
 
 tl 
 
 le more n 
 
 snal 
 
 liractitc ot negotiating iiills and notes. '|"i 
 
 or ncLTi 
 
 tiatec 
 
 means passei 
 
 ay fiom the original Jiolder t< 
 
 another per> 
 \V,lhirl,,i. L 
 the natiii 
 
 n ; jiresiiitment for acceptance is not negotiating : (Irijjhi v. 
 
 (.». 
 
 nil. 
 
 V. 
 
 very indorsement ot a liill operates m 
 
 (■ ot a ne\v draw iiii, 
 H. 141. The .liHeient kinds 
 
 if the 
 
 it 
 
 ndorse 
 
 ill : / 
 
 IIK'llt.S 
 
 are deli 
 
 1 C. M. .t 
 
 ss. ;;i2. ;i4. 
 
 ;!."). The title of a holder of a Mil w ho negotiates 
 in ss. -J'.l and .SS. 
 
 ll.M SIKATIONS. 
 
 t //( 
 
 liili 
 
 IS Ul'Scl'l 
 
 Where a note is tiansferri d liv an au( nt without atithoritv, if tli 
 
 owner ot the note afterwaids latilies theaet. the tian 
 
 sfe 
 
 to the time it was mai 
 
 le liy 
 
 sue 
 
 h ayent : /' 
 
 I'.fiiii. 
 
 V. MrKiU., 
 
 ill relate liacdi 
 It, ') Ind. '2(11. 
 
 ll 
 
 le w lit ill"; I 
 
 if 
 
 niiloix nient : ) oiiini v 
 hoi/, 'Jll 111. \)-2. 
 
 Clu, 
 
 an imlorser on 
 •, W dur. N. S. (i:}7 
 
 the fa 
 
 //. 
 
 a. I III I IS a u<ioii 
 
 I'l'ill'l V. H UOl/- 
 
 A .special indorsement doi's not transfer the ]iroperty in In 
 
 lis of 
 
 until (K li\ery ; I'l.r v. /.ii/n/ifon, ."i Price 4'JS. 
 Due V. gave 1!. a liill drawn on I'. ])ay; 
 
 exchange 
 
 lie to r. 
 
 or Ins oriier. 
 
 ards a w rit of attachment under the Inxdveiit -Act issued 
 
 Afte 
 
 1st 1! 
 
 who thereupon indi ised and deliveiid the liill to 1'].. who sulisi'(|Uently 
 inddised it to the jilaintifl'; — Held that as tin plaintill had no notice of 
 
 llisolveiu \' 
 
 BV. 
 
 I'uus. it I! 
 
 h 
 
 a.'is. 
 
 ititU 
 
 J/- 
 
 J/„ 
 
 V. /hirii/s 
 
 T 
 
 ■H'ect of a tiansfcr without indoisement is to 
 
 the t 
 
 rausfeior 
 
 »i.;h title as that held liy his transferee. The statute l< it 4 .Anne c. !l, 
 providi'il that promissory notes should \n) assignable or indorsahle ; and 
 anthori/ed the holdir by either nioile of transfer, to lirii;;' a suit in his (<w n 
 name against the pii'sons liable thereon. The ordinary rui' of law .is to 
 tlie transfer of bills and notes is only intended to apply to tian.iers niaile 
 ill the ordinary and usual manner, whereby a title is actiuiied, according to 
 
THE BILLS OF EXCHANTiE ACT. 
 
 1.S.1 
 
 the I.uv-inrrcliaiit ; .iiiil imt to a transfer wlii'li is valid in I'nuity accord- SeC- 31- 
 iiii; to till' doctrine respecting tlie assignment of t7/o.v( .s /// wlloii. Until the ' 
 
 liolder obtains the indorsement of his transferor, he will he iitl'eeted «itli 
 notice of a fraiul attaching to the hill or note while it wa.s iu Ills traiia- 
 fcror's hanils. 
 
 Tl.MSTKATIONS. 
 
 A mere discount of a hill, without the indorsement of tint person who 
 receives tlij money, does not give the holdei- of the hill a;i_> claim against 
 siich party fcjr the money advanced ; J'J.c /xtr't /{olnrfs, '2 Cdx 171. 
 
 list the estate of his trai 
 
 isteror 
 
 Xor can such person [irove a claim 
 
 insoh-en(;y : h'.r jimi) Sltidlli ir nih, ,'{ \'fs, .'itiS. 
 
 iSut if such note is indorsed, aftei' the transferor's insolvenev. it liecomes 
 
 petltionil!',' creditor s delit 
 
 ll 
 
 A'.. 
 
 /"< 
 
 •h Till 
 
 1 Atk 
 
 ■A. 
 
 The transfer hy deli\ery only of a note payahh' to order, hut not 
 indorsed hy the payee, uives hut an e(|uilal)le title, and the transferee 
 
 it sulijeet to all eipiities again.st the [layee : .V' // 
 
 iit'iur v. 
 
 L 
 
 I/IIKII 
 
 1(1 Ohio St. '2S;{. 
 
 Where the payee of a note die-s without hiving parted with its posses- 
 si'Pii, it cannot he further negotiated without a new indorsem.-nt liy his 
 liersonal represent itives. An indorsement written hy the [layee in his 
 lifetime is not sulliiieiit : L'lart v. SiijunriK j, 17 C'onn. 'u\ ; s. p. A'/'o- 
 
 ///f»;/'- V. Ll'ii/'l, 1 Ivx. 'A2. 
 
 S. transferred a note for value 
 written agreement to he res[ionsil»le for t 
 
 to < i. without ind 
 
 orsiii'' 1 
 
 t, hut 
 
 amount ot it to ( i. 
 
 ilegotiateil the note and agreement to M., after which all the ))rior jiarties 
 
 to the note hjcanie iiisidvent ;— Held, that M. 
 
 not pi-ove aj;aiust ( i. s 
 
 estate, hut was entith'd to hive tip' amount made an iti'Ui in the arcoiint 
 
 of < i.. and to stain 
 
 lu his iilu. 
 
 /,'. /, 
 
 Uirrimiln,,, •_' Sch. >.t I.ef. 1 I'.'. 
 
 1 
 
 n order to ]) as 
 it, ti 
 
 the titl. 
 
 the tr 
 
 ransii-r must ne ma 
 
 th: 
 
 de 1 
 
 )V iiiMorse 
 
 le nHlors^'iiK 
 
 nt of a document yiven as a rc.-c 
 
 ipt f( 
 
 di hill 
 
 not ])ass to the Iraiisfcree the legal title: ddnkhi v, /'Ifli'inlsnii, 1 1 Ala. SS!t. 
 
 If th 
 
 ho an assii'iunont of a hill or note witlmut indorsinu nt, tii 
 
 holdc 
 
 ill M 
 
 reliy ac([iiire 
 
 th 
 
 same rights onlv 
 
 h 
 
 icnuire lllion 
 
 the assignment of a hill not negotiahle. If hy mistake, accident, or fraud, 
 
 a 111 
 
 11 
 
 las lueii oi 
 
 iiitted to he in 
 
 idorscd upon a transfer, mIkii it was 
 
 itiiided that it should lie. tin- jiarty ma\ 
 
 iniielled h\- a ( 'mirt of 
 
 uity to 11 
 
 the indorsement ; and if he afterwai 
 
 Is h 
 
 ome in>ii|\cnt 
 
 this will imt \ai\- his right or duty t<i make it ; and if 
 
 |C 
 
 lioillil 
 
 III 
 
 ills 
 
 .'utiiis iir administrators wil 
 
 it : S/ofi/ mi 
 
 llil/s- 
 
 conipi llalile in like manner to make 
 
 ^fe 
 
 'JOI. Wlirre a hill or note rciiiiirrs thr transferor's 
 
 ind' 
 
 irseliient in order toccpmiilete the titl 
 
 I' ol a liol<ler 111 due ciiiirse, sncli 
 
 jh 
 
 transfLior will he ordi red to indorse such hill or note 
 
 l:i \'es. "2110. Ihit a hoi 
 
 if SIR 
 
 ll 
 
 111 
 
 ir/i. (1 
 
 I null/. 
 
 V ii"te has no aiilhuntv to indorse 
 
 tile 111 
 
 11 in the name of the payee, and sign it p' i' )> 
 
 where such indorse 
 
 it ha-i hei 
 
 niittcil liv mistak 
 
 U 
 
 voil \\ere to allow this, it Won 
 
 ihl 
 
 Very dangerous to intidduee into contracts upon \\ liiili so much wealth 
 jii'iids, the principle that a party may supply the indorsing of a name 
 
 which had heeii omitted liy iiiadvertanee 
 
 Krle, <;. ,].. in // 
 
 iiri-Di 
 
 Fi^hi 
 
 lur 
 
 -N. 
 
 10.V.>. 
 
I.H 
 
 TJIK I'.II-LS <)l' KXCHANC!!'; ACT. 
 
 Sec 31. 
 
 of indoisi'- 
 liicnt. 
 
 Imii.Art,«,:i'2 
 Ind. Aut.s 15 
 
 Signnturu 
 of inUorsiT 
 on hill. 
 
 • Ill alloii'ji», 
 
 I'litiiT liill. 
 
 I'srtial, not 
 ii('-'(iti;ilile. 
 
 All payi'fs 
 must iudiii'se 
 
 Mow mis- 
 .spidk'd 
 piiyeo, fu:, 
 may in loisp. 
 
 Order of 
 iiidiiiM'iiuMit. 
 us ill hill. 
 
 Ilmstkation. 
 
 \VluTc; A. frandiilfiitly olitaiiU'd a hill imyahle to order from T?. aiuT 
 haiiil(Ml it to ('. ill satisfaction of a Imiid fii/c dcht, Imt witlioiit iiidoisiiig 
 it; — Held, that ('. fotilil nut ac(|iiiiu a titU; to tliu Itill hy obtaining A. 's 
 iiidoiscniciit after lu; iiad ruciived notieu of the fraud : Wh'iMhr v. Fo.-ti r, 
 14 C. I!. N. S. '2iS, S L. r. N. S. ;il7. 
 
 '■ See eases eited in the notes to s. l(i (I), as to limiting or negativing 
 liahility ; and in the notes to s. 'Jd, as to aecejitances liy persons in a 
 representati\X' eiuiraeter. 
 
 li^i. All indorsement in order to operate as a neootiation 
 ninst comply with tlie t'ollowino' conditions, namely : — 
 
 ((0 It must be written on the bill itself and be signed 
 by the indorser. 'J'he simple sio-nuture ol; the indurser on 
 the bill, without additional words, is suHicient; ' 
 
 An indorsement written on an allonge, or on a " copy " 
 of a bill issued or negotiated in a country where " copies " 
 are recogni/ed, is deemed to be written on the bill itself; - 
 
 (h) It must be an indorsement of the entire liill. A 
 partial indorsement, that is to say, an indorsement which 
 purports to transfer tc the indorsee a part only of tlie 
 amount payal)le, or which purports to transfer the bill to 
 two or more indorsees severally, does not operate as a 
 negotiation of the bill ; -^ 
 
 (e) Where a bill is payable to the order of two or more 
 payees or indorsees who are not partners, all must indoi'se, 
 unless the one indorsing has autlujrity to indorse for the 
 others : ^ 
 
 '2. Where, in a bill payable to order, the ])ayee or in- 
 dorsee is wrongly designated, or Ids name is misspelt, lie 
 may indorse the bill as therein descri])ed, adding his jiroper 
 signature; or he may imlorse by his own proper signature:*'^ 
 
 ;>. Where there are two or more indorsements on a bill, 
 each indorsement is deemed to have l)een made in the 
 order in which it appears on the bill, until the contrary is 
 proved : 6 
 
Tllb: l!ll,I,S OF i:X('lIAN(iK ACT. 
 
 185 
 
 4. An indorsement may lu' madi' in lil.-uik nr >,[ic('ial. It Sec 32- 
 
 may also contain terms making it rt'>trictivt'. 
 
 ' All " imlorst'iiiciit " of ;i liill is dctiiu'il ;i-i mciuiiiiur :ui iinlnrx-iiiiMit in 
 « ritiiig c()iiipli!t;;il l)y (It'livcry. W'luMf :i tmii iiDtc lirul Immii piistcil wynu 
 ;iiiotlii r pici'f of paiicr, an indoi's; ini'ut of tln' uotv may \)v luailc on stii'h 
 iitlii-T |)a])cT itself ; and in tint lasc it is not niH'cssary to pif)\<' when tliu 
 iiidorsciiiint \\as made : Cnilrhii< hi v. Ei(.<fiiii. 1,'? Ala. ."ilJT. "I L;nai'.uitee 
 tlie piiynient of the within, " indorsed on a note oxer the ^iL;■|latnl•e of the 
 payee, is an indorsement if tin- note, and not a ynarantee or collateral 
 
 How ill- 
 
 ■Inl-M'llli'Ut 
 
 iii;iy In'. 
 
 agenient for its payment: il'"//' /• v. O'/e 
 
 • ■nj 
 
 indorsement written with a peneil 
 
 ;ih, 
 
 V. V 
 
 III). 
 
 did 
 
 I ('/•// V. 
 
 /'/-/ 
 
 Ai 
 
 i:. A V 
 
 •J34 
 
 )., Gliixsoi) V. Si< 
 
 A Vt. 11. 
 
 See tin 
 
 ■ IS(.'S Cltl 
 
 to acceptaneos of liills of exehanye : and as to deliveiy, see 
 nejiotiation, see ^. \M ; as to .siitnature iiv an aii'ent. sc 
 
 to 
 
 ".Id; as to iiidoi-.sL- 
 
 it of hills ill a set. 
 
 see .s. 70. 
 
 '-' An iilluini' (or rider) to a hill is a term whieli has not heeii inter])nted 
 1 the Aet. \\'hi;re word.s have heeli'loiiir used in a tc'dliiieal 
 
 ~ense, ,iii(( 
 
 Irive heeu in 
 
 dieialiy eoiistrii'd ti 
 
 ave :i iiartieiilar imaiiini. 
 
 d 
 
 li ive 
 
 lieeli 
 
 idoiited 1)V the [..e^i slat are as haviiiLr a i-ertain nieaiiiii'.', prior to 
 
 he statute in whieh the\- are used, the ru 
 
 le of 
 
 eoiistriietion reiniir( 
 
 tiiat 
 
 tlie words usi 
 
 d in siK'h statute should lie eoustrue' 
 
 aeeorlinu to tin 
 
 jnse in whieii they have I.>:en ^o previously iisi;d : J'iirkiiU(!i(,(/i v. /.ii/lonh- 
 
 h;,/, S Moi. P. ('. C. 4 
 i^ ne(;ess:iry wiieii then 
 
 i\ ril/diii/' is a pa]i 
 
 lliexed to the li 
 
 is no room on the lull for fiirtlur iiidoi-ciiunts. 
 It lieeonie.s a part <if the hill when the imhuseineiits arewiitteii on it. 
 Whi-re tlu! eopy of a liill i.s used, the ]iersnii wlui eiliulites the eopy 
 
 !loU 
 
 hi tr 
 
 rilie the liody of the liiil and all the indoiseineiit.- 
 
 after all. should write : < '(i/)>/,--//ii- i,ri;/lii'i/ '>' imj n-'iili (naming' t;:e persoiiK 
 If he should omit to state that the hill is ,1 eopy. (ir should write his own 
 
 ilor.sument after the word 
 
 a I original 
 
 />■'//'■ 
 
 i''>jii/, he may lie''ome liahle oil the eopy .as on 
 /////.<, .'ill. A "diiplicate" or •■(.■o]iy " ot a hill may 
 
 !'■ used in the eountries iiieiitloiieil on ]i. I.i. 
 
 •' liy the Law niereliaiit an indorsement must he of the whoK- liill : I'fii/ 
 I'ltx.Xi'r'ill, I,. 15.4 ( '. r. .'{."iS. The followinu forms (,f iiidorsinicnts 
 iM.ay lie rend as illustrations of tlu' dillV'reiit niudes of iiiilipisiii;,' hills. 
 ".lohn Smith" in all these forms is sii[iposeil to repri>eiit siphly, or with 
 
 I, is 
 
 parti 
 
 •Will 
 
 iam St^ les. 
 
 th 
 
 payi 
 
 id tirst indorser of the hill 
 
 Indorsement liy dr.iwer or payi 
 " .lohn Smith.'' 
 
 'e III hialil 
 
 S CX\ 
 
 (41 
 
 d WW 
 
 •J. 'I'he 1 
 
 ike iiidorsenieiit li\' the linn 
 
 •-';{ [I.) 
 
 •Smith ^ (' 
 
 partiu'r : -"./' 
 
 ilf (iiiil WiHiiiiii S/i/lis, .Inliii .''^mitli. 
 
 ;i. The like indorsement liy an au'eiit. (ss. 2') and 'lit}: — ",!< r/i/. iif/nr Julii 
 
 ■"■^iin'tli, .John 
 
 Ad 
 
 ims 
 
 Jii/ii.- Siiiifli, III/ lii.-i (I'ji III, ddhn .\i 
 
 or " jii r /iriii'iirffiinii 
 
 .Ivliii Siiiiili. .lohn Adam 
 
 .\iid till 
 
 dd ti 
 
 ) lu.s sioiiature, 
 
 ■illioiit n:iours>- I 
 
 ^eiit m:iy 
 
 (/ )tie as (iiji III. 
 
l:}(; 
 
 TIIK I'.II.I.S OF KX( HANCi: ACT. 
 
 Sec. 32- 4. Qnilili^d imlin'stMiiout to avditl ))cf.s(.MMl lialiility (s. 10 (cf)) : — " .Ifil 
 
 111 
 
 Sniilli, irl/hmif 
 
 r( rijilf'O 
 
 or, 
 
 hii Siiiitli, -^riKs ririiiirx :" or, 
 
 ,h 
 
 Nlllltli, iri/li ill/ill/ mil II lo h-aiixjrr mij 
 
 tilli iiinl iiitiris/, niiil not li, 
 
 hi mini siihji li III anil /iiihi/l/i/ in case of iinii-iim/ilinifi' or iioii-/i<iiiiiii'iil . 
 
 iiilMist'iiiciit ill fu 
 
 ;//;, 
 
 ,S/ii/'M, or ori/ir, .loliii Smith 
 
 •ial (MS. S (1), 8l> (4), ami lU (-')) : — " /'<'// 
 
 Vi. l{('striiti\>' iinlfiiscmciit in favour nf iml 
 
 '• /'"// Williiiiii Sli/li-.i. for iiifi 'isi 
 Sfjl/ijs, j'nr iilfl iirroiliil . Jiiilll Slilitil. 
 
 nvMT (ss, :V2 (4), ,'111(1 3.'>) : 
 .liilm Slilitil ;■' or, " A'.'/ Williui 
 
 7. Hrstnrtivi 
 
 ilv fs-.. S. :{•_' (41; 
 
 si'iiii'iit, ill favour ( f imlorsLr, or of a iiMiticiilar ])ors(ii 
 
 •>): 
 
 •/'nil III WilHiiui Sli/li •< oiilii..\o]tM Smith 
 
 or. 
 
 '/'III ir'illiin til III rrnliliil to l\'iHiiiiii Sliili.<. .loiiii SmitI 
 
 8. ( 'oiiilitJoiial iiicliirsciiK'iit iscy s. lit ("2) (a) as to comliti 
 
 (iiial ai'i-op 
 
 itaiii 
 
 il s. .■{,'}) :--■' /'(<!/ W'il/inni Sti/lis, or onhr, niion hit iiirimi up 
 /III' r hills iii-i'i jiti il hij nil, mill nmr In III hi/ liiiil. .lollll Smith. 
 
 Ihi 
 
 (). Partial urlimitcil imliirsfiiient (sic s. !!•(-) (/') as to jiartial actciitaiicc 
 ami s. ."i'i [h ):-'•/ '(11/ WiHinni Sli/lr.", or order, ■Slim, jinrt of I In 
 irlthiii, .Idhn Slilitil.'' 
 
 Si'O fiirtlicr. till; notes .ami cases? citud to s. 10, ;\s to tlio (liU'orc'iit lllOll^•^■ 
 of acctptiiig !)ill.-5 of (.'xclianj,'!'. 
 
 Tl 
 
 K' iiMorsi'iiii'ii 
 
 ' Il.l.l S'tliATInNS. 
 
 t rif a hill hy oi;(.- iiaitiirr in his <i\vii nanio docs not 
 
 pass the Icl; il title ; yet as each partner has the ,/»< iHs/inin mli therei 
 the transfer hy one i>artiier jiasses tlie entire eipiitahle li^lit. nnli 
 
 le,l 
 
 Ala. 47(i 
 
 assai 
 
 upon some ade(|uate j/rouin 
 
 I lull 
 
 iiinm <(''• Kii, V. Iirninnid, o.) 
 
 <l. 
 
 \ note made to ))artiiers in their iiidiviiuial iiaines, may he indorsed liy 
 
 one of tlie ))artiiers in the (inn's name : .1// 
 
 //- 
 
 ■(/, 1 hid. •_'.")(). 
 
 One of St veral exH'entors may transfer a note hy iiidorseiiieiit as eollat- 
 
 eral seeuiity for il iud^'iilent against the estate: Wlnilir 
 Coweii ;!l. ' Sill rniifrii. >intith V. WlntiiKj. '.) .Mass. ll.'U. 
 
 'Inrli 
 
 A note made hy several ]iersoiis ]iayal>le to '" o 
 
 ur ami i at 
 
 :di of 
 
 our order, 
 
 and indorsed liv one is good: Ah-^nlo 
 lOKi 
 
 Marts, 11 O. l;. 1<) ; 11 Jl 
 
 If 
 
 lawn hy two, jiay 
 
 ihle t 
 
 () • ■ Us or our on 
 
 ler, "' and suhserilied 
 
 hy Ixith, thoiieh not in ]jartiierslii|i. tin \ make tliemselves partners, 
 by the form of the hill, to the ell'i'et of making an indoist-meiit hy oik 
 
 if tl 
 
 lem \ alii 
 
 ,/.■ V. r/c/,', 
 
 '•.'/. 
 
 ■J l>oULd. Cm:; 11. 
 
 A. and I'.. Were |i;iitiiers. 1>. fraudulently indorsed hills belonging to 
 the partnership to ('. for a private delit, (,'. having iiotiee. li.'s assignees 
 ill iiisolvi ney re]>udiated the right of ('. to the hills :— Held, that they 
 could <lo so. and tint the partner .\. \\as rightly joined in the action : 
 
 //iHhiit V. Xiriir L. w. 4('. I". :i.-.4. 
 
 w 
 
 leii a person si;,'nr 
 
 a noli' on a rejireseiitatioii that others are to j( 
 
 and one afterwards refuses to sign, tile payie eaniiot recover agailit the 
 persiui wlio sIljiumI it, unless the jury is satisfied that sueh jierson, know- 
 ing the facts ami heiiig aware of his rights, consented to waive his ohjec- 
 tion : Lml' v. Ilihli.^. 4 V. & 1'. 4(;(i. 
 
 See further the iiott 
 
 HI eases to ss. z,i 
 
 d '2i; 
 
11 r; t'.iM.s OF kx(1ian(;k Air. 
 
 Il,l ISIKATIOSS. 
 
 W'liricvcr f)iir ('111 i-tiati iiaiiic qiiMius ^iviii tn u li:uty in full, with ,i 
 <■ ijiitiil letter hcforc ur alter it, besides the mm ii iliie, tiie {unit will in't 
 iissiiine that the party sn di'si'iiheil has anything; iiii>ie of a name than is 
 tiiiis Lfiven to him, iiiiil this without ilistinetiim hetween vowels ,inil con- 
 <iiiai.ts : Ihiiik III' I'jt/ii r Cmidihi v. < !irii 
 
 il lUnik V. Iluhli 
 ill : Miiirw .III 
 
 V. (.(J 
 
 r. c. (». 
 
 mil, 7 l'. ( • *,•• Is. IJ'i : ('iiiiiiiiir- 
 
 CIS ; 1)1,11.1. ,11 V. i!..iji<i-h, (; r. c. (,». Ii. 
 
 W lieie the inilorsenient of il note was '" l'a\' the ra-hiei- of the liaiik 
 
 A. .or to W. I''. , their aycnt '" 
 til it eoiihl imloise : Frfci.-r v 
 
 .f tl 
 
 ; II. hU that \V. r 
 Mdurr, 1 I Tex. 7">"). 
 
 tl 
 
 le only [leison 
 
 \ liiil draw 11 in favor of tlu' eashier of a hank liyhiKown name, only 
 es the li.iiik a hciielieial interest in such note, and the lia.nk cannot sue 
 ■Il liill in its eorjiorate naiiu^ : li.iiik of I'/i/nr ('iiiirii/n v. /'ulfnii, "i'J 
 
 r. •'.<.). IJ. 4."il. lUlt se.' /I'liik nf' flu I'llili.l Slilt.s \. I>i 
 
 \ (' 
 
 ■h 
 
 ( . (' 
 
 :{.•{. 
 
 .\ note jia.N'alile to tiie oi'der of .lohii 1'.. a pei'soi 
 
 1 III I .<si\ eaunot in 
 
 t h. 
 
 liy .)ose|(h 1'. , a ditl'erent iierson, althouL;li tile note was in fact 
 .'iveii to .Joseph 1*. for a valiiiihlt: eonsideiatioii, and not to John I'. : 
 
 /;..;/-. V V. Sic 
 
 11 Cush. (Mass.) ,S'JO, 
 
 See fiirtlier the cases eiteil in note J to s. 17 (Mi )). i!7 ni]!.- 
 
 " The etiiMjt of each indorsement of i liiil is to eive to tluHiohh'r a 
 
 iTUa 
 
 rantee that the prior siynatu 
 
 res ot di'Wi'i' aiui indorsers are r 
 
 •iTuli! 
 
 and L;enuine (s. .")")). and tliat earli inddis.'r is an additional surety to 
 Iniii for the due payment of the hill .nt uiiturity. I''.veiy indoiser of a 
 liill is a new drawer : and it is part of the iuhereiit property of the original 
 instrument that an imlorseun'iit operates in the iiatuii' of a new draw in^ 
 
 1 ('. M. >v i:. til. 
 
 ne derisions 
 
 of the hill hy him : I'limii v. /;/// 
 
 in e.ises \vliere tlui order of the iiidoisemeiits Ins not heeii ill tile order 
 
 I't transfer, or where a sur<'tv has indoi'seil liefore the pivee, iiidieato 
 
 >iii 
 
 !• exceptional peculiarities wliiel 
 
 1 lla\c 
 
 not ma 
 
 le til 
 
 em uniform. Sec 
 
 ill the notes to ss. (i, '2S, and oO. As to eases allectiiiir indorsers 
 
 [l.S 
 
 co-sureties int. 
 
 ,see notes to .s. f,!) (,'!. ) 
 
 Ii,i,rsrn vTioN- 
 
 ,V s( lid indorse!' ina.y recover from tlie first indorsi'i- the I'o.-ts of a 
 
 suit to enforce his liability without a speei il e.iunl of ;inv further proof 
 of ,111 expres.s reipiest to defend : Fn.c \. Sn/.tr, l.S U. ('. i). Ii. "-'-"iS. 
 
 has security to the first 
 
 Hut where a second indoiser had iiuh 
 
 irse.l a no 
 
 II, 
 
 r for the amount of the note iliie to him upon the settleiiK'iit of 
 lints of a iiartnersliip. and with an uiiderstaiidiui,' that M. should 
 
 dorse the note after the such first indoiser; — Ihdil. that 1 
 
 le was lialile 
 
 to the prior iiidoisei' ; \Viivilsii:,,ili v. MiDunjft//, s 1'. ( '. ('. I'. 4():{. 
 
 I lie jiayee of a note indorsed in blank eaiiuot liv imieiy writinj^ his 
 li.iiie aiinvi' the indorse!', sue as indorsee aniiust the latter iinles.s he 
 cm shew an agreement creating between them the rehitionslii]) of indorse!' 
 ami indorsee: Rohir/Kiin v. IliiihurL-, l,j U. ('. (', I'. -JilS. 
 
 Where it ajipearson a note that the ]iirty assumes tli • respMiisibility of 
 a second indorstu', the locality of the names on the note is immaterial : 
 
 Huron V. liiiriiHtim 
 
 :m \. V. (ii4. 
 
 Sec 
 
 i:}7 
 
 32. 
 
I:{S 
 
 TIIH KILLS (iK i;X(lIAN(iK ACT. 
 
 See- 32. I'.utics to lii.tcs ;iic iiiiw liilil liiililc. ((iiitiiiiv to the older cmscs, in tli^ 
 
 Older on \\ linli t liev s 
 
 t.'iiid 
 
 on the note ; :iiiil till' l.i 
 
 ■;t liol 
 
 (ler may so tre:il 
 
 tln.'lii, liotw illi.stMiiiiiliL.' aiiy iii^ii eiiielit iiliiolig tlieinselves, and altlioiiL'h 
 some one of the latter )iaities may lie tiie jieismi for w liose aeeommoda 
 tioii it wan made, ami wlio, theiefore, is ultimateh' lialile illion it : and 
 
 tllis even wlieii tlie liolder is aware i 
 <,>. I>. '-'40. See liiii.-iiii V. /',/,.•/, 
 Miihini, AO V . ('. (.>. P.. \A{\. and note t 
 
 if tlie laets : /•,'/-/</■ v. A'' '/(/, S U. ('. 
 :{ r. C. C. p. 4:i!), muX Fl-bn V. 
 o s. .")!•, siil)-s. t'{. 
 
 Conill 
 iiidorHemi^iit 
 
 tii'iiiii ',\;\ W'liciv ii liill imrpoi'ts to lie ijidoi'.scil coinlitionalh- 
 
 flip Art, s. the coii<liti()!Miiay lie ilisrcgaitliMl by the jjayei', and ptiy- 
 
 3:t. Ind 
 
 A.-t,8.5o.\; Mieiit to tlie' iiiddi'see is vaUd, whether tlie condition ha> 
 
 62. 
 
 heen f'nltilled, of not. ' 
 
 Tllis is new law ; and will tlierefi 
 
 re only 
 
 Iv alleet Kills and notes niadf 
 
 iiftiT the time tlie Aet <diiies into o[i(.iation. Prior to tliis enactment it 
 
 as held that if the payee of a h 
 
 xed a condition to his indorse- 
 
 ment, tile drawee 
 
 e, w ho atterwards aeeepted it, \\ a.-^ 
 
 Iioiind hy that 
 
 dition ; and if it was not peiformi'd the |)id|ierty in tlie liill reverted to 
 the oriiiinal ]iayee, and lie eoiild recover the amount of the hill ai,'ainst tlie 
 aceeptor : KhIk rl-«)ii \. Ki uxhujlon, 4 'I'aiiiit. 'M). Though the telliis of the 
 elanse are largo enoiiyh to eiialile the " immediate pal ties " (see noti' 4, 
 
 p. 8.S) t 
 
 o (iisreLrard the comli 
 
 itioii, it may lie ])resii7ncd that the contraet of 
 
 such parties would he liiiiding, and that the ])ayee would not lie allowed tn 
 vary tln^ legal and e(|nitalile rights of the other pai'ties under tlie emidi 
 
 tioii s))ecitie<l in the indorsemeii 
 Doug. (l.ST, and /,';// v. I.nni It 
 trictive indorsements. 
 
 t. See also Ari'/ii-r v. liiiiih nl' EiujIkihI , 'J 
 /•', 1 •_>(,». J5. .SIT ; and s. .S."i as to rc-i- 
 
 |r,<i..r.<.Mii(>nt ^(4 An i tidorsciiH'iiL in Idank speciHes no indorsee, and 
 
 ill lilaiik 
 Imp 
 
 Art,s.:;4 ;i, l)ill so iiidorseij heeoiiics navulile to liejirer 
 
 irt s lli_ ' • 
 
 Inil.Act.s.l' 
 
 S*|)c-(inl in 
 (liitst'ini'iit. 
 
 '1. A special indor.'^enient speeifles the peison to wlioiii, 
 )i' to whose order, tlie hill is to he jiayahle : ' 
 
 of uii'.'.'''' '^' 'I'''*' 1"'"^'^'""^ *''^1'^'^ -'^^'t delating to a payee apply, 
 with the neeessarv modifications, to ;in indorsee under a 
 
 of Ai till 
 i lull I 
 
 Special 
 
 liidoiseinent : - 
 
 coiiy.TMoii 4 Wlu'ie ii hill lias heen indorsed in hlank 
 
 iit lilanii 
 iiiclor,<oiiicnt. 
 
 anv 
 
 hold 
 
 iT 
 
 may cnnvcrt the hlank indoiscmeiit into a special indorse- 
 ment hv writino- iihove the iiidorser's sionatnre a dii'ectioii 
 to pay the hill to or to the order oi! himself or some otlur 
 
 I 
 
 )erson. 
 
 ' Till! Act specifies several kinds of indorsements which will 1)0 fo 
 illustrated hy forms in note \\\) to s. ,'{'2. 
 
TUK lUI.I.S OF KXClIANfiK ACT. 
 
 !:!!> 
 
 T 
 
 It'Sit JH'ovisKHis ill 
 
 itlicrw ist' iiidiuiitfil w itii r( 
 
 'I'litit the |iiiytf (iii(loisot') must l)c iLiiiud (u SeC 34 
 t'iisunalilt' cfrtiiiiitv, " (s, 7.) See jilsci s. N. 
 
 'I'liin is tisuitl ill liiiiik 
 
 l)iil.s or iiDtt's are discnimticl toitlic 
 1 us liiwsiiul' A.I». I (ISIS. Sue 
 
 ecoL'lll/t'i 
 
 ICC, indorse 
 
 l)f'ii('iit of the ctistdiiicr. It hiis liceii r 
 
 C/,d- V. r;<jn/, !•_> .\r<„l. UVl llut in tlie I'lovince of (,)ncl 
 
 iiK nts ill liiank iMii only he validly made li\- liaiikt'i-s. hrokci.--, and iiier 
 
 rllauts: Hdllk l>f MdlllVKll \ . lAIIKjIdK. ',\ \\v\ . I.l'li. SS. 
 
 li.i.i-.vri;ATioN>. 
 
 If A. the druuer and payee of a liill indorse it in Mank to 1!.. who, 
 uitlioiit piittiiiif Ills own iiuloi'semcnt on the hill, wiiti's over A's. indorse- 
 iiMiit. a special indorsement as " I'ay tiie t'onteiits toC": 15. cannot he 
 
 d 
 
 m indoiser hy a suhsi'ouent lioldci' : I 
 
 I4l 
 
 // V. Ilnnli,rh\ I ( ' 
 
 'I' 
 
 All indorsement in hlaiik is an ahsolute assignment to the imlorsee, ami 
 iiiiiirehends lii.s assijiiis ; iin<l ujioii it tiie indorsee may wi'ite Avliat in 
 dl. and may till ii|> tiie hlaiiks as he pleases : J/o/v v. MiiKiiiini, C'onivi :■ 
 
 I. 
 
 .\ iiill imhirsed in hlai 
 
 IK. \\as a 
 
 fteiwi 
 
 doi'scd liv A. SI 
 
 icc'iallv to 
 
 i;, w. & cv 
 
 o. , who can 
 
 i.'d 
 
 on liiisiness under the lirii 
 
 .f i;. w. .v (' 
 
 d the l'".ast\vo(id (ompaiiy. indorsed the liill in the name of tiie Fast 
 d Company. 'I'lie liill \sas duly presented, hut jiayment was refusci 
 
 fni- want of an ind( 
 
 lit hv U. W. iS; Co. :--Held. that the hill liav 
 
 iiiy iieeli indorsed in lilaiik. its negotialiility <'ould not afterwards Ik: r»'s 
 trained hy a sjieeial indorsenieiit ; and that the jUesentnieiit was such a> 
 
 til render .V. lialile on his indorsement 
 
 II >(//■! 
 
 MrI),,Hiihl, '1 Kx. 
 
 Where a hill is indorsed in lilank, and is transl'crred hy the indorsee liy 
 ill liviry only, without any fresh indorsement, the traiisfi'iee takis as 
 igainst the acceptor aii>' title wiiich tiie iiitermediat 
 
 l'(iircliiiiii/i V. /'drill. ',) K\. ()!IU. 
 
 e lliiloisefc possessed 
 
 'I't. All iiKiofM'iiiL'iit is rcstii('ti\r wliicli pixiliiliits tlic i 
 
 c-lrii'livi' 
 mil r-iiiii'ii t 
 
 ruitlii'v nou'otiation of tlio l)ill, of wliicli cxiifcsscs tliat il iiitini'ii 
 
 . . . iiiip.Ai'i,-.3a 
 
 is a mere autliority to deal with tlic liill as tlirrcln imiAit.s ao. 
 
 ilirc ;te<l, ami not a transfei' of tlic (i\vii«'rslii|i tlin'rof. as. 
 
 fur exainplc, if a liill is indoi'sfd " i'ay ]) didy." or " I'ay 
 
 1 ' for the aceoiin 
 
 t (if X, 
 
 Ol' 
 
 a\ 
 
 J), 
 
 <it' (inlrr. tdi' cdllco 
 
 tioii 
 
 A re.sti'ictive indovscmeiit uiv(>s the iiidnrsr,' the riu'lit I'.'piiis of in- 
 
 to receive payment of the hill and to sue any ])aily thcrrte 
 
 ilnr-iM! there- 
 iiit-r. 
 
 that 1 
 
 us mdorser '-on 
 
 to trans 
 
 fer ] 
 
 us ri! 
 
 Idl 
 -hts 
 
 lavc suei 
 
 1, hilt oivrs him 11 
 
 lo oower 
 
 as i;i<lorst.'r uiuess it e.xpiessly 
 
 iiutliorizes liim to do so : 
 
 o. Where a lestrictive indorsement authorizes further i; 
 
 ii;hts c.f 
 
 finiliiT 
 
 transfer, ail suhseqiieut indorsees take the bill with the nuuffo 
 
140 
 
 TiiK r.iLi.s Ml' i;x<iiA.N(ii; Acr 
 
 Sec - 35. sdiiK- rii;lit.s fiiul siilijcct to tlic siiiiic liiiliilitics as tlio first, 
 indoi'scc uinld' tlif ri'strii't i\ i' iiidnrsciiiciit. • 
 
 ' It WiiM inyiicd ill tlio cisi'of Mtlh' v. Ensl htdi'i Cn., 2 liurr. l-Ki, tlint 
 t][v oiiiifsiiiii oi' tilt; words "or oidur" in iiii iiidcusL'iiiL'iit n-iidertd tlic liill 
 iiipii iic;,'i)tiiil)K' as litiiig rt'sti'iftivc of tliu iiidnrsi'iiaiit ; lor tlic cashiur ni 
 
 till' iJalik ot l'jij,'laiid, ulio was Lallid to ^ivi 
 
 f tvidi'iicc as to the custom 
 ol' nu'i'Lliaiits, saicl that " tin.' I!. ink ii tlu\v i\ rr discouutiMl Mils not iinhnscil 
 to oi'dcr, did it only upon the cii'dit of tin; iiidoisrr; hut that otlii'r\vi.s<' 
 tiiey 
 Otl 
 
 Won 
 
 Id 
 
 Hut lake tliciii, not coii^idii iiiu' llniii as licinu' nc^o 
 
 tiah 
 
 ler iiicichaiit- 
 
 iw siiiiilar I'vjilciicc o 
 
 f tilt; I'listiiiii. hut l>onl M: 
 
 til 
 
 nil 
 
 li tlii^ juiv sustained the nicrchaiits, ludd tlu L liu oiii^lit 
 
 to liavi' ailiidltfd thi> 
 
 .1. 
 
 pf 
 
 Us;i';c 
 
 la'rallsi 
 
 lis > 
 
 (I indorsi'il Well 
 
 iicyotial) 
 
 And he ludd that thu words •' or order ' woiu as unneccs 
 
 sar}' (o lie insirtcd in an iiKhii'si'inciit as tin; words "uxecutors an 
 
 adiniiusiiati 
 
 It 
 
 was iiui-iii' 
 
 that 
 
 case w lu't lu'i 
 
 th 
 
 lUhl, 
 
 l)y iiny wonls ol' rLstriution, hi; run 
 
 ilercd 
 
 a ncgotiahk' lull 
 n-iK'Uiitiahlc ; hut it 
 
 was coiisidfrc (I that, for tin; ( nnvcniein'c and course of trade, the intontioii 
 and not the fnriii, was to 1k' ri'gardeil. Where a hill is indorsed rcstiictiiu 
 its traiisier, t''u relations hetwecn the indorser and the indorsee are siili 
 
 stantialU thos 
 
 if luiiicipal and agent 
 
 anil tl 
 
 lu payer may, in some case; 
 
 he bound to sec to the api)licalion of the iiioncy ))aid. 
 
 li.i.rsriiA'iiiiNs. 
 
 I'av to A. Ol- 
 
 is ordei', for my Uf 
 
 is a restrictive iiidorsem(;iit : ami 
 
 the indorsee of A. must hold the (iroceeds to the use <if the restrietiii:.' 
 
 llldiii'ser : 
 .1/ 
 
 LI I) III I 
 
 •ijil V. tSiijDiiriii I/, 
 
 S !!. & C. &l->, 
 
 B 
 
 i'2'). See ah 
 
 nil r<i V. ( ' 
 
 .SO U. I'. (». II. 303. 
 
 I 
 
 iiy 
 
 .J. s. 
 
 .rd 
 
 or order, va 
 
 lui; ill account with H." is not a rcstricti 
 
 iiiilorsemeiit : Jlmjldi i/ v. Jnr/.'- 
 
 L. I-! 
 
 !•: 
 
 id I 
 
 !. made a n 
 
 (_'. transferred the note to !». with th 
 
 ite iiayalile to ('. without words of iiegotiahilit ^ 
 
 folloWlliL; illdoiseinell 
 
 t : Kcci 
 
 ■a 
 
 .f i>. 
 
 a iioti' on 
 
 or .■:< 
 
 ■)0 
 
 IK 
 
 !•"), l!S43. A'ow if 1). does not collett 
 
 this note, I am to account to him on K's. note " ; — Held, that this imhirse- 
 
 meiit g ive no right of action to 1). a^ 
 () Ark. 371. 
 
 St tl 
 
 ic makers 
 
 Lit/hi 
 
 Join 
 
 How loiij; a 
 bill is 
 
 Iiii. WIh'I'c a. bill is He'll ttialile in its origin, it c<^iitiniu 
 
 Mi'lct'sHo ^'* '''' iieg-otifiMe until it lias lioen (a) restrictivoly in- 
 
 luii. Act.s.oT 
 
 (loi'st'd, or (/>) (li.schai'o'L'd liy jiayiueiit or otherwise ;' 
 
 oviTdue bill 2. Where ail overdue liill is iie<n)tiated, it ean he iieooi- 
 
 lU'^T'iliiUt'd _ _ ....... 
 
 subject to iated oiilv suhiect to anv defect of title aHectinu' it at its 
 
 title. . " . " . 
 
 maturity, and thenceforwuid no person who takes it can 
 acquire or o'i\'e a hetter title than that which had the 
 person from whom lie took it : - 
 
; I 
 
 TIIK lilLI.S or i;.\(IIAN(iK ACT. 
 
 141 
 
 .'). A liill i>;iy;ili|c on di'iuai'd is diTinrd [a lie ((\ridiif Sec 36. 
 
 Avitliiii tlu' iiic.'iiiiii''' and lur tlir purposes of tins sect imi, "i^n lU-- 
 , , , . , ... iiii"i'i ''ill 
 
 wlicii it fipiicars (III till' I'jicf ol' it to ]iii\r lifcii ill circiiln- iicvin..i(.\.T- 
 
 tioii tor iui iiniTiisoiialilr Icii^tii of time: wlint is an iiii- 
 
 iv!is()liul»U' length of time for llrs j»ui|iose is u ([Ue.-^lioii of 
 
 fact : ••< 
 
 4. Kxcejit where Mil in(h •rseiiiellt he.'ll's date alter the ''r'-^'mi 
 
 ^ lis to llMITi 
 
 liiatlU'ity of the hill, e\-ery iien'otiatioii is iir'nim Uich', 
 ilcellied to have heeli ell'ected liefol'e tlie liill W as oNCrdne ; ' 
 
 ticn 
 
 lis t" llt"l{Ollll- 
 
 tiou, 
 
 w 
 
 lele a lull which IS not oselillle lias lieell dishonor- Takinl,',|i^. 
 
 hdir.aJ I'lll. 
 
 cd, any person who takes it witli notici' of the dislinnoi' 
 tal\e> it. suhjeet to any (hd'eet of tith- at tacliiiii^' thereto at 
 the time of dislioiior, hiil notliiiiL;' in tliis >iih-.scct ion shall 
 
 UIII 
 
 •ft the rii.dits of a hoMer in <hie coiir 
 
 ' .V liill (if I'Ncli.-iii'.'t' is iniriitii 
 
 <l 'iiiiliiihiiii. until it li.is liccii jiiiiil 1) 
 
 (M(iih(;liari;c(l mi li(li,ill' of ihi' acccjituf. 11 tin; ili.iuiT li.i.s paicl tlic liill, 
 it .seems that he may sue the uiceptcir ii]mpii the hill ; and il instead (if 
 sneiiiL' the aeecpti'f, he ]iiit it into eircul.itinn (Hi hi- own inddrseintiit 
 iiiih', it (Ides not in-ejinliee ;iny ef the other |i irties uho have iinloised the 
 hill, that the holder should he ,it lilieitv to siie the aeee'itor : ('(1//1111 v. 
 
 L 
 
 :i M. \ .Sel. !l."). A liaymellt hef. 
 
 hill I 
 
 leciilJles line, iloeM 
 
 ii'il e\tiiiL;uish it. any more than if it were meiily diMoiinted. .\ eoiitraiy 
 (luitiiiie would add a new eloy tii the cireulatioii of hills ami notes : liiirhlilijc 
 
 V. Mii/iiitrx. 
 
 'A ( 'anil 
 
 - The eiiuities attaehiiiu' to :n ovei-diie liill .-ire simil ir to those w hieli 
 iii'tliiiarily attaeh to (■//';.«->■ /'// uctiim, as lietweeii the oiivinal ami siilise- 
 ((iient partii's. 'J'iie ovei'dne hill loses the rii^hts .ind jirivileiics wliieli, 
 hy the law-merchant, attaeh to liills of exehiiiL'e, and is rele;_'.ited to 
 the rij;lits and jnivilej^'es and ei|uities whieli aic nsiially incident t(j a 
 I'husi ill iiclioii. I'aynient and other disilmiee, ai'e sometiines s|i()ken of 
 as oijuities attaching t( 
 
 I an over ilin 
 
 hill, hut t 
 
 lis seems lueoi'rei 
 
 ■t : tl 
 
 are 1 
 
 ather grounds of nullity. 'I'hat whieh jnn ports tc 
 
 .1 lull. IS, on 
 
 ley 
 jiroof 
 
 (It p.iynient 
 
 t or some other aeiiiiittanee. no loiieer a hill, hut mere wa.ste 
 
 l'''i" 
 
 Tl 
 
 le posi 
 
 'I 
 tion of il holder who takes a bill when overdue is this 
 
 111' is a holder with notice. II 
 
 e ma\' or 
 
 mas' not he a holder for \Mlue, and 
 
 liis rights will lie regulated aceordiiigly. He is a holder with notice for 
 this reason ; he takes a hill which on the face of it ought to have got 
 liniiie. and to lia\'e heen ])aid. He is theiifore hound to make two in- 
 <|iiiries : 1. Has the hill heen disehargeil ? 'J. P not. i.-- there any eijuity 
 attaching thereto '.' /. i. , wa?. the title of the person wiio held it at maturity 
 ikfeetive? C/ialnnr.i on JJi/l-s 107. 
 
Ik 
 
 Tin; i:ii.i.s OF K\('M.\N(ii'; act. 
 
 Sec 36 Im.I STKATIUNS. 
 
 The iiuldrscc of nil nvcrdiic liill or iioti', is lialdc ti> >iu'li t'i|iiitieH mily 
 H'l iittiii'li ti> till! Iiill III' iKitc itself, uinl not tn ciilliitci'al ilaiiiiN or delits 
 
 iliii' from the iiiilorscr to tlic iii.ik 
 H U. ('. ('. I'. -Jltil. 
 
 iiidorniM! to piiyt'i' : l\ not/ v. AVi< 
 
 W'lirri! an iiiiloiHoc of a noti' iiayalilc on (.li'nianil, had taken it two 
 
 years after its date, uitii notice of ai> 
 
 'liieiit lietween the hohlerainl 
 
 the maker, that it .sliould he set '.if aj-'aiiiNt a lion 
 
 >f wliii'h the liiakt 
 
 iler 
 
 obligor 
 
 lleh 
 
 a goi 
 
 defeli 
 
 Urnnki V. 
 
 wax oliligee, ami tlie I 
 ,!/•/»././, Tay. i:. V. •-'.■). 
 
 An agreement not to negotiate the note aftoi' its maturity, is an equity 
 attaeliing to an overdue note : (Irani v, ]Vliii/aiii( i/, '21 V. (.'. ('. I'. 'J.'iT. 
 See also 7\'. /■/• v. S/ni<il, H L'. ( '. (,>. ){. S'_>. 
 
 A valid agretanent to give time is an eijuity wliich attaciies to a hill 
 against a [lersoii taking it at maturity : /Iritlnii v. Fi.i/i< r, 'J(i I'. ('. (). I!. 
 
 :<;ts. 
 
 A note given as collateral security for a mortgage for the s.inie amount, 
 luiiy he indorsed over after it Ihtoiiks due liy the original hohler and 
 mortgagi'e, and the mortgagee may proceed to foreclose the mortgage: 
 Shoir V. liinn,,',-, !• V. C. C. 1'. \'}^. 
 
 Where all agiiit of the holder disposes of a o\-er due note; without 
 aiitiioiity, though tor good consideration, the ])erson taking it ohtains Ud 
 
 title as ag.dnst the real owner 
 
 st \. 
 
 Miuli. 
 
 :;< I', c. (). 15. w 
 
 ii. 
 
 Wh 
 
 ere an ovenine no 
 
 hu 
 
 ite is transferred, so much of tin; original eonsid 
 
 tion wliieh 
 
 fails 
 
 It 1 
 
 s (annot de recoverei 
 
 I : !!■ 
 
 Ju 
 
 era 
 
 (> 0. ('. u. I'.. .'!l;!i. 
 
 A note of hand was transferred when overdue, and there was fraiul 
 jn'oved in the transaction: Meld, that on slight gioiinds the law woiiM 
 |iresiiiiii' th:it the indoisrr had knowleclgc of tile I r.iiid, if it appear that 
 he omitted to satisfy himself as to the validity of the note : II mil v. A>«, 
 •J l!ev. Leg. -JS. 
 
 A noti' p,iyal)le on ileinand is, after demand of payment and refusal, to 
 
 it has actually hecu 
 ; : Ddiii/iiii \ . SiHitll, 
 
 111' tr 
 
 eated as ,111 ox'erdiie : and a note where 
 
 )f 
 
 de wl 
 
 icll I 
 
 leiiiandcd, cannot stand on a hetter footi 
 
 X. I'.. Si). 
 
 The general rule is that nu\, pci> 
 ifter it is due takes it niion tli 
 
 reoeivinu 
 
 negotiahh; instruiueiit 
 
 i'Ait of the ]icrsoii from wlim 
 
 11 lie 
 
 receives it, and suhject to all the ohjeetioiis ;iiid equities to which it Wi 
 
 It this d( 
 
 iiiit 
 
 li.dile in the h.inds of the person from whom In; t.dves it 
 
 apjily to chc(jiies : Lotu/vii and Couitly ll'iiitimj Cu, v. fi'rotiin, S (}. 15. I). 
 
 •28S. 
 
 Ii 
 
 an action on a proiiiissory lu 
 
 ite it was shewn that when oveidi 
 
 and while the payi'e was the holder, it was agreed tliat a hoard 
 should he applitd in reduction of the noti;;— Held, that a Mihseipi 
 transfer of the oxcrdue note could only he made suhjeet to tlie claim 
 the maker for such hoard : C/iiinj v. ■Ii[l'<ri/, \'2 Ap]). 1\. 432. 
 
 A promissory note made hy the defendant had heen held by the ('01 
 solidated Hank, and afti'r its maturity, the defendant transferred certi 
 
 uu 
 
 timher limits to the hank as collateral security for the payment of tlic 
 
 note, which limits the hank sold. The 
 
 itills siihsecpu-ntly hecaiiie 
 liolders of the overdue note, and after the timher limits' transaction, 
 '{"lie defendant claimed against the iilaintifl's to set oil" against the 
 note, the value of the timber limits sold hy the hank without authority 
 
Tin; llll.l.S OK llNiM \\(i|.; ,\(.T. 
 
 F^:{ 
 
 an 
 I'll 
 
 1 for (111 insiillicii'iit iirii'c, wliilc linMcrs of tlw iinti' ; Hil<l, iii>t su Sf C- 30- 
 
 titlt'il : ('iiii<ii/ii(n .Vm/(;(V/'( s {' 
 
 /• 
 
 il (hit. I'. I!, :!•_•(. 
 
 ' Tlii^ fliuisi' atliriim a iii'W nilf in to liilN p lyalili? on ilfiii iml. Tim 
 dl'l I'lilc WHS tluit .1 l)ill or iioti' i>ay.il>li' mi clcinainl win nut to l.i' cijii 
 hiiU'i'fil iiM ovenlui! witlioiit hoiiu! cviili'iii'i' of iiayiinMil liaviiij^ licfii 
 (l<'iimiuU'(l iitul rufusL'd, .'Itliouyli it mIiouIiI \w Hiivcriil years olil, mul ini 
 iiiti lot liiiM Itct'ii piiid on it : /////(< mt liilix, ]\\\ 'i'liu claii.sc Mcniiis to liiivo 
 lii'uii taken iVoiii a ili'ci.sioii in a Michigan State Coiitt, wliieli allirniH tliiit 
 a |ii'oiiii>''nr'y note payalije on ileniainl, unless tiMiisterioil within areasoii- 
 alilc time, will 111,' eoiisiih'ieil overihie anil clisiioiioieil, ami that the I'lng- 
 ii.sli i'iil(,' iniist hn hohl to he so far nKHJilirii in tiie I 'niteil States : ' 'nrll v. 
 
 /; 
 
 '(■», 'J Mich. 401. Ilitlierlo it lias h 
 iiiahle time for the |)ii 
 
 ci)n>iileieil that \\ Icit- \» as a 
 ppcseiitatioii of ,1 liiil Of note Was a mixed i|nestion 
 law and fact foi' the ileteiiiiiiiiitinii of the ( 'oiirt and jiiry.imd woiiM 
 Mild iijion the eireiimstances of ('ach case; M ullii-l: \ . I'ltildhi ^s, n. W 
 HI. I'. ( '. C.-Ki. This i'lanse makes it a i|iiestion of /Ir' simply ; and in 
 
 to ai'ii\e at a pi'opci' (h'tiMininatinn oft 
 
 illcstioll of feasolial 
 
 time, the situation ;md interests not of the dcawei' only, not' of the holder 
 only, liut the situation jind interests of Kotli niiist he taken into considi^'- 
 iitioii : M<lHsli V. /I'nwsdii, !l IJin;,'. 4'J.S. Ihit the ,'iL;reement of this parties 
 limy take their ease out of the Act. Thus where a note dated lUtii Fell- 
 fiiary, and indorsed, and thouj,'h piyalde on demand, was not intended 
 h\ :' 'iiakers to he paid at an immedi.ite or speeilie <late, and \\as not 
 IHeseiited until the 14th |)uceiid)cr ; Meld, that as the note was iiir;uit 
 to lie a eiintinuing seciiiity, the delay was not nnreasonahle : <'lnirl<riil. 
 
 Ilihil: V. I>irl:i 
 
 L. K. ',\ V. ('. :u\. Sec further, notes ss. 'H). 4<» ;ind 4!>. 
 
 This daii.-e docs not ajiply to pi'oiiii>siii'y notes ; se 
 
 r 
 
 icre is no presumption of law a 
 
 t<i the ti 
 
 ■ s. s."). sill) s. ;' 
 
 it w lii( li a hill 
 
 niiti 
 
 h:is hei'ii iielolsed or liegotiatdl, other than that ,i hill or note is jiie si lined 
 
 to h 
 
 ;ive 1 1 
 
 iiiclorsi'd and ncLroti.ited witiiin a reasoiiahle tiiin^ .iftcr its 
 
 lie, and hcfore it hecoiiies due ; hut these presiinnitions arc' relnit t.ihlc 
 
 Sec note 1 to s. "Jtt, and note S to 
 
 .'1. 
 
 '• T 
 
 hilN, 
 
 Ins clause 
 
 pi 
 
 lees I 
 
 lishonourcd hills on the s.iiiie footini; as overdue 
 
 'he ipiestioll 
 
 when ;i holder t.ikes them with notit f clislionoiir. 
 
 ase- IS, 
 
 whether the holder acted ill i,'oiMl I'.iitli in takiii'' the lidl. 
 
 1,'ti/i/iui/ \. lidhl: of KiiijI'i 11(1, I7<'. !>• I'd, 
 
 ami cases as to notice in 
 
 111' nor -i to s; 
 
 !!( and 3S, as to the ri^'hts oi a " hohler in 
 
 line course 
 
 1 to s. S!). 
 
 a II 
 
 J5). Wlit'fc 11 bill is iieo'otiateil l»aek to tlie dfawci', uv to 
 I'iof iiiilofsur, or to the acceptor, .such part}' may, siiliji ot 
 I'l tlie jirovisioii if this Act, re-isstu' ami t'lirtlicr iiro-otiate 
 till' hill, 1 hut hr is not entitlei] to riiroii't; the payiii'nt of 
 till- liill aifaiiist any inti-'rveiiiiio' party to whom In- was 
 
 Itill lll')r(l- 
 
 tiiitcd liuck 
 to piirtv. 
 Iiii|i..\c I,s.;'.7 
 Ili.l. Ai L'^SI 
 
 .Miiy be 
 rt-inHin'il. 
 
 ]i|'fV10US 
 
 ly liah 
 
il- 
 
 THK lillJ.S OF KXCllANUi: ACT. 
 
 Sec 37- ' The power to iieyntiate a l)ill iiiiist lie ilistiiii,'uislieil frdui the iit.'lit 
 
 to negotiate it. Tlie /';//(/ to negotiate it is an inciilent of owiuM-ship ; tin: 
 y«/(r( /• to negotiate it is an incident of a]>[):u('nt o\\iiei>hi|i : < 'Imluii'rx an 
 
 unit. 111. Or more projjurl^ , it is 
 agent to negotiate tile hill. V:: 
 
 iin nieiden 
 
 t in the authority of tl 
 
 V:- to liills negotiated haek to the drawei'. 
 see Wooiliriiril v. Pill. L. !{. 4 •,>. 15. o;") ; to a prior indoiser, see /liilui/i \. 
 J/cj/wiird, 4 T. R. 470, and WHL-iiison v. Unir'ui, 7 •,'. 1>. D. ()."{() ; and ti 
 the acceptor, All( iihoriiiKih v. Machirjc, '2.7) \j. .1. iv\. •_'I4. 
 
 - W'iiere hills \\i re drawn liy a nierehant on his (Uhtor, anil, in pursnancf 
 of a verlial ;igrcenient, wen; indorsed hy the nu-rehant lo the fatlu:r of tiif 
 dcilitor. who was to he surety for the price of the goods in respect of \s liirh 
 the hills \\cr« given ; and the father thereupon re-iiitli>rscd them to the 
 merehaiit : -Held, that altiiongh, as a general rule, the indorscr of a hill 
 8ul)se(picMtly liironies the indorscH', he ci. ii maintain no ai'tion against tli>' 
 intermediate indorsi'r. hcrausc he « ould himself he iijhle to him hy reason 
 of his anteceilent 
 
 inilorsenien 
 
 t, tlie rule does not apply \. hen such inter 
 nuMJiate imlorser lias no right of ai'tion against such inch i <vr, on his prior 
 
 niilorsatiou 
 
 11'//,.; 
 
 'ilistiil V. i'llir'ni, 7 
 
 (.>. r.. 1). iVM\. Allh lu-l 
 
 1 undc'r till 
 
 'eiiei.il nil" wlieie a holder sui 
 
 UL' IS 
 
 li.il.k 
 
 to the clefend.int 1 
 
 ly rea 
 
 sou of a p'ior iiidorseiuent, he cannot recover; yet if he sue with oti 
 
 in another eaiiacity, as an executor, he may : 
 O. U. .-.44, 
 
 ./,///,■/ 
 
 MrKiir.H . Ii I'. ( 
 
 liiL'liii of 
 
 llnllliT. 
 
 lmp...\.i s.3f< follow: 
 Inil. A.I 
 s". S iV W. 
 Mav SHI'. 
 
 \\H. 'I'lif rii^lits (ind powrj-.s of the lioMcr of a liill ai-e a- 
 
 00 '^' 
 
 (' mav sue (»ii tlic liill in his own nanu 
 
 It hnliliT ii 
 line rnuisc 
 
 {h) Wht'i'f lie is ii, holder in (lue course, he holds the hill 
 free i'l -ni any del'eet of title of jirioi' parties, as \\v\\ ,is 
 from n\eie personal defence.s availahle to prior paitii- 
 among tluMnsclvcs, and may enforce payment against all 
 pnrtifs liahle on the hill ; - 
 
 ((■) Wh("re his t'-tlc is dcfectixf, ( 1 j if he negotiates the 
 
 KtT.'ot of 
 tniMsfiT if 
 
 titiiMiefcHt- l,ill to a holder indue course, that lioldei- ohttdns a 
 
 ai 
 
 id coii'jilete title to the hill, and \'li it he ohtains payu 
 
 lelll 
 
 of tl 
 
 le 111 I 
 
 tl 
 
 le person who pays him in diu; course gets a 
 
 \alid (l!scliaro(. tor the hill. -^ 
 
 'i'l 
 
 le expression uiay is permissive. 
 
 In the <'h(. 
 
 Ar/ion Act of 
 
 lS7'i, .'{-> \'ic. c. I'J (now K. S. (). (ISS7), c. I'JlM, it w, is niadi' imperative oii 
 the assignee of a rliosr in ai'tion to sue thereon in his own name. Ihit it 
 is comjietent for the holder of a hill or note to liand o\er thi' hill nr iu;\r 
 
THK i:i[,i.s OF i;xrF[.\Nr;K .\cr. 
 
 145 
 
 1 the ri;.'lit 
 
 (Tsliip ; till' 
 ' 'lull iwr< (III 
 irity of till- 
 lu' draw I.-1'. 
 .; I',: 'hop V. 
 >:?(); iiiicl to 
 
 I iiursiuuicr 
 
 itlu;!' of tlic 
 i.!t of wllirli 
 lliill to tilt 
 
 ;irof a lull 
 against tli«' 
 
 II liy ri'as(jii 
 such inter 
 an liis ])rior 
 
 limlt'l' tllr 
 
 lant liy I't-a 
 with others 
 
 --.'V. (> r. ( , 
 
 nil ai'c a- 
 
 s tllO liill 
 ■; \V(;!l .1-, 
 r parti (•> 
 ;'ahist al[ 
 
 iatos till' 
 IS a o'oimI 
 payiiiciii 
 
 se i;'cts a 
 
 •tiiin Art ef 
 [)erative in 
 iiie. Uiit i! 
 liill oi- 111 ;. 
 
 
 t.thinlpersonb. sue „,,,,,, it in the name of sueh tliinl ..,..„, hut on Sec 38. 
 huhaU of the holder of the lull. ■-_ _.' 
 
 fl.I.ISTR\Tl()NS. 
 
 The hnv which i.ennits the hohler of a note or hill to sue all parties 
 1 •' .!'• M-n ,t ,u one ae|-,on. .h.e.s not aMeet the rights an,l li 1 i' .f 
 • Ictenil.uits as hetwee., theni.selves, hut leaves them asi, t , v 1 , ,ee 
 sue.! .separately : ll„null,m v. riupp., 7 (irant -IS.'!. • 
 
 Wheiv .a hill is iu.lorseil in hlank it is eomp,.tent to ,h,. |,„1,1,., t„ j,.,,,,! 
 
 I.. ^. >. JM> : S. p. Sh.nin, V. //„,.,/, :i \,,j, l; ;,j,,_ • ' ' • 
 
 Where a note was mad.. I,y a ivsident of Tpper ( '.inada. pav.hl,. to I' 
 wh..du.,l ,n New Noric with the note in his V'.sM.ssion ; - I,'!! h lii; 
 adinnus rato,. appo.nte.i ,n that st,Ui. mi.l.t! in.lors,. t^h,. L e" ■ . "^ 
 enaMe h..u,d.u-seoetosue upon km this eountiy: //.,-,/ v. /'„/.■ -'^ 
 
 r. ('. (,). i;. 20S. 
 
 One who hehl notes imlors..! t.. him in hl.uik. as his fatli.,'. ■,..,. 
 ail. I as sni'li a^'ent sue noon tliem i,, I,;. ,., 
 
 I'. •'. <•. I'. -JiU 
 
 [-.•lit, 
 
 -1.1.1 as sni'li^ent sue ui,on them u, Ins ..un name; /,'ov.vv. /y-n/-, 1!) 
 
 A party tho.mh rei|u,.st,.d l.y th, hol.ler .'annot sue on a hill in n> hiih 
 h.^lMs^no,ntere.tan.l..t „lueh he iia. no p,.«essi.,n : AV. // v. /',/', :i;; 
 
 If th,. holder of a, note hvUvr several naions a-ainst. th.. in.l.r.ers he 
 ;nd..e....Mtoh.M.,.^ 
 
 I'.ut this n,h. ,hH.s not apply where th,. holder su..s on tw.. notes one in 
 tlK.^.a,,..nor, and the other in the County Court : r/„AA. v. AV/w-s 5 I " 
 
 th.M!ui-1s*.t'Vl','^' '''"'■"""■ "^ the parti..s to the not., not sue.l with 
 W AZ/W/'a W^^^ ''"' r'"' ""^ "^ ""^ juris.lhti.m: 
 
 \Vl,..retli, hold..,- Mu.,l s..parat.ly th,. a,....eptor an.l i, lorsers an.l tlic 
 .u:i-ep or panl the elann without the ..„sts. an.l ju.k^m, nt uas . , ,• . .] 
 ex, ion ^su...l aga,nst him f.u^ ti,..ir amoimt'and th.. e..sts ai ,, t o 
 
 Am aetmn is maintainal.le hy a j).,son .isMimin,- t.. a,.t as M-.nt of the 
 h.r alth.ui^h without his knowh-lee : .n,i ;, „„. ,,„,,,.., :,r, !; .^v 
 
 . I' 1 ts the a<.ts of th.. assnm..,l a.^ent. that is a .s„|ti..i, nt title al 1 I, 
 
 jui^h .Kloption ,s alter aeti.u, hrou.ht in \n. .^.^ A,..,J'^:tta:T::\ 
 
 ■''" •'■'"'"itio'i of .1 "hol.l.... in due .-our.se.-' is .iv.u in s .^-l The 
 
 ' '■'" " 'l..f..,.t in title " is use.l in s. J!, suh-s. (/,> ami - ami s. :!,; Mih-s "i 
 "id whu.h „,;,y he sai.l to partially .hline its na^anin^. Se,^ also the 
 "'•t--' to those ..hu.ses. Hutth.. t.rm -fr,... from anv d,,,.,.! „, ,,,|.. of 
 I'Hor pirtn^s as well as from m.re p..rs.,nal ,l..fen....; ava.lahl.. f., pri.ir 
 ••"■I.- anr.n, tlmmsel v.^s." ,s t..o lar^e: f.u- the ,l..f,.n,...s arisim. from 
 
 ^^^ui of ..apaeity to ....ntraet, ami tli,.r,.,ore of ,h.. p,.r-onal .1.1,:, .,,■ 
 
 '""I'^lHlky: .and want, -a autho.ity ,m th,. part ..f agents who si„n 
 '" '"• '"'•"'■«^'- -'^^ •'^"'■1'. «"• V^Ti^roc, to tran,sfer or negotiate the lulfo,' 
 
140 
 
 THE BILLS OF EXCHANGE ACT. 
 
 SeC- 38- note, iiiid Jissuiiic ti) iiKilvC tlicir [iriiu'iiMl jx rsouiilly liable thereunder ; as 
 ' well as the defect of title arising from the fmgery of some of the prior 
 
 signatui'tjs necessary to the chain of title to the iiill, may, notwithstanding 
 the wording of this clause, he available against " a hohUa* in due course.' 
 So the words " enforce [)aynient against all parties liable on the bill," do 
 not necessarily uicaii all parties whose names appear on the bill. It 
 incluih's only those who are actual paities to the bill, and legally liable 
 as such according to their several contracts with the holder. See also 
 the notes to ss. '20, '22, 24, 29, .')4 and "),"). 
 
 - ll.lASTCATIoN.s, 
 
 A note intended as the remwal of another note, Imt not soused, having 
 been left in the maker's liands with an indorser's name upon it, was 
 received Ijy tlie [)laiutili from the maker for value before it became due. 
 
 The iudorser was held liable : l.(trti 
 
 W'iiinl, .") U. C. U. S. ()G1. 
 
 'I'h 
 
 le articles of association of a company contained no provision as 
 
 to th 
 
 issue oi ne''<i 
 
 tiaiile instruments, but was 
 
 ip. 
 
 d fi 
 
 rom tne ohiec 
 
 jts of the 
 
 company. The directors gave to II., for value, an instrument under seal, 
 entitled "debenture," by \\ hii'li the com))auy undertook "to pay to the 
 
 mler of .1. H. 
 
 l)n;scntation of the annexed inter 
 
 1st .Inly, iStiT, tl OOO, with interest half yearly, 
 
 -it w.iirants ;"- — Held, that it n 
 
 on 
 
 ht be 
 
 construed as a promissory note, but, in any event, the indorsee and trans- 
 feree for value was entitietl to prove on it against the company, free from 
 ecjiiities between .1. H., and the company: In rv (liniral Eslutc.K Co., L. \\. 
 ;U'h. 7'jS. 
 
 Wiiere a holder olitained from a partner in a linn of solicitors a note of 
 
 tlr 
 
 Ik 
 
 that siicli holiler was bouml to inform himself whetl 
 
 the jiartncr had the authority of his solicitor-partners to pledge tlieu- 
 credit liy the note, and that, not having done so, he was guilty of negli 
 geiice, and could not recover against tiic tirm : Siuil/i v. (,'o/ciiiaii, 7 dur. 
 10.V{. 
 
 Negligence in the custody of a draft, or in its transmission by post, will 
 not disentitle the owner of it to recover the draft, or its j)roceeds, from 
 one who has paid it or wrongfully obtained possession of it: Arnold v. 
 Clic</ai- liiiiih, I C. P. D. ;'7S. 
 
 A creditor, by becomiiig executor of his debtor, does not e.xtiuguisii 
 the delit, althouyh he camiot sue himself for it, and therefore, although 
 
 )to due by his testator to him, so as to uive 
 
 executor, he may transfer a 
 
 a right of action o!i it to a transferee: Loirt v. Pcskett, Iti C \'>. 401); 
 
 I Jur. N. S. ](I4!». 
 
 (nnici'dl Datie.'i of the Holdo: * 
 I'reH'ntinriit \\\\, Wiu'i'e u liiU is piivable at \A^A\l or after siii'lit, 
 
 of sight biil-^. ^ •' °. ° 
 
 ■ i..Act,ii.;j'j pivsL'iitini'nt for acceptance is necessary in order to fix the 
 
 111) 
 
 liul 
 
 PS. (11 H. 7li. 
 
 maturity of the iiistiMuiieiit : - 
 
 Express 2. Where a l)ill expressly stipulates that it shall bo pre- 
 
 Ktiiuilaiiciii ' , 1 -ii • I 11 
 
 H-iidprH- sented toi' acceptance, or wliere a lull is drawn |)ayabl(' 
 
 bfutinent. , . , , c y • "^i' i 
 
 elsewhere than at the residence or place or business or tlie 
 
THK ]JILLS OF EXCHANGE ACT. 
 
 147 
 
 iiegli- 
 7 Jul'. 
 
 lost, will 
 
 Is, from 
 
 nold V. 
 
 tmginsli 
 ilthoug!i 
 
 tl) glVl' 
 
 li. 401) ; 
 
 lix the 
 
 Slgl 
 
 )«> pve- 
 of th..- 
 
 <li'ii\veo, it must lie presented for aceept.aiice betor(^ it (.'an 
 lie presented for paynieiit :'^ 
 
 '.i. In no otliei' case is presertnient for acceptance 
 necessary in order to render liable any party to the bill : 
 
 4. Where the holder of a l)ill, dra\\n payable elsewhere 
 than at the place of business or residence of the drawee, 
 has not time, with the exercise of reasonable diligence, to 
 ]ii'esent the 1)111 for acceptance liefore presenting it for 
 payment on the day that it falls due, the delay caused by 
 presenting the bill for acceptance before ))reseiiting it for 
 payment is excused, and does not discharge the diuwer 
 uiid indorsers. ^ 
 
 ' The receipt of a bill implies an untlertaking from the liolder to every 
 |iiirty to the bill, who eoulil beeiititle'l to bring an act'on against another 
 |i;iity on paying it, to present the same in proper time to the drawer for 
 mreptanee, wliere aceeptanee is necessary ; and to the acceptor for jiay- 
 liient, when the bill iuus arrived at maturity, and is piiyable ; to allow no 
 extra time for jiaymeiit to such acceptor, and to give notice without 
 ililay, and within a rea>5onable time, to every such person, of a failure in 
 tlie attempt to procure a pro[)er acceptance or i)ayiiient of tin; bill. Any 
 <lefault or neglect, in any of these respects, wdl discharge every person 
 ii'om responsibility on account of non-acceptance or non-i'aymcnt, and 
 will make it operate generally as a satisfaction of any delit, or demand, or 
 '.alue, for which tiie liill was given : S/mu/ on liUI.'<, s. 'I'l' . The gcn(;ral 
 duties of tile holder prescribed by this Act are not absolute duties ; b\it 
 I idles, or non-observance of these duties, without the use of leasoiialde 
 diligence, wid bar the right. 
 
 -' It is absolutely necessary that all bills payal)le at sight, or at so iiiiniy 
 d;iys after sight, or after any event not absolutely lixed, or after demaml, 
 should be presented to the drawee for acceptance, in order to lix the 
 [H liod when the bill is to be piid. I'.ut bills payable on deuiand (which 
 ue immediately on presentment), or payable at a certain number oi days 
 after date, or after any certain event, need not he presented at all ; but 
 only for payment. However in ))ractice, whenever the bill is jiiiyable at 
 a certain number of days after date, it is usual, and certainly it is jiru- 
 di'Ut, to present it for accejitauce. If presented, the holder must conduct 
 iiiniself in the same way, and make protest, and give notiet; in the same 
 iiiuiiuer as he would upon a bill payable so many days after sigiit : S/viy 
 ",> liUU, 8. 2'iS. 
 
 ' i'lie two cases mentioned in the tirst two clauses of this secti(Ui, are 
 tlie only eases in which presentation of a bill for acceptance is necessary. 
 
 Sec 39. 
 
 No iirt'fout- 
 iiiHiit ill iiny 
 olliT case. 
 
 Wlipn |iri«- 
 i'iit»li<iii ii 
 
 l'XCII>^Oll- 
 
148 
 
 'iiiK r.ii.i.s fu' r.X(]i.\N(;i': act. 
 
 Spc 39- Tlie (Icfinitidii of a liill jnyiiMc on "ilc iiiniid" m ill lie fcniml ins, 10, iimi 
 
 ' (if ii liill [i.'iyalik' at a " ilctt nniiialik' future time" in s. II . W lieio a liill 
 
 in jiayahle ''at si<;lit,"' or "on demand, " or "on jiiesi ntatioii, " ae( ( ptaiiee 
 
 and j)a_\ nient are ^in^lltaneo^ls, for .•-neli liills are not ( iititlt d to tlie tliri t- 
 
 days' j^iaee (i-; 
 
 10 and 14); tlieiefore jirej-eiitati( n for ani. jitaiicu i.-^ 
 
 not neeei-SMiy. Imt ojitioiial. exec jjt for tlic )iroeis-s of di.- lie nor. lint ti 
 charge tlie drawer ot Mich a tiill. some aetiial evidciiie (f a d(U;aTid <'n tin 
 drawer to aecejit nmi-t lie jirovtd ; and also tliat sni li di niaiid lias lie< i 
 made within a reasonable time. 
 
 'i'lii' ]ii'ovision as to jtrc seiitnieiit "\\liero a hill is drawn jdhdhli elsi 
 ■re than at the !'esi(U nee or [liaee of Imsini'SS of the dia\\ie," is new 
 
 'I'he ,\et riots not preseiilie \v 'letlier thi; j^risentmint fo 
 
 )r (ifii jiliiiici ot till 
 
 lid) is to lie made at sueh jilaee, or to the drawee pirsonally. I!ut as 
 the detirniination of the place of )iajment is the aet of the diawei', and 
 net of the drawei, the prestntnient should lie made peistnally to the 
 
 diaw ee, at Ins plat e of 
 
 lesKlenee or liisnuss. 
 
 hi a.-onalile i 
 
 lillL. 
 
 iik 
 
 ' reasoualiii; ti 
 dd 
 
 IS a mixiil (lUesruin ol law am 
 
 d fact 
 
 naiy uiIil:i nei as .a j i uiU nt I usiiii ss Uian w ould iM iiise m i ase.se t ui Linr_\ 
 
 Id. 
 
 ami i.s sueh orui 
 
 ■ fi 
 
 J 1 1! must, hy the best 
 find out the ore 
 
 neaus m Ins pow i r, ami liy ilui 
 
 and diligent imjuiry. 
 phiee to pie-^ent the bill to the di'awee for his aeeep 
 tanee. '1 he law assists those tliat are dilii:ent, uot those who slei>[i o\il 
 their rights, 'I he exeusi s fur del:y in [>ies(nting a bill for ieeiiitanee. 
 
 vre detailed in -^.-11, 
 
 suh-s, 
 
 ind for payment in s. Ki, sub-s. •_* 
 
 Vpnsrmnlile 40. Snliii't't to tllC ])r()Visi( HIS of tllis Act, Avlu'll !l 
 
 time f(ir 
 
 viiti.iii. pa\iiliU' alter s]'A\t is ncuotiated, tlu' holder iinisL citlic 
 
 Imp. Art .e.40 
 
 iiid. Act. pii'.sfiit it lor accc'ptaiK'c Of iK'uotiat^' it williin a rc'isoiiabl 
 
 ss. fit >*^ ti: 
 
 til 
 
 Or ilrawor 
 iiiid 'iMli/r- 
 st-rs tli.s- 
 eliarj;<^>. 
 
 Wli I i.i 
 ri'iuei.alila 
 
 !2. If lie dofs not do ,'<o, tlie diawi'i' and all indor.sei-.- 
 
 n'lor to 
 
 at iioldci' art' ( 
 
 li.M-l, 
 
 n"C'tl 
 
 'A. Ill ilctciiiriiiinn' wliiit is a rcasoiialilc time within tin 
 meaning' of this section, I'ci^ard shall he had to the natnii 
 of the liill. (he nsai^c of trade with ri speet to similar hill- 
 and the facts of the iiartieiilar case. - 
 
 This el.'iuse is a]'] an iitly n li gishd i\e lo ognitit n tif a du 
 
 if tl 
 
 .ludieial Coniinittee of the I'livy Couiieil in a eato where it held that, 
 alt liongh there was no limited time (ixetl l)y statute for tlie jrestntment 
 of a bill of ixeliaugefor aeeept;inee, and no us.ige of tiade to fix the time. 
 yet such hill must be jiresenti d for aeeeptanec w ithin a reasonable time : 
 
 M iillii'l V. Iliii '(i/:i 
 
 !>Moo. r. V. (\ •!(). It may therefoie be a reason- 
 
 able presumiitioii toilraw fiom the wurding of thisehuise, tliat the legishi 
 
I'lIK IMLLS (»F KXCIIANCI'; ACT, 
 
 V.i 
 
 liiii' iiiti'inlt'il to t'ctjiiiiu tlif lioliltr of ;t liill payahli! afttT .-si^'lit to pii'suiit Scc 40- 
 
 siicli bill lor acceptance •" wiUiiii a leasniialtle time." ISiit tlir provision ' 
 
 ri;([iiiiin>,' liini (ami siiccus.sivu liolilci«) to cither do so, or ii'(i"/i'if' .such 
 
 liill " witliin a rcasonalilo time " is not very clear, altliouyli in /'/','/ v. /////, 
 
 7 Tauu;. .'{',(7, it was intimated that if a holder does not circulate the liill, 
 
 lir must present it williin a re isonalile time. Sin'ii siu'ci.'ssi\ e iiej^'utiations 
 
 mayopuate ag unst the int. itiun ot the legislature, and furnish sulliri. iit 
 
 evidence to excuse tin; n()u-pri!sentnient of such hill for acc-eptaner uitiiin 
 
 tiie reasonalile time intendeil liy tliis cl.iuse. ilauU notes, or govrrniiicnt 
 
 notes, which are intended to pass from hand to hand, and are issued so 
 
 that they nriy eircidate as money, nny he ni;i,'otiated (I'l iiilinl/ inn, witli- 
 
 <put the iiolder inciirriii.u' any lial)ility for their noii-picsentat ion foi' 
 
 payment. 
 
 Tl.l.rsTlJATIONS. 
 
 A hill ilriwn liy a builvor in the c luutrv on a h.mUer in town, in favor 
 
 A.,p:iyahli! after siiht, was indoised l>y A. to the (h'friid mi,, 
 I'irsed it to the plaintill'sev.Mi days 
 presenting it for aeceiilauce tor four days : it wil 
 
 after tiie date of the hill, whudi 
 
 who 
 
 ay( 
 
 left to the jury t< 
 
 say wlietaer the [il linlilV has huun ,guih\ of niu'easonahle delay; and in 
 eoiisi<lerin,' tiiis, tiie jui'y m ly iidor, from the defendant hiinsidf iiaving 
 ke|it thi^ liill so long nnacuepted, that it is not the course of husiness to 
 
 p;vsi 
 tnem 
 
 jnt such hills tor a 
 
 ■Shiiti. 
 
 n. 
 
 tptamv 
 
 .^ I'. SO. 
 
 innneiliately after tin- l>arty receives 
 
 Whether due diligence has heen nsrd in th" pi-escntment of a hill of 
 
 'h 
 
 to the drawee, is a mixed ipiestioi 
 has 1 
 
 ,f 1,1 
 
 I I.e-t 
 
 d wh 
 
 th; question has heen [no]ierly left to the jury, the Court will nut inti 
 
 th th 
 
 t.:r.' wi 
 
 vM'ong eoncliision 
 
 rdict 
 
 it clearly a))pears that they have come tn 
 
 llu 
 
 •'/, •_' Kerr X. I! 
 
 ,)|,S. 
 
 L'p to tlie decision of the I'livy (duiicil in the ease cited in the pn 
 
 ^ lous no 
 
 te 1 1 
 
 lere was no "' usagt^ 
 
 if trade " with 
 
 respect ti 
 
 ih 
 
 fter sight. The j)," .iimptioii of law as to hills of I'x di iii^ ■ |i lyahle at a. 
 
 lixcdor determinate date, is that they 
 and acceitted during their eurrencv ; 
 
 tiave heen iileseii 
 
 ted f( 
 
 )tan(. 
 
 -1 
 
 th'.'ir date, .and ; 
 
 usual course of Im.siness : 
 
 irly before the d i 
 
 ,iud within a re isomihle time after 
 
 vs of gra 'e, .suc-li lnin.' the r'L.'ul,ir and 
 
 /.'(.'< rl< V. li'lh II. \-l V 
 
 fnrti 
 
 I'-r 
 
 ,is to reabonable time Ihilisan /lill<. pp. Kif, r/ 
 
 Ii.i.i"sin\ rioN. 
 .\ bill was diMwn in Calcutta in l*'ehrinn^-. ISIS, on |). cv (' 
 
 it lb 
 
 p.iy; 
 
 sixty day.s aft< r sight, .and inloi^id tr) M. or ord< 
 
 M. 
 
 lor live 
 
 It lor 
 
 onsequeiice of tfu; depressed state of thi! nioii y in irki't, ke|tt the hi 
 
 III intli 
 
 IS ana nine ( 
 
 lays 
 
 d then sold it tn 
 
 w ho did 
 
 accept iiieo at Hong Kong till the uMth October in that year, 
 
 ot pniseiit 
 
 li. it Co , refused to aece[)t it ; -Held th.it the presentation of the hill for 
 aeci'ptina' \v,is not in 1 1<; within a fcisoirible time. ,iiid that the •Irawers 
 Were discharged : MuHirk v. Ivt'lnk-issin, !) Moo. I'. C. 40. 
 
loO 
 
 THE lULLS OF EXCHANCIK ACT. 
 
 Sec 41. 
 
 IttlIcK OH to 
 
 liri'MMiii' .:l 
 lor iicwpl- 
 
 HIICC. 
 
 Im|).A(t,s.41 
 
 Iii<).Act,s.75. 
 
 lirasoniillc 
 hour :inil 
 busiiicfsday. 
 
 (liaw<'(!s Plot 
 pHrtniT.". 
 
 Where 
 •Iraweedead. 
 
 Tliroupili 
 I'. •> 
 
 Kxcusrs f(jr 
 non-presi'iit- 
 iiient. 
 
 When there 
 is no excuse. 
 
 41. A bill i.s duly ])i'c.soiite(l for acceptance which is 
 l)resente(l in accordance with the f'olloAving lule.s: 
 
 ((') The pi'c.scntnient niu.st he made hy ov on ludialf of 
 the holder 1 to the drawee or to some per.son authorized to 
 accept or refuse acceptance^ on his belialf, at a reasona))le 
 liour on a l)usiiiess day and beftjre the bill is oveidue;- 
 
 (/>) Where a bill is addresscid to two or more drawees., 
 who juo not partners, j^resentment must be made to them 
 all, uide.ss one has authority to accept for all, when present- 
 ment may be made to him only :-^ 
 
 (t) \Vhere the diawee is dead, presentment may be made 
 to his personal representative ;'* 
 
 (</) Where authorized by agreement or usage, a present- 
 ment thiough the post ofHce is sufhcient : •'' 
 
 2. Presentment in accordance with these rules is excused, 
 and a bill may be treateil as dishonored by non-acceptance — 
 
 («) Where Hie drawee is <lead or bankrupt, or is ;i 
 fictitious person or a person not having capacity to contract 
 by bill ; '» 
 
 (h) Where, after the exercise of reasonable diligence, 
 such presentment cannot be eti'ected ; " 
 
 (c) Where, although the presentment has been irregular, 
 acceptance has been refused oi some other ground:'^ 
 
 .'}. The fact that the holder Ins I'cason to believe that 
 the bill, on presentment, will be dishonored does not excuse 
 presentment. '• 
 
 ' The duty <>f aii agon'c of tlio IkiIiKt f)f a liill is to he iiicasiirod by coii- 
 sidefatidiis arising ii) particiilaf oases. It i.s tlic duty of an agent to nhtain 
 ;iefe])t;»nce of the iiill if pos.sihh' ; lint not to press unduly for aecepttancc 
 in such a '.vay as to lead to a refusal, )iiiiviiled tiiat tlie steps for obtain 
 iiig aecei)t:mee or refiis.il are taken within that period of time which will 
 preserve tiie right of Ins principal against the drawer : linn/,' of Voii 
 P'u'mnn'x Land v. limik of \"ic/orin. L. 1!. ■'{ 1*. C. .')'2it. 
 
TIIK I'.ILf.S or KXCHAXGH ACT. 
 
 ' The iliri'ctioii liure given is tliat the prosciitment for aeci'iitiineo mii.st Sec. 41- 
 iiiaile " at a reasoiiahle liiiiir on a lnlsill(•^s.s daw anil /"/'</'• tiic liill is 
 
 lliit this 
 
 liri'ction is sulijfct 
 
 cxcusfs for niin-pix'SLiitnicnt. 
 
 t. 'I'll.' -li 
 
 ti. til 
 .If 
 
 I'mand lor acei 
 
 |(rii\i>ion m sulp-s. •_'. as ti> 
 litancc niu>t lii' cli'arly 
 
 il ui 
 
 nui|iiivi)cally niadf and I'cfiisiMl lii'fori^ an action will lit' against tlii; 
 
 ilrawcr. 
 note '2, 
 
 Sci- s. ")'J, siil)-s 
 . l.-).S. 
 
 d s. SI) 
 
 uid as to 
 
 a ivasonahli' liour 
 
 Il,l,USTKATl<»NS. 
 
 It is not a sntHcii-nt ino.SL'ntinciit to produuc a witness wlio went t<> a 
 place (Icsoiihed as the di'awee's iioiise, and was there told oy a ))i 
 
 nil 
 
 known to the witness that lie wmild not ariept the hill : ("lui I. v. I'npi 
 
 Esp. I 
 
 ivt. 
 
 I'rc'Hcntation at tlie closed doms of th 
 
 ifr. 
 
 r its nsual 
 
 )tliee 
 
 Inmrs, is not snch a presontatioii as is necessarv for protest: Wiilli r.^ \\ 
 lyiffiii-^tihi, It) L. ('. J. -iOT. 
 
 \V 
 
 re a note was p 
 
 ivahle at a " sti 
 
 tl 
 
 U' oiilv evidence was 
 
 that when the holder went to present it, the st 
 
 ore was clo.-.ei 
 
 d til 
 
 defendant ohjectod that tlit; presentineiit was not shou n to iiave lieen 
 ladii at a reasonalile hour ; — Meld, that in tl 
 
 le aliseiirc ot an\' cvhIcikm 
 
 I'f the nature of the linsiness carried on at the store, it iiilulit In infernd 
 til it it was (dosed in tile due course of Imsiness. and tlierif<ire thrii the 
 |ii( seiitnieiit was not made at a reasoiiahle time: /'tiffi r^an \. '/'>i/i/ii/. 
 t All. X. P.. ±)-2. 
 
 ■This sul)-sectioii may give rise to a ditlienlty in case one fnily of the 
 drawee refuses to accept ; for liy s. I!) suii s. 2 (i ), "'the acceptance of some 
 one or more of the drawees, but not of all." is a qualified acceptanre. 'The 
 eltect of a qiialilied acccptanci', if taken hy the liohler. is to flisch.u L'e the 
 dr.iwor and indorser(s. 41.) 
 
 ] 1.1,1 sTUAIloNs. 
 
 I'resontiueiit to one only of the m;dii'is of a joiiil notr is not suliicient 
 
 I. 
 
 .S.-)S. 
 
 to charge an indorscr : I'lliikc v. MrMilln 
 
 The ahseiicc from his home of the <lraW( 
 ulieii the holder of the hill or his ayent calls with it for acciptan 'i'. is not 
 
 f a hill iiavahle after dat 
 
 a I't'ttisa 
 
 1 t 
 
 o accelil 
 
 t ; lint such ahsciicc wliiii a, lull is due. is a reiiisal to 
 
 lay, and authori/es a protest : Jinn/: nj \\'(i.-<litii'j:<in v. Ti'qihll, 1 Peters, 
 
 See the ease J)f C'ov;// 
 
 v. Hniili . 4."i V . ('. (.1. P.. ;!•_' 
 
 A I 
 
 W. t.-.s 
 
 lis. V.W. U 
 
 ).") ; .S'//( 
 
 ■fh 
 
 Xiir Si,i(lfi HV/Av /.'((///,■. S M.io. p. C. N. S. u\ 
 
 and i^fnsxnclni ■■<(//■■< Bunk v. Olircr, (il Mass. ")"i7. 
 
 ■''The usage hen; referred to iiiii<t mean some aL'reement or ri'io^ni/ed 
 |ira(!tico lietween the p;irties to the hill ; for there is no judicial decision 
 
 dliri 
 
 g anv estal)lish( 
 
 merchants 
 
 autliori/iiig the presen- 
 
 tation of a hill for aece]itaiice " through the jiost ollice." S.'c Ihirri'ii v. 
 Mtnl'iii, 1 ('amp. 4"J."i. Sec further notes to s. 4"). stih-ss. (i and 7. 
 
 The English .Act has a s])ecial clause (41 c/i p 
 
 .li 
 
 for ]iresentmeiit 
 
 lo the trustee of a liaiikru|)t in the ease of the h.inkiiqitcy of the drawee. 
 
]r/-2 
 
 TlIK I'.ILl.S OF KX( •HANOI'; ACT. 
 
 Sec 41. Tlnn 
 
 if (' 
 
 ;iM:iil:i <ii 
 
 'Xpii'ssiiin " l>iml\i'U|if ;' Imt t.lio li(|uiiliiti)r of ai 
 
 1 liauktiii)ti'V or iii-i(ilvi'iu'v ilitiiiiii^ the; 
 'iilviMit l):iiik 111' coni- 
 
 [laiiy, or tin; trust 
 for till' hciiclit of 
 
 ('(■ or as.-iU'liue o 
 
 f a ilrawtT who has iikuIl' an assjifiiniont 
 
 IIS iTC'ilitoi's, 111 IS' he Ik 
 
 la t( 
 
 ^iidicii'iitlv il<;*«'riliuil in 
 
 the words ill the |irc\'inu.s .snl)-.'~<'ution ('i), as a ' |ii'r.>oii aiithori/.i'd to 
 
 at'cfpt or ri;fii 
 
 ■)>taiii.'(; oil 
 
 his 1 
 
 IclKl 
 
 If. 
 
 As ti 
 
 a lii;titioiis iK'i.soii, 
 
 si'c notes to ss. ") anil 7: ami as to " a iirrson not having capacity to contract 
 
 IV hi 
 
 11, 
 
 See is. :;'_', am 
 
 1 the Hiiti's tiicrcto. 
 
 Sec note 4 t. 
 
 :v.). 
 
 il.s. 4. 
 
 as to "rcasimaliji' i 
 
 liliLjeii 
 
 li.i,rsiK.\rinN- 
 
 A 1)111 of ex 
 
 eliuitrc was ilrawn o 
 
 m the 'iTth .\ni,'ust, and after passii 
 
 tliroui.;ti the liamis of tw o inti'riiieiliate |iartics. was iireseiiteil l>y the iiohlei 
 
 n the hi Sept 
 
 not lieeii III e 
 
 |ilemliel'. wlieli it W.IS r 
 
 •fu.- 
 
 Ili'lil. that incseiitatiiiii liiul 
 
 A l.ill 
 
 e W II h illi 
 
 lllli 
 
 //i. 
 
 Sri, , 
 
 1! 
 
 I. 
 
 was i|ra,',\ II 111 ill 
 
 qilieati; on tin; IJtli .\nL;iist, at ( 'arl 
 
 4:):^. 
 
 lomar, iii 
 Miivrlanil, 
 
 N'ew fouii'll iiiil. |iay.ilili' ninety ilays alter si::ht on S. itC 
 
 hut was not id'e.seiiteil for 'iceciitance to S. iV Co. nnril the Kith N'oveinlier. 
 
 Carhoiiear was 'JO miles from St. .lo 
 
 with 
 
 ilaily 
 
 ciimmiiiiii;ation 
 
 •twi.;eii tl 
 
 lo-e 1)1 H.'i .-^ 
 
 anil from St. .loliir.~. there wis an oeeaii mail three 
 
 ti' es .'i w'eeU to I'lnirlaml, the avi-r i','e \iivaL;e heiiii;' alimit »;ii'liteen ihiy.- 
 
 IKiil, tint the jury properly foiiml thit the hill was not \ 
 
 )rcseii 
 
 ti'd for 
 
 leeeptaiu'c within a reasiiiilile time, no eiieiiinstanees heiiiL; prove 
 
 III 
 
 '.\[ilaiiatioii of tiie ileliy : Sirnk 
 
 il„ 
 
 4 .M. k \V 
 
 'V\ 
 
 us is a new pi'ovi 
 
 don, and is ajipireiitly intended to prevent drawees 
 
 si.'ttiii'_' np ail ii'ieLjulai' piesentmi;nt of the iiill as an aftertli 
 ne'\\' e.veiise for that given on the lirst refils.il of acceptance. 
 
 il.l.ls'rK.\TH)\. 
 
 ,'lit, 
 
 or as a 
 
 A 
 
 >resentnn;iil. Ill a mil t) the aeeeptor on tli- street, is msnlliMent 
 
 unless h" w.iive the irre _iilai'ity hy a^'i'.'ein,' t') p ly oi' hv refiisiiiL; pay - 
 
 uient 
 
 other siicciliel ground ; Kinj v. Ifo/iii -i, II I'.i. St. 4.")(). 
 
 Hill non- 
 a'v.-pliM 
 wiihiii Iwu 
 iliivs is 
 ilisliuiiiiri'il. 
 liii|i. Ai't.-'.4'J 
 linl.,\i't,-i.r.l. 
 
 " Iiisoh'eiiey. iir liinki'ii|itcy, do'.'.s not I'oiwtitute a l)i'(;acii of a contract 
 so as to e.Neiise the pres.'iitation of a hill for acceptance ; and that a person 
 has .stopped payment is no pimif that he would not acce[)t a hill : /''■ A'jnt 
 fliii/:, L. K. 5 ICij. Hi.-). 
 
 4*i. Wlu'ii a liill i.'^ duly presented for acceptiniec and i.s 
 not aecejded on tlie day of presentment or within two <lays 
 tliereaftcr, tlie person pre.seiitiiio' it must treat it as dis- 
 
 llonoi'eil 
 
 iiv non-acce 
 
 a lice 
 
 if 1 
 
 le iioes 
 
 not, the liolder 
 
 .sltall lose liis riL;iit of recourse against the drawer ami in 
 
 (lorsers. 
 
 i'lie I'aiL;iisli .\('t uses the words •• witliin the customary time, 
 
 /hieh 
 
 itl 
 
 ire ratlier vauue. 
 
 lie ru 
 
 le hitliei'to allowi'd the di 
 
 rawee, it In; reipiireil 
 it, twenty-four hours to consider whether he would accept the bill or not, 
 
TIIK llll.l.S OF KXrilANdK A( I", 
 
 153 
 
 111 it was u.sual for the liuMiT ti» Icavi' tlic l)ills witli liiiii (liiriii>' tliat SeC- 42- 
 
 (1. This cl.uiso (ixcs tlu' liiiiit of tiiiu' for siu'li ('(Misiilcr.itioii to lie "tlu 
 
 iiy of I 
 
 ri'Mentiiitiit or witliiii two d.iAs tlifrriiftt 
 
 (1 if t iic liill lie not 
 
 tli.ii ill ccptiMl, till' |)i'rsoii |)rrs> MtiiiL,' it " iiin-:/ tnut it as (lisiioiiori'ii, " or 
 lose liis riulit of ri'i/oiusi' !i;,','iiii->t the ilriuci' ami itidorsris. 'I'lif time liort; 
 
 :illo\\iil is liliiitnl to " two ill vs." 'I'lli' 1,'i'Miral mil' for tlir r'j||l|Mltatioll 
 
 tiiiii' tixi'il 1)S' a statuti' is, iiiili'ss tin' 
 
 SOIlll'tlllll'' 111 
 
 till, statilti' to tilt; 
 
 trarv. to Imlil tlic lirst ilav I'Xi'liiili'il, ami tlii' last ilav imlmli'il. as 
 
 on 
 
 •uitliili twrlltv ilavs" of tlu; rxi't'iitioli 
 
 /■;, 
 
 / 
 
 ■ irh 
 
 /■',llln 
 
 T. i;. -js:!. 
 
 Tim-' wlii'i't' iiotiix' of ail aitpi'a! from a roiivii;tioii w a-^ ri'i|iiiri'il to lir si'rvi'il 
 
 itliiii six ila\s aftrr" tlii' roiivirtioii, a not 
 
 ici' of apiiral srrvnl on Mon 
 
 till' !ltli Mav, from a, roin'irtiiiii m olo on tin' -ml Ma\- was too lati 
 
 • /'«'« 
 
 V. .lll^firrM ,//• Mhhil, 
 
 7 .Inr. .■>'.)ll. Ami wlurr a statuti.' )>rt; 
 •rilfus a fcrtain iiiiinln'r of ilavs to ilo an ai't. ami tln' last ilav for iloiiij' 
 
 >iK'li an ac 
 
 t fall 
 
 s on a noiniav 
 
 t! 
 
 ii'ii sm 
 
 li ibiv is not cxrlmli'il ; Will: 
 
 I II ■'I'll 
 
 llrUlnii. 1 M. >v- <; 
 
 \V 
 
 ii'i'i; a I'laiin must lir nml'' witliiii a c'l'r- 
 
 taiu .spi;i_'ilii:il tinii', the riL.;lit to inakc tiie claim will Kr forlrit"il liy an 
 oiiiissioii to assi'i't the ri'^lit within tin' ,i;ivt'ii tinie : /''" \\'iit<,,ii v. ./'jl'rr- 
 
 'J I'.iii','. lis, Wlnrt; till' Li'-islaturr lias lixnl thr t 
 
 mil' lor iloint: an 
 
 a'-t, it woiiM 1)L' ])ri'|iosii rolls fur the < 'oiirts to roiinti'iianri' larlics hi'vonil 
 the |»(:rioil within whii'h it hail hern I'onlini'il liy Act of Parliann-iit : Smil/i 
 
 C.'iii/. :i I'.ro. CA\ (1 
 
 it liy s. !)| , of this Alt, whi'io tlir timi' for iloiiij^ 
 
 my act is less than three ilays, nonl 
 US. 14 of the Act) 
 
 nsiiicss I 
 
 are I'M'lmli-' 
 
 T 
 
 lays, (the 1 
 le two ilav.s liel'i 
 
 ii)l:iia\s slieci 
 
 tii'il 
 
 liiiiitcil, wil 
 
 thi'i'i'tiire, oe cxclll-^ivt' of mui-onsiness ilavs. oi' hohil.i 
 
 rior to the 
 
 ■ isioii ill this statute reiiuiriii,!,' tiie acci-|)tam-i' to hr wriiicn on the 
 
 il when less fi 
 
 orinal acceptances were 
 
 lii'M lumliiiL', tie rctiiitioii 
 
 if a lull li 
 
 IN' a drawee lnyond the usual or ciistoniar_\ line', was liehl to 
 
 imouiu to an acceptam: 
 
 //. 
 
 (/■'•< // V. 
 
 M:i rtiii, 1 < '.iinp. -i: 
 
 4,1 A 
 
 .11 
 
 is ili.slioiiDi'ril I iiy iMii-acci'])t;mc 
 
 Di>linn(ir by 
 noil !trri!|il. 
 
 ') W'liiMi it is iluly jii'i'siMitml (iir acrojitaiiOf. ntiil sucli 
 
 iipci' ikiiil iu 
 
 CUIlii lllll'IICl'S 
 
 lit aeccjitaiii'i' 
 
 as IS "i)i't'S( 
 
 liliiil li\- tlii> Act is rrt'usi'il or 
 
 caniiut 111.' (ilitaiiicil : - or — 
 
 (h) When ptvsciitiniMit fill' acceptance' is excused and 
 ill!" bill is nut aci'r[)t('d : 
 
 '2. Sniijec't tn tlie jirovisions nf tliis Act, when a hill is 
 ilisjionored h\' non-acci'iitani'i' an iinnu'diate rio'lit of re- 
 c'liirse ai4'aiiist the drawi'r and indorsers accrues to tlio 
 lioliliT, and no presentment for jiayiucnt is necessary.'* 
 
 Ki'cDursi; in 
 such taisfs. 
 
 It 
 
 is not easy to explain lio\\- the expressions ■'disho 
 
 luor ain 
 
 l"h 
 
 licing, as they are, expressions relating to personal coinluet rather tliaii to 
 •20 
 
|.-»4 
 
 TIIK IMI.I.S dl' KXCII V\(;i: ACT. 
 
 SeC- 43- pffsoiiiil riylits, IjoeaiiU! tccliiiiiMl w oid.s iqiiiliciililc only to tlmse contriiuts 
 
 ln'twcin iiH'i'cliiintH whicli ,iic kimwii ns hills of cxfliai 
 
 !;;(' ami iininiissory 
 iiotr.s. They si'cin to liiivu hctui used ffDin time iiiiinciiiorial l)y the incr- 
 eliiuits of variniiH nationalities in a technical senMC, i'liey havc^ now be- 
 come Wolds of known IcLtal import, with refereneu to such cuiitnietH, and 
 have hccn judicially eonntrucil hy ('ourtu, and rccouni/e(l hy Ic^'islatures, 
 as having a certain ineanini; when ajijilicd to hills or notes ; hut tliey 
 hav.! no recoj^nizeil or te<hnical nieaninj,' or ajiiilieatifin to any other 
 HlWicies of eonti'act know n to the law. "The Solicitor-deneral ai'gncs that 
 the phrase 'duly houort'ii, means accepted; whether it doc.s so or not 
 ha.s hecn h ft to the jurj-. anil they have found that it meant due payment ; 
 
 wliieli is the op 
 
 that I should myself have formed :" /'o- Park, .). 
 
 /. 
 
 I idiriiimi. 7 Taunt. 1()4. A hill is, in tiu' ti'chi'ical ]iiirasc 
 
 lid 
 
 to he honored, wiu'U it is duly ai'ci'ptcil ; when it hecomes payable, by 
 
 apsi 
 
 )f ti 
 
 e oi time 
 
 ■ payi 
 
 it is said to have airived at maturity ; and when acceptance 
 it thereof is refilseil, it is said to be dishdiiorcd : Sfari/ an liills. 
 
 '-■ Presentment for ai'ceptaiice is regulated 
 
 hv s. 
 
 II, 
 
 d tl 
 
 i'(|uisiti 
 
 a vail 
 
 lid 
 
 for 
 
 aeeeptaiice is ( 
 an aeeeptanee. 
 
 accclitance ale (le'line( 
 
 I 1 
 
 IV SS 
 
 am 
 
 m. 
 
 a (Ilia 
 
 lell 
 
 .1 bv s. 41, tl 
 
 le holder ol a hill iiiav retiise such 
 
 lilicd 
 leh 
 
 Th 
 
 'xeiises for non-preseiitment for aeoeptnnce are set out in s. 41, 
 
 T 
 
 SUli s. 
 
 to an acceipt.in 
 
 lis may be read as suoject t 
 
 til 
 
 le provisions in ss. I") and (i4 as 
 
 for 1 
 
 II iiiir, 
 
 •ipra iiiiitest; but the holder is not lioinid ti 
 
 resort to the " referee in ease of need," if such there In 
 
 lii 
 
 acreeintr t( 
 
 take an aecejitanee for honoi', suspends his ri^jlit of action against tli 
 
 <lra« 
 
 er anil iiulni sers. 
 
 lie iiKlorser 
 
 like the drawer 
 
 bill, is liable to 
 
 the holder, tlie moinent the drawee has refused acce|)taiice : J'as.sy. Dij'i 
 
 V. ('. (.). 15. 4bt. 
 
 .\i 
 
 II action lies auainst an iudorser iniiiuM 
 
 liately 
 
 on the 
 
 non-acceptance of the bill by the drawee, although the time for which 
 the bill was drawn, has not expired: lUiUhiijulli v. (llnslir, .3 l']ast4SI. 
 J>ut a drawer may re(|nest that, in case the bill is not honored by the 
 drawee, it be returiu'il without protest, by substituting such words as 
 
 rettirii w ithout proti st 
 
 ~ncii a I.I 
 
 iiidition would bind him. and 
 
 |ierhaps the indorsers : C/iit/i/ on liilh. I "JO, See further s. .38. 
 
 Quiililii'il 
 luv'eptiiruH' 
 may be 
 refused. 
 
 If tukpii 
 without 
 aiithoritv. 
 
 44. The lidldcr ot !i liill may ri'l'u.se to taki' a ([ualified 
 acceptance, and if lie docs not obtain an untjualitiofl accept- 
 ance niiiy treat the bill a.s dislidnoiedliy non-acceptance:' 
 
 :*. WIk'Ic a (lualiHod acce|itance is taken, and the drawer 
 Ol" an [indor^cr hti.s r\ut expressly or impliedly authorized 
 tlie liojder to take a C[ualitied acceptance, or does not sub- 
 siupiently assent thereto, such drawer or iudorser i.s dis- 
 charged from his liability on the bill ; 
 
TiiF, lui.i.s (>!• i:x('ii.\N(a-; act. 
 
 1.5:> 
 
 Tlif provisions of this sub-section «Io not npply to ii Sec. 44 
 |)in'tiiil acci'[»tanc(', wlit'i't'ut' due notico lias l.cfii ^ivun : ruriiiii 
 \vlior(! a f"ort'i<rii bill jui.s liccn aoccptfMl as to part, it must 
 lio prutcstctl as to tln' balance : 
 
 MI'PI'ptADlV. 
 
 .'!. Wlien tile drawer or iiii|()'''"r of a bill receives notice wimtsimii 
 el a (|nalilitM| acceptance, and docs not witlnn a reasonal'le n-cm. 
 time express lii.s dissent to the holder, he shall be deemed 
 to have assented thereto. - 
 
 ' III .'ill cises tlio liolilcr ot' .'v liill is ciititlccl tn liavc ;ui iilisnlntc iiiicoii- 
 liitioiiiil iiiid iin(|iiuliHe(l iu.'ccpt.Tiicf of the hill as dr.iw ii, .iml lie is nut 
 IhiuikI to take 'Uiy otliur : .V'o/// on rtill-<, s. •240. A man is not lininiil to 
 nt'uive a liniit(Hl or t|ualilit'(l accoptaiicc ; In; may ref use it and nsort to 
 the drawer : (loiiniimi v. Srhmull, 'i Taunt. .'{.").'}. And he may ri'fnsc a 
 special iieceptancc w In ii the mode of payment ditlcrs in form irom lliat 
 iiipiired Ky the liiil : lid'lim v 'litrfio", 1 Camp. •<•_'.">. It a hill drawn hy 
 oiif nu'rehant on another is prescnttd for acecptanrc, tlu' drawer has no 
 right '() alter the hill as draw n. or to strike out a \\(jid in it. lie nia\ 
 refuse to accept, or may aciept conditionally. oi- in a (|iialilieil m.inmi' : 
 Diiroix V. Mijiir, 'l:^ (). 1'.. I). •AV.l 
 
 ■-' \ (pialilied ai'ceptanee is a \ari;ition of the oiii^inal contract, and 
 should the holder ai^ree to su< h a variation of the contiaet. \\ dhout the 
 assent of the drawer .and indorser (if any), he disi'har;res them fioiri 
 liahility on the hill. Jf the holder intends tfi refuse the ijualitied accept- 
 ance offered hy the drawer, he should note the hill for non-accept;inee, 
 and should give notice of dishonor to the antecedent parties. If he 
 intends to aecpiiesce in it, he must give notice of the nature of the ,'iccept 
 ;inec to all previous parties, [''ormcrly the law re(|uired him to ohtain 
 the consent of such |)revious parties to his taking a ipialilicd acrptaiice, 
 o|- they were held to he discharged ; Hoirr \. yoiiii'/, 2 I High .Sill . 'i'his 
 clause retains the old ride of law, liut anthori/es the holdci- to give 
 notice of such ((ii.alilied acci'ptaiice to the drawer and indorscrs. ,ind 
 throws u|ioii them the onus of agreeing or disagreeing to tin hoi. lei- 
 taking such Ipialilicd acceptance. If such ipiaUlicd accc[)tance is taken, 
 the holder shotdd not protest the lull, or give a general iKpficc of 
 di.>honor, for he would tlierel)y preclude himself from rccovi>ring aifainst 
 the acceptor: iiylix on liill-<, 149. lint where a holder takes ,i prtrl'inl 
 acceptance lie should protest the hill for tin; i)ah,rice, and give notice of 
 dishonor to all prior parties. 
 
 45. Sul>ject to tl'.e provisions of this Act, a bill must be liiii must bt 
 
 11 1 1 /• 1 • !• •! • 11 la-.-fiiteiJ l(ir 
 
 duly pre.sented tor jiMyment; it it is not so jiresenteil, the r'i>y»"''ii. 
 drawer and indoiser.s shall be discharijed : ' 
 
.')(; 
 
 TIIK l;ll I.S OF KXCIIANIJK ACT, 
 
 Sec. 43 
 
 iec.^. ._). A \>\\\ is iliily iHCsiiitcil I'or |iayiiiciit, wliirh is p 
 
 rt!- 
 
 Klll.VH 11- I., 
 
 |iK seiitiiu'lit 
 \\ Inn Jul'. 
 
 .sciiti'il ill ;icc(ir(l;iiicc witli thi; t'dlluwiii^' iiili'.s : — 
 
 (<i) Wlirrc tlir Mil is not. payalilr on liciiiiinil, prcst'iit- 
 nii'nt iiin-l lie iii;ii|i' on tin' iliiN' it lulls due , - 
 
 Wlh'll |Ml.V- 
 lllilu i>ll 
 duliiiiiiiJ. 
 
 Ui'iixjiiiiM.' 
 tiuiv. 
 
 (I>) w 
 
 KTf till' hill IS [ifiyahli' on <l(iiian<l, then, ^nlt|('f 
 
 1, th 
 
 to the |iro\ isions of tlii>< Act, jii'cscntnn'iit ninst lie nijidi; 
 within !i iciisonalili' tinit' at'lrr its i^.•^n^■, in oi'drr to rnulcr 
 till' drawer lialiK', ainl witliiii a ivasoiiaMc linn' after its in- 
 dorsfinrnt, in order to n ndi'r tlic indorscr lialilc;-*^ 
 
 laiM < rt'- 
 ;,'arilfil. 
 
 I II ih't I'ltllllllllL!' W 
 
 l'r(.,-i.|iliiii.|it 
 
 III |ilO|ILl- 
 
 Ijlaiv lu 
 lia.\i-T. 
 
 hat is a rcasoiiahli" tiim', rci^ard sliall 
 111' had to (lie iialiiic oi" the hill, the iisai;(' ol' trade with 
 i'('L;aril I o similar hilh. and the I'aets of the partieiilar casi'; 
 
 (<■) l're>, ntineiil must hi' niaile hy ilie liolder or hy some 
 piTson aiithori/i'd to receixe jiaymeiit on his iiehalt', at 
 
 (III 
 
 the 1 1 I'll 1 1' r plai-e, as hereiiial'ter delined, eit her to t lie pej': 
 desiui'iiated iiy tlie hill as payer or to his rejiresentativc or 
 some pi'r>.in autlujiized to pay or rel'ii^-e [laynieiit on his 
 liehalt", it', with the exercise of reasonahle dili^'unce, sucli 
 person can there he i'oiind ; < 
 
 iv^iiT piac (,/j \ i,ji] i^ pi'csenttjd at the proper phice,— 
 
 SiiecifU'd : 
 
 Aililit'-.-(if 
 iicci.|il(.r ; 
 
 .An'ci't.'r'.-' 
 plara (.r 
 ImNiiiL'.s- : 
 
 Olhor ("iscs. 
 
 (1) Where a place of payment is speciticd in the bill or 
 acceptance. ai\d the hill is there [)resented ; •'"' 
 
 (2) Where no place of iiayment i.s specified, hut the 
 address of the drawee or acceptor is g'iven in tlie bill, and 
 
 th 
 
 e hill is there j 
 
 nreseii 
 
 ted 
 
 (."i) Where no place of jiayiiieiit is specified and no 
 address given, and the l>ill is presented at thi' drawee's or 
 acceptor's place of business, if known, and if not, at his 
 ordinai'v residence, if known; 
 
 (4) In any other case, if presenti;d to the drawee 
 
 or 
 
 acceptor wherever he can bi: foun<l, oi' if presented at lii.s 
 last known place of business or residence : 
 
Tin; mi.i.s iti' KXriiwci: act, 
 
 I.-)? 
 
 \VI 
 
 ii'iu ii lull IS iircsriu"'!! a 
 
 t th 
 
 [pi'i)|)( r j)ln('r, iiinl, Sec 45 
 
 .'if'tcr (In; rxcrcisr of rras-jiifilplc (lilit^'t'iH-c, no prixm ,int li ■ \Mmi,. n,. 
 
 1 . ,. . 1 !• 1 I lirsuii lit 
 
 ori/,('i| to ])!\y oi' irtllM' |i;i\ llH'lll CUll It tollliil t licli'. Ilo |ir(|i.iii.lttiT. 
 
 lui'tlllT plCSi'llt liicllt to I lie ilraw (■(• or ;uTc]i(ol' In I'l i|lli|'til: Ii 
 
 4. WIhmv a I 
 
 nil HMiawii ii|M)ii Of a{'i'r|ii('(| by two or 
 
 moil' persons who aii' not ]i;ii;tnci'-, anil im \i\:\vr <ii' pay. 
 iiicnt is spccilinl, pi'cscnl nifiit iiiii>.l lir niailc to tin in all : " 
 
 -in ml 
 
 Ilr('i>|it0r». 
 
 w 
 
 •IT till' draw •<■ or acccptoi of a I'ill i-- drail, ainl 
 
 III innit iiiii-~t III' iiiailc 
 
 no pjju'c ol payiiii'iil Is spcfiliiMl, picsi 
 
 to ,'i personal rcpnsriitatix r, it' siieli tlierf is, and with the 
 
 exei'cise of rea^onahle dili''i'ne(' lie can he i'oiiiid : ' 
 
 WlM'IV 
 
 :ii-i'f|itnr W 
 ili'.iil. 
 
 (). W iien> aiit lioii/.ed liy agreement, or usa-^e, a pi'esent- 
 iiient till iii'jh the post oHici.' is siiliicii'iil : - 
 
 7. Where the plaee oF payiiH'iit spei'ilied in till- hill or 
 aeci'ptaiu'e is any eity, town or silla^'e, and no place tln'Ve- 
 iil is speeitied, and the hill is pn seiilcd at thr iliauee's or 
 ac<'e]itor"s known plaee of husine-s or known ordinary 
 reside! ire theri'in, •"' and, iT there is no ■^lleh plaef of Inidiiess 
 or residence the hill is presented at the post ollicc, or 
 
 I'l.-I I. Mice. 
 
 Will II' III. 
 ).|;h-i' ill I ll\ . 
 tn« II. \r., IS 
 Mircllliil, 
 
 [inncipal post ollicc III such eity, town or \illagc, sueh 
 presentment is siiliicieiil. • 
 
 It liiiH been rcc'iiMimcinlt'il liy .liulgos, as a protci'tinii te liaiiUcrs. 
 
 w Ih 
 
 ) luiulit iii.iihcitciitly i).iy liills or iintcs mi I'l 
 
 I run I .SI 
 
 jiiaturis, that 
 
 (licy si Kill 111 rc'i|iiir(' tlirir cir-tDnui.-i t'l '" ilmiiirili- t heir lulls ' at t li.ir '<\\ ii 
 )!' places of laisiiioss, {i. ' ., make thi'iii ^o payalilci, ami thru liniior 
 
 ;i i-hiiiiic oil tliiir 
 
 .Hi 
 
 till in tlit'if will 
 
 It.iikri- tor tlic ni|iiisit 
 
 iitiil for puyiinnt. liy u'i^inu' 
 
 C lllllollll 
 
 t : /;. 
 
 ':nr/^ V. 
 
 Ti:rhr. Hi l». I'., .".till. 
 
 l'r('s(.'iitiiiL'iit for jiayiiioiit, as well iis for an rjitaiiei', an,- go\riinil liy 
 (lillVriiit coiisidti'.Uioiis. 'I'Ik' ])!i>siiitiiiiiit loi arcciitaiu'i' .-lioiilil lie /» /•■ 
 "(11(11 1 , .111(1 iiiaik' to the draw to l;iiii.-.('lf, or to his :i-i'iit . for lu', or his ai;fiit, 
 has pt'i'.sonally to do what the Art rcqiiirt's, — write lii.s signature, with or 
 without additional \0)i(ls, on the hill ; and the loeality of pri'seiitinent is 
 
 1 d y are jiioper. The jie.seiitnii'iit for liayineiit 
 
 aterial, if the hoi 
 
 ir am 
 
 iiliiiulil he Uicd', and mat 
 
 de wl 
 
 lele the inoliev Is, i.v oi 
 
 -ht to li 
 
 that 
 
 the aeeeptor, or his agent, or cori\spondent, or haiike •, niay pay the money 
 calliid for liy the hill. Again, tin; day of the ]>ie.seiit.miit for ,ieee|ptance 
 is immaterial so long as the day is "a Imsiness day. 'and the hour ''a 
 ro.asoiialile hour." lUit the ilay of iiajnieiit is a fixed day (except in the 
 
15.S 
 
 THE J5ILLS OF EXCHANGK At T. 
 
 Sec. 45- ciisi' f)f .siglit or (Icriiaiiil hills), ;uiil iiiiuiot he waived, or an cxtia 
 
 ivy, 
 
 iitlicr iiiiliilgoiice as to time, given. Not only is this duty enforced Ity the 
 law, l)y providing that the jiaitieH to the bill «hall ho diseluirged from 
 liability by its non-oliscrvance ; l)iit the original debt may also lie lost. 
 Viiy where a creditor takes a bill or note from his debtor in satisfaction ol 
 the debt, it will lie i)re.sumed that the money was received, unless th-, 
 contrary is siiown : llvlnhu v. Ihirlsinl:, 4 Ivsp. 4(1. And if the creditor 
 takes a. bill from his debtor, as ci.lhiteial security for the iiayment of InV 
 debt, and if he neglects to present it for payment, or. if dishonored, to 
 give notice of such disiionor, and the bill conscijuently bec(jmes worth 
 less, he cannot afteiwards sue his ileb*^or either oi- the bill, or for the 
 original consideration: I'laaickw l'iirs<iU, 14 C 15. \. S. 7'2S ; but see 
 /iu/tom/ci/ V. Xiitlidl, ."» ('. B. N. S. ,'{1"). In strict lav no demand is 
 necessary against an acceptor, but in practice a demand is usuil : Mr/n- 
 l<i>ih v, //fi/i/oii, Ry. & Mo. 3(i'2. lint see s. 52 sub-s. -. The pi-ovisions 
 of the Act, to which this section is made sul)ject, are the clauses which 
 deline what are excuses for non-pre.seutment for payment and delay. See 
 also, s. ."{!*, sulis. 4 ; and notes to s. 4(i. 
 
 'In tlie section prescriiiing the rules for presentment for acceptance 
 (s. 41), it is re(|uired tliat tiie presi'ntmeiit lii' made "at a I'casonable horn- 
 on a business day." Prior to tliis Act, such was the rule and the custom 
 of merciiants, as to presentment of a bill for p:iyment. What is a I'eason 
 aliK' hour fur presenting a bill for ))ayment, may l)e illustrated as follows. 
 If a bill is payalilc at a bank, the presentment should bo during lianking 
 hours. If ]iayable at a jxist ollice, then <luring the regidar post ottice 
 hours. If payable at an oliico or a place of business, then tUii'ing the 
 ordinary ottice or Imsiness hours. If payalde at a private house, then 
 at any reasona))le hour up to about bed-time. What are reasonalde 
 hours, must be .letermineil by the present customs of locaiities, and not by 
 the earlier cases, for business hours are diUerent now to what they were a 
 century ago. Tlu! luiglish -Act repeats these words in clause ir) ; bur 
 though they are omittid in this section, it may be assumed that the old 
 nde will still hv a])plicablc, 
 
 Il.l.rsTHAIlONS. 
 
 A demand i.i.idc tlie tlay Ijcfore the bill matures is insuliicient : JJinri/ 
 V. Jiiiirs, 8 Mass. -lo'A. 
 
 Demand of payment of a bill made on the second day of grace, is a 
 nullity : ir/;/;/</( v. Ju'dIk rf.i, 1 K-ip. l!(il. 
 
 The pri'sentment of a note a few nun''.tes before twelve o'clock at 
 night, is )iot a reason.ilile houi', and Tiot sutlicient to hold an indorser : 
 Dana v. Safi/'-r, '22 .Me. '244. 
 
 A |)rcsentment of a bill at a counting house (where it is made jjayable). 
 between si\ and seven o clock m the evening is suliicient : J/(>i(/(Ui v. 
 Iktfixuii, I Stark. 114; or at ei;.dit in the evening, /tmr/ni/ v. Hni/ii/, 2 
 
 Cam)). o'J? 
 
 2 15. & Ad. ISS. 
 
 p. Triijij" v. Ni 
 
 1 C. & F. (i.'il : W ilk- 
 
 ins v 
 
 Jadi 
 
TIIK HILLS t)F KXCII.aNCJK ACT. 
 
 I :.!) 
 
 WluTL- (IciiKinil was not in.nle iii 
 
 itil till' Idiirlli (lay alter inatuiity of Sec- 45- 
 
 tlif hill ;- llt'Id, that tiiu diawurs wcii.' (li.s<hal>;i'(l ; (hKir v 
 llCill (M(l.) :r)(». 
 
 Wlu'U tiio maker of a iioto livcil 'JOO iiiik.s from tlu: lioldtT, a (Iriiiand 
 made uitiiiii six days of the matin ity of tliu note, was hrld lo Im 
 suHi'.iL'iit : Frci until v. Jiui/iitoii, 7 Mass. 4So. 
 
 A note dati'd "iotli Felji'uury (leap year) payahU^ uiiit'ty days after date, 
 docs not fall due until '2'Jlli May, ami a protest and notice hefore that 
 date was held to he jilematiire : Ciut'/ V. S/dtn Hank, 7 Ind. '2[\). Sec 
 also Kiilihr V. Moiilijohii rij, 17 Ind. 'J'JO. 
 
 A hill diawu in 'i'oronto, on the (ith AiiL,'iist, npon a p.irty living,' in New 
 N'ork, payalile at si:;lit, in favour of a \n\'{\ livim; in Illinois, was presented 
 in New Vol'U on the lOlh November followini; : Held, that the delay 
 couM not. tinder the circntnstanees, hi! held to be laches on the [)art of the 
 holder; /)r///(.< V. ./ij<ijill, 7 L'. (.'. <i>. !>. ."ill."!. 
 
 Before the .statute it was held in <^>uebec, that if the h"Mer of a bill of 
 e.xehan^e locks it n[i for two years, lie m ikt's it his owt . and e iiinot have 
 recourse to the person from whom he received it : Riiiilnn v. '/'()iiniiii/( (in, 
 (1S20), "2 Rev. Lej,', .S(» ; s. p. Ilri'l'j/onl v. 'Sim uk/-^, '7 La. An. 121. 
 
 ■ This provision a[)plies to elieipies, as well as to bills or notes payable on 
 hiii:ind. It is always to be considered whether under the eireiimstaiiees 
 of the case, the cliei|ue has lu.'en presented with reason, ible diliL;enee. 
 
 eciuires. IJankers would be kept in a 
 
 J'liis is what tin law-meichaiit 
 
 jonliuu.il fever if they were oijliited to send out 
 
 I elie<pie the moment it 
 
 \\ as 
 
 laM 111. 
 
 1 1 was a oiiestion at (he time of the older eases, whether 
 
 w hat was a reasona 
 
 ble ti 
 
 as not for the jury, but in the case of /i'/i7,'- 
 
 ■'/ 
 
 A'/'A 
 
 iisioiis ot the 
 
 •_' Call! 
 .-\et llo\ 
 
 it was settled to be for the .hiiU 
 
 Th 
 
 II.' nro- 
 
 <e it a mixed (luestioii n 
 
 Law ai:d lacl. ."sectioii 
 
 Hldelines w hat is a bill |ia\able on demand ; s. ,S(J, sul).s. .'{, preset ilxts the 
 
 lie for determinini' when sue! 
 
 maitd bill is to 
 
 le considered as ov(;r 
 
 due. .See also s. 40, us to the iireseiitmeiit iHv acceptance or ne;,fotiati(»n 
 bill [) ly.ible after sight; and also the cases as to l•ea^ollable time 
 
 ■A a 
 M.'ferri 
 
 d t( 
 
 the notes to these sections. 
 
 )'elock at 
 indorser : 
 
 .\di 
 
 Il.LCSTK.VnoN.S. 
 d 
 
 eiiiand m ide wtthtii seven days on the maker ot a note piiy.ililL' <jn 
 
 i|emaii<l. is reasonable: .Si an,- v. 
 
 1. 1 
 
 ilii, •_'! 
 
 (M; 
 
 L'b 
 
 A delay of two weeks in presenting; a demand note tor iiiyiiient, after 
 
 it eoiiiet- into the hands of a hole 
 /: iK/i riii'ib r, '2-lVii\. :«!•. 
 
 /iriiihi /iicii unreasoiialile 
 
 .//. s V. 
 
 .\ delay of live months ami a half to :;ive notice of a demand and non- 
 yiiieiit, unexplained, was held to amount to ii:ross negligence ; I'Jl/ls v. 
 
 14 Ark. 1-. 
 
 >o a (tela 
 
 a 1/(1' 
 
 Iso 77/ 
 
 'iih'll . 
 
 y 
 
 )f 
 
 eiuht months : Fir/,/ 
 
 Mr/c, 
 
 • v. llmrlcll, 1/iii/. .•).".l) : .h 
 
 Sii lilii 
 
 14 . 
 
 il. 4,- 
 
 S< i/ 
 
 Vinhiiil y. J/yilr,2\lM. {S. \.j4-2'.). 
 
 .\ note or ehe(|Ue received about noon on one day, it is a reasonable 
 time to go for the money the next morning ; but if the party receiving it 
 keep it f(U- several days without demanding payment, atid the jiayt'c 
 Income insolvent, he must bear the loss ; W'ltri/ v. h'ruii<, "J Ld. Kayiii. 
 !)2S. 
 
KiO 
 
 Tin: i!ii,i.s (IK kx('ii.\x<;k act 
 
 Sec. 46. ■• '!'!»'' I'ill niu.st 111' prfsclltril liy flic liolilcr n|- liis ;i;_'clit, wliii must cxlii 
 
 l>it tlw liill to till' pi.r.siiii fi oiii w liiiiii Ik- (U'lnamls piiyiiioiit ami lif naily to 
 j,'ivo it ii]i on rerciviiii; ii.iyriiuiit, (s. .I'i, miIi-s. 4). I'l'cscntiiuiit fur pay- 
 ment niii.-t 1)0 stirli a, prose* Mit'iit as uiuiM lie >nlliiii nt to I'liai'go tlie 
 in(l(H'st'iH, "i- (illiiT pcr.-.un.s collati'ially liaMc mi tlic liill : tlriijiii v. 
 Weafhi i-lii/, \.. !;. .'!. i}. it. Tti". i'mniLi ly a ili niaml of p.iyiiu'iit of a 
 foroigi) lull hy a Kankn's i li rli was not siilliciiiit. •• I'll'' ilfinand of a 
 f<)rei^i;n hill must In' inadi' liy a notary |iuMii'. to whom ii -ilii is gi\iii, 
 htcaiise 111' is a ]iuMi(' otlinr :" /'w HulKi', .1. , iu /,•///'// v. Mills. \ '\\ 1;. 
 ITil. 
 
 ll.l.l srtlA'l'loNS. 
 
 Till' lioiiliT III' a liill acooptL'il ' yalilr at a 1) iiikrrs, iiiiiilinlly a.L.'1'i't'-. to 
 picsi-iit it fur paymint within tlic usual liaiikiirj' li"iir>; I'li r'.i r \. (Inr- 
 lion, 7 i'liist .'(Sr). 
 
 I'liit prr-iiitinnit ni a. hill afti'l' tlio usual liuurs is siilli'iont, pro- 
 vided tliric is s.imliudy at llic ula.'r. who sees tin' lull '^v ;.:i\'i's an answer; 
 otlu-i w i>c It will iiui he snUii'iont : lliiinj v. J,i.. •_' Chit. l'_M. 
 
 A prcsriitmiiit at a hankin'j; liou-c ;iftir hours when the huusc is 
 .sluit, is Hut Milii'iriit to cliaiL;'' tho dr.iwir; .-11111 uu infi-mirr is to he 
 drawn Hum the 'iirum^lan' r of the lull hciiiu pii'.-.iiiti d hya notai'y. that 
 it had huuii lieiori' pnsi-ntid within li.iukiii,' liours : lUfnnl v. 'I'liil, I M. 
 & S. 'J.S. 
 
 'I'll',' arrcptiir of a hill j^aid the amoiU't to !iis h.iiikirs, (|iart of whicli 
 he had hoiruvcd fiuin llio holder of the hill) the d.iy heinrc the hill 
 fell due. On the uiuniini.' of the day it w.is due, the aeei ptor died, .-.inl 
 the li.inkers refund payment. The hohhr then sued the hankers, hut it 
 Was held that tlieie was no iirivit\- hetween them, and the action was dis- 
 mi.-sed : ///// v. /,'i yi/v. 1,. I!. ,S l'.'i|. •JIK). 
 
 '■' ]''urmeily it w.is held that an aeei-plaiiee uf a hill pay.ihle at a paiiie- 
 idar iil.iee was .-i ini.dilii'd aeeeptaiiee, and that presentment at sneh place 
 was ahsolulely neeoss.'iry. iiut later legislation (7 W'ni. I\'. c. .") : ('. S. 
 U. (.!. o. 4'_* ; II, S. ('. I'. rj:?i. priivided that an .'leceptauee )„iyahle at a 
 [)artii'ular |il e-,' should he held to In' a 'jiiier.d aeeeptaiiee, unless tlie 
 Jiceeptor ur makei' stated on the hill or imte that it was to he payahic 
 thel'e only ,iiid not olhi-rv ise or el>ew here. This pru ismi, reipiii ini^ the 
 word.s "only and not otheiwise' or elsewhere," to he st ited in the lull or 
 note, has not heeii rc-enaeted in s. Ill, althou.;li .--ueh a ])rovisi()n is cou- 
 tiiined in tin- similar el.uise iu the iMielisli .Act. The rcsiiU of thi.s change 
 in the l.iw is til ini[iorl ;i nuticealile ]i. euli u ity and diU'eiciice respecting 
 the eli' ct of designatiiii^ on a hill of exehaiiee. or a jtroiiiissoiy note, the 
 place of p.iymeiit. In the case of a hill, an aci'e|itance to p.iy at a p.ir 
 ticill.ir specilicd pilace is deliued, liy s. Ill, to he neilhcreundiliuii.il h"! 
 (pialilied, and therefore a j,'ener,il acceptance: which, under the former 
 liLW, anthori/ed tlie holder, at his option, to pies'nt the hill, cither at the 
 partienl ir specili 'd place, or to tiic .icceptur [lersuii dly. lint there i- 
 notliin,i,f in thi.s .Act as to wiicthcr this o|itiun is cuntiniicd uriiut. The 
 liroeceilinys iu this section reyulate the niude and prucediirc oi present- 
 
■|IIK i;il.I,S OF KXCII \(ii: ACT. 
 
 IGl 
 
 h place 
 ) ; C. S. 
 
 I.' at a 
 
 rss th. 
 inyalilc 
 
 I in:,' til'-' 
 ,. hill or 
 
 is 1(111- 
 
 , rhiUlLrc 
 <|icctill,il 
 lite, tlu- 
 it a \nv 
 uiial ii'ii' 
 ■ foriiuT 
 , r at tin 
 
 tlKTO 1- 
 
 .,t. 'I'lir 
 Jiff -> lit 
 
 iiiinit f(jr payinciit. in tlir ims^ of a iiotL', tlu' inoiiiisc to pay at a parti SeC 45- 
 
 ciilar spi'cilicd placi! is iiiulc part of tliu fnutrai't, ami tlifa: is im statu- ' 
 
 tory provision (as tlioii; WIS in the <msu of a hill), alti-tiiig t lie fHuct of 
 
 tliat condition, or i^ivin^' tiir liol.iiT any o[itioii as to tli • plai'o oi' pii'sciit- 
 
 mi'iit for paynii'iit, 'I'lir riVict is tin; saiiu; as if tlio noli- \vi,-ie ni nlf piyalile 
 
 at thu <ltsit,'natfcl place, •'only aiiil not otlierwise or elsewiii>re." 'There is 
 
 •in a^reijini-iii in the jau as to w liat pii-sriitiiii'iit will uiaki' the primary 
 
 itor in eaeli case liaUIe. A liiii ni'eil not lie piis.iilcl on I 
 
 1'- ila\- it 
 
 matures in nider to render the ae<-ei)tor lialile, unless tl 
 
 lele is an express 
 
 stipid ition on tht,' iiill t') the cdiitrary (s. .">•_'). Similarly, it a note is not 
 I'T iite<l on the day it matures, the omission cloes not iliseharjie the maker, 
 
 . S(i). 
 t ) s. 8!». 
 
 )to 2 to s. IS, p. ~'y, and note 4 to s. 40, p. HS, and notes 
 
 Ii.i.fs'ritArn 
 
 W'lere . lii'I is made piyalile at a partiiiil 
 
 ir plaee. p 
 
 re- ntmeiit then 
 
 'r jiayniei.: ui 
 
 1 tiiu di 
 
 111.', IS siillieHMit to i-har. 
 
 the dra\ 
 
 l.'u/llirilso; V. /)((„!,/<. ,") L'. ' '. O. S. 071. 
 
 Where A. 
 
 aranteed (U'rtaiiia Kanei'sof '_;oods ami nioiiev. to 1) 
 
 iiiaile to 1». i)y the plaintitl'. and the plaintill took IJ.'s note, payaMe at a 
 partienlMr place, for tlu; amount ; Held, that lie ( oiild maintain no 
 .iL'tio I aa,itii-t A. without ]MOviiie; presentment there, aiel notice (pf non- 
 
 laVh..'!! 
 
 ! •• A. : /) 
 
 ri'.i'/^ V. 
 
 .'(. (i i;, c. (). s. ;u(>. 
 
 Held, that ;i note made payaMe at t!ie ri'sideiice of ilie maker, at 
 mly and not otherwise or el.sewhcre," did HOC reipiire any 
 
 >>tratnro\-. 
 
 -peci.il 'orm of presentment, it haviiiJ' heeii on the day it matured, at that 
 
 place with the m iker : //• 
 
 V. /' 
 
 ■/■/■//, 
 
 til 
 s U. ('. ('. I'. 107 
 
 meinor.induni at the foot, or in t 
 
 particular place of j)a\ nieiit, foriiib no part 
 
 ic iiiar;iiii, ot a nc 
 
 licatiiii' a 
 
 ot tlic coll 
 
 trc-t, thipii-li 
 
 'le eontemuoraneiuis wiHithe note itself: Wifii 
 
 U'aniHj, 10 
 
 llO\\' S. Ml, Mil 
 
 th(! 1, 
 
 A drawir's aeei])taiice of a hill payalile at his bankers is tantamount to 
 order t ) the hanker to pay tin; hill to any p. rson who aei'.irdilii; to 
 
 iw-liiercliaiit can eivo a 
 
 if) Q I!. ."idO. The hank 
 
 valid dischaiire for it : It'luni.-t w Tiichi 
 
 th 
 
 ■rs caiii'.ot <'liai"'e their eiislomeis with any other 
 
 ]iaynients than those made in pursuance of that aiitlioritv : /'• /■ I'arke, B. 
 \\ here a note was jiresi'iited foi' payment on the day it fell due at tht 
 
 ice where tlie maker hait presioiisly earn 
 
 d on I 
 
 ii-iness. ami a lieisou 
 
 uas there whom the ,jui>' found was an a.;ent of the maker; Held, a 
 -iillitieiit preseiitnu'iiL : Filrhw Ki'hi. \' I'. ( '. I,!. I>. .'i7>!. 
 
 ' I l.l.rSIKAl IONS. 
 
 It is not necessary that pa\ment ho demanded hy a notary ; any at,'ont 
 • : the holder may make such diinand : '!'■ ijlur v. /)(irit/^ijii, 2 C'ranch ('.(_'. 
 
 t:il. 
 
 .\ demand of paynu iit made on the assi;^fiie<.' of an insoUi nt linn is not 
 1 'iillicienl demand to hold the indtjiser : vl i-i'i'di a/hj v. 'J7iii,.~lnii, 1 1 Md. 
 I is. 
 
 A pri'seiitment of a hill hy a notary to tin- aieeptoi on the .street is not 
 
 illlicleiit inesentint'li 
 
 t ; /< 
 
 ii'J V, 
 
 l/<,h,i<.^, II I'a. St. 4oll. 
 
 W 
 
 icre ii no 
 
 te lb d 
 
 rawii pay 
 
 ahle .it the house of N'., and the notary does 
 
 )t present it to the inakei A. there, ntir imiuire wLelhei he had left 
 •21 
 
wmmm 
 
 162 
 
 THK HILLS OF EXCHANGE ACT, 
 
 Sec 45- fmiils to pay it, l)ut ]ircs<'iits it tn Y., and (Icniaiiils p.iyiiiciit of li 
 
 • lli'M. not suHicifnt to hold tliu IuiIoislts : Mirli(i)i'u\s iJiink v. I. 
 
 Cr.mcli C. (". -JIT. 
 
 An .■niTMicnt i'l ])lt'a.liiij,' tliat the hill, when duf, was prcspiitod fo 
 nicnt, is sii|i|)oitiMl l)y proof that the holder wont to tho pi ici; nan 
 pi'csiiit it. liut found thu liousu shut up, and uu one there : lliicc v. . 
 ■4 I!. \-. Ad. (•.•_>l. 
 
 If tile ni dvors of a note who had become insolvent, have shut ii 
 ahandoncd their shop, this is evidenee of a declaration to all the wi 
 their refusal to p.iy their note there : ll'iid- v. lionx'', HJ Ivist I i'2. 
 
 A note was made hy one .\., ])ayal)le at no jiartieular plu^e, was 
 the liank in ('. , where A. then resided, for eoileetion ; anil the eler 
 was to present it, statiMl that on its heeoming due he went to the 
 in whie'ii .\. had resided, liut could get no information res])eetinL 
 Ifeeni|uired of more than one person who hul known A. well, hut 
 answers as to where he had j,'one were eonilicting. It was proved fi 
 defence that the maker made no .secret of his intended departure ; tl 
 furniture was advertised ; and that peisons could at any tine: have 
 collect information as to his jilace of residence ; — Held, that at 
 appliiati<(ii should ha\e lu'en made at the places to whieli \. was s 
 have goiU' ; that due diligence had not heen used todisi'over his rt^si 
 And seiul)le, that the question of diligence is not wliollv a (piesti 
 the jury : liruimc v. livutlon, !» V. V. Q. 11. 04 : ii.p., 10 'l'. C. (.». I 
 
 ■'■ There may he a dilliculty in practically working out this clause \ 
 after the making of the joint note, some one f)r more of the joint n 
 remove to distant localities, so that presentment to each on the <1 
 hill matures, is impossihle. In such a ease s. 4(1 niay he invoked to 
 the non |)resentment. 
 
 Il.I.rsTKAIloNS. 
 
 A joint and several note made jiayahle at tlieir separate dwelling; li 
 was presented to hoth makers in the yar(l of one of them, and no olij 
 was made liy either as to the i)laee of demand of payment ; — Held 
 eient : litdihr'tit v. Farn-ororl/i, 10 .\Ie. (Fair. ) 414. 
 
 Presentment to one oidy of the makers of a joint note is not suiiici 
 charge an indorser : Arnold v. />/■/«<,■, S .All. (.Mass. ) 4.'}.") ; s. p, 'i 
 V. /)iiri(/s(iii, 2 ('ranch C ('. 4:U ; Sul amlra, Slml v. Urctt, 1 
 (^Li.ss.) 401 ; Harris v. CkirL; 10 < »hio .'). 
 
 Where a note is signeil hy several joint make:>, who are chargea 
 the same eoiitraet. and in die same <a[iacity, the holder must pi(jvo 
 against ail of them : Siflun v. MrCnl,^', (i U. C. (). li. :!!I4. 
 
 ^ Formerly it was allowahlc. where a hill was accepted, payahh 
 particular place, and tiie aeceptiu' had died hefore it l)ecauiedue, to 
 jucsentiueiit at the specified place ; and it was not necessary to sho 
 sentiuent at the house of tile deceased's lepre-sentatives : /'liilj 
 Hri/iiiil, 4 I'ing. 717. But wheie a hill was presented at the housi; 
 acceptor, and the drawer, to whom it was shown, said that the ac 
 was deail, and that he was his executor. an<l asked that it might 
 o\er for a few days, sucii preseiitinent was lield sutlicient: C'aiud v. 'I 
 .son, 7 C. 15. 400. 
 
[ANGE ACT. 
 
 I ileniiuuls )):iyin('nt of him ;— 
 s ; Mtckauici Haul: v. Lynn, -2 
 
 lull due, wa-i prcs^niitod for pay 
 ler wiiiit to till! iilici; iiiuiiuil to 
 il no Olio tliuru : I fin.', v. AHth/, 
 
 1110 insolvoiit, have shut up iind 
 idocliiratioii to all tiio world oi 
 tvv. liuir€.-<, U; Ivist ll'i. 
 
 no ]iartioiilar place, was left at 
 r oolloftioii ; and the iderk wlio 
 ling duo ho wont to tlio lionso 
 lo nifonnation respecting! him. 
 
 ha<l Unown A. well, but their 
 itlictini:. It was proved for the 
 his intended departure ; that his 
 us could at any time have given 
 resilience ; — Hold, that at least 
 J places to wiiich A. was said to 
 jn useil todis(;ovor his re.sidoiiee. 
 CO is not wiiollv a ipiestion fnr 
 
 i;. i;4:..p., 10 r. (-'. <.>. I'.. 1-".'. 
 
 ly working out this clansu where. 
 jiio or more of the joint maker> 
 nituunt to eaoh on the day the 
 ,e s. 4() may bo invoked to excuse 
 
 ONS. 
 
 it their seiiarato dwelling houses, 
 f one of tlioin, and no ol)joctiiiii 
 iiaiid of payment ; — Hold, sulii 
 'air.) 414. 
 
 if a joint note is not suilicieut to 
 S All. (.Mass.) 4:?.") ; s. p. T(ii//<.r 
 I rniiira, S/ni/ v. /irr/l, 1 Pick. 
 
 t inak. 1-, w ho are ohargeahlf on 
 ■ity. the holder must prove a case 
 U. C. (). 15. :i!l4. 
 
 lill was accepted, payable at a 
 ed before it became due, to proM' 
 t was not necessary to show pn 
 's representatives : PliilpoN v. 
 as presented at the house of tlu- 
 ! shown, said that the accepter 
 and asked that it might stand 
 hold suilicieut: Cauid v. Thumi 
 
 THK TUIJ.S OF KXCHAN(JK ACT. 163 
 
 ^ It cannot bo .said that a general usage of prcsnntiront through the SeC- 45- 
 post olliei! hail been adopted in Canada [irior to this en,u.":neiit, exropt in ' 
 
 pi ice> where there had been no bulking facilities. IJut in I']iiL,daiid such 
 ■I modi,' of preseiitnieiit is a ri:i'ogni/od praeti(;e ; and the custom of li.ilik- 
 iis there is, when a foreiu'ii ehei|Ue is deposited wilh a banker by a lusto- 
 n\rv, to forward it by post direct to the drawees: I li iiirninl v. I'iik, rin'i. 
 !.. K. it (^». 15. 4.'5'_'. A [Uesentmont through the post otlico i'j a reasoiiablt! 
 mode of prosontiiient : /'/V'A «».'• v. ''rid'/h, I.. I!. 4 (,>. 15 4(11. The rule 
 whitdi ci(nvonioiu:e rcipiires should be adopted : ltii:kj'(ir(l v. H'lhji , '1 (amp. 
 .-i.'i'.t. 
 
 " llJ.rsTUAlloNS. 
 
 -Vii acc(-'[itani;e of a bill ilrawii and iiayabh' to the drawer's order in 
 li'indon is a general aceoptanei>, anil a special [iresentineiit is not noccs- 
 siry : Funic v. li.nl, (I 15. it C. .l.'JI. 
 
 I'roof of presentment of a liill so drawn payable in Condon, or excuse 
 foi' iion-prest'iitmeiit is not iiecissiry : S( Ihi/ v. h'll'n, ."5 Bing. (il I. 
 
 ' '{"his clause is now, and there is no corresponding clause in the laigli>h 
 \ct. The prior clause authorizes the inosent ition of a bill for payment 
 through the post oliico, /. i. , smding it by post to the ao-eptor lor pay- 
 i.ieiit. 'J'liis clause [irovides for |)rosciitmeiit for uaynieiit being made uf 
 flic post ollice. It may be s.ud t') have been the more general ])racl,iee nf 
 bankers and not.iries, in the i;ases moiitionod in the el.iii-^i'. to present the 
 bill at a bank, the most a|ipropriato jilace for an acceptor to plaeo tile 
 iiK.ni'y so as to have it road) on tlu; a()poiiitod day to meet the bill. It is 
 no |).irt of the duty of a [lostmastor lo act as lianker, or bailee, for the 
 acceptors of bills or makers of notes, and he may reasonably refuse such a 
 responsibility. " The postmaster receives no hire, and enters inti> no eon- 
 tr.ict with individuals, and carries on no commerce or merohandiso ; the 
 pn-;t oliioe is a braiu li of the revenue, ami a branch of the police :" /'' r 
 Ivinl Man.stield, C. J,, in WhiUiihl v. Lm-'l l)i <iiiiiii i\ '1 < owp. 7"'4. 
 Ilesides ho is not allowed any fi'o, nor roiiuirod to gi\o any security, for 
 holding money i'or the convenience of sin-h parties. .Any otiier puldir 
 oilicer in the city town or village, such as the ni:iyor, clerk, or troasnier, or 
 police magistrate or clerk, or the customs, or revenue otlici'r would lie 
 eipially approp''i:Lte. As everj' city and town, as well as every < illag'' of 
 any importance, has a bank in it ; the jiresent itioii of a bill or note at tin 
 ]i.ist ollice instead of that most appro[)riate place, a bank,, is somewhat 
 aimmalous. 
 
 4<». Dt'liiy ill makiiii;' pvi'-^iiitnu'iit for |i;iyiiiiiit is i'.\- ui,,,,, ,ieiay 
 rii-i'il wlii'ii the ilid;iy is causril liy cii'cuin^taiiirs lioyiniil m,.',','!' t".'," 
 till' control of thr li AAnv, ainl not iiuputalilc! to his iiid'.nilt, mx.^i'i'm..,'!. '" 
 iiiisc'<)iiilu{;r or uei''lii''enct! : wlu.'n the cause of iK'lav crasi's !',"r'.\'",'l''-'!'* 
 to opciate, pi'e.sentnieut must he mailf witli lea^oii.ililc 
 'litii'cnco : I 
 
1G+ 
 
 THK HIIJ,S Ol' KXCIIANUK ACT. 
 
 Sec- 46. 2. l'r(\K('iitniont for j)fiyiiu'iit is dispensed witli — 
 
 prcMMiunVnt (") Wlu'i'c, at'tci' the t'xerci.sc of reasoiial'le diligonoc. 
 with. pvcsi'iitiiH'iit, as ivquiivd by tins Act, cannot i'c cllfctcd; - 
 
 Tliu fact tliiit tli(' lioldcr liMs reason to btTicse tliat tin 
 bill will, on ])rcs(;ntnifnt, be disli!,iion'(l, docs not dispcn^i 
 with till' iiccfssity foi' ])rescntiiicnt :-5 
 
 (/>) Wlicrr the di'aweo is a tlctitions jioi'soii ; -^ 
 
 ((') x\s i'('if'-ii-ds tli(! di'aw'fM', where tlic drawee oi'aceejitui 
 is lutt houmh as hctweeii himself and tlie drawei', to aecept 
 or pay the lijlj, and the liiawer has no reason to helieve 
 that the hill would he paid if presenteil ; •'> 
 
 ((/) As veoards an indorser, Avhei'e the hill was aecepte.I 
 or made for the aecoiniiiodation of that iinlorsei', aid In 
 lias no rea-on to exjiect that the hill would be paid if pie 
 senteil ; 
 
 {(') ]3y waiver of prt'sentnient, express or iinplie(l.''> 
 
 ' 'I'lic lioldi'i' of ,1 hill i? Ixiund l)y his implied undiTtikiiij.'' or <luty t' 
 t'Viiv other p.ifty to tile 1)111. to present it to the aeouptor at iiiatuiity for 
 paynieiit, l(. allow no extra time, and in ease of non payment to give iiotire. 
 and do all proi)er acts rccpiired by law, without delay to overy such party, 
 of the dishonor of the liill. A default in any of these respeets will di.-- 
 char^'e till' paity in respect to whom theio iias lieen any such default. 
 and who otherw ise would he liound to pay the same, from all respmisi 
 hility on .-lecount of the non-aeeeptanct^ or iion-]iaynLent of the hill, aui 
 Mill o[)erate as a satisfaction of any deht or ilemand for which it wa- 
 given : Sinri/ on l>ill.<. s. 112. Ihlt this clause provides for ri lief from 
 this ahsoluti? nile, in eases of rlt iiuijor, nor imputahle to the hoi h r',- 
 default, misconduct, or negligence. Those terms arc also used in a. ."I'l, 
 as to delay in giving notice tif dishonor ; ano in s. 51, sub s. !), as to delay 
 in noting or protesting a dishonored bill. Of each of these dcliiKpiciuii s 
 there are degrees, and they are graduated according to such incidents a . 
 tolatinnship, or duty, or results. They have entered into judicial con 
 sider.'ition in cases afFecting a trustee and his i-flui unr trust, ])rincipiil and 
 surety, bailor or bailee, principal and agent, master and serv.'int. In soiue 
 classes of relationship simple default, or simple negligence, will crcat<' .i 
 liability in one wiio, by himself or another, is held to he legall.y n.'sjionsihle 
 for the result ; while in other classes of relationship such di'fanlt or iiegli 
 gence, though hurtful, will l)ring no penalty (jii the defaulting or negligent 
 
Tin; RH-LS OF KX(JIl.VN(iK ACT. 
 
 1(15 
 
 <>iic; tlu' <U\i,'rfc ill such ciis'' must Ix^ will'iil drfaii!' , or riil,ial)lo or lji'dss SeC- 46- 
 
 iirgli^^a'in'c. Ami tlii'si', ill llicir turn, iii:i\' !»• alVortnl Ky the iiu'idi'iits ' 
 
 at (■oiicurriiiy 111' (Mmtriljiitiiry <U'fiuilt or nc^^'ligcnci' or iiiisrnniliul, on tin-, 
 
 |iai t of till' otlicr piirty. Tlii.' st.inihird aicoriliiiy; to u liicli tlic diitifs prc- 
 
 scrilicd and di lini'd liv llu' Ai't. arc to 'm' ]it:i'foiiin'd, is, a|(|) iri'iitly from 
 
 it> fi'C(|iaMit list' tliroiii,dioiit tlie Act,tli;itof " i'i(k<iiiiiihh ilU'fji in .'and it 
 
 may llnrufore fairly lie assiiniiil, until judicial authority otlicrw i.sc iiitcr- 
 
 |irctH, that the "default and '" iicylii'du t" (Ihmiil; what may he <h lined 
 
 IS iKtss'in- ddiiKjUcncios), tlcNcrihcd in the Act. may mean such dc^ici' of 
 
 ihf.i'ilt or ne.i,'li<,;cnee as i.s the reverse of reasoiiahle diii^^eiic' , and uhich 
 
 lias heen detincil hy Ijhielvliiirii, ■!., in Sir.iii v. Xor/h British A ii-i nilian Cn,, 
 
 il NV. 11. S(j'.', to lie "tlie neglect of .-.oiiie duty cast il]>on tlie |)alty wlio 
 
 IS guilty of it, .'vml for which no excu.--ahle f.ict can lie estalilislied ;" ami 
 
 tliat "iniscoiuluet" dicing what may 1m; detined as an n'-iir, iUlini|Ueiicy), 
 
 may receive its ordinary .signilicatioii, and he apiilied accordingly, without 
 
 my intervening /ocus p, niii uH'i . Tlie law may he sc\ ere in la\ iiig so higii 
 
 a penalty on an omission ; hut an omission from incap.acity or in ihility i.s 
 
 f'uc thing, an omission from iiegligeiicr is aiiotiici'. 'I'lie iici;icct of doing 
 
 1 iiarticuhvr act i.s an oll'cnce : a mere oini.ssioii to do it, ,is in the ca>e .<f 
 
 [111 \ {•ntion hy siH)eiior force, is ii<it an oil. nee : /'< /■ Loid I )ennian. < '. .1., 
 
 in l\iii',/ V. Itiirr'll, \'l \. k V.. 4(17. Neglect is an omissii.n to do tiial 
 
 w hicii it was ill his iiower, aiid \\ithin ids duty to do. wiiii.^iil ha\ingany 
 
 1>' 
 
 lawful e.xeiisi' for tile on 
 not a sullieieiit e.\(,'Usu 
 honest intentions will n, 
 
 I' 
 
 ii'iret fulness or cai'eh.'s.snes.s i.s cci 
 
 /'-/■ Colerid!. 
 
 ■'/. Mistake! of (liit\ 
 
 rt.iinly 
 (I 
 
 ,1 //('/ V. Sll jl< /•('/. ri;'.' 
 
 I \v.,i!. i:!i; 
 
 li.i.rvf 
 
 K->Tl(iN.- 
 
 it i.s no excuse for iion presenliiuiit of a note for payment that it w; 
 
 indorsed w lien ovei'iitie 
 
 />H 
 
 I), 
 
 li r. ('. (J. li 
 
 A hill 
 
 r.iuii on t.,eglioiii was not presentecl in die tine-, owiii 
 
 political .-^tate ot tiie country .at that t 
 
 line, wliicli iciu 
 
 lercl 
 
 u' to the 
 It iniiiossilile 
 
 present it : -li.dd, th.it it lieing afterwards presented for p.-iviie nt with 
 line diligence, .and n.'fiiscil for w.iiit of presentation at the time when it 
 uas due, the iioMer mii^lit rec.iver igaiiist the .antecedent parties . I'ati- 
 ' itci V. Toirtilrij. ■_' ."smith '_'•_'.■{. 
 
 .\ hill of exch iiige w.i-^ d'.'.iun and indorsed in l'',iiL,d,ind, and was accepted 
 liy tlie drawee in I'aiis, and w as {lay.iliie on the .tli ( )i'tohcr. IST'l. I'.efore 
 iiiit (l.ite th.; h'r.iiic.i-l'i ussian w,i!' hr.ike out. ,ind the tiovernmcnt of 
 France enlarged the time f.ir the piymeiit, and protesting of t urrent iiiils 
 of exchange from time to time, hy whicli the hill did not hecoine payahle 
 until the .jtli .Seiiteinher, hSTI. On rh.it day tlie hill was presented, and 
 p.iyment refused hy the aeceptor.s, .unl was then dul\' pr.itested ; Held. 
 
 tli.it the presentment was .siitlh iiiil to chaise the 
 'h;,;iiail.ii, L. II. IM O. 15. .VJ.'i. 
 
 e iii.lor.ser.- : 
 
 A' 
 
 W" 
 
 lere 
 
 A. 
 
 on the 'Jllili 
 
 if I) 
 
 eeemiii:!-, received .i in 
 
 ill 
 
 ■alile 
 
 l.ond. 
 
 .111.1 due there on tile '_'Sth, and kept it in his own liaiels until the l-Mttb, 
 '.vlicii he sent it hy post to his hankers at Liii.'.iln. who .iiilv forwariled it 
 
 1 till' hill was dishoiioii-.l : Held, that hy 
 
 lo London for presentiiiciit, an 
 ke.'ping it in his h inds until tl 
 V, IhrL- l(i East -JIS. 
 
 Dth. he was 
 
 .'111 
 
 Ity of hi 
 
 Ami ill 
 
ii)(> 
 
 'llli; I! ' I.I, S OF KXCllAMiK ACT. 
 
 Sec 46- A note <liic at ('. Wii.s scut tn a liaiiU tliiMf fur rolli itioii, aii'l a liaiik 
 
 ^ 1 ricik iiiJide .sijvcral iiutli'ctiial .ittiiniitN to lu't-sfiit, Imt failcil to tiuikc tin? 
 
 ni'ocs.sary itrusL'iitiiiL'iit of tin: iiotu, liy wiiicli tin; iii(loi'.s(.'|-.s wen; (liseliaryi'il. 
 'I'iu' hank liad issued a liotlec wliiuli the hohh'l' liad I'eeeived. tliat all 
 notes (hiivereil to thcin for eollectioii shoidd he wiiolly at tlie risk of tlie 
 persons leavint: tlieni. .iml that tiie hank wonid he lesjionsihle only t'ni 
 moneys actually rei'cived in payment of such imtes, hut not for any 
 omissions, iiiidiinalities or mistakes, in respe"t of siieli notes ; —Held, that 
 the ouiissii.ti to ]ireseMl the note amounted to ^moss ne;;ligeliee, and that 
 the h;jnk, notu itlistaiidiuL' the ahove notice, was liahle : Jlrmrin v. Com- 
 iiinrhil IhiiiL-. Id r. ('. {). W. l-J',1 : s.p., !t r. C. (.>. 1'., ()1. 
 
 A suhstaiitial ilistinction may he drawn hctwecu tin; entire omission to 
 <lfi an act indispcnsahle to the eollcctin^ of a note, and an omission in the 
 mode ot iloini; that act; hetween the iiiui/l.i u/i' i\iii'/i, and the utter 
 ahstainini; ficun doinj,' anything'. 'I'liercfiU'e ni)t\vithstandinu' the limitiuL; 
 worcis of the notiet', there was an undertaking to do any act indisjieiis.ihh' 
 to the collectifui rif the note : /'(/• |)raper, .1,. in /'/"/, 137. 
 
 Where the di'awee of a hill removes from his u-^ual place of I'esidenee to 
 another in the s.iine state or ki/iL'dom. the liohh'i- is ImiuikI. in older to 
 eliari,'e the indoi'scrs, to use rcasonahle dilii^ciK't! in tinding out whither 
 lu' has remoM'd, anil if he succeed, to jiresent the hill for payment. Ihit 
 if the (irawee oi- niakei- has ahseonded, that circumstance will disjK'Use 
 uith the iu<|uiiy : /.V /'/ \. Murii.^ci/. '_' W.itts i\: Serg. 401. 
 
 A cT'editor who tak< s from his dehtor's ;ii.';eut, the chc(pU' of such ayeut 
 is hound to ])resent it for |);!yment within .i rcasonahle time, and if he 
 fails to do so. and hy his delay the position of his dehtor is altercil for the 
 wiirse, the ilehtor is discli.-irLfcd, though lie was no party to the ehu([ue : 
 //n/,/,i,i.< V. i\'(i,r. L. It. •_> llx. 'JfJS. 
 
 '-' ll.l.lSl'ttA'riONS.^ 
 
 Where the maker of a note had aliscoiided, and was a!)scnt from 
 (' iiiada wlwn the note fell due; -Held, that the ahsene(; of the maker ami 
 the plaintitl's inahility to find him. was a sullieient exeu.se for non-present- 
 ment : Faririiril v. /'/kjiii/i-^dii. \'2 [' . ( '. (). I>. I!)4 ; .s. p. Ijhinan v. Joins, 
 1 Watts iV .Ser<,'t. I'iU. 
 
 WIkmc a Jiiint note was made |iayahle at a ]iarticular jilaee, and it ^^ as 
 not shewn that it w;is ptcscuteil there when due, hut on<; of the maker.s 
 afterw.-irds promised to pav it ; ■ I leld. sullieient evidence of [)resintmeiit ; 
 Miinniliiii V. Mr /a, lain, V . V. T. T. 'A & 1 N'ict, 
 
 A presentment of a note, payahle at a hankers at i>., where it is niailc 
 payalde, the maker heiiiL; .-ihseiit from (J. when the note hecamedue, is a 
 sullieient e\iilence of a jireseiitment v> the maker at (1. : Uitnlii v. Wvod- 
 rojli, 2 .Stark. Milt 
 
 A note was made pay.ihle .it the (). hank at 1'., hut hefore maturity 
 the (). liank eeaseil to do husiness at 1'. ; -Held, that deui.ind of payment 
 was dispensed with : Mr Ituhliu v, Tnrivniiy, -1 Man. 11. ■\'2it ; s. |). I'oln rls 
 V. Autsoii, \ .Ala. '.V,'.\. 
 
 M the pl.ice at w liich the money due on simple coiitr.iet is payahle, 
 ceases to exist, it is not necessary that demand for |)ayment he iiiaih to 
 enahle the creditor to maintain an action : Ilii'l, .') .Man. I!. 1 14. 
 
 ■■' Not only i.s the hclicf that the hill will lie dislionored, no excuse in 
 law for the oniissi(ui to ,i,d\c notice ; hut ])ri(U' to this Act actual knowledi,'e. 
 that a hill has heeii dishonored. ac(|uired hy other means than a notice ol 
 
TiiK I'.ri.i.s OK i:.\( iiANii: .\( t. H»/ 
 
 ilislionor, will not (.xciisc the Imldii- ^iN iny iliic notice ot liislidiKir nf tiii' oeC- 43. 
 l>ill, unless till' |mrti('s atrcctccl ili> sunie acts, or niake some ailnii>sioiis, 
 
 ell operate as a waiver of tlie notice. Sue 
 
 itice inav lie \ellial ol' 
 
 written : see s. lit. 
 
 Im.IsI'I: VlKiN- 
 
 'lie fact that tint ilr 
 
 iwer or I 
 
 nilor.-er hail lieen iiit'ornieil that tin 
 
 has been dishonored, hut nii.;;ht he taken up on another d.iy. doe.s not 
 
 lis))eiis(! with the necessity of uiv inu' notice of ilislioiior. 
 Ill \\'(Mliiesda\' of a hill ilishoimrcd the pl<'\ ions Satiirda 
 
 ice Lliven 
 
 A not 
 
 W IS too late 
 
 M 
 
 II rs V. /Iriiiril 
 
 11 M. .t \V. -J7: 
 
 I 
 
 riscntiiieiit to the accejitor is not exeiis 
 
 d ,-ls het 
 
 w cell t hi' dr.iw cr s 
 
 indorsee and the indorsee of .such indor.-^ec. lis flic imrc \\iv\ tliat the 
 drawt.'r had not. at the time when the prcscntiiieiit should iia\clic<'ii 
 made, any etlects in the hands of the acceptor; sVc// v. Jnin.^. I \\. \ li. 
 
 The ellect where the drawee is a liilitioua 
 
 is stated 
 
 rcasonalile elleet must he L^iveii in favoi' of Iiniin jlilr holders to the act of 
 acceptanee ; and where it app ■.ir,-. that altliouuh there was ,i named 
 person, he was so compK^ti'ly tictitious or non-e.\istin^', that tiie acceptor 
 could not lia\(' intended to restrict payment to .micIi person or his order, 
 the acceptor, who must lie taken to iia\'c iiitcniled tli.it his aeccptan-je 
 should li.ive some comniereiiil \aliclity, is estop|ie.l from s.ayili;,' tli.it the 
 Kill was not a hill payahh; to lieaier : I'ruj/ifnhi v. lUink o/' LihiIikhI . "J."! 
 O. \\. 1). -im. See fui'thc'- the notes to ss. .") and 7. 
 
 Where as lietween tin' diMW''r ;iiid drawers the drawees wire not 
 iMiund to aecojit, and the ilr.iwcr li.id no reason to helieve the hdl woiiM 
 lie i)ai(l, delay in ]ireseiitiiig the hill, will not release the drawer : A'e 
 I'lKijie. ',YM'\\. |). (il"2. I'reseiitnient of the hill for payment is dispensed 
 with where the drawee is " ,i tictitious pel -on ;" hut there is uotliiiiLf in 
 this section dispensing with presentment, in the I'.ase of ;i person or corpo- 
 ration "having no capacity or ]iower to incur liahility on a hill." See 
 
 s -W 
 
 Ii.i.isri; \rio\, 
 
 P, and M. e.\ehanged eliei|Ues for the accouunoil.itioii of I',, and agreeil 
 fiiat they were not to he ju'esented liefore .a lixcd date. llefore th.it< dat<' 
 M.'s hankers suspended p.iynient. an 1 .M.'s dicipie was ne\-er presented, 
 iial M., on the day of their suspension. hroiiLiht an .action tor tlie amount 
 11 their h.aiids ; Held, th.it altlioui;h the suspension \\oiiM not excuse 
 iioii-|)rcseiitnieiit and want of notice of dislioiior, t he hrim/ini.' of the action 
 'U.iinst the li.ankeis opci'ated as a <-onnteiiiiaiid of ](ayuient, and pi-est;iita 
 
 ssary : /.'/'"■//■//v. .1/. ■('„/„, li;.\pp. 11. -Jit."). 
 
 Moll an 
 
 I not 
 
 ice Were uniiccc 
 
 ll.l,lsTl;.\rioN- 
 
 W'lien ;i note ])ayahle in Miuitreal. fell due, the payee and indorser 
 wrote to the liolilcr wiiving jirotest of note a.nd .agreeiie,' lo Imld liim- 
 -•■If liaiilc as if il lia<l licen pivsenteil for p.ivmciit ; ~ lleld, that the w.iiver 
 tlioui.di i;ood aL'ainst the iiid<irser. was not evidence against the maker : 
 Mi-Li/kiii V. McLi/Ikii, 19 V. C. C. I'. Hilt. 
 
i(;s 
 
 Till': isii.i.s OK KxcM.wci; Acr, 
 
 Sec. 4r). WliiTf a iiiitc uiiM mule |i;iy;il>li' at a pirHriilar plai'c, alllmu'^li tliorc 
 
 — — was ri'i iiroiil' lit' its liciiii,' iil'cH'iiIrl tlidc fur |i ly mi'iil , luit pruof i>f a 
 
 siilis('i|ii('tit inoiiiisf ; - Held, Miitlicii'lit ; ,)/(//'< c v. McFiiilnii'/l'iy. V.I'. 
 I I .-!. 
 
 Wlicrc lli<: iiiaki'i- of a note, an almfuiKliiij^ ilrhtor. mi tin- ilay tlio iioti' 
 hccMiiM! iliu!, wrote to till' liolilci' statiiii,' Ills iiialiility to pay, ami i'i'i|m'st 
 in;,' fiirllur time ; IfcM, lliat iirc-icntini'nt was nnnrrt'ssai'v, altlioui,'li tlif 
 note was piyalilu at a partiiMilar place . Mc Dhiik II v. /.mrri/, .'i II. ( '. O. 
 S, ;)(»•_'. 
 
 W'liiMi; tli''ri' was nr) presentment of a note? for paymi'iit, ami no notiee 
 of ilisliniior. a Miilis'ipi'Mit promise to jiiVi i^ it waiver: .Mrdir/hi/ v. 
 I'bli.-. :!(l II. ('. (.). 11. .")7. 
 
 Ill 
 
 ness i\v ot lii'r reasona 
 
 li|e e inse, not attl'iliutlMo to the mi>:conillirt ol 
 
 tlie liiiMir, «ill excuse. jliit tile lloMei' must pri'si'nt, tlioii_'li the draw* I 
 mcy hi\c ilesireil the ilriw.'c n^itto ace.'pt : />//'' -■ mi /!i//y. I II. 
 
 Set- also i'ldcihuii v. FiiHi i\ "J Stra. I'JKi: Ihiji'hi v. /),ih; ^n' , I'J Ka-t 
 'J7'); ami /.V,'/' v. .l/r/v v. 10 IJ. C. C. !'. '_'7!>. 
 
 i)i-hnii,,rii.v 4'J. .\ liill is (lislioiii)i'c(l liv iioii-paviiK'Mt {(i] Avlii'ii it i- 
 
 tuiM piiy • ' 
 
 ""•"I ilul\- prcsfiitiMl for pMyniciit and pa\-iiu!iit. is reruscd oi' 
 
 Imp. .\.t.s. JT • 1 , 
 
 iii.i. \rt.s:iL'. oanimt: Ix; (ilituiiu'il, or (h) v.licn picst'iitiiaMit is e.xcusu'l 
 and \]\i- Itill is ovrrdiic and unpaid : 
 
 lU'cmirsc 111 
 siuli I'a-'' 
 
 '2. SMlijcct to tlic pi'ovi^ions of tlii- .Act, wlim a liill i- 
 dislionorcd 1)\' noii-jiaynicnl. an inmii'diatc I'iolit, of ri'coni'.sr 
 a'j,"ainst tlic drawer, accoptuv and indorscr.s accrues to tlie 
 holdrr. I 
 
 ' Tile provisions aliove referreil to, are s.s. (il In ti7 as toaectpt.ancc and 
 payment fur lioiior. lint tlie holdei''!- riijlit of aetion aeernes at the time 
 notice of dishonor oiiL;ht to lie reeeived. ainl not from the time when it is 
 sent; Cnstri'/ih \\ li< riKtho, ('»(,). H. I'.I.S. .See also .S'/|/;/r /•>■ v. Lnris, \ ('. 
 M, & R. 'Xii). Ft is not too iMily to issue .i writ on the d.i\ mi whieh a 
 liill is due, wheii' the statute provide.-^ that protests for noii-]iaynient of 
 hills or notes in ly lie mule , -it anytime after three o'elnek in the after- 
 noon: .■^'iiif/iiir V. /,'nl,i<.,i. K; r. ('. (,>. r.. -Jll. (See s. ,".1. suli-s. 6 ('•)). 
 As to wli it is due )iri>seiitiiient for p.iynient. see s. l.'i. and tlu^ notes 
 thereto. .And as to when presentment is e\en> 
 notes thereto. 
 
 sell, see 
 
 Hi. and th 
 
 Niitirc of 
 di.shoiior ami 
 
 4S. Suliji^ct to the jirovisions of tins Act, when a l»ill 
 ciT-<;tof noil- ]^.^^ 1 iceii d ishoiioi'ed liv non-ar'ceptance or liv non-payiiuMit, 
 Il!!r ^^.^^.^,'■^ notice of dislionor must lie ni\-en to tlie drawer and eaelt 
 indorser, and any di-awor or indorser to wlioni such notice 
 is not u'iven is di.scharefod ; • I'i'ovide(l tliat — 
 
 lii(i..\Lt,!-.'.i: 
 
■nil I'.ii.i.s (ir i..\< II \N(;i: .\tr. 
 
 I(i!» 
 
 '") 
 
 W 
 
 II'IC 
 
 !i liill is (li-.li(iiiniT.| liy iu)ii-!icoo|)tn.iu!(', Mini Sec 48. 
 nut i('(.' of (li>liuiii)r i> lint 'ji\ ell, I 111' liulit-' (tf ;t linMcr iti fliic liiu-iii- -fn 
 
 CnIJI'SC Slll)S('i|llcllt f,U till' lillll«<sl()ll shall imt ir |iri'jllill('C<| ilu urn 
 
 liol.l. r III 
 
 'V th 
 
 I' iinii-.'>i(iii 
 
 (In W 
 
 It'll' a iiili IS ilisliitiiorc 
 
 i>\ iiDii-ai'ci'ptaiici' ami 
 
 lliitiri' (III 
 
 ilitilioiKir. 
 
 lui' iKitii t ilislidiiiii' is ^ivcii. it sjiall imt lie iifci'ssary to fi'i'ji',",',,',', 
 
 ;i\i' Iiotict' of a siili-.i'(|iU'iit. disiioiKii' iiy liitii-|ia\iiiriif , iltl- 
 I'ss tile liill shall in ihc iiicaiil iiiH' lia\i' I ii aci'rptiil."' 
 
 i< lit 
 
 As t. 
 
 I inc|iirscr>. the 
 
 iilisiili ralicius ,i|]|ilic,i,lilr tci a ijfaw i i w Im ilfaws 
 
 ■AilliMiit I'liiiils, (.}■ lia.s Mil iij;lit III illaw, iln Imt in'crssai ils' m' m'lliii irily 
 
 I |i|ily t'l tliciii : t'lr tlh^ iiiildiscrs arc ciititlftl to strict iiutiii'. An iiiclm'.st'r 
 
 • taiids ill a Ml y ilill'iTciit ri'latinii to tin.' liill t'roiii tin; drawiT ; I'ur lii; is 
 
 niisiiji ml a"; ill I'l^' iiatiiM' ot a siirctv '»' Lruaraiitnr I'dr ils iiaviiu'iit 
 
 ii|i'ili clilf [in si'iitiiii'iit, ami is lint iilcMiiiicil to Uiiow anything alimi 
 
 t th 
 
 ' iiu'a)-'<'iiH!iits lii.tufcii tile ilrawir and ilrauci. Ilis cMi^'aL'riiiriit is tlicrc 
 iiifi' trcatctl as stri'-tly mllatrral ainl (.■iiiiilitiijii,il. ami iliir nut irr is uiic 
 
 (lit 
 
 miitioii uiKi 
 
 Ml wliicii iiis lialiilitv atta 
 tl 
 
 I'lii's : .V/../V/ /)/( 
 
 /;;// 
 
 ill. Wli 
 
 en 
 
 ic IkiIiK'I'. on tlif (Iclauit ot tile a('fi'|itur. incaiis to sue |irioi' |iartu's to 
 
 I, 
 
 lliilst nivc tlid 
 
 11 (Jiic iK/ticc I'l (Ii^Ik r. iinl( 
 
 tlni'c an; (--ir- 
 
 iiiiistaiu'ij.s til c.Niaiso it . /)'<//■//;/( \\ FU'.iji rail. I,, l! I (,». 1'.. (il'J. 'I'lic 
 idvisiiiiis (iT the Act Imic ictfiicil to. arc «. oil, .is In excuses tor noii- 
 
 itirc, ami delay in giving: m 
 
 iticc of dislii 
 
 Ii.r.rsTUAriuNs. 
 
 Wlicio A. drew a iiill on one ( '. in I'liuliiil. who IiikI im etreets, and 
 
 a( niniodatioii, 
 
 lid not accc|it, wiiii-h hill \vi 
 
 indoiscd liv Ii. tor A. 
 
 lid the liill WHH i>rotestc(l fur iioii-aece|itaiiee iind noli payiiient, and 
 (iticis of noil Hci'cptaiK'c and non-|iayiiuiit were duly v'ivcn to tin/ drawer ; 
 lilt of iion-]i;iymcnt only to the iiidorser W ;- IfeM. that II. was dis- 
 liai'j,'ed liy the want of miticc ot noii-ai |itaiicc, and that the tacts of 
 
 there havini' lieeii no cllci 
 
 ts in the hands of tlit; druwce, ,ind of ii. havintr 
 
 (1 
 
 or accoiiiiiioilaiioii, made no ( 
 
 ditr.r, 
 
 /.'.(/,/.• V. ( 
 
 v. v.v. \\ :U4. 
 
 
 When the intention of all i)artie» to .an accoininodation hill wa.s that it 
 lioiild liij niut tiy .111 indorser, the |irevioii^ indoisers cannot he siicil unless 
 they have had notice of disiiniKir : 7 
 
 II nil ;' V. >'i iii'<iiii. 
 
 ■1 (.1. Ii. 1'. :!/ 
 
 .An oinis.sion to j;'^'' notice of the non-acceptance of a hill of exclianj^e, 
 
 it cured Ity notice of non-accc]itai 
 
 It : Jo. 
 
 ir/Av 
 
 ■V. LcLT. -JS. 
 
 ell with notice of non pay- 
 
 i'lie want of notice of di-'honor to the iiidoiser of an accoinnioilitioii 
 ii iti . is no defence to an action ai,'anist the accoininodation ni.ikcr of such 
 icitc : dntiii V. \Viii<liii,ii II, -Jl V. ('. ('. I'. -I'u. 
 
 In an .iction on .i prninissory note, jiayalile at a particular |ilaco. it is 
 iM't necessary toslicw that theit; were not funds at the hank iiaincd, whcrc- 
 ^\ ith to retire the liill ; all that is necesis iry in such a case, as aj,'a,iiKst an 
 indorser, is to shew preseiitnieiit. non-|iavniciit, and notice uf tlishonor : 
 MiDdhhIiI v. .V.'ArihKr. S App. K. .Va 
 
IMAGE EVALUATION 
 TEST TARGET (MT-3) 
 
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 <, %' 
 
 § 
 
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 ^ 
 
 'A 
 
 
 4 
 
 1.0 
 
 I.I 
 
 1.25 
 
 IIIM 
 illlU 
 
 m 
 
 ,40 
 
 IM 
 
 2,0 
 
 III™ 
 1-4 ill 1.6 
 
 y] 
 
 <^ 
 
 /a 
 
 'e). 
 
 m 
 
 ■y9& 
 
 
 
 ^;. 
 
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 /li 
 
 Photographic 
 
 Sciences 
 Corporation 
 
 23 WEST MAIN STREET 
 
 WEBSTER, N.Y, 14S80 
 
 (716) 872-4503 
 

 
 

 
 
 170 
 
 Tin; lilLI.S OF KXCIIANGK ACT. 
 
 SeC- 48. Wlicii tilt' ilrawcr of ;i l>ill ivccivc.H nuticc liofore it bccomos (Lie. tluat 
 " — — ' it wuH nc('i(lciit.illy <lt;Htr<iy<'il. and is cillrd npnii to j.'ivo iiiidthcr in its 
 
 .sto.'nl, hr is iifVcrtliclt'ss cMtitlcil to notice- cif liislionor, tiiough tlu' drawer 
 
 is insolvent : Tli(irknn/ v. Hhxhtt, ,'i C'lni}). Hit. 
 
 - The iij,'litH of a liold<'r in dnc oiiur.sc, snl)HPijncnt to tiie omission to give 
 notice of dislionor for non-jucciitance of a bill, arc nf>t cU'arly dctincd ; except 
 in so far as such rights are affected as indicated in the eases to the jirior 
 note I. If a person takes a liill licfore maturity. Imt \\ itii notice that the 
 acceptance has liecn refn.sed. he takes it on tiiesame footing as an overdue 
 hill, and witli the title of his indorser ; ('roMhy v. Ham, 1.'] |-,ast 49S. Hut 
 a holder who takes it withont sncli notice, ac(|nires it free from all e(|uities 
 of which lie has had no notice: '.'(Knhinni v. Ihivn ij, ti N. k M. .'^T-. Where 
 ii payee presented ;i liill tV .cc "itance, which was refused. Imt he iicg 
 ItM'ttMl to give notice t<' the oukiver, hy wliich he iliseliarged the drawer as 
 JK'tween tlic drawer acd lMtr-''1f. I!.- tlien indorse.! it withont notice of 
 said dishonor to .i Imid " f. ■■ va'. ; ii I it wa i held tha'' the discharge of 
 the tlrawer exti'n .(.i only i.> a' hetween the )iarty guilty of the 
 
 neglect, and that the sa«U! ik/(v.iv' v.as not availalilc a^'ainst the new 
 holder. ,i.-i it w.ts against his indorsv.' : O'Kie/t v. I>iiiiti. (i 'i'aunt. .30") : ti 
 M. & S. •JK-J. 
 
 " As illnstrate<l hy the cases to note 1 . the omission to gixe notii'c oi 
 dishonor, on the refusal of the drawet; to acct'pt. operates as a discharge 
 of the indorsers. and is tot retrieved Ity a notice of dislionor for non- 
 payment. IJut this clause makes the notice of dishonor for nona(.'i'e[)tanec 
 sntlicicnt for the suhscipient dishonor hy non-payment, nidess tlu^ drawic 
 afterwanls accepts the hill, ,ind tiicn. as acceptor, dishonors it again hy 
 non-payment. 
 
 Kiili's a.-t to 
 notice of dm- 
 hoiior. 
 Iniiv A<'t,H.41) 
 Iiiil. Alt. 
 «*. !•:; A; mi. 
 
 Hy Imldir or 
 intloriur. 
 
 Notii'f bv 
 
 Notice 
 eniir>>8 for 
 
 bciicntor 
 
 oilkers. 
 
 4«K Notice of dislionor. in or<l<'r to be vali<l nnd cfToctiinl, 
 iiui.st lie Lfivi'ii in iU'Cordancc witli the lollowino- rides:- — 
 
 (ii) The notice must ]»o "[iven by or on Iteli.ilt of tlie 
 holder, or hy or on hehalf of an indoiser wlio, at the time 
 of <,'ivini,f it. is him.self Hahle on tlie liill ; ' 
 
 (/) . Notiee of dislionor may l>e ^Mveii hy an a'ient either 
 in his own name, or in the name of any piirty entitled to 
 efivt! liotice, whether that party is his j)rinei|tal or not ; 
 
 (r) Wlieie the notice is oiven hy or on heiialf of the 
 holder, it enincs for tiie heiielit of all suhscfuiont holders 
 and all prior indor.sei-s. wjiohave a riiijht of recourse a LjaiM.st 
 tho paity to whom it is j/iven ; 
 
TUK HILLS OF EXCHANGE ACT 
 
 171 
 
 {(I) Where notice is given by or on belialf of an imiorsor Sec 49 
 entitled to g^ive notice as hereinbefore proviileil, it enures Km-ct of 
 tor the benefit of the holder and all indorsers sulis(M|uent indorHor. 
 to the party to whom notice is given;- 
 
 (e) The notice may be giver in writing or by personal ".r'"h»i"'^ 
 eonnnunication, and may be given in any terms vvhieli 'un'i',.i,.„t. 
 siiHiciently identify the bill and intimate that the bill has 
 
 l)een dishonored by non-acceptance or non-i)ayinent ; •'* 
 
 ( f) The return of a dishonored bill to the diawer or an li.tumof 
 indorser is, m ])unit of form, deemed a sidlici.-nt notice ot I'lii. 
 dishonor ; 
 
 (//) A written notice need not be signed. an<l an in- Mi-^tak.' in 
 sulHcient written notice may lie sup])leniented and vaTKlated 
 t>y verbal communication ; a inis(le,serii)ti()n of the bill 
 shall iiot vitiate tlit> notice, unless the party to whom the 
 notice is givt'u is in tact misled theii liy ;■* 
 
 (A) Where notice of dishonor is i'e(inii'e<l to be given to n.iHc' ly 
 any person, it may lie given either to the paity liimseli, or «i,'tni. 
 to his agent in that behalf ;■"' 
 
 ('} Where the drawei' or iiidor>er is dead, and the ])artv wii.'n.iraw. 
 
 _ iTiir iiiilorscr 
 
 giving notice knows it. the notice must lie ^iven to a i" <'<'»'' 
 personal representative, if such there is and, with the 
 e.\ercise of reasonable diligence, he can be found : '• 
 
 (_/) Where there are two or more drawers or iii(i(;rsers \\■^^,■r,^ 
 who are not partners, notice must be ^iven to each "I" them. iThiwims, &<•. 
 unless one of them has authority to receive such jiolice fur 
 tlu' othei's ; ~ 
 
 (/.) Tilt! notice may be ^iven as soon as the bill is dis- .v>.iH.ni.i 
 
 1 "^1 • later lliun 
 
 liouoied, anil must Ite given not later than tiie next »>-m 'i.i.v 
 lullowing juritiical oi- business day:'^ 
 
 2. Whei'(^ a bill, when dishonoi-ed, is in the hanil> of an ifiiMionoreii 
 agent, lie may either iiimselr give notice to the parties >'iu»i-. .moni 
 
 111 1 ' I •! 1 1 • I • • • 1 '""-^ niitifj- 
 
 Jial»le on the IjiII, or lie may give notice to Ins [uiiicipal ; 
 

 m 
 
 
 172 
 
 TIIK lUI.I.S or KXrilANGK AfT. 
 
 Sec. 49. 
 
 Ni lire to 
 Blltl-ii'ill'Ill 
 
 pi nics. 
 
 WIml shall 
 hi! siillii'iiiit 
 Ilcilicr (if 
 |iri'l.'-l or 
 ili»hniiiir. 
 
 .Misr,irri:iL'(' 
 liv pii^t I. (til-., 
 nm lo iilli'.'t 
 notiir. 
 
 if lie i^lvcs iiotioo to liis piiii<'i|»;il, lie must do s(» witliin 
 tlu' saiiK' tiiiio as if lie vv'Tc tin- liolilt-r, and the priiiciital, 
 u[)<»ii receipt of such notice, lias liiiiiself tlie s.ime time for 
 <^i\ iiiLf notice as if the agent had heeii ;ui iiulependent 
 hol<l(!i' : 
 
 .'». When^ a party to a hill receives due notice of dishonor, 
 he has, alter the receipt of .such iiotii-e, tiie same period of 
 time for .^(ivinij; notii'e to antecedent parties that the holder 
 lias alter the dishonor : ^ 
 
 4. Notice of tlu' piotot or dishonor of any hill payahle 
 in ( 'anada >hall, iiotw ithstan<liii;^f anytliinLC '" this section 
 contaiiie(l, he sullicieiitly jLiiven if it is addi-es^e<l in due time 
 to any l>arty to such hill entitle<l to such notice, at his 
 custt)mary a<ldress or place of residence oi- at the place at 
 which such hill is dated, unless any such party has. undei' 
 his siifuatui'e. (lesiM-nated another place; and in such latter 
 case such notice shall he sntliciently given if adilri'ssed to 
 him in due time at such other place ; ami such notice so 
 addressed shall he siiHicient, although the place of residence 
 of such party is other than eitherof such ahove-meiitioned 
 places; aiul such notice .shall he deemed to have hecn duly 
 sei've<l and i^iven for all ])urposos if it is deposited \n any 
 post otliee, with the po>tagi' paid thereon, at any time 
 tluriiii; the day on which such i)rote.^t or presentment has 
 heeii made, or on the next followin:,^ juridical or husiness 
 day ; such notice shall not he invalitl hy reason of tlie fact 
 that the piuty to whom it is addressed is dead : '" 
 
 .'). Where a notice of dishonor is duly a<ldresse<l and 
 posted, as ahove provided, the .sender is deemed to have 
 jjiven (hio notice of ilishonor, notwithstanding any mis- 
 carriage by tlie post otliee. " 
 
 ' Tlu' iiUject of iiotiof of iln' ilishonor is to apprise all ]i:irtie9 lial>lo on 
 till' liill or note, tluit tlu' .■i.,ct'[it()i- of tin' hill, or tin; in.ikerof tin' noti', lius 
 violiitfil his contract to pay as In,- hail aj,'ri;oii, ami that the hill or note is 
 thcrchy (lishoiiorcil ; and also to notify thcni that their liahility to pay the 
 hill or note, acconling to their contract with the holder, has accriieil. The 
 
TIIK i;iI,I.S OF i:XfH\N(JE ACT. 
 
 17:? 
 
 s liildo on 
 
 Act provides tlmt the nuticf may liu in writing, or l>y |Mrsi)n:il. or viilial SeC 49- 
 voininunio.-itinn ; 8ul)s. (< ) ;ui<l (2). lUit tlic nmic usual iind tt.ifcNt courHe i« to ' 
 
 "ivc tlir notici' in writiiii', so as to make suii' of its liciii" distinct, iind sulli- 
 ciiiit in all pntiiulais ; and also that it may shew . if thr original or a cojiy he 
 pi'oduccd, w hat was the actual notiticatioii j.'ivcn to the parties. As jminled 
 out in note ,'{ to s. »*>, knowleilj.'!' of the dishonor <>( a hill, aecjuired throui^h 
 other sources than ;. formal notiee, has heen held insullicient. The term 
 ' ■ notice of dislionor " must therefore he h>ld to mean a fnrnial notiliiatinu 
 that the liill has heen liishunored hy non aieeptanee or lion payment. 
 
 - Il.I.ISTHATIo.NS. 
 
 Wliere a n-ite payahle at a hank is sent there for eollec-tion, the protest 
 and notiee may jiroinil\ on tlnir hehalf : U'il-'oii v. I'l'nuili , 14 U. < '. (). P>. 
 
 Tlie holder of a hill may tiike advant.ige of a notice of ilisln'imr f;iven hy 
 any party w hi> is iiinisi If liahle to he sued on a hill, and woidd on | aying 
 il lie entitled to reindiursemiiit, ]>ro\idid suih notice is ;;ivtn in sutiicient 
 time: llani.^on v. J,'usim., 15 M. & \\ . 'S.U : lOdur. Ul'. 
 
 A holder of a eiu ipie is not IhiuikI tn i;ivi' notii e of its dishonor to the 
 drawer, lor thepuipuse nt ehargin^: tiic jierson ironi whom he received it ; 
 he does enciugh if lie presents it with line diligeni.e to the li^iukers on 
 w honi It, is diawii, and givis due notie'e nf dishonor to those whom lie 
 .seeks to make liahle : Jin/./nn/ v. Liiliji , '_' (amp. W,V,. 
 
 Sending a verhal notice to a nierehaiit s tcninling house is siitlieieiit ; and 
 if no piiMHi is there in ordinary husincss lioms, it is not iicic.^sary to 
 leave or send a written notice : (lohlsuidli v. lilninl. Ila\. on Hills •J'24. 
 
 1 he holder's ilerk I'alled upon the drawet , and veihally iiilnrnied him 
 that the ijill hail hei n pre>eiilnl hut the aeeepti'i' " ciiiiM not piy it,"' tu 
 which the drawer replied h • wmild see the holder ahniit it ; it was hit ti> 
 the jury to infer due notice of dishonor: Jtitm/ji v. Jiivlidid-^on, II C. 11. 
 Hill. 
 
 " Ii.i.isti;ations. 
 
 The following is an insufHeicnt notice ;-" Tins is to inform you that 
 the hill I took o! ydll, tlo, is. 'jil is iM.t tciok up, and -Is. (id. expense, and 
 
 the money 1 mu.>t pay iinniedi.itely :" Mi.a.si injtr v. Soutln y, 1 M. it (ir. 7h. 
 
 A notice of dishonor should inform the party either hy express terms or 
 hy necessiiiy implic.itio^i, that the hill has heen dishonored, and that tin' 
 h(dder loiiks to him for pauneiit : .noA//7. v. I'altiiif. 1 II1114. N. ( '. Itll. 
 See also /'((-// v. ./-« /, T, [.'. .1. \\\. ;{M. 
 
 The holiler of a hill on the day after it liee.iinc^ d\\t\ called at the otlice of 
 the drawer, ami timling him engaged, wrule ami sent him the follow ing 
 notice ; " W. t< acceptance to J., .t'o(Mi, chic I'Jth .laiimiry, is unpaid ; pay- 
 ment to lloherts tV Co. i.t riiiecstecl hcfcne four o'clock;" — Held, a 
 Bullicient notice: J'aul v. Jvi(, 4 'A. k. \. ;j,")."). 
 
 * ll.l.l siiiA 1 loss. 
 
 What is a sutiicient notice' of dishonor, is a ((iiestion of law ; whether 
 given is a <|nestion of fact: f-'i iris v. •Sd.i/nn. 4 .N. d, (I Scutli.) •_' ; s. p., 
 Itaiik itf U/i/i' r ('(iiiiKia v. Sniif/i, 4 V. V. (). I>. 4S;{. 
 
 A notice of dishonor incorrectly desciilied the iiniount as t'i?M, instead of 
 V2,'i ;- Held, not a fatal uhjection : 'Jhoiii/'fOii v. ioltKitll, 11 L". C. tj. U. 
 1«5. 
 
174 
 
 TIIK 1!IF,LS Ol' i;X(;ilANGl'; ACT. 
 
 Sec 49- '^ notice of dislioiior lioadccl with tJic iiaiiif of the bunk, M'hich wa.^ 
 
 . ' lioldtT ol' U'lte, timugii not niynetl, is good : Ma.nnU v. liriiiii, lU L. 'I'. 
 
 ^. S. 'JOl. 
 
 A notio(! of di.slionor thonj,'h dated on Siind!vy, — the note fallinj^ diu> on 
 thi^ Saturday, and the notice lieing tielivered on the .Monday, —is not in- 
 valid : ///////'/ V. Dixiiu, T) U. ( '. (,t. IJ, 380. 
 
 Where tlie notice lieinj,' dated '2(itli July, stated tlie note to have been 
 on that day |)ie.--eiitcil and jirotcnted, whel'eis it was on the '_'.") th : -Htdd, 
 not snfiicicnt to ndslead : i'dssii/if v. Muii'iiiihl, 'Hi U. t". t'. I'. .'(H.S ; s. p., 
 Li,ir\. On; II, \2 (J. V. C. I'. Kll. 
 
 A notice addressed to thi' lii'ui stating the dishrnioi- of a note indorsed 
 by Iheni, wiicn the note was imhuscd liy one of sueii hiin in his own 
 name onl}', is not siillicient : /lank <■/ Monlniil v. (Irtirir, 'MJ. V. i.). )i. '21. 
 
 A notice of dishonor is not vitiated by a misdescription of the bill 
 wiiicii eouhl not mislead the party receivint,' the notice, as to the bill 
 inten.led : Jiroiiia<ii v. Vauuhnii, !K^>. li. tiUS ; lO.lur. ItlL'. 
 
 Where the nf)tice w.ongly stated the name of Xhv acceptor, but the 
 notice was c(»rrect in (tther rcs|)eets ; -Held, that it was a (piestion for 
 the jury : llai'iiman v. ('/I'/if, 1 1*. & F. ().")•_'. 
 
 It is sutlicicnt if the name and address of the indorscr are on the out 
 side of the lctt«'r of notice, allhoiiL:li not aiidressed to him on the face ol 
 the letter inclosed : Jhiwijn- v. JJiriiiii, (J La. An. 100. 
 
 '■ ll,M"STliATU>NS. 
 
 Where a I'ill has been lost or destroyed, the drawer of the bdl is enti- 
 th^l to notice of dishonor, although he has refused to give a ni^w b ' 
 according to the statute, and the drawee is bankrupt : 'J'hackrui/ v. /{/ad 
 3 C-amj). lt;4. 
 
 If a man makes anotluir his agent for the purpose of indorsing the bill, he 
 also makes him his agent tor the purpose of receiving notice of dishoimr, 
 and that a notice given to such agent will be good: Firth v. Thrasli, s 
 W. k ( '. .•{ST. 
 
 L(>aving a notice of dishonor with an out-door servant cutting fire-wood, 
 not known or proved t.() have been an inmate in the fandly, is insutlici 
 ent : Coiiiiucniii/ liiink v. Willi r, .") I,'. C. Q. H. 54.S. 
 
 The defendant had a bouse in M., where bis family lived, and where 
 he resided in the wmter, but dui'ing the rest of the year he carried on 
 busMiess at I., and resided at the house of }{. there, where his notes hail 
 ]>reviously been [)reMentcd for ])a,ynient, and notices of dishonor had been 
 icfl for him, and which notes be had ]),ud. In .lanuary, a clerk in the 
 bank, who liad tbdivcred the former notices at the same i)lace, left a notice 
 of dishom)r at H.'s house in I., addressed to the defendant, which notice 
 he never received, having left 1. al)out three weeks J)L'fore ; — Held, that 
 when reasonable ililigence had been used to discover the place to which 
 notice should be si nt, and it h is been sent accordingly, it is sullicient ; 
 but if the holiler is uual)bt to discover the iudorser's residence, and that 
 no notice of dishonor is given, the excuse shoulil be pleaded : I'atti^rxuii 
 v. Taidiy, 4 All. .N. 13. .VJ'.t. 
 
 " lLI,r.'>TRAT10NS. 
 
 A notice of dishonor n<ldressed merely " to the executrix or exemitor of 
 the late Mr. .lones, Toronto," ia bad : Bank of Britixh North America v. 
 JoiH'S, 8 U. C. il B. 8(5. 
 
Tlii: lilLLS OF KXCirVNOK ACT. 
 
 I7r, 
 
 vliieh was 
 , 10 L. 'I'. 
 
 nj» (Inci (111 
 -is not iii- 
 
 liave hitvu 
 I : -Hold, 
 
 W.i ; s. p. , 
 
 f iixlorsoil 
 ill Ilia own 
 . Q. 14. -27. 
 
 of the l.ill 
 ,0 the 1)111 
 
 or, liut till' 
 uestion for 
 
 u the out 
 the face oi 
 
 bill ia enti- 
 11 new li ' 
 V. n/'i'l , 
 
 the l.ill. hv 
 ilislioiior. 
 'J 'In- lis/,, S 
 
 ire-wooil, 
 insufHci 
 
 mil whtMi' 
 
 irrieil on 
 
 notes hail 
 
 h:i(l hufii 
 
 ri k in tlu' 
 
 It a notice 
 
 icli notice 
 
 lel.l, that 
 
 to wliich 
 
 siitlicient ; 
 
 and that 
 
 I'aftirxuii 
 
 executor ot 
 4 mf »■»('« V. 
 
 Where iioticca had been addressed to the " admiiiistrator.s ' of ;ui estate SeS- 49- 
 
 at M., thoiigli tile te.stator had resided at ('., to which other iiotic«'s ha<l ^ . — ' 
 
 Jieen sent, .some of which tin- executor.^ had received soini' weeks alter ; — 
 Held, tiiat the rcasoii.ihli.' infereni'i; w.is that the notices had been received 
 in due course: McKi'nui v. Xortliroj), "Jl! I'. ('. C. 1*. .SS.S. 
 
 A notici! directed to the list place of residenci; of an intestate, though 
 given after his death, is siitliLienl, there Im^iii;,' no ailininistrator ; ami no 
 Second notice need be given to the administrator after his .ippointiiient : 
 OiUrnpie V. Mar^h, I V. ( '. ('. \\ 4.')3. See also lirun'ii v. Marsk, 1 C. V. 
 <.". 1*. 4H8, and .\fai'<aifnn<itt.i /tank v. Olirer, (14 Mass. 't'tl. 
 
 'I'he indorser, a m rried woman, having separ.ite estate, died intestate 
 during the currency of a note which she h.id iinlorsed as surety for I er 
 husl)iiicl, anil notict. of prot(!st was sent to ".laims Hell, executor of the, 
 last will and testament oi M. A. Hell, l'erth,"and received by the husband, 
 who resided in the house which was p.irt of his deceased wife's sep.irati'. 
 est.ite. No letters of ;iiliiiinistratioii liad iieen gr.inted : Held, that the 
 notice was suHicieiit : Mi'irh(tnl-< Hank v. lUll, '1\) (irant 41.S. 
 
 One .S. discounted with a bank a uitc made by I*. S. died, and his 
 executor proved the will befoi't.' the' note maturt'd. The note was jirotested 
 lor non-payment, and tlie b.ink, being uiiawaiv of the death of .S. , addressed 
 notice of protest to .S. at roioiilo, w in;re the note was dated. The iniior- 
 sers .sub>ei|Ucnt to S., who knew of .S.'s deutli before niaturity of the note, 
 took up the note from the bank, ami, relying on the notice of disliunor 
 given by the bank, sued S.'s exeeiitor ; Held, that tiie holders of the 
 note, not knowing of ,S."s death, and having .sent ■ notice in pursuance of 
 :>7 \'ic. c 47, s. 1 (1). i. ( similar to s. 4!(. subs. 4 of tliis Aet|, gave a siif- 
 lieieiit notice to bind the executor, and that the iiotiee .sogivfii. enured to 
 the benefit of the other indorsers : Coxijrari v. /it. //< . (J .S. ('. K. lU."). 
 
 " Il,I,ISTR.\TI(tN.S. 
 
 I'rior to this Act it was held that, wlu're a note is payable to, and 
 indorsed by. several jiersons not jiartners, notice to one is notice to all : 
 r.'iiikii/ Mir/iij/dii V. (I'lui/, I I,'. C. Q. li. 4'2'2. 
 
 Where there are two or more joint indorsers, not parties, notice must 
 be given to all : <lanll v. Joins, 1 Crancli C. C. -10. 
 
 The fact that one partner of a linn indorsing a noti' had .allowed judg- 
 ment by default to be entered against him. does not ojierate as an .idiiiis 
 sjoii ot notice of dishonor as against his co-j) irtnei'; l'( nijint v. Me l\i ir.'u , 
 • ; L'. C. t'. V. .SOS. See also, 1 l'nrsi„i.< „n Hills, ".O-i. 
 
 Notice of dishonor yiveii to one member <'f a lirm is notice to all, evt'ii 
 tiiongh the linn is dissolved, or one of th.' ))arties is dead : li<iitliHn v. 
 /V(;/( , r>\ Mo. iV.H ; s. p. Wo'jan v. '/'Imin/ <i>ii. La. An. .'iOO. 
 
 A bill was indorsed to a branch of a b,.iik at I'ortmadoe, wliieh sent it 
 to the l'«llheU branch of the same hank, w hich indorsed it to the head 
 olliee ill l.ondon ; -Held, that e.ich of the branch banks was an indepen- 
 lieiit indorsee, and each was entitled to notice of dishonor : I'lud v. llai/- 
 /.'/, 1-2 M. k W. 51 ; 7 Jur. lOil'2. 
 
 ' The iMiglish Act contains an additional clause requiring, in the absence 
 of special circumstances, notice to be given, ('() where the parties reside in 
 the same place, the notice is to be given or sent olf in time to reach the 
 proper parties on the day after the dishonor of the bill ; (h) w here the 
 I'lrties reside in difj'ereiit places, the notice is to be sent the day after the 
 
Ill^l^: 
 
 I7( 
 
 <o 
 
 THK HILLS OF KX('HAN(iK ACT. 
 
 Sec. 49. (liHhoiKir of tin; l>ill, or l»y tlic in'Xt po.stilay. Tlii' provisioiiM as to posting; 
 '""" uolict; of (iLslioaor aru coiitiiiiioil iii mil) .s. 4 post. 
 
 ll.I.CSTilAIIONS. 
 
 'I'liii ^'ciiiir.il riilo :is to \vli;it will he rciisoniiWli' iiotirc Hfciiis tolic.tliat with 
 reH|H'i't tip |ifisoiiM liuii;; in tlii' .sum' town, tin' iiotii'i' iimst lie j,'iv( ii li) 
 the iifXt (liiy : />.(/•''/.<////( v. I'urki r, (i Ivist W. 
 
 Ami H ith rcLtanl to pcr.ioiis liviiiu' iit ditl'i ri-iit |ilac(s, iioticr mist 1m' 
 given liy tlir inxt [xpst at whieii ii wouM lie ifasoiiahly jtiuctiealde to wjvf 
 notice : WiUm ms v. Sinit/i, 'J 15. >*c .\. 4!tli. 
 
 It is Millieiint if the indoiher rereivc; notice .sent l)y piivate haiul. 
 iilthoiii^ii it Ncnt liy post, he inij^ht h.ivi' liecn lielivi reel a <lay sooni r . 
 Aai.^iiii V. () Hi'ilijil U. ('. II. T ■_' \'iit. 
 
 .A notice of (lisJKiiinr, though ililayeil liy ini.sdirection. is sutlieieiit if, 
 lieiiig posted siioiicf than necessary, it has heen reci'ived within the period 
 allowed li\' law: ISniiLn) Itrilish Xmlli Anil rial v. l''i.s.i, 1 U. < '. <i>. \'> 
 1!»!». 
 
 i'hiintill' and deteiidant rcsiiled alxnit three miles ajiiirt ; the mail ran 
 between lioth places, and tdosed where |plaintitl' resided, on .Monday, Wed 
 nesday, and Friday in e;ich week ; tiie hill was presented 'or iiayinent on 
 Monday the 4ih. h iiij,' the last <lay of giMcc, and not paid ; there hcinu 
 no mail on the .")th, notice was served on def> iid iiit hy a speei d inissi'ii_'( r 
 on the (iili, liefoif it could havi' ivaidn'd hini, had it hecn in nlcd on tliat 
 day ; li'ld. in >^ 1 time ; <'/i'i/iiiiini v. /liJiii/i, I [' . ('. ( '. I', i'.i'l. 
 
 Notice mailed in the propi'r post ollice hctwcen ci^'iit and nine in tie 
 evening of the day alter protest: -Hi Id, snlticient, thoiii^h the post 
 mark iiiioii it w.is of the following day : ir//<o/( v. I'r'unil' . 14 V . ('. (,». W 
 •J.Sl). 
 
 \\\ iiiiloisec eni[)loyed his solicitor to discover the indorsi"'s adilres.^ 
 anil i^ive notua' of disiionor. 'i'he .solicitor discovered the adilress mic 
 •lay, uon-iilted lli^s client the second, and gave notice the thiid ;- lield, 
 snificient : Firlk v. T/ini.<h. H 15. & V. :587. 
 
 A note was due at a hank on the l.'ith Septemlper, hut owing to a 
 change of in:iiiaL'er,s. the new manager knew nothing of the note until 
 the evening of the li'tth, when he caused the note to he protested, ami 
 notice ot protest to he jttit in the defciitiaiit's hox at thi' po>t ollice hefoic 
 six o'elixk the same evening ; Held, siillicieiit iiresentineiit and notice of 
 protest : i'liiiiii lUtnk v. Mr Killuidii, 4 .Man. 11. -it. 
 
 Notice given to an indorser on the (hiy hefore a note is payahle, is iiief 
 lectual : Toiithttlci r v. Cornirall, '.^ t'al. 144. 
 
 '■• Jllusth.viions. 
 
 I'iie law that one (ilear day is to he allowed for each ste]> in eomniuiu 
 Cfition hetween partitas in dealing with hills, cannot he extended, so as t" 
 allow any further time for eoinmunic itimis lietween an agent and his 
 jirinei|)a!, in reference to any .step : Iti Lmls Ihtiikiini ('oni/xiiii/, L. It. 1 
 Kq. 1. 
 
 Where a notice of dishonor hy the acce)itor in London was sent hj- the 
 post to the holder in M., and was delivered hetween eight and nine in 
 the niorning, and the post went out for Liverpool, where the drawer 
 lived, hetwtH'ii twelve and one. the holder sent notici^ to the drawt'r in a 
 letter by a private person on the second day, who did not deliver it to tin 
 
Tin; Hii i.s or i:x(HAN<ii: act. 
 
 177 
 
 iliiiM'tr until two lunirs .'iftcr tlu- Liverpool post (liiivciy ; IfcM, tluit SeC 49- 
 
 till' hoiilcr li.'ul iiiiuli' till' lull lurtowii Ity liis I.-U'Iu'm ; I >(trlii\hiii v. l'iirl:<r, • ' 
 
 ti Kiist :\. 
 
 W'licri' ilflay is imiisciI liy tlic piirty to wlmrii iiotiiv is tiist sunt, ho 
 tMUiiot >,'ivc' ail ill'i'rtiiiil hot ii'i' so iiH to liiiiil [iHi'ties iuitii'cilciit to liiiii : 
 Sl,J/,,ii V. lirnilhimit, , S M. ,V W. '-'.'t. 
 
 '" Tile ;;if.itcr |iHit <>t this clansi' is ;i n'-<'ll.ictniciit ot (', S. ( '. c. l'_':{, s. 
 "i, ori^'iii.illy .'<(' \'\y\ c. 17. s. I. wiiicli li;is hccii coiistiui 1 in tii' 'Mm' o 
 ('<,<,jrnr< V. /)'.,(//,, I.-, I'. ('. (,t. i;. ;V.', .") A|>[i. 1!. 4."iS, an I (i S. C. jl. jli,'.. 
 .See note (i, iinti p. 17.">. ISiit compare tiii.>j with suits. (/). 
 
 It.I.rSTli.VIIUNS. 
 
 .\ nrttice of non-payment sent to an imlor.ser tiiion;.,'h the po.st olTu e, 
 adilresseil to him in "' ^'ol■k township," in wiiieli he resideil, was iiehl 
 >iiliiiient, there lieing no exidenee as to whctlu^r there w.ss one or more 
 post olliees in tliat trtwnship, nor tliat it onglit to iiave liei n direiteil to 
 any certain post olliee : llaiih of Cp/nr i'diKula \. /Ilimr, '> I', v '. (,». I!. 
 i:ii». 
 
 The ayent of .in indoisi'r Iteinj; asiieil l)y the aL,'ent of tiie liolder where 
 tiie iiiilorser resided, gavo an erroneous dii'eetion ; Held, that iiotiet; (if 
 lion ])avnient sent to siii'li place w.is siitlicient : Viiiniliiui v. A'lo.v, S U. (". 
 1^ I', ridd. See also .]fr.\f,in-l'/, v. r<„r,r.<, 10 V. ( '.' (). li. 4S1, alul /ituik 
 f/ Cj'/x.r Citiindii V. Snillli. ',\ V. ( '. <^». 15. M.'tS. 
 
 The indorser of certain promissory notes resided ;it .S., and his place of 
 liusiness was there. Notices of dishonor were posted, addressed to the 
 defendant at .S., at 1 o'clock p.m. on the day .'ifter which the notes 
 matured, the i)osta<,'e on such notices heing duly prepaid in lioth cases. 
 Tlieri' was noloc.'.l delivery liy letter carriers from tint post olliee : Held, 
 >ullicieiit notice of dishonor ; .)/( /v7^(//^^■ lliitk v. MrXntt^ \\ S. « '. I!, pjti. 
 
 It is sulliciciit if the notice of dishonor was po.-tcd in su h time as that, 
 iiy the usual i-oiu'se of post, it woiiM he deli\crcd on the pr(i[icr day : 
 Siorkiii V. Coii/iii. 7 M. iV \V. .M.'). 
 
 The ilt'fcndant had resideil and carrii'd on liusiness for several years at 
 a pl;iee called i>. ; -Held, that a notice of dishonor aildressed to him at 
 I'., was siillicient. thoimh he had chanu'cd his residence alioiit that time, 
 the holder not lieing awart' of such (diaiige : llunk af \i ir llnni-oriik v. 
 .\t:ii;r;n, 4 All. X.M. •2r,4. 
 
 W'lmi'c a pl.ice h.as lieeii designated liy u jiai ty on a hill or note as the 
 address to which notice may he sent, the holder may sen.l notice of dis- 
 iionor to that ]ilaee, eviMi if he has rea.soii to think that mi 'ii pl.ace is not 
 the place of residence or liusiness of sueii party : /hn/ v. Iturh-, I(! .\pp. 
 i;. Ki.S. 
 
 " r.y the I'o.-il Offer Art, K. S. C. c. :\.\ s. V\ it is provided that tiom 
 tiie time any letter, p;ickot, clinttel, money, or thini,' is depusitecl in the 
 post ofiice for the purpose ot lieing sent hy post, it shall cease to he the 
 pio])erty tif the sender, and shall he the property of tin; person to whom 
 it is addressiMl, tir the l(!>,'al personal representative of siirh piisoii. A 
 liersoii putting into the post otfice a letti^r, j)roperly directed, has done 
 all that is necessary for him to do, and is not answcrahle for casuidties 
 ""I'lirring in the post oftice : Dun/a/i v. Iliijijiiis, 1 M. L. C'as. .'J.SO ; Shan- 
 ii'iit v. Ilttslimj.-i Aliiliial Ins. Co., '2 App. li. 81. 
 •2.} 
 
m-. 
 
 •Hiii 
 
 17s THK HILLS OF K.\(HAN(iE ACT. 
 
 Sec 49. Ii.i.rsTiiATiuNs. 
 
 A notice |Misti'il on the day on \\ liicli tlii' note is diHlinnorcil is good, 
 ultlioii),'li, liy tlic nii.st.'ikt: oi' tin poNl ollici!, it is not dflivmtMl to the iKirty 
 I'ntitU'd to .siii'li notii'c until «onio time aftLTward.s : '/'</(//"/• v. (Irnr, 17 
 V. C.i) 15. 'I'l'lx s. ).., \\i„„lri,i-k V. J/oii/diirorfh, Iti M. Al W. Il'I ; 
 Dohri' v. h'liilironil, .S C. &. I'. '2.">U. 
 
 'I'lic lioldci- need not iirovc the notice to liiivi' been reeeivi.'il. I'llttin;,' 
 a lettt.T into the post olliee, tlioiii;li the post niiscini'y, is Hnllieient. Though 
 tlifi'e is !i post-olliee in the township in whiith the indoi's< r resides, tin- 
 iiolder need not direct his notice to that ollice, if there ho jv nearer oITk e 
 in the adjoininy township to \vhi(di the indorser's letters lire generally 
 sent : I In Ilk of l-'j)/!! r Cniiitiln v. SiniUi, .'{ L'. ('. I). 15. .'{."•S. 
 
 r»0. Delay in giving notice of dishonor is cxcnstMl wlu'ic 
 
 When (Icliiy 
 
 ill UlvlllL,' 
 
 Ii'io'io'ii!!! is t.lie delay is caused l>y circunistaiiees hoyorid the control of 
 
 'inip.'\d,Hr,(i the party ;L;ivin_<f notice, an<l not inijuitalilo to his default, 
 
 iij.Aci.s.'jo |„i«^j.,„„i,n.t_ Qf nejgdi^^enco : when the cause of delay ceases 
 
 to operate the notice nnist l)e given with reasonahle 
 
 diligence : ' 
 
 wiiftiMuh 2. Notice of dishonor is dispensed with — 
 
 iiolici^ IS (lis- I 
 
 pCllSl'll Hitll. 
 
 oaiui.it i.B (d) When, after the exercise of reasonable dili<jence, 
 notice as rcijuired by this Act catinot be given to or doe> 
 not reach the drawer or indorser songhb to be charge<l ;- 
 
 Wiiivcr. 
 
 As rcKiiriU 
 • Irawfi-, 
 
 (/>) By waiver express or inij)lied ; notice of dishonor 
 may Ijc waived before the time of giving notice has arriveii, 
 or after the omission to give due notice;-'^ 
 
 {<•) As regards the drawer, in the following cases, namely: 
 
 (1) Where drawer and drawee are the same person; 
 
 (2) Where the drawee is a fictitious person or a person 
 not having capacity to contract ; ■* 
 
 (H) Where the drawer is the person to whom the bill is 
 presented for payment ; 
 
 (4) Where the drawee or accceptor is, as between him- 
 self and the drawer, under no obligation to accept or pav 
 the bill ; ^ 
 
 (5) Where the drawer has countermanded payment 
 
THE HILLS (»F KXCHANdK ACT. 
 
 17!) 
 
 ('/) As rt'giirils the iiidorsci-, in the IbllowiiiL; cases, 
 namely : 
 
 (1) VVlieie the < Ira wet: is a tictitious person or a person 
 not liaviiiiLj mpacity to contract, an<l the imlorstT was aware 
 of the fact at the tiiiie lie indorsed the hill ; •> 
 
 (2) Where the indorser is the person to whom the hill i.s 
 presente<l for payment ; 
 
 ('i) Where the hill was aecepte<l or made for liis accom- 
 modation. 7 
 
 ' WluTi; tln' ilnuvi'i" lias sustiiincil, jiinl ciiii sustain nn Ih.h.s or iiijniy or 
 lirfjiiilitc hy tliu want of notice rif diMlionoi', \u' will l>i^ held li.ilile, not- 
 \\ itlistiindin;,' tin- w;iiit of .siiuli notico, if liavinj,' fuixls in tin- li.inds of tin' 
 (lr;vwi:t', lie voluntiiiily witlnlriiw^ tliciii.or if hiiviiig nofumlH in tlR' li'imls 
 (if tlie drawee, but having them on the way to reaoh him, and to he 
 applied to the discharge of tin; hill, he intercepts and stops them, or where 
 hefiiro acceptance he orders the drawee not to accept the hill : Slonj mi 
 HillsyH. .'{in. ih'lay in tiie presentment of a hill for acceptance is excused, for 
 ca\i.ses mentioned in 8. 41, suh-s. "J; delay in presentment for payment is 
 excused for the causes mentioned in s. 40 ; and this section piesenlies what 
 are excuses for delay in giving notice of dishonor ; and they also ap[)ly to 
 delay in giving notice of protest l>y s. 31, suh-s. 'J. 
 
 Il.l.lSTKATIONS. 
 
 There nnist he leasonalde diligence, such as men of husiness nsually 
 exercise when their interests depend upon ol)taining correct information : 
 I'aliiifr V. Whitmy, 21 ln<l. 5S ; s.p., \(ir OrlKins ('anal Cu. v. Jiry, "J 
 La, An, 30S. 
 
 As the law-merchant respects the religion of dilTerent pi'ople, a liehrew 
 indorsee was held not guilty of laches, who iienlectiMl to give notice on tlie 
 regular day, that day iieing a festival whereon he was foihiddeu to attend 
 to secular business : Lindo v. Unsir,,rth, 'J Camp. ()()2. 
 
 A state t)f war hetween tiie coniitiy of the clrawer and that of tin- 
 drawee, is an excuse for delay in giving notice : llniihul: v, /'"'/', - 
 llroek '20, 
 
 The prevalence of an epidemic (as yellow fever) in a locality, is an 
 exriise for delaying to give notice of dishonor : Tnnivi v. /.ihim , •_' Johns. 
 (X, Y.) 1. 
 
 Sickness, to be an excuse for delay in pr«,'Senting and giving notice, 
 must he shown to have heen not only sudden, hut likewise so severe as to 
 h ive prevented the holder or agent Iroin employing another to make the 
 |iiesentment, and then it must he shown that the proper steps were taken 
 as soon as the ilisahility was re.i.oved : H'jY.-io// v. .Senii r, 14 Wis, .'JSd. 
 
 The (juestion of diligence in giving notice of tlislionor to the indcuser, is 
 I inixeil question of law and fact : Ximh v. Ilairiiujloii, 1 Aik. (Vt.)aS). 
 
 Sec 50- 
 
 An ri'iionls 
 
 iiKiiimcr. 
 
? 
 
 ifii# 
 
 ISO Tin: liii.i.s or KXciiAsciK ait. 
 
 Sec 50- 'I'Ik' ^X'd^'iilWililrlirKh of 111!' Iliiticc of iliHliniinf, mi far as it (IlcctH tin 
 
 '~"~'"~" iiiit>tnpii I.I iliir ililigt'iii t', IS a i|iirstiiiii (if fact fur a jury : Hnln rlsun \ 
 l'o<lli. I hall. •iXi. 
 
 \\]\rvi\ liy the law iiKrcliaiit, tlif diawfi- of a Ml! i.s not ontitli'il |., 
 
 Ilotiri' ut ili^jioiiof, fill' stalutipiy clili;;ilH'(' lirnl not lii' ojis* imiI : Mi,../ 
 V. Mr.Uxiii^. '.';{ 'JVx. -IMJ. 
 
 \N licH^ tlu' iniloiHcr icwiilcs in a (iitlrrcnt jihui' fioni tliiit in wliiili it i- 
 payalilc, notice of ilislionoi' nniMt lie smt to iiini in tiic pLuT in wliiiii In 
 i« actually a rcHiilcnt : Hunk i>j' I'ticn v. Ih.Mutl, '.'."J .IoIhih. (N. V./ V.Vl. 
 
 A liotc wa^ ij^'c.scntcil for |>a_\ nicnt in !>., an<l ili!<li<noiril ami piotcstiil 
 
 Notice.'' ol tJi.'^liriiMii «ilc |Hi.stcil to tliC ihi|o|.sc|-. adcllt MSCil to ('., I'llt In 
 
 livcil in I)., ami the li.ink wliicli licM the note for coihetion, cotiiil li;i\> 
 Heen the mistake, in diii- tinii-, from the piotest which it rei'civeil. 'I In 
 imloi'st r was helil to he lelcaseil ; Kiit the hank wm.h held llalde 1hc,'1:«i 
 it nc;,dei'ttd lo H'ctify the mi.'-lake, anil si nd a pidpei- imtico to tlif iiidm 
 Wf : .^/lin/iiijl V. M< I'-hiiiil- Ittii.L, Mi r. ('. (,» r>. 'i:>. 
 
 ' The di at h. know ii liankiii]it(y, or known insolvcnry, of tlie drawee, .'i 
 lU'ceptor of a liiij or maker of a note, of his heing in pri.son, or tlm iKptcii 
 OUH Ht(ip|iin<.' pa\ lilt lit of a lianker, coilHtitlltcs no cXeii.He, eitiier in law "i 
 ill eipiity, Ol ill haiiki iiptc\ , for the iie;.dei't to give due notice of iumi 
 
 Jicceptalice, or lioii-payme 
 
 It : I 
 
 leeati.se inaiiv means niav remain o 
 
 f ohtl! 
 
 in>^ payment hy the ii.s.sistance of friend.^ or otlu'rwi>e. of which it i.s ic; 
 
 1)1 indc)isi'f« should iuive tlm opportunitv 
 
 i.'ii 
 
 Koiialile that tin; draw* 
 
 availing themselves, and it is not eonipetent to tiic liolder t" show, t 
 the delay in uiviiii.' notice lies not, in fact, liecii prejudicial. It has In 
 ohserved that it sounds li;iish that the known liaiikruptcy of the iicce|i 
 should not he ileeiijcd c(|uivaleiit to a demand, oi' notice, Imt the rule i- 
 too stroiii; to he dispensed w itli. and the holder of a hill has no rij,dit t' 
 jiidyt w hat may he the reimclies over, of a jiarty liahle on a hill. It is w 
 
 li.i 
 
 excuse that the ch;iiice of ohtainiiii,' aii\ thing uiion the remedy over, 
 hi peless ; that the person or ]iersoiis against whom tin remedy 
 
 Will 
 
 iM 
 
 lipjily, were insolvents or iiaiikriipts, or had abseoiii 
 
 ded. 
 
 'arttcs arc enti 
 tied to hav' the cliam-e oU'eied to them; and if they are ahiidgi'd of it 
 
 the 1 
 
 IW. W till 
 
 h is founded on the custom of nierelumts, 
 
 ys they an 
 
 discharut-'d ; ( 'hittij uii llil/.'<, 482. DiOny in prcsentnitnt for pnynu-nt is mt 
 cxcnscd in all the cases w here delay is excused in giving notice of dishoiidi : 
 but only in tlio following cases mentioneil in suh-s. 2: ('() "reasonaMi 
 diligence : '"(//) " waiver ; " (c '2) {<l 1) "a fictitious person, ora ])ersoii ii> t 
 liaving capacity to contract," (the latter person is i.ot mentioned in s. 4111 : 
 (f. 4) ilrawee ' 
 inudation of that indorsei'. " See further note 1 to s. 4G. 
 
 der no fthligation to acce]it or pay ; " and (// .'J) " act 
 
 Il.I.lSI li.VTIoNS. 
 
 Wl 
 
 len notice o 
 
 f disl 
 
 lonor rcacnes 
 
 the drawer of a hill too late, li.'iviiii; 
 
 first, liy mistake, heen sent to a wrong person, and such mistake aro^c 
 from the indistinctness of the drawer's writing on the hill, he is not ili.s- 
 eliarged : llnrill v. '/'fioiiijisuii, 1 M. & l!oh. i)41. 
 
 It is the duty of the holder to give the notary full information as t" 
 the names and residences of the indorsers. Where the signature of iU 
 
TIIF lUI.I.S (»!• KX<||\N(;r. A( T. 
 
 I.HI 
 
 iii'lorHor wtiM hii |ii'<'iiliiii tlmt it roiilil u<>t li" ili'i'liiliri-i'il, altlionxli tin- SeC- 50- 
 
 Iw'l'lir tif the licilc UMn Well .li'iiUilMltfil With till' xi.'lhlt 111"-, Ml|i| of tile — — — ' 
 
 1 1,1 it VH r<"<iili'iii'i', lull ciriiitti'il ',•1 I'liiiiiiiuiih' ttc tin III tu tiic iicit.u'V, >\ lii> 
 wlli.'ll |i|nti-(tili;' fill' lioti' IIMl'li . nr a> III' ir is liii:;ilt In , a t.i'- >llllili' nf till' 
 •i:.'iiatilit', .'ilnl no ail'lii'SNiii tin' imtii'i' ut iliiliiuiipi to " lli lli'villi' I'. O. " 
 
 liUt till' illilnlKfl' sWorr til, it t!. Ii.itlfl' llfVlT rcullcil llllll, tlloll;^!! I'I'siill'll t 
 
 III Ili'ili'Villi' ; lli'lil, that till' hhIdixci' WiiH ijiscliargi'ilr Itmlli' ', /'(VAwij/i, 
 T \|.|.. i;. Tod; s. v., 4tl U. C. <,>. I!. HIT. 
 
 Till' liaiik lii'M a notf iiia<li' liy \. .iiiil iii'loiwi'i liy U. tor tiir ari-oni 
 iiioijatioii lit I ). . w lio ili.si'oiiiitril it witii iIh' l>aiik, uliiili lia<l know li'il^'i; 
 of tilt- lii'''o||||||o,|^itioi|. U|| till' imti' lii'i:i;{ iIimIioiioIiiI, tlir lialllt ll;lll<l>'il 
 
 It to I), who was ilu; liaiik's solii'itor for piotr-it. I>. iliil not |iiol»'st or 
 notify A. oi' li of its iliHhoiior, Itiit ilrlivri'i'il it t I thi'iii, ailihii;^ that lit; 
 iiul |>aiil it. AftiT itM iiialiiiity, |), lii-ratiic itisoh cut ami ahsi'omli'il, liinl 
 A. and IS. Wiii' for tin' lii'st linic notltinl 'il the iionii lyiinlit of tlic note ; 
 -IIl'IiI, on i'(|iiit:il)li' ^roiiiiiU, thtt l>y tlir lai'li("<i>f thu hank's ayt'iit tln-y 
 wi'i'c ilisi'liaigi'il : < 'iiiiitiliiiii Itiiiil; of ( ''inini' rri' v, (ir<'ii, 4.'> V. < '. 
 i,t 1!. HI. 
 
 A hill ilrawn on pt'i'soim rcsiiliii^ in Ihihlin, Irilaiiil, w.'is ;.i 'iti'r<ti"cl for 
 iion-piiyiin'iit on the Uril .N'ovun hiv, KS4I ; iiotioi' thcrrof wa.s iiMicivuil hy 
 till' inilorsi'i'H, w ho rt'^iili'il at St. .loiiii, .N. I>.. (w h; rr tlii' hill w.is drawn), 
 on till' 'J'Jiid I Ii'i'i'IiiIm" following;, Init w.i- lu'ld not to In' in diii' tiinc, it 
 i|i]irariiii,' that till' 111 lii- Irft iJri'at lliitain for Nrw I'.iiinsu irk, on the 
 tth an<l on tlir I'.lth Novrinliii , and ihiit ,i iioliii' sent hy thr mail of tlio 
 liitli, would have ri'ai'hi'il St. .lohn ahoiit tin' 4tli jiiiiinlii'i' : /*'.(/;/.- of 
 S' ir r,,-in..<ir:rl; \-. Kiliiirh:i, '2. Kerr .\. 1!. iM'.*. I>ut fee Taivatt v. W'il- 
 //ii./, 1 All. .\. I'.. .'Ul. 
 
 The holder of an overdue liill went diiriiiL; liii>iiies-i lionrs to the coiiiit- 
 in;.'dioiise of the di'awii', for the |)ui']iiise of ^iviiiL,' iiotne of dishonor, 
 and, tindiii.' the eoiintiii;.' house >lint. In' Unoeked ,ii the door, and no one 
 aiisweiiiiL,', he i-aini' away, witlinit le i\ iiii; any iiotiee ; -Held, that these 
 faets did not su|iport an alle;,' ition of due iiotiee, Imt were I'luiivaleiit to 
 a dispunsiition w itli iiotiee; Alkii v. fj hitiucl-iiii, '2 K\.~\'.). .See also 
 CruKw V. Siiiilli. I .\1. it S. '}\5. 
 
 lt,'lloi'anee of the ]iiaee of resideliee ot the dl'.'lWer is .i sllllieieiit exeuse 
 of the want of notice of dishonor, |novided due dilim'liee is used to dis- 
 cover his place of residenci- : lii'unuiinij v. Kmn'tir, (low. s| ; and .sue 
 WiUUiiici V. d'eriiiniii'-, 7 H. i^c ('. 4(i!t ; linltniiui v. Jiis>ph, PJ l-'ast iXi, 
 and Htterid<j<! v. />'«/•;/('<, 3 (."amp. "iti'J. 
 
 I'he time eonsiimed in in ikiiii,' in'eess'iry iinpiires relative to tlie ji.'irties 
 to .1 note, is not to lie iiii|inted as 'aelns 'I'liiis, where the plaintilF 
 lieiaint' iicipiainted with the dishonor on the .ith, and not knowing; tin; 
 pa. ties, notice w;is not despatched U) tlieiii until the It'itli, the original 
 iiidorser was still held liahlu : /idlilniu v. Itirlttiniiuii,'! I ». iV li. 'Js.') ; 1 
 I! &C. •-'4"). 
 
 .\ notice, thou;j;li ean'essly miilecl hy the not.uy on the day of protest 
 to a wroii^j; address, had heeii received liy the defendant ahout a week 
 afterwards, and tin —i was some slight proof of his liaviii_' applied to tin' 
 plaintitr for lurther time fo;- paynient. The piry found f'lr the plaintill" 
 a'.'ai list the .Indie's chai';;c, ;ind tiie Court refused to interfere : L'iili v. 
 A' ///, 1!) U. C. Q. B. '2;W. 8ee ('oin„i"irinl Hank v. Wilhr. .". IT. ('. (.). I',. 
 4:i:-l ; Ric.ilv. Mn;;i\ 16 U. V. C. P •.»7«». and /I'nd- nf .]f,„i/r< "I v. SnjII, 
 
 •J4 r. c. Q. li. 11.-). 
 
 The indorser of a hill which hail lieeii disiioiiored, .iiter a suhseipieiit 
 indorsee hud niaile it his own hy laches, paid the hill, and gave notice of 
 
1.S2 
 
 THK mr.I.S OK KXcTfANCK ACT. 
 
 Sec 50- ilislinnor to a |>rinr indorsor :- Helil, that li 
 
 (■ ('(111 
 
 1.1 
 
 not n'covcr, cvoir 
 
 tlidUL'li the (IrffiidMiit. ill ciisc (if siK'i't s.sivc noti(.'t's hy the ntlii r ]iiirticsoii 
 
 till' l.ill, 
 A. 4->\. 
 
 (■(Ill 
 
 M iidt liiive rcci'ivcd iidtiue snoiii'i' : '/'( 
 
 V. Lcr/t, 4 ]\. I'i. 
 
 Tl 
 
 \c wiiivcr iii.-iv lie in 
 
 tlio nature of iidniissions df lialiilitv, wliich ar( 
 
 held to lie cvidciifi' of diic iiotiiH' liiiving lietn given 
 
 idini>siiiii,s (it 
 
 lialiility where no not! 
 
 las lieen givei 
 
 and which aic held to h 
 
 evidence (if waiver of notice ; or adinis^ioiis vt tlie time the liiH is due. 
 sueii a« that it will not he paid, and that notice need not he given. See 
 the ea.seb in note (i on waiver, .■<. 4<i. 
 
 Il.l.l >TKATlllNS. 
 
 The duty of demand of ]iayiMeiit and notice of dishonor, in order to hold 
 an iiidiiixi', is ncit part of the contract, l.iit ii step in llie lci;al remedy 
 ■ ■■ ■ W'finr. 1!» I'a. [VM). 
 
 the drawer, a few dav's hefore 
 
 that 
 
 iia\' lie waived 
 
 it aii\ tun 
 
 hllirlinj V. 
 
 W 
 
 lere i:.'iioraiice 
 
 ■ f 
 
 residence arises Irolii 
 
 th 
 
 lull was (UK 
 
 statiiii.' to the holder that 
 
 had 
 
 ahode, and that he wdiild call and see if the hill w ere } aid. 
 
 no K unlar |ihiee of 
 
 it elitith 
 
 to notice : /'/i/// 
 
 4 ( 'amp. '_'!S.">. 
 
 A iKisoii w ho has ^'i\ (11 a w ritteii giiaiantee of a no!. . is not entitled ti 
 
 notu 
 
 if dish 
 
 Nor 
 
 ir : I'ldi. 
 h 
 
 IS one Willi gl\(' 
 accejitor of a hill : Hall, 
 
 llab 
 guarantee 
 
 •j:< r. c. c. r. wm 
 
 llill' V. 
 
 ;// 
 
 iihiii.- 
 
 for 
 
 1 H. .t ('. 10. 
 
 (l.s to he .supplied to the 
 
 A ('(iiiditioiial promise hy ;iii indorser tojiay in land, or see that tii 
 
 Holder slidu 
 tion as to 
 Met 
 
 Id h 
 ndti(.(' 
 
 ithi 
 
 I'lHl hi 
 
 lie, made lit toie or after action, waives any ohji 
 
 /•;///e/t. If) U. e'. (t. I! 
 
 tilO. 
 
 Hllllli V. 
 
 Ml, II, ti V . ( ■ (1 \\. :\' 
 
 Aski 
 
 for t 
 
 ime an< 
 
 I' 
 
 ii.^mg to pay. 
 
 a waiver of notice: lUihk o, 
 
 I'/iju I ( ii/iinld V. (iii:/iii. I I.e. () S. 
 
 \N here thtre has heeii a siilisdpK lit niiconditidiial piomise to ]iay, with 
 kiiciw led,i.'e of a delault on the part ol the lidlder. iioti 
 
 i(c IS dis|ieli.-( 
 
 ith : /liiiilct' /iii/ish Aoi/h A 
 
 nil run V 
 
 /,' 
 
 1 I", c. u. 
 
 MM). 
 
 '1' 
 
 le drawer of a 
 
 (ill int( 
 
 til 
 
 hef 
 
 ore the days of yrace 
 
 le hdlder on the pres( iitat jdii df a 
 
 had run. that the liill Wduh 
 
 itl 
 
 d not lie paid 
 
 hill 
 Held. 
 
 flirt iicr demand and notice w ere uni 
 
 lecessary 
 
 .1/ 
 
 iiitnni \\ 
 
 Fishi 
 
 Cai. :)7; 
 
 An indorser lUdmisinc to pay, though aware that no notice had hte 
 
 given, IS a want r 
 MrMiivrkh v. roin 
 
 >lii 
 
 Si 1 1 111 
 
 111 V. (. g. li 
 
 ii-. 
 
 lU 
 
 10 L'. ('. O. I!. 4S!. 
 
 Where an indoraer writes to tln^ holder to make him helieve it unn 
 
 ;ary t 
 
 (I LMVe 
 
 liini 
 
 itice of nonjiayinent. and stating that the maker is 
 
 insolvent, it may he cdiistnud as disjiensing with iidtice : I'mlitt v. 
 Cnniis/i. 4 r. L. v. 11. l.SS. 
 
 ^'(lr (ilividiis ri'.'isdiis it would skui to he sea rcilv necessary to enact 
 
 th 
 
 iiis clause. 
 
 '11 
 
 le drawet , in (liawiii! 
 
 tl 
 
 le liill in the iiaiiie of a " lictitiou 
 
 person, " heconies a party td a fraud, and is entitled td no protection from 
 the law. .'»o in the case of a peixui having no ca^iacity to c(iiitract, the 
 di'awer ."c(iuire« no security for his claim, should the drawee Ik coine an 
 acceptor : w hile he heconies. juaetically, the piiinary dehtor to the holder. 
 
 r non-e.xi.-ting peisun.s to hillsi, the 
 
 See a.- 
 
 to the names of tictit 
 
 lolls (I 
 
 notes to »». 5, 
 
 !4and 41. 
 
TIfK lill.LS OF KXCHANOK A(T. 
 
 I8;j 
 
 DVIT, (■\('ll 
 
 jmrtii's nil 
 ell, 4 U. & 
 
 wliicli ;irc 
 nis^^idiis (ii 
 itld to lie 
 Mil l.s due. 
 ivcu. See 
 
 .1. rt<> liolil 
 ,'nl ruiiadv 
 (1. 
 
 lays bofure 
 \r ])liiee (if 
 lut elltitlt il 
 
 elititleil to 
 lieil to the 
 
 ee thiit tii( 
 
 any ohjeo- 
 
 See also 
 
 ; liiihl: (;' 
 
 pay, witli 
 
 li.vJitllReil 
 
 ot a l.ill 
 
 1 ; llel.l. 
 
 7 Cal. .")7:! 
 
 had l)teli 
 See also 
 
 it niineees- 
 
 11' iii;iKer is 
 
 l;,,k,H V. 
 
 y to iiiaol 
 " tietitious 
 rtioii I'lMiii 
 iitraet, till' 
 liccoine an 
 lie holder 
 hills, the 
 
 " This i.s lia.seil iipor. ♦^h" jirojio.-sition that a )iarty who eannot he [ne- SeC- 50- 
 in<lieed hy Wiuit of notice of dishonor, shall not lie iiititied to reeeive it. 
 Thus if the drawer knows tiiat lu' h;is no etlVcts in the ;ieee])toi''s iiaiids 
 t.i inswcr tilt- liill. he cannot lie injuied for want ol notice : "2 Sinitli's 
 l.<adlii<j Cnsc.1, aO. 
 
 Il.l.l STKATIi>N">-. 
 
 IIIU' will M 
 
 lispenso with tl 
 
 le neeess 
 
 itv of iiotirc, lint tin. eir 
 
 eiiin- 
 
 Noth 
 stance of there heinj.' no elicits of the drawer in tin' ilrawec"s iiands ; it is 
 
 not enoii^'h to show that the draw( 
 Mi'i'viii , r? I'.s)). l.'iS, 
 
 not lieeii dainnilied : Ih 
 
 U th 
 
 ■r has no itrects in the hands of the ili 
 
 laweo, and no reason- 
 
 dile ^'roiinils to e\|ii-et that the hill will lie honored, hi' is not entitled tl 
 
 itiec : /-i;/;/i v. 7'; 
 
 \1 Kast 171. I'.ut .see irM-i 
 
 .A(./--. 
 
 •Jn'2. 
 
 '{'he want fif efreets w hich will excuse notice of di^ 
 :int of anv etiicts ; it is siillicient if tl 
 
 MO',. .' ncci 
 
 ere are no sii 
 
 1 lint lie a 
 tlicicnt e'Veets: 
 
 ' (/;•( ir V, 
 
 j>,i<i;i;uih, L. R. 4 i:\. ;{i;{. 
 
 Uankruiitcy of the acceptor dms tint dis[>ciise with notice to the 
 
 in aw I 
 
 r: HuvItU,, V. Stul,),s. Is \"cs, '21. 
 
 The rule requiring notice on the dishonor of iv hill or not 
 
 applicalilc to the ease of a fair trans;u'tion. where the 1 
 _'iven for valnc, and in the ordinarv course o 
 
 III or llntl 
 
 e IS Hilly 
 has Ih'cII 
 
 f tr.ide : /'. Unit v A'ki 
 
 •J H. I'd. :VM\. Notice of di>h 
 
 loimr is ilispciiscil with liy tins clause, 
 n liere the " dr.iwee" is .a lictitimis jieiMin, or a person not haviiii; c:i)iacity 
 T . contract, ;»nd the naiiu' was used to the knowledge of the indoiser. 
 Hut it has lieeii held th.it a person w Im, w itiioiit coiisideiMtinii, and w ilhnut 
 iraiid, indorses a hill, on which Imth the drawer and acceptor , ire liititioiis 
 jM rsons, is entitled to notice of dishnnur : I.Kuh v. Ilin-ill. 4 'I'auiit. 7'>1. 
 ■ It is a ]iarty's own fault if he has indorsed a hill of | iielitious| persons 
 'vho cannot .inswiT over to hini, and he must he a sull'erer then liy ; he 
 has placi'd hinisclf in the coininon situation of an indoiser :" /V /• Lord 
 'laiistield, ( '. d., ///('(/. 7.'{-. Hut if for cxainiile A. draws mi liiin^i If, 
 
 r 
 
 liiyalile to himself, and then accepts, and then indoi.-i 
 
 lliijiler 111 e 
 
 lot lirst demand of him as dra 
 ',s drawer, and then notify him 
 
 wei-, am 
 
 1 then iiiitifv him of ii u 
 
 ii''aiii as iiiilnrser 
 
 I /' 
 
 lysni.s ,,ll 
 
 1 -p i\ nil 111 
 
 /;;//-, .v.'i. 
 
 s.'c iilso Cuiui/ V. Thtiiiip^o)!, ~ ('. I!. t()(l. .ind .V' "• Yuri: ('iiiiirnrinni <'<i 
 
 . S'liiKt SiiriiKi.i li(nil\ 2H Anier. 1!. ."i.">"J. 
 ' The same stri.t and technical iintiee of disi 
 
 onor is not rei|nisite to 
 
 harm' " person liahle on the consideration, as i> leipiisitet i charge a per- 
 
 "II lialile on tile hill. In the one case the lialiility is •^raii^fer.ihh', in tiie 
 
 itlier it is not ; and therefnre all the dcleiices lietwcen the paities can ln' 
 
 i!ii(nired into : ('li'thihi:^ mi ISiH^. I.'t'.l. .\ liill drawn, payahle at the Iioum' 
 
 the dr 
 
 IWi'P, 111 
 
 list he |iresuiiieil to he all acciiiiinii idat ii HI liill. and tia 
 
 iliawer is not entitled to notice of its dishonor ; N/r'/// y. Ili'l' ii, !t ii. k. 
 t '. 44. See also Turivr v. Sant-iuii, '2 O. 15. 1). 'I'.i, and the n. j.s t,i s. 'J*). 
 
1S4 
 
 THK BILLS OF flXCHANfJl': ACT. 
 
 Sec 51 
 
 iiiiiuia i>iii 
 
 may I"' ii(ili''l 
 
 Hllll I'l'il- 
 
 test.-il. 
 Itilp.Act,s.M 
 Ihil Alt. .••-. 
 
 ".i;iiui. 
 
 KXd'|ition ii< 
 to (^UL-bec. 
 
 KiiriM.'ii liill 
 inii»t lie 
 
 |iMlt"-lcil. 
 
 l'rntc>l !■ r 
 llnli llivi'i 1 
 UUciM 1' liM 
 
 |ia}'iMi.'al. 
 
 Nnliiiir Mil 
 
 <lll.V (if lli.s- 
 
 liuiKir. 
 
 I'lotfst. 
 
 If iicccptor 
 
 |)li)'llU'Ut. 
 
 til. Where an inland liill luis licen dislioiiorcl it nuiy. 
 it" till' liolili'i' thinks tit, he noted and protested lor non- 
 accej)tance oi' non-payment, as the ease may he; Imt, siiliject 
 t(» the provisions of diis Apt with I'espect to notice of dis- 
 honor, it shall not, except in tlie Province of Qneliec. l»e 
 necessary to note or ]>i'otest any snch hill in order to 
 preserve the iveonrse aLi'ainst tlie ilrawer oi- indorsei- ; 1 but 
 in the casi- of a liill drawn upon any ])ersoii in the Province 
 of Queliec, or payahle or accepted at any place therein, in 
 default of |ii'ote.st for 7ion-accej)tance or iiDn-payiuent, a>^ 
 the case- niay Ik.', ami of noti(-'e thereof the paities liaMe on 
 the hill other than the acceptor are disrhiiri;ed, ^uliject,- 
 nevertheless, t<j the exceptions in this s(.'ction lu'reinafter 
 contained ; 
 
 2. Where a forei;j^^n liill, appearing on the face of it to he 
 such, has heen dishonored hy non-acceptaiice, it nnist he 
 duly jirotested ftir non-acceptance, and where such a hill, 
 wliich has not lieen previously dishonnreil hy non-acce] L- 
 ance, is dishonoied Iiy non-payment, it must he <liily 
 protested for nmi-jiaynieni,. ]f it i> not so prote^teil, the 
 drawer and indorsers are dischai's^-ed, Where a hill does 
 not appeal' on the face of it to he a fdrei^n hill, protest 
 thereof in case nf dislionor, except as in this section 
 ])rovided, is unnecessary : -^ 
 
 ?>. A iiill which has heen protested for non-acceptanct!, 
 or a hill of which protest for non-acceptance has l)een 
 waived, niay he suhsiMpiently protested for non-payment: 
 
 4. Suhject to the provisions of this Act,whei\ a hill is ]m'o- 
 testi'd the protest nuist he made or noted on the day of its 
 dishonor. When a hill has heen duly noted, the pi'otest may 
 lii3 suhseipientl}' Gxtendeil as of the date of the notinj.^ : ^ 
 
 .'). Where the acceptor of a hill hecomes haid^iaipt, or 
 sus]iends payment before it matures, the liolder may cause 
 the hiM to he protested for better security again.st the drawer 
 and indoiisors : « 
 
Till-: I'.ii.i.s OF i;x( )iAN(;i; act. 
 
 185 
 
 'i. A Mil must 111" iii-.itc>t<M] iit till' pliict' wln'iH' it is <li^- Sec 51. 
 UKucil, (.f ;it soiiir otiicr place ill ( 'aiiiida situiitc within wh.r s- 
 
 linnuri'il ttill 
 
 i\i' null'- (»t the |ilaui' of j)it.';^cmiiK'tit ami tlislioiior ui" sut-li w»<\ h-pi.. 
 
 ri>\i(iiM| tlint- 
 
 tL'.-tl'.l. 
 
 tliriiii-li I'.O. 
 
 (<i . Wlirii a liill is iiivsL'iitfd tliioii-li tin; iK)st (itru'c, and i'"'«''"t'<i 
 ivtni-ned l.y ])i)st dishonoi-i-il, it may lie protected at tlic 
 ].la'-i' to wliich it is ivtunifd, iidt later than on the day of 
 its I'ctui'ii Of the next jui-idical da\:'' 
 
 (/') H\erv 
 
 protect tor i|i>hon,ir. either for noii-aceejitance wi 
 
 tost iniiY I 
 
 iiiH(ie. 
 
 e Whiit no 
 taiv's |irn- 
 
 or iion-payuieiit. may lie iiiadi' on the ilay of >iich dishonor 
 at any time after non-acceptance, or in case of noii-pa\ nicnt, 
 at any time after tliice oclock in the afternoon : ~ 
 
 7. A protest mu^t contain a copy of the liill, or tii 
 ori-inal hill may lie ainiexed thei'eto. and the [trotest must ti'si'must 
 I'c signed hy the iiotai'y making it, and nnisL specify — ^i"">. 
 
 ('") The person at wliosi' i'e(|uest the hill is protesteil 
 
 {(>! The ]ilaee and ilate of profi'>t . the cause oi' reason etiur lUcts 
 f'^v prote^tiiiu- the hill, the demaml made, and the an>\ver 
 ui\-en. il any. or the fact tiiat the ili-a\\ee or accei>tor could 
 Hot he t'ound : "* 
 
 HoMiT. 
 
 or is \vrone-|v (»• if mii is inn, 
 
 d to 1 
 
 lold It, 
 
 N. Where a hill is lo^t or destroyed, 
 accidentally detaiiieil from the per-.on eiiiill 
 or is accidentally retained in a place other than where 
 
 yahle, jirotest may he made on a co[i\- nv written parti- 
 
 te. 
 
 I'ii 
 
 en 
 
 avs thereof: 9 
 
 !). Piotest is dis]iensed with hy any eircunistances whicl 
 
 Would dispense with notice ot dishoiiot l)ela\- in iiotim' .i.'i 
 
 1 ^Vll(■a prci 
 ti'.-l. aiid 
 
 or protesting is exensed when the delay is cau-ed ),v ei 
 enmstances heyoiid the control of the liohjer, and not 
 imputahle to his default, misconduct or nce-li^enc.'. When 
 the cause of delay ceases to operate, the hill must he noted 
 
 ii'>lili'_', is 
 
 r- tNciisfii. 
 
 or 
 
 ))rotested with reasonahle dili'-'ence, '" 
 
 24 
 
?WM 
 
 P 
 
 ISO 
 
 THE HII.I.S OF EXCHANCJI. ACT. 
 
 Sec. 51. 10. No clerk, tt'lloror -.\<^cut of uny l»ank shall act as a 
 notary in tli( 
 bank or at a 
 oniploycfl. '• 
 
 No hank notary in the protestiiirj of any bill or note |)avab]e at the 
 
 filfliiir to ttit , , <> , 1 1 1 I' 1 1 1 • ' 1 • 1 1 • 
 
 H»iiour>. hank or at any oi tlie branclies oi the bank m whicli l)e is 
 
 ' After prc'suntnient, the next step is to note tlie })ill. This is a note 
 or minute made upon tlie face of the hill, and has hcen ealled an incipient 
 protest. It consists ol Hw marking upon the lidl the initials of the 
 notary's name, and the true date of thf; dishonor : liradki'.-i Xiilanj. 9(i. 
 Although the noting of inland \\\\h i , /lot ahsolutely necessary, it is 
 customary to get them noted ; and there are advantiigcs in doing so, 
 beeause, as the noting is generally practised, the want cif it would tend to 
 render the other jiarties to the hills suspicious of irregularity, and more 
 reluctant to take them up, and would most certainly raise a prejudice in 
 the minds of a jury if the due presentment should be disputed: ///''/. 101. 
 A bill is often "noted'" where no ])r.)test is either meant or contemplated, 
 as in the case of many inland bills. The use of it seems to be tiiat a 
 notary, being a "person conversant in such transactions, is (jualitied to 
 direct the holder to i)ursue the proper conduct in prestMiting a bill, and 
 may, upon the trial, be a convenient witness of the jjresentment and dis- 
 honor : /ii/lcs (in Hills, 20'i. This section ot the Act applies to cluMjues 
 (s. 72), and promissory notes (s. 88). The noting and ])rotest are necessary 
 before an acceptance or payment for honor (s. 04). Uy the law-menliant, 
 inland bills were not lialde to prutist, like foreign l)ills, until the Act 9 it 
 10 Wm. III., c. 17, authorized tluir j)rotest the day aftei' the last day of 
 grace. The statute 3 & 4 Anne, c. 0, [ilaced promissory notes on the same 
 footing as inland liills ; so domestic notes, by analogy, are regularly pro- 
 tested on the fourth daj', or the day aftci- thi' last day of grace : lintdhury 
 V. Doolv. 1 U. C. Q. 15. 442. See also, lirKinjIi v. Parkhiiis 2 1-d. Raym. 
 092, iind liarh r v. Mr/\(ij/, 2 How. U. S. (iti. Knowiimly causing bills of 
 exchivnge, which had been tluly accejited, to be prntested for non-accept- 
 ance, is an injury to an acceptor's credit, and actionable : Jiriiii' v. ('ami- 
 <liaii Hank oi' Com more, 2.'} l'. C. C. I*. oOO. Nor does the law of Knglaml 
 recpiire protest, or notice of protest, in the case of foreign i)roniissory notes : 
 li<>nar\.MUch<ll, T, Ex. 415. 
 
 -This special ])rovision relating to the I'roviiu'c oi' (,)uebec, makes a 
 diflVrence in the Knglish law-nu'i-chant a])plicable to the otiier pmtion.s 
 of the Dominion, as to the necessity of ])rotesting inland liills and notes. 
 This provision, ho\\ever, is similar to articles 2298 and 2.'} 19 of the 
 ,(^)uebec ('ivil Code. an<l is also in harmony with the French law, and ■with 
 TU'arly all the commercial <.'odt'S of Continental lairope. Therefore to hold 
 all parties to their liai)ility on the bill or note, it is imperative that all 
 such hills and notes, whethei- inland or foreign, which are payable in tin' 
 Province of t^hiebec, should he protested for non-acceptance or non-pay 
 meat. 
 
THE RII,LS OF F.Xf'HAXOE ACT. 
 
 187 
 
 " Il.I.tSTliATIONS. 
 
 The indorsfM- of a hill is in all cases entitled to notice of dislionor, 
 whctlicr the dn-.wer has or has not ell'euts in his hands : (Irifm v. PhU/i/is, 
 
 'I'lm jilaintiir ))n)vcd hy a notary that verbal iKitiue of protest had heen 
 given, but the action was dismissed ; Cuirtui v. Tiir<jiuii, 1 Itev. Ley. 'I'M. 
 
 If the notice of jirotestbo ])reniaturo, or if time be yiven by the holder 
 to the maker of a note, the indorser is discharged : L'ltii Hnuk v. llunh r, 
 7 l!ev. I.e.;. 171. 
 
 The omission to state in a notarial jirotest that it was made in tin; 
 forenoon f)f the dav of jirotest. is fatal, .and the indorser is disclmrged : 
 .lus,,,hy. Ddlsl., I'L C. It. 244. 
 
 The non-exhibition of the note to the maker at the time of jirotest, tiie 
 maker beinu notoriouslv insolvent, will not invalidate the jirotest : Vmnir 
 V. ri(t,■o,|i^\•^ \.. ('. \\. 'M)~. 
 
 Where a bill is drawn and endorsed in I'jijier Canada, ((Jntario). but 
 jiayable in I.,ower Canacla. ((,)uebec), the law of Lower C'anaila gfiverns the 
 tiiiK .• ithin wliieli notiees nKiv be sent : Mat/lnirson v. ('(iriiinii, I U. ('. 
 
 (J. M. -jriiJ. 
 
 In an action on a note drawn and jiayable in Lower Can.iila, the law of 
 Lower Canada, ((Quebec), nnist govern as to tiie siitliciency of the notice of 
 non-jiavment : t'i/i/ lUtnk v. Lnj, 1 V. ('. <i». 15. lit-. .*>ce also Sinif/i v. 
 J/ii/l, ;i U. C". (,). 15. HI,"). 
 
 A Jirotest for non-aecentancc of a foreign bill is necessary to enable the 
 jiayce to recover against the drawer, and the want of it is not siijijilied 
 by jiroof of a notice for non-acccjitance, and a snbseiinent jirotest for non- 
 jia\ment. Hut notice to tin: d|-awi' ot the iion-accejitance shrjiihl be 
 given : (hr v. M(i(/iiiiil.'(, 7 Last .'{.">!t. 
 
 A note di-awn by a Itritish subject in !•" ranee, jiayalilc on demand, but 
 ilated Halifax, N. S., and iiitilided to lie used there, is not subjeit to the 
 l''iench law atl'ecting jirondssoiy notes : Mi ri'lianla llanh v. Siir/iiii/, 1 
 Huss. & (iel. 4;{'.». 
 
 A bill Jiayable in Fr.incc, though drawn in Lnglaiid, is a fonigii bill, 
 and notice of dislionor according to the French law, is sullicimt. I!ut if 
 it is a contract goxerned liy the Knglisli law, then notice of (iisiidnor must 
 be given : llifsrliiii lil v. Smith, L. IL 1 ('. I'. ."40. 
 
 .-\ Jirotest is the only legal notice of di.'<lionor in the ease <if a foreign 
 bill : Sd/oiiliili" V. Stiirilij, ;\ lliiug. 1.MIS. 
 
 * This clause is new law. llithcrto, altiioiigh the noting of the bill lias 
 been done by the notary on the day of dishonor, it has not been comjiul- 
 sory to do so. Tiie juactice as to jirotesting is as follows : .\fter the 
 jinaentment and refusal, the next steji is t<i note the bill. This is a 
 minute made ujion the faie of the bill, ami is c:illeil an " incipient jir<itest,'' 
 and consists of the marking ujion it tiie fact of the jiicseiitmcnt, and tiic 
 answer thereto, the initials nf the notary's iiaiiu'. the true date of the dis 
 honor, and the other matters rei[uire<l by the forms (see form .A). In 
 jii'aetiee. the jiresentment and noting arc done on the one day, and tiie 
 iirotcst jirejiared on some siibsei|Uent one. and dated as of tiie true date, 
 wlieii the bill was dishonored or refused accejitance ; and this is not 
 
 Sec. 51. 
 
KSS 
 
 THK lilLLS OV KXCIIANUK ACT. 
 
 Sec 51- iuik'diitiiij; tlx- jjioti'.st, Imt iiisci ting tlio true dak' of diHliniior. Altliough 
 ' tlic noting of tiic liill is gunviiilly done on tlic day on wliicli it in dis- 
 
 honored, yet the rule is not iinpenitive ; and in some oases, aueli as tlie 
 hiteness of the hour, distance and other causes, when it is vt^ry incon- 
 venient, or attencK'd with great diflieidty, to note it on the very (hiy of 
 presentment and dishonor, the praetiee is to note it at tlie earliest con- 
 venient opportunity afterwards, stating in tlie noting, the true date of 
 dishonor. It is not uneoinnion amongst miTchants to cause the hill to 
 lie noted ill the tirst instance ; hut l<i suspend the prejiaiiug a protest for 
 a time, in ordci' to allow an opjiorl unity foi' the expected ai rival of advices, 
 remittanci's, or consiirnmcnts, r(vmiiig from the drawer aliroad to the 
 drawee ; Jlranh-'n XnUiri/, U~. Noting was originally unknown in the law 
 as distinguished troni the protest ; it was merely a prelindnary step in the 
 protest, au<l has unw grown into a practice; L</li< 1/ v. ^(i//■■•, 4 T. ]{. 170. 
 'i"wo forms of •' noting for non-acceptance" are given in the First Sche<lule, 
 Form A. IJut, except in t^)uehec, no fee is allowahle. See note 4 to s. 93. 
 
 Il.l.l'STKATloNS. 
 
 A hill of exchange due on the 'i.'h'd Septeniher. was protested on the 
 2.")th, the notary n<itiMg the hill as jnotestcd on the 124(11. The extimlcd 
 jirotest hore Ihe ti lie ilate, the '-'."ttli ;— Held, that the noting dated the 
 '-'."ith was not a good warrant for the extended protest of tlie'2.")tli, and was 
 invalid; Mrl'lur-oii v. i\'rl://if, TJ Scss. (.'as. 4th .Ser. !)4'_>. 
 
 A mere noting of a foi'cigii hill for iioii-aooeptanee, without an actual 
 ])rotest, will not he siillicieiit, ami tiie want of it is not supplied hy a jn'o- 
 test for non-payment : Orr v. Mi«jiiii/ls, ~ ICast H.")!). 
 
 A document, jiui'ptjrting to lie a ]irotest, hut which had in fact heen 
 dnrwn up after the commeiieement of the action, cannot he received as 
 evidence of a protest : ('anii'hil/ v. IWhstit; '2 M. (fc tir. 2.")8. 
 
 Tile notary who tills up and certifies the protest, must have presented 
 the hill himself ; it cannot he done hy an agent: ('ariiiicli<ul x. I'vnusijl- 
 ran'ia Ihtiik. ;") Miss. (How.) "jS" ; s. ji., <'rihhx v. Admnx, 13 (iray (Mass.) 
 ii[)~. Sal contra Sii-'i.si .c, Bank v. /la/dr-in, 2 N. J. L. ('2'Harr. ) 487. 
 
 " Protest for hotter security i*! wlicre the acoe])tor hecomes insolvent, 
 or where his credit is ])ulilicly im]ieached hefore the hill falls due. In 
 this case, the holder may cause a notary to demand hetter security, and 
 on its heing refused the hill may he protested, and no notice of protest 
 may he sent to an antecedent party : />///(< on Bills, 202. A hill may 
 he protested for lietter security hefore the day of payment : Mendez v. 
 Cavreroon, 1 \A. itaym. 74.3. After such protest for hetter security there 
 may lie an acceptance for honor : Ex jiai'le Wackerlia/li, 5 V'es. 574. Hut 
 after such a protest the hill must he only prestnted for payment at matu- 
 rity in order to preserve the liolder's rights against all proper parties. 
 
 " The latter part of this clause in the English Act, reads thus, after 
 the word returned; — "and on the day of its return, if received during 
 business hours, and if not received during husiness hours, then not later 
 than the next husiness day."" As to presentment through the post-othee. 
 
THE BILLS OF KXCHANOK ACT. 
 
 181) 
 
 see H. 4."), siih-a. 7, •iinl note tliureto. As ti) hiwiiiuas aiul iioiijuriiliciil SeC- 51- 
 tliiys, Hi'u fs. 14 iiiiil IM. 
 
 " This uliiusL- is t:iUiMi from 14 & 1.') Vic. c. 91, s. 1, C. S. l'. C. c. 4'-' s. 
 15, ami H. >. C. c. I'JO, s. '22. An indoisoe of a note ii.iy.ililf at a liaiik, 
 liaving takou tluM'c on the last ilay of .i,'rac(', arrested clefi'iulant at live 
 o'elock on tiie same day : Held, that under 14 iV I.') \'ie. o. \)i. ^■. I, he 
 was entitlecl to sne at any time after three o'eloik. iiad tiie note lieen 
 payalile u'enerally ; Sinr/nir v. I!uli<nn, Hi l'. ( '. (,•. iJ. 'Jll. Immediate 
 notice of disiionor for non-paynient at eleven o'elo.k, after the aeceiitnr 
 lias refnsed jiayment, is Ljood. and tlie law does not impose tlie duty 
 of en(|niring ayain hefoie a later honr of the day : E.c jinrtf Moliiit, ID 
 Ves. '210. 
 
 ^ A protest is properly speakinu', a aolenm declaration on liehalf of the 
 holder. ai,'ainst any loss to be sustained by the noii-acce]>tanee or by the 
 non-payment of the bill, as the case may be ; thouj,'li in a popular sense it 
 includis all the steps after the dishonor of negotialile pajier, necessary to 
 charge a party to it. It is iiighly important that a copy of the bill 
 .•should be preti.veil to all protests, with thcMndorscments thereon n rljii/ini, 
 whenever practicable, and that the reasons given by the drawee for non- 
 payment, should al;50 be stated on the pi'otest. 'I'lir protest is reipiired 
 to be ina<lc out and drawn up liy a notary pid>lii-, if there be one in or near 
 the plai'e, wiien tin: liill is payable or the acceptance is to be made. It 
 .should be made out and drawn up in the turm reipijred by thi' law or 
 nsage of tlu' place where it is mailc. .So essenti.d is the proilucton of a 
 protest for noli accej)tanci', that it cannot l)e snp|ilied by mere i)roof of 
 noting the bill for iioii-aecept.ince, ,in<l a subsnpu'nt protist for non-pay- 
 mint ; Sfori/ mi IS'iU^, s. '27b. Tlu.' French C'oiic contains nmre furmal 
 directions as to pi'otcst. Where there is no notary, a justice of the peace 
 may [irotest the bill nr note, uuijcr s. IK!. Sec the forms for jirotests in 
 the lirst schedule to the Act ; and tlu> tarill(if fees, note 4, s. <);{, p. '270. 
 
 " This clause pi'ovides for the "accidental" detention of a l)ill, — a pro- 
 viaion which is not in the Knglish Act. liut such cUtentiiui wouhl, it i.s 
 pi- Mimed, under the succeeding' el.iuse. be an excuse for delay caused l)y 
 '■ '.v.imstances beyond the contml df the liMM,r. 
 
 *'' It may l)e a tpiestiou whether this clause covi'rs the ease pi'ovidi^d for 
 ill, s, 4.S, wliich exiuscs non-notice in the case of a bill dishonored l>y non- 
 acceptance, l)ut which is subseipieiilly accepted, and cumes into the hands 
 of a "holder iu tlue course." See notes to s. 40 and to s. oO. 
 
 '• This clause is a re-enactment of U. S. (,'. c. i'2'i, s. 11 ; and has been 
 law in Ontario and (Quebec since 1S.")0. 
 
 *%*Z. When IK) i)Iaco of payment is specifieil in tlie Ijil' or i/nwiitym 
 accoi)t{inco, presentment tor payment is not nece.s.sary m iinp.Act.s.v? 
 
 order to render the acceptor liable : 1 
 
T^^ 
 
 190 
 
 THE BILLS (►F EXCHANGE ACT. 
 
 lUl'Ut. 
 
 Sec- 52. '2. When a place of ])ayiiiont is speciHud in tlio bill or ac- 
 Anu, piHc ccptnnce, tlie acceptor, in tlic absence of an ex|)ress stipula- 
 tion to that enect, is nut dischar^'eu by the omission to 
 present the bill fpr pjiyment on the day that it matures, 
 but if any suit or action be instituted thereon before pre- 
 sentation the costs thereof shall be in the discretion of the 
 court : - 
 
 1'iii 
 
 or"mj't'iir' •^- Ti^ order to render the acceptor of a bill liable, it is 
 iiecesHary. j^^^^ ncccssary to protcst it, or that notice of dishonor should 
 be given to him : 3 
 
 KuymTn"' •*• Where the holder of a bill presents it for payment, 
 he shall exhibit the bill to tlie person from whom he 
 demanils payment, and when a bill is j)aid the holder shall 
 forthwith deliver it up to the party paying it. 4 
 
 ' Tliis differs slightly from tlic English Act whiih reads : " When a 
 hill is accepted generally, presentment," &c. As to what is a general 
 acceptance of a hill, see s. 19 and the notes thereto. The reason why it 
 is not neces.sary to ])rescnt tlie bill to the acceptor in order to render him 
 liable, would seem to be. (1) his acceptance of the bill, without specify- 
 ing a jilace of payment, is a contract to pay an unconditional order 
 for a sum certain at the time agreed ui)on ; and ('_') his duty, by tlie com- 
 mon law, is to seek out his creditor if he be in the country, and tender 
 him the money he has agre<'d to pay : Co. Lilt. s. 340. The person to be 
 discliar;:ed is bound to do the n^t which is to discharge him, anil not the 
 other party : Cmiilr;/ v. Hilldi;/, '2 M. & S. I'JO. And so where a party 
 guarantees the jiayment of a note, he is liabh; on such guarantee, if the 
 note is dishonored when due ; and presentment of the note to him is not 
 necessary : Walton v. Mnaatll, \',i M. & \V. 452. This clause does not 
 apply to promissory notes. See note 5 to s. 4o, and note 1 to s. 86. 
 
 ^ This provides for the converse of the first clause, and is an improve- 
 ment on the phraseology of the English Act. The "express stipulation,"' 
 may mean the insertion of the old form of words " only and not other- 
 wise or elsewhere ; and may make presentment for payment a condition 
 precedent to the acceptor's liability. Thus where an acceptor of a bill, or 
 maker of a note, makes the bill or note payal)le at a specified bank or 
 otlice, and adds such words as " only and not elsewhere," the bolder must 
 present the bill or note on the day it matures, at the place speciHed 
 thereon, b'jfore he can commence an action against the acceptor or maker. 
 And if such action be brought before such due presentment, the costs of 
 the action are, by the latter part of the clause (which is not in the 
 
THE lULI.S W KWAWSV.E ACT. 
 
 I!)l 
 
 English Act), in tlie tli.sorutiou of tliu C'durt. And it may >)c a (nioHtion Scc 52- 
 whetlier tlie jirovision of tlie law, wliuiclty n olu'ijiiu is niatlf it liill of ' ' 
 
 fxcliiingu payal)lo on ileniaml, may not import into tlit; case of a dcinand 
 notu, tlie penalty which attaciies to the non-presentment of a eheiiue 
 within a rea«onaI>le time, by which, when «ncli non-presentment nas 
 ilanmilied the position of the drawer of the eluijue, snch drawer is dis- 
 charged. If presentment be not made at a designated place on the matu- 
 rity of the hill, the accei)tor will still, according to the general law, 
 remain liable to pay the same, whenever iifterwards payment shall be 
 tieinanded there ; at le:'.it if he hab not sustained any loss ur injury by tiie 
 <lclay : Story on liill", s. .^.ly. Hut in tlie './nitcd States, if the acceptor 
 have t'linds at the designated place, and tiie l)aiik has since failed, the 
 acceptor will be discharged. Ibiil. s. .'$.")(>. An acceptance to pay at a banker's 
 must be tendered for payment within the same time that a note must : 
 Ilish',/) w Chilly, 2 Stra. 1194; a. p. Sirl, v. X'>rloii,'2 Mo. & 1!. 4(ll. 
 lUit see Midlic/c v. li!a<lakii'<cii , !) Moore, 1'. C. 70. There is a similar 
 phrase : " omission to present the no/c for payment on the day that it 
 matures,"' in s, S(), applicalile to promissory notes made payable at a par- 
 ticular place. 
 
 Illustkations. 
 
 Where a bill is accepted generally, presentment need not be alleged or 
 proved, in order to bind the acceptor : Fui/ltv. Jiinl, U l». & (.', oHJ. 
 
 Tlie defendants were makers of a joint and several promissory note 
 with one H., as sureties for him, payable to the |il;iintdl'; -Held, that 
 on default of payment at maturity, their liability to pay became absolute ; 
 and that it was no detence for them that the jilaiiitill neglected to present 
 the note for payment, i r give notice (jf non-payment by 11., w Ikj snbse- 
 cpiently had become insolvent: Wiitou v. lirown, (> .-\i)p. R. ST. 
 
 Where a bill is drawn payabL generally, the iioMer is not bound to 
 take an aecept.ince, by the acceptor, payaljle at a particular plarc and not 
 elsewhere, because such an acce])tance narrows the general liability (jf 
 the acceptor : Uaininon v. Schmoll, o Taunt. .'544. 
 
 The maker of a promissory note is not entitled to notice of dishonor : 
 /'<((;-,st V. Pttnberthy, 3 Camp. '261. 
 
 ■' This is in harmony with the first part of s. ."il, as to inland bills, 
 except as to bills payable in the I'rovince of <^>uebec. See notea to ss. ."jI 
 and 86. 
 
 ■* Presentment for payment, must mean presentment according to mer- 
 cantile usage. The document itself must be present, though not the 
 liolder, so as to enable the person presenting it to give it up, if paid. It 
 must be such a presentment as would be sulhcient to charge indorseis or 
 otiier persons collaterally liable on the bill : (,'rilliii v. Wilht'ihy, L. K. 
 ;{ ^i. B. 761). The custom of merchants is, that tiie holder shall jiresent 
 the bill at its maturity, ileiiiand payment, and upon receipt of the amount, 
 deliver up the bill : Ilanmrd v. Nolniisoit, 7 B. & C. DO. See further, 
 s. 59. 
 
I!)2 
 
 THE MILLS OF KXt'HANOK ACT. 
 
 FuniU in 
 hum Is uf 
 (Iraw.r. 
 
 Sec. ^ LlahlllfU's ,>/ Parties. 
 
 an. A 1) II, of itself, does not operate as an assinnnunt 
 of fnivls in 'Jie linmls of the drawee availalile for tlie l>ay- 
 {",','.' Art'.' wf inent tliereof, ami the drawee of a l»ill who does iiotaeee|.t 
 ' '^ ■"'■ as re(|iiiied hy this Act is not lialtle on the instrmiient. ' 
 
 ' It Wiis fi)riii('rly liclil tlint a liill or clKMiut' whm an .'i|i|in)|iriiitii>ii of so 
 nnu'h inoiii'V in the liands of tlu- lianker on whom it was drawn, " In one 
 res|ioi't a I'licijiic dili'iiH from a iiill of (.■xciiangt', for it is in tlic natiiri" ot 
 an appropri.'ition oi' nioiu y in tln' l):niki'r".s iiands, foi' thf imriio^c of di^- 
 (•liar.L.'ini,' a lialiility of a dra\\fr tn a tliird pcr.son :" /'< /• llyk-s. •!., in A" //■ 
 V. lldiid, (i liir. .\. ,*>. \'2'>\. And this view si'inis to have bci'ii sustained 
 hy till' case of ///// V. Uoi/'/s, L. |!. S K,,. -Jll-J, wiicrc tli.' ar<ci4or uf a 
 liilj, hc'fiirc the liiil fell iliic, paid thf .amount into ids lianivi is, iu orilcr X'< 
 meet it at matiiiity. lit' died tiic ilay tlii' l)iil matiircd, ,ind tlic liaidiiis 
 refused i)aynii'iit ; lint Sir li. Malins, \'. (',, said : " It w.is tlic duty <ii 
 till! liaiikfi's to have apiirojniatccl the iimouiit in iiaymciit of the liil! • and 
 ill my o|iinion, they \\iie wionj^doera in not paying the hill, luit iiermil 
 
 tinj^ it to 111' dish 
 
 (1. ' Siihsecpiently in 1S74, when tlii' ipiistion imu 
 
 ip direetly. Sir (1. .lesHel, M. K., dissented from A'. 
 
 , liKtril, iiud eam> 
 
 to a ditl'ereiit opinion and said: "Aeheipie is eie.nly not an assii;unuiit 
 of money in the hands of ;i lianker; it is a hill ot exeliangi! payalile ;it ii 
 banker's. The lianker is hound liy his eoutraet with his eustonier t<i 
 honol' his ehiMiue when he has sullicient assets in his hands; if he does imt 
 fulfill his eoutraet, le is liable to an action hy the drawer, in which lusivy 
 dainiiyes may he recovered, if the drawer's credit has been io jiircd :" Ihj. 
 kiiiKOii V. Fof'i/ir, L. it. H) Va\. 74. 'I'his ease has been followed in Srliraf'/i r 
 V. Cciitrul liatik of IaiikUiii.'AA L. T. I!ep. T.'JJ. 'i'lie result estalilislied liy 
 the later cases is, that there is no privity of contract between tin ilrawee oi 
 a bill orcheipie, and the holder of such bill or checjue, until their relatioii>; 
 are chauLji^d by the drawee's aceeptaiiee. lint [nivity may lie crcatecl by 
 an agreement or representation, external to the bill or che(]iie. by w hich 
 a liability may be created, which can be enforced by the courts. >>or is 
 a letter of credit an eijuitable assignment, or speeitic appropriation, ot 
 moneys in the hands of the party to whom it is addressed. It is siniiil\ 
 a statement by a banker that he has openei! a credit, under instruct 
 in favor of a particular person : Mori/itii 
 43-2. 
 
 Illcstration 
 
 Where A. in writing authorized 
 
 V. La A' 
 
 loll.- 
 
 J. K. 7 H. I- 
 
 <lraw a bill on him, which, he 
 
 agreed to ac<;ept ; and a bank on the representation of such writiiii 
 advances the amount to J}, on the bill so drawn, there is a clear e(|uity i 
 the Court to order A. to accept the bill, and if past due at the time of tip 
 action, to order him to pay it : Hank o/ Monttcal \. Thomax, 10 Out. J! 
 605. See further cases on pp. 80, 81. 
 
riiK i;ii.i,s OK i;\(ii.\N(ii-; \ry, 
 
 l!>: 
 
 \\'lii'i'i' A. i'()iisi>j;ii«'il iMiU'i'f tn M. \ (' 
 
 .1 .1 
 
 lew liilln nil t 
 
 IIk'I 
 
 II, Wlllrh 
 
 Sec 53 
 
 they lii'ilincil to .icrt'iit. iiml tlicii « roti' tn S. ti> ifuli/i tlic icillrc ami — — 
 
 lllllnl' till' lulls, .siillll' lit Willi'll Wcl'i^ ill 
 
 s ii tllll^^. an 
 
 ll l\ IIIU llu 
 
 tilK'il 
 
 i:. til that cllrit : lli'M, tliiit M. Iia'l an i(|iiitalili; uliai^c nii ilu; |iiiniiila 
 
 >f th 
 
 >ll. 
 
 Itmik' 
 
 |//i. 
 
 t ll. I>. ~S{\ 
 
 54 
 
 11' Mcccptor nf ii liill, liy acct'jitiny- it — 
 
 {(1) lMii,'iVL;"es tli.it he will \m\ it aci'oiiliiiL; t'> ''i<' ti'imr 
 
 on 
 
 lis ilCcr|itMMC 
 
 f'l'litr.ict of 
 
 llrii'(i|<ir. 
 
 I 111 I . A(l,<.:i| 
 IimI Act, 
 »■ :.J,v I'JI. 
 
 Kll;.'IIKi>il 
 to |i|l.\. 
 
 (I) 'I 
 
 s jirccliKlcil tVoin (icMyiii'4 (o a IiuMit in • iiic fdiirsc — K»t..|.|.uis 
 
 Ik; t'Xlstt'iict; ot the (iiiiwci 
 
 ,1. 
 
 tlic !4 
 
 ('liiiim'iic.ss (I 
 
 f lii.^ 
 
 .si:;"ii!itiiri', uinl Ins caj 
 
 acitv and aiitlioritv to ilraw flic I. ill ; - 
 
 ['!) Ill tilt cus(> oi" a liill |ijiyal)lt' to ilia\vi'r'> (ndcr, tlic 
 thou i'a|>acity of tlio drawer to indnrsc, luit not tlir 
 ^•tiiuiini'ncss or valiility of his in<lorsfnu'nt ; 
 
 (•S) In the case of a liill pa^'iihlc to the order ul" a tliird 
 por,s(jn, the existence of the payee and his then cajiaeity to 
 indorse, Imt not the ^I'liuiiieness or validity of his indorse- 
 ment. •'* 
 
 ' .\li ai;c(>iitaiic(' ;uliiiits the t,'ciutiiuMi('ss nf tlic sii,'lwitillH' (if tlii' drawer, 
 ami Ills ll•^' ll riiiiqirtciiir or itapai'lty tn ilr.iu the liill. It iiii|ili(-; .i iini- 
 tr.ict on tin: part of the arcrptur witli tl 
 
 11' piyii' 111' 
 
 awliil iii'li 
 
 tlu'll'lif. 
 
 to ]i.iy tlu' 
 
 i.llioi 
 
 ml (ll tlic liill w lieu it liccdiiics iliio, and w lictlur pru-scutcil 
 
 or not, acciirdiii!' to tli',' tciK 
 
 til 
 
 it.iiice. 
 
 Tl 
 
 •Ih'ct (it iici 
 
 'pt- 
 
 ing a liill, or inaUiiii; a nntc, is an alisolnti' ('(iiitr.ict on tlic p.ut of tlie 
 iioccptiir of tlic one, or the maker of tlio otlicr, to [lay tlu' piyrc or order, 
 or licarer, as tlio iii.struineiit may rci(iiire :" /j///( >■ on Hills, 2. 'I'lic acceptur 
 of a liill knows that, liy his uecept.'incc, he dies an act w I 
 
 will 
 
 Av 
 
 him liable to imleinniiy ;iny iiidor.scr of it. \\\\i> iii.iy ,il tcrward.s pay it 
 
 l)n 
 
 I'Vlll (till 
 
 I S'inlli (IVtA ■■(/>'//(/.•, (i .\pp. C'a.s. I. 'I'hi.s clause docs 
 
 not apply to [iroiuis.soi'y notes, a.s s, 87 prcsurihcs thu terms of the contract 
 of the maker of a note. 
 
 ■•'This clause may have to be taken with smnc ipialiticatioii. f(ir it docs 
 not pretend to define the (.'ontract liabilitiis of the other parties to a 
 bill. As the clause I'eads, the acceptor of a bill is " prcchided, " /. c., abso- 
 lutely esto[)ped, from deiiyiny ixa against a holder in due coiir.-e, four faints 
 rc.spci^tiii^ the bill : (1) the existence of the drawer ; ("Jlthc gcniiiiicncss of 
 his sii,'n iture ; (Ii) his capacity', and (4) liis authority, to diaw the bill. 
 |{y ss. .") and 7, the effect of a name on a bill being that of a fictitious or 
 vDii-rxisiii,!/ person, is iletiued. By s. 24, a forged or unauthori/e.l siijna- 
 
r-^pp 
 
 I!I4 
 
 TIIK llll.I.S OF K.\(II.VN<;K act. 
 
 Hl» 
 
 'Sec,, 54. Iiii'i to II liill \n " wliitlly iiiii|nrutive," iml im ri^lit " oiiii Im" iicciiiinul 
 
 ■ tlirciimli iir uinlcr lli.il si;,'ii,itiiif. " My s. '.'■_', Wiiiil nf (■(/>(«■•(/// to I'lmtiact, 
 
 imaiis I'ri'i'dorii finiii lialiilily. I>y s. '_'.'>, tlic Hi^^'ii.itii't' liy |ii'<>uuriitiiiii 
 iijpci .iti'h iis 11 iKiliii; (»f 11 litriiti'il (ami it may Ik- uf a want nl) iiiilh'iriti/ 
 ill an iigi'iit. lint in l'lll|l)la^i/.ill^ tlu^ tlint' imli fiasaldc ijUiililit's <il' it 
 lull III' uxt,'liungi', or a jiromiMMiiry noti', given in the; iiitniiliu'tinii, aiul 
 in iinltT ti» ^ivu iilmnliitf xciMirity iiml (initictidii to ii "holder in due 
 eoiii'se," and to nHxiiru to liilU and notes a ready eii'(;iil:ition and exteii- 
 wive ert'ilit an part of the eoniiiiereial etirrciiey of the country, the weveial 
 provisions of the Aet ahuve cphited, are nej^ativcd au to their praeti(:il 
 ellei't, so as to maintain the eredit ami eonlidenee due to the iii.sti'nmeiit ; 
 iiiakiii;^ it ei|iiivaleiit to and as the lepreseiitativt! of money, in tli<^ hands 
 of the [lersoii Mpceially favored iiinl pi'ott eted liy tlii' Aet, a " liiddi r in 
 diuf I'diirse." 'I'lins in the e i.sit of a hill drawn in tlu^ iiaiiii' of an exi^l 
 iiig person, hut whose sij^'iiature is forged, tin; ai'eeptor, who aeeepts in 
 igiioraiu'e of the forgery, is, as to siii'lr holder, estopped from alleging that 
 the ilrawer's simiature is forged ; and that estopiifl ciiirilly prceliidi.'S 
 him from denying the other three facts : liie (1) existmiee, ami ("J) e,i|)a- 
 eity, and if signed /n r /inn'., the (H) authority of the agent, of such 
 drawer. Kor an acceptor is liouiid to know the signature! of his drawer, 
 and " that the hill drawn upon him was tin- <lrawer's hand :" /'<;• Lnnl 
 Mansliidd, ('. J., in Priti v. X'nl 'i I'liiir. I.'i.")t ; s. p, l,ini<litii mid Xmih 
 \\'<-^lifii liniik V. \\'< III I'll rlh, ') l']\. I). !)(i. Whatever iiegle(!t there is in 
 such a case as that given above, the law impiiti's it to the ae 'eptor; and he 
 is therefore drawn within the penalty of the eipiitahle doctrine, that where 
 one of two innocent persons must sulFer liy the fraud of a third party, th.it 
 one who was IhuiiiiI to do, or avoid, an a';t, or he diligent, or who, t'loiigh 
 innocently, enahled the fraud to he perpetratetl on the other, must hear 
 the loss. And so the acceptor of such a IjIU cannot set up any denial of the 
 four facts sp.eilied in this clause, as a clischarge of his liahility to a lioi.afnlr 
 holiKr for value. Kor the same reasons, where a hill is drawn in the name 
 of "a tictitioiis or lloll■exi^tiMg (lerson," and [i.-iyahle to the order of the 
 drawer, the acceptor is similarily estopped as against ii holdei' in due 
 course ; and he is considered as undertaking to pay to tin; ordtM' of the 
 person who has signed as drawer ; t'oapcr v. Miyi'i\ 10 \^. & C'. 4G'J. See 
 al.-so IS, I limit V. Duel,; 11 M. & \V. 'J^l ; Fort v. Mutch,. r, Kiley (S. C. ) 
 •J4S, and Vtojliaiio v. liuuk «/ EiKjIaml, •_'.'{ (^). 15. I). li4.S. 
 
 •'■The distinction between "capacity" and "authority " is pointed out 
 in note 2 to s. '11. (.'apacity in a person to draw a bill (other than those 
 referred to in s. I'l), necessarily includes capacity to indorse ; and ))y s. 
 '11, persons having no capacity or power to incur liability on a bill, are 
 authorized to imlorse bills. This clause does not use the expression 
 "authority,'' for anthority to draw a bill as agent for anothei, does \v<x 
 necessarily include an authority to indor.se on behalf ot the principal : 
 /iuliiiiiuii v. yarrow, 7 Taunt. 450. Hut while the clause enables a holder 
 in due course to have oue fact, the capacity of the indorser, conclusively 
 
THK im.l.S OF KX('IIAN(JK ACT. 
 
 19.1 
 
 proHiiinuil III liis ritvcn-, li.' Ints to < .tt.ililisli t\\-i> otlicr fiu-tM ii^niiiHt the 8ec- 54- 
 ncceptdr liolinr lie i.iii nlitaiii ii venliot, vi/., (I) the gL'iiuim'iifHM, iiiul Ci) — •-"" 
 (h*' viiliilily, iif the iii<li>i'si'iiiciit. If tlic iiiilcirsciiu-iit ix in tlic iiiiinc of a 
 lii'titioiiN, or iiiiti't'xistiii}^ |ifr.iuii, tlic liil! is |i,iy!ililt.' to iHnrcr i-. 7). If 
 till' iiiuiii' of tlu' ilniwor is for^iMl, imil tin' liill ix ]iiiyiklili' to the onlcr of 
 tin; ili'.iwi'i, tilt' lioliliT iiiiy ^'ivi' I'viilt'iK'c to show tli.it tlir >.i'_'ii;ktuii's of 
 till' Mii|i|i(i.sci| ili'.'iwi'i' to tlio hill, anil to the tirst iiiiloi'scinciit, iki'c in tiie 
 Haiiic haiiilwiitiii)^' : ('nn/ii r v. Mi i/i r, 10 i>. iV C. 4<i<,). Ihit ii lirciik in t)iu 
 lioldcr's c'liiiiii ol title to till' hill, may ln' hIiowii hy a want of aiithmity in 
 the iiiTsoii imtually writing; the iinloi'Mi'iiiciit on Mu.' hill, sui'li iis the foij,'riy 
 of tlio Hij,'iiatiiro of the iiulorscr, or tin' liiiiitation, or ahscncc, of authority 
 in the ]turH(m iiHHiiiiiiii>; to sign uh aj,'riit An «t('('i)tor of ii hill is not 
 liahlt- to any one who I'laims a title to the hill, ii)ion a foiKeil inilorsiiiiriit of 
 the payee (alli.L;eil iiiilorHei) of the hill ; for he is not esto|i|ieil fioiii show- 
 in;.' that the pei'soii ileniamliii;,' paynieiit from iiiiii, has mt title to the hill. 
 Ihit he is estoppi'il froiii ileiiyin;; to n Imliler in iliie einii'se the ;;iniii!ie- 
 ness of the .signature of the drawer of a hill, evn iilthoiii,'li sueli sii^'iiatiirt? 
 he ii forgery: /li/dii v. Ilniik of M mil mi I, I'J Out. \\. .'tM, It .\pp. I!. 
 
 ii.%. Till" (Iriiwer of a lull, liy dniw'mo; it- 
 
 Ci'iitrupt of 
 (iriiwcr. 
 Iinji. A('t,*i.ftii 
 
 (d) l'Jii,fa^('s that on dm' |»ft'.Sfntinciit it .shall ho a(.'ci'|(ti'(l ;t')".vi2i' ^' 
 
 and paid accuidiiig to its tenor, uikI that if it is dishonoicMl 
 lir will ('onipt-'iisate the; huldrv of any indoiscr who is coni- 
 jji'llccl to pay it, ' provided that the retpiisitc proceeil inters 
 nil dishonor arc did>' taken ;- 
 
 {!>) Is proclud(Ml IVoMi denyinijf to a holder in due coiu'sc K-toppi-is. 
 the existence of the payee and his then cai)acity to 
 indorse : •' 
 
 t^iintraet nl 
 inilornvr. 
 
 2. The indorser of a hill, hy indorsiiio- it — 
 
 [a) Engages that undue presentment it shall he accepted 
 and paid according to its tenor, and that if it is dishonored 
 lie will compensate the holder or a suhsecpient indorser 
 who is compelled to pay it, provided that the re(piisite 
 jtiocecdings on dishonor are duly taken ;^ 
 
 {})) Is precluded from denying to a holder in duo coui'.so Kstoi.i«!.t 
 the genuineness and regidarity in all respects of the 
 <lravver's signature and all previous indorsements; 
 
196 
 
 TiiK i'.ii.i.s or i;x('iiAN(;i'; act. 
 
 Sec 55. ((>) Ts iiiTcludcd from dciivinL:" to liis iunniMlinto <))■ n 
 .snl»sc(|iiciit indorsee,' tluit tin hill was, at the time of lii-; 
 iiidoi'.semeiit, a valid and suhsi.stiiij,^ liill, and that he hail 
 tiion a ijoud title thereto. •"' 
 
 ' 'I'lu; ci)iitriii:t i)f tli<.' ilniwor is ail iindc'ftnkiiij,' tliiit the acceptor sliiill 
 pay tlic liill lit iiiatiiiitN. All the parties to the liiii i>iiliioct to the pro- 
 visioil.s ill ss. .'i. 7, '2-, ami -Jl) are lialile to rlie iK.ldn-. TIm' ai're|itol' of a 
 bill iw tile priiu-ip.il delitor : tlie drawer i.s .seeoinlarily liahle, ami tilt; iiulor- 
 sor.s aiu .sureties to the holder, wlio i . the creditor of tlie [)riiiei|ial delitor. 
 lint as the law-niercliaiit hasyiven tcehnieal titles to the eoiitraetiii<,' jiartiis 
 to a liill of exchange, dillereiit from tlie titles ordinarily iisiil in other con 
 tracts, the relations of the several p.iitics to the hill iiii'r ■•« , may It 
 illustrated hy tin; ahove analogy. The drawer, therefore, on the dishoiuji- 
 of the liill, is 1 1 ) lialilc to the holder : Imt in the event of the holder com- 
 pelling; an iniloiscr to [lay liini, then the drawer liecoincs (J) liaiile to such 
 indorscr. 
 
 - As to dishonor ot a hill, and the ve(|uisite proceeding's to lie taken liy 
 a holder on the dishoiKir of sucli hill, see the sections under the title, 
 dun ml Dulits of till' II ilihr, ss. .'!".) to .VJ. 
 
 il.l.rSTHAIloN:.. 
 
 Tin contract \\hich a pcr.«on transfcriiiL; for value the property in a 
 hill, ni.ikcs with the transfene is, th.it he warrants that the hill, liavinu 
 heeii aicc|it( d, sli.ill on hein^' ]ircsented at the time it heconies dm . hi 
 paid : th.it is, he enyayes as surety for the due perfoi luiince li\ tin' accep- 
 tor of the ohligation which tlie latter takes upon himself hy the acct p 
 tance : Ii'iiiii/ik/Ii y. Ori rtinitm, \j. H. \U (). 15. ")'_'."). 
 
 \\ here the ii.ivee iiidor'scd a note to A. u]ion nil usiiroiis considi'r.'ition, 
 and A. afterwards failed to recover :iL,'ainst the maker upon the jiniund of 
 usury; Ht Id, that such payee could recover a;.';iinst tlie draw er, ,ind it 
 V as not necessary to prove a ic-indorsement hy the usurer A. to tli. 
 ]>ayee : lliilicil' .. Siai'ni, 'V,\y. V . C .Stilj. 
 
 ' The priiici|iles of cipiity are not less apjilicahlc to cases in which 
 tliere is, strictly s))e;ikinu'. no (;ontraet of sul■cty^hip, hut in which there 
 is a luim.iry and sc<(>iid.ii\' liahility of two pcisons for one and the saiin 
 debt, hy viitue of w liicli if it is to he paid hy tlu^ person wlni is not 
 primarily liahle. he has a iii,dit of leiniluirscnn'iit or indemnity, frnin tin 
 other. To this class of cases, the rii^hts of an indorscr au'ainstaii acceptiT 
 of a hill may he most jiropei'ly referred : Diiiii-nn v, Xnit/i ,i- Soiilh ]Vil' < 
 /)'((;(/r, (■> App. ('as. I,'{. This clau.su may h(! conipared with clause (/(| n- 
 3. fit. The drawer is hy this claiLse, estopjjed from dciiyiiiL; two facts in 
 connection with the payee, {\) his existence; (2) his c.ipacity to indorse, 
 The acceptor of a hill payable to A., or order, intimates to all persons hy 
 his aeeeptanee, that he considers A, eapalile of n'aking an order, or ,in 
 indorsement, sulliciciit to transfer the projicrty in the bill, See Draijti'H 
 V. /Wc,-.M!. & C. 'JDU. 
 
TIIK I5II,I,S OK KXCHANOK ACT. 
 
 1!)7 
 
 iiicilinto or a 
 
 ■ time 111' lii-^ 
 
 tli;it lie liad 
 
 Ho acceptor sliall 
 l.jcct to tlic lH'i- 
 liu ;ici-c|)tiir (it ii 
 
 V; Jlllll till' \iu\"V 
 
 |)iiiiciiial ilclitor. 
 iitiMctiiiu parties 
 yid in other cmi- 
 iiiii r •^•( , may lie 
 , on the ilishouiir 
 ■ tla^ liolcK'r coni- 
 (_') lialile to .such 
 
 ' Siihjeet to the ohsi rvatlDii^; in the several notes to ss. l(i, "J't aml'iil, as SeC. 55- 
 til inilorsenients liniit.ini' or neL,'ativing the liahility of an iiuhirser, the ' 
 
 contract ol an in'lorser with ^hc hohler, is an engagement liy him that if 
 thrdrauee or acceptor shall not pay the hill at maturity, he, the inilorser, 
 will on line notice, pay thi^ liolihr the snm which the di'awee or acceptor 
 onght to have paiil, together with >iich ilam iges as the law prcserihes oi- 
 allows as in inilemnity tor the ilislionor of the hill. 'i"he lialiility of an 
 inilorser to the hoMer is. hy the law-nic'rchuit, coniiitional, ami "only 
 srcondary ; ' hut w Inii the conilitions rcijiiireil hy that hiw are fullilleil, it 
 liccomes ahsoluie, ami is that of a principl ; and the indorser's right, if 
 he 'lays the holder, to recover over ag.iinst the acceptor, is not founded 
 on acv agre'cniciit hetwcen him and the ,iccci-tor, (whoisa.s likely as not to 
 1) • a stranger, without any eoniuiunication with hiui hefore the indorse- 
 ment), luit is .-i right estahlished liy till' same law : hiiurtni v. Xnrili mul 
 Sdiilh Wdlii /»'//(/.■,(! .\ pp. (".IS. l.'j. The words, " accepted .iiid ]i:ud accord- 
 ing to its tenor," luein the tenor of tnc contract of accept.uice and pay- 
 ment ,it the tim • lit t he imlors'ment, .■iiid not its icnor at the time the hill 
 wasdrae-n. nor its tenor ii altered after suili indoi'-icnient. 
 
 ;s to he taken hy 
 under the title, 
 
 lie property in a 
 
 the lull, hiiviiig 
 
 htcomcs dut . he 
 
 h\ the aceej)- 
 
 I hy the iiccep- 
 
 s coiisitleratiiiii, 
 in the griumil "f 
 haw er, and it 
 -urer A. to the 
 
 cases in whicli 
 
 ill which there 
 
 ne and the same 
 
 I'soii who is nut 
 
 mnity, from the 
 
 liiist an acceptor 
 
 /) ,1- Soiilh ir-lA-i 
 
 ith clause (h) O' 
 
 ing two facts in 
 
 icity to iiidm-se. 
 
 o all [lersoiis liy 
 
 an order, or an 
 
 , See JJrayh'ii 
 
 Il.I.r.slIJATloNS. 
 
 The ii 'orser of ;i hill is estopptid from d 'uying eitlu'i' tlii^ signature of 
 th • drawer, or her capacity (hellig a fern ■ covert in this e isei. to draw the 
 lull. He is in the cap.icity of ii new dr.iw i r : /.'i/-- \. /Ji.cl , 7 L'. (.'. ■,'. I!. 
 
 11 t. I'.Ut scr /f'Cl^roill' V. ('(I'Inli, l(i r. (', (.1. l;, \\S. 
 
 Ill an action hy the holder against the last indoi'sei- of .i note, it is 
 no defence that the n.imes of the maker and of the prmr indoisers were 
 forged ; K tst n;,,'! v. IT- >/' //, ti V. C. < ). .S. ."),'). 
 
 Ill an .action against I., ami .\. as indorsers of .a note payahle to the 
 ordi.r of L. ; -Held, that .\. must he taken to he the immediate indor.seo 
 ol L. , and could not deny L.'s ind ir.^enient • <lrUJln v Lnlini' r, l.'{ IJ. ( ', 
 <,». II. 1S7. 
 
 Tiie diawce of a hill may ;ic. pt or p.iy it under protest, for the honor 
 of the drawer oi' indorser, hut if he discui'iits it hcfiuc inUiirity, he 
 ■<t iiids ill the |iosition of an iiulorsi-e, as against all prior p.irties ; Sim/n 
 V. /I'oxv. .«() ['a. St. ISC. 
 
 The liahility of ;iii indorser 'o hi^ iiiinie ii.ite indors.e arises out of ;i 
 c uitract hetwei'il them ; .ami this eoiuiaet do s not eoiisi>t in the w ritinL', 
 pppularly c ille I an indorsement, Init rises oiii oi the wrilten indorsement 
 it-eif, the delivery of the hill to tlu' indorsee, ami the intention with 
 which the delivery was made and aect'ptcd, as (jviileneed hy the spoken 
 or writt>!n words lU' the piitics, ,ind the circi. instances, such .is the usage 
 of tlw [ilace, and tlu' course of dealing het- 'n the parties : ( 'ii-<l ri'i'it v. 
 l:<if/iili,;/. 10 .Moore p. (.". ('. 'M. 
 
 If. for the purpiise of raisini; fluids, one i . two Joint owners of a vessel 
 ilr.iws a hill, and the other iiuloMes it, neither is li.ihle to the other on 
 the hill : Cn-iliitn- v. Ch nhnid, !» I'ick. (Mass ) WMt. 
 
 \\ hell a promissory note is made p ly.ihle to two p.ayces. .ind one trans- 
 fers his interest in it to the otlic', hi' i .Liinot he charged .is an indorser 
 hy the other payee : /'Wi./' v. Hill, .'{(i N. 11. .V.M. 
 
ill 11 III I J 'I' 
 
 ?98 
 
 THE BILLS OV KXCHANGE ACT. 
 
 Sec 55. 
 
 straiijrir hc- 
 rdincs liahlo 
 :is iiiilorM-r. 
 
 If ail iiidorsoment is writti'U with an iJidcrstandinf,' that thu indorsing 
 was not to j,'ive cri'ilit to tiie note, nor for vahic, hnt only to comply \\ itli 
 tiic forms of tiio lioiclur's l)nsiiiesH as anctiont't'is, thu indorsur is not 
 lialilc : CorrvniH v. llodiirt, '2 t'lancli ('. « '. \'i'l. 
 
 " VVliatcvfi- may iiavc been tlic (h'fuuls of title prior to that of the 
 iiidor.ser's titlt;, his contract with the holder esto]is him fioni any deft nee 
 as to any irregularity or defect in his chain of title. His transfer is ai\ 
 implied covenant for a f^(jod and indefoasable title to the hill ; and under 
 that covenant he is liable to the holder, even although, when ho pays the 
 bill, he limls hi.s right of action against .such jirior parties ilefeated by 
 forgery or by some other defect of title in his inimetliate transferor. S^e 
 notes to s. ."it. Hi.s indorsement is therefore u guaranti.'e to all subse(|Uent 
 parties to the bill that lii-i tilli , at the time of his indorsement, wa^ inde- 
 feasable. 
 
 Il.I.ISTKATION. 
 
 It is not competent for the indorser of :i note to set ii]) as a defence to 
 an action against him u])on it, th.it the signature of the mtWicr is forged : 
 Mc/.to'( V, CdniKdi, 1 Han. N. J5. .")<Hi. 
 
 an. Wliei-e a person .sio-ns a bill otbcM'wi.'so than fis a 
 
 (Irawef Of aeccptoi', lie tlicri'liy iiiciifs the liabilities oi 
 
 ail 
 
 imTah's'i'T J'l'l'"'"^'''" to a lioldci' in due eotirse, and is subject to all the 
 piovisions of tliis Act I'espectino" indoi'sefs. 1 
 
 ' 'I In .section i.s ajiparently new law ; and it seem.s to settle, b\' a 
 .statutory declaration as to tlie lialiilities of parties signing a bill otherwise 
 than as drawers or aece[itor.s, the eontliet of decision referred to in note 
 G to s. 'J,'}. The decisions there referred tf>, claim to deiive their authority 
 from either the rules of the law-merchant relating to jtarties to bills, or 
 the elausi! in the .^t.itute of !'"rauds relating to guarantees. Tlielaw- 
 merehant, according to I'aiglish law, reeogin/es no .stranger guarantors to 
 bills or notes. The parties to them niu.st hold .some riglit in, or title in, or 
 liability under, the bill oi- iidte, included within some one of the titles 
 usu.illy aiiplical)Ie to such securities ; and the simple .signature of eacli of 
 such parties im]ioi'ts into thi security, the contract of that party according 
 to his title or ndation to the bill as dctiiied by the law merchant. The ^ta■ 
 tuti' of i'"ra\uls re(|uiic, the liability, under a contract of guarantee to be 
 I'videneed in writing ;ind signed by the party chargeable or his agent. 
 And the Courts have held that where this latter contract of guarantee is 
 written on the bill or iu)te, the guaiantor is .subject to tin; liabilities of an 
 indorser. but not to any of the rights, nor the pnitection, accorded by the law- 
 merchant to indor.sers. In many of the commercial sy.stems of Europe, the 
 intervention of a stranger-guarantor is recognized, where the guarantee of a 
 l)ill is known, in France as Am/, and in (lermany as Am// inn. Thisguar- 
 iintee is usually placed at the liottom of the bill, .'ind it bimls the guarantor 
 as .surety, anil .subject.s him to the like obligations as the party to the bill 
 
I'll 
 10 
 
 l.f 
 ith 
 
 TIIK Itn.J.S OF KXCirANOK ACT. 
 
 h.iU he ,,,,-ty, lo, ul„.,„ it i.s .ivon, .sl.,,Il perfonn .-lil tli.. ul,Ii,ati„„. « l,i 
 the 1„11 or not.. ,ts..lf i,i,,„.,.ts on his p art : a>i,l in Franc, th.. nam,, of t 
 .uara,it„r ,s nsiially p,.,.,-,.,,,,, ,., tl.e wo,..ls. ,.„.• Ami. Th. law 
 
 ...•Ik.,, alo,,.. has rec.ogi,i...,l this ..,„t,.a,.t of .„ara„t.e in coiiii,...ti„n . „n 
 
 '.i^ and no ,.s ; ami some of tho cases there .leeiile.l. are citeil helow as .Ih.s- 
 trations. I l,c contract j„.,r A r„l. has not hitherto Keen rec.,,nize,l l.y the 
 
 Knyhsh laM-.merchant : l,„t in sti n-;glin. to ^ive scne dlcct to the h^mki- 
 -n-es o snn.tu.s -usually on the hack of the h.ll or note. - ileci.sions of"the 
 ' onrt. have not been harmonious. In some eases it has l.cen 1„.|,1 that 
 '1- h.cality o. ,he maker's si.n.ture on a note is nor niaterial ; a,i,l a ocr- 
 >on pnttmg iiis signature on the Lack of a no,c, intending tlicd,' to 
 iH-ome a surety for the maker, has been hcM to 1„. a ioint „i;,ker " In 
 other cases the locality of the si.mtiire of such surHv has l,cei, 1^.1,1 ,o 
 i.n material; ami a signature on th.. l,a,.k of th.. m,,,. p,',,,, t„ ,hat of the 
 ....lorser. has been .l,.clare,l to er,.ar.. no li,l,iiitv, l.ecaus.. ti,.. partv s,, 
 
 s.g.m,...m.,tlu.rac,|iiir..,ln,,rtraus,cr..,latith.iiitlieneg,,tiation of the 1,111. 
 and l.ecaus.., ,t such a signatur.. was intcu,h.,l for a ^u'lrnite... i|„. Sr-.tut.- 
 
 ;?, '■'•■•""'^ '•'■''"'■'•'■'' *'"' t-nnsof th.. , tract of guar.mtc.. to 1... u. writin.^ 
 
 h.s m.w s,...t,on of the A..t. iu .u-dcr t,. l,e int,.|lig;i,le. nmst appan.iitK- 
 he ..a,! as cidarJng the ellect ..f s. -{ ; and if so. of ,lo,n. ..vav with tlu. 
 ^M'l'lx'at.on of the t..,.huical rul,.s of th.. Inv.iiicn.lnnt and of th..' Statute of 
 ■■ niu.ls. as t., a ...u.tract of guaraii!,.,. on a hill ..r a n.,t... Th.. se,.,io„ his 
 
 hcu ..ommcnte.l upon in s..m..«hat similar t.rms in r ■/,„/,„,,, /.;//, 
 
 1 < - : " An mdors,.ni,nt. i.roperly so ..nll,..l, must 1... nnde l,v th.. l„.ld',.r '• 
 ".'" ^^■'"•"^;l-'-'" ^vl." 1.^ not the hohler of a hill or irnt,., I,a,.ks it with Ids 
 signature, he ,s not an imlorser. hut a 7.,,.; in,,o,se,. Th,. law annexes 
 
 to his act, cous..,,ueu,.,.s similar to those which follow the indois,. nt of .1 
 
 hill l.y a hol,l,.r. Formerly, when a straug..r t.. th,- hill l,a,.k,.,l it m ith his 
 ■slgnatur,., a pl..a,liim- .(iili,.ulty aros.. as to wli,.fh..r I,., was to 1,. .les,.ril.ed 
 ^^^ an ,ml„,.s..r. .,r as a m^w .Irawer. The ,lilh,.,ilty was. ir is si,!,mitt,.,l 
 simply teehnn.al. for the ..onsc.p,en....s ar.. i,l,.|,tieal. Now it w„ul,l 1,,' 
 ^ulhceiit to star., the fa..ts, or ,les,.ril.,. him as a„ i„dor>,.r - Th,. I ,tt,.r 
 w,.r,ls 01 this s..,.ti.,n '-ami is .suhjee, f. all tlm provisi,Mis ,„ this \rt 
 respectin,^ ,iidors,.rs- ar,. not in th,. Fnglish .\,.t. an.l nnv I, . in(,.„d,.,l to 
 assure to the persons signing as h.n- ihserii,,.,!. the /•/,,/,/.. as w, F as th.. 
 protection, se,ur(.,l t,, iii.lorsi.rs uii,I,.i. th.. A,.t. 
 
 190 
 
 Sec 56. 
 
 ri.i.is 
 
 11: \l 1,,N- 
 
 A not,, payahh. to he ord.T of A. Mas in.lor-.,.,l lir.t l,^ L ,,„J (. 
 .ni.l th,.,, un.ern..atli th,.n-nam,.sl,y A. : H..M. tint L.ai„l(. i,, , rsid 
 :.s Jm/.s an.l as s,.eurity forth.. ni.,ker: Lnn.„r v. <.;,.,th;<r. •_> I.'. C. L. .|. 
 
 A^note was .Iranii l.y A. in favour of I!, or l„.ar,.r 
 
 iml Was iiulorsi'ii 
 e 
 
 I;y (-. in l.lank : l,d,l. t.. he an in.l,„.s..m..nt /-o.,- ^V,;;/ , t ,t ('" ' 
 'In,vcurp<nn-An,l. ,.o„l,l not set up want ,.f noti..,. of profe ' . V'a v 
 ,,therd....nc,.tlian_m,,h, h.v.. I,....,, pl..a.l,.d l.y the ,nak..r : M^rJ' 
 
1*00 
 
 TiiK r.ii.i.s OK !:X('ii.\N(;i': act. 
 
 I me 
 
 Mriisiirc of 
 (l;illl;ii;*'.s (in 
 ili-hdtor. d 
 
 1in|i Ai"',5.."i7 
 liul Aot.>.117 
 
 Sec. 56- rcrsi'iis w liii liavc jiluccil their sit,'iiiitiii(s dii tlic Imck of ii rlu(|\ic (ir 
 
 '■~~' |irniiiis>()i y ii()tc\ I'Oiii' Jin/, ai't' not ii'ilnisc rs. liiil iiiakiis nl Arnl, iiiiil 
 
 arc iH't i-iif itii (I t(i iiiiy iitlicr iHiticc tliaii tlic iiiakir, and aiclialilc with 
 iiini jdintly and Hcvt'iaiiy. An cnjiajjcini nt /""'/• . I /•<(/ is a nnxcd <|uc.'- 
 tidii or hi\v and fact : I'n'ilt v. Mrthnniull, VI [.. ('. ,1. L'l:;. 
 
 All indiii'.-LT of a note imt iifuotiaiilc. i\v. if m ^otialiK', not indorsed hy 
 the jiayee, eaniiot he sued as indorser : W'^l \. Iliinii, W \' , ( '. (^>. I',. 'JOO. 
 
 .'»'J. Where ;i l/lll is dislninored, tile liie;is\ire tii' da liiMifCs 
 \\liieli sIkiII lie deeliied to lie li(|uidated daiiiii^cs, shall \m\ 
 as I'dllows : — 
 
 ((I) 'I'he hiilih'T may iec'n\er iVdiii aii\' jiartN" liaMe on the 
 liiU, tlie diawer wlio lias heeii ediniielled to |iay the liill 
 may iceover tVoiii tlie ncceptoi-, and an iMdorser w ho lias 
 lieen eompelli'd to ]iay the hill may iccoNcr lidiii the 
 aceeptof oftVoni tiie ilrawef, of I'lom a piiof indorser — 
 
 (1) The amount oF the hill : 
 
 (•2) Intel-ivst tllefi'on IV nil the tiliH' of |il'esentmeiit for 
 jiayiiieiit. it' the hill is payahle on deinaiiiK and iVom the 
 niatvnity ol" the hill in any otliei' case : ' 
 
 (o) i'lie expenses ol' noting' and jivotest:- 
 
 (h) In tho case of a hill which has hei^n dishonoreil ahrotid, 
 in adilition to the ahove damaL;es, the holilef may recover 
 from the diawer or any indorsi'i, and the drawer or an 
 indorser whe> has hi.'en fompelled to pay the hill may 
 recover from anv jiartv liahle to him. the amount of tho 
 re-oxchan^a- with interest thereon until the time of [ui}'- 
 ment. •"> 
 
 ' Thi' ilaiise in tlie I']ni;lish Aet provides th.it the interest, as daiiiii^'es, 
 may lie withiield wholly or in ]iai't: eviiieiitly to iin.'et the eoiitiii^eiicy of 
 a v.ilicl tender liy the dehtor. hefore aition, of thi' ainoiiiit <liie on the hill. 
 Hut this jii'oteetioii has not heen roneeih-d to similar p.irties hero. 
 I>y 1!. ■>. ( >. 1SH7. e. 4t, s. SO. interest is jiayahle npoii a delit or sum 
 certain, and [layalile hy virtue of a written instriiiiieiit at ;i I'l'i'taiu time, 
 or ill other ciscs from tiie time a dcniaiid <if payment in writiiii,' stating 
 that interest would be claimed. Sie farther as to interest as part of the 
 deht, s. 9, sul)-s. IJ. .See further as to daiiiaLres note .'i to s. ',t.'{. 
 
'I'liK r.Mj.s OK i;x(ii.vN'(ii: act. 
 
 201 
 
 T; i.i'sTi; ATioNs. 
 
 FiitiTcst made payalilc liyaiiotc is part of tlu' ilciit, ami iif)t- 'lamaucs for 
 ■biiiiiiii,' it: (',•<, ii^( v. /'nr/.-.'.i V. ('. (). \\. I'tS ; s. ]>., Iloirlaiiil w ,/.//- 
 
 Sec 57. 
 
 II I III I ■< 
 
 1 r. c. ('. I 
 
 'riioiiL'h interest ilnes nnt usually run until iliMuaud is mail.' n|iiin a note, 
 \et uliere payinents liavi; liecn nrnle on account, a ileniaml njay lie jire- 
 sinned, and interest on the lialanc(; w ill then aeerue : ////,•</ \- I'uhm >■ •>] 
 
 V. ('. (.». !;. i;». 
 
 Interest in the nature of dauiaiies may lie allow i.l on a note at tlu- 
 statutor\- rati', from the niatnrit\- to tin' entrv of judgment ■ Mim/i 
 
 V. /loiii-hrr, 14 r. ('. ('. r. 4.".. 
 
 I'lllll 11/ 
 
 Interest at the rite allowed liy nni' law is ellaru'ea Mi 
 
 upon a m.te dated 
 
 and made payalile in the I'nitcd States: (li-'ijin v. .Iiiih.,ii. !•_> I'M 'i:, |'. 4,'{() 
 
 Interest is in |n-,Mctice moi'e !,'enerall\- idlow.d li\- tli.- juries in tlii 
 countr\- thin Kii;.di--h authorities \Miuld 
 lh-i<ii\ •1\ v. C. (.». !!. -JTT. 
 
 Interest cannot he elainieil on a liill or note, except li\- 
 
 seem to warrant : N 
 
 jii iicf V. 
 
 iient, hut interest mav he 'dv 
 
 U'lVell ll\ a III 
 
 express ai,'ree- 
 rv as pirl .,f •' d linages, hut not 
 
 part of tlie (hdit : Eximrii I'linniiiiii. W. N. ijss7) ls| 
 
 Xothiun' hut what ari-es f 
 
 deht, can uive rise to el; 
 
 roll! ;i contract. aL.'i-ecnienl . oi- demand of -.x, 
 
 nm ot interest : Unilinm v. /.'/Ay. I i'.io. ('. { '. •J.'Js. 
 
 .\ 
 
 ])roinissory noU: was dishonored at iii itnritv, hut 
 
 ly the liohK'is (a l)ank) hei'iuse of 
 
 It aiel notice : II 
 
 \ias iriit prf)tested 
 
 I. V.MU'er h\- the iihidf-.-iN ijf 
 
 It iiahle to pay interest t 
 
 eld. til it as (here w.is no prolcvl the in 1 
 
 presellt- 
 
 icri'i-n as ,1 
 
 d.d.r. ,\ hahit of 1 
 
 orsers wcr'c 
 links to ch.ii'L'e 
 
 lltereStoll U\-r luo dehts. and to c,,lleef, it if p,,ssil,]r, does not e.-tlhli 
 
 ■IS wiMild he Iiahle to pay iiiteresi as d; 
 
 a custom. The iml ii 
 
 hreiidi of tin ir contjMct. hut sucji interest could not 1 
 
 veiiey proceedings . Iti M rt),i,i<tiiU . p_> .App |;. •_'(;.-, 
 
 linages for 
 
 le recovered in insol- 
 
 ilelow the simiatnres to ;i note was written •'uhen due. dr.iw lift 
 
 per cent :' llidd. tint t 
 K,i.,irlr.< V. //;//, L>.-. 111. L'SS, 
 
 een 
 
 le iiieinoraniiuni was no jiart of the note 
 
 -■ The I'aielish Act leaves it option:il to allow tl 
 
 lecessai'V. I Ins clause ri 
 
 I' ises where ])rotest is i 
 
 law. (I!. S.C.e. VIW. s. (h, which i.rovided tint the d 
 
 l<> expenses of protest, ill 
 lets part of the foianer 
 
 uini.'i 
 
 tol 
 
 le reeovi ri'd 
 
 a hill drawn in Canada or Xewfoundland. slioiil ' he the ;unount <if 
 
 .ill, th 
 
 e expense ot iiotiin,' and jn'otest. and interest 1 1 
 
 icreon. ;in(| excliaiiL 
 
 •lud re-exchaie.;e ther |!iit it omits the allowinee as to hill.s payald 
 
 elsewhere, of an additional sum of two :ind one half per eeiit. as d, 
 
 payahli- 
 iin;igi!.s. 
 
 The rule in .-etrai'd to exel 
 
 iaii,^'(' is that when the n,,te is made payuhk 
 
 ahroa.l, rhc rate of exeliange is gov. ■rued hy the rat 
 
 the./h/vn// in w hieh tliu ;icti()n is hr.ci^ lit, :ind the place where tl 
 
 i> to he transmitted ; and at the time the note is d 
 
 prevaihng hetweeu 
 
 le inosiey 
 
 /.'■'/.v,-, 1,-) V. C. C. \\ -iw-i 
 
 i.dionoi-ed : n7/(7< 
 
 II. .S7. r, 
 
 llirij. llnJ. .-,4,s. 
 
 ll.l.lSTKVI 
 
 n an action on a sterling' hill, drawn hv the plaintiIVs in l.omh 
 
 the defendant living in ( ' mada, aueopted 
 returned to Knglaud ; — Held, that no d 
 
 n upon 
 
 ■w pavahle in l.omlon, and 
 
 ima'^es could he r<'covered, as th 
 
 •-'() 
 
202 
 Sec, 57. 
 
 'riiiil>-fi'i('r 
 
 1)V lloliviTV. 
 
 liiip .\rt.'<.r)8 
 liiii. Act, PS. 
 ItiV 17. 
 
 Not li:iM.' 
 
 Wnrrants. 
 
 viiliilil V ol' 
 Mil. 
 
 TMK ISIM.S OF K.KCM.XNfiK ACT. 
 
 l>i!l louM lint lie siiiil to lin\i' liccn iKT^otiiitcd in Cinad;!, Imt niil\- tln' 
 v.'iliic (if the liill at the |i(nni(l Htcrliii^' : Fn-Zo- v. .'in>ris,'2\J,('. V. I!. 
 
 A note (li'.iwii in ' 'aiiad.i ami payaM"' ucniTally at (Masj^'ow, Scotlaml. 
 r1o(\s not i,'iv(! the holder a ri<,'ht to exchani/e : Wl'-^mi v. Ailkni, "> l'. ('. 
 C. I'. .'{Tti. 
 
 Damau'es whirli may he clainieil on non]).iyn>eiit of ,i hill, eannot he 
 clainu'd fir it.s non.u ccptancM . Until: of Mijiilnai v. iliirri<'iii, 4 l-. ('. 
 I". I!. WM. 
 
 The liiihility for daina<,'eM on a Forei'.'n hill, di^-hnnored ahroad, is to he 
 nieasnred aeeordinir to the l.iw of the <'oiintry where the hioke?i t'ontraet 
 was entered into. .And the oidy daniatres reeoverahle are the anionnt of 
 th(! re cxc h inee and interest tliereon, Imt not interest on the amount of 
 the iiill : /,'/ Ciiiniiici-rinl llmih af Santh A ir^/nifin, .'itiCh. I). .'>'Jl'. 
 
 When fonr hills are payahle here ( lMii,dand) the drawei- is entitled to 
 recover daMi.ii.'<s by way of le-exelian^'e, which, hy the law of tlu' eoiuitry, 
 where the hills are di'awn. the di'awer is liahli' to pay to tlie liolde'r of the 
 hills: A', ^'/VA >•/,/. , \S(}. i;. I) •_'S(). 
 
 A ciisroni as to allow in;; a fixed ])er-eentauo hy way of li(|uidated 
 dama^'es in lieu of e\chan'_'e. re-exelianyc, and other charL'es, whi'u hills 
 are ret'irniMl from the colonics dishonored, however valiil in law, does not 
 a|i|)!y in I hi' ahsenee of an atireenu'nt, express or imiilii'il. to allow 
 re (.'xeliaiim-' : Wdlniit v. .1 //./'.n, W .\]ip. ('is. I)!,"). 
 
 Re-exchain.'e is the ine.isure of the dainajfes incurred hy the l.ohler of a 
 hill hy its dishonor, throii;^di his havin_' ti) ohtain funds in the countiy 
 whore tlie hill was ]i:iy,dile, lluil. 
 
 Tin.' torci^n drawer of a hill ai'cepted in I'liit^laiid is entitled, upon the 
 hill hein_' clUhoi\ired nid ))roteste<l, to recover from the acei])tor the 
 ainoiint of tlie hill with interest, ami ,ill such notiri.il and telei^'raidiic 
 ohariies as have hccn c.iiised hy the dishonor, iiicliidiiig the re-exchange : 
 
 III <!< Ill rnl Sniilh A III' rii''i ii ('(ini/nini/, 1 (.']]. I). (i.'iT. 
 
 r»S. Where tile lio]ilei' of a liill ]iiival»lo to l)o;\rer 
 ncjjfotiate.s it Iiv deliverv witliout indorsiiio' it, he is calh'<l 
 a '' tran.sFerrer li\- deUvery :"' 
 
 2. A tiansfeiTer l>_v delivery i.s not liahh:", on the in.stru- 
 meiit : 1 
 
 o. A ti'iin.sfei-i'er liy (]ilivery wlio iieootiates a liill therehy 
 warrants to his iniiuediate transferee, heini^ a linld(>r I'nr 
 \n^< ■■•, iU,\{ the hill is what it purports to ho, tliat he has a 
 ii<^!.. i,) traii.Nfer it. and tliat at tlie time of transfer he is 
 noi' '. 'v.-i'-o of any fact which renders it valueless. - 
 
 • i'ai.-. ,11 leu'.d hinifu.'iL,'e i.'enerallv. is spoken of as a sale of a hill : and 
 the traiisieror is for this ])urii(>se an ordinary vendor. The sendini; to 
 market of a hill or note without indorsing it, is prima j'acii; a sale of the 
 
TIIK I'.II.LS or KXCHANGK ACT. 
 
 •HKi 
 
 liill. Siii'li a tnuisft r (if a l>ill (If iiiiti' ii;iy:ililc to 1h;ui T, ilocs not icikU r SeC 58- 
 
 tilt; trMii.sfcror HmIiIc (in tlic instrniiiciit. t'l tlic tnmsftii'<'. Uiit wliiic 
 
 SMuli liill (ir note is [inyalilc t(i onk'r, ainl is traiisfi rrfii t(i a Imldir tnr 
 
 val;ii', witliiiiit iii<l<ii'sriiu'iit, the iii\\- linlilcr fii'i|iiiiis the lii^lits of lis 
 
 tiaiisfiidr, and may lie snlijrtt tn i(jnitii s lutwffii siuli tiansfcMir and tlic 
 
 otlicr parties to tlic liill or note. Sees. .SI, sulis. 4. 'i'lu' tiaiu-artiiii 
 
 hero rcfont-'d to may lie illiistratt'il liy tliu t'ase ot' a party casliiii..' a <'iii i|Ui'. 
 
 or a liai:U note of lartit anionnt, for otliti' liank notes; anil tlic uai- 
 
 ranty in fitliur case is similar, in many rcspcc is, to tliat clcliniil in the ni nI 
 
 clause. \Vliere tlie tr.\n>feree discoxcrs that tin- i'ili oi note dots ml 
 
 comply with the terms of the warranty, lie must repuiliate the ti-;iiisa;tio!, 
 
 with reasonable tliliwuce, Seefuither note 1 to .«. .SI. 
 
 The warranty is three-fold :—( 1 ) That " the hill is what it purports 
 
 to ll 
 
 e," or as s. •_'!> more aecuratelv ileserihes it. is 
 
 111 the face of it," vhieli is i warranty of the urniiiiitn'.>s oi tlie seeuril' 
 
 implete and r 
 I til 
 
 1 re-lll, 
 
 .') 'I'hat the ti'aiisfi 
 
 has a ri::ht to tran 
 
 .fer it. 
 
 mil (.ii 
 
 that "h 
 
 is not aware of anv fact Mhich rtnders it valueless." t'r in other word>. 
 
 that it i^ a \ ,ilid 
 
 itv for its I, 
 
 lee V.illle, am 
 
 I that the tr 
 
 iii.vicror lias a 
 
 ^ootl title to it; antl that lie is not aware of any fact allectiiig its true valin. 
 This last warranty may lie eipiivaleiit to a guarantee that none of thi 
 parties to the liill or note :uv insohiut.orare persons not haviiej; a ea]iarity 
 
 to coiitiaet, or \\ ho are imt lialile for other eails 
 
 Th 
 
 •se points when 
 
 the occasion arises, iiiav have 
 
 to 1 
 
 aw 
 
 prior to this Act, has lieen th 
 
 le niori' iitlly 
 tis statiil : 
 
 considered. The rule of 
 
 It is coneei\(d t 
 
 o he llii 
 
 th 
 
 general rule of the I'aij^lish law..iiid a fair resultof the l'.iiuli>h ,uit horities. 
 that the transffror is not even liaMe on the consideration if tie liill or 
 note, so transferred liy tli livery, without indoi'seiiient. turn oiu to in- of 
 
 no value, liy reason of the failure of the otiier paiiiis to it. .And thi.'re is 
 no implied eiiarautee of the sul\ fiuy i>f tluinaker or any ot her party ,' 
 
 lidi^, Vl-1. 
 
 Il.l.fSlliATIoN.- 
 
 A vendor of a liill im]iliedly warrants that it is of the kind and deseriji- 
 tion that it purports, on the face of it, to he: (!oiii)'iii: v. Jlarl/il/, '_* K. & 
 B. .S4!» ; IS .hir. •_'(i(i. 
 
 A vendor of a liill. tliouj:li not ;i party to the liill 
 
 IS resiiol! 
 
 Hemnneness of the iiisti unieiit ; and if the name of on 
 
 .f th 
 
 lie for th 
 part ies is i 
 
 lornerv, and the hill liecomes valiieh ss, the vendee is iiititlrd to rt 
 
 tl 
 
 >e price 
 
 r llll/i 1/ \ . 
 
 II' 
 
 "'<!/, I K. .S: !!. !:?!»; I .lur. \. S. :V2S. 
 
 Where A the hohlri' of a imti' not then due, tr.ided it with l! for .a colt. 
 
 w arrantini' that (lu' note was "as 
 
 d as -..Id. 
 
 id it t iiriied out ti 
 
 he valueless ;lield. that I! was entillid to re.nver from A the amount 
 
 • f the note : Mll/i r v. />«//«/. liii, 'Jt I,. (' 
 
 •J(»S. 
 
 J)isrli,i ri/f of Bill . 
 .">JK A liill is (liscli;ii'u'i''l 1)V |i;iyiniiit in iluc cmifx.' liv nis.hiirni iiy 
 
 Ilii|>..\rl S.5D 
 Iiui. .\ct, .ss 
 10, 78 i 82. 
 
 or uu liL'lialt:' of the diuwL'c or acce[)tni' ; ' 
 
WB 
 
 Seo. 59. 
 
 I'MyijK'iil ill 
 
 dUI- IMIIIKU 
 
 Ucfiiitd. 
 
 KtToct of 
 ii:i\ iiioiit ly 
 dniwi r. 
 
 Tin; liiM.s or i:.\rii.\\<iF, a( r. 
 
 " rayiiu'iil ill iliir {•oiii--(" iiii'inis |i;i\ iiiciil made at or 
 uFtcr till' inaliliils nl' tlic Mil to tlic liolilcr tlarcol" in nood 
 t'aitli and without iititicr that his tith' fn th.c hill is 
 det'cctiv.:- 
 
 2. Siilijcct t(i till' |iri)visi()iis hcri'inartcr t'nntainc(j, wlicn 
 a hill is paiil hv thf ilraucr or an indoisfr, it is not dis- 
 charged . hill — 
 
 {<!} Wlicic a hill payahlc t,(, or to tlir order of, a third 
 ])arty is jiaid hy the dtawrr, the drawer may eid'oiee |ia\- 
 iiieiit tlK'ri'ol' ai;ain^t the aceejitor, lait may not fe-issue 
 the hill:.'} 
 
 Kff.ri of HA \\ ii,.|e a hill is iiaiii li\- an iiidoiver, or where a l)ill 
 
 |iiiyiiiciit by ^ ' I • 
 
 iii.iorsr. jiayahle to drawer's ordei' is paid liy the drawer, the pai'ty 
 piiyin'4' it is remitled !o his h)niier lii^hts as reeaids the 
 }icc(-'{)tor or aiitrcedeiil parties, and he may. if ln' thinks 
 tit, strike out hi> own and suhsL'([iieiiL indorsements, mid 
 .an'uin negotiate the hill: 4 
 
 Accoiiui.la- 
 tioi: liill 
 (lisuliiirgoil. 
 
 o. \\liero an accoinmodalion liill is ))aiil in due eoiirse liy 
 tlie l^arty accommodated, tin.' hill is dischari;cd. •"' 
 
 ' I'liyiiKMit is ridt ;i tt'clnuL-iil wonl. It lias liucn ini])()rtf<l into law pro- 
 cfciliiigs t'niiu tliu (.'xcliiuigt', anil nut fruiii law treatises. Wlioii you s]ii'ak 
 <it' paying in cash, that niuans in satisf ii-tion ; hut when hy hill, tliat dofs 
 not import s;itisfaetion, inik'ss tliu hill is ultimately taken up. ^()U may 
 support a ])k'a of paynu'nt hy shewing that a person agreed to accept a 
 lioise, oi'LToods. ficni anotlic]' in satisl'action, provided that the agreement 
 was t<i tal;e the articles as money : /'( r M lule, .].. in Malliiril \. Diiki nf 
 Ai'iji/li, S .\I. i\: dr. 4"). Nothing will discharge the accejitor or the ilrawi'r 
 except payment according to the law-meichant ; that is payment of the 
 liill at maturity. If a jiarty |)a.\s it licfore maluiity, he docs not (extin- 
 guish the dciit, he purchases it, and he is in the same [losition a.s if he 
 had discounted the liill : Mo,/< 1/ v. Ciilnnn/i, ~ M. iV W. ISl'. The law 
 as to accord and .satisfaction (strictly so called) is wholly ina]iplicalile to 
 bills of exchange ; because l>y the custom of niercliants. to be found 
 laiil down, not only in the law of this country, but in the law of all com- 
 menial countries that deal with hills, a hill of exchange, even ,ifter 
 breach, maybe discharged without accord or satisfaction, by the assent 
 of the holder. It is oidy necessary that he should assent to his having 
 no longer any cliiini on the bill : I'er Willes, J., in Cool: v. Lc-^-fi-r, 21 L. 
 
Till', iiii.Ls (»r i:xt'ii.\N(;i; a* t. 
 
 •2()'> 
 
 • at or 
 
 II !4()()(1 
 l/ill is 
 
 1, when 
 i(;L dis- 
 
 a tliird 
 ■(•(' piiy- 
 rt'-isfiUc 
 
 V a l.ill 
 ic |>ai't\' 
 lids tlic 
 ■ tliinks 
 Ills, ami 
 
 Mirso by 
 
 law yvo- 
 
 (111 sjii'.-ik 
 
 at (li)i'S 
 
 \()U may 
 
 ;n'ci'))t a 
 
 ;|-CCllU'llt 
 
 l>ii/:i III' 
 
 (• (haw IT 
 lit of tlic 
 Kit fxtiii- 
 u as it' lie 
 
 Tlu' law 
 lical)lu to 
 l)f foiuul 
 I' all coiii- 
 'VfU after 
 the aK«eut 
 
 is having 
 s/, r, 21 L. 
 
 til 
 
 •J. C. I'. i-J(). 'iiic .1 
 
 mlicat IMC 
 
 Act, i: 
 
 (). (issT) c. -11. 
 
 alters tli( 
 
 doctrine ot' accord and satisfacljoi 
 
 1, liy II 
 
 .1,1, suli-s. 
 diliu tliat 
 
 jiart p.iynicnt of an olili;^ation, lie'ore or after iireaeli, if aeccpted \<y the 
 creditor, txtinunishcs the oliliLriitioii. 'I'lie section deliius the elicit of 
 payment liy the ]iriiieipal dclitor on the iiill, (diawee or acceiitorl and 
 
 iiv til 
 
 le sureties idrawcr or indorsers. 
 
 Il.l.fsTKATIoN^ 
 
 '111 
 
 ic inarri!ii;o of tile maker ot a imte w i 
 
 th th 
 
 tl 
 
 payci 
 
 d liolih r. dis- 
 
 IC note, am 
 
 :\: 1*1 
 
 (N. V.) iTi; 
 
 1 all li.iljilil)- of the maker theieoii : I'lir/is \. />',<. (</■.- 
 
 '■ If the holder of a liill noci jits Init -d. from tiic aeeeiitor, lie can 
 never afterwards resort to tlie drawer;'" 7'iC'.m7 v. L' i'-i.<, | l.d. Ilayin. 
 744. 
 
 Payment hy the maker of a note to one of two administrators, is a 
 ijood dischaii'e : 'J'ni, 
 
 A. 
 
 s to I). ; |>.. tl 
 
 makes a note paxa 
 
 It V. />/ 
 
 Me to 1 
 
 j'ligs. (S: I'.iir. Xi. 
 
 ■ihr : I!, indorxs to ('., who indor- 
 
 le lidliler, dle.- 
 
 le l: 
 
 ■f I 
 
 li> e\i eiltors ; the exeell- 
 
 t^irs ol 1), Mie ('. ;- Held, that 1». Iia\intr made I!, his exieiitor. i>. was 
 di>eliarycd, and tliat there was no remedy .luailist ('.. the siil)sei|lielit 
 iiiiiorser : ,lihkiii.< v. MrKnr.ii, (i I'. C". t.l. 11. ')44 ; s. p., FidUi ii v. /'o.c, it 
 
 I'l. iV ('. l.'iO. See al.Mi noti 
 
 Where notes were given for the purchase of certain luoperty, which 
 AMie not to lie acteil upon if the | ropi rt\- were civeii up. and default 
 h;i\iiig lieeii made, tlie jiiopei ty was given up and sold for less than the 
 
 oilgllial price 
 
 lie 
 
 tir 
 
 tli.at the notes w^re satislicd hy the suirender of 
 
 le property aecnrding to agrcenulit : ■^iiiil/i v 
 
 ./,„/.. 
 
 4 r. <■. (». .'-;. 
 
 l:y. 
 
 A promissory note for .Sd.'JOO. made liy the partneis in .■; syndieati 
 oriiied lor loniph'ting a street r.dlway, in fa\or of O. and S.. and otiier- 
 
 w ho Will' also partners, was indoisiil 
 
 (). 
 
 1 S. 
 
 paid part am 
 oise it to the 111 
 
 to a hank. On the day it tell due, 
 lirectiiiu the liank ti 
 
 11(1 iiart ; .^. .it the tinii' ( 
 
 plaintili, w 1 
 
 1(1 ti.ive no value lor it. 
 
 lie lijaintlll as 
 
 hoi ,er sued the other eo-indolseis ;- ll(dd, thiit the plaintili' could not 
 recover, for.S., liy his payment intended to satisfy the note, which was 
 made for purtnerslii]) purposes : Sikh// v. 1,'ii/i/i/. .'!l V . ('. ( '. I'. .'iT-'i. 
 
 W'lnr.' the hdldi r of a note aeee]its a draft or cheipie in ]'ayiiieiit 
 
 it liouiid to give up the note luf 
 
 ore ii;i\l 
 
 A///(//( \'. Ilii 
 
 .") ( al. W-IW. 
 
 iient of the draft oi elieip 
 
 A hanker in I^oinlon receiving hills to present for ]iayiiieiit, is not 
 uilty of negligence in giving up Mich hills to the acceptor upon receiviii 
 
 a elieijUe on a 
 cheiiue is disiioiidi 
 
 hanker foi the amniint, althoiieh ir tuin- .out tli.it such 
 
 ed : /,'iis..-i// V. Ihni/.i iL i\ 'V. \{. V. 
 
 \N here a note overdue has hedi si tlhd hy a renewal note, it is ealieel- 
 led, and cannot ho put in eireulatiou .again, even iiy the Jiayee who has 
 taken up the renewal note out of his own funds : Cunlltr v. Fict'^ir, 5 
 
 u. c. t,>. r.. irij. 
 
 A. held H.'s note (not negotiahle), for t'."i(K). In a transaction with 
 one R.. (a jiartiier of 15 ), A. tiansfired it to I!, for his note for i'KKlO. 
 for that and other transactions. In dissohing ]iai tnership, it was arranged 
 that I'v.'s note lor L" 1000 should he paid hy 1!. K. heiiig suhse((Uently 
 
 Sec 59. 
 
2()(; 
 
 Tin: i!ii,i,s OF Kx<iiA,N(;i; act. 
 
 Sec 59- '•■illi'il ii|iiiii for payment, nlit.iiiR'il I',. '.s cIiicjih' I'oi L'.">0(l. and ri'tni-iuil 
 
 — ^. ' I'l.'s original imti- toe f.'iOO tu A. in iniyruriit i>f tlir iiotf lor t'ldOO; 
 
 llclil. til it till' t'ai'ts iliil not aiiioiint tu ;i |iaynii'iit, ami that i>, wart liablu 
 
 lor ihf fodO note : llnnth y. ItiiHn/, S l". ( '. ('. 1'. -Kit. 
 
 \w 
 
 A. sold to r. 
 
 rsu ill ]) 
 
 -•rtiiiii 
 
 .U 
 
 I ;'oim|s, alio 11 I'liuin on oni' 
 
 (', of f-T), tiiUi 
 
 nt foi' till' ;,'ood,-i, and l>."s notf for the claiin. 11. took 
 from .\. an order for tlie ^'oods, lait on pri'seiitiii;; the order he wasnnalili: 
 to olitain tiieni ; -llidd, in an action liy A. ayainnt 15. on tliu note, that 1$. 
 might Hut oil' the value of the hoi.se : Wriijht v. Conk, !l \j . ( '. i}. U. tiO'). 
 
 In an aetioii a;,'aiiist the maker ami indorser, tho ne|>arate didit of the 
 
 // 
 
 uwisun. 
 
 jilaintiir to the maker or inihirser cannot be sol utl' : I'al>>:sun v. 
 
 2 u. ('. \». r.. !;{!•. 
 
 liy consent of the payee of a note, the amount of it wa.s paid to a 
 ericlitor of the p.iyee in e.xtinyuishmeiit of his delit ; lield, that t\, 
 
 note was I 
 
 liscl 
 
 lai-'feil 
 
 dth 
 
 'h not delivered t 
 
 o oi' indorsei 
 
 d li 
 
 crei 
 
 liti 
 
 (! 
 
 V. Broimi, 1 1 Mass. ',VM. 
 
 y 
 
 .•h 
 
 I'.iyment nie;ins ])aynient in due course, aiul not hy anticipation. If, 
 
 thercfi 
 
 th 
 
 ■])tor should ]);iy a liill of exchani^'c liefoie it is due, to 
 
 the holder, who slioiild afterwards, and hefoic its maturity, iiidoi'se, or 
 |)ass the same t<p any siiliseiiueiit liuiui jlilc indorsee, or other holder, the 
 
 latter would still li 
 
 ititled to full 
 
 ia\ iiH 
 
 lit therec)f 
 
 im til 
 
 e acceptor at 
 
 its maturity ; for jiaymeiit of the hill before it is due. is no extiiigiiish- 
 nielit of the debt as to i^iudi ]icisi)n; S/uri/ on JJI '/••(, s. -117. This elallx- 
 gives the party, whether debtor or surety, paying the aiiioiiiit of the bill 
 to the hoblci', the same protection that is extendi'd to jiersons paying money 
 to trustees under an exi)iess or implied trust ; such ji.iyment diseharge^ 
 tliciii from seeing to the application of the money ; and the only liability 
 on the jiarty paying the bill is to ascertain that the money is prope'ly 
 
 payables to the ))arty denial 
 
 it. JJut this rule may not a)iply where, 
 
 on the face of the note, the money is stated to be for the use of another. 
 See Mini 10 v. Cox, .SS U. ('. i). 1>. IWt'.i. 'J'he possession of the bill would, 
 niu'cr the Act, be a siillieient ideiitilication of the holder. Such posses- 
 sion IS jiriiiKi jhi'ic, or ]irt'suinptive, evidence, that he is the projier owner 
 or lawful possessor of the bill. And indeed if this doctrine ilid not pre- 
 
 vail, the acceptor won 
 
 Id 
 
 many cases paj' at his peril, w here the true 
 
 nviier or hohler is uiikiiow n to him ; aii<l eiuUess embarrassment wotili 
 
 L'row out of till' ne''otiati 
 
 nils, w Inch, 111 a vast variety ot case^ 
 
 pass by mere delivery friJin hand to hand, where there is a blank iiidorse- 
 nielit by the lawful ovMU'r or holder tlicrcot. It is therefore for the 
 security of all persons that the rule is uilopti'il to pi event iiiiioccut holders 
 from being coinpelled to establish their titles, before the acceptor will he 
 bound tt) iiay the bill : Storii 
 
 Hi/Is 
 
 41,"). See ss. '2 and '20 as to tli' 
 
 terms 
 
 hold 
 
 er ami possessio 
 
 Ilu'str.vtuins. 
 
 H. &.('o. holding several notes of I'\,all overdue except one, take a 
 mortgage for the total amount thereof ; — Held, that the remedy on the 
 notes was extinguished ; Fra.itr v. Ar/nslruiuj, 10 U. C. C P. 506. 
 
tin: lULi.s oi' i:x(iiAN(ii: act. 
 
 •207 
 
 ii'turni'il 
 kM« lial>K' 
 
 inking' a 
 
 I',, took 
 
 us iiii;il>li' 
 
 ,., thai 1>. 
 
 }. \',. *)<>•"). 
 
 lit el tilt' 
 
 lldlf'fiUII, 
 
 ]iaiil to a 
 , that tla^ 
 1 l.y sili;ll 
 
 iitioii. If. 
 t is due, to 
 iiiilorsi', or 
 lidliU'i-, thi.' 
 accui)tor at 
 txtiiij,'uish- 
 'I'iiis chuisi- 
 t of the liill 
 viiiji iiiom'y 
 (lisrhargos 
 ily lialiility 
 is ]ii<ilii-"'ly 
 ijily whore, 
 (if aiiotlnr. 
 liill woulil, 
 Inch jiosfit-'s- 
 (i|ior owuiT 
 lid not itru- 
 [uru the true 
 linent \v<ndd 
 ty of cases, 
 |iid; intlorse- 
 ore for the 
 jeiit hohlers 
 Iptor will iie 
 10 as to the 
 
 J one, take a 
 Inedy oil the 
 500. 
 
 Held, tliit ill tikiii;,' a nortgiij,'!' for .'?I,.">U(), ami Milisei|iii'iitly a note Sec 59- 
 for .sl..'^."".'} 7">, there eoul I he no merger: linnh d/' ('/>jiir Ciuinili v. '— , — ' 
 
 lUnlhil, !•-' i;. C. C. !■ 
 
 .-{S. 
 
 A noti' of a loi'al iiid;;e (wlio was jiaid liy fei m| was plai'iil in the haiid.s 
 an attorney for eolleetion, and lie agreed to give the judge creilit on 
 
 4it an attorney tor e< 
 
 tlie noto for fees ptyalile liy liiiii for lnisiiie.ss done in the Court, and il 
 
 iiidor.se part on the note as |taynient, ainl suli.>e((iu.|itly liie wlmle amount 
 
 id 
 
 w as pi 
 
 aiil II 
 
 y su 
 
 sum lir.st iml 
 
 ■h f 
 d. 
 
 ecs, luit the alloinev retu^ei 
 
 I tr 
 
 dit luon; tliaii the 
 
 an 
 
 alti'iuards .'discoiided ; Held, that as a''ailist 
 
 tlie holder of the note, the judge eould Hot elailii the liayilieiit hy fees as 
 
 a iliseharge of the note : Kilrhi 
 
 I' 
 
 rIL W V.C. {). 
 
 Unalithori/e'd credits iiidorsid n|ioii a ju'oiuissdiy imti', may i'ro|iiily hi 
 liliterated hy a payee : Jiniich v. />tiil, l.'i Jnd. .")^'_'. 
 
 If two persons niaku a promissory note, an 
 
 if them afterwards 
 
 ohtaiiis possession of it a.s his own property liom the payee, the note is 
 ilischarged : Vax v. J/iit/iji\ ~ lihiek. (Ind.) 14(J. 
 
 I'avi 
 
 iient of a joint and several note hy one <if tlu' i 
 
 JiaUei's, IS oriliiiaii 
 US. 11. 'JIC-'. 
 
 ly 
 
 a diseliarge of the delil : Itiiikiiiijhuiii lianh v. C/i(;/;/i 
 
 Where a note was assigned, on \\ hieh a pai't ]iayiiiint had heeii made, 
 and the assign(U' truly stated to the assignee tlu; amount aeliially du(; on 
 tlio note, the assignee eaniiot reeovel' more than the aelual amount di.e : 
 lliii'lciiir V. Ciirii/, I 1)11)1). (Ky.) 477. 
 
 Where stock hail heen j)Ureiia.sed and notes given for ,*<."),.")()() tu C, 
 piyahle !it dill'ereiit dates, who, after they had lieemne due. indorsed the 
 last one " witlioiit leeoiirse," to M. l)iiiiiig tlu' cuireiiey >>( the notes, il 
 was found that the value' of the goods had been misrepresented, and (! 
 thereujion agreed to reduce ^'A)0 from the face value of the notes ; Held, 
 that .M was hound hy said agreement : .l/i''//'';/"/- v. /.V'^/m//. 14 (>nt. I!. 7. 
 
 Any moneys received as payment hy the liohler of a note from the 
 iudorser will operate a.s a valid di.-icharge of the .leeomiiiodalioii maker : 
 /.i/iiimi V. J):i,n, l.S !.. (.'. .1. ItlCi. 
 
 Where the indorsee, having sued the aceeptoi' of a hill, receixcs from 
 him a part payment, and takes a security for the remainder, with the 
 exception of a nominal sum <uily, he discharges the iudorser; h'lij/i It v. 
 Ihir/ri/, -2 B. & I', ill. 
 
 The aecoptanee, hy the holder, of the terms of an assigiinietit made hy 
 '\\'> joint dehtors for the lieiietitof their creilitors is a satisfaction of their 
 j'liut liahility oil hills and notes, and precludes the holder from suing one 
 of uich joint dehtors : IVInhn i/ v. H'a//. 17 I'. < '. C I'. 474. 
 
 A inerch.'iiit abroad drew upon eeitaiii p't'smis in t his country ( Miig- 
 1 ind) a bill, and njion its becoiniiig due }iaid the Imlder a p.irt of the 
 .i!ii milt of the hill, both ))iities being at the tiiiu' alimad ; but such pay- 
 iiii'Ut was made and received in full satisfaction : and was. .iccordiin,' to 
 iiie law of tlie foreign country where the bill w.is made, iiill satisf.u'tioii 
 li the bill ; — Hehl, tliat such payment operati'il as a disidiarge of the 
 hill ill this country : Jt'alli v. Dtiiiiixloiui, (i l!x. 4SH. 
 
 ■'■ liy the mercantile law, if the drawer pays the l)ill, his indorsee is 
 iiMuud to hand the bill Ijaek to him, and then the drawer has a right to 
 siu' the acceptor, not as surety, but upon the original obligation between 
 tlieiii as drawer and acceptor: Per Lord Kslier, M. R., in liaincs v. 
 'Vrl'iht, ll> Q. B. D. Wm. The word "retire' as applied to a bill hy 
 
i^OH 
 
 ■iiii: I'.iiJ.s di' i;.\( II \N(;k act. 
 
 Soo- 59- mi'rciiiitilf ii-iii;^(!, imx two irii'.ininL,^ K'lil illrits. IT tin' ,u'(,M|)tiir " irtii'cn ' 
 ' '""^ ii liill, liu' liill !■« ill ctliM't paid, and « itlidr.iwii ciitii'ly I'niiii linuiaticin. 
 II' an indiirscr "rctii'cs" it, In iiiii'i'l>' w itliilr,i\N s it IVnm ciniilatidii, mi far 
 UH III' liililsi'll Ih I'oih'i'i'iii'd. ail I III' nias liiiM I lir li{ || u It li I in- .-iiliii' i I'linillrs 
 UH it III' hid Ik'cii I'alird iiji'ili to piy, and had |>aid it in diH' I'niii'si' : 
 /(,'/«( w V. /icinii/, is.lnr, !IM|. 
 
 Il.l.f 
 
 AI'lUN- 
 
 A lilll 111' iioti' caniiiit 111' indiirsid nv iii'Hiitlatiil iit'tci' it has ini' 
 iilli'r II lid, it Nilrli Indiii'scin.'iit iii lii"ji 't la t inn •.\niild niakr :ili\ nf I li- 
 
 ]ial'tirs lialilr W III) wiaild otli 
 
 ITW Isi' 111' lllsrh;|l';f|'i 
 
 1 : /;..■/■ V. /.'o/,/. V. I I 
 
 iV III. S!). 
 
 r.^irlnnii v. < ml, hi, !l A. k K 
 
 WliiiT a payi'c disi-niints a iiiitr and iilti'r\\;irds taUi's it up. In' in.'iy 
 
 ■I' ai; mist I he iiial 
 
 r: Mr\i,l, V. Wihishijl', .') I'. ('. (,>. I! ."tss. 
 
 A hill wliii'h li;is Id'i'u paid \>y tjn'drawi'r in ih'faiilt uf p:iyiiiiiil li\ tl 
 arii'plipr. ni'iy hr ii'-i^siicd hy ihf driwi'i', and tlii^ ai'oi'ptor will still I 
 lialili' 'III it : Ihihliiiiil v. .larksni,. \ liinj,'. .'('.Ml. 
 
 ' 'I'liis I'laiisi' ih'tri'ininrs I In- liiihts uf thr indni -,i r \\ hiii hi' |i;i\ s t hi ■ hill 
 
 as iv siiicty III' ipiasi sincty fur tliu (ioi-'»;pt 
 
 P 
 I ji' lii;i\- iii';;iitiilti.' the hi 
 
 II 
 
 ;is ill! (>V( rdiii' hill, or ln' may cnfoiiic it a^;ainst thr ot lii'i' paitii's liahl- 
 
 to him. .\ 
 
 ml III' wiiiril also I 
 
 he intillt'd, on such payiinnt, to all Miiirili 
 
 Indd hy the lioldfr as I'oli.iti'i ds : Kinirl v. Ldi'it, t .\iari|. II. L. Us.", 
 Wiicri! tilt! drawiT or iudor.siT pays the hill wilhoiit its hcinj^ ih'livi'rcd t' 
 till! party Ji^iyini;, .iiid tlii' Inildcr aftL'i'uard.s assi;.;ns it to a third pints. 
 
 .■^ii''li tliiiil iiai'tx' wiiuld Mki' it 'IS an oMTilur lull 
 
 ;iud llirri'tiu'i' III 
 
 t'ltltSI III lIl'flDl 
 
 IkiiI, si 
 
 iliji'c'L to \.\n\ cipiitit's and rights of llic parly or pari 
 
 who liavi' p.inl tlir hill am 
 
 th 
 
 d am I'lititli'd to its pos 
 
 poSSI'Ssion. .\l|ll SUl'll thiid 
 mid liikr i\\r t it Ir uf ll is .'iss Ullor, .11 id lir ,i Irilsti'i' for surll ilr.lW I 1 
 
 parts' 
 
 or iiidorsir ; an 
 
 tol', ho would he hound to ai'oount for tlu' iiri 
 
 loillil lie I'D 
 
 llfi't the amount of the hill from tl 
 
 toll 
 
 It' propi'i' p.ii til 
 
 Aiii 
 
 Ull [I 
 
 [KU'lii's coidil also romprl 
 
 till-' original holdir or 
 
 as.sii^iu'i', to ai.'1'ount lor any siiiirilics held as I'ollati ral to tlio hill. .\i 
 
 tl 
 
 ic liolik'r or Ins .issl'licc Wi Ull u 
 
 Id not l> 
 
 alliiwi'd to v.iiy till' pii.--iliiiii 
 
 such dr.iwcr or indoisci-, \\ illi ri'fcrcnci; to smh scciii itics : Pmrl \. 
 
 Ih 
 
 '1\ IJc.'iv. isii. I'lst'i \' iiiiloiscr who is (!all( d uiioii to take in 
 
 liill hy the lioldir, should pcricrtly as>ni'c himself not only that the p.iit\ 
 apiiiyiny for paynuiil is the tine and lauiul holder of the hill, hiil.il" 
 that theie ha\e not hceii any lachi's, either hy such liolder, or hy .-iiix 
 other part_\ which will atlet^t the nierit« of the chum against him: fo' ii 
 thui'i! have Ipi'i u siich laclnis, liy which the priiu- )iartit's on the hill haw 
 hticii tliscliarj,'i;il, any iiidorHor who shall iiniu'cessarily pay the hill. wiU 
 not therehy revive the liahility of tin.' ])rior parties, or he entitled 1' 
 recover aijainst them. Thus, if a hill lia.s heeii refnsctl acceptance t)r pay 
 ineiit, and liiie notice thereof has not lieeii j^iviii hy tht^ holiler or otii' i 
 party to the hill, ho a.s to hinil the antecedent [lartics, payment hy any 
 siihseijUeiit indorser who In's not received tliie notice, will not revive tin 
 liahility of tlii' anteouduiit parlies, hut they will remain tlischar.mil : 
 HUx-y (IK Hill-', s. 4-j;{. 
 
'lid', I'.IM.S ol' I .\( IIANCJI: \< T. 
 
 2<)!> 
 
 ■irciilatiiMi. 
 it ion, Ml t'lr 
 lie ii'llli'illi ■< 
 
 ill.' i,'i>iir-r : 
 
 t h«M ''•'•'" 
 imv "f till' 
 '/„/,/.//, I II 
 
 n|i. 111' lu.iv 
 I'.. rtSS, 
 
 ini'iit liv til'- 
 will still I"- 
 
 |)iiyM tilt' I'ill 
 ,li;ltii till' liill 
 liiivtics li:ilil'' 
 
 iill si'ciivitii - 
 
 ,.11. 1.. '■'^:'' 
 
 ^ (Iclivciiil I" 
 i tliirtl piiitv, 
 ^^Tcfiin' lil<'' 'I 
 ty .,r |i;iiiii - 
 nil surli lliii'l 
 rsiirh iliMwi' 
 ,111 thr ;ifi'i I' 
 i,,|ii r |i;ii tii>- 
 Imliln- or hi- 
 „■ l.ill. Aii.i 
 II' i)o>itioii "' 
 s : /',<(/•/ \. 
 o tilUi' "1' •' 
 ilial thf l>:ii'.^ 
 
 liill, llUt ill.-" 
 
 .,■, i.r liV :iii,v 
 him : t'o'' 11 
 he liill liav' 
 Ihc liill. \v''l 
 ,,. ciililU'l I ■ 
 itMiuH' or IKi.v 
 lilder uV otlnr 
 
 iiii'iit l«y ;>i'.v 
 lit ivvivc til' 
 ili.scluu-u"' : 
 
 II 1,1 sTKATIIiS.s, 
 W'lr ir till' 1 1; .olMflu 111 ,1 liriti' wlli.ll lliul I II 111 II ir I iV t lirl I ilil it i il ii Mil 
 
 iMiliirsi'il liy I'li'iii, iiinl ii.lsii liy A. its Miiri>\ ior tlif i|i litor, tonU ii|i thr 
 null', ainl ."itiii.'U out tlirir prior iinlor.-i'iiiriit, .iinl it iinloi.siil it ovn A.'.i 
 
 Sec 59. 
 
 llli|or.-<rlli('lit. 
 
 ini,' to tliiir sij;n;itiiri 
 
 « ithollt rfrolir.sr 
 
 aiii 
 
 I tl 
 
 nil 
 
 hiiiil till' .sun ty ; llrlil, tliii. A. wii.s cstinnii'il from iliiiyin;; lii.s liihility 
 
 /'..<■ V. /'/, 
 
 7'/" 
 
 '.) [. ^'. u. n. i:\. 
 
 W'hi'ir till' ilriiM rr of a liill, iwiMiKh' to his own oiihr, in 
 
 I'' 
 'i'., mill I . to |(, ; Mini ll|iiiii till' hill 
 
 ll^lii'liorri 
 
 .1 tl 
 
 il it to 
 
 II' alllnllllt 
 
 to li. u lio r<trin'k out his own Mini 'I', 'n iiiiliiiMint'nts, anil iiliiiinil ii lo 
 till' illawi'l', who jilti'i'wiilils transfiiii'il it to thf |ilainlitl ; Ijilil.that 
 
 till' |»l;iiiitill' iiii{.'lit iii'ovi r iigaiiist the arci'ptor 
 
 M. .V Siott !i:i 
 
 !> 
 
 Il,:l.l,<n:l W ./.O'/,'. 
 
 I w 
 
 in;,'. 
 
 
 /. 
 
 It 
 
 IS no ilifiiii'i! to all action liy a sni 
 
 il iinl 
 
 oiMT a'_'aiii.-t tin in ikir 
 
 ■mill prior iiiiliu'scr on il note, that the note «as ui\ in to mir II.. towhoin 
 till' inaki'i' w;is iiiili'litril, and imlorsi'il liytlii' first iiiilinsri and pl.iintilV 
 as siiri'tii's 'or thi' dilit. and tli.it tin' plaiiititl' paid tin' sainr. and tln'ii'liy 
 rclcasi'd all tin' othrr p.utii'.s finin tinir iiiininon li.diility : A'//'A"7,- v, Mr- 
 
 iffi/tir, 
 
 \'2 V. {'. C. V 
 
 >fii; 
 
 \\ 
 
 irrr. Ill an artimi hv tl 
 
 ildi 
 
 r of .'i iioti' aij.'iinst ,in indor>,ir, it was 
 
 pioMil that I he iiofi' wa~ in.nli' an itiiii in tin' I'lirii ill ai'roiint lirtwrin 
 the inakir and siirh holdir. and was rliaiLri'd to tin' in.ikiT in thr aci'oiint, 
 
 that thr liiiti' 
 
 and that tlii' liilaiii'r was in tlii' inal. 
 
 i\i'rs tavoiii 
 
 iiiiist III' taki'ii 
 
 to i 
 
 lavc lu'in pan 
 
 d : .l/.''/;//, 
 
 irnnj v 
 
 III 
 A'.'/'i;. 4 r. ('. t.>. I! 
 
 An indorsir of a initc iiiadi- liy A., who lias t,'ivi'ii hi.s own notos in 
 disi'haru'c 111 the oriLrinal note, may sue tin,' maker of such iiott' : /.hI/hhk 
 V. Xorlnii, ti V. C, (,>. S. S'J. 
 
 Where the linlder of .'i note rei'overed juili'nieiit jiyaiiist the maker and 
 
 an iiidorser tliereon. which the indor.- 
 
 lid and took an a>siL;iimeiit of 
 
 the juilt;iiieiit ; -Held, tli.it the iinlor.ser was entitlid iiinli r I,', .si. O. 
 
 Ill 
 
 1, s. ;{, to receiver from the iirinciiia 
 
 including,' the cost.s : // 
 
 dclitor, the whole of the jiidi,'inent, 
 
 (ir/K /■ V 
 
 Cidlnrt, .") Ont. K. I. "•■J, 
 
 The in liirscr of a pruiiiiswory note payahle to order, who h.is not ]iaid 
 I he iMti- liiniself. or lieeomc the holder of it. e.innot In iiiu all action a'j.iiiist 
 
 the m.iker lor the ainiilint of the note ; Maiiuanl v. /,'i nn inl. I '_' I,. ('.J. 
 
 •J!t:!. 
 
 The ilidorsi r of a liill is a surety foi- the payniciif to the Imlder. and, 
 h.ivini; paid it. is entitled to the lienetit of any sceiiritiis deposited uilh 
 lioliler liy the aeee])tor ; and this whether . -it the time he indoi'M'd he 
 
 till' 
 
 or did lint know, of tin 
 
 ,'lit ill thi 
 
 i-it of those Sreuritit s. 
 
 ■I'l 
 
 le suritv .s 
 
 mtract, hut is the result of 
 
 s respect in no way depends on en 
 the equity attendant on the suretyshi[i : l>iiih-nii v. Xmili iiml Smitli 
 W'lihn Ji<iid\ II A pp. ('as. I. 
 
 '' An aeenininodatioii party to a hill, whether drawei', ac 'cptor. or 
 indorser, is a sur ty for the party iiecoiiiinodated, who is the principal 
 il'htor, and as sueli surety ho is subject to the rules of the law lespect- 
 i 1',' principal and .surety. There have hoen some variation.s of decision 
 ill Ontario, resjiecting the rights and liahilities of aocoiimiodation iiidor- 
 Mi's iiilcrsc, as co-sureties. Prior to IST.'J, the Courts had held that succes- 
 .sivcaceoiiiiuodatioii iiidort;"rs on a note, like other co-sureties, were lialjle 
 
lip: 
 
 210 
 
 THE BILLS OF EXCHANGE ACT. 
 
 See. 59- to iiiiitiial coiitiilmtioii inh'r m-, unless their liability was controlled liy an 
 aj^icement to tilt; contrary : Milrhdl \. Emilish, 17 <!rant .'{().'{ ; /f<((.so;t v. 
 J'a.iloii, '22 U, ('. (!. !'. '){)'). Tliis latter case was reversed liy the Court 
 of Apiteal, (L'H U. C. C. 1*. 4;i9) and it was held that the fact of the indor- 
 sers l)i:inij; eo-suretie.s was not sufficient to vary the rules of the law-nicr- 
 chant ; and tliat in tlie absence of an a<.'ree!nent to the contrary, the suc- 
 eessi'e acconmioilation indorsers of a note, indorsed l)y thcni as oo-sureties 
 for tilt' niakei'. nnist l>e lield to be subject, in tlieii' contract of suretyship, 
 to the ordinary terms which the iiidorseuieni. of a proniissoiy note are 
 known to create, /. r-., a liability accoi'dini,' to the order of their sij,'natures 
 on tile l):ick of tlic note ; and that tlie tirs'' acc< inniodation indoiscr, hav- 
 ing paid tlic note, liad no rii^dit, as a snr(;ty, to enforce contiibution for the 
 snbsecjurnt acconiinodatiiin indorsers f)f su<h note. In Fi<ki-it \. Muhuu, 
 40 I'. ('. \). i). 141), tJH! Sucoiid indorscr wliu iitd .«ii,'ned a-: surctj', and had 
 paid tin; note, was Indd eiilitUd to recover tlie \\ iiole amount of the note 
 from tile liist indoisrr wlio was also a surety; the Court of (j)ii"cn's l>cnch 
 holdiny it.self lidiind \>y the decision of tlie Court of A|ipeal in lansoii v. 
 J'lixfdii, until reverse<l by tlie I'rivy Council as the liiial tribunal in eolo- 
 iiia' . ()|icals. 'I'licse cases settled the law in Ontario to be, that as the 
 liabilities, iii/i r m, of sueccs.sive indorsers of a bill or note nnist, in 
 the absence of all evidence to the contrary, be determined according to 
 tile ordin.iry principles of the law-merchant, whereby a prior imlorser 
 must indemnify a subse(pient one, no <lill'(.'rciit rule emild ajiply where 
 such indorsers w ere co-sureties. In (^>uebcc a similar decision was j,'iveii in 
 Mdciliiiiitlil V. Whiijidil. 'li\ \,. C J. (5i), l)Ut oil appeal to the I'rivy < 'ouiicil 
 in ISS.'{, that deiision was reversed, and the jiidgiiient of the i'rivy Council, 
 ill that case carried with it tlie revei.jal of the cases of Ifui<(iii v. J'/u/uii, 
 and Fi'<kf II V. Mcchmi, {tiijirn), and ie-i:stablislied the eipiitable doctrine 
 of the earlii-r derisions in Ontario. And now the law of Canada is, that 
 \\ here ])arties mutually agree with each other to liccoine suretii's for the 
 €ncce])tor of a. bill, or tlie nnker of note, and indorse his i)ill or note as 
 accommodation indorsers, they are entitled, in ease they are compelled to 
 pay the amount of the iiili <u' note so indorsed by them, to e(]ual contribu- 
 tion iiifi'f St, and are not liiible to indemnify each other according to the 
 priority of their indoisenients on the bill or note. And in such a case, 
 the whole , ciinistaiiees attendant on the making, indorsing, and trans- 
 ferring of tile bill or note, may I'c referred to for the purpose of a.seer- 
 taining the true relation of the parties wiio have put their signatures to 
 
 ihers or indorsers ; and reasonable inferences may be 
 alter, or even invert the relative liabilities which the 
 law nn'rcliant would otherwise assign to them : Mavdviia(<l. v. WInlfulil, H 
 
 the bill or note a" :; 
 admitted to (piald'y, 
 
 App. Cas. TH.'j. "See further the note to s. ")(!. 
 
 Il.M'STUATIONS. 
 
 An accommodation acci^ptor, is entitled to bi^ regarded in the liglit of a 
 surety, aiul upon iiaynieiit of the bill, is entitled not only to the benelit 
 of all securities «hich the creditor lias taken, but to have the bill itself 
 transferred to him : Suhkll v. McKiiimy, It) Tex. 438. 
 
THK HILLS OF EXCHAXGK ACT. 21 1 
 
 WliuM tin; liolik'r of an overdm! iioto to wliii'li M. was a suri^ty for the SeC 59- 
 
 otliL'i'.s, ill (jdiisideratioii • '' a certain sum ]jaiil to siieli liolder. i,'.i\'e time to • ' 
 tile ■)tiiei' |iifties witlioi.. iiis, M. 's eoiHcnt ; ami tliat plaintill" took tlie 
 
 note aiDer it lieeaiiiu due, \v 
 
 itii l<i 
 
 ,-led. 
 
 >l' til 
 
 u: itreinl.ses 
 
 M. was diseliirged : Prfliij v. Lmiri/, \~ \J. ('. i). I> 
 par/r. U'i'.tiii, li Ves. 10. 
 
 Held, tliat 
 See also Ex 
 
 >lit a mere 
 
 fori 
 
 learaliee to sue 
 
 th 
 
 1' 
 
 1,1 1 del.t 
 
 or, and no 
 
 1)iiidi 
 
 agreement lo L,'ive turn 
 
 w 
 
 ill not diseliarge tlle surety : 'J'/nmlji 
 
 hniKthl. 17 V. ('. g. 15- .^04 ; s. p., I'h\li»,l v. Jlri/anf, 4 Bi 
 V. /irr//, <l i; rant 45-2. 
 
 i: 
 
 •. Me- 
 
 Wooil 
 
 And where the tii 
 
 lie comp 
 
 Iniiied of was i^iveii to the iiriiieipal ilelitor, 
 
 it was e\pii'ssly understood and aj,'reed that the holders should ii'serve 
 
 ill their rjidits against the 
 
 aeeiMitor as su 
 
 retv, lie is lir)t disehai'ijed 
 
 "J U I'll! I- (' 
 
 :1a 
 
 dl 
 
 •I u. c. c. 1". :?3i>. 
 
 'I'lic j^'iviiig of tiiiie, in or<ler to release an indorser of a hill or iiott 
 
 <t he 1 
 
 ,li)hii.<ti. 
 
 IV some party ii 
 
 •-' IJ. (;. u. ii. I'js. 
 
 terested in the note ; (, 
 
 Dtiiiiii rrtu 
 
 I n 
 
 Where till' holders of a note <,'ave time to an indorser, kiiouiiij; tliat 
 
 ^lefenda,nt was oiilv an aceommodat 
 
 loll niiiKei 
 
 tl 
 
 le maker « as < 
 
 Use 
 
 -..1 
 
 Jiiuik fij I '/i/ii r 0(iiiai/'i v. Orkirninii, I.") U. ('.('. I'. IJti.'J. See also, /iaii/c 
 
 of UitfK'v Caiimhi v. Tin 
 
 11 U, 
 
 ('. ]'. .")i: 
 
 \v 
 
 lere a erei 
 
 litor takes friuii iiis dehtoi the note f)f a third J)arty 
 
 indors(Ml liy such dehtor, for a portion of th ■ deht, and after\ 
 
 tak 
 
 from tl 
 
 le 
 
 leyoiK 
 .1 
 
 that 
 
 niort!,'age for the whole delit. and ])ayalile at a ilay 
 
 itor 
 
 on which tlu; note was 
 
 jiayali 
 
 Ills relliei 
 
 )f the note, is extini'iiislied : Muth 
 
 h-' 
 
 'II ll'silll V, 
 
 /)■ 
 
 <t tile del>tor, 
 
 I r. C, 
 
 as iinlorser ( 
 <,). H. 'J72. 
 
 The iioider of a note, to whieli A., as one of tlie makers, was a surety, 
 accepted a new note from the other maki^rs \\itlioutliis knowledge or eoii- 
 seiit, and agreed not to proceed on the original note unless siuh lew note 
 was not paid at inatiirity; — Held, tiiat A. was discharged : >/('///«// v. 
 Hiird, :i Aiip, R. r>4'J. 
 
 Where the holder of a note take: 
 
 chattel inoitgage, as a collateral 
 
 .security tor siicl 
 
 )te, h 
 
 s n 
 
 Park 
 
 rh'i r V. 
 
 Mr( 
 
 gilt t(i 
 
 a 
 (I sue on the note is e.\tiii'niisiie( 
 
 ri'Ci, I 
 
 7 U. C. (■. P., 1-24. ISiit 
 
 /• 
 
 iiiniiiiii V. 
 
 Mni/I. 
 
 U. C. C. !'. 4G7 
 
 ,'/'"'. / 
 
 Itlie liglit of a 
 li tlie iKiieht 
 Ihe hill itself 
 
 All indovseiiient of tlie payment of interest on tlie h; 
 dat(^ heyoiid that of the maturity of the note, is, in th 
 of mistake, to ho deemed an extension of time 
 
 ot a note, at a 
 
 ■nee of evidence 
 
 as to discharge a party 
 
 to the note wdio is a mere surety : /I'l/dii \.Mi/\' mi/, !."> (Int. 1!. 4(i'.l. 
 
 The holder of a mortgage security may take, 
 
 ddit 
 
 ion, a note from 
 
 the mortgagor with an iinlorser 
 
 nd the fact tliat the time iiieiitiiniei 
 
 for the defeasance of tile mortgage is a |)eiiod heyoiid the niaiaiity of the 
 
 note, IS, 
 
 th 
 
 le ahselici: o 
 
 f fraiicl. no defence to tile ilidor.-er : llnnk of 
 
 ,iL S V. ( . O. I!. IK) 
 
 ds 
 
 l> 
 
 '///( /• < 'aiKvlii V. .S7(( ( 
 
 IT. (;, (', I'. 18.-). 
 
 A marrieil womnu signed a note in iilaiik, and gave it to her 
 
 II' 
 
 he li 
 
 d." He tilled it up for SI, •_'()( I 
 
 '• to 
 cl it, and traiisfi-rreil 
 
 er wliiiU 
 
 it to the plaiiititl', who was not awiire of the ciii unistances mid 
 it hid heeii signed. It was renewed twice, without the married wcunaii's 
 name, the original note riuiainiiig in tlie [ilaintiti's hainls ; -Held, that 
 the married woman was a surety in respect of the note for her son : and 
 
M^i 
 
 212 
 
 THE BILLS OF EXCHANGE ACT. 
 
 iii: 
 
 Sec 59. that the son had no authority to keep it afloat after maturity, without licr 
 '^ ' >— ^ knowledyi! ; and that she had been dis(harj,'ed hv tlie extension of the 
 time : iJirantKij v. liroiriikc, S A[)p. K. 355. 
 
 Where the hohlers of notes duly indorsed, took from the maker a mort- 
 gage of certain steandxiats, with a power of sale in ease of default in th(^ 
 payment of tiie notes : and upon such default sold tlie boats to third 
 parties for tlie amount of the notes, giving credit to the pur( hast rs for the 
 pureiiase mimey, and taking their notes and a mortgage on the same boats 
 as security ; — Held, that the inch.rsers were discharged : Han/: of llrit'ish 
 Xiirlli Amrrira v. Jaiii't, S U. ('. (,>. I». 80 ; s. e. S/i< ricoad v. lianl: nf liril- 
 ifh North Amtricu, 3 (irant 457. 
 
 The holder of a note recovered judgment against the makers and 
 indorsers, which he registered against their lands ; subseijuently he 
 accepted fi'om the makers a composition of lifty per cent., itiul discharged 
 their lands from the judgment, but retaining the right to go ayaiiist their 
 personal assets ; and he then proceeded to enfr.rce the judgment against 
 the indiirsers ; - H(;ld, that the indorsers wme dis"harged : Mi l/ish v. 
 Ovfcii, Ti 'v?'-:int ()55. 
 
 The giving a mortg,',<(e by one of two sureties, does not of itself ilis- 
 charge the other surety : Kerr v. litrc/onl, 17 U. ('. Q- l'>. 15S. 
 
 Where the holder of a bill ir;sned execution on a judgment against the 
 drawer and accommodation accejiLor. and was paid the debt by such 
 acceptor, which the iiohler was aliout to cre<lit on tlie execution, the 
 Court oiilered the exeeiition to be enforced for the liiMietit of the accom- 
 mo(hition acceptor : Hhjin ii v. Van Zandt, 5 < irant 4!I4. 
 
 Aecpptor (;<(^ Wlifii the aeceiitor of a bill is oi' beconics tln' holder 
 
 bocoiiiinjf 1 
 
 In.'uurity *^^ '^ ''''^ '"' 'i^'t^'^' J^s nuitiinty, ill liis (nvii I'ight, tlie hill is 
 
 liiip.Aet.s,r.l ,|;upl,r,,.,,.,,,l 1 
 
 / This clause is limited to the "acceptor of a liill becoming holder in 
 his own right." It has long been vvell settled law that wheie the 
 acceptor of a bill or tlie maker of a note, becomes the executor of the 
 holder, tlie bill is hi Id to be diseliarged, and the indorsers are released : JJi/le.i 
 on Itiltx, ll)t. iUit the executor will have to account for tlie amount of 
 the bill or note to tin testator's creditors and legatees in the ailministra- 
 tion of the assets : '1 Wil/iani.i uu Ejrcntors, 1310. lUit if the acceptor or 
 maker is appointed administrator, the bill or note is not diseliarged, for 
 his appointment is not the act of the creditor which, in the former case, 
 operates as a volnntaiy gift of the debt to the executor ; Ibid, 1313. 'I'lie 
 words of linutation in this section " holder in his own right'' may how- 
 ever operate to exclude the operation of the rule under wliicli, « here the 
 deljtor is aj'pointed exi'ciitor by his creditor, the debt is dis(;liaiged ; the 
 mil 'leing founded on a plain proi)osition of law that the debt vests in 
 the executor, an<i that where tliesiime hand is, at once, the one to receive 
 and pay, the rigiit of act! n is suspended ; anil a personal action once 
 suspended by the acts of tlie parties, is gone for ever : Bijlen on BiUi^, 41 ; 
 ulthough as has been already stated above, the debt, as assets, " cannot 
 be screened " from the creditors and legatees of the estate. The follow 
 
THE BILLS OF EXCHANGE ACT. 
 
 :2i:J 
 
 thoiit lu'i- 
 111 (if the 
 
 cr amort - 
 lit in the 
 < to third 
 :rs for tlie 
 ;iim> Ixiats 
 (if Ih-it'i^h 
 rikufBrit- 
 
 akcrs uiiil 
 \ieiitly he 
 lischiugfcl 
 iiiiist their 
 ■lit njiainst 
 M'Ut.<h V. 
 
 itself dis- 
 18. 
 
 ngiiinst the 
 it liy isuuh 
 j\itioii, the 
 the aec'uin- 
 
 iiig may lie tuke)i as an illustration of an aecejitor lieconiin^' a " holder in Sec 60- 
 liis own right." Where a bill was transferred tu oin; cif the acceiitors ' 
 
 before it became due, and he retained it until it was overdue, it was held 
 that he could not .sue the otlier acceptois, '• 'I'lie bill at the time it 
 became due, was in the hands, and was the jirnperty, of one of the three 
 acceptors who were liable to pay ; and the present liability to ])ay, and 
 the ])rusent riglit to receive the amount of the bill, concurring in the same 
 person, operated as a payment and performance of the contract of accep- 
 tance :'" Hartni-r w Stcdi , AVj\. l.'i. 
 
 01. When the, holder of a bill ut or ivi'ter its maturity ii.'i.hr's 
 
 ri'iiuiiciation 
 
 {ibsolutelv ami unconditionallv renounces liisri«,dit.s a"ainst i" wiitinn. 
 
 ■^ . . . ' " . Iili|i. Act, «.(■.'» 
 
 the acceptor, the bill is discharged : the renunciation must iiiii-Aci,8.s2. 
 be in writing, unless the bill is delivered up to the accep- 
 tor: 
 
 '1. The liabilities of any party to a bill may in like Th.s.ioie. 
 iiumner be renounced by the holdei- before, at or after its 
 maturity ; Ijut nothing in this section .shall att'ect the tights 
 -of a holder in due course without notice of renunciation. 1 
 
 ic holder 
 le bill is 
 
 holder in 
 
 here the 
 
 iir of the 
 
 ised : !'>!ll(:'i 
 
 aninunt of 
 
 dniinistra- 
 
 icccjitor or 
 
 urged, for 
 
 irmcr case. 
 
 WWX The 
 
 may how- 
 
 \\ here the 
 
 arged ; the 
 
 ebt vests in 
 
 e to receive 
 
 action once 
 
 liilU, 41 ; 
 
 , " cannot 
 
 The follow - 
 
 ' As pointed out in note 1, to s. oO, the cominon law (hictrine as to accord 
 and satisfaction has bucu moditicd by the Oiitririo JiidifiifKrr .Ic/.- so 
 that part payment operates as a disch.irge nf a debt, 'i'liat Act docs not 
 re(piire the evidence of such jiart payment to be in writing ; and [)rior to 
 this Act a liability on a bill (ir note could have been disi'harged by parol, 
 wiiellie ■ between immediate or intermediate iiarties : FoMir v. /><iirliit\ G 
 Wx. S3'J ; Wliatlfij v. Trkkcv, 1 Camp. 35. lUit the provision in the Judi- 
 cature Act nuist now be read with the above clause, so as to recpiire the 
 discharge of bills and notes, or the absolute and unconditional rcnuncia- 
 tioii by the holder of his rights therein, to be in writing, whether by part 
 jiaymcnt, or otherwise, " unless the bill is delivered up to the acceptor." 
 The discharge of the acceptor, is a discharge of all the otlicr parties to the 
 bill. The li ibility of some one or more of the other parties may also be 
 reiiiiunced in the same way. lint if the act of reiuiiiciation of tlie holder's 
 claim against Sdine of such parties, all'ects the rights of other parties, who 
 are sureties, it may o[icrate as a discharge cif all ; for ther<' is nothing in 
 this clause protecting the holder against the operation of tiie law of prin- 
 cipal and surety. Sec note .") to s. oil, as to the e(juities atrccting the rights 
 <if a holder in <luc course who releases s<jnie of the [larties to the bill or note. 
 
 IlLI STKATIONS. 
 
 The holder of a note may discharge the indorscr liy a general release 
 before the note is due, and such release will be a j^oexl defence to an action 
 by a subsetpient indorsee : McLtoil v. Carmun, 1 Han. N. li. 5i)'J. 
 
ggg, 
 
 214 
 
 THE BILLS OF EXCHANOE ACT. 
 
 Sec. 61- 'I'll' imlorHfiiH'ut of a bill ]>y a yjayeu to the ac(;c]itor. operates to dis- 
 ^ 1 — (;liar;,'e tlic li.ii)ilitii'a of all |)aitieH to it. I t.s negotiability is destroyed, 
 
 and it eaiinut be revived b)' the aeee])tor indor.sing it to a third person ; 
 
 B<:c<l< V. /i'ni/ h's/ofi- Hank; 4 Ark. MO. 
 
 One of two or more joint assignees of a note may release it ; Weston v. 
 Wi'stoii, WW Me. ;<(>0. 
 
 <;",'T,"'"'"" <»*^- Where a bill is intentionally cancelled by the bolder 
 
 of hill IH II ./ J 
 
 '\m»'\ri '-> G", ^^ '''•'^ MLf'ut, and the cancellation is a))p;in'nt thereon, the 
 inu.A..'i;'8'l' ijjii i.sdiseharued: 
 
 Kfri(t..t 2. In like manner, any partv liable on a bill may bo 
 
 i-anpclling > j i ,' j 
 
 aiiysi^Mia- discliai'i'-ed by the intentional cancellation ot his sioiiature 
 
 turf. o J .-1 
 
 by the holder or his agent. In such case, any indor.ser 
 who would have had a. rijfht of recourse against the party 
 whose signature is cancelled is also discharged : > 
 
 Oanreiiation ;}_ jV Cancellation made unintentionally, or under a mis- 
 
 liy mistake •' 
 
 iiioporative. take, or without the authority of the holder, is inoperative; 
 but where a bill or any signature thereon appears to have 
 been cancelled, the burden of pioof lies on the party who 
 alleges that the cancellation was made unintentionally, (jr 
 un-' ;• a mistake, or without authority. - 
 
 ' The terms used in this Act to indicate the payment or satisfaction of a 
 bill or note are, diseliarge of bill liy payment in due eourse (s. o!)) ; abso- 
 lute and uneonditional renunciation of holder's rights (s. (il) ; and can- 
 cellation of signature (s. (i'i). The proper and safe mode of cancelling a 
 bill or note is to draw a pen through tiic name, so as to leave it legihle : 
 Vcr Abbott, ('. .J. in W'i/kln.soii v. Johnson, 3 B. & <'. 4'28. The cancella- 
 tion of the acceptor's name J)y the holder is a waiver of the acceptance. 
 Where a thiril person cancels, it is a (juestion with the jury whether that 
 cancellation was with the assent of the holder ; B/ilt-' on Hills. 154. 
 
 Il.LrsTKATIONS. 
 
 Where the holder suing the indorser upon a nr)te. produces it with the 
 ind(jrsement cancelled, not as if by any accident, but in the luost uue 
 quivocal manner, the infert'nce is, that the note had bei'O satisfied by the 
 
 deft 
 
 :^()4. 
 
 endant whose name is tiius eaucelled : /'a I v. Kinijsinill, 7 U. ('. (,). I'> 
 
 Where a bill payable to A., is taken up by the drawer, and A.'s indorse- 
 ment is erased, tlie bill becomes dead to all intents aii<l jiiuiioses as a 
 negi'tiabk' instriinu'nt : /'fic< v. S/inr/i, 'J Ired. (N. ('.) 417 ; s. p., Bollard 
 v. (t'ra nlmsli, "24 Me. .'{3(). 
 
 Tiie holder of two joint and several notes of A. &: B. one of which 
 «mly is due, receives from A. a sum exceeding the amount of one of the 
 
THK BILLS OF EX CHANCE ACT. 
 
 215 
 
 it witli tlic 
 most line- 
 
 nnlr^ivl^'iln'tt'''"' ;""' r^^^'^'l"''^ ^-'^ '"<'i"ty "f lial.ility on both notes, 0.. fiO 
 note, -A. IS ,li.sclKirge.l, ,u.,l 1!. also: X;,/u>/.on y. U.rl/i, 4 A. .t K. V,">. 
 
 Mf a hanker with whom a hill i.s made payable hy the acceptor, 
 cancel the ae.eptance hy n.i.stake, without any want of ,l.,e eare. and 
 re urn the hill so deface.l, ho does not thereby necessarily incur any h.-al 
 I'.ib.hty. Kut if a banker, in so doing, be guilty of a want of due ea"e 
 ■•m aet.on bes against him at the suit of the hold..r for the special dama-c 
 actually sustame.l by the eaneellation of th.. bill. Where an acceptance 
 h.a,s been cancelled by nustake, it is the usage in the city of London to 
 return the lull with the words '• ..a.Kulled hy n.istake" written on it • 
 /l!/l.. ,.„ mtls, 152. The presun.ptiou of law is that the cancellation was 
 intentional. 
 
 IlJ.lSTltATIONS. 
 
 _U hen A. del vered it to the holder, by way of renewal a note i.uro r 
 
 . cu ptc and deliyere.l „po„ the old note. The rencNval was not signed 
 ml ,.;« •> i'-'V^''^''-. I"='«"» "f tli« same name, unknown to the hohlcr 
 
 ad resident of a foreign country ;--Hel,l, that A. could not taKe ady n '- 
 tage of this fraud and that his liability in respect of the note st 1 
 existed in e.pu^y : lr,nn v. Frcman. i:! (Jrant 4(i.-.. ' 
 
 The mere f ,ct of a bank cancdling the signature of the makers of a 
 
 si onond note, and writing - paid'" on the not.., when the payn.cnt as 
 
 nade by a new order on a branch of the bank, hut which wni,;. was cor- 
 
 .ec ed by a inen.orandnm, '-caMcelled in error," is not s.dficienho e Kn e 
 
 M,ch bank with the receipt of the money: I'rhu; .. 0,vV /^ w'" °' 
 
 porahon, .{ App. (as. .SlT.. See also Norrlli v. Ii.,..i, 2 11. .^ A.l. 7.^7. 
 
 One I", gave a bill to M. to g.t it discounted, hut .M. failne- to do so 
 returne. ,t to 1'., who thereupon tore it iu U.o cunnw ,l,.tn,.,.,n T.nd I re w 
 it into the th..str..et M. picked it up and joined the piece. .|:' 
 and negotiated M;-^ Hel.l that though there was eyi.lence of canceOat ,' 
 
 liing L'li"'" °'^^ ^' "'"' ''"' ^'"'''''^'•"•^' '^"'''^'= '"'■'''"'" '■ f'rn,nZ i 
 
 ii't Wlicre a bill or iiccoptance is mat.'.iallv alt.M-e<l „ , . , 
 without the a.ssui.t of all parties lialile 01. tlic Kill tli." bill i'"'"'"''-" "f 
 
 ;,,,•]] , . , Jilt ijiii juniils it. 
 
 IS voi,lo.l. ex.u'pt as ao-ainst a party who has himself .na.l.', {iXt't'"'' 
 authori/...,!, or as.seiitf.l to the alteration, and snbse.iueiif'*'^ ''''• 
 indoi'sers : ' 
 
 Provi.l...l, that wh.'ro a bill has been material] v M.ltere,|, „„„i,,. in 
 but the alteration is not apparent, an.l the bill" is in tin; n.'tXXea 
 han.is of a hoMer in due course, .sucli hold.T may avail 
 hiniseirnf the bill as if it ha.l not been altend, and may 
 enforce payment of it acording to its orioinal tenor : -' 
 
rr" 
 
 Hi 
 
 TIIH I'.ILLS OF EXCHANCJK A(T. 
 
 Sec 63. 
 
 Miiitcriiil 
 uUt'ialii'iis 
 
 •2. Til particnlnv, tlie following altorations iire inatorial, 
 namely, Miiy altrration of the date, the sum payable, tlw 
 time of payment, tlie place of payment, and where a bill 
 has been ;u cepted ^cnei'ally, the addition of a place of pay- 
 ment without the acceptor's assent. ^ 
 
 ' Any altfiatiiin <il a bill or note which afTects tlu; runfrtirf. or which 
 alters tlic luisincss cll'cct of the hill or note as a negotiahle instrument, is 
 a " material alteration.'' There are, however, two castas in which an 
 alteration in a material part, will not vacate the instrument : First, 
 where such alteration is mule before the bill or note is issued, or beeoinos 
 an availalile instrn:;'ei\r : 1 seconiUy, when the bill is altered to correct 
 
 a mistake, and i. fii 
 
 >f the original intention of the parties : 
 
 B;//, 
 
 Ilil/^, 
 
 - Thi.s may ])e saiil to be a niodilioation of the law of for;,'ery, and the 
 law of contracts. iJy ;,iio oj 'Miinal la."' a material altenition of a bill or 
 note, is forgery -. and li_, the c> innrm law su.'i an alteration, by whomso- 
 ever made, whither by a stranger or a pan,, avoids and discharges the 
 bill or note as a legal contract, except as against the l)arty who made, 
 authorized, or assented to the calteration. And such an alteration dis- 
 cliarged the parties from all liability, not only on tlie contract, but the 
 ciiiisi<leratio!i also ; Ali/rr.ion v. Ltiiiiji/d/i', 3 i>. & Ad. (idO. The proviso 
 to thi-< section relaxes the strict rule of law as to the effect of the altera- 
 tion 'f a bill or note in the hands of u /lo/dor in due cduvsp ; frees it from 
 the " act of spoliation,' and restores the contract to its original terms. 
 If a holder agrees to an alteration he is bound ; and so are the subseipient 
 indorsers, whose signatures indicate their assent to the alteration of the 
 bill, '{"he ))rovision as to non-apparent alterations has l)een consti'ued as 
 follows : liy the word " apparent " it is not meant that the holder only, 
 should not have had the means of detecting the alteration. If tlie party 
 sought to be bound, can at once discern by some incongruity on tlie face of 
 bill or note, and point out to the holder tliat it is not what it was, that 
 is to say, that it has been mtiterially and fraudulently altei-ed, the alter- 
 ation is an "apparent '' one, even if it is not an obvious one to all man- 
 kind : /'(-/• Denman, J., in //(''(/.s /irt;/A' V. Wulhcr, il(,). U. 1). This clause 
 also necessarily imports the (luestion oi negligence on tin; i)art of a, person 
 claiming to be a holder indue course. For if there be some " incongruity ' 
 on the l)ill or note, of the character pointed out above, the alteration would 
 beheld to be "apparent," and the holder could not therefore claim the 
 beneiit o! the protection given by this proviso. 
 
 lLI.fSTKATH).>:,. 
 
 An unauthorized and material alteration of a note, made without fraud- 
 ulent intent, i)ut under a mistake of facts, avoids the note : Lewis v. 
 .Scliiiih-, 3 Green (N. J.)4r)!». 
 
 Where a party sues on an instrument which appears to have been 
 altered, t is for him to show that the alteration has not been improperly 
 
THK BILLS OF KX('1IAN(;K ACT. 
 
 217 
 
 (til V. l>iikiiiioii. Sec. 63- 
 
 lii.uli- : Kiiiijlil V. Cliiii'iit.-i, S A. it Iv "JL"), : s. ji., Ih 
 .") liiiig. IS,'{ ; /ti.s//ii/i v, ( 'lid mill rs, 'a C. it I'. '>."). 
 
 \Vlioi'(i a cliciui' WHS so caicli'ssly ilrawii as to Ix! cisilv iiltcrcil Ly the 
 holder tn a lai'L,'i'r sum, mo that th»^ liaiikuis could unt ilistiugiiish tlif alti-ni- 
 tiou : — Held, that tlio loss must fall on thi', drawer, as i wa.s caused hy 
 his iie^liyi'uee : Yoiiii'i v. (Irnti', l liin;.'. 'J.").'<. Sec E.r /mr/c Siniiiy ~ C. 
 r.. N.'s. 4(10: 2 H. k'r. iTf) ; U'/iihnorr v. lIV/.s, ;{ (.'. it. P. 3li4, ami 
 iJorwin V. Tlioinpunii, 13 L. C. J. '2>}'2, 
 
 Where in an eni^raved form of note the words " juintly ami severally" 
 Were written over tin,' place where they are intended to lie read, Imt in 
 the .same handwriting; as the other written poitious f)f the note, and it 
 was proved that such wor<ls had lieen inserted alter' the note had heen 
 rsiiined, hut before ilelivery ; — Hehl, not notice of .in ajuiarent alteration : 
 U'fifrrovs V. MrLi'uii, •! .\ian. K. L'TO. 
 
 A person intrusted with a cheque ahsconded with it, an<l after altering 
 the date from the •_'n<l of March to the '2('ith of March, passed it to the 
 pliintili' for viklue. The plaintiff, who had not heen trnilty of any negli- 
 piiiee in taking the ehecine, sued the di'.iwer ; — -Meld, that the alteiati')n 
 was inatei'liil and invalidated the elie(|Ui', .md that the eireuinstances th.it 
 the ')laiutill' hail not iieen uiiiltv of neiflii'ence in takin'' it, was immaterial : 
 
 aiii'c V. I.iiirthi'r, 1 \\\. !•. 17">. 
 
 •'The ahovi' clause providi's that any alteration in the (1| ilate, Vl) 
 sum, (3) time, oi- (-1) placid of payment, iuid (5) the addition of a place of 
 piyment, when tin- hill has lieen accepted generally, is a " mat> rial alter- 
 .ition " which w ill .ivoid the hill or note. When a hill or note is altered, 
 it is no longer the instrniuent the party signed ; and it cannot he used to 
 prove a new contract. 
 
 ll.I.rSTEJ.VTIONS. 
 
 The following alterations of the words of a hill or note have heen held 
 to lie " ni iterial alterations," which avoided it : — 
 
 Altering the date : Sloiiiaii v. Cax, o Tyr. 174 ; AtkiiKmi v. Jfrtin/on, 2 
 A. & K. (i'JS ; so as to postpone |);ivinent : i iiilliiriutf v. LiirJliii, 4 Camp. 
 17!l; ir<(//-'/' V. Ihtsliiiij.s IhhI. -J-is ; .Vin </it/i v. (Jiilni; r> U. (". l,». M. 
 21 S ; llirsrhiiiiin v. limhl, L. 1{. S E\. 171 ; or to accelerate payment: 
 Mu.^tir V. Milld-, 4 T. R. 320, o T. 15. 037. 
 
 Altering the date of a checpie : Viincfw Lmrthir, 1 l]x. 1). 170. 
 
 Altering '"sight'" to "date : "' /,■)//;/ v. Mauri, .'! lisp. !.").")/(. 
 
 Altering place of payment : Tid nini-yli v. drori r, 1 M. it S. 37."). 
 
 Altering a joint note to a joint and several note : /'( rriini v. Ilimo, 4 
 I Jim;. 2S ; Siini.iiiii v. Yniji i\ U. C (J. .S. 3, Sul qwiii, Le-ilii' v. EiiiiHonn, 
 2,} U. C. (l B. 243. 
 
 Altering the numheis on hank notes, .ilthough not varying the contract : 
 Siiifrll V. Hunk of KiKikiml, !» (^». 1). 1». "1,'),"). r.ut .see L'lils /lank v. 
 Walkii; II (,). li". I). 84. 
 
 lOrasing a condition respei'ting the conveyance of land ; Ciiiii/iIkII v. 
 MrKinnun, 18 U. C. Q. B. 012 ; s. p. Beimlkt v. Coimb'u, 49 N. Y. 306. 
 
 I'lrasing the signature of one of two joint makers : Xirh'jl<<oii v. liei'iU, 4 
 A. & E. 07o. 
 
 lOrasing a condition " the witliiu note not to he sold : " Sim 1-41 and v. 
 DndfUuii, 3 Ont. I!. 320. 
 28 
 
21.S 
 
 THE ItlM.S OF KXCHANGE ACT. 
 
 Sec 63. Adiliii;,' : " Tntert'st at six per cent, per annum:" WnriiiKjtuu v, Enrhj, 
 
 ' — ' 2 K. it 15. 7').'< : <ir " witli intorcst f roni diite : " linnni v. ./■'ins, '.i I'oit. 
 
 (Ala.) 4'2(» : or -'with iiitiT* wt : " h'tmn/z v. //art, 17 lii<l. .'W!' ; l>iit iiddiug 
 " vvitli iiitcnst, at .smcn )ii'r cunt" l)y unnscnt aftur signature, does not 
 avoid tin; nolo : FI/<-/i v. Krl/i/, 44 U. C. (,). H. ^uH. 
 
 Adding: " I'aval.li' at the liuU Inn Algiite : " /liirrh/ii Id v. Moore, S 
 E. & IJ. (iS.S ; s. p. (owi<- V. Ilasinll, 4 1'.. & A. li)7 ; Jlitiihiin/ v. Lun:lt, 
 1(5 \V. R. 7!»."). 
 
 Adding the paytn-'s name to the foot of the note a]>parently as maker, 
 but not his signature : J\'i id v. //idii/i/iri'i/, (i App, K. 4015. liut see Ex 
 partf Y(Ui:-<, •_' l>i(i. & .1. lid. 
 
 Adding: "or order," which had hccn unintcntioiuilly omitted : Law- 
 toil V. An/lidijr, 2 Kerr N. IJ. fl'JO. liut see below. 
 
 Achling words letunred liy foreign law, and the rate of exchange : 
 flirxrhjii/i/v. SniUh. L. K. 1 l'. I'. .'UO. 
 
 I'laeing tlic figure 1 hefore the ligure 4 in the date, after it had become 
 due : <lliuUo„i v. />»■, 1) U. C. C. I". 4;?!). 
 
 Ailding what tlie c<insideration was for : Kin U v. WiHiaiin', 10 East 
 431. 
 
 The addition of a new joint Jiiaker to a joint and several note, after it 
 had been issued ; (•'(ii-i/inr v. l\'iii-</i, 'J ]•;, it 1!. H'A. 
 
 The following alterations in bills and notes have been held not to be 
 " nuiterial altmations :" — 
 
 Adding "or order;" Ki-r-'hair v. C.ix, 2 Esp. '24() ; or "on demand," 
 being only what the law would have supplied : A/dmisv. Corimidl, L. R. 
 3 Q. H. 57:1. 
 
 Adding "months," omitted after "three"; Iai'dic v. Clurb', ,S Rev. 
 Leg. 4ri(). 
 
 Adding "hundred " between "eight" and "dollars," ondtted liy mis- 
 take : liiinil V. /liiifhi rsuii, 10 Vend. (N. Y.) 91? ; s. p. Cditc v. Small, 17 
 /bill, 2:JS. 
 
 Adding ))lacf of payment in b'aidv space aftei' " at " : Ki/r/iiii v. I^kicc, 
 41 Rarl). (N. V.)4(j."); s. p. .yaccV/.v v. Hurt, tj M. & Sel. 14'2; Stcvcii.s v. 
 LliH/il, M. & M. 2\i2. 
 
 Adding " the ordei' of Iv P." ever the wor<ls "(J. I!, ("o. or order," 
 without erasing' the latter words : 'iraniti J!. Co. v. Jlucon. ].'> Pick (Mass.) 
 
 Altering "bearer " to "order " ; Athrood v. O'lifliii, 2 C. & P. .%S ; s. p. 
 ni/niii V. Tliiiiiijixnii, II A. it 1;. .SI. 
 
 Altering " .1. t'. ;ind Co." to ".]. ind C." : Farqiiliar v. Soiithey, 2 C. 
 & P. 497. 
 
 Altering "1 ]ironiise" to " we pi'oiMise " ; Jjrac/:ilt v. Mount/ord, 11 
 Me. 115. 
 
 Altering tlie date of the year of a not( given in .Tamiary, and dated by 
 mistake in tiie former vear : Brutl v. I'icwd, R. & M. .■}7 ; Filch v. Jom-i, 
 6 E. & R. '_>:iS. 
 
 Writing over in iid< the words written in pencil : licid v. Ixoarl, 14 Tex. 
 329. 
 
THK BILLS OF KXCHAXOE ACT. 
 
 •2 1 !) 
 
 Accr/ifaucc (Did Payment for Ifovor. Sec- 64- 
 
 4»4. Wliero a liill of exchange lias ])eeii iirotested for ArwitHncf 
 
 T 1 1 1 1 !• 1 . f'lr lii>iiiir 
 
 (lislioiior by non-acceptance, or protested tor lietter seeuvitv, sup,-.) pru- 
 and is not ovei'due, any person, not l)ein<f a paity airt-udv imp.A.t.sOa 
 
 . 3 1^'. 111,! .,i.(_ 
 
 liable thereon, may, with the consent of the holder, inter- s los. 
 vene and Jicecpt the hill svjini protest, for the lionor of 
 any party liable thereon, or for the honor of the j)erson 
 for "whose account the hill is drawn : l 
 
 2. A hill iiwiv lie accepted for honor for part only of the A<-<(pti,i in 
 sum for which it is drawn : 
 
 part. 
 
 JJ. An acceptance for honor sviini protest, in order to 1 
 valid, must — 
 
 )e 
 
 Ilc.|ujri'- 
 iiiiijls fur 
 Validity. 
 
 (a) Be written on the bill, and indicate that it is an 
 acceptance ibr honor ; 
 
 (h) Be signed by the acceptor for honoi*:- 
 
 4. Where an acceptance for honor does not expressly 
 state for whose honoi- it is made, it is deemed to be an 
 acceptance foi' the honor of the drawer : 
 
 5. Where a bill payable aftei- sight is aceejited for honor, 
 its niaturit\' is ealculated from the date of iii'ote.sting foi- 
 non-acceptance, and not from the date of the' acceptance 
 for honor.3 
 
 ' After one acceptance completely niitde iiiid perfected hy tiie drawee, 
 no second per.sdn can intervene, and liy a sul)sii|iuiit acceptance charge 
 Inin.self a.s acceptor, tliongh he may as guarantor. lUit tlif like rule does 
 not api)ly in cases of an acceptance yn/irii /irnf' </, ov fur honoi', to tin- 
 .same extent ; for although there cannot he nioie tluni one acic|)tance for 
 the honor of any one party to the hill, yet there may he a swcces.sion of 
 acceptances for the honor of diflerent parties ; one may accept for the 
 honor of the drawer, another for the lujuor of tiie first iudorser, and an- 
 other for the honor of the second indorser, and so on : Slori/ on liill.<, s. 
 •J()(). See notes toss. 51 and (j."), as to the necessity of protest before an 
 acceptance for honor, and note 5 to s. ol, as t(j protest for better security. 
 
 - These jirovisions, re(juiinng the acceptance to be in writing on the bill 
 and signed, are similar to those in s. 17, with this diirerence : that the 
 acceptor must indicate in writing that it is an acceptance for honor, 
 
•2-2{) 
 
 TiiK BiiJ.s OF i;xiiian(;k A< t. 
 
 SeC- 64. aiiil slifinld I'k'.'irly statu tor whosf lioiior tlif bill is iiciicptcil, otiicrwiso, 
 ' uiiik'." tlu' next suli-suL'tidii, liin aocL'ptaiK'L' will hu duomed to ho for tlio 
 
 honor of the ilrawcr. 
 
 ■■' 'I'lio iirescntnicnt of tlio 1)111, and refusal to acuopt, as stati'tl in the 
 protest, indicate tliu date of tiie " sight " of the l)ill ; and such hills aro 
 not entitled to days of graue. Sue notu 1 to s, 10, page "),"), iind note 7 to 
 8. 14, pagu (iO ; and the notes to a. ">I as to the pn>uudiire in cases of pro- 
 test. 
 
 Contract of |»,"j 'j'],^, accei)toi- lof liouor ol a bill bv tic'ci'ptiiiy; it 
 
 ii('i'L|itor II ir I Jin 
 
 im'pAit «oo ^'",^'fig^*^ that lie will, on diu; jireseiitiMont, pay the l)ill ac- 
 in.rAct, cordiiio- to tlie tt'uoi" oi' his acec|)taiu'e, if it is not paid by 
 the drawee, provided it has been d«ily presented i'or pay- 
 ment and protested for non-payment, and that he receives 
 notice of these facts ; 1 
 
 To what 
 purtied. 
 
 '2. The acceptor for honor is lialile to the holdci- and to 
 all parties to the bill subse(inent to the party foi- whoso 
 honor he has accepted. - 
 
 ' If the acceptor for honor pay the hill, he is entitled to have recourse 
 for re-payniunt to the jierson for whose lutnor he mudu the aoce])taiiee, 
 and to all other persons who are liahlu to that [lerson ; hut if he accepted 
 for the honor of the drawer only, he cannot sue any of the indoisers. 
 A person who accepts for the honor of an indorser, cannot sue a suhse- 
 (pieut indorser ; hut the indorsei' for whose lionor he accepted, and all the 
 prior parties, the drawer included, are obliged to make .satisfaction to 
 such acceptor : liro()l;i\-< Xoturij, \V2. 
 
 Illustration. 
 
 All aece])taiice for honor is conditional only, and therefore presentment 
 for j)aynient must he made to thu drawee at maturity ; even in tho casu of 
 a hill payable after sight : Williaui.-i v. Gcnnaiin:, 7 1». & C 408. 
 
 -' This provision is similar to that contained in ss. ii-l and 53. The 
 acceptor for honor comes on to the hill under the same title, and subject 
 bo the same liability, as that of the party for whose honor he accepts ; and 
 he is bound by the same estoppels as those which bind an ordinaiy accep- 
 tor ; and especially those which would hind the party for whose honor he 
 is an acceptor. 
 
 iLI.rsTRATION. 
 
 An acceptor sitpra prolesf of a hill for the honor of the drawer, is, like 
 the drawer, estopped from denying the validity of the hill, and it is not 
 competent in an action against him by an indorsee to show that the 
 payee is a fictitious person, and that he was ignorant of that fact at the 
 time when he accepted the inll : I'hillips v. cm T/iuni, 18 L\ B. N. S., 
 694; s. c. L. R., 1 U. P. 471. 
 
THE HILLS OF EXCIIANOK ACT. 
 
 •>•>] 
 
 00. Where a dishonored bill has Ijrcii accoptfd for Sec^. 
 honor .svn>/'(t nrotcst, or contains ii ri'terciiei' incuse of ncfd, i-nMintinent 
 
 11... 1 '" HHipior 
 
 it nuist !)(' protested for non-nuvnicnt liclorc it is prcsrnt'.Ml inriKmor. 
 i(n' payment to the acceptor tor honor, or rcitiec m case ol in.i. a.i, 
 need : i 
 
 2. Where the athlivss ot the acct'ptor for honor is in the Tim- fur 
 same place wlu'rc- the l)ill is protested for iion-pMynieiit, 
 
 the liill must be presented to him not later than the day 
 foUowiiiiJ- its maturity ; and where the aildress ot" the 
 acceptor for honor is in some place; othiM' than the place 
 Avhere it was protested for non-payment, the bill unist be 
 forwarded not later than the day foilowinu its maturity 
 for presentment to liim :- 
 
 3. Delay in presentment or noM-|»resentment is excused |i','J,'j''/'|^','. [!,',"",. 
 by an}' circumstance which would excuse delay in present- ,'|','.'|,','J '" 
 ment for payment or non-presentment for payment: 3 
 
 4. When a ))ill of exchange is dislionored b\- theaccei)tor 
 for honor, it must be protested for non-payment b\' him. ■* 
 
 ' 'I'hf " rct'urt'u ill case of nucd, " is ipro\i(k(l fur in .-. IT), |). (I'J. '^lli^ iiinl 
 the prior clauses, 04 and tj.">, ^u'ovide for an acccptanci' fm- lioiior atti r tlic 
 protest for noii-'Xfcciilanre of thu bill Ity the drawee. At maturity, the 
 holder niu.st again present the hill to tiie drawee for payment, and if Jiay- 
 n.'ent he retusetl, he must again protest the hill for iion-jKu/iinnt hy the 
 drawee ; such pre.scntnieut and protest must he made hefore iii! can |ire- 
 sent the hill to the acceptor for hcniorfor payment hy liiin. l>y s. (I'J where 
 a hill is reipiii'cd to he protested within a specilied time, or hefore some 
 further proceeding, i.s taken, it is suHicient if the hill is noted hefore ^■,uch 
 time or proceeding, and the formal protest extended thcrcaftiT. as of tlie 
 date of noting. 
 
 - The procedure under this clause on the days indicated ahijve, should 
 he the same as that prescribed by s. 4."). The words " must lie [iresented," 
 may be read as indicating that if the hill is not presented in due time 
 to the acceptor for honor, he will be discharged; hut the prior protest may 
 preserve the holder's right against the other parties. 
 
 ' The circumstances which excuse delay and uon -presentment in the 
 cases referred to, are defined in s. 47. 
 
 * This clause requires the formality of a third protest on the bill after 
 it is dishonored by the acceptor for honor. The Jlr-^t protest is ueces- 
 
*>•;•> 
 
 Sec 06. 
 
 I'liymcnt for 
 honor mijira 
 proti'st. 
 Imi|i. A('t,H.G8 
 InJ. Aft, 
 8. 113. 
 
 If more tlmii 
 onu ulIiT to 
 pay. 
 
 Noturiiil 
 attestation. 
 
 Unsis .if 
 notariitl act. 
 
 Inabilities 
 aihl ri;,'lits in 
 
 SUI'll tilSi'. 
 
 Delivery to 
 paver for 
 honor. 
 
 THE HILLS OF EXCHANGE ACT. 
 
 sary iK'fni'o tliu hill can l>u liccopted for honor, I'itlur l)y tln' rcfcroo in 
 L'lisr ipf uvvi], or a Htriiiii,'('r, and will bu nt'cuHHary in case,' partic's have 
 inilorat'il it in'foro ditihonor. (See .ss. 17, T)! and (it.) 'I"hu mcoii'l |irotest 
 is when, after the acceptance for the honor of tiie drawer, or of 8(»nie other 
 ])arty, the hill is aj^.iin di.slionori'd hy the drawt r, and 's neue.s.sary hefore 
 the liill can he pre.siinted to tlu? ac'ccptor for honor. And the lliinl protest 
 can oidy he neccs.'saiy in case new [)arties have indor.scd the hill, after 
 it has heen aeeef)ted for honor sit/mi imittM. "If the acceptor supra 
 I in it I xt refii.ics to pay the hill, then the holder Hhould cause it attain to 
 he ]irote.sted for such non-payment, and due notice thereof given to the 
 parties interested, as in other i.'iises :" Story on liillx, s. \VM. 
 
 i\% . Where a hill hii.s heen protested for iioii-payment, 
 any per.son may intervene and pay xisiipnt prote.st for the 
 honor of any party liable thereon, or for the honor of the 
 per.son for who.se account the hill is drawn : ' 
 
 2. WHiere two or more persons offer to pay a hill for the 
 honor of (lilferent parties, the per.son whose payment will 
 disehar^'e most parties to the hill shall have the preference : 
 
 o. Payment for honor siipxi protest, in ordei- to operate 
 as such and not as a mere voluntary payment, mu.st he 
 attested hy a notarial act of honor,- whicli may be api)ended 
 to th(' j)rotest or form an extension of it : 
 
 4. The notarial act of honor must he founded on a 
 declai"ation made hy the payer for honor, or his agent in 
 that behalf, declarino; his intention to pay the bill tor honor, 
 and for whose honoi- he pays : -^ 
 
 a. Where a bill has been paid for honor, all parties .sub- 
 sequent to the pai'ty for whose honor it is ])aid are dis- 
 charged, but the payei' for honor is subrogated for and 
 succeeds to both the rioiits ami (hities of the holder as 
 regal (Is the l)arty for wdiose honor he pays, and all i)arties 
 liable to that party : ■* 
 
 0. The payer for honor, on paying to the holder the 
 amount of the bill and tl . notarial expenses incidental to 
 its dishonor, is entitled to receive both the bill itself and 
 the protest. If the holder does not on demand deliver 
 
Tin: lULLS OF KXCH.VNUK ACT. 
 
 '2'i:\ 
 
 tlicm u|). he shall lie liiil>lc to tlit- payt^i' lor honor in Sec. 67^ 
 
 (|iilii;i;L,'fs : 
 
 7. Where till- liolder of a hill refuses to receive piivtiielit ™i'J^|''t., 
 su/)i'<i. [irotest, lu.' shall K>se liis ri^fht of reeourse aL;ui list [,',','",''" ''"*' 
 any party who vvonhl have hueii disehait^ed hy sueh [lay- 
 iiieiit. •* 
 
 ' 'I'Ik; law-nuTc limit, ,i.s to paynii'iit sii/n'ii pra/rsl docH iKit .'ipply t" pro- 
 iiiisHoi'v iiiitt's ; vihicli iii'o not liki' IdlU of i;xcli.in;,'i' inti'iiclcd for i-iii'nl;i- 
 tioii all over the l;1oIii^ : />'///«>■ o/( /<///•(, 'J 1 1 . Whorvcr tinTcfori! p,i> , a 
 proiiiM.sory note foe Jiciinir olitiiiiis only a titlf to iin ovcnliic noti' ; and 
 tiiki's it tliinvtorf siihjfL't to all tin: ei|iiitii's atta(.'liinj^ to it. Hitherto tlu! 
 prioi' olausua, ()4-t)(), have dealt with the ease of an aeeeptanee for hoinir 
 vififd /iro/ixl, for tlie noii-aeeeptanee of the hill. This elause deals witii 
 tile case of a iiarty intervening, after a duly aicipted hill has heeu dis- 
 honored hy non-payment, ami paying' the amount of the hill, U tin- 
 honor of the [lerson for whose aeeount it was drain. Thi're is a ni.iti^rial 
 dill'erenee ill the proeedure to he ohserved, and the ipLility of title to ho 
 ohtained hy a '" [layee for honor," and the '' transferee of an overdue hill.'' 
 
 'I'lie former nets in the title of the ori>'in.i 
 
 )ldi r, and if the latter \\ ,• 
 
 liolder in due course," he succeeds to his title. See notes to ss. '2!( and .'W, 
 and AV Oi'irciid (liiriuy <(■ Co., L, R. (i K(j. S-14. Hut the procedure is 
 attended with some formality : (seosuh-s. Hand 4). The transferer of an 
 overdne hill simply j,'ets the hill for what it may re.ali/e, snhji.'et to all 
 eijuities hetweeii till' {)rior parties; hut the procedure is without any 
 formality, other than a simple purchase from the oriijinal holder. 
 
 - .\ 
 
 itarial act" may he descrihed to he an\' written instruMient 
 
 der the signati 
 d 
 
 id ollicial seal of a notary, autlieiili(atiny or cer- 
 l al.>, 
 
 tifying some docuinent or circumstance ; ami al-^io any eertilicate or writ- 
 
 ten instrument cer 
 
 tifying 
 
 .some document or circuinstanco under his sig- 
 
 nature only, ami without his seal. Any eertilicate without a stal i.s 
 exce])tional, for in general the seal is considereil a material part of tlio 
 
 ccicmoiiy. 
 
 A date is inserted in almost all notarial acts, and is indis- 
 
 pmsahly necessary in pi'otests of hills, acts of honor, an<l Narious other 
 instruments. 'I'he date of a notarial act must he truly and eoricetly 
 ^'iveii. It is commonly in words at length, and a false or incorrect datu 
 must never he inserted in it, on any inctcxt whale\cr : JJiookc'.s JSatdi y, 
 
 •2r,o. 
 
 '■' These formalities are ajiparently recjuisite to protect the payer for 
 honor, on his hccoming the holiler of an overdue hill. Xo person can hy 
 sim[ily paying money to the hcdder of a 'ill, and hy a siihse(|iieiit de- 
 claration, cause a payment so made, to assume the character of a payment 
 for honor : l/eralopulo v. Wider, IOC. V>. 7UD. When any person intends 
 
224' 
 
 TIIK lillXS OF KXCIlANdE ACT. 
 
 Sec. 67- to accept a bill mipra proted, it is necessary hy the law-niercluuit, to liavo 
 ' ati iiistrunient called an act of lumor, or an act for honor, ])repared hy a 
 
 notary ; wlii.'li is a mitiirial certilicate nnder the law and seal of a notary, 
 declaring that the hill of which a cmiy is wiitteii on the l)ack or iiretixcil 
 to it, having hecn jii'otested for non-aiM.'eptance, a tliiril ]icrscin, or the 
 drawee, as the ease may he, would accept the hill, either for tlie whole or 
 a jiart of tiie anioiint, for the honor, or on account of, any party to it : and 
 itconmioidy conchidrs with sonic j,'eneral '"claration that siicli jiai'ty, and 
 all otlirr pcrsoMS, are held rcs[ionsiiile t'or the amount, anil for all eo>ts dam 
 ages and inti-re>t ; and sometimes with the addition of a few words to the 
 cti'ect that the notiiry ai'cordingly grants the act cjf honor. Dy mercantile 
 usage, the intendecl acceptor for honor, personally, or h}' a clerk or agent, 
 declares his intentinu to accept the hill supra jiraliy/, after which the act 
 of honoi- is iu'e|i,ired : in such a case the usage as to the ninde of i)resent- 
 ing a hill, and rei;ei\ing the answer, is precisely similar to tlie eommou 
 case of the presentment of a hill for acceptance. The act of Iiouhi- is liy 
 the law-mereiiaiit, ;in indispensahle ceremony : and it is in fact a kind of 
 notarial eertiticite explaining the nature and ohjints of the acieptance 
 .fitpnt prd/isl : lironki's Xnlari/, 114. It m.iy haii|)en that, after a part 
 payment of .a liill has heen made hy one [leisou s'ljira /'/■■./! ■■■•/, a further 
 jiart, or the halanee. is paid liy another j)erson ; in that case anotlier act 
 of honor is necessary for the security of the latter : Jliiil. 1,'{7. 
 
 ' Prior to this Act it was iieldthat the pei'son who takes up a hill Kii/>ni 
 pnitc-t, for the honor of a particular l)aity to the hill, succeeds to the 
 title of the person from u hom he receives it ; liut that '' lie couM not indorse 
 itovtr."' 'i'liere is nothing in tile Act giving etl'eet to tiiis latter part of 
 the decision, nor limiting the I'ight of a payer to foi' honor to transfer the 
 hill ; while s. In suh-s. '_', p. ")!, [irovides tliat when an overdue liill is 
 " indorsed '' it is to he deemed " a hill payable on demand : " Ptr .Malins. 
 V. C, in Ex jKutc ,S(raii, L. \l. U Jvj. ;{i)7. 
 
 *■' Without tills provision there would be no penalty on the holder of a 
 hill refusing to accept payment from a payer for honor. The right of a 
 stranger to intervene and pay a bill for honor is not founded on tlie Eng- 
 lish common law, but is a provision of the general law-merchant : />///'>; 
 on nil Is, -Jill. 
 
 Lost Tnstrumeitts. 
 
 ilH. Wliero a bill lias been lo.st before it i.s overdue, the 
 person who was holder of it iimy Jipply to the drawer to 
 t-ive him another bill of the same tenor, oivinff security to 
 inacmnity. the drawer, if required, to indemnify him against all pei.sons 
 whatever in case the bill alleged to have been lost shall be 
 i'ound again : 1 
 
 Holder's 
 ni;ht te 
 iliipliiiito of 
 lost bill. 
 Imp. Act,8.C9 
 
THK ISIIJ.S OF KX<'HAX(!i: ACT, 
 
 22.- 
 
 it, to have 
 lared liy a 
 
 a notary, 
 )r protixud 
 ion, or tilt 
 e wliolo or 
 
 to it : anil 
 ])arty, and 
 cii.'^tsdani 
 irds to till.' 
 
 ini;rcantiU- 
 k (ir agint, 
 icli till- act 
 
 (if pnsiiit- 
 \\u ciinnnon 
 liou'ir is liy 
 jt a kind of 
 
 actfptanuo 
 aftci- a part 
 I, a fintluT 
 anotliL'i' act 
 
 a bill .>■"/"•" 
 
 ceeils to tin- 
 
 nut indiiisc 
 
 litter part nt 
 
 itransloi 
 
 th 
 
 luc Oil 
 
 /V/' Malins. 
 
 older of 
 liuht of 
 
 lian 
 
 the I'.ng 
 t : Ha/' 
 
 2. It' till' drawoi', iiii recjucst ns afoifsiU'l, iil'iisis to j^ive Sec 
 
 Sec 68 
 
 Micli tliiplicato bill, he may lie c'i)iii[)ell('il tn ilo 
 
 '111 
 
 us clanse is 
 
 similar in etl'ect to s. 8 of 
 
 d lO W 
 
 III. 
 
 i: 
 
 (extended iiy .'{ and 4 Ann 
 
 to pi oiiii^sory Miites), wliiidi pinvicled that 
 
 ill case any inland hill of excliangu was hjst hefure the tinu^ of payniciit, 
 the drawer shmild lie uliligcd tn give aiinther of the same t> nnr, on the 
 l)cr.'^on gis'ing security to the drawer, it deiriaiiileil. to imhiiiidty him and 
 all iicrsona whatsoever in case the lost hill shoiihl he found a^aiii. l.i 
 Wiiliilshy V. Chilli, 1 \'es. Sen. .'{41, a case where goldsmith's notes had 
 
 heen lost, Lord Hardwicke. L. C, reliiseii relief, as there w; 
 
 dlidii 
 
 if 
 
 the loss, nor oder of indeiiinitx' : and he held that the plaintill' must seek his 
 remedy liy an action at law to recover the amount of the notes, '.iit in 
 
 Liiiiih.-- V. Mdisi', 14 Jur. SOO, where a I'he 
 
 (|U. 
 
 had h. 
 
 ist. and the 
 
 awer liad relllsed t<i 
 
 rive ano'lier. 
 
 1. 
 
 ave was ^iveii to tile a claim to 
 
 lel him to do so, on l)i;ing iiidemnilied. A person suing on a lost note 
 
 >lioiild, hefore action, tender an indeiniiitN to the maker. Ii h 
 
 jts 
 
 it will he at the risk of costs to defendant : lliti '/lo Jo 
 
 ■'/'' 
 
 Ca-ll 
 
 S>n(iiinii. i) 
 
 U. C. 1'. U. l.-.!l. 
 
 - I'he relief administered hy Courts of Kipiity was not confined within 
 le letter of the statute of 9 and 10 \\'illiam 111. It Ins hctii afl( riled 
 >t only on such hills as are mentioned in the statute hut on otlier.-, ; not 
 
 dv hi'tdre tlu'V are di 
 
 lit att( 
 
 not only on 
 
 hill,- 
 
 iiii on n"te: 
 
 not 
 
 dy agivinst the drawer, hut against tlie indorser, oi- the acceptor ; not 
 
 'ly 
 
 may a new hill, he reipured, hut payment. I>ut the Court 
 
 will not 
 
 11 upon a i)irty to renew or pay a lost liill without providing him with 
 satisfactory indemnity : A'///'.v on Hill-', '.M)2. 
 
 <»!>. In iiny notion or procecdinof upon u iiill, tlu' ooiii't 
 
 jiidye may order that tlie 
 
 loss () 
 
 t tl 
 
 le instrtinn'iit slia 
 
 11 
 
 Action on 
 h><l l.ilt. 
 lijip..\Ll,s.70 
 
 vit l)e set up, pro\ided an indeninity is oivoi to the satis- 
 ictiou of the court or jud_L;'e ayainst the elainis of any 
 ihor [)ersoii upt)U the instrument in ipiestinn I 
 
 \V( 
 
 luc, tl 
 
 le 
 
 lawer to 
 Icurity to 
 persons 
 hall he 
 
 T 
 
 lere was a similar nrovision 
 
 to tl 
 
 le aiiove in 
 
 tlK> (• 
 
 re Act ISot), whit 
 
 as re-en ■'•ted in C. S. U. C. 
 
 d It. S. (). 
 
 .")(). s. 14l{. IJiit in the last revision of the Ontario .Statiitt;s, tl 
 
 ic clause 
 
 itted 
 
 as unnecessary 
 
 Til 
 
 le clause in 
 
 th 
 
 hsli ( 
 
 iitaii 
 
 dure Act, of which the Ontario clause was a tivinsiript, has heen 
 led, as it applies not only to lulls and notes, hut to all other negoti- 
 
 I'll' instruments. The tender of indemnity should he made hefore action, 
 I'tlierwise the plaintitl' may have to pay the costs : Khi'j v. Zii/iiiu rniuii, 
 L U. t) C. 1'. 41)0. 
 
 29 
 
220 
 
 THE BILLS OF EXCHANGE ACT. 
 
 Sec 70. 
 
 Bill in a Set. 
 
 Mills ill ,.et.«, 
 'IMC bill. 
 
 10. Whore a bill is drawn in a set, each part of the set 
 ii.i|..Art >..7i ]„.j,,M- numbered, and contHiiiinnf a reference to the other 
 jiarts, the whole of the i)arts constitute one bill : ' 
 
 s. lo'i 
 
 ilnlilei- 
 iii'l'ii'siiit; to 
 iliir.Mciit 
 |ifr.soiis. 
 
 2. Where the holder of a set indorses two or more parts 
 to difierent persons, he is liable on every such pait, and 
 every imlorser subse([U('nt to lum is lial>le on the part he 
 has himself indorse*] as if the said parts were separate 
 
 bilh 
 
 s : 
 
 I'liority of 
 
 titl • illllMll;; 
 
 lioMcrs to 
 pri'vail. 
 
 Arcfptanee 
 
 on OIK". 
 
 ti. Where two or more parts of a set are nc<^otialed to 
 different holders in due course, the holder whose title lirst 
 accrues is, as between such holders, deemed the true owner 
 of the bill ; but n(jthiiiL;- in this sub-section shall afi'ect the 
 ri^'hts of a person who in due course accepts or pays the 
 part first presented to him : 
 
 4. The acceptance may be written on any part, anil it 
 must be written on one part only : 
 
 Drawer r, If the drawco accepts more tlian one part, and sucli 
 
 iiiori' is liable acceptcd parts ijet into the hands of difierent holdei-s in 
 
 on each. ' ' « 
 
 due course, he is liable on every such j^art as if it were; a 
 separate bill : •"< 
 
 I'aymcnt 
 without 
 
 0. When the acceptor of a Inll drawn in a set pays it, 
 'Uiiv.Mvof Avithout retiuiiinLT the part bearliii; his acceptance to be 
 
 proptM- part. _ ? 
 
 delivered up to him, and that part at maturity is jutstand- 
 ing in the hands of a lioMer in due course, he is liable to 
 the holder tliereof : 
 
 Dischar),'.", 7_ Subject to the preceding rules, where any one part of 
 a bill drawn in a set is discharged by payment or other- 
 wise, the whole bill is discharired. •* 
 
 ' l)illn ill a set are oomtiioiily used for foreign remittanoes, and they aii' 
 generally ideiititied asj "first of exchange,"" and " ,secon<l of e.xchanoe," 
 ite., so that if one belo.st in transmission, another can he avu'lahle. Ii, i.s 
 cotninoii for the drawer to draw, and deliver to the payee, seve-ai pai-t^. 
 commonly called a set, of the same bill of exchange, any ciepartof wliiili 
 
THK HILLS OF EXCHANGE A(T, 
 
 227 
 
 '^einrr paid, tlje others are to lie v,.,M Ti ■ • . 
 
 ouglU to eontda A adit ^^^^H jS' T:' '7'""'^- '^^'^■'' ^'-'^ 
 
 "tl'-s ro,nain unpaid ; in 11 U '"' . ""'^' ^" '""^' '^'^ "'^ '"" 
 
 ^« /^///.v s (i(j <r i ' ^' ^" '"■'^ °' tl"^ *"'"■■ tenor • Sforu 
 
 ''el.I that IJ. could not n,u„f.,i I' ""'"'■'"' '* '" '^- = '' ^^"'^^ 
 
 ntvu had them : /',,„,,/ ,, A7.r/v/<,,.;,, ;{ J} ,t S S,SS 
 
 aoJe^t:::;;:: i:,:;:::::';:--^;;^ rr-^'" r" •"-^•■' - ^"'■- ^--• 
 
 -a.toreuKnn in hi.s ha ds , . T' "'''^"' "' ^'^"-'"'-t th.t it 
 
 He afterward, aece nte "T' "''"'' •^^'^'"'^y ^^-'-^ «ivcM for it. 
 
 P-son. Ti.eae" ,t! lu "';"'"■'' """''^■'' l'-'^ f'"' -'lue to a third 
 '>f the,, ill hrs t;:^" r:^,:;;"*''^'' ^^r^'y ^« »- --1.... for the part 
 ti.e holder of the , -u t LT^ , '"' T ^'""" "" ^" ''"" =-"^'''>' 'hat 
 '-ill agau.t the II" ';'f ;:"''' ^"" ""^'^"^ ^" '•'=—'" the 
 tl- part «eoondl3^ ^^ t^rl "•■T'""' """" '""^ '"■"" '^''''^ "» 
 -l'..-.landeireila;r'^: J ;;:,:, ;'!'^.;-'; '•-: =--i't-l '"^'^ •-" 
 C. 449. ""^"'litiondly : lloUUwurth v. JItuUtr, 10 Ij. & 
 
 ■'' A banker indorsed for the hen, .(If n( . ,. 
 i'.a.set, uith the word. -^ LT^^^ .°^^'^''''"''''•' '^^'o parts of a hilj 
 --•tioa of the letter ' y •••'1':, T !' """"""' '''""' '"' ^'" 
 tlK.mtwobill.;andhenJ,..t ' 'w ' "' '"" '^''■'''''''^' "'"■^^''"t'' 
 a .lefenee, nor .rovi g J ; I ^ 's!: f h" T"'"^ "" ^"^ ^^'"-''"" ^ 
 
 'il'"ii the seeond of n s..^ „f i ' ~ ' ''"'^^ '''■'" '■ee(n-er 
 
 -■ «"K^.H.l:,, ;:, i:r'''";;i:,::,;';:;r' '-•"-■^'■^ ,"■- «■-. -^ 
 
 I .™..l.t more tl„,„ „,„. KM, , ."■'"-■ '"•'■"""'"'•"""'"I'-" 
 
 '•■I. All. 1-J!». 
 
 one hill of the set : C 
 
 omiiierrkU Bank v. h 
 
 nii/.i 
 
 ' All the parts of a .set of cxch; 
 '"L'nt or cancellation of either of 
 Cranston, 7 Johns. (X. V.) 442- s 
 
 iiigo constitute Iiiit 
 
 tlie set, ext 
 
 one hi 
 
 ill. 
 
 lud 
 
 ()8 ; ItHjhra 
 
 >n V. O'lhli! 
 
 iJall. i;;4. 
 
 J). Mill,,- V. //ari- 
 
 iii^'iiishes all ; J),,,-/: 
 
 p'ly 
 
 ">/, Anth. (X. V.) 
 
 Goiijiid of Laivs.'i 
 Juiuiiitio.s ot the pui'tie.s t ieivf,()'ii'<:> J,.f,.... • i ,. ., conflict. 
 
 Iliil Act. 
 8. 134. 
 
'22S 
 
 THE IJIIJ.S OF KXCHAXGE ACT. 
 
 Sec 71. 
 
 Vnliilitv <>( 
 bill lioH 
 ileteriimicd. 
 
 I'ro\ iso. 
 
 l-'ciritrii 
 
 not ri-f(ig- 
 iiizcj. 
 
 I.iiw of 
 I'linmlii to 
 prf\ ail . 
 
 imlorcins; 
 of bill. 
 
 Iiilaml 1)111 
 
 indorfiod 
 
 aliroad. 
 
 Law of (ilace 
 ijovcriis 
 dutit? of 
 holdor. 
 
 riiiindiHn 
 cuirt'iRy. 
 
 Exchange. stlj' 
 
 ('{) The validity of a 1)ill as n.'gard.s requisites in form 
 is (leterinincd Ly tlio law of the place of issue, and the 
 validity as regards requisites in i'orm of tlu supeiveniuij 
 contracts, such as acceptauce, or ind(;rsement, oi' acceptance 
 fiupvd protest, is determined by the law of the jilace whei't; 
 such contract was made : - 
 
 Provided tliat — 
 
 (1) Where a l)ill is issuiMl out of (Janada.it is not invalid 
 by r<'Mson only that it is not stamped in accoi'dance with 
 the law of the [ilace of issue \'^ 
 
 (2) Where a niil, issueil out of Canada, cnnfornis, as 
 regards reipiisites in form, to the hiw of Canada, it may, 
 for the pui'pose of enrcjreing payment thereof, lie treateil as 
 valid as between all persons who negotiate, liold or lieeome 
 parties to it in Canada ; + 
 
 [l>) Subjcet to the provisions of this Act, the intcrjireta- 
 tion of tlie drawing, indorsement, acceptance or aece[itance 
 )<H[ii(i ])i'ote.st of a bill, is determined by the law of the 
 place where such contract is made ; '"' 
 
 Pro\ided, that where an inland bill is indoi'sed in a 
 foreign colli. tiy, the imlorsement shall, as regards the paxcr, 
 be interpreted aceoi'ding to the law of Canada: o 
 
 ((') The duties of the holder with respeet to pi'esentment 
 for ncce])tance oi payment and the necssity for oi- suflici- 
 ency of a protest or notice of dishonor, or otherwise, are 
 determined by the law of the place where the act is don(; 
 or the bill is dishonored ; 7 
 
 (r/) Where a bill is drawn out of but payable in Canada, 
 and the sum paj-able is not expressed in the currency of 
 Canaila, the amount shall, in the absence of some express 
 ition, be calculated acc(U"din»jf to the rate of exchaniii' 
 
 for sight diaft.s at the place of payment on the day the bill 
 
 IS 
 
 payable ; ^ 
 
THE TUr.I.S f)P KXCHAXfJK ACT. 
 
 ''*'!> 
 
 in form 
 and the 
 livening 
 ;eptaiicc 
 
 t invalid 
 ice with 
 
 tornis, as 
 1, it luaV; 
 reated as 
 )i' licconie 
 
 iterpveta- 
 lcee[itance 
 
 w () 
 
 1' tl 
 
 ic 
 
 scd in a 
 If payer, 
 
 ■^rntnient 
 
 )!• sutlici- 
 
 wiso, are 
 
 is don(" 
 
 (('■) Whei'e a liill is drawn in one country and is jiMyaMc Sec 71- 
 1)1 aiK.'ther, the due date tliereof is deterniiiied according to Diu'daif. 
 the law of the ))]ace where it is payable. -^ 
 
 ( /') If a hill or note, i)resonted for acceptance, or payahle Korcimi 
 out of Caniida, is itrotested for non-aeceiitance or ii()n-|)av- ;"""" /<'<■•'( 
 
 ' '■ , eviili'iioe. 
 
 nient, a notarial copy of the protest ami of the notice of 
 dislionor, and a notarial ccrtiticate of the service of such 
 notice, shall he receivcii in all courts, as prinui. facie 
 evidence (jf such protest, notice and service. '^ 
 
 ' Tt has ni)t hevu usual toclolhii', liy li'i_'ifilativc ciiautnu'iit, tlu' jiriuriplrs 
 wliic'i arr to L;ui<le tlie Courts in the intci'iirft.itiou of contrarts wliirli 
 .'UT cimtnillud in tlicir (■ou.stiiictiou or tjU'oct liy foreign laws. Tiio niiiiii- 
 ci|pal laws of a nation liavu no force extra-territorially ; ami foreign laws 
 aU'ecting contrai ts have hee^ii treated by tlie Courts as facts ami eireuni- 
 st;inees of tlio same nialei'iality to the <l(!terniinatioii of tlie rigiits of the 
 jiarties, as ait; otlier faets wliieh arc; re(|uircil to lie proved in litigation on a 
 (•oiitrai'l made within the jurisdiction. " It is dillieidt to t'onei.'ive u|ion 
 ■\\ hat gi'onnd a claim can he restt'd, to give to any n)unieiii,al laws an extra- 
 territorial ell'eet, espeeially when those livwsare ])lcjudieal to the lights of 
 (itlier nations, or to thos(; of tin \v suhjoets. It would at oiiee annihilate 
 the sovereignity and equality of every n.ition, which would be called ujion 
 to recognize ami enforce them, oreonijiel it to desert its own proyjcr inter- 
 ests anil liuty to its own subjects, in f.ivor of strangers, who were regard- 
 less of both. A claim so naked of any prineiple or just autiidrity to 
 support it, is wlwdly iiiadmissil)le : " Slunj mi ('unjlici nj I.nirs, a. 'A2. 
 l-lvery nation must judge for its(df w hat is its true duty in tlie adminis- 
 tration of jnstii'e in its domestic tiilninals. It is not to be tdieii for 
 granted that tiie rule of thi' foreign nation is ri'dit, ami that its own rule 
 
 Tlie true foundation on which the administration o 
 
 .f iut 
 
 erna- 
 
 tional law must rest is, th.at the rules wiiieh are to irovern, are th 
 
 ■\\ hicii arise from mutual interest and ntiiitv, from a 
 
 .f t 
 
 le Mieoii- 
 
 vcniences which would result from a contrary ihictrine, and from a sort 
 ot moral necessity to <lo justice, in order that justice may bi; clone ti: us 
 
 in return 
 
 Ihi'l. 
 
 :{.■ 
 
 n Canada, 
 ■reiicy of 
 express 
 exchange 
 y the hid 
 
 - This clause deals \\ ith th 
 
 lidit 
 
 V as regan 
 
 reiiuisites 111 torin 
 
 aiK 
 
 a liill f)f cxchan<. 
 
 shall deterii 
 
 the ]ilaee (f)r places) of 
 
 1 prescribes (1) that the law of the ]daee of 
 
 the reiiuisites in form of the bill, ami ("_') that tin; law of 
 'ii/it/ii'i: or hiilnrsi nil III shall determine the 
 
 rei|uisites ill form of such acctptauce or indorsement. IJy the second 
 chiuse of the proviso, where a bill issued out of Canada, and therefore a 
 foreign bill, eonfoiins, as regards form, to the laws of ( 'anaila, it may be 
 treated as valid between all persons w jio become parties to it in Canada ; 
 
2:50 
 
 TIIK lULLS (tF KXclIAXGK ACT. 
 
 Sec 71 so tliat a foreij^!! bill, altliougli iiivaliil in its own oouiiti'v, may, if otlur- 
 wisi' in the Canaili.m form, lie ciit'oiTcd against tliose who liad bci'onie- 
 parties to it in Canada, ('lauso (/<) deals with the contract of drawing 
 acccjiting and indorsing a hdl ; and prescribes that the rontravl .shall be 
 inteipi'cted accoi'ding to the law of the place whore sucli contract is made; 
 but th(! proviso to tliis clause exempts fruni its operation iidand bills' 
 ind(iis<'d in a ffjreign conntrj'. The opinion of jurists, which has been 
 recoL:ni/cd in the dcci-sions of the ilnglish and American Courts, is that 
 tiie contract, in respect of the ciniiMstances esscidial to its validity, and 
 the rights .■ind ol)ligations which itsnlt fr;ini it, is governed l)y the law, 
 either of the place i?i which it is inadc;, or in that of which it is to be ]ier- 
 fornii'd. 'I'Ik; place in \\liicli it is made is ])resuined to lie that in which it 
 is to be perfornicd ; unless the contract expresses that it is to be performed 
 in some other place. Heme the law of the country in which the con- 
 tract is maile is that by which it is to be entirely governed, unless iti* 
 performance is to take place elsewhere. The jurists treat as the forms 
 and solemnities of the cimtract, whatever formality or ceremony, either 
 as to time or j)lace, or manner of making the contract, or as to its form, 
 whether it may be by parol, or must be in writing, its attestation or 
 authentication, and whatever the law renders essential to the perfection 
 and v.alidity of the contract, and re(juires to be observed, as the condition 
 on which it recognizes the existence of the contract : .'} Ihinjr an Cuhniial 
 (Dill l''(ii-c(iiii Liiir, ToS. Thus if the law of the conntiy wheie the con 
 tract is made, annuls a contiact if made on a Sunday, or in a partieulai 
 place, as a prison or a tavern ; contracts made in violation of such law, 
 would be void in whatever country they were sought to be enforced. 
 So a contnict made in ( 'auada, whiidi under the jirovisioiis of th' 
 (Statute of l''rauds, is rcipiircd to be in writing iiiid signed iiy the party 
 to be bounil, \\ould lie invalid in every other country. l>iit a [latrcd con- 
 tract made in a lor.ign countiy whose law authorizes a similar contract 
 l)y parol, would be valid and enlorceable in Canada. It does not appear 
 to have been sanctioned as yet, that if both the parties to a bill are 
 foreigners, they should be presumed to contract according to the law of 
 the country with which they are ac(]naiiited, namely that of the place 
 of their douiicil, and not according to tlu^ law of the place with which they 
 are unacipiainted, though the contract may have bcjn made there : 3 liiirii<: 
 1)11 C'lifdiiidl amf Foru'i/}! Line, 7T<). 
 
 Tl 
 
 ic cases make a i 
 
 listinction between a contract void for want of a 
 
 stani]), by the law of the country where innde ; and its rejcetifui for want of 
 a stamj), as evidence in the Courts of such country. If for want of a 
 stamp, a contract made in a foreign country is void, it c.in'.iot be enforced 
 here ; but if for want of the st.iniit reipiired by the I'cvemu' laws of the 
 foi'ciirn state, it cannot bt? received in evidence there, it is nevertheless, 
 
 ibi 
 
 iilmissil)le ni (^vulencc here 
 
 Bri.'ih. 
 
 !!/>■ 
 
 i: 
 
 JfO. 
 
 The 
 
 dc 
 
 on a con 
 
 is the same in the Unitcil States, - that if the stamp is reipnred 
 
 tract a.s a nwvv revenue imposition, the want of it will not be noticed 
 
THE RILLS OF KXCIIANGE ACT. 
 
 2:U 
 
 y, if otlur- 
 liul beeonie 
 of drawing 
 ivl shall be 
 let is iiniilr ; 
 iiilimd liills' 
 ell hllH liccn 
 irts, is that 
 iilidity. and 
 hy the law, 
 is to ))(' iier- 
 in which it 
 e performed 
 ch the con- 
 1, unless it» 
 s the forms 
 lony, either 
 to its form, 
 testation or 
 e iierfeetion 
 lie condition 
 on GohiHiiil 
 ere the eon 
 a particular 
 if such law, 
 le enforced, 
 'ons of th' 
 the party 
 [latrcil con- 
 lar contract 
 not appear 
 a hill are 
 the law of 
 if the place 
 which tiiey 
 •e : ;} Bimje 
 
 V want oi a 
 
 for want of 
 
 wAwi of a 
 
 enforced 
 
 laws of the 
 
 vertlielcss, 
 
 The rule 
 
 1 on a con 
 
 e noticed in 
 
 \v 
 
 foreign ( 'on rts. Fliit where a contract, for want of a stamp is void hy Sec 71- 
 the law to whieli it is subject, it is void everyw litre : Whiirftni'x Coiijlid 
 ()/ Lair.i, s. ()S,S. It has hecn laiil down as a settlc(l j)riiiciplc, tliat no 
 nation is l)oinid to piotcct, or to regard, the revenue laws of iiiotlicr 
 I'ountry ; and therefore a contract made in diu' country, liy suhjtrts or 
 residents there, to evade tiie revenue laws of anothei' country, is not 
 deemed illei,'al in the country of its <uii,'in. 'I'his jjiinciple has lieen 
 strongly argui^d against as ln.'ing incnnsi-trnt witli gooil faitii, and the 
 moral duties of nations : S/uri/ mi ('onjl'ict <il' Lnii-\, s. '17 ~, . I'nfdrtunately 
 from a very (|uestionalile sulix i vieucy to nu're comiut i\ial gains, it has 
 become an established fiu'mulary of tiie jiirisiirndrnci^ of tlie niiiimnn 
 law, that no nation will regard or I'liforce the n^venue law.-- of any other 
 countiy; ami that the contracts of its ciwn sidijects mad'' ti> evade or 
 defraud the laws or just rights of f(jri'ign nations, nuiy Ije cnf'iri'ed in its 
 fiwn tribunals : Ilnd, s. 24."). Tiiere wonld seem to be otlicr reasons foi' 
 not enfori'ing the revenue laws of a fin'cign country. Surji laws are for 
 the uolleetioii and enforcement of down or Statr dues, whi'ii aic imp">i'd 
 upon the subjects of the foreign country for the support of their govciu 
 mcnt. Fr(Un necessity, it is the univei-sal pi'actiee of nations to att;u'l: a 
 ])enalty to a breach of their reV(;nne l.iws ; and it is ,'i universally concedi'd 
 nuvxiin that tho penal laws of one country air, under mi <ii 'luiistanees 
 whatever, to be executed in anotin.'r; and even under nnr extradition trea- 
 ties tiie "crime' must be one dftiiied by (!;uiadiiii law. licsidcs being 
 penal, there is a variety of rules lor tho administration of thr ii'\>nue 
 laws of foreii.'!! n.itions. Some provide iin rcHef against a bnach ; otlnrs 
 u'ive a limited time witliiii which tlu' duty or tax may be paid ; dtlurs 
 increase the (juantuin of tiir duty oi' tax, and .dlow it to lie paid up to tiie 
 time of trial, 'i'he forum of litiijation uoiiid liave no jurisdiction to n rant 
 reliel', where such ispermittt-d by tin' fonii.'-u l.iw; aiul it lias no inarhiiu'ry 
 to enforce tlie original or increased duty nr tix; fur tlic forei'.'ii u:ovi'rn- 
 iiu'iit has no revenue oHicer for the cullcetioii of siicli duty '<r t ix w itliiii 
 its jurisdiction. And if the forum rccogni/ed siu'h ii'Vcnuc laws in gen- 
 eral, it would have to enforce tlielii in tlieir details. The gilicial words 
 of this clause clearly exclude the v\\\v^ nf ihc foreign law ,is tn cvid'Hce ; 
 l)ut they ari' (extensive enough to jircvcnt the rccoi.'niti(ui or apjilicaticui of 
 any rule of a foreign law which niaiu's tiic cnntiact in .'i bill or mitc Miid, 
 .IS well as iiiaclniis.^iblc .-i?, evidence, foi- w.mt nf a >taiii|). 
 
 ll.IJ STUAIliiNs. 
 
 A bill drawn by a domiiilccl Scotchman « hiii in rar.iguay iipo7i a 
 drawee in Scotland, wlio did not accept, in favor of ji l'reiiclim;ni iisidine 
 in Paris, is an iiihind bill betwct'ii driwernud |i,iyee, ami tiie Ciurt will 
 not give etlei't to the law oi Paraguay, th.it such liil is void for want of a 
 stamp : S/i u-ar/ w (!<l<it, !( .Scss. ('a-<. .'! Sec. Ill.")7. 
 
 A Imlder in:iy recover in an Hnglisli Court on a bill di.iw n in France on 
 a French stamp. althoiiLrh. in eoiise(pience ol its n.it bein',,' in the form 
 rc(piii'cd by tile ['"reiicii coilc, he had f.iih'd in an actidn whicli lie had 
 brought on it in l''ranee : \\ i/iiiic v. Jac/i-iim, '2 Russ. .Sol. 
 
THK I?II,I,S (II'' KXriIANCK ACT. 
 
 Sec 71- ■• This clauHo of till' proviso is a iiioiliric;ition <(f tlin rule ])ri'S('ril)e<l in 
 ' Hiilis. (n) ; ami allo.vs tlio Court, in an action on a liill issiiei] out of ( 'anada, 
 
 ami tluM'tiforo a foriiyn liill, to oxcUiilu tividcnuo of tlu; foreign law; and to 
 deal with till' c iseas between the parties who had negotiated, held or 
 hueoine p u ties to it, as if it were an inland bill. It sometimes hap))ens 
 that the eviilence of foreign experts, piri/ns rirtn/c njllrii, as to the law of 
 tiii'irown country, is conflicting; and in the ease of /'i .V(0-.v< ///<>• /!. <(• A. 
 r.)., ,'{0 Ch. I). (■)().'{, the learned judge intiniatc.l tliat upon the evidinc<^ 
 of {"'remli experts, he \void<l hue hail great diliiculty in sayiui,' what was 
 the 1 iw of l''ranct', with reg ird to the f.icts lieffire hiiir. Such a c;ise of 
 tlilliiulty was ohseived up'ni by Lord l.,an^'ilale, M. 1!., in an earliiM- case 
 as lollou s : If the utmost strictness were reiiuired in every case of 
 proving toieign laws, justice might ofti'U li.ive to stand still ; and there 
 may, therefore, be cases in whii.'h the judge might, \\itho>it impropiiety, 
 take upon himsell' to construe the words of a foreign law, and deterinine 
 tl". 'ir application to the case iii ipiestion, especially if there slioidd be a 
 vaiiance, or want of clearness, in the testimony : Xr/>:<i)i v. liri'lpnrt, K 
 lieav. ■^'■M . Where the foreign law dillers from our law, it should be 
 l)lead.Ml: ll,.,,r v. Caldwdl, 21 U. C. ('. 1'. '1\\ ; Rnhn-t^nn v. Cahbrtll, 31 
 U. C. (.». I!. Ml. 
 
 iLMSTR.VTnjNS. 
 
 A bill n.'is draw n and aijcepted in I'aris, j):iy;dile in I'lnglind ; Held. 
 tli.it although the rule is tli.it the v.iliility and iiiter|)ret ition of a contract 
 are governed by file law of the countiy where niadc^ yet the consi'(|Uences 
 of non-payment are to be governed by the law of the country whei'c the 
 payment was conti'acted to be made ; and the default having been made in 
 I'lnglan 1, interest was payaiilc accordiui; to I'jiglish, and not the I"'rencli, 
 law : C'i'iiii'f w Earl UnAAynu'i , '2 Beav. 'J.S'2. 
 
 1>. acted .as .agent in M.ilta for A., for llic puri)iisc of buying and remit- 
 ting to him in l']n.;laiid, bills on Engl.ind, on account of money received by 
 I>. in .Malta. In the course of the agency he puri'lDsed bills in M.ilta, 
 auii indorsed tlieni to A. without any reservation in the indorsement as to 
 his liability ; — IT 'Id, that in the absence of speci il circuinst inces. shewing 
 tliat any lial)ility wis intended by the !,'eiiei'al mercantile law. wliii'h must 
 be i.ikcii to be in fori'e in Malta, that 1!. w.is not liable to A. upon the 
 bills being dishonored : ('nsi,-i'/i(<- v. Iliifli jh j, 10 .Moire P (J. !) 1. 
 
 A 1 ill of <',\chan^'e w.is drawn in Franc;! by a domiciled Frenchman in 
 the l''rench language, but in tie' I'oian of an Fnglish bill ; it was accepted 
 by an I'jiglisli com)) any, to which it was address<'d, .and was then indorsed 
 in {''ranee by the dr.iwcr to an I'higlislimaii, but in a form which was 
 invalid according to the l''rench law ; — Held to be an l''imlisli bill of ox- 
 ehange for all [)ur)>oses : X«/'////)r(;/. '.s- niiil iirnni/oii'.-i Casat, ,'{() (h. D. AlKi. 
 
 ■ This clause deals with the interpretation of the contract of drawing, 
 accepting, and indoi'sing, a foreign bill ; but the |)roviso cxeuqits from its 
 <iperatiiin, inland bills indorsed in .a foreign country. The contract of the 
 drawer and iiulorser of a foreign bill is not an engagement to |)ay the bill 
 at the place in which it is drawn, but toguar.antee that it shall be acceiitcil 
 and paid there by the person on whom it is drawn ; and on his defavilt, 
 that they will reimburse the holder the priiiicipal damages, in the plnce 
 
s(;ril)U(l in 
 )f ("anaila, 
 ,w; ami tn 
 mI, hild or 
 s ba]>ii('iis 
 tlie law i)f 
 f,'.-< /.'. .(• L. 
 
 eviili'iic<^ 
 wliiit was 
 
 1 a casu of 
 larlicr case 
 I'v case of 
 
 anil there 
 iprii]iiiety, 
 
 ilctci'iniiie 
 loiiM be a 
 lri'/)>'irl, K 
 
 sliinild l)e 
 ahhnll 'M 
 
 <1;- HeM, 
 a ciiiitr.iL't 
 iLseijiK'nces 
 [wliere tlic 
 [■n niaiU' in 
 {''rencli, 
 
 il reniit- 
 M'i\< il liy 
 11 Malta, 
 lent as to 
 
 sliewinj,' 
 iji'li must 
 111)1111 the 
 
 Imian in 
 ai-(!e|itt'il 
 imliiiseil 
 hicli was 
 ill of ex- 
 
 . 1). r.'jii. 
 
 drawing, 
 :s from its 
 act of tlie 
 ly the hill 
 (; aeee]iteil 
 is (lefavilt. 
 
 the plf>ce 
 
 'I'lii: r.iM.s OF i;.\(ii.\\(iK act. 
 
 V, her(^ the <oiitiart is made ; th.'il is whrre it wis ilrawii in the one ease, 
 and ill tiie other wheie it was indorsed : .'{ //(/v/e mt ('nltiii'ml (iml I'ori njii 
 L'liH, ~~',\. The /' .r /(»'/ ro////''/(7/(x deteriniiies tile rate of d iniaL,'es wilieli 
 al'i' reeo\i lalile. Tla^ drawel' is liiihh' fur those j^dveii 1)V tlie hiw of the 
 )iliie(^ where tile 1ii|l is dlMWU ; lillt the indorse!' is laliK' for tllo^e ;^'ivtni 
 
 hy tile law of tin; |ilaee when' lie iiiclorsed the hill : Ihiil, J'.iit the ease 4if 
 indorsing an inland hill in a foreign eoniitry is a|i|iro|iri,itely made suhjeet 
 to the laws (if ( '.inada. An inland lull is, hy its d( liiiition ins. t .i home 
 eniitrai't. ^iiid is not siihjeut to foreign law ; ainl therefure all its ineideiits 
 as to form, and the rights and li;»!iilities (.f tlie [lartii's tn it, must eoiiform 
 to the law of its own country. 
 
 llI.rsi'UATlHNS. 
 
 If a hill is drawn in onci enuiitry and piyalile in aimther, and dishonor- 
 ed, the dr.iw er is lialile according to the /i .r Inrl riin/rtichK, and not the 
 law of the eoiintrv where tin.' hill is made payable : AUi-n v. Kiiiil>/r,(\ 
 .Mnore, P. ('. .'{I. 
 
 A hill drawn. aec(pteiland payable in I'aiLdand. was ind'Used in l'"rance 
 aecording to iMi'.dish law. but not aeeonling to the law of I''iaiu'e. The 
 drawer wlio was the indnrser, and indorsee were, when the bill was made 
 and indin'se<l, siilijects of l'"i'aiiee, resident and domii iled there : - TIehl, 
 that the ciPiitraet of thi- aeceptm- must be Ltoverned liy the law of KuLrlaii 1, 
 and therefore the indorsee eniild maintain an action in I'lnglaiiil ,i!.'ainst 
 the acceptor: L'h.lv. Tm I; r. I.. K. :!(.). 1'.. 77. 
 
 A bill was draw n in France np'iii and ;icce|ited liv the drawee in London, 
 anil indorsed in France, but not .so as to convey to the indorsee, aeconling to 
 the I'^rench law, any y)ro])erty in, or riu'ht to sue upon, the bill there in his 
 own naiiie : Held, that by the law of Fi'ance such ind.rsenient opci'.ited 
 IS a iii'iicur ition, and entitled tlie indorsee to sue in his own name, and 
 til it therefore the aceev>tor was liable to an aetiini in this countrx' at the 
 suit of such indorsee : IhinlJaiiiih v. />-■ A'///, F,. 1!. .*? ( '. I'. r,:\S ■ 1.. I!. ."> 
 ('. I'. 47:i. See Storii on Cniijl'h't of f.rnr-i, (SIh ed. ) p. iAOii. 
 
 A bill drawn and indorsrd in I-lnvland iipmi l''reiie|i subjects, was 
 aceepted by them in Paris, and was ])ayable on the ."itli ( tetober, 1870. 
 lii'fore that <lat<'. the P'reiieh ( !o\('nimeiit in c(mseipience of the Frain-o- 
 ( iernian war, enlarircd the time for the iia\nieut ml ])i'otestiiiL:' of bills 
 nf escliange, bv which the bill did not liccome pivable until the ."ttli 
 Sejiteinber, IS7I I -Held, that tin; enlargement of the time of payment 
 did not release the indorsers : /'ow/"'//, v. ')rrriii'nin, L. R. l(t {.). ]',. 
 ."•'_'( I. Hilt see ttie ne.xt case. 
 
 The riudits and liabilities of the indnrser and iixlorsee of .-i liill depend 
 noon the 1 iw of the |)lace where the contract of indorsement is made : 
 Jfonir V. Ix'olOiU'Ki, .3 (,>. I!. I>. .")1 \. 
 
 Iiv the law-mereliant a bill of e\ihaiig(.' may be indorsed .iluoad, and 
 t h(> iiiilorser undertakes some liability in respect of s;ieh indorsement 
 abroad which raises a laintract between the immediate indor.ser and 
 indorsee : //"''/. 
 
 .\. in I'aigland drew a bill on ^5. in a foreit,'n country, which, after 
 havini; bi'en iie,'otiated thi'(Mii,di anotluM' foreign country, was presi'nted 
 to n. . who refustul to pay because the law of the country in whiidi lie 
 Tcsi led. prohibited such |)nyment ; — Held, that the dr.'iwer was liable for 
 the whole amoiiiit of the re cxcliaiige between the ditlerent countries : 
 .1/i '//.K/f V. Sinirmi, 2 If. I'.l. .TS. 
 30 
 
 Sec. 71. 
 
■^"■■■I 
 
 41 
 
 2:{4 
 
 TIIK lill.hs oK KXCIIANOi; ACT. 
 
 Sec. 71 A iiotf iii.kIc licir |),iyalilc ;it a |iliicc in tlio riiitci) .'<t itcs, wifhnnt 
 
 • liiiiiliiiy it " iiui ot iui wise iir cNcw lici'c," i.s |inyiil)li' j^iiitT.iliy, iiinl tlic 
 
 law aiKJ ciii-riiicv nf tlif pl.icc of ('(iiitiact iiiiiMt govern ; llnuki r v. /.iilii , 
 
 '21 V. ('. (). 15. 'hr>. Sec :A>n .1/.//M- V. II nirhhi.^u,,. ic. r. (*. «,). r.. 47<>. 
 
 A li.M'd l.iw at tlic foreign plact' of cliaw inj,', as to tlic ilaiiiaj,'cs ;iiiil 
 interest foi' non-pavinent ot a l)iil, liimls the ili.i^cr as ,i p.irt ot' liis con- 
 tract ; Hi stair insHiaiiri ( 'niii/iaini, IVJ I,. ,1. Cii. :?()(): !».Inr. N. S. 2W. 
 
 A. lirih'.' a resident in Ont.irio, while tenipor.arily in New N'or]<, drew a 
 liili on U. ill 'I'oidnto. in favor of a New S'nrk tirni, w liieli was relnsed 
 aeeeiit.mee, and iirotesteil : Hcdd. that th(! eoiitr.iet, notw itlist iiidini; 
 tiiiit A. anil I'l. are doniii'ihd in Ontiirio. nuisl lie governed lij- the hiw of 
 Kuw \ovk: SI,, i;/ V. Mr Kill/ I.") Ont. It. iCi'.l. 
 
 Ill deidariiiL; on a note drawn in a toreiyn laiigu.age, '*-s nie:ininn in 
 I'lnglisli may lie .ivi'iii'ii, as in tliis form : tiie snm of two hundn d luiiis 
 current niiiiie\'. nieanin_' theichy tiu' snni of two linndred |)''unds of hiw- 
 fnl money of Cinada : <.'ll''i v. 'M,,rlsrii, , 4 I'. ( '. (,>. iJ. -Jd."). 
 
 Where a note made .'iiid payalde in Oi.'denslinrg, Xew N'orU. mati'-ed 
 liofore the LTnited St.ites mad<' trea.snrv notes a h'uai teii(hr there, tlie 
 ])hiiiiti(r wa.s III Id entitled to the sum made ]iayalile hy the note at tile 
 iinje it matured, without reference to tlic r.ite of exchange existing 
 lietwcen Canada .iliil tlie I'nited .St/ites. at the tinii' of the tiial : .liul-trni 
 
 V. (hHJhi, i:j u. c. c. 1*. :<■)(). 
 
 '■• " Tlu^ r,aw of Canada." The sources of the Cin.idiaii law have Ikm'm 
 v.irious : .iiid there has liecii as yet no judicial clccision giving an exact 
 and accurate rcnilering of the term •• Law of Canada." In considering 
 the gineral (lUestion, it must he reinemhei'ed that ])ai't of the territoi'y now 
 within the jurisdiction of tlie dominion, was aci(uired liy settlement, and 
 ]>art liy coiujuest. The jiaits, so scpaiati ly aci|nire(l, have to lie lirought 
 within the oiicration of clear .ind W('ll recogni/ed rules, l»y whicii the 
 •sources of their original laws may lie ascertained and determined. These 
 rules were promulgated hy the Imperial I'rivy ( oniu'il in 17--. as follows : 
 (1) In c(Uiiitries originally settled by I'.ritish suhjects. the i oniinon and .sta- 
 tute laws of England est.ihlisheil at the settlement, and applic.ihlc to their 
 .situation and condition, are in force ; hut not tin; taws made after such 
 country had ln'cn inhaliiti'd by the l''nglisli, unless such later laws were 
 made expressly a|)iilicalilc to the i-olonies : 'J /'. W'uix. 7"). In countries so 
 st'ttled, there heing no ])ieceding laws in force, to contest the superiority 
 with thcni, the common and statute laws of flngland applicable to their 
 condition, are in force : ('lurk's Colnnlnl Lair, 7, (-J) In countries aci|nii'ed 
 l)y con(|ncst or cession, the foinier laws remain in fmce, until provision is 
 mad I' for their govcriinient by the Crown (w hich has the powei-of legislation 
 by ()rder-iu-Couiicil), or by I'arli.iment : Mil/son ('()h>ii'«tl Con fill ntUmi, 10. 
 And the'-e the compieror may impose on the inhabitants what laws he 
 pleases: '_'/'. \Viii.<. ~,'\. (."}) Until such law s are given by the conqueror, 
 th(! laws and customs of the compiercd country are to prevail : Ih'ttl. The 
 King, without the concurrence of I'ai'li.unent, has full power of legislation 
 in a conipieied c-ountry ; but such legislation is subordinate to the King's 
 own authority in I'arliameiit : and he cannot change fundamental ])rin('i 
 
s, witlidtit 
 y, lunl tliu 
 
 (• V. /,' -/l' , 
 
 . 11. ITC. 
 
 iiiij^i'S ;ili(l 
 111' liis con- 
 X. S. 'i'.tS. 
 
 rk, drew a 
 as rt'tiiscd 
 tlistiiiilini,' 
 till' liisv uf 
 
 nc;nuim 1" 
 mind Idiiis 
 nils (if law 
 
 k. inatr"('il 
 r tliiTc, tlie 
 iKiti' at the 
 l;c existing 
 ial : ./u<lio)t 
 
 ,• li.ivo l)oen 
 utj; an exact 
 eonsidel inj; 
 iritorv now 
 lenient, ami 
 lie ln'ini^lit 
 which the 
 ic.l. These 
 s follows : 
 n ,111(1 sta- 
 le to their 
 iftcr such 
 laws were 
 mntries so 
 suiH'iiority 
 e to their 
 ■s accjuired 
 rovisioii is 
 h'^i^latioll 
 /nlioii'i, 1!V 
 at laws he 
 coiKjnerof. 
 Ihiil. The 
 legislation 
 the Kinu's 
 iital jirinci 
 
 rUK IIFLLS OK EXCIIANiiK A( T. 
 
 ])les, which form part of the const i tut ion. I'.iit \\ here a local con^titnl ion i - 
 j,'i'ant('(l to a colony iief|uired hy coiKiuest, the ('rown, hy such L'l'.int, pre 
 eludes itself thereafter from the exeicise of the sole lej.rislati\c autlioiity 
 over snch colony, and sindi L;r,int is ii're\ ocahle : ('h't/niiiiii v. IhilK "JO 
 How. St. Tr. '_'.'{(»; s c. Cowj). '.'(H. The ten itoiy of diitai io and <,>iii luc 
 was ac(|nirc(l hy coii(]iiest in I7(i<l; and ii\alloyal I'l-oi liinal imi of 17'»'l. 
 a small I'locince, cdleil \»iielicc, was cstalili^hcd w itliin Mi:it tdlitoiy, and 
 was ;;,'i'ante(l a loc;il legislature \\lii(li w.is ,iutliori/cd to make liws "as 
 near as in;iy he aizl'ce.ihle to the la«s of I'",n'_d ind." It was further pm 
 vi(U'(l that until smdi laws were made, the inhahit.iuts were to li.iv c " the 
 onjoyinent of the hciielit of the liiws of KiiLdaiid." '■ .\s .^oon ;is ('inula 
 ceased to lieloni,' to France the law of Canadii eeasied to exist, .ind the \:\\\ 
 of Kneland cami^ in :" I'n- Smith, d., in Corsi v. ('«vr, 4 L. (', .1. ;?1 I 
 In 1774, th(! Qiieliec Act. I I (leorue IFI., c. K\, provided that within \\li;(t 
 is now Ontario and (^Mudiec, "in .ill matters of c(.iitid\ crsv illative to 
 property and civil rights, resort sh;ill he had to tic laws of <'.ina(hi. " 
 (s. S). The (Vmstitution.il Act of 1701. .'il (omu-c II1..c. ."I. which 
 pstilhlished the two I'roviiices of I']iper ,ind f.owcr Caii.idii. iiiithoii/i d 
 th(! locjil lei^'islatiirc of each province, to ncike law> for t he iicacc, wcl 
 fare and ^'ood i,'oveiniuent thereof. In Lower Ciuadji, now Quchec. 
 the Kreiich Canadi.in l.iw h.is ri>iuaiiic(l in furce, cvic|it wlicic it hii.- 
 heeii siil)se(|ii(ntly altered hy Imperi:d legislation. The only l'!ii/!i.--li 
 law introdnccil into Lower ('aiiada ((,>iiel)cc) was that nlatiiiLf to the 
 tenure of lands: Sfnrnr/ v, /luirnnni. 'A !,. ( '. L', 'Jll ; the law rcliitiliLi 
 to wills: Miiiiiiiiii/f V. M(i/i>, L. I!. 4 I', ('. I'i;! ; :nu\ the i.iw n dating to 
 lulls and notes: Mm ihuinlil \. Wlilljii hi , S \pp. (as. 7."!.>. In I'lipcr 
 
 Sec. 71 
 
 (' 
 
 mada, now Ontario, the l'"rencli ('.inadiau 
 
 aw was disjilaci 
 
 d h 
 
 the Act ;V2 Ceoi'Lje \\\. c, 1, (now 1!. S. O, lss7. c !>:!) it 
 that in all matters of coiiti oNcrsy relatiiiL.' to property aicl 
 the laws of JMij^Iand then (17fl-) existinir. should 
 
 was i-WM 
 
 led 
 
 ,i! li.-hts. 
 the rule for the 
 
 tlecisioii o 
 
 f the same. The territories of \e\\ 1! 
 
 and I'rinee Edward Island were est.ildish 
 
 niiis\\ ii-k. \o\a Scotia. 
 
 ed as >e(tleliieMts. -odii after 
 
 /,'/"', Nx\iv. '{'he 
 
 their discovery in 14!*7; 1 fiiin/i' nii ffi/nn!"/ 'iml /n/v/;/// /,■/('•, xxsiv 
 lawsof Prince Ldw.ird Island .inthc lawsoi l''.iiLdaU(l, in foice.it the time 
 of its acipiisitioii : //</V/, 4(14. The whole of the Lic.'lisli common law is 
 reeojjnized .as in force in Nova ScMti.i. which oiiLriu.illy iucludial New 
 l>runswiid\. exceptini,' siudi parts ;is are ohxioiv-ly inc iiisi>ti lit with the 
 eireuiustances of the country : while, oii the other hand, none of the 
 statute law is received, except siuh parts ,is are ohvioiisly appli ilde and 
 
 necessary 
 
 Ulliiirh v. />/(•/■.■ 
 
 \. S. 
 
 'he L 
 
 nLii>ii iiiiiimon 
 
 law was intiddiiced into Manitoha and the ,Noitli-\\ Cst Territm ics hy the 
 Charter of the HudsoiTs Hay ('omjiany in l(i7<> : Cniiiu Ih/ \. Waolili-h. II 
 L. C. J. 107. Ill lS(i'2, and lS(i( the lawsof Kml 
 
 iiHl w ere (leclare( 
 
 in force within what is now Manitoha : Kml 
 
 III'/ v. ,l/( 
 
 !/.- 
 
 (1 to he 
 Man. K. 47. 
 
 In addition to these (U'iirinal sources of Canadian law, it has hciii 
 
 held 
 
 that, where the English and eolonial hn\s are the same, the decisiiius of th 
 
"IW 
 
 'Jifi; r.ii.i.s or i;.\( ii.\S(;k mt. 
 
 Sec 71- KiiyliNli ( 'oiiit-i iir(^ liimliiii,' mi tln' ( nlmii il ( 'uiirls, ,is an aiiflini itiitivi ii 
 
 """'""^ st rile t inn iiT til' I I \v. , Villi tluit, as II (^'"iicral |ii iiici|ilt', an Acf of a Onlonial 
 Li'j;isl ttiin', wliii r till' Kii;;li ill \i\\\ I'l't'VaiN, must lie i,'()\i mi'd liy tlic 
 Niiiiii' rules I'f riinstniction an pnvail in l']iii.'lan'l ; ami tlic Ilnnlisli 
 juitlioi'itii'H ii|Mpn all Aft, //( jKiri nm/i ri'i, arc aiitliinitics f(M' tlir iiiti rprc- 
 tiiliiiii of till' ('iildMial A<'t : I 'lilt, rail y. ( 'iiNirn//, m- Sin rlnidii, I llol), l''c('. 
 K('|i. .'pSO : !l .liir. Ii.M. Ami it is ciiually a j^'cm lal rule, tliat wiicriMi 
 (aildiiial Loj,'ihlatiiio lias iia.s.scd an Ad in tlii' waiiu' tcniiK us an linjii'iial 
 Statute, iiinl the liitter lias liceii oon.st iiieil Ky iiii I'inulisli Coni'tdl Appeal, 
 il siiniiar I'onstnictidn of tlie cnjonial law sliciiild lie ail(>|ite(l l>y tlie Courts 
 «)f tll(! ('olniiy ; it liiiie^r (if tlie lltliin-t ilii|i irlaiire that in all puts of the 
 I'llMpire, where till' l'",ll,L;li^h law (Uevails, the intelpletatinli (if that law liy 
 
 the ('ouvts, shiiitld lie, us nearly as pin.-.ilili', the saiiie : Trimli/i v. /////, !t 
 A pp. ('as. :{|'J. 
 
 " It is ;^eiieral'y riiUlir.il is to hills of e\ihailL:e. ill olih r to tix the 
 responsihilit y of other p irtjes, that upon their ilishdiiiir, tlu'V should he 
 duly protested liy the hnl ler. illld due mil ice yiveii to sil'h parties. And 
 the lirst (piestiMii u iiich n itiirally arises is. wii(<tlier the protest and notice 
 should 111' ill the iiiaiiiii r ami areoiiliiiM t<i llie forms of the jilaee in which 
 the hill is (Iriwii, or ai.'eoriiiiij,' to the fonii~ of ihe placi in whieh it is 
 Jiaydile. I!y the e<Hlllii(in law the piotest is to he made iit the time, ill the 
 maiiiur, aiiil iiy the persons prcM'rihi.'d. in llie plaee when,' tin hill is pay- 
 alile. Iliit as to the iieres^ity of niakiiii,' a demand .ind prntest, and the 
 cii'i'umstaiiees under whiili notice may 'le reipiired or dispen>ed with, 
 these are iiKtideiits oi the orii,nnal coiitraet. which are eoscrned hy the 
 law of the plaee where the hill is drawn. They I'oiistitiitt; implied con- 
 ditioes upon which tlii' liahilily of the drawer is to attach, accordiiit,' to 
 the /<./■ /()(•/ riiiitiiiiiii'< : and if llii' hill is negotiated, the like res]ioiisi- 
 liility attaclus upon each sucees.>ive indoisi^', according to the law of tlie 
 place of his imlorseineiit, for eacii iiidorser is trcati-d as .'i new drawer : 
 S/iiri/ nil ('diijlir/ I,/' l.iiirs, s, ;>tit). I.(,iii< riijil iirfiiiii is a canon of general 
 jiirispi'iidciicc, ami in the aliMiice of cunt laiy evidence, afiplics to a .sys- 
 tem of foreign law : ami the rule linwing from il is, that '• the fornial 
 re(|ili.'iiti;M deinamled for a contiaut hy the law of the placid w here it is 
 made, alt; siillicieiit for it e\ery where :'" Wislliihi mi //ih riiafionn/ Lnin, s. 
 
 171. 
 
 Il.l.rsl liAI'IoNS. 
 
 Where .'i foi'cigii hill, payahlc in l''r;iiice, is dishoiiorod, due notic 
 dishonor hy tiie .-iceeptor is parcel of the contract, and it is snflieieni 
 for the indorsee to shew that he had given the iiidorser such notice of the 
 dishomu- and protest as was reipiired liv the law of I'^-anee : lloth^rliilil v. 
 Currii, I (,>. n. 4:5. 
 
 Wtii'ie in the case of a hill payahle at a particular ))laee in a foreign 
 country, there is no evidence of presentment there, nor of the law of 
 tli.'it country on the suhject, the rules as to presentment must he deter- 
 mined hy our own law : /liiil'a/o Hank v. Tni'<cijll, U. C M. '1'. 'J N'ie. 
 
iitivc cnti 
 
 ,1 l.y tlir 
 / Knylisli 
 iiitfr[irc 
 Nol.. Kcr-. 
 t wlicrc II 
 I liii|ii'iial 
 
 lie Courts 
 its of tlic 
 i;it l;iw liy 
 
 \ . //;//, r. 
 
 t.. fix tllf 
 
 sIkiuM Ik- 
 
 tii's. Aixl 
 
 mikI iiiitiif 
 
 r ill \vlii( li 
 
 ivhii'li it is 
 
 iiiif, ill tilt' 
 
 liil i.s ]i:iy- 
 
 it, 1111(1 the 
 
 sed witli, 
 
 (1 liy tlic 
 
 liifd 1(111 
 
 onliiii,' tip 
 
 ICSlKlllsi- 
 
 aw ot till' 
 lira WIT : 
 
 i| L'llU'I'i'll 
 
 s to a sys 
 (' fiiriiial 
 
 \ in'io it is 
 / Ldin, s. 
 
 iKitii 
 
 ^llf^U'|1 II 1 
 
 ill' of till.' 
 
 a foreign 
 le law of 
 1)1' (Icter- 
 ft.> Vic. 
 
 Till'; HILLS (»!' i;\(,nAN(ii: ait. 
 
 2;iT 
 
 " 'ly tiic pur value of real moneys is meant tli |imlily of tlie intrinsii' SeC 71. 
 
 Vftliie of tile money of one iniintiy willi iiiiotlier; ainl liy tin- par of ~~~' 
 exulmiij;!', tlie pi u|ioitioii tliat the iniiigituU'y nioiieys of any eoiinlrv inar 
 tothoHe of another, so that the rise lUiil fall of all eXehange, must he 
 atti llillteij, eitlu I to the eliricnt pl'iee of the coins of one eolllitiy. or to 
 an extraoidiiiary lUniaiiil in one plare fni iiiniiey in another; or it nia\ he 
 t<ometimeN owing to liotli. 'I'heteiiu '• exehangc "' means a liailering. or 
 exeliaiigiiij,', the money <if one Kingiloin with another, whieli is alwajs 
 etlectetl hy llie interveiiti'in ot two or thiee Jims of wiiliiiL,' on ii slip of 
 paper: llmwi't, l.i.i Mi icuhuUi. 'ill'.'. (A hill of exelianye is the siihsiitiito 
 for the actiial tiansmission or exehange ol money hy sea or laml : /'(()•■ 
 ■SO/IS V. .I////I/;', .'! i'eli'ls (C, S.) Uli. 
 
 ■' The maturity, or i\\.w ilate, of a lull nf exi liaiigr liepeiuls iipnii the 
 niimlier ol ilay s of giaee allnw eil in tin rniiiiti y w hei e I he lull is pay a Me. 
 In some eoiintries, no days of giaeeaie allowed ; while in others, where, 
 they all! allowed, they vary from three to lifteeii days. See iiotea to 
 *<. 14. 
 
 '"There is no siinilar clause ill the Kiigh.-h Art. I'lior to this .\et, it 
 hud lieeii held in Ontaiio, that a protest of a notary of a foreign eoiintry 
 was no evidi nee of the laet^ therein slatid, as the statute < '. S. ( '. "iT s, 
 t>, making a protest j.iIikh f<i'-i, i\ii|eiiee oi tlio.-ie faets, mily appliid to 
 protests made liy notaries of the lonni r I'lovinie of (aiiada : luijUii v, 
 Jiitl-«»i, I'J U. <'.('. I'. IliO. Nor Mas a piolist of a foreign Kill Ly a 
 foreign notary, e\ idi me of notiee of liishonor, although the imiaiy eeiti 
 
 lied therein that he had gi\eli the Jiarlii'S illle leilieeof di-hiuior: /•.'/'•(')';/ 
 V. Ciiiiii fun, li L'. ('. (). S. ."ill. lint in I'lnglaiid it was lnld that the 
 dishonor of a foreign lull preseiitid aluoad, eo'dil lie | loNid li\ produeing 
 the protest attested hy a iiolaiv piililie : Aikui. I'J .Mud, ."if."). 
 
 PART iir, 
 
 ('iiK(,iri;s (IN A i;.\NK. 
 I'i. A (,-lu'(|iir is ii Iiill (jf cxrliaili;!' i]l;l\vii uli ;i luillk, cii'iim' is 
 
 . . ' , . " 11 t.ill of 
 
 jiavable on di'iiiaiiii : 
 
 i> 1. 11 
 
 cX'-liiiiiKi'. 
 Imp. Ai.'l,s.73 
 
 2. Kxeept us otlicvwisi' prmiilcil in tlii-< [lait, the [irovis- ^!'.' r, .i r.'i. 
 
 ions of this Act appliciil.ilt^ tu u bill ol' c'xcliaiiyij piiyable on *r'|.i!",,,, 
 duniaml v nly to a clu'iinL'.- 
 
 ii!.|.ly tc 
 rliiMlues. 
 
 ' Cheijues on a liaiik are the moilrni suhstitute for tlu' " goldsmith'.s 
 notes' of former times. Sec p. 8, niitv. The delinitioii of a hill of 
 exchange is given in .s. .'J ; and of a hill payalde on deniaml in s. 10. 
 
'2l]H 
 
 THK lULLS OF EXCHANGE ACT. 
 
 Sec 72- All cMeiiuL'Hiire iiilaml Ijills of uxchaiij,'L', ami an- siibjcL't to the comlitions 
 ' ' attaching to them as such. I>ut all hills of exchange ai'e not eheiiues, 
 
 iioi' subject to all tile rules applicable to che(jiies. Thus an authority 
 to draw chciiues, does not ncjcs.saiily include an authority to diaw l.>ills: 
 ForfM V. Mi(c/.-n//i, L. R. 2 i;x. Ui.'i. Further, a clieijue is intended for 
 prompt preseiitnieiit and payment, wiiile a bill payalde on demand, is 
 intended to be a c(jnliiiuing security. " Marking" a eheiiue is not neces- 
 sarily an acceptance; of the <:iie(jue, unless it is in the foriii prescribed l>y 
 s. !7. The delinitiou of a liill of exchange completely ciubraixs in it a 
 cheejuo. A elie(jiie like a liill of exchange, is an unconditional order in 
 writing addressed to a bank leijuiring it to pay a sum certain in 
 money, at a lixed or determinable future time, that is on ))resentation ; 
 but it has not, like an ordinary bill, days of grace. Though it has not ail 
 the privileges of a bill, it is as inucli a nego',ial)le instiument ; and the 
 holder to whom the property in it has been transferred for v::lue, either 
 by delivery or indorsation, is entitled to sue npcjn it, if, up ■'» ilue pre- 
 sentment, it is not [)aid : McLi.dii v. Chjdcuddlc Ikinkinj Co., \) App. C!as. 
 t)."). This p:ii't 111. d(jes not apply to private bankets. 
 
 lM,i:srKAllnNS. 
 
 Cheiiues, like bills, arc negotiable instruments, generally payable to 
 bearer, but soiiK.-times to order, riMjuiriiig as essentials, a drawer, tlrawee, 
 and ])ayi'e : Ihn-iti v. (,'i>uil< rirli, 10 Ala. .'{-40. 
 
 A bank cheijiie is an inlainl bill ot exchange ; and, ill general, is governed 
 by tile law a|iplicable to bills ot exchange and promissory notes : Mint am 
 v. Finlicr, 4 (al. .".">. 
 
 A elieipie up(Ui a bank, until accepted, is merely an order upon the 
 bank. The iiaiik is not liable upon it ; and it may be revoked : Schiaider 
 v. hriiiij HaiiL-, 1 Daly, (X.V.), .")(I0. 
 
 Where a elietjuo was drawn upon a ]);i,iiker, [layable to bearer, and the 
 person who leceived it wrote his name on the back of it, and passed it 
 away to aiiotlu r ; the person so imlorsiiig was held liable as an indorser to 
 the [jersoii to wiiom he hail [)assetl it : M u-domdtt. v. Unlm Bmil:, 2 .Scss. 
 Cas. (Scot.), ."J Ser. 'J(i;{ ; s. p. Kiihl v. Binrd, S C. B. M. S. o7-. 
 
 Hanks are bound to known the signatures of their customers ; anil 
 therefore a bank whii^h has |»aid a el.eijue which has been forged, cannot 
 recover l)ack the money from the person to whom it has paid it : Na(iu)ial 
 Milk V. (Ironi-x Xatii'iiud I'undc, 'k) How. (N. Y.) XVl. 
 
 Altiioiigh the date of a cIk .(tie is not material to its validity', it is as to 
 the |)eriod of its [laymeiit. Therel'ore the payment by a bank of a jiost- 
 dated clie(|ue belore the day of its date, is a payiiunt in its own wrong : 
 (ludiii v. Hank njlhi Coiu/nuiiwiitUh, li Duer. (X. V.) 70. 
 
 The reasoiialde and estal)lislied usages and customs of banks, enter into 
 and become [lart of the contracts made with them by persons having 
 knowledge of such usages and customs, ami must receive; due weigUt in 
 expounding such eontiacts : Jin nl v. /idii/c vf Mrlrujio/is, 1 i'eters, (I'. 
 
 S. ) ,S!». 
 
 A bank is not bound to receive (ui deposit the luiuls of every man who 
 oilers them ; but has the right to select its euston.ers : T/ialch< r v. Jiiink- 
 o/llieSliiU, 5 Sand. (N. \.} \'2l. 
 
THE BILLS OF EXf'HANGE ACT, 
 
 2:J9 
 
 A cheque i.s not an .assignment \>y the drawer to the payee of a debt or See 72- 
 
 a ehose in action ; and the payee of the ehe(ii:e has no ri'glit of action for , " 
 
 its dislionor ag.iiust the l)anker on wiioni it is drawn : Srhrn,(h r v. C-nfrrd 
 Bank, ;U Ji. T. Rep. ~,X^. i>i>M also JIopkiii.<i,,t v. Fur-^h r, l>. II. !!» Imj. 74. 
 
 The liearer of a checpie is the person entitled to the money, and he may 
 transfer it to any other person, and whoever has jiossessi^n of it, as 
 l)(^•lrer, is entitled tn the aninunt stated in it, and to maintain an action 
 on it : Am-oiia v. Marks, ~ H. & X, (iOtj. 
 
 The rule of law as to bills of e.veliange and promissory notes,— that an 
 indorsee taking them after maturity, takes tliem ujxpii the credit of, and 
 can stand ui no better position than, his indor.ser,— does not api)ly to 
 che(pies : London (Did Ciniiilij /lunthuj Co. v. droonii-, 8 (^». U. 1). I'SS. 
 
 A banker cannot debit his custnine!- witli the payment made through a 
 forged iniloi\sement of a bill, unless there are eireu'mstaiiees amounting ti. 
 a direction from the customer to the banker tn p:iy witliout reUieiu-e to 
 tile genuineness of the indorsement, or e(|iii\alcnt "to an admission of it.s 
 geiiumeiie.ss. so as to preclude the customer from shewiiiL' it to l.'e forced : 
 /Mcrl^v. Tm-br, Hi q. li. -.()(). 
 
 Where a bank, without the authority of its customer, counted out the 
 amount of such customer's depo.sit. and handed it ..ver to a slieriti', who 
 held an execution against tlie goods and ehatt> Is of the cuitomer, it was 
 held that the amount so paid was the l)aiik"s money, and not the mo 
 
 of the customer : C 
 
 (/// 
 
 4015arl). (N.V.) -J-'O. 
 
 ney 
 
 IS maile 1) 
 
 payaole on a 
 
 Where a draft in the usual for.u of a clicii . , 
 
 Inture specihed day, it is /tiima/an,- but not conciiisive evid'ei.ec that tlie 
 instrument IS a hill of exeh.'inge, and as such entitled t 
 
 A ndr 
 
 V. lUdchhi, 1 1 Ohi.i St. S!>. 
 
 o (la\ s o 
 
 \\ hen, however, such an instrument is designed by the partie 
 
 absolute tr.insfer and 
 actually existing fui 
 
 ipp 
 
 ition to the holdt 
 
 or so nine 
 
 h of 
 
 less a elie(|ue, and not a liill o 
 
 I bank belonging to the drawer, it is neverth 
 
 L'race. 
 
 ////>/. 
 
 and is not entitled to davs of 
 
 A ciic(jue post-dated seven days, eaniiot in substance '-• distiiviiished 
 
 from it, bill of excl 
 •2 Ex. !().{. 
 
 lange at seven days date; Fursttf \\ Machn tli, L. R. 
 
 iiaii'l 
 void 
 
 A cheiino given in settlement of losses at matching coppe 
 
 given in consideration of a gambling debt 
 
 rs, IS a no 
 
 te of 
 
 in tl 
 
 ich a security is 
 
 Worts, VI Out. R. 48. 
 
 ds of hiiiKi jldi h(,ldcr Un- value: Suntim r/'< id/ \ 
 
 - These provisions are : s. 1(», dehning a bill payable on demand ; s. 14, 
 no days of grace ; capacity and aurh.uity of parties, s. •.'•_' ; ami the general 
 lirovisiouaas to acceptance, indorsement, negotiation, holder in <lue course, 
 pr(;sentinciit for acceptance and payment, notice of dishonor, contracts of 
 acceptor, drawer and indorser, and discharge of bill. 
 
 115. Sulijeet to the provisions of this Act — 
 
 / \ w-i 1 • , ,11. I'resciitiin'iit 
 
 [(() \\ Here a cheque is not presentecl toi pavnicnt within '>t<-i»(|ii.'f..r 
 a reasonnble tiiii<! or its issue, i uimI tlie drawer or the per- *'"''" r.:i- 
 son on whose account it is (h-awn had the; ri'ditat tlie time •'"i'A.'i.o^ 
 
 ° ' liid A(!t, 
 
 .s«. 72 & 73. 
 
ipvaqi 
 
 240 
 
 THE IJILLS OF EXCIIANGK ACT. 
 
 I'siipr mill 
 facts to 
 Lfovcin. 
 
 of I Kink. 
 
 Sec 73. of such presentnient, as between him and the li;ink, to lia\-e 
 the che()iU' ])ai(l, - and suft'ei'.s actual (hiniage thiuuijjh thi' 
 delay, he is dischiirn-ed to 'he extent of such damage, tliat 
 is to say, to tlie extent to wliich such drawer or person is 
 a creditor of such liaidc to a hirgcr aniouiiL tlian he would 
 have liei'n had such cheque been paid ; -5 
 
 (h) In di'tfrininini; what is a reasonahU' time, le^ard 
 shall he had to tlie nature of the instrument, the usiiM-e of 
 trade ami oi' haidvs, and the facts of the particular case; ^ 
 
 wiiiiii hoMw c,;\ The holdei' of su(!h chciiiK' as to which such drawer 
 
 IS a criMlitor ^ ' i 
 
 or ])ciMin i^ disfiiarncd, shall he a creditor, in lieu of siieli 
 diawer (ir peisoii. (»f such hank in the extent of such di> 
 charee, and entitled to recovei' the amount frcaii it. •'' 
 
 ' The iisa^e rcriiLCiiizcil liy the ca.scs is, tli;it wlii'ii a piity I'ccrivfs a 
 plain or iiinro.ss(Ml clu'ciiu', drawn on a hank in tin: place uiiuie liu u-siilc.'-, 
 lu; slioiild jiic'scnt it fuc iiaynunt not latir tlian the day alter he leeeives 
 it. lint if the ehii|iie he ero.sstd hy the draw er he/'ore (h'livei iiiu' it tn th<-' 
 holder, .'^iieli li.ilder slionld depo.sit it in ids (i\v ii hanl< tor eolh'i'tion no; 
 later than tht^ chiy alter he receives it ; ;ind tlie liaid<, liie day next lol- 
 lowinif, present it to the hank on whieli it is drawn : An .itiml' r v. liin-h- 
 I'uld, i -M. iV; <e. KKil. In eonqiiitin^^' time, the non-lnishiess days men 
 tioiied ins. 14 are e.xeliided (s. '.M ). in the former ease, tile draw e-r of the 
 ehe(|ne is held to he responsilile one day, and in the latter ease, two days, 
 lor th<' solveney .'f the hank on w iiieh lie has u'lveii his e]ie(|iie. W'liiii tlie 
 person takinu' .'i elu'ijue, and the hanker, do not reside in tlie same place. 
 till' person taking the cheipie slionld send it to his hanker, or agent, hy 
 the next hiisiness post to the to\ni where the hank is sitirited ; and such 
 harikei', or agnit, should pi'esc lit it on the next laisiiiess day, in onhr to 
 he alih' to liohl the' dr.iwer liahle in east' the h.ink on wiiieh it is so dr.iwii 
 suspends p.iyiiieiit. See fiKther, as to "reasonalile time," ss. 'Jll, ;{(i, U) 
 and 4"), and iiott s thereto. 
 
 - A hanker does not generally acei^pt his customer's cheque ; the reason 
 h(>ing that the hanker i.s tne dehtor of his customer to tiie extent of the 
 funds which he holds on his customer's account, with the oliligation 
 imposed upon him, aiising out of the custom of hankt.-rs, of hoiioiing his 
 customer s chetiues, to the extt'Ut of his customer's funds : Fof'.i/ v. //(//, 
 2 1^1. L. Cab. '2H. 
 
 lM,lSTR.\ri(iNS. 
 
 A Itauk is I (111 lid hy law to ] ay a eliicpie diavii hy a customer within 
 a roai-(inahle time, alter the hank has receivt d suflieieiit funds heloiigiiij^ 
 to the customer ; and the hitter may uuiintaiu an action of tort ag.-iinst 
 
TIIK r.lI.I.S OF i:XCIIAN(iK ACT. 
 
 •J41 
 
 to liavo 
 igh the 
 gx', that 
 
 13IS011 is 
 
 .'. woiiM 
 
 I.Silu'C of 
 
 (•;isL';-l- 
 
 (ll'UWtT 
 of Sill'll 
 
 ucli (lis 
 
 rt'crivcs ii 
 
 \\v I rsido, 
 ic Icrcivrs 
 ,g it to tll(,- 
 I'ftioii not 
 iirxt lol- 
 
 V. /:;,■<■/,- 
 
 lys iiK'i] 
 acitif I lie 
 twi) iliiys. 
 
 Whrll tilt.' 
 
 nil' place, 
 
 agent, liy 
 
 aiiil such 
 
 1 OllU 1 to 
 
 so iliawn 
 •J(l, 'Ml. U) 
 
 lie reason 
 
 ■lit (if tlie 
 
 lil'ligation 
 
 Idling liis 
 
 \l/ V. Jli/l, 
 
 lor within 
 
 llieloneing 
 Irt ayainst 
 
 the hank, for n^fiisiiig payniciit of a fheiHR' iiiiikM' such <'ii(tini>tan('es, SeC- 73- 
 altliou-'li lie lias not. tlieicliv .'iU'itaiiu'il anv actual ilaiiiiu'e : Miir.i tli w ' 
 
 1 W. k Ad. 41."). 
 
 K'i//;, 
 
 A. 
 
 iinioiint in notes, "olil, 
 
 lifest'iiteil a (.•lietnie at a lianUmg nous( 
 
 'I'liL e isliier eoiinted out the 
 
 il silver, and placed it on the counter. A. took 
 
 it and counted it, and was in the act ot counting it 
 
 d t 
 
 line, when 
 
 the casliii.T (having discovered that the diawei'.s ai.coiint was o\ > nliawii) 
 demanded the money liiick, and upon A".s refusal, detaineii iiim, and took 
 it from him hy t'oice ; Held, that the propi rty in the note.-, .uid money 
 
 had 
 
 lassei 
 
 liom the hank to the 1 
 
 leaier o 
 
 tin 
 
 e eni que 
 
 ]iayment was complete, ami could not in; revoked. ('Innuli' 
 
 and tJMt tiK 
 . J///A /•, 
 
 i;5c. II. N. 
 
 1 -i: 
 
 •?. V. k V 
 
 Where ehei|ues draw n on the I'.ank of Montn 
 
 iV t he ;igent of the 
 
 City 
 the fi 
 
 >anK nail ncen aci. 
 
 'e[)ted by tlu; man; 
 
 igir of the f..;'iner, w ho receivei 
 
 >t the lattiT in return 
 ti 
 
 Meld, that tlu 
 
 rcsponsilde tor tlio acceptance ot its manager liy Ins initi.ds, e-<]ieeially as 
 
 ink oi .Moiitnal wa.s 
 Ih 
 
 It li.'i 
 
 I adopted th 
 
 le acceptance liy iicet>])tiiig the liinds i 
 
 t the (itv Hank in 
 
 coiLsiileraMon therefor: /Itnti/iii' Xdlivnu/c v. <'ifii ihtiik A' /Idit/: <>/ Mmd- 
 nn/, 17 L. C. J. 1!I7. 
 
 W'lieii a customer pays to his Icuikers a eliei|iie draw ii upon tlu-m hy 
 
 another custoiner, he must, in order t< 
 
 iteliialKl |ia\iiien 
 
 
 ike them liaMi 
 lie 111: 
 
 all events 
 
 It, or rcipiest tli:it the ;inioiiiit m;iy lie phicc! to his credit 
 
 4 N. k M. '.Ml;--* A. & 
 
 1S4. 
 
 A cheque crossed in hkiiik Wiis deposited hy the holder m liis hank, 
 w liich two d;iys afterwards prcseiitid it for payment, w hen it wa.s dis- 
 honored ; — Held, to lie piesiiitid within a I'l :isniialile time: SlriinjjifUl v. 
 
 /. 
 
 iiiii-.-jtrr 
 
 Hi L. T. X. S. .Stil. 
 
 As hetweeli thi' dr:iwer of a cl 
 
 Ic fc 
 
 HMlUe iUH 
 
 ye:irs, i.s iinrc isoiialilc tor presentinent to the 1 
 
 some loss to the clrawer is occasioned liy the dcLiv : /.i 
 
 \. S. 44-_'. 
 
 ihler. no time, within .«i.\ 
 \er lor p;iyiiMiir, unless 
 
 j,',tn./, 3 c. n. 
 
 'I'lie drawer <if ii cheque is responsilile on it until it is outlaw eil, and i.s 
 
 vi n ot jiresentmeiit, unless 
 le li:id MiU'eied daliiiim' ; as 
 
 not en 
 
 titk 
 
 to notice or ( 
 
 ther 
 
 )irivilege; 
 
 it he sliewn that, from want of suehdiliL'cii 
 troiii the li;iiik on wiiiidi it is dra 
 
 w u iKiviULr taileil 
 
 ill tl 
 
 le interim ; 
 
 /' 
 
 (lt( V. 
 
 .l/<-/>. 
 
 ";/" 
 
 //, I'J I.. C. .1. •J4.S. 
 
 'i'lie latter part of thi.s clause is new. I'ornierly the drawer was aliso- 
 
 itely discharged, if the hank failed. Now, hy the (i| 
 lause, and clause {<•), the drawer is dischiirged only to tl 
 
 leratioii o 
 
 f this 
 
 \tellt of the 
 
 dcHnage he sutlVr.s ; ami the holder is given the right of the dr;iwer m 
 
 recciVeriiiL' 
 
 th 
 
 mount from th 
 
 ir proving tin 
 
 il of the 
 
 amages cliiiiiied against it in any winding u)) proceedings. 
 
 ILLlT.sTI{.\■rIuN^i. 
 
 If th 
 iti 
 
 •Idl 
 
 .f 
 
 er ot a cheque i 
 
 within a reisoirii) 
 
 d 
 
 le ti 
 
 am 
 
 'ct to presei 
 I the li;ink tails 
 
 it the same fur p;iymfnt 
 
 iielweell t he time of the 
 
 drawing and the iiresentineiit thereof, the driiwer is discharged Iroiii lia- 
 
 l.ilit 
 
 .V- /' 
 
 faidi} the loss he lias sust:iiiied h 
 
 ■h fail 
 
 lliire 
 
 />• 
 
 (!;i. 24: 
 
 111 au ai 
 
 tion hy a trader ag.Tiiist his banker for d 
 
 isiioiionii"' 
 
 ./v. A-///.: 
 
 his eheqll 
 
 l\llig tuilils to meet it. SU 
 
 listaiitial d:im;i''es ni:iv he recovered, with 
 
 lit [noof of any actiuil damage : liulin v. Sltininl, 14 (.". 15. o'J. 
 31 
 
242 
 
 THE BILLS OF EXCHANGE ACT. 
 
 Sec 73. ' A "usage of trade and of liaiiks"" can only be .established by evi- 
 ' dence. A custom or usa^^c would lie hincling and obligatory on all persons 
 
 engaged in a curtain trade, l)ecanse long and universally acted upon by 
 all persouiJ in sucii trade, wlio in ly therefore be reasoual)ly ))re3Uined 
 to have made their contracts on the faith of it. 'i'he alhiged custom 
 could only l)e proved l)y a long, well known and acknowlcilged and 
 universal usage and practice among b. inkers and traders to act in accor- 
 dance with it : liiUanii/ v. M<irjorihiink'i, 7 Ex. 3S7. Siic note 1 to this 
 section, and the notes to ss. '2(i, .'{(», 40 and 45. 
 
 Jl.LlSTllATION'S. 
 
 (irciter diligence is rc'iuircd in presenting i checjue for payment, thvn 
 in prcseiiting a common inlau'l bill of exch.ingc for paymijut : Goii<i!t, v. 
 Slaat», 13 Wend. (X. V.) ."ill). 
 
 Where the pirties reside in the same place, a delay of six days to 
 present a clie(iue for p.iyment, discharges the drawer ; lbi<L 
 
 A chc(pio drawn in l5o-iton on a b ink in Boston, was sent by mail to 
 Rochester, N. v., and th'jre boiiglit by a bulk four d lys att^ir its d ite, 
 and was presented for [)ay:nent two d lys after, in all six ilays from its 
 date;— Hjld, under the circuiiist mces, no un.'e:isonal)le delay, and tliat 
 it was not subject to any C'luities l)etween the original parties : Bank of 
 Rn-hcMa- v. HurrU, 108 Mass. 514. 
 
 Where the holder of a cln;(iiie did not present it to the bank for two 
 ye irs alter its date, and omitted to give any notice of non-piyment to 
 tiie drawer, but the drawer never iiad funds in the bulk siiiti ueiit to 
 meet it, exoeiit one.;, and tiien such funds were withdrawn inime liately 
 afterwards by himself, a'ld tlie dr uver sustained no loss by the delay in 
 pri'senUneiit ; — Hell, that the drawer was not exonerated from liability: 
 it(>!il V. Si'A'b'y, 18 Clonn. .'i.o^. 
 
 '' '["his clause is new. Formerly it was held that there was no privity 
 between the holder of a bill or cheque ])ayable at a bank, and t!ie bank 
 which W(Uild give such holder a rigut, of action against the bank. The 
 holder of a clie(jue cannot sue the bank for refusing payment, in the 
 absence of proof that it was accepted by the bank, or charged against 
 tlie drawer ; Xafiuiud Hank v. Millnri, 7 Can. L. J. 44. 
 
 Hevoeiitinn 'J 4. Tlio dut}' aud authority of a bank to pay a clieque 
 authority, (hjiwii ou it l)v its custouicr aro tenuiuatcd by — 
 
 Imp. Aft, -...J •• -^ 
 
 ((6) Countermand of payment ; 1 
 {h) Notice of the customer's death. - 
 
 ' The terms used in this section indicate that the drawing of a clie(iue 
 by a customer imposes a "duty" on, and conveys an "authority" to, the 
 i)ank drawn upon, to pay such cheiiue on demand As stated in note 5 
 to s. '2, p. 25 ante, the ordinary relation of bank and customer in regard 
 to moneys deposited, and chetpies drawn for the payment of such moneys, 
 
bed by cvi- 
 1 all i)urson3 
 1(1 upon by 
 ^ pPL'siiiuud 
 god custom 
 icdged and 
 ct ill aocor- 
 )tt) 1 to this 
 
 fiiiont, thiii 
 : Cfoai/k V. 
 
 six days to 
 
 by niiil to 
 ter its d ite, 
 ys from its 
 y, and tliat 
 is : li(ink of 
 
 ;iiik for two 
 piyiucnt to 
 sutti dent to 
 luiiiu liatoly 
 liij dulay ill 
 111 liability : 
 
 ,3 no privity 
 lid the l):ink 
 bank. Tliu 
 lout, ill the 
 rgod against 
 
 a cheque 
 
 ; of a che(jiie 
 >rity" to, the 
 ed ill note 5 
 iier in regard 
 such nioucys, 
 
 THE lULLS OF EXCHANGE ACT. 
 1«".1< not to ,,,„- ,|„, .,;.," ,„..'" "'""""'" '" ""' '""""I ' tifj tl,„ 
 
 ti,c c„„ ":.! , '"'V r"","" " " '"■"''■ "' """' ■■ " »-''"-' 
 
 Where a person liavi,,:; fnn.l 
 llllerent 
 bank, fo 
 fii 
 in 
 
 iifi;.-ent person;:,;;.,!' iie'af,::;;;:,,"' ,^'""'^'^'"^^' '^''-i-- "■ -•-• 
 
 »wnk, forbade the bank to lion, it ,h ,1 ' ^""'>' ^^''-'''^ presente.l to the 
 fund;-Held, that the 1 h f "l, "^""'/^";' '^''''' ""^ t'.e whoh. 
 
 I'^uik after the -irawer iia c , n n'' ^ -l"-" ' T'" I>''--"t-l to the 
 
 wasdrau-nont, was not e nti e ^e i n^,^^^^^^^^ '^^''. '' '^'"•'^ ^'"^ """1 
 
 Where a bmk was notilifd by th^ ,l,.,u-er ,,f •, i 
 
 ..;'«:'::::;■ ;;:rr;:r:;':::t ;;;,;::'™;:r'"- - ;^" "-- 
 
 .». »« \,,o„t :; it",;;;; "' '";■:;■ "" '■■'-■ - -'•' ■ ■- 
 
 the i.:o,k ,„.,.„;:,;,; ; ;' "■"'■«;-"" »i-i.-' n.-,. ,• i.„t 
 
 '-■ "-.*-H,;,ot,,;;;,;;:„o. ,,;;';,;;;;;:.';;, f 7'- '"- ■; -> > 
 
 iint wLl 
 
 charged against it a l)ill whieh fell d 
 
 k hold a deposit of 
 
 before it had 
 
 I'eeeiv 
 
 tl 
 
 Jli/f 
 
 toiiu 
 
 id noti 
 
 ue after tl 
 
 a eiisttnner. 
 
 d 
 
 le amount of the bill : /,'„,/, 
 
 ■e of his ,leath, it was hehl 
 
 •e eUStollHTs d,;;ith, bllt 
 
 V. /i'0,/,1.:, L. K. 8 Kq. at p. 2!)2. 
 ii's notes which fell due after his d 
 
 V. Lmlhruki' i | 
 
 entitled so to eliaigt 
 
 Hut 
 
 ">'«• i'.S. See fnrti 
 
 lier 
 
 here a bank lieM 
 
 eath, it was iield that 
 
 th. 
 
 a cus- 
 ■y were 
 
 Sec. 74. 
 
244. 
 
 TIIK KILLS or KXCllANdK ACT. 
 
 Sec 74 not entitled to charge them ngiiinst the dopo.sit of money standing to hi» 
 ' ('reilit at the time of liis (Icatii, hut must pay over the (1e|i(isit to his 
 
 exeeutor, and share in the divi(h'nds from lii.s estate with the other credi- 
 tors : It' F(i fill '■(■■'• Ihiiik, 4S I'a. St. .")7. Nor ean the hanU .sn (•hari:e siieh 
 notes, although the (h'jiosit is the proceeds of the discount of tile notes 
 sougiit ti) l)c cliargcd : Itaiiirson v. J.adliroh , I iJing. 'Xi. Sie also, note 
 1. p. 1 '.)•-'. 
 
 ( 'rosst'd aiiequex. • 
 15, Whcfe a clii,'(|iu' liears across its lace an ailditiou 
 
 of- 
 
 Oi'iicral 
 c'rii>siiig (if 
 cluiim .s 
 d( fiiii'd. 
 Iin|i. Act,n.7ll 
 lihl. Alt, 
 Fs 1 •.>;;* 1J4. 
 
 SlH'oiiil 
 
 «■1■0^.«1I1{^ of 
 <lu'l|lll'S. 
 
 ((/) Tlir \voi'<l •' Iiaiik "' lictwceii two jiarallcl tiaiisvci'.sc 
 lilies, citliei' witii ur witliout the words "not lu-o'otiaiile:'" or 
 
 (h) 'J'wo parallel transverse lines siniply, either with or 
 witliont the words '• not neo<itialile ;" 
 
 "^riiat addition constitutes a ci'ossino-, and the clieijiie is 
 crossed generally : 
 
 '1. AN'lieie a cluMjue liears aci'oss its face an addition of 
 the name (»f a liank, eitlu'r with or witlnait the word,-. 
 "not neootiahle," that addition constitutes a (•n>»iiin', and 
 the cheque is cros.scd .specially and to that hank. "-' 
 
 ' 'I'lic custom iif crossing chc(pies uitli tin; name of soinehan!<. was oi'igi- 
 nated hy tile clciks of tile l)anks. when depositing clieipies in the Loudon 
 C'lcarini: I louse, writing across the cliiMpU's the name of tlie hank that 
 deposited tlieui, ill oiiler that the clerks of the clearing housi'. when 
 niiikiiig up the accounts, might know hy which i.auk e.icli oheipie luid 
 been deposited. 'I'his piai'tice had nothing to do with the restriction of 
 the negotiahility of chei|Ues; for at the tiiiu' it was diuie the ehei|Ueswure 
 in the course ot payment, or ])resentatioii for payment, and their negoti- 
 ai)ility w,;s at ;iii eml. 'I'he form was afterwards c'ldoptcd hy customers, 
 and is said to ha\i' heen originally intended as a direction to the hank 
 drawn upon, to pay the amount of the chcipie only to tlie hank so named. 
 Rut in ail early case (1S"28), it was held, that such crossing did not restrict 
 the ncgoti.iliility of the ch((|ue ; aic' aiiiounted only to a direction to ]iay 
 some h.iuk, .and not ncccss.irily the hank origin, dly namei! ; and that the 
 hohh'r miglit siihstitute another hank. The ellect of such crossing of 
 che((iu's came iiioi-e piominently hefore the I'.nglish Courts in IS")!!, in a 
 case whcri' a chei|Ue had hceu drawn hy trustees, to he deposited to a trust 
 account, and was crossed for the iSauk of England ; hut the agent of the 
 trustees struck out the crossing, and crossed it in the name of his own 
 
iliiig to hi« 
 losit to his 
 itlur rifdi- 
 liiirgc such 
 F tho iiotis 
 ■ also, note 
 
 add it 
 
 um 
 
 alili';' or 
 with oi 
 
 'iKMjllO In 
 
 lition o\' 
 (' Wdl'ds 
 ill''', and 
 
 , was ongi- 
 liC Louiluii 
 hank that 
 
 lUSt', \\hLII 
 
 heqne had 
 ■iti'iction of 
 f(|iits weie 
 oir nt'goti- 
 oustonR'i's. 
 ) the hank 
 so naiiH'il. 
 lot restrict 
 ion to jiay 
 I that the 
 crossing of 
 185'.>, in a 
 il to a trust 
 |cnt of the 
 of his own 
 
 TIllO miJ.S OF EXCHANnK AtT. '2W> 
 
 Lank, Mhich collects tl,c an,ount frou, the drawers" l,a„k : l,v wl,ieh Sec 75. 
 '"oans tlio auent n,isa,,,,ro,M-iat,d the trust fund. Th.. draw.'rs then — ' — ' 
 
 'n;onght ;m action against then. I,ank. for iM,,.n.,,erly pa ving the clu..,Me, in 
 
 .l.sregard to their ,.n,ssing it for the Hank of Kn.lan.h' S„„k- evi.lenee of 
 
 1^ euston. of hanks in regard to sueh crossed ehcjues was ^iv. n ; hut the 
 
 <'"'-t hehl that no usa.-e or cnston, regulating su,.], ero.Mng of eh.M„es 
 
 '^"1 iH-M estahlisle.d; and that ov,.. if sue), a euston. had hec, proved to 
 
 lav existed „, fact, it wo.dd he ineapahle of heinu Mippo,,,.! in point of 
 
 law. M,eh c-rossnig of a ehe,p,e would restrict its negotiahiiitv as a ..heouc. 
 
 and would have the etha-tof rendering- the instrument no longer a .-heoue, 
 
 1... hy a n.ereantile artihee would n.ake it of a hi.her nature as a security ■ 
 
 /'•■//„,»>, V. ^f.,r;.,r;i,„.!r., 7 ,.;,. :^s.,. „; .,„,, „„;. .,.,,i^ ,,,.^^i^j„„ ^^,^,; ^^ 
 
 surprise to the hanks, and h.l to ,iu, passing of an Act. in ISo.;. which 
 provnled that a ehe,p,e heari- . across its face tlic addition of ",)„. nanic 
 of any hanker or of the words "aud CJo.upany,' - should l>c payahle only 
 
 ^'';'""-'.' ^ ' '""'l^'^'- ■' tl"'s Uiakiug the payment of such crossed cheones 
 
 otherwise than through a hanker, invalid in law. Tuder this Act, it was 
 held th.at the "cros.sing" was no part of the cheque, and that its fraud.,- 
 h'Ut ohhteratK.n was no forgery of the chcpu,.; and that the payment hy the 
 mk. without negligence, of sue), . .ii,.,|Ue with the crossing ohliteratcd. 
 to tin. hol,h,r, who was not a hanker, was good as against the draw.r : Sh.. 
 -o..._v. 7^,yo^ S V. n. X. S. n-S. This case led to the passing of another 
 Act in IS.,... making the crossing of a ..hcpica material part of it. ami the 
 <.l. Iteration o, such cro.ssing, forgery. Thon ocnrrcd a case which is ,s;dd 
 to have startled the commercial community. A crossed .•heipie was stolen 
 after It had heel, cro.s.sed M ith the name of th.. hohlcr-s hank and was 
 transtcrred for value to a /..,:, ji,/,_ UM.y. who deposited ,t in the hank of 
 which he was a customer. The customerV l,:,uk p-a.sentcd it to the hank 
 on winch It was drawn. whi,.h paid the ehe,,ne. although it had not come 
 t<. It through the l,auk with whose name it iiad l,..en crosscl It wis 
 lu'ld. that the negotiahility of the clicpie was not aliccted hy the .statutes 
 and that the law liad impose.] no liahility on a l,ank whi..], iu...lecte,l the 
 directnmsof the crossing, when th.. ,.l„.,|Ue ha.l ,-ome thromdi th,. hands 
 ot a /n.na,„:fr h.d.ler: that the cr.,ssing ..perate.l as a mere caution • an.l 
 that the original hol.h.r couhl n..t reover against the pas ing hank : S„nfl, 
 V. U.o.ui /l.n,l; 1 .... 1!. 1.. :;i. I„ „„.u,., case where'a ,.h...|Ue ...oss...! 
 to the A. hank was stolen from the payee, and his in.h.r.sement forge.l, 
 and ultimately came int.. th.. han.ls of a /.„.„ ,hl. hol,l..r for value who 
 deposite.l it in his .)wii h.-ml, 
 the drawer's h.uik paid it, ii.it 
 the A, h; 
 out authorit\-, 
 
 dii,.) 
 
 it was hehl that the .1 
 
 1 scut it t.. the l;. h.ank, t.. whi.h 
 H.reeiving or .lisrcgarding th.. cr...ssiiig to 
 
 rawer"s hank improiurly, ;inil with 
 
 Jiaiil It t.) the wr.)n.' han 
 
 charge it .,L;aiiist the .Irawer 
 
 md ...nil 
 
 s ace. unit : liohln it 
 
 11. it theref.i 
 
 Again Parliament 
 til 
 
 /'/■///■.-7, 1 !• 
 
 •as appealc.l to ..n hclialf of the hanf 
 
 e commiiiiity tor relief, and [lasse.l the "C 
 which c.mtaiue.l nearly all the i.i.n-isioiis of th 
 
 <iiit 
 
 X. I). .%'.». 
 in.l inei'caii- 
 
 ros.sc.l t he.pies Act, ISTd," 
 liresent Act as to the 
 
24-G 
 
 THK I'.IM.S or KXcHAXfiK ACT. 
 
 S<?C. 75- nwidt' .111(1 cfri.'ct of crossing cliciiucs, and jinividinj,' for tlicir lieing "non- 
 ncgoti,il)le " in certain casca.* " No prudent banker should j)ay a crossed 
 olie<|ne otlierwisc tlian to a hanker, if he ilid so he would run the ri.sk 
 of the hearer of the elie(|ue having no title to it; " jv r Parke, !>., in llil 
 lariiii V. Jf<(rjvnlia)ik'<, 7 Kx. 404. See also tliu notes to the other sec 
 tions. 
 
 - The lOnglisli .Act jirovides for tlie crossing of a cIm (|Ue by writing 
 across its face tlie name of a lianker, or the words '•an<l conniany ;" but 
 tile latter woids are iiiaii])licahle in Can.ida, for the reason that they are 
 not .•mthorizid hy this Act. ;uul any such crossing' woulij not. thcrefori', 
 he protected ; and for the further reason that tiic banks in this country 
 are corpor.itions, wiiilc in laigland they niiiy he cither ])artnersliips or 
 corjiorations. 'I'iic i'.aiik Act li. S. ('. c. !•_'(/, jirohibits the use of the title 
 " b;ink" iiy iiulividu.ils or ;i lirni, unless under certain restrictions. A 
 erosse<l che(jue dillcrs from one not crossed, (1) in the icstriction as to the 
 ehai'acter of the person to wlioni it iiiu.st he presented ; and (2) in the 
 relief which is aflbrdtd to the ])er>on payinu it into his Itauk, from I'espon- 
 siliility for the ncj^ligence of the hank. The necessity, by re.nson of the 
 ei ssing, of ))la<'ing tlu^ che(|ue in the h.inils of a bank, will be fouufl 
 to oppose siunc im]icdinicnt to a fi,iu(lulcnt holder in dealing with the 
 chi'([ue. and making it available for his own purposes. And it is reason- 
 alily clear tli.it the pi'actict' of crossing chc(|Ucs is prinuirily for the jiro- 
 tection of the owner of (he chi'(|iu> ; mid secondarily for the pioti'ction 
 of the drawer, and his bank. 'I'he Act provides for twd kinds of crossed 
 elu'(|iics. (I) Tliose "crossed ;/'//(//»////," which must Ijc depositi'd 
 in .yiiiiii bank, and collected by such liiiik. ("J) Those " ei'ossed sjn:- 
 ridlh/,'' uhiidi must he deposited in the j,(i)-/inil(ir bank named on the 
 che(pie, and collrctcd by such hank only ; subject, howe\ci', to the power 
 given by sub s. "i of s. 7(>. In the tii^t cas(> the holihr of tlic chc(jue 
 .sclei'ts the bank ; and in the second c.isc the ilrain r of the chc(pic selects 
 the bank, in which the cheque is to be de])osited fiu' collection. In cross- 
 ing a che((Uc there must be either ; — 
 
 (I) Two parallel transverse lines simply; or 
 
 ('2) AVritteii between such two transv tIsi^ lines {(i) the words ''liniih;' 
 or (//) tlie words "/)'((///■, /;oM/( 1/0/ /n/y/r ;" or (c) " iint ti( (;iiliit/)/<." 
 
 Such transverse lines ami words make the cheipie "cro.ssetl generally." 
 
 Or (li) written between such transverse lines the words ((/) "Jiai/t 
 
 ■ Tlu>si> cniifticts between the li'ji:i.<liitivr and jinlii'iiil ;\utlinrilies in Enplaiid have licen 
 made tin' ('Ciasioti ot ^f me >aiTa>^ti(' (disti valiuiis tioni .judiciiil liiiictioiiaiii-s, cif which tlie 
 follow iiig may lie cited as s(ieciui('Ms : 
 
 "The IctriJ-lature has aimed at iiialiiiiL' ciilaiii liiiiitiilioiis to the iiiL'i'iahility it 
 eheqiies ; l.iit the Maliile> have liecii so fiaii ed and 'ariied iiit< eff.'i t that, whiitever may 
 have h.'eii the Mitentin of tlii's. eiiaitiiiL' tliMii. tiny ha\e di.iie little, it aiiythinL', to 
 restriet their iieuotjaliililj :" I'lr (Iro' c. .1.. In Mulilii' ff ii v, Loinhv iiini CuUiity lliiiil,-, 
 
 ■i c. I". I), ^rl. 
 
 " ('nville).« may say tlmt f-mh iiiec distinctions- look exceed in(;l.\ like nonsenFc. I eiin 
 onlv iinswer that if .hid^e.s seem to talk iion-eiise. it is lecaiise I'ailiameul hiia written 
 
 nonsense : 
 
 /'<•/ Uieit. I.. .1.. in lUiKli II \. Ihii/lif. s ti. 15. 1). 2^6. 
 
)ciiig " lion- 
 iiy a cidsscd 
 im the ris-k 
 
 i;., in /;</ 
 
 i otlier sfc- 
 
 l)y Mi'itirit; 
 laiiy ;"' l>iit 
 Kit they iuc 
 , tlicrefdre, 
 lis country 
 ucrsliips or 
 of the title 
 ietiouK. A 
 m lis to the 
 il ('-') in the 
 •oni resjion- 
 ison of the 
 1 lie found 
 ^' with tlie 
 ; is leason- 
 or tlie i)i'o- 
 
 indteetinn 
 ol' crossed 
 
 deposited 
 rossed »]ni- 
 ned on the 
 
 the power 
 
 he ehecjue 
 
 que selects 
 
 111 cross - 
 
 ,'enerally. " 
 :/) " BaN/r 
 
 111 Ikivc lii'cn 
 lif uliich tlie 
 
 ri 'iiihility < t 
 iKitcvir may 
 
 UllJlllillL', to 
 
 uuiity Hank, 
 
 enFP. I Ciin 
 bus written 
 
 T!IK liir-LS OF KXCHANfiK ACT. 
 
 " (naniinj,' the special hank intemled) ; or (-•) " Bnnl: of 
 
 247 
 Sec. 75. 
 
 1/ — 
 
 nut i/i't/otiuh/i'.' 
 
 Such transv.M'se lines and wor.ls make the chcpic ••, ■rossed specially." 
 
 1<». A clioque may bo cro.sscd nvnerallv or snociallv \>y •'m.'^sii.jr i.y 
 
 ill '~ ' 1 ./ .' (Iniwi'i. or 
 
 tlu; (li-awcr : ;,it.r i«^ue. 
 
 Imp Ac't.g.TT 
 
 '2. W hero a cl>(M|ne i.s uncrossed, tlic lioldcr iiia\' cro.s.s it *'"•"''"' or 
 ,i,a^neraliy or specially: 
 
 n. Wliorc a clicqiio is ci'osscmI ovnorallv, t.lu^ holdci' may m^'vi* 
 cross it sjieeially : ^ " ''"'''-■^'■ 
 
 4. Where a cheque is eiossrd o-eiicially or speeiully, the \vo,,N,„ay 
 hold-r may add the wnnU ' not ne,i;otiahIe : "' " i"' ^"I'l-^J 
 
 o. Wliere a che([Ue is crossed specially tlic l>atik to w hieh ''''•'■™r"'"" 
 It IS crossed may ayauv cnjss it speeialiy, to aiiotlirr liank 
 for coHectioii : 
 
 C). A\]ierean unci-ossed elieiiiie, or a elH'(|iie eiosseil "viier- cnssin^- i,v 
 ally, IS .sent t(j a baidv for eoljeetioii, it may cross it speciallv 
 
 bank. 
 
 to itself: 1 
 
 7. A crossed clieque may lie reopened or unetossed liv ^'ncroRsing 
 the drawer writino- lietweeii the transverse line^. and in- '■iVe'T^M. 
 itiallino- the same, the words "pav casli."ii 
 
 ' This clause provides for .successive cro>.-,inu's after tlu' ch.'ipu. lias l.cen 
 i.ssued by the drawer. If the eheijue is uiicros.scd when it conies into the 
 hands of a holder, he may cross it .i,'encrally or speciady ; or a hank 
 reoeivini,' it may cross it spccialls t<> itself -. and if it is crossed ]u'enerally 
 the hohler or a hank may cross it specially. I!ut eiiiy in the case provi- 
 ded for in clau-^e ."i, can a specially crossed clieipic he ag.iin crossed si)eci 
 :dly ; and then hy tiic l.ank iiaiiied on tiie cheque, and only for tin; 
 purpiise of ciill(.ction. 
 
 -"riiis clau.se i.s not in tlie Kugli^h Act. I'.ut such a practice a., ahove 
 sanctioned, seems to have jirevailiMl in Kiigland Uy which the dr.iwcr of 
 ■ i che(Hie ma\ .strike out a crossing at tiie rc((Uest of the drawer, and 
 write " Pay ea.sh" on the cheque instead. Wlicthcr the word' 
 
 av cash, 
 
 mean that the che(|ue is to he presented direct to the drawer's hank, or that 
 it nuiy lie deposited in another hank in the usual 
 
 wav, is not clcai 
 
 'I'l 
 
 oriL'inal ordi^r in the cIicimh 
 
 IS a direction to pay casii, whetlier t 
 
 is crossed or not. The words must lie written " hetween the t 
 iiues, " and initialed. 
 
 le clieque 
 raiisverse 
 
L'4S 
 
 TIIK lUI.I-S Ol' EX.* HANOI': .Ml 
 
 Sec.^. 'J'}. A ('i'i)ssin;,^ aiitliori/.cil hy this Acl. is a iiiuttM-i.al part. 
 
 ciosMii.u' iH oF the (•Ii''(|ii(' ; it shall not he lawFiil tor any person to 
 
 iiaii'df ' ohiiteratc or, except as autliorizod by this Aet, to aihl to ur 
 ■•iii'(|iii'. 1.1 • I 
 
 iiii|...\ia,s.78 alter tlie crossiiiLf. ' 
 
 ' 'I'lic ctrci't 111 this cliiiisi; is til niiiUe tiu^ juMvisioiis uf tlir .\ct '(.s. (iHi 
 !is til " iiiiitiiial .ilti'iatiiiii.s" ill liills of I'Xcluiiij^u, applicalilc, l»y aiuilogy, 
 to what is luTc ili'liiicil to ill' tiiu i.Tossiiig <il' i'lii'i|iifs. 
 
 llllljl'S llf 
 
 till Ilk 111 to 
 rrii.ij>iii 
 
 <'llC''|ll' s. 
 
 ■JS. When; a cheiiuc is crossed specially to more than 
 
 one li.'iuk, I'Xi-rpt when crossed to annther liauk as ai^i-nt 
 iiiiii.Ai'i,-.7'.i J',,,. ,.,,ll(.('iii)n, till' li.'ink on which it is drawn sliall icf'vi.so 
 paynii'iit thereot' : ' 
 
 l.iiiliilit.v (■>r 
 
 iiupr<i|ii'r 
 
 }iiiyiiii!iit. 
 
 •2. \V1 
 
 th 
 
 I'^srd 
 
 WlllMllill- 
 
 1iilit.Vtlni'< 
 not iU'crU'.' 
 
 irrc Lhi' h.'iiiK on whu'li a cni'iiui' so ero-^sni rs 
 drawn, ncv cil lu'li'ss ji.'iys the same, or pays a chr(|nc crossed 
 gcMicivdly othci'wisi' than to a liank, or, it" crossed specially, 
 otherwise th;iii to the hank to wliich it is crossed, oi* to the 
 hank actini,' as its .'e-eut tor collection, it is liahle to the 
 true owner of the cheipie for any loss he sustains owin^;' to 
 the che(|iii' liavihi^^ heen so paid :- 
 
 l^'ovided, tliat where a clieipie is presented tor payment 
 whicli dors not at tiie time of presentment appear to he 
 crossed, or to have ha<l a crossintf which has lieen ohliterat- 
 od, or to ha\H' heen added to or altei'ed otherwise than as 
 authorized liy this Act. the bank paying the cheque in 
 !L;'ood faith and without nee-lin'ence shall not he responsible 
 Ol' incur any lialiility, nor shall tlie payment lie ipiestioned 
 by reason of the clieipie luiviny; been crossed, or of the 
 crossiuL;- h;i\ in^' been obliterated or having been added to 
 or altered otherwise than as authorized by this Act, and 
 of payment having' bi-en maile otherwise than to a bank 
 or to the bank to which the clieipie is or was crossed, or to 
 the bank acting as its agent for collection, as the case may 
 be. 'i 
 
 ' 'I'Ir' wiii'ils llf this clause niakc it itn]ii'i'ativo on the liaiik on whicii 
 tliu c'iicijut' is ilrawn, nut to pay any cluijue whioii lias two (ir more special 
 crossings on it, other than those authorizeil by sub-.':'. ;"» of s. 7ti. This is 
 
Tin; iiii.i.s OF i:\ciiA.vi;i: act, 
 
 •iin 
 
 tcri.al part 
 
 JXTSOIl to 
 
 ) add to or 
 
 ! Act '(s. O.l) 
 by analogy, 
 
 iioff tlliUl 
 
 as aLfi'lit 
 
 all icf'iisc 
 
 'ri)ssc(l is 
 ic crossed 
 sjirc'ially, 
 , or to tlic 
 l.l<> fo tlic 
 • >\vinn' to 
 
 payment 
 L'ar to 1)0 
 >l)litrrat- 
 ' til an as 
 iuM[U(' in 
 sponsible 
 lestioned 
 >r of tlio 
 added to 
 Act, and 
 ) a bank 
 ied, or to 
 jase may 
 
 on wliicli 
 loi'o special 
 ii. This is 
 
 <'NM(l..„tly :t cor.illiry i,, t|.u pluii. intp.ptioi, ,,t tl,,. Arf in ,nitlH,ri/ii,u' ih- S.^0 78. 
 
 >T--.ssilli,. of a cliViiH,.. Til,, use ;Uhl nl,j..,-t .,t' .•n.N.sJlli; a rl|r,|U,.. is lii-lily ' ' 
 
 '"■ii'lifi il to the |>iihhr. an,l is a iii'ot.M.tion and safu!,'iianl to tip. owiut .".f 
 thiM-lH.i|iic, hy src'iirin;,' i.aviiniit throii-|| ,, huiUcr, in onh.r tliat it may 
 lirca-iiy traccl to«ii,,S(- use the nionev paid on a ehe,,Me u-,,s reeei\ .•,|": 
 
 lirlliiiini v. Miijoi-iliitii/:-!, 7 I')x. -lO.'l. 
 
 ^ -A Imui; .lisre-inlin,!,' the provisious as to (I, the .Iii|>lieale <.r ••.spf- 
 eial" ero>sni<,'s : (-') tlie '-njeriefal" ei..ssiMj: lo a l,;,nl< ; oi' i.'l) tllu "speeiiil" 
 • rossinu to a i.anU, as well as that autiioii/e.l l.y siiles. .". ot s. 7(1, is liahlo 
 
 to tile true owner nf tlie ejie for any lo.ss he nu.y liave sustaine.l hy 
 
 reason ot the ImiiI<'n disre^'aid ot tlie law. 
 
 ■Alunk payin- a -he(|in. under the •■ircuuistanees set out in this 
 eliiiise may hiei its.jf oii tli.. l.order lin.. ,,i .hni-.'r, if u,.t within lh(^ 
 lines, and sul.jeet to lliu penalties of iiegligeuee. An early ease on 
 ero.sed eh.Mpies. intiin:ited that the erossinu' of .a rh, ,pie was e,p,ivalent 
 
 to ;i .lireetion and w.irninu' to a iMuker. ,is to the luoile ot p.i\ nt ; ;ind 
 
 that u here a hanker paid aei'ossed elie,pu. other than to a l.;ink, it "would 
 h- strong evideuee of negliu'euee. " If. ori an inspeetion of thi. eheipn.. 
 some alteration or irn'on-iuity is .aiipurent on the faee of it. tlen the hank 
 i-^ pnt npon in.|uiry ; and it ha> heen held that " an alteration may I.e ,,m 
 apparent one, even if it is not an ohvious (,ne to all nnnkind." This 
 pioviso eorrespond.^ wilh the proviso to s. (i:j. .,s to non.ipparent altera- 
 tions. See tilt; notes and eases to that section. 
 
 lU. \\ lii'i'e the bank, (ill wliidi ;i crossed clir(|i|,. is l'f..i,iiin„ 
 drawn, I ill e;-ood iuith niid williniit iif-liMvnc,. i,;i\s it , if iii.iwi'r "'" 
 crossed uviiertilly, to a bank, or, if crossi'd soeciallw to tlio •■'"''iii>' i-* 
 
 I 1 i I • 1 'i • I ' ' I're-snl. 
 
 oaiiK U) wliicli It is cross,., I, (ir to ;i hank actiie^.as itsa^eiit '"U' .^<-t,H.vi; 
 for collection, tlie bank payiiiu' the ch, i|Ue, mid if tlio 
 cheiiueJias come int(j the hands ni' the |ia\i.(., th(. drawer, 
 shall respectively be entitled to the same fiohts and be; 
 placed in the same po^-itioii as if |.ayiii,iit of the chcpie 
 had lieeii made to tin' true owner ih(_.re,.f. - 
 
 Til 
 
 e Words 
 
 hank on w 
 
 Inch 
 
 ,1 
 
 accurate, and strictly might 
 i.s,siied by the drawer. I!ut t 
 
 cross,., I ,.|n.,pi,,. rs drawn.' are scai'eolv 
 
 to iui-lude ,iid\- 
 
 d ..h 
 
 ill 
 
 ic evident int'.nti <\i of tin. clause is t 
 
 jases 
 •osse 
 
 )f ehe(]ues crossed by the drawer, as well as tl 
 
 o cover 
 
 le cases or on'Mua 
 
 iiy 
 
 uncrossed cliecpies which subsi.ipnntly to theii- issue, arecrosse 
 or .specially by the hohler, or a bank, ;ts ,iiithori/.ed by s. 7(1. 
 
 -'This cLuise maybe applicable to the p .ynu.nl of crossed 
 which have been hist by, or stolen from, the Indder. The protection to'th, 
 liank intended by this clause, dcpeii,ls njiou whetlicr it has acted in .'ood 
 [i-2 
 
 lu'oues 
 
•2M) 
 
 'IIIK ISII.I.S OF l'.XCHAN(il'; ACT. 
 
 Sec. 80- fiiitii, iiiiil willidiit iK'^li;;! iii'i'. ill |iM\in^'ii (.'I'o.sM'il ('li('i|Ui'. 'I'lu' jiiotiction 
 to till! (Iriiwcr il('|ii'iiils iiipcpii wlii'tlicr tin- clii'(|iir li.is cuiiif iiiln tlu' liiinds 
 of tilt! (Ir.iwro. if it lias, tlii'ii wliati'ViT ciisu.ilitics may liavc ftvi^rtaki'ii 
 it, |iri<ir to its p:iyiniint liy tlii' l)aiik, tlii' drawfr is iliscliiii^'id frniii i'cxi>nn- 
 Hihility. Si't' aH to " j;;oci(l taitli, " imtf I, \>. '2(11. 
 
 llnltiiT'x 
 
 titiK to 
 rf HNCll 
 l'lll"<|Ht>H 
 
 HO. W'Ih'Ci' a [icr.soM (akt-s a crossed clKMHit' wiiicli licars 
 oil it (lie words " not nci-'otialilc," lie sluill not liave and 
 
 In.p.Aot.H.SI ^Ijj^ji ij^^j ,^^, (..,,, ;|Mr of '/\\\U<^ tl Ix'ttcr titir to llir C'lltMHIC 
 
 tlifiii tliat wliicli liail the person troiii wlioiii lie took il. ' 
 
 ' i\ flii'i|iu; croHHcil "Hot nc\u'otiiil>lt'," is still tr;ui>fri'.il>li' : Imt it.s 
 iiej^oti.'ililc (]uality i« liiiiitiil. It is [nit on a similar Inotiii;^ w itli an ovit- 
 <ltic hill. A liolilcr who lias a i,'ooil titli' caii still tiMiistVr it, ami the 
 ti'ansfiicc is ciititlcil to receive iiayiiifiit, ; Imt wlnii' tlir title of thi.' 
 tfaiisfcior is (Irfi'i-tivc, a siilisr(|iiint lioMcr fur valiu' is li|iri\ ni of the 
 |)i'ot('(.tioii onliiiarily aH'onlcil to a lioldir in iliic course. Siiiipo^e a 
 i'lu'ciMc payalde to )ieai( r, mill ei'osse.l "not iii'jotiilile." is stolen, the thief 
 gets a tradcsniiin to cash it for him, and the tiadesmnn ucts the ehe(|ue 
 paid on prcsLMitment through a hanker. The hunker who pays, and the 
 lianker who reeeives, the money for the traiU'sman are proteeted ; hut the 
 tradesman would lie liahle to refund tlu' money to the true owner. ,ind 
 ftssiimiiiL,' payment to have hi'cii sto|i|ied, he could not .sue the drawer: 
 ('lull nil ri nil fli//s, '2i\. This is a lU'W fishionecl (.lie(pie altou'ether ; and 
 the .\et says that if il is marked "not negotiahle," the ])er.soii who takes 
 that eheiiue is to ha\e no j^ieater rii^lil than the person wlmnives it to 
 him. The customer of the hank gets no hetter title than his tr.insferor, 
 not only when the elK'(|ue is marked "not iiegotiahle," Imt when it is not 
 so marked, if it, is not an open, hut .'i c'tossed. cIk i|Ue ; /'>/■ Lilnlley, .1., 
 in Mii>flii( ■■isi II V. LiiiiiIdii mill ('mni/i/ /Imil:. ."> ('. I'. I ). Id. 
 
 Colli-ctiiii 
 I i:\nk lie t 
 lialiU- to 
 "wniT 
 
 SI. Wlurc a liaiik, ill ^ood I'aitli and without ni'o'li<fence, 
 receivers lor a cnstoiiirr ])ayiiiciit ofa cliciinc cro-scd f^'ener- 
 tmi>.Aei.s.s2 .|]]^^. ,,,. specially to itsclt', and the tMistonici' has no title, or 
 a del'eetive tith' tlureto, tln' hank .shad not incur any 
 liahiiity to the true owner ot" tlie clie(|Ue hy rc^ason only of" 
 liavini,' reccivi.'d such iiaynient. ^ 
 
 ' This clause reproduces (uie of the elau.ses in the "( 'rossed ( 'heques .Act. 
 1 STfi.'ninlei which Mn/l/iii ^■•<i ii v. Liniiluii iiiiil ('iiiiiiiij Ihinh. .">('. I' I). 7, 
 M ;is di'cided, w here it w .-is helil th.it w hen a hanker, in good faith, receive!* 
 fritni his customer ;i crossi il clKipie to which his I'listoincr has no title, or 
 only a defec^tive title, wlnlhei hy reason of fcrgeiy of the indoisement, or 
 otherwise, he is exoner.ited from lialiility, " W'lu'ii the hank h,is got the 
 pioceeds, and the true owner says to the hank, ' Haliil me those proceeds,' 
 
w protiction 
 to till' liiinih 
 ■f f)vcrt:iki'ii 
 Kiiii i(s[)(m 
 
 liicli lirurs 
 liavt' and 
 
 ir cliciUli' 
 
 Dok it. ' 
 
 iK- ; but its 
 ,itli Mil ovcr- 
 r it, .1111 1 tlie 
 
 title of tlu! 
 
 iriNi'il of the 
 
 Sii])])oso a 
 
 Irii, the tlliu'f 
 
 .s tllC l'lu'(|UO 
 
 iiys, ami tJiu 
 
 ti'il ; lait the 
 
 • owiKT, anil 
 
 the ih-awiT : 
 
 ft'th( T : and 
 
 who talii'S 
 
 ) ;;i\cs it to 
 
 tr.iiisliror, 
 
 1(11 it i.4 not 
 
 .iiulluy, J., 
 
 ;'li''(:'nCL', 
 M^^\ o'oiun'- 
 
 () title, or 
 iHur anv 
 111 i.nilv of 
 
 IU'(|UOS Act. 
 
 C. I' 1). 7. 
 
 it ii. receives 
 
 no titk-, or 
 
 ii St nii'iit, or 
 
 ll.l.H got tlio 
 
 iu jjiocceds," 
 
 TMK llH.f.S OK r.Xf'll \N(;K .\«t. 
 
 tho I»'j,'isliitiir(! says : ' \o ; if you lliic h.iiiji^ havi Ih'itiil only tlie jiro 
 
 t Is of till' cht'ijiic tor your cii.'itoiiH'r, wc will not it'iidfryou rfM|ion^ililt' 
 
 for the proceeds where yon have dealt with the ehei|ne in the only way in 
 whieh, as a matter of luisiness, yon eoiild deal with it. If you have doiii' 
 auythiiik; more; if you have applied it to your own use, th.it is another 
 m.itter. Milt if you have simply eolh'eted it tliroii,i,di the eleaiini,' house, 
 ill the only way in whieh a li.niker colleets elH(|Ues, and that is all yon 
 Imve done, the tru«' owmr sii.iU look tliroiiuh you to the eiistoliier : and 
 he, and not you, must he res|ionsilile to the true ow iiir fcu' the proeeeiis ; " 
 /'(*• [..imlieN, .1,, tli'il. The lilst liraileh of the section (now s. .S(l), refers 
 to fiiii/ /II /■•I'll, the sciiiiid liraneii (now s. Hi), refers to a hinih r. There 
 fore the seetioii, li.ivini,' in i\w lirst part ejveii a protection to those who 
 (lilt upon tlnii clic(|ue the words "not iievotiaMe," liy which a persmi 
 taking it shall not have, or lie capaple of uiviiig, a hitter title to the 
 elici|iie than that which the peisoii had fioiii whom lie took it, goes on in 
 the scciiiid part to gi\<' 11 hanker a fiiitlui' protci't ion, whether he is 
 iiicludid ill the Wold person or nut; and ,i hanker, it' he lias, in good 
 faith and w itlioiit iicgligeiiee, reeei\cil pa\ iiieiit for a customer of <i cliei|iie 
 crossed goiieially. or specially to himself, is not to incur any li.ihility to 
 the true owner of the iln niie hy rcasim only of hav ing received siidi pay- 
 ment : /*' /' drove. .1.. 1 1 III I. Where the cllei|lle is indorsed ///'o /nur., the 
 collecting hank w ill he held tn have notice that the ii-i nt had hut a limited 
 iuithoi'ity ; and if it makes no iiii|iiii y as to the autlioi'ity of the agent, such 
 oini.ssion may he negligeiiee, within the lULiining of this ehiiise, if it is 
 found that the alleged agent h;id not tlic authority rcju'cseiited. 
 
 Sec 81 
 
 VWIT IV. 
 
 I'KOMissoiiv N()ri;s. 
 
 H'i. A. pi'omissuiy imtc is ;i1l lllicoinlitiniuil l»l(illlisO in I'mmivsory 
 ... II ' , , . 11,1 1 '!"••' ilefiiieil. 
 
 M'lltini;' llliUic hy OIK' ]i('l'>iiti til illliitiirf.sii;liri| I ly the Illtlkt'f, Imp. Aii,s.8;{ 
 . , ' 1 1 , • I i • 1 I ''"' A('(,s. 1. 
 
 t'liga^ino' to {liiy, oil (lriii;iiii| of at a lixnl or lirti'tmiiiiilde 
 I'litiii't' time, ;i Slim cnttiiii in inoiuy, to, or to the ordcf of, a 
 specitioil person, or to lieaier; ' 
 
 2. An iiist run lent in tlie roriii of a note payalile to iii.'ikcr's iiHinrsomiMit 
 order is not a note witliin tlie ineaiiiML;' ol' tliis si'cl ion, uiiie.ss 
 
 and until it is indorsed iiy tin- niake'":- 
 
 3. A note is not iii\alid liy reason oidy tliat it contains collateral 
 
 '11 I ' • • 1 1 • I'U'iijrL' lioe.H 
 
 also !i iiled^e ot collateral .si'ciiritv with aiitliontv to sell or not invnii- 
 tlispose tliereot : •' 
 
'Illl', lilM.S OF liXcilA.NdK Mi: 
 
 Sec S2. 
 
 fori'i;;!!. 
 
 4. A note wliicli i>, or on tlh' I'acc ol' it ])iir])orts to In', 
 liotli innilc !Miil payaMc w itiiiii Cauiida. !■> an iulainl note : 
 any otluT note i> a I'MrfiM-ii iKjtc. * 
 
 ' 'I'liis is siiiiilnr in iU'ect to the (lotliiitioii given in s. .'> nf a liill of 
 cxrli uijif, v.iiiid only in ifsjieot of tlic form ami oliai-actcr ut tin' i'i>n- 
 trai-'t. Till liill 1" in^ iliaw n as an " diil' r." t<i \\ liich tin re an; tlirco 
 orii,'inal jiaitics, tiu' (l'a\\tr. tlic i>ayi)c, ami the iliaw (a-, wlio after aeecjit- 
 aiice hecMimes the aeceiitnr ; while the note is drawi! as a " ]irf)mise,"' ami 
 to whi'h t hrre arc mil y I wo uri^iniil |>ai til■^ tln' maker .m hi tin- pivt'e. In 
 a liill of exi-liannc, the aeeefitur is the iiriliiary delitur lo tiu.' Jiayee, ami 
 tlie drawer is hut eolhiterally liahlr. in a ]ironiissory note the maker is 
 the )iiimary liehtor to tlir [layi/e. 'I'iie ai,'iejitor is m t the (/leator of 
 tiie hill, iind iiis contract is .sn|)"|)lementary, and may In- enn.litionat ; 
 while the maker is the creator of the nott', and his eimtraet is tinal, anil 
 imist he nneiinditimril. Thru, if Imt h classes of securities are nei;otial)le, 
 there aic similaiities in the rclatiim^ nf tie' ]iersiuis who snhsequently 
 beconie paltics to them a^i indorscr-. 'i'lie jiayec nf a note l>y indorsing 
 it, .stamls ill tin: sime rilatiiui tu I he siiljsci|iiiiit paities as the drawi |- of a 
 bill ; and tic maker nf i note is sulijei-t to the sam<' liahilities as the 
 iw;ec]itoi- >i] a liill. i'mmissory notes [layaMe tn oi-di i-. may he transferi'ecl 
 by indorsement ; m- \\ hen ind(jr>i'd in i>lank, oi' maile payablo to beai'er, 
 they are traiislcra!)le by mei'e delivery, and the ]ii.~sessi(in of such an 
 instrunniit indorsed in blank, or made payahh to bearer, is y/r('//(ff7'''''/(' 
 evidence that the lioldei' is tln^ |M-o])er o\\ ner and law fid jiossessor of tin; 
 same ; and nolliih'^ short of framl, nor even Lirnss noub.eenoe, if unattended 
 with niiil'i ji(l< ^, is sutliciint to o\creome the elfect of that evidence, or to 
 invalidate the title of the holder. su|i]iorted by that evidence : /Irain, v. 
 Sjinji'iiril , '.•o r. S. 47s. There is no jucc'isc foiaii of words i'ei|iiisite to 
 constitute a iiromissory note. Hut it oueht to have the essentials of a 
 contract: Hj-mrn v. />' Wiiifmi, (1 ('. W. ."{."id. Any Words which will 
 amount in hi w to a promise to pay. arc sntlieient : .l/'/r/v'v v. /.ii,'2 \A. 
 Kaym. bSlKi. A note of a bank is a i)romi>sory note |iayable to bearer on 
 dumaiid, and I'.isses by delivery. The transferor is not liable on it, by 
 viituo of any e uiti.iet in it, to which lie is a party; but he warrants to 
 his immediate' transferee that the bank note i> w hat it purports to be, 
 that he has the rieht to transfer it. and that at the ti:ue of transfer, lier is 
 notawareof any fact which lenders it xalneless. (s. .").").) .\ banknote 
 dilTers from an ordiiiaiy pl■omi^so|■y note, in that it never becomes "over- 
 due ; " but may lie le-i^siied from time Vo time, and is not subject to 
 questions of title, or to rights aiisiiiif out of any "■ e(|uities'' between the 
 original or niiioti' holders, (lohl coins are very rarcdy usi.'d, and silver 
 coins ari' used only in small (piantities in daily business transactions, so 
 that practically such bank notes form the onlinary commercial currency 
 of ('aiiada. .\ imtc though stolen, becomes tin; jiropci'ty of any person 
 who gives value for it, and takes it liuim jiili , ami witlimit notice of the 
 
•jxH'ts to 111', 
 
 nlainl luitr : 
 
 s. :\ (if ;i liill .if 
 ti'i' of the (joii- 
 tliere arc tlirt'o 
 do jifttT aoccjit- 
 ■ iirfiiuisc,' aiiil 
 tin- jiiyi'c. Ill 
 tlic i>aycc, ami 
 tc tile maker is 
 tlie cTi'atdr nf 
 l)f oi'ii.litiDiial ; 
 ict is I'mal, aii'l 
 arc iKii'itialilc, 
 III sulisi'i|iii'iitly 
 iti- liy iiiiliir>iiiLC 
 till' (Irawi r of ;i 
 lialiilitics as tin- 
 y lie tiiiiisferi-fil 
 yable to bisirer, 
 ■iimi of sucli ail 
 r, is /irliiifi f'lirji' 
 lossi'ssor of tli(! 
 V. if uiiattiiided 
 tviili'iii'i', or to 
 ICC : lirtiirii V. 
 Is rci|iiisitc to 
 essentials of a 
 lis wliieli will 
 V. Li>.\ 2 l,d. 
 le to bearer on 
 iablc (111 it, l>y 
 le wairants to 
 |iur]ioils to be, 
 transfer, he is 
 ) A bank note 
 .■•comes "ovor- 
 iiit subject to 
 s'' between the 
 scd, and silver 
 transaetiona, so 
 1 rcial currency 
 ■ iif any person 
 t iKjtice of the 
 
 'I'iii; i;ii,[,s or i;.\(iiAX(ii': a< r. 
 
 larci'iiy ; even thoni;li such [tarty had the means of kiidwledne "f w liidi SeC- 
 he neglected to avail hiiiKself : /'(ijihm/ v. Haul: < it Hidjl'tntl, I7('. !> liil- 
 In the early part of tjiis century tlici-c was a c((iillict of decision as to 
 whetliei' an [. O. I', was or was not a innmissory not. . In Fi'lcr v. 
 Lo-IU, 1 l'',-|). (•J(i, Lord Kenyon, ('. .(., (IT'.'-'O, held it « as nut i note. 
 In '///// V. //,ri,i\, Ciiit. (in r.ilis ;ll."i,/. L.nd l''.l.l..n, ('. .).. (l^(l<l), held it 
 was a note. In /.s/v(, / v, /srii)/, 1 Camii. 41)'.t, Lord i;ileniioroiij,di, ( '. •!., 
 (ISOS), iliiliildiiln, decided it in the nc^Mtivc. The later decisions arc that 
 it is not a promissmy note : (iiili/i)-s v. /Imi/iinrs^ | 1 >. \- |!. \. )'. ( '. S; 
 unless it contain an aniecinent that it i.s to be [laid on a ceitain day : 
 liroiihc^ V, lillL-iii-:. '1 M. k, W . ~\. "This is an instrument to which only 
 ts\ o pcr.-^on.s can lie parlies, namely, tli.- [iirson w lio pidiluces it, and who 
 answers to Iho description of • L'.,' and the )icr>(in whu niikcs it. who is 
 thert'foi-e the '1.' These little notes an; only given on tlic spui' of the 
 oeeasion. and at the mumeiit of some iinniedjatc lean ;" /' /■ I iiidal. ( '. .1, , 
 in Ciir/i.-< v. Uiiltd ril<, \ .liir. ."ids. Sei fui'tlier the note- to the tiist part 
 of s. .'!, p[(. ;>1, .'iS. 
 
 li.r.t'sru\Ti(i.Ns. 
 
 I)u(' A. I'>. oi' bearer .'s'JlKI.'JO fur \alue received, is a pidinis.-iiry note : 
 liiis.'<ill v. l\/ii/i/i/i, ■_' ( 'iinu. ri.'tli. 
 
 (iood to I;. (',. (,.' (irder, f(ir thirty (hillars, buidwcd money, is a note: 
 Fraiiklhi \. Mdi-'-h, li N. jl. ;!(i;}. 
 
 J. < 1. L' . L'STi. to lie ji.dd .\lay "ith. is a promi^M'ry note : Winlliinnii v. 
 Kl^'i, I Car. \ K. .V). See iiote to K>li^ v. /.'"/■//, 1' ('. .V 1'. ."iC.!i. and 
 Jlriiirn v. <lihii(iii, \',\ Mass. I'lS. 
 
 J. O. L'. t'l.") i.'is. which 1 liiiirowcd of Mrs. M.. and to pay Inr ."> per 
 eent. till panl, is not a iidle : il/i /('/((l/^ v. Tia«l(ili. I,').M.\ W. 'ibi ; s. p. 
 Siiiilli v. Siiullt, 1 !•'. ct 1''. iuV.K 
 
 Held, in (,hiebee, that an 1. < >. !'. is neu'otialile. like other mercantile 
 pa]ier : ll '(iiil r(i \. Ltijliuniin, (i L ( '. .1. ;>07. 
 
 A note, by whii,'h is ])roniised to ]iay " einlit Ininilred and sixty eight, 
 for value reeti\ed,'' witliout de^iyiiatinj:' the kind of inomy, is a note for 
 8liS ddllais : McCinj v. ('Uiiu,f , 7 < 'bio -tlS. 
 
 The folldwing iiistrnment : '" IJoi'iowed nf Mr. .1. W. t'LldO. to acc'imnt 
 for on liehall oi the .Alliance club, .it moiilhs' notice, if n i|iiiri'd,'' 
 
 is not a note : ll'hil' v. Xvrfli, .S l'',\. lis'.). 
 
 An instrument promising to pay money, and delisar hdises is mit a 
 note: Mai/iii v. ( liudii/r;/, "J Stra. 1271. 
 
 A note payable at a lixcd date cdiitained a |)i(»vis() that if the defendant 
 shoukl .sooner disjidse of certain l.iiids, described in i nieinorandiini on 
 
 the note, then that the lldte should lie payalilc hiiMiid; Ibid, that 
 
 the time of pa\melit \\a.s certain : A' /'n/^ \. /)'...//, ."i .\l in. lb 'Jl.'!. "(cr- 
 tainty that the tune of jiayincnt will arrive, appeals to he the )iroiier 
 criterion ; not c( rtainty when it will airive ; ' /'*(/• Killam, J., //(('(/. 
 
 An instiuincnt in the fdlldwing terms is a note ; " I have received the 
 iniperfect hddks, which Idgether witii the cash d\irpaid nii the settlement 
 of \dur aecdunt. anidunts to I'SO 7s., which sum 1 will [lay in two years : " 
 n'hiulo// v. ll/7/;((//rs 1 M. i: \V. :);!3. 
 
 82 
 
'2'H Tin; i;ii,i.s of kxciian^jk act. 
 
 Sec 82. A i)ioini.sr' in writing, iiiacle in (^Miehnc, to pay £'2'>0 on a day certain to 
 ^ '^—'^ A. 1). Of iifiier, witii an tMigagt'ini'nt to iiaj' in cash or in j,'(]oils if tlu' 
 holder siionlil choose to demand the latter, is a iiroinisscjry note ; for the 
 en<,'.ii,'etrR'nr is no more than a iiower given to the holder to convert a ])ro- 
 niissory note into an order for nii I'handize if he see tit to do so : MrDoncU, 
 V. UnUjali, '.' Kev. L(!g. 2!) (ISl.S). 
 
 W'licre tile promissory note is m;iile payahle to bearei', tin; maker must 
 he hehl to have agreed to ]iay in the currency of the place where the 
 bearer resides, ami, eoiisei(uentiy, tli it a teiidt-r of |)ayment in U. S. 
 greenbacks, was insuflieient ; .)/'■''<;// v. Dimcii, S L. C. .J. .SHi). 
 
 An instrument by which the; maker promises " to l)e accountable to 
 .1. S. or oriler '" foi a sum of money, is a not<;. It would be an odd con- 
 struction of such an instrument, to expound the word accountable as "to 
 give an account : " J/o/v/.v v. Lit, '1 \A. Itaym. 13!M). 
 
 A note ni idc payable to a person or his orihir, or to the oi'der of a per- 
 son, means tiie same tiling : Mni'-r.-i v. W'Ulin.-!, U. C. t^*. i'> t'Jl. 
 
 "Six montlis after date, we promise to pay to J. |{., or order, S40I). 
 'l"he above note is to paid in merchantable lumber, to be didivercd in 
 'i'oroiito at cash price, and an additional (piantity i^f luinl)er sut]icic:it to 
 pay the frt'igiit is to be sent in. If not so paid witliiu the time, then the 
 same is to be [i lid in cash."' This iiiemorandiini was written on tlie face 
 of tlu! note wIkmi it was signed ;^Held, not a note : Ijotdlun v. Junes, I'J 
 U. c:. (,>. W. olT. 
 
 Bank llot(^s are in jjoint of l.iw [iromissory notes, and notice of dishonor 
 is iieccssaiy : ('((/, li'/'/p v. AUi'iiln/, (J !!. ^ (]. W,',]. ,Sce Ijinit JJnnk v. 
 W'albr, \-2i). W. \>. at p. SS. 
 
 A ])romissory uiite given for ix gambling delit is void, although trnns- 
 fered to a third pai'ty in good laitli l)eforc niatiii'ity ; BiruliUit v. JJi roiiiii, 
 7 1.. C. d. I-JS. 
 
 Tiie h(dder of a promissory note which h.is been transfered to him in 
 good faith bi^fore maturity for value received, niay lei'ovei tlie iiiuouiit, 
 I'Vcn wiiei'c the nott.' has been gi^en for an inimoral consideration : D/jrais 
 V. Ch'tlijoii.r, (i Kcv. Leg. lill'i. 
 
 - There must In; at least two parties to every contract : and until tlierc 
 is anotlier party designated in a ilocumcnt i)urporting to be a jiromissory 
 note, either by name, or as ))earer, there can Ijc no contract. A note 
 <lra\vn payable to the maker's own order is not a promissory note, for in 
 sucii notes there must lie a promissor and a promisee ; but .such maker, by 
 indorsing in blank a note so made, may give it the efl'ect of a note pay- 
 able to bearer, and give a right of action on it to a holder for value. 
 The person to whom the money is to be paid ought, at least, to ajtpear by 
 implication: Broirn v. /'• Win/on, (J ('. 1!. .'J.'Jd ; 12 dur. GTS. See fur- 
 ther ss. 0-7, pp. 4H-.V). 
 
 ll.l.CSTIIATluNS. 
 
 An instrument in these words : "10 .\piil, 1S77, I acknowledge to have 
 received from you the sum i'400 stg. , whit'h J am to [lay back with bank 
 interest at Martimas, ls7S," is indi'tinite, and not a promissory note: 
 TviUKiiif v. Crdir/ofil, 5 Sess. C"as. 4 Ser. 4.'iH. 
 
 An iiistrunu'iit in these word.., : " Two montiis after date I promise to 
 pay to my own order ,t!l.")0, value received" and signed by the maker, is 
 not a promissory note : llmqicr v. Wi/liaiiis, 2 Ex. 13. 
 
 Xo in; 
 ties to 
 
 j)t lyiiiii 
 
 ■' ]{ ui|. 
 a custoii 
 as collati 
 or lialiiH 
 Seen I 
 
 <lfliv(M' 
 
TIIK 1!ILI,S OK KXCllAN K ACT. 2>' 
 
 No iiKiii (.■all iiiiiku a (joiitract with liiiiisclf ; tlnTc l)u^'llt to \<c two p^r- Sec- 82 
 
 tii'.s to a coutraut : ('h'lui/iioii v. Plit/nni' r, 5 lisp. "241) ; s. )). limn'ii \. , ■" 
 
 J)i- IViiifun. () ('. B. XAi. 
 
 A note iiiail<; imyahlc to the iiiaker hccoiuis a jiroinissoi'y UDto, after ic 
 is iiidor.sed by him ; Multli-'iir v. (.'aldircl/, 7 Mo. 5()3. 
 
 ■' Hanks ami others may take eoUatei'al scciaitics for ;iiiy hiaii iiitde to 
 a ciistoiner. Tliu Hank .\ot (s. liU) aiitiioii/es Ijanks to aeijuiie and iiohl 
 as uoHateral seearity for any advince made liy tlio l)aiik, or for any credit 
 01' lialiility (if any jierson, l)omiiiiin, I'roviiicial, Ihitisii, or Foreign, piiliiic 
 secui:' < or ihe stoek, bonds or ditlieiitures of iiiuiii(!ii)al or otiicr eorpo- 
 <tl ,|■^, exeept the stoek of its own, or otiier liankinu' empoiations ; and 
 may soil and disjiose of the same to pay the debt. IJiit tiie bank is enti- 
 tled to a lien on tlie shares (rf a siiaieholder who is a bmrower Iroiii it, 
 and may realize on siieh shares when held liy tlie bank as seeiiriiy for any 
 preexisting "r in.itiiriiii^ debt (s. 4.')). .See fiiitlier notes to o. -7, p. I Ui. 
 
 Ilmstkatkins. 
 
 All instrument in the following wurds, "On (h^inand, 1 promise to pay 
 H., or (•!■'•■ ;• t'oOO, for value reeeived, with interest; and 1 h.ave lodged 
 with 'i. \:m • ouiiteipart leases, signecl by I )., for ground let by me to 
 him, a ( ■ ■ ,i.,eral seeurity for tiie i;."ini) and interest," was helil to 1)C a 
 note: Fai,r„„rt v. I hi)n,>, !)(,). i;. 'M'! \ lO.lur. C.:!',). 
 
 Where it was stcited on the margin of a note: "<;iven as i'olIa*^^eral 
 seeurity with agreement," it was held that su(.'h a nu inoranduni made the 
 note iioiiliegotialile : Cn.<t<iit v. C/mcv/', \'l~ Mass. L".)."!. 
 
 .\ll agreemiilit that eertain siiares are in Id as eollatitr.il seeiirities for a 
 bill, proves that any su:ii reeeive(l i)y tiie liolder tlierefor siiould l)e .s.itis- 
 faetion ju-n taiitu: MnJpns v. ('Uitienl^, 1!) L. .1. <,>. I!. \'.\Ti. 
 
 K mortgage given with a proviso for payment aecording to the tenoi' of 
 eertaiti notes is eoUateral : Miirrni/ v. M'dlir, 1 !".•'. (). \\. .'{.").'{. 
 
 And sueh mortgage is not a merger: (liji'i- llnnl: v. K i/oii, '27 IJ. ( '. f). 1). 
 X]2. 
 
 ' This is similar in efPeet to the first part of the delinition of an 
 , inland bill of exehaiii,'!' given in s. 4. Tiie second p:irt ol tliat (hlinitioii 
 would be inappliealile to a proniissoi'y note. See furtiieT s. 4 and tlio 
 notes thereto, pp. 41-4.'?. 
 
 Hli. A prouiissorv imte is inclioatc ami iiic<)iiii)lete iinUl .^*'^' , 
 ilflivcrv thereof to tlie pavec ui' bcaK r. ' "",'^'' 
 
 ^' I • delivery. 
 
 Iui|» A<;t,li..'-4 
 
 ' Tlie iiKaniiig intended by tlie terms '• inclioate and incomplete" is I'l'' '■<'•.'' '"• 
 that the ])i'omissory note is not a valid eoiitraet, or a negotiable seeurity, 
 until delivery. I!y s. "J, delivery of a note means a transfer (.f possessi(iii, 
 actu:il or eoiistruetive, from ( ne person to another. .See note S, p. 'J!(. 
 Tlie eoiiilitions of a \alid delivery are prescribed in s. "Jl and the notes 
 thereto pp. S()-fS(). 
 
'-'.-() 
 
 TIIK lill.I.S OF i;X' rt.WCK ACT. 
 
 Sec 84. S4. A iMoiiiis^oi'v note may '"■ iiiaili' !iv two or inoic 
 Joint (in.i makers, ami t,lic\' iii:i\- he lialilc tlid'coa ioiiitlv, or ioiiiUv 
 iiiii' -\ii..s.85 jiiid .scvcrallw acc<)r<liii^ to its tciioi-; • 
 
 *' I promise," 2. W'licre w iiotc niiis •■ I proiiiiM' to i>a\'," ati'l is si"iii'(l 
 soviTai. |,y tAv,) or more [)crsons. it is (IcciUL'tl to lie tlit'ir joint and 
 .st'N'cral noti'. - 
 
 ' Unless till' iifitc is cvpifssi'.l to lie a joint iinil several ])roniise to ])i\ . 
 tile makers will only lie lialile jointly : ami a jncl^'nient ai,Miiist one joint 
 maker will lie a liar to an action a;,'ainst tlie other: A'///;/ v. Ihnin. \'.\ 
 M. (.^ W. 4!M A joint and several note, altlionLrh it contiins two jiro 
 niises in the alternative, is one eoiitrai't anil one instrnni'Mit : H'lr'Uin r v. 
 Wti/'ilt, ."> !•;. i^ I! s;i. When; the note is the note of a ])artner.-.lii]i. the 
 sijinature of the lirni s name liy one jiartnei' operates as the siL;natiii-e ot the 
 lirm, toi' each |iart m i' reinesent-- the lirni of w iiieh he is a ineml\ r in sncii 
 cf)iitraet. Milt it is oth< I \vi~e in ihi case <•' joint makers. I!ach of them 
 must siLTii the note : anil if the a;.'reenient In tweun the parties inteniling 
 to lie joint makers, is that each is to siun the contract, the nei,'l(.'ct to 
 obtain, or the refusal of. tho signature ot one of the jiarties «o agreeing, 
 will rcniKr tin' inntract iiicf>niplete, ainl tluTcfore not Idnilin;.', so that 
 the iiayi'<; cannot ricover iigainst those who have siiineil the note on the 
 faith of sin-li a:jreenieut : />"»/ v. (!'il,l,<. 4 ( '. & 1'. 4litl. Ami the aihlit ion 
 of a new joint maker to a joint ami several iKite afti'r it has liceii i-sued, 
 is a material .ilceration, anil oju'rates as a dischargi; tf) the original makeis ; 
 (!i rihii r \ . W'til.-li. ."> K. \ i'>. s;!. in liivinj,' jmlizment. I.oul ('ampliell, 
 C .).. said : " It was ;iri;ued that althoni,di tin; two contracts, one joint 
 and one scver.il, were written on tin' one jiiece of ]iaper. an<l e.\|)res>ed in 
 till- same sentence, they niieht In- treated as if they had heen written o-i 
 separate pieces of pa[ier respectively, and signed hy the di'fend.int. ar.>l 
 that the si.'[iaiate contract is not all'ectud hy the signature M'hich made 
 another [lersoii ;i ]iarly to ilie joint cuntrai't. i'lUt we must consider tlnit 
 a joint and several prondssorv note, altlioui;!! it cont.iins two ])roi:iise.s in 
 the alternativi', is c.ne contract and one instrununt, and that if it i.s 
 designedly altei'ed in any jiart hy tin' payee, so a.s to alter the liability ol 
 the makers, it is I'ntirely vitiated.'' 
 
 ll.l.lsrilATloNS. 
 
 'I'hc directors of an uinncorjiorated conqinny made and issued a jiro- 
 uiis^ory note in these woid.s : '" We. dircctois of the K. Kank of N. lor 
 oui'selves :,nd the other shareholders of the said company, jointly and 
 severally piomise to pay," iV'c. ; Helil, sulticient to hind the partnership) 
 jointly, and that the sliareliolders were not hound severally : MarUu. v. 
 'Siitlt,'rlai,<l, :\ Iv iK: 1!. J. 
 
 A judgment recovered against one of two joint dclitors is a bar to an 
 ai'tion auainst the other ; hut not when the djht is joint and several : 
 KiiKi \.^ll.>on, I.S M. A- W. 41)4. 
 
liy tAvo or inure 
 uiiitly, ())• juiiitly 
 
 IV," aii'l is sinHcil 
 If tln'ii' JKiiit iind 
 
 jveral i)r()miso to i).iy, 
 
 iiclit auaiiist (iiir jnint 
 ■!• : A''//;/ V. 1/(111,-' . \'A 
 li it, contnn-^ two pfo- 
 triiiiKiiit ; diir'Uiii r v. 
 of 11 partiHTshi]!, the 
 as the sii,oiatur<.' ot tlie 
 lie is :i mciiilv r in siu-ii 
 lakcfH. V.-m\\ of thrill 
 II till' jiartiis intciiiHny 
 iiitr.iL't, tlie iH\i,'loct to 
 lie ])artios so ai^'iccing, 
 •(■ 11 it liiii'liiii.', so that 
 inlR'd tho note oil the 
 J()(). Anil tluiohlition 
 ftiT it has liecli i-Mlcil, 
 to the oiii^iiial niakvis ; 
 fiiR'iit. l.oiil t 'amiilirli, 
 o oontrai'ts. oiii' .joint 
 pur, anil cxprrs-cil in 
 hail lieun written o-i 
 y the ileleiidaiit, am! 
 ijiiiaturc which inaile 
 we inii>t con>iiler tli:it 
 itains two ]iroi:iises in 
 eiit, anil tiiat it it is 
 to alter the lia'.ilitv of 
 
 ;\(U' anil issued a pro- 
 !„■ i;. i'.ank ot N. t") 
 
 . (.iiipaiiy, jointly ami 
 , hiiiil tlie partnership 
 
 severally : Md'kn V- 
 
 (khtors is a liar to an 
 is joint ami several : 
 
 'I'lIK llll,r,S Ol' i:\( IIANUK ACT. 
 
 257 
 
 VVluii a note was in tliese words; '" 1, .1. ('., premise to pay A 1'". the ScC- 84- 
 
 HMiii of C")0 with iiitere-,t on the same, or his ordir at \ in >iii lis," and • ' 
 
 was siiiied ".I. C;. or eUe II. P.. ;" Held, not a note of 1|. 15, It 
 oper lies diUVieiitly as to the two [larties. 1 1 is an ali^olute imdei faJving 
 on the p lit of .1. ( '. to l>ay, and it is eiimlitioiial only on I he p iit of II. H. , 
 for he undertakes to pay onl\ in the event of J. ( '. imt pisiiii: : F' rri-: v. 
 /)'!./((/, -I H. & Aid. (i7;i.' 
 
 A note apparently iiit''nd».-d to he joint and several, iiind^- tln' maker 
 who puts it in eireal ition with oiilv his own si^'i atiin ; I >ifl,-i i^au v. 
 
 />'///•/•, •_>:> <;.i. •_»_'") : s. ].. iiniiin^ V. s;i:<-h,h\ iii ill. 71. 
 
 " hui W. I ). r>. in six months," and signed liy two iiei-mis, is a joint 
 note : />'''<,// \-. Jlir/,-iiil/, 17 \N is. ."ij."!. 
 
 A promis.-iiry note, purporting from the words " we promise," Ac. , to 
 be the note of more than one peisoii. was siiiin d with thi' name of a 
 single individual, and iiiiih r iiis sii'ii.ittire weie w rit'en tlie initials of the 
 defendant's name, in his own hand-wiiting ; Held, that the difeiidaiit 
 was piesuni)itively a .joint maker; and also, that sinh presii-ii]iiion was 
 not inipaiii d hy ]irool that the first sienature was likewise in the defen- 
 dant's haiid-w ntiiiu ; l'<iliii<)'\. .''li / III iix, I 1). II. (\. \'.)-17l. 
 
 'riiough a note is made in the singular niimher, on w ho siL;iis after the 
 maker, adding the word "'surety" after his name, is theri hy hound as a 
 joint and seviial priiieipd iiiak'f : l>'iii v. Sh nrmd, 7 \N i.s. o:.'!! ; s. p. 
 Say la 'IV. Sim, I'.i X. V. Tiril. 
 
 The |)ivee of a joint .-uid several note, made li\ two, can only he placed 
 ill the situation of treating one as a surety for the other, iipun his eX|)res.s 
 consent to do so at the time of taking the note : Hall v. <ii/>(iii, 7 U. C. 
 ('. I'. 5;! I. 
 
 All .dteratioii of a note l»_v the insertion I'f the wfirds "jointly and 
 Kever.iUy ;" -Held, that the note was not avoi led. Imt tniulit he sued upon 
 in its original condition : WahriiiK v. M' l,,,ni. •_' M.in. I;. 'JT'i. 
 
 " l''or value received, we j.iintly and severally pinmisc to pay to W. 1'. 
 (). oi lii-aicr, the iium of toO ev.," &e. " .A.-- witness our liai.ds ,iiid seals, 
 this -iilth day of ApriU isr.fi"- M. M. \'>. | L. S | K. II. <;. (I, S.] 
 .Sii,'neil, s -.iled, and delix'ered, in presence of I!. .S;" Held, not a note, 
 hilt a spi.iality : 11 //.m)// v. (uiIi.-, |(i L'. ( '. K). I'.. 'Z'S. 
 
 An iiist ruiiuMit in the follnwing words: "We, (he undersi^iicd, do 
 hereby severally prmiiise and agree to jiay to 1'. W, 'I'., 1!-(|., ithe plain- 
 till'), agent of tin; bank of Montreal in (iodeiirh, the sums s. t ojiposite 
 mir r(;s|iective n.ime.s, for the purpose of linildiiiL: an l!pi.-eopal ( liiireh 
 and liectory in the town of (ioderieh ;" lb Id, that the in^truinent was 
 the sevi'iil proinissorj' note of each subsciiher : I'h' unts v. ii'rore, 15 
 U. C. C. P. 4(;-_'. 
 
 - The rule, where several perfoiis sign a not<^ as makers, is that, in the 
 absence' of anything contrary on the faeidf the note, siieh ])ersons will be 
 l)resi'.ined to be joint makers, such as "we promise to )iay," iVe, : llii/is 
 oil l>ill.<. (1. Hut a noti- reading "' 1 ]iromise to pa>'," and >i;.:neil by iii'irc 
 than one person, has always been held to In.' a joint and several imte of 
 the parties signing: ('hrh v, liliii-t-luck. Holt. -171. I he reason app.ir- 
 eiitly is that e;ieh ]iersoii .-■igning stn h ,i note adopts tin/ singnl.ir iiumher 
 indieated on the note, and therefore makes his contract a separate one to 
 jiay the whole amount of the note. 
 
 ;!:5 
 
 M 
 
 m 
 
•2')S 
 
 TIIK nil.LS OF KXCHANGK ACT. 
 
 Sec. 84. Ilm'stkathins. 
 
 " I |ii()iiiisc til Jiay," Higiied Ijy two, is jciint aiid Sfvci'iil : VitKjhUjn v. 
 /'/•'/., •_'() i;. ('. (,,). \\. ()'27. 
 
 A ]i:irty wild si^jris fur a tirm iiiiiUcs hut oiio pnniii.sc, iiiid two promiaes 
 Ciiiiiiiit l)i' iiiiiilu out of uuL' : /,'./• jiiiiti. liiu'Ui'ii, \\ M. iV W. 4(i'.t. 
 
 " I riuL' Mr's. (i., td, wliidi is to Ixj paid liy instalnietits for n.Mit,"' is 
 invalid lis not Hpccifyinj,' datfs or iiinount of instalments: MoJ'utl. v. 
 h'llirnrt/n, Car. it M. lU, 
 
 Dein;iii(l 
 
 IlOlH MUlst t)( 
 
 H."*. Whoi'o a note i);iviil»l(' on dciiianil ha.s Ix'on iiHlor.sotl, 
 iiriwiiu:.i. it, ii,u<t bo presented for payment within a i'ea.sonaltle time 
 
 I 111 1 1. A cr S.St) ' I ^ 
 
 ina Act,s.74. ,,f t,li(. indorsement : if it is not so presented, tl>e in<loi"ser is 
 discliar-. d ; ' it' liowevc r, with tlie assent of the in(h>rser it 
 ha.s been delivered as a eolhiteral or continuinu^ secnrity it 
 need not be jti'cscntfd fur payment so hn\if as it is hehl a.s 
 sucli secMfit}' :2 
 
 2. In dcteriiiininL;- wiiat is a I'cnsonabh' time, ret^ard sliall 
 be liad to the iiatnre of tlu^ instrniiient, tiie usage of trade, 
 and the facts of the jiartieular case : -^ 
 
 Not ovmiue ;} Where a note pnyabK; on demand is neijotiated, it is 
 
 in certuiii I .' o ' 
 
 cases. ,j,^t^ deemed to be over(hie, for tlie purpose of affecting" the 
 
 holder with deft'Cls of title of which he had no notice, by 
 
 that a j'easonable time for nrescn" 
 
 Rpasoiialilo 
 time. 
 
 I'easoii tliat it appears that; 
 
 it foi'jiavment has elapsed since its issue. -^ 
 
 1' 
 
 ' Tiiis clause ni;iy liu ic:u\ with tin- provisions of s. 4.1, .suli-s. 2, (/;), wliii^li 
 ie(juiro a bill j)ayable on demand to be presented within a reasiuiable 
 time after its issue. Under this clause a promissory note payalile on 
 demand, after it has been indorse<l, must also be presented within a reason- 
 able time. As illustrated iu note 1 to a. H'2, the payee of a note by in- 
 dorsing' it, stands in the same relation to the note as the drawer stands in 
 relation to a bill. Where there is an indorsLr, the ndes as to present- 
 
 ii( lit for payiiif 
 
 It of b 
 
 are, in some 
 
 re.speL'ts, applieible to notes. Sc 
 
 the notes to ss. 45 and S(). 
 
 'This litter part of the clause is 
 
 and 
 
 it in the lMii,disli Ait. 
 
 The rule it lay- down is in h irmoiiy with the judgment of the .liidii/ial (.loin, 
 mittee of the I'rivy ( 'oiincil in tlie case of the A'a///' o/" \'(in />ii:iiinii\i L<inil 
 V. /)'((/(/.' of Vi(Uirii(, L. 11. 3 1'. C. olili ; see also C/i((r/( n i( Mercdiitil,' 
 liiuik uf liiiUa v. D'lcktiiii, Ihil., ")74. In the latter ease it was held tiiat 
 the law with regard to time for the presentment of a note, payable on 
 (U'niand, requires th:it the presentment for payment .siioukl be made with- 
 
TIIK Illl.l.S or i:\CHAN(iK ACT. 
 
 *>r»o 
 
 ihlon V. 
 
 roniises 
 
 liiit," is 
 o/oU V. 
 
 iti ,'i rciHoirililc- tiiiu'. - that Im, a pcrioil rcrisoiialdi! with ivforcncn to the SeC- 85- 
 cifcnin.staiicfs cdiiinrtt'i] with I'acli particular caso. IJut that whcru a ' 
 
 note ilateil tin; Ultli nf I'"iliniaiy, IStU, ami inihirstMl, tlioiigli iiiaih' [lay- 
 uhh^ 1)11 ileiiiam!, Imt tlic payiiiriit of whi(;h was not ofnitcinpiatt.'d l)y the 
 inaki.'1's at any iiniiic(liatu or 8i>i'cilii; (hitf, an<l it appearing that th(; note 
 wiif iiKsmt to he, to a groati.T or less extent, a coiitinning seenrity, the 
 pri'Sentniont on the 14lii |).'uunil)i;r, 1M(H. was not uniiasonalilf, and tho 
 lioMcr.s of th(! note wire entitled to recover. 
 
 lorsed, 
 lotiinc 
 )i'scr is 
 oi'srr it 
 irity it 
 ln'M as 
 
 rd si 1 all 
 t' tradf, 
 
 (>(1, it i-; 
 iiio- t.be 
 tirt', by 
 sciitintr 
 
 \li), whii'li 
 Icasoiiable 
 aya))le on 
 a reason 
 itc l>y in- 
 Istands in 
 ) prcsent- 
 )te.s. See 
 
 ilisl) Act. 
 
 ticial CloMi. 
 l/y/'.s Liiml, 
 
 ahrcniiti/'' 
 held that 
 lyahle on 
 Alio with- 
 
 A 
 
 common 
 
 promissory note payalile on demand dilleis from a hill pay- 
 
 Jihl 
 
 e on (leniam 
 
 ehei|\u\ in this respect : the i)ill and eliei|i 
 
 ovidently inlciided tn l)e preseiiteil ,uid paid imniediatidy, and the<lraw( 
 niij' iiave good reason for desiring to withdraw 
 
 his fuiid.s from the 
 
 <lrawee wi 
 
 is \erv often o 
 
 thoiit delay. 15nt a common i)romis.iiory note payahle on demand, 
 )i'iginally intended as a continuing security, and may he after- 
 wards indorsed as sucdi. Indeed, it is not uncommon for the [)ayee, and 
 ;ifterward.s the imlorsee, to rectMvc^ from tiie maker, interest periodically for 
 many years on such a note. And sometimes the note is ex|)ressly made 
 payahle with intei'est, which clearly imlicates the intention of the parties 
 to he that, tliongli tln' holder may demand ]) lyment imme(liately, yet he 
 
 therefore conc(;ived that a common proinis- 
 
 itli interest, 
 
 is not hound to do so. 
 .1 
 
 It 
 
 .sory note, payahle on (hiiiand, I'speciu 
 
 dly if 
 <t d 
 
 ule payah 
 t h 
 
 d. 
 
 is not Tiecessarily to he presrnted tlie next d.iy afti'r it h.is hcen receivei 
 in order to charge t'ne indorsi'r ; .iml thit when the indoiser ilefcnds him- 
 self on file ^'round of (K lay in ju'esmling the note, it will he a (jUestion 
 for the .ludu'e or the juiy, whether un<ler ,iil t.ie cin nmstances. 
 
 of presentment was, or was not, unreas(jnahle : Jiy/i- 
 
 on 
 
 the delay 
 />'///.-.■, 104. .'^ee 
 
 )tes to ss. 40. 4."), 
 
 d 
 
 Ills clause IS m harnionv w 
 
 itii the rrde that a reas 
 
 d.lc t 
 
 inie lor the 
 
 presentnicnt ot a note for payment, should receive a moreliheral construc- 
 tion than in the case of hills, or chei|Ues. It varies in respect of notes 
 
 \)a\ ahle on i 
 larniony w 
 
 lemand, the provisions of snh-ss. •_' and .'5, of s. lilt ; ; 
 
 ith the tlecision of A'/Y,n/,'v v. Afi/rl,</l, '.) M . .^ \V. I,' 
 
 ird is ill 
 
 1 
 
 the proinissiiry luite payahle on demand, was indorsed somi! yeai's after its 
 <late, and no interest had heen ]iaiil on it (cr sever.il years hefiu'c its 
 ilidorseine 
 
 nt 
 
 tl 
 
 a.' holder, who sued upon it : .-uci it w 
 
 as held not t( 
 
 overdue 
 
 ihit if th 
 
 ere IS eviileliee ( 
 
 111 tln^ face ol the note that ic is over- 
 
 a". where it has heen noted for protest, 
 
 or w 
 
 here it h.is othiT .ipparent 
 
 im 
 
 licati' 
 
 til(^ holder's title is siloject to the rules applieahle t' 
 
 ,See notes to s. .Sli ; ami as to ••defects of til 
 
 not< 
 
 to ovtiiun 
 
 Hii. Wlien^ a pioniissory note is in tlir luxly uf it iiiadi! i»r.-M-iitm,Mt 
 pavalile at a pai'tU'iilar place, it iimst hf present, ij tor pay- i* ti.e j>iiirr 
 
 laiiieil. 
 
 iiicnt at that place. • But the maker is not di.seliarf'ed liv iii>i>.Act,s.s7 
 the oniissKiii to present the note tor paynu-nt on thi; (hiv 
 
Sec 86 
 
 l.iiiliility III 
 iiiiliiist-i'. 
 
 WliMt |in 
 
 H ill Slldil'l'. 
 
 'Illi; 111 I, IS (»F KXCIIANCE A< T. 
 
 tliiit it iiiuturos. - Iiut it' :iiiy suit or .'ictioii is instituted 
 tlifi'coii ii_i,f}iiiist liiiii lict'orc jiivsciitation, tlic costs tlicrcot' 
 h1i;iI1 lir III tlic <liscii'tioii of the ('ourt.'i 11' no |iliU'i' of 
 |)iiyinciil is s|iccitit(l in tlir l»o(ly ot" tlic note, |)n'><'iit mcnl 
 loi' |i;i_\ niciil is not ni'ccssai y in onlcr to I'tiidcr tlic niiiioT 
 liaM.''.4 
 
 '2. I'rcscntniciit I'or jiayniciit is iircrssary in onlci" to 
 ivmlci- the iiiiloiser ol' a note lialdt':^ 
 
 .'). W'Ik'Ic a note is in tlic liody ol' it iiiailc [)ayalil(' at a 
 particnlar ]ila(!i', piisfiitiiiciit at tliat |ilacc is necessary in 
 (ji'dei- to render an iiuloi'ser lialile; liiit wlieii a place ol" 
 |iaynient i.^ indicaied liy way n\' nieinoiaiidiini nnly. j.re- 
 seiitnicnt at tiiat pl.iee is sulileienl to reiidei I he indoisi r 
 lialile, hilt a [)i eseni iiieiil to the iiinker elsewhere, if >ntli- 
 cieiit ill other re>[)e(;ts >h;dl also sulllee. <' 
 
 ' 'I'lic fdrmci- law (K. S. ('. <■. li'.'! ss. !) .■iiul l(i) pmvidrd tli.-il in < intMiio 
 .•iiL(l I'riiux' lliluaiii J>1 inl, unli's.s tlir Kill nr iintc (.■X|ir(SM'il dii it.-s \';u'i.i 
 tli.it it was |iiy.ilil(! at a p irtimilar placi; "(inly and iml ntlhivv isu or 
 el^s^'^vlu■l■^',"' it v. as p;iyalil(^ ucii'Tally. And iiiidii- that law, fcillnwing 
 the intrr|ii i^t.iticii i^ivcii tn ii griuTal ]iriiinisc in a liiitc, it was held to 
 l)t; stililcitiit if pn SI ntiiiuiit wv.Vi- liiadt- litlior at tlif place naiiicd, or to the 
 maker hiiii-eli' : < 'inniiiefcUtl Ihiiilc v. ,/r>/ins/nii, 'i I'. ('.(,>. I!. I-IJ. The 
 I"'ii;_dish law dill imt, as did the Canadian law, plaia' pi'onii>~oiy notes 
 under the same rule as to the ell'eet of tile words "only aiul not else- 
 where ;" and the I'limlisli ( 'ourts have held th it if a ])laee of paynient he 
 speeilied ill the 'nrdy of a note, jneMiitnient for pa\ men! must lie inaih; 
 there: Viiudir Daiii/J v. Tlii lliixt^uii, SC i>. Sl'_'. The old i nle as to the 
 ell'eet of a m'lieial proiniso, .seems, liy tlii.s Aet, to have lieuii ahrogated in 
 Ontario and 1' ii;ee Mdwaid Island, and a stiirVer tide preseiihnl ; n> that 
 where the note is made p.ivalile at a particular plaee, it Incomes part of 
 the contract ; and the iioti^ must he presiMited for payment at such place, 
 in order to ehai'ufe the inaUe) and indorser.s : Siuiihrxnii v. liinvix, 14 Ivist 
 "lOO. Till' aliove clause may lie I'onstrued according to the follow ing rules : 
 A note piiyalile at a particular ])laee, must he jircsented there f(n' pay- 
 ment. As against an inilor-cr it niust be presented strictly according to 
 its <'xigency, on the day it matures. As against the maker any suhse- 
 Hiient preseiitinent will sutlice, unless the maker lias siiHeicd loss or 
 damage hy the delay : /)/;/t/v ^'^ ll'<'<'(/, L* Man. K. 'JT-. In the English 
 Act the remainder of the sentence reads: "in order to rencici' the maker 
 lialile." 
 
istitutcil 
 liliici" ol" 
 
 Cllllllfllt, 
 (ilillT to 
 
 alilc at a 
 
 cssaiy ill 
 
 |ila('r 1)1" 
 
 /lily. i>rt'- 
 
 ' illilolMV 
 
 ' if sulli- 
 
 t in OiitMiio 
 
 (111 it.-- liu'i' 
 
 Itiirrw isf or 
 
 fdlliiuiiig 
 
 IS lu'ltl to 
 
 1, or to tlio 
 
 (i. Tlic; 
 
 Miiy iiott_'.s 
 
 1 not, clsc- 
 
 ayiiiciit lie 
 
 t lir llliulc 
 
 ■ as to tlie 
 logated in 
 il ; so tiiilt 
 nirs part of 
 iicli jilacc, 
 V, 14 llast 
 w nil,' rules : 
 ■ic for I'ay- 
 Lconling to 
 liny stihsu- 
 ■11(1 loss or 
 ilv Kiiglisli 
 ■r tliu iiiakLr 
 
 TilK lilM.S OK KXCMANOK ACT. 
 
 •jr.l 
 
 ' Tiiis |ii(i\'isioii as to del ly in prcst ii( in^ ,i note fur ii.iyincnt is in Soc. 8G 
 liarrnony with I lie riih; picsci iIumI liy s. ")•_', stili-s. 'J, \\lii(li provides tliiit ' 
 
 tlic omission to incsciil a, liill of (^\(■ll,■lllU(• to tlic ai'i('|itor "on the day it 
 in It 11 ns. ' will iiol discliaiLic siicji aci<|itor. The clause evidciilly lel'ers to 
 a note |)iyalile " at a lixed oi delorniiiialili! I'nture time"' afhr its dale, 
 and OIK! on which tlicre arc no indoi'seis, alilioin,di th" clause coiitiins no 
 reference to them. Where th •!>■ are iiidorsors, the note niii-t ht; presented 
 stiietly accord iiij,' to its e.\i;;eii(,ies. Tln^re is no provision, as in the ease 
 ol' a note [> lyalih; on dein.ind, that pi' si ntnieii! for |iayment of a time not( 
 must 1)0 made "within a re.ison iMc time;' Imt .siieii :\ eondiiion may 
 rcasiinahly lie inferred. The omis-ion to pr(^ent a note for |i;i\ment 
 on tile day it matures Would, as in tln^ ease ol the noii pit scnl nient oj 
 a hill, discharge the indoisers. See note '2 to s, .">;!. 
 
 ■'■ This is simila,r to the )iro\ ision in s. .''_', suhs. •_* 'j'he dcfi ndaiil in 
 an a(^tioii on a note payalile on dein.md. liiit, ol wlihli no demand ha.-. 
 l)ecn made, dep isit(!d tin; anioiint of tiie note in ( 'onrt wit houl costs, 
 and then demurred to the action on the eroimd ot \vaiit ot |ii i >iiil nient. 
 The demiiirer w.is dismissid ; hut on the merits it \\a.^ hehi that as no 
 (leinaild had luien in ide, the del'eml.ant was not in def.uilt at the time 
 of action hi'oiij^dit, and the |ilaintill' should thercfiu'e pay hiseo-ts: An-liir 
 V. Li,iii, , W (.». I.. !!. l.-.!i. 
 
 ' This is also similai to I he pro \ ision in s. ."I'i as to the aecc|itors of liills ; 
 and it is eon -;i stent with the rule of l he coinmoii law I h.it I he del it or should 
 seek (lilt his ere(litor to pay him: Wnllnii v. Mii^rii//, \'A .M. iV W. 4.").S, 
 
 ' 'I'liis eliuse inakiw apiiliealiK^ to the ease of a promissory note, payahle 
 on duniand, or at a lixei] date, and th ^ liiiliility of tie,' indor^ers of such 
 note, some of the rules presi.'rilied liy s. 4.") as to the preseiil in 'Ul. of Wills of 
 e.xelianjj'e for |iaynieiit. Where sieh notes are payalile at a parlieular 
 plaee, preselitliU'iit for ])ayiiieiit must he made there ; lint if no place hu 
 Kp(;eilio(I, then presentment must lie made to the in.d<er, a,ceording to the 
 riil(!S [ir(.-scrili( (1 liys. -I."!, (solar as .■ipplii-aMei, and this section. It is not 
 expressly stated, luit it may In! inlerii'd, that tlu! clauses in section 4."), 
 providing for |)resentmuiit tliromjli or at the poit otliee, ;ipply to promissory 
 notes. l)Ut where there are no indor-ers, it is not. necessary to pn sent a 
 promissory note for payment "on the day it mature.-," in oiiler to hold 
 the maker lialile. Si!c the ne.\t note 
 
 '' A stipulation indorsed on the hill or note is not lo l,ie taken .is part 
 of the instruiiKMit so ;is to make it emnlitioii.il, luit as a mai king for ideii 
 tilication ; llrUi v. ''("■/,•, j .M. i^ W. 'l'.\l. lint if an indorseiiKiit of a 
 condition on a note is iii.ide liefore the note is sigind, it is part of such note. 
 If made aftt.'l' the sie.iing, it will lie merely as a nieiiiorandum to identify 
 the note: MrKiiiiinii v. ('lUii/ifn /I, (1 I'. ( '. I>. .1. ;"S. it would piuple.N coin 
 inereial tr.insaetions if pajier securities, like hills and notes, were issued 
 into the worUl inciunhercd with eonditioiis and e uitingoiieiu.-!, and if tin: 
 
'J(i2 
 
 Till', IIIM.S ((K KXrilAN'OK A< T. 
 
 ReC- 86. p<rN(iii to wlmiii tlicy wen; oircicil in iic^'otiaf ion. were (il>li!,'<'il to iii(|iiit'(? 
 w lien tiii'Nc iiiirri t.iiii cvciitis wciiild |)|m1i:iIp1 y lie riiliiiiil to It ci'itiuiity : I'lV 
 i-oiil Krriyoii. ( '..1. , in ' ''u7o.s V. I'liiiraiir/, 't 'V. It. ts'J. 'I'hi' l.itlcT wimls 
 of till' 1 liiUNc iiic not. in till' JMigli.-li Act. \>y s. SS, tlir |irovisionsot' the Act 
 is I'ciat iiii,' to IpiHm of c\(liaM}.'c, iirc, sulijcct to tlii^ |)i'(i\isionM in tiiis [i.irt of 
 tlic Act, niailc a|i|ilicaiiic to |iiiinii>>oiy notc.n ; anil as tills clause prc- 
 Mciilifs tlic iiriiicijiiri' iis to till' |iicMiitnii'nt of notes, it must lie lu'lil to 
 vary so niiicli nl the |iroci iliirt' |ircsciil)i'il liy ». 4."), as to ini'scntnicrit of 
 liills, as may lie in I'onllict uitli it. 'I'lie clause, if real accoiilini; to the 
 linnctinitjon, may he eonslrueil as iiiit hori/iiii,' |ii'esentnicnt aeeoniing to 
 the ellcct stateil ill till' hill, /. '., .it the |ilace inilicateil ill the lioily of the 
 hill ; or if there he no |ilace so s|iecilliMl, then eilhei {fi.) at the piai'e imll 
 cited In the ineinor.iniliiin ; or lA) to the maker elsewhere. lint if the 
 clause is reaii without |Miiictiiat Ion, ii ni.iy lie constriii'il aH antlioii/iii;; pre 
 senlmeiil in any one of time w.ijs: (1) at the plaee inilicateil ('/) in the 
 l)0(ly of the I. ill, or (h) in the nienioiaiiilnm ; or ('_') to the iiniker clse- 
 where. In the ItoUsei I'ailiameiit the sentences of the statutes are never 
 puiictii.ateil : /lurrtnr v, W'ltilLiii. "Jl lleav. II.'JO. W In n the nieaninj^ of a 
 clause is iloiiliti'iil, the ('miit iii.'iN liisiil |iiiiict iiatmn to show of what 
 I'lPii-triiel iiJii the worils are I'apalile ; ami il liy siicii aiil, thet'onrt is 
 eiiahleil to sec that tile lanL,'ua:,'e c.m lie;ir an iiiter[iretation which is 
 rutimial .iml self cunsistent, it is liniiml te ailopt that intei'pretation : Hi 
 hi mil ifs h\tii/i , S Ir. I';i|. M~. I'liiictiiatioii is a most fallilile stainlanl 
 liy which to iiiter[iret a writing. Tlie ('mirt will lirst take the iiisti iinicnt 
 liy its four corners in order to .ascertain its true me.iiiiiii,'. If that is :\\> 
 liareiit, on judicially inspectinj,' it, tlii' punctuation will not he sutlt red 
 to elumgi' it: Eiriiuj v. IliiriiiH. II I'eteis (II. S.) 41. 
 
 liiisriiA riiiNs. 
 
 A note in the follow Inn form : " 'I'liree months after ilati', 1 [iromlsc to 
 pay to my i)W n order the sum of l,'ii'>-.l. .\. 11." " I'.iy.ililc ,it Messrs. 
 V\'. k P.'s,'' and indiirseil ; is not a note payaMi' at a particul.ir pi, ice. 
 'I'lie words "jiayalilc at Messrs. W. i^' I'.'s, " written heiieath the hmly 
 of the note, constitute a menioiaiidiiin only : Maslirs v, liantlo, S ('. Ii. 
 
 -i:;:<. 
 
 A nienioraiidiim put hy an indoiser at the foot of a jiromissoiy note 
 without the maker's autlmrlt}', declaring it to he payahle at .a ]iai'ticnlar 
 place, docs not ellcct the maker's llaliility, .is it forms no [lart of his con- 
 tract: CiiiKtrd V. Tir.ir. '2 Kerr, N. I!. .'>()."). 
 
 A stipulation Indoi's.'d on a iiite hy the p lyec, is not to he t.iken as .a 
 part of that Ilisti nmi'iit, w ithout evidence that it wa.s w litteii .it the time 
 the note was made : S/ntn v. Milrulf, 4 C.inip. '217. 
 
 coritmotof S"}. Tlir iiiakn- ul' a jifdiiii.s.soi'y note, by iiiakiiio- it— 
 
 iiiaKiT 
 
 'imp'wt.R.fis (") iMi^aocs tliiit lir will pay it accofiliiig to it.s tenor ; 
 
 lii.l Aet,s.3L>. 
 
 i^Moppei (I)) Is prec-ludod from donyiiio- to a lioMcf in <liie cour.se 
 
 the exi.stt'iice of tlir payee and lii.s then capacity to indorse. ' 
 
Till') lill.l.S (11' i;.\('ll.\N(iK ACT. 
 
 •im 
 
 ' 'riiiw in Hiiiiil.ir to tin- .si'coiul fnirt of tli? <'oiitr.i(;t of tin- iIimwit of a SeC- 87. 
 I'ill ((fcxrliiiii;^.'. IJi'forc llitt iii.ikiT |i.i_v-'s ally iHitt^ lie slunilil Ijc cntir'i'ly 
 s.ltisliiil tliiit tlm sigii.ituii' lit' tlir piyif, I'T iiilicr inlm.^cr umli i' wlmiii 
 till' actual III ill If I' I'laiiii.i, Im a ;;i'iiiiiiir anil iii.t a t'ui ^i '1 Mi,'ii.itiiii' ; da' it it, 
 111! ji tiii'ijiry, tiii'ii till' |iayiii('iit tntlu' liolilrr \\ ill lira iiirif iiiilhfy. 'I'lu' 
 mukor liy tln' |i,iyiiiiMt of tlu' llntr ilur.^ imt pusitivily alliiin till' L;inililir 
 iirsH (if till' Hi^^iiatiirc of tlii' payrc, nr (if any siili.Tiiiiiiit iinlm.si r (as tlio 
 
 iirrcptdi' iliMM till' .sii4iiatiiii' uf tin' ilrawiT nf tlir Mil liy i i piiiiL; it) ; I'nr 
 
 III' is I II it pii'siiiiicil til kiiiiM tlniii ; ami if lir piiy-- tln' notr iiiiilfi- tlir sup 
 piisitiiiii tliat tli(! Hi;,'iiaturi's ai'i,' ;,'i'iiuiiii', aiul tlicy iirc nut sn. lie pays 
 iiiiilcr a iiiistaki! (if fart: Slniji mi I'runii-i'oirii Xuli k, s. .'iT!*. I'Ik^ iiiaUi r 
 i>f a null' is pi iniaiily lialilr nil it, mul in Lliis way stands in tin' same posi 
 tiiiii as thii iic(!c;pt(iriif a Mil. liy miking a iiutr, tlir ni.ikir iiitiiiiatis tit 
 all parties that lie eoiisiileis the payee eapalile ul inikiii^' an unler snlliri 
 lilt to traiistei the property in (lie imte. It is a i,'i'iu'ial priiieipie, appli 
 ealili' til all 111 .;iitialili- sii'iirit irs, that a peisuii ^liall not ilispiile llie puuir 
 ot aiiiillier to iiiilnrsr siieli all in-triiiiit lit, cspeeially when In; asserts, liy 
 till' insirnnieiit wliiili he issues to the wnrlil, that tin; other has sueli 
 jiower: Ih-'ij/lioi \. Jidli. -1 \\. !>i ('. •J'.ill. 
 
 Messrs. 
 
 11 place. 
 
 the linily 
 
 s c. i;. 
 
 I ken as a 
 the tune 
 
 HH. SlllljcCt to llll' |ll'()\lS|illlS III tins llill't, fllnl rXCI'Ilt JIS A)i|illrlltloll 
 , , , . ' . •Ill • • .' 1 • . 1 • III !i:irl II ti> 
 
 l>V tins .scctlDll J)r()Vi(lt'(l, till' lU'oNlsinii"; ol tills Act ti'l;itiii;4 ""'''''■ 
 
 *,.,,,. , , • 1 I .... Imp Ai't,s.si> 
 
 to lulls ot I'XcllilllLrt' aiiplw Ull li I 111' llrCc-s;ii \ lilDillllcntliills, 
 
 1 1) [ifdiiiis^ofy notes : ' 
 
 '1. Ill aptihitiLC tliosf i)i'o\isiiiiiN tlir iiiakrr of n tioli' -^liuli <'"ti'-i'|'iiJ 
 
 ' ' ■ '^ ' nil,' liriii>. 
 
 lie (IcciiK'il to corfoiiotiil with till' .•icci'jit' ij- III' a li'ilj, aiul 
 lli(*lifst imloi'si'i' of anoti'>liall lie ili'i'iin'il to corrr^iionil 
 with till' ili'awfi' of an ;u-ci'|iti il Ml! iinyaliji- to ili;i\\ ri-',s 
 oilier : - 
 
 8. 'riio followiiiu' nroxi^ioii- as to liills ill) not aiipU' to "'"' !'i"o- 
 
 _ '_ , ' ' • , nn- .1.1 Ml. I 
 
 notes, iKimely, pi'o\i.siiins rclaliiii;- to — "ri'vv 
 
 {(I.) Pfeseiitlilent fof aceeiitanee ; /*,) Aeeept aiice ; fr.) 
 Acceptance .s/(/J/'(^ protest: d/.) liills in a set : '^ 
 
 \. W'lieie a iofei^ll note is ilisliotlol'ei], pfote-.t tlleleof is Aitnf r.i-n 
 
 unnecessary except for the presitrvation of the lialiilities 
 (>♦' indoi'sers.-^ 
 
 ■ The " iieeessary niodilieatiiiiis" to tlit; jirovisioiis of the .\rl respeet- 
 iny Hills of l'',.\'ehanf;o are siiggestc(l in general turiiis in the notes to the 
 several sc'ctions S'2-.SS rel.itiiii.' to pi-'-; lissory notes. 
 
IMAGE EVALUATION 
 TEST TARGET (MT-3) 
 
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 12.2 
 
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 7] 
 
 <? 
 
 /^ 
 
 A 
 
 '^A 
 
 <r. 
 
 [w ^:'/ 
 
 '^^> ■% 
 
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 7 
 
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 Photographic 
 
 Sciences 
 
 Corporation 
 
 23 WEST MAIN STREET 
 
 WEBSTER, N.Y. 14580 
 
 (716) 872-4503 
 
 >» %f: 
 
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 '^ V<' 
 
 V- 
 

 '€P. 
 
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 <9 
 
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 -Ol* TlUi HILLS OK KX(JliAN(ii; Ad'. 
 
 Sec 88 '•' I'hn lull! lofunoil In in »i>ti^ (5, p. \'M, tliii* cuIi iiulorxtT nf a Itill nf 
 
 ' (!XoliiiiiL;t' is ill tlif i:li ir.ictcr of a new ilrawrr as t" Miilc^iMiiifiit pai'ticx ti> 
 
 tlic hill, (loi.'s not iipply to proniisniiry iiotus, for ollici \\ is-; ho wonM 
 bcuuinu ii p.irty li.iitlu iii^xt uflci' the default of the niaki r. 
 
 ° 'rii('«(!ctiiMisof till! Act wliiiih ito not iipply to notos an- the f.illnwinj,' : 
 i'lL'siJutiiicnt lor aci.'upUincL' ha. 'MV.i ; Acuo|)tanot', us. I7I!>, ant! 11; 
 Acc.'L'pt.iiiL't; sii,j)r(i protctt, m8. (i'l(}7 , Uiils in <i Hut 70. Not" do tlin folliiw 
 lug HL'ctions apply to proniiiisory tiotus, s.s. ."{, 4, 5, (5, 21 suli-s. 1, .'l(J huIi-s. ',i, 
 A-. ')!, ss. 7'iHI anil tlio special clauses referreil to in otluT notx-.s. 
 
 ' 'rill- last scMitencu to this claus(> is nut in llic lMiL,'lisli .Act, ami the 
 cll'cct lit it is to ni iki; it ciini|» il-v. on tin' lioMcr of a fureif^ii pruniissmy 
 note, wliicli has li '(.'n indorsei y\i'. <vlietlu!r suili iii'lors rs arc, .-r avi- 
 not. re-.iiiiiits of ('anala. to have it jMotestcil for non-iiaynieut, iu'corcliii^ 
 to the rules aiiil proccilur- prcac if'i.'-' ):i i. ">!. 
 
 PAllT V. 
 
 SITPPI.KMKNIAIIY. 
 
 <j.>o.i fiiith ^4| \ tliiii'f i.s (Icoiiicil to Ih> iloni' in ''ood f.iitli, widiiii 
 
 imi)..\ii,s.'.() j^]„. |,,,.;iiiiii^f of tliis .Vet, wIhti' it is in t'uct doiir lioinstly 
 wht'tluT it is iloiif McixliLft'iitly or not. ' 
 
 ' The term "j;ooil faith," or lionn fuli'<, is rcstrictivii, ami is a li'i;;il tech 
 nic.il ixpr'ssi.iii lo which the law has anmxcil a certain nieanini,'. It 
 
 .si;.'nilii's a thiiiL! iloiie leally, with a u I tailh, ami witli an honest, lawful 
 
 jiiirp isc ami intent. It is tin: eomlition of actinj; with .sincerity, anil with 
 out knowleilge of fraud, .-md in ij^norance of any ri;,dit or claim of a third 
 party, :iml without any intent to assist in a fraiidwleiit or otherwise unlawful 
 scheme. Its converse is " had faith," or iiKthi fiil'.'t, whiidt imports .v i;iiilty 
 kiiowlcdj^e or a wilful ignorance, or is the conditioi: of iutin^ in a deceitful 
 <ir lietitious manner, or in a ooloralde or frandnlciit way. Chi rrhini fiifiy, 
 means t!ie hest faith, the suvcruHtgood faitli, or tiic condition of acting with 
 the strictest good faith. 
 
 Ne^digciice consists in doini; that which duty, or commo:i prudcnise and 
 caution, forhid to be done; or the uniission to do that which under thu cir- 
 cumstances, prudence and c.iiition \Nould ri'ipiirc to he done to prevent 
 loss or injury. It is the want of pioper care, caution or diligiMice : /Hi/tfi 
 V. /lirmiiiiili'iiii, II Hx. 7H1. ''Ordinary neglect" is understood to ho the 
 oniiiision of that care which every man of eunr-ion prudence takes of his 
 own concerns : S'off v. Dr./iii/.stir, I Kdw. (N. Y.) TidlJ. Practically negli 
 geuee is the want, or ahsenco, of the care and attention reipiirv-d hy all the 
 eircum»tanecs of cucli particular case. This care and attention ia onjoinod 
 
Tin: itiM.s or i:\(|i.\N(;k act. 
 
 2(i:> 
 
 r a iiiil «r 
 
 p.'irtivn to 
 lie woiilil 
 
 f.illnwiii^ : 
 ). iiixl II : 
 
 till- l'..llllW 
 
 {t! NiiW-.s. 3, 
 
 :t, iind tilt! 
 liroiiiinsDiy 
 in-, .-r ;n>- 
 , a('(!i>r<liii;' 
 
 , williin 
 lioiicstly 
 
 •(^al tccii 
 
 lUlilPL,'. It 
 st, liiwflll 
 
 iiiiil with 
 
 ol' .1 tliirij 
 
 iiiil.iwlul 
 
 Is a iiuilty 
 
 a (Ici'citfiil 
 
 I mil /i'li.y, 
 
 t iiij; with 
 
 Iciii'c ariil 
 IT tlu! eir 
 pit'vcnl 
 >•.! : /;////// 
 
 to 1(0 tho 
 krs of his 
 
 lly iiojili 
 
 \>y all tlic 
 s uiijoilieil 
 
 aii'l ciiroivi'ii \t\ tiif law, ill soiiH' cases as a social iliity, Mieroly in other Sec 89- 
 raifs on till' L'loiioij th.it no |iarliriilar trust wa.s assiiiiu.l or tiinli'i taken. '""" 
 
 It is iloiiKtfiil will' tiler the onlin.uy eare ami at tent ion i'ei|iiiieil ol' a |>arty 
 liy till' law, can Irei- him Iroiii the eh ir:,'e of iic^'lii;i'in'e in a pivrticiilar oaHO, 
 ami whii'h e;iiinot he ileliin'il otherwise than as t > the care ami attention 
 W llieii ex|ieiien''e has t'oiiiel reisoiialile aiiil lieci'^sii y to |il('Veht I jlllV to 
 others in like eases: ll'.//s v. \, ir i i.rk Cii/rx/ I! C,,., •_'» N. N'. IM7. 
 \,.^rli|^,.|ice or earelessiii'ss, when eonsiileieil in eoniieetion with tli>' .sui • 
 roiiiiilini,' eirelilii.stalu'eB, may he eviilelicc of luiilii jIUh : Swan v. \orth 
 ll)i'i>li AiKlndlnn Co., -J H. ,V ( '. Is4. 
 
 Till! tost of /lO'if/ 'i'(/i < ,'is re^'.iiiU I'll tr.ili'.a -tioiis. lia-i v:uie<l [.'really. 
 Previous to IS'Jd. the law was niinli :is it iiow is iimler th<' A' t. lint 
 iimler the inlliieiii'e of |,iir>l Teiitei-'leii, line care ami eaiilion was in.iili! 
 till' test {<-'i// V. Ciii'iil. ,"i l>. A: I!, '.Vl\) ; and this |iiiiieiple seems to have 
 lieeii ailojiteil hy >. !) <if tile Imliaii \vX. In IS.'M. thet'ourtof Kind's 
 lieii'li held that iiotliiii;; short of ;.'ross m glig. me coiihl di'feat the title 
 ol' a holder for v.ilue, {('mtih v. ./n.//., .■) \\. Ik Ad. ild!)). Two yeais later. 
 Lord l)elini:ili stated it as settleil l,iw tliat Ind f,i it li .iloiii' i oiiM jileM'tit 
 a holder for v.iliie from reeoverinj^. (!ross neLili^ene. mi:.dil he e\ iilenee 
 of ImiI faith, hut was not eomliisivi' of il : Cliiilimrs nn HHI^, '17t'.\. " I 
 eonsider it to lie iiilly est.-ililislnd tint if \'.diie lie '.'i\i n for a hill of 
 «'Xehaiioc, it IS not eiioiii;li to show tli.it theie was earilessmss. m uli 
 i_'i'nee, or fooli^hiu'ss, in not snspietinL; th.it the hill was w roni;, w hen 
 tliere wire eir<'iiiiistaiiees that might have le id a in. in to sii-|mi t lliat. I 
 take it th.'it in order to make a defeine tu an action on a hill of c\eli,'in;;e, 
 it is necessary to show tli.it the person who i.'a\e v.iliie for the hill, 
 M liether siirh value he great or small, was all', cted with iioti'e that tlicie 
 was something wrong ahoiil it when he took it. I do not think it is 
 III cessary t hat he >lioiild li,i\ u li.id notice of w hit the pai ticnl ir w mng was. 
 If a man knowing that a hill is in the hands of a pi r~"ii w Im had no right 
 to it, slionld huppeii to think that the man had -^loh n it. vvln'ii if he had 
 known the real truth, he would have found not th.it the m.iii had stolen 
 it. liiit that he h.id ohtained it hy false pi'itcnces. I think tli.it would 
 
 not m.lkc any dill'creliee, if he kllc«' tlleie was solin tiling; wroii;; ahollt it, 
 
 and took it. Jf he take it in that w.iy. he lakes it at his peril, Ihit 
 then .sinh evidenei' of carelessness oi'hliiidmss, .is I have referred to may, 
 witll otiii 1' evidence, he good e\ idciice upon the iilli slion whether he did 
 know there was soinctliing wioni; in it. If he was, (if I iniy use the 
 phrasei, houestly liliindi'i iiig and caieh ss, and so took a hill of cxch.'inge. 
 or a hank i ote, when he ou^ht not to li:i\i' t.ikeii it, >tiil he is entitled to 
 ri'covcr. Hut if the facts and circiiinst imes are siirh that the jury, or 
 \> hoever has to try the (|uestion, coine.s to the conclusion that he was not 
 honestly hluiidering, hut that he must have had a siis|)icioii that there 
 was .mimetliing wrong, and that he refr.iined from asking ipnstions, not 
 hecause he was iin honest hlunderer, hut heciiise he tliouidit in his own 
 secret mind, I suspect there is Muinething wrong, and if 1 make further 
 34 
 
mi^ 
 
 2(l(; TMK lUM.S OF KXCHAN(JK ACT. 
 
 See- 89. in(|nirj', it will he no Ifnij^iM- my suspecting it, but my knowing it, an<1 
 ' then I sliJiU not \n\ iildi- to recover ; I tliinU that is ilishoiu.'.sly : " /*ir 
 
 l^>r(l l>l.'u;kl>iirn, in Jaius v. (!i>riliiii, '2 A\)[>. ('■iin, (i'iK. Tliis section is 
 ol)vioiisly foniiilc:! on the ilistinrtion p<>inti'<l <iiit in .fi>ii>x v. Unnloit, by 
 Ij<ir(l hliicklinrn, hctwccn the cise of a jicisom uiio was " honestly blun- 
 (hiring iind careless, "and tiii' I'.ise of a person who has iieted not honestly, 
 that is, not necessarily with the intention to defiand, but not with an 
 lionest belief that tile tr.msaction was a valid one, and tint he was deal 
 ingwith a good bill: /'»/■ Dcnnian. .1. , in Td/nui v. HiiJiir,'2'M}. 15. D.H*;". 
 
 SiKimture 
 
 JMK WlitTc, l)y this .\(;t, any instrument »)r writing in 
 
 'I'mp^Art 1 91 i'<!(|niii((l to 1)0 signt'd liy smy jtfrson, it is not necessary 
 
 that he sliouM sion it with his own hand, but it issiiflieient 
 
 it' hi.s signatuiv is written thereon hy some (jther person hy 
 
 or under Ins aiitliorit v : ' 
 
 As Ut Hfiil (if 
 (nr|i(>ratioiiN. 
 
 2. Ill the ca,se of a corporation, wliore, l>y this Act, any 
 instrument or writing is re((uired to l)e signed, it is siitfi- 
 citsnt if the instrument or writing: is dn'*,' '."aied with the 
 corporate seal ; l»ut notldng in tliis seucion sliall be construed 
 as r«Mj;,iring the liill or note of a corporation to be under 
 seal. 2 
 
 ' " r>y or nndei- his antlmrity."' This clause authorizes an agent to act 
 for any of the parties to the bill oi- note, in .any of tiie capacities that 
 such person ni;iy become parties to such conti'acts. The general iplestiou 
 of agency is discusst^d in the notes to ss. iT) and "JO, pp. IU(I-I()S. See fur- 
 ther, s. .'{ as to the signature of the drawer of a bill ; s. 17, the signature 
 of an .icci ptor of a bill ; s. "JO as to a si^'natuI■e on a blank pajier ; s. "iH, 
 the signature in .i trade, or assumed, or linn's name ; s. '2-1, as to a forged 
 signature ; s. '2'>, as to a signature by procuration ; s. [V2, as to the signa- 
 ture of an indorser ; s. (it. an to the signature of an acceptor for honor 
 .sM/^/a protest ; s. S'2, as to the signature of the maker of a promissory 
 note. 
 
 Il.l.l sriiATION. 
 
 A tii'iii of llamburi.' mei'chaiits iiacl an agent in Dumlee, authorized to 
 sign bills /i( r /line. The jiower of attornt y wa-- lodged with the A. bank, 
 am! on 1st Se|itendier-, it was revukid, but the bank after that date rei.'og- 
 Ilized the agent's acting fur the linn, and acknowledged bis signature /iir 
 prill'.: Held, that .as it is a duty ilevolving on a person discounting bills 
 signed /» /• iirm-. . to inipiire into the extent of the agent's authoiity. and as 
 the bank had know ledge that the agency had ci'ased, the linn was not 
 liable on bills so signed : Stir/li n/' Srnllniiil limik'ui'i Co. v. lithn, S Sess. 
 C^as. 4 S(>r. 4-':{. 
 
 - The determination whether a corporation is liable on a bill or note, 
 involves three ipiestions : (\) Has the corporati<in the leg.d capacity to 
 
THE l!II,[,S OK KXrjIANOK APT. 
 
 267 
 
 win;? it, and 
 ^sty : " l>,r 
 is section \n 
 Knrihni, by 
 iii'stly biun- 
 lot hoiifstly, 
 ni)t with an 
 ic was (leal- 
 l 15. I). :14.'>. 
 
 writing is 
 necessary 
 I .sufficient 
 person by 
 
 Act, liny 
 t is siiffi- 
 
 witli tlie 
 construed 
 
 Ijc under 
 
 agent to act 
 ).icities tliat 
 ral (juchtiou 
 S. Sen fur- 
 e signature 
 iper ; s. 2.S, 
 
 to a forged 
 ) tlic Higna- 
 [• for iionor 
 
 jironiissory 
 
 tliorizod to 
 tie A. li:ink, 
 (late recog- 
 giiatuit! pi-r 
 intiiig \)\\\n 
 lily, and us 
 rni was not 
 '/(//. SSesH. 
 
 )ill «)r note, 
 capacity to 
 
 l)ind itaolf by a contract in the form ^^f a bill or note? ('.') Have th« per- Sec 91. 
 
 HonH who sign Hiich l>ill or note authority from tiie coriioration to make ' 
 
 sucli contracts? (.•{) Arc the signatures of .such i)ersons on the liiii sntli 
 cnnt in form to hind the corporation ? The usual form of signature to 
 ))ind a corpor.ition in a signature by proeiir.ition. as tiiedireetors and olh.-ers 
 wliosigii its eontr.iets, do so as agent.s of flu- eorpoi.ition. The powers of 
 corporations and companies incorporated by the Ddminion I'arliament, (.ther 
 than railway and Iianking eumpanies, to draw, iieeept. or indorse, bills of 
 exchiinge. and to make and indorse promissory notes, are regulated by 
 • !• S. C. e. lbs. s. ;<">, and e. 1 1{), s. 7(1. In Ontario, lorporation.s an<l 
 companies ineorp.nated by th.> Troviueial Legislature, may in like mann«'i , 
 l)eeomes parties to bills and notes under It. .><. (). c. I."(i. s. 'X,\, ami e. I.">7. 
 »• •)!*. Municipal (^lrpor;ltions in Ontario are empowered by 'I'l,, 
 Afinrirlj,,,/ ,trl, |{. S. O. 1HS7, c. 184, ss. 41:5 and 414, t.. m.ike prondssory 
 notes uniler the conditions therein st.ited. Trior to these clauses it h.nl 
 been held that muniei|)al idrporatioiis hail no power to make or issue' 
 prondssory notes : A>/onir;/-(;,,f m' \\ Ci,i-/><,r<t/i,,ii >■/ /Jrhii- />/, i:tsim. :u. 
 Svf also the cases in the notes to s, •2'2, and note .'{ to s. •_'•_', p. Ml. 
 
 li.i.isrnATniNs. 
 
 A buildim.' society, incorjiorateil nmler the general law, may legally 
 make notes under c. itain einiim.-lnM<es : .S'/(^e/;- v. 'J'onmli, /', riniinn,' 
 llnildhiii (uid Sari ihjs SiH ill !/, •_'!• I'. < '. 'J. I!. .■!17. 
 
 Municiiial debentiues, issued by:nitli. ii!\ cf ',liubee law , are negotiable 
 securities, and pass from hand to liand l«y mire deliveiy, ;ind th("lioloer 
 may declare upon tiuni as piduiissoiy notes; Kii^tnn 'J'i»ri,'<hi/is llaiikw 
 M itiiii-'ij.tdiiij (if (i)i,i),li,ii, 7 lle\ . Leg. 44(). 
 
 I>ebentui-es or coupons of .i corpoi ali.),i cannot In* considered as promis- 
 sory notes, where such comp.iny has no autiioiitv to make notes : <l,ililc^ 
 V. l\t,(ii(lo Stird /,'. Co., 14 U. C. ('. I*. .")i;{. 
 
 JM. Where, by tliis Act. tlie time limited U>v ddin^f any xonimsinMB 
 net or tiling' is less than three days, in ncUonin*,' time, iion- ril^iMnn 
 l)U.siness (lays tire e.xcltidi'd : ' ikjii-Ihi.'-iiicss davs, lor tlie "ftm.... 
 
 .v.,..^ V L\ • k L .1 1 • ' , . . linii Ai't,8.98 
 
 jnnpo.ses ot this Act, me.-m i\u> days nifiitioiicd m tlie 
 fourteenth .section of this Act: jiny other ihiv i.s a hii>iness 
 'lay.' 
 
 ' Part of this clause is taken from the Ijiglish .\(t. See tlie notes to 
 s. 14, pp. (i()-(;4. 
 
 ^^':i. For the purpo.ses of tins Act, where' a i)ill or iKjte is wi'"» ""Umb 
 
 1 , , ill • 1 • .... I'^tiluivHlent 
 
 reciuired to bo protested witliin a sppcihed tune or liefore '" po>u.st. 
 
 „ , ' Imp .\ct,sl»-''. 
 
 some further proceeduio- is taken, it is siitlicieiit that the 
 hill or note has been noted for protest before tlie expira- 
 
>-J it 
 
 •Jds 
 
 TMK nilJ,S OF KX(;HAN(JK ACT. 
 
 Sec. ^. tioii (if tlic spci-ilicd tiiiw! or tlie tnkinj,' of tlu> proceed- 
 ing: ain! tlic formal ])rotest may Ik,' extended at any 
 time tliereafter as of the date of tlie notin^f. ' 
 
 ' 'I'liis cliiiisc is ill pint ii r(^|>rtitiiiii of tlit; |ii'(ivisiiiiisiif s. ")! .siiIih t, wiUi 
 ii luicussiiry |)i'<ivi.si()ii iii:ikinj{ it .i|i|ilii: ililo to cases of iicinjiitiiiiut! and ;>.'iy 
 iiu'iit fur honor uiuKr hs. (U(i7. A .st.ituti; Mpceifyinya tiiiic witliiii wliicli 
 a imlilic olIiciM- is to perform an ollii-ial act aH'ciliiii,' tliu ri;,'lit8 anil ilu(i<'s 
 <if ollitMs, is (lii'L'ctory mcifly, unless the iiatnrtMif tiieact to lie jicrfoi mtti, 
 or till! plii.iS''oloi,'y of tlic statute is sneli tliat the desiijn.ition of time, must 
 h(! cmsidered as a liniitatioii of the |io\ver of tlie ol!i(!er : I'fo/ih v. AUrii, 
 G Wend. JSii; l'r(,/,f,- V. ('<>,,{■. 14 IJuli. -jri!) ; .larkMin v. r..//i/</, riCowoii 
 'J(i!(. Wlnrc; there is no suiistaiili.d reason why tin,' tliinj,' to lie done might 
 not as Well lie dine alter tiic time prescriln d as liefore, no jiresniiiption tiiat, 
 allowing it to lie so done it may work an injury or wroiii;, noihiiig in the 
 Ai.'t itsi If, or ill other Acts relating to the same siiIpJc. t matter, imlicating 
 tiiat tiie i.cgisl.itnrc did imt intend ill it it shoiilil rathi r l>e done after the 
 time presei ilied lliali Hot to he dmi'' at all ; there tile Courts assume that the 
 intent w.is that, if not done wilhiii the time proeiihcd, it might he tlmic 
 afterwards, lint wiieii any of these reasons iiitervt iie, tiieie the limit i-: 
 estiliiislied : Shili v. M<L<ail, !• Wis. 'IWl. The time lixed for the perform- 
 aiicu of intermediate steps, after jurisiliction has heeii once aeijiiired, tihould 
 he reg.irded as directory "nlv, and an omission to perform one or more of 
 tiiciii in time, would not rcndi'r the whole proceeiling ahortive : Unit'<{ 
 Trust Co. V. Uii'iir,! .<i.il,.-< Fir< Jus. Co., ]H N. V. I'M). 
 
 .1. I', may iKl. W'liefe a di honored hill is uuthorizeil or reiiiiired to 
 
 |.roti'»t . _ ' , 
 
 will re no 1),. i)i()ti!sted, and the si rviees of a iiotuiv cannot he ohtained 
 
 iinbirv ' ..... 
 
 acoi'-iiii.'. ill l\^^, pluee where the hill isilishonore<l, ' any in>.tice of the 
 ])eaee I'esident in the jilaee may j)resent and protest sueli 
 hill and !L,Mve all necessaiy notiees, and .shall hav(! all the 
 necessiiiy powers of a notaiy in lespect tliereto :- 
 
 2. The expense of noiint;- an<l protestinif any hill or 
 note, and th(^ postai^fs tluM-ehy inotirred, shall lie allowed 
 and paid to the holder in addition to tiny inttMest then-on: •' 
 
 .*>. Notaries may ehar<,'e the fees in each Province here- 
 tofore allowed them :•* 
 
 4. The forms in the tii'st schednle to this Act may he 
 ij.sed in nt)tinif or protesting any bill or note and in giving 
 notice thereof. A copy of the bill or note and indor.senieut 
 
 Kxpenne.' 
 
 Kc'co (.harge 
 aliic liy 
 Ntitarii-H. 
 
 Korius in 
 Schi'ilnlf. 
 
pltH'Ct'll- 
 
 l ftt any 
 
 lb 8 1, with 
 
 uo ami 5my 
 
 itiiiii wliicli 
 
 ami <luticH 
 
 pfrfotimd, 
 
 ■ time, imist 
 
 </(' V. A Hi II, 
 
 \fj, 5 (liiwoii 
 
 <l(im' niiglit 
 
 nptiiiii that, 
 
 I llill^r ill tlii- 
 
 r. iiHlicatiii;^ 
 iiic after tin- 
 iiiii' tiial till' 
 
 Jit 1)1! (Inllc 
 
 thi' limit is 
 in; lU'iform- 
 lircd, »hiiiil(l 
 
 ■ or iii'Mc <>t 
 \ ; Uniliil 
 
 ■(|Uil'(Ml to 
 ()l>t;iilH'<l 
 let' of tilt! 
 I'St ,siic}i 
 
 all the 
 
 bill or 
 jillowcd 
 uTt'on:-' 
 
 iico here- 
 
 in ay ln' 
 111 L;iviM<; 
 jrseineut 
 
 THK lULI.S OK EXPHANOK ACT. 
 
 '_'(;!► 
 
 may be included in the forms, or the (nijjjinal bill or note Sec ^ 
 may In' annexed and the necessary ehanyes in that ln-halt' 
 made in the forms :'"' 
 
 .'). A protest of any liill or note, iiiid fuiv eoiiv tlicreof as i'rnt..«t 
 
 ' •■ _ ' . fii ima/acif 
 
 copied bv th(^ notary or instice of the I'tMcr, >li!ill, in nny oviiiin-i-ot 
 
 ' •' _ . . . I'lcsi'iiiatinii, 
 
 action \n- ni i iiKi iKcic e\ idcnce ni' iiitM iitiit iiii ill id dislmiior ii ii""'"- 
 
 ' • _ ' _ anil nolifc 
 
 and also of service of notice of Mich presentation and dis- 
 honor as statrd in ,;cli protest." 
 
 ' Till' imwcis and II sjionsiliiiitits of iintarii s piilijii' iii ( liil.u ,i). arc pro 
 
 scrilifii ill R. S. (f. 
 
 I.VI. 
 
 A imtiirv i.s nut a miu 
 
 iiii.sti lial < diet'r : 
 
 lirimki's Xi>/iiii/, Mi. 'I'hi! ordinary rule as to d' lij; itimi i.s that a minis- 
 terial oliieer U'ay aiipoiiit a d(']nity, Imt a judicial ollirer i amiot : /Inxi ill's 
 l.iiiii/ Mii.iiiiis, sta. .\ notary e.Tumit di legate his ant hi'iily or fiiiictiiin.s, 
 or ( ni|>o\M'r any stiaii^^er or tlnrd person to .iet. or note, or make protest.^, 
 or notarial iiistriiiiiiiils in the nann- of the notary, except in tlie comnuiii 
 ea.'-e ot a elelk or apiileiitice, actilii; on l.iiiall. and in the otiice or 
 actual eiMployment, of the notary in the usual way of luisiness. ,\ny 
 notary pl•e^umill,L,' so to attcnml to delej;atc his ]io\\eis or duties to ,•! third 
 pei.son, or to note protests, in the name of a i.ot.ii' will lie I'aMe to he 
 htriick oil the lolls. And any iin<pialitii d pi r.-C/ii jn ■loim'.nj.' any of tli^; 
 atiove acts or any act pertainiiij,' to the iliiee or ji'a.-tiee of a notaiy is 
 lialile to a penalty. A notarial doeiiin' lit soli mni/i il liy .in iinipi.-dilied 
 practitioner, preti'iidiiii' to act for liim.self or another, is utterly iisehs.s. 
 ami inoperative for all legal jmrposcs : liviKiki's yuUirii. lilt). A piole.st 
 without .'■eal is .admi.ssihle as ividiiice of tin- fads t in i em eoniained : 
 /i'i/.s.s(7/ V. Ciojhni, 1 U. (', (■ 1'. -I'.S. The notary who I'lolests a note 
 need not U.se all otiicial seal : any seal wliicii lie lieclaies in the jirotcst to 
 be his dllicial seal, is sutlicieiit : (oiinturriuf llniik v. /lidjn, 17 VC. 
 C. I'. 47.1. 
 
 '-' The authority of a justice of the peace to ad in pioti stinv' ii ''ill- 
 depends upon two eontiiigeiicies. (I I that the services of a notary I'annot 
 be obtained at the place; ami I'J) that the ji'.stiee of the peace is , a resi 
 dent in " the place where the bill is dislioiio> d. ' Tlie>e two f.-uts luing 
 established, the justice can do the thiee ; ets rii|niicil. (I jiisent tlu' 
 bill for payment, and it dishoiioied. ('_M note the bill fm I'lnti.-it ; and 
 (3) extend the formal jirotest as jucseribed in s. il'i. 'II i m' acts slimild 
 be done within the limits of the jurisdiction pnsiriled ; and must be 
 doni' by the justice himself. The rules as to juiisdidion are that a mag- 
 istrate cm have no assistant or deputy to execute any part of the tliities 
 of his ooininissioii. The duty is personal to liimself, and is ;• trust he 
 cannot delegate to another : Kiiiifk v. ('(Uiiiiii<i/'ii, |!1 How. St. Tr. KKi.'J. 
 Where an Act of Parliament establishes a tribunal for a particular local- 
 
ip^ 
 
 
 270 
 
 TlIK IIILI.S (il- KXrH.\X(iK ACT. 
 
 |i. 
 
 SeC- 93' ity, all iK'tH wliirli nrv to lie iIdiic iiiiiHt \n^ iIoik? within tlit! iiirisilii'tioii, 
 uiiU'MH tin- Act fXprrHsly, or liy ni'i'i^ssary iiiipliration, «iiaii!(;s th<'iii to Iks 
 (loiio clHcwlicif : Hx inrti O' l.o'ifi/iii, l>. It. (i ( 'li. -KMi. Tliu Kiiglisli Act. 
 (8. (M) iiiitliiiri/.i-s " ni,y lioiiHi-liiijili'i- III- Hiilislaiu-ial rtixidi'iit of the iilact;" 
 to act wliiT(! till' Hcrvici'M of a imtary I'uiiiiot Itr itlitaincd. In f^in'ln'c a 
 ju!<tic«; of the |tojifc' waa authnrizcd to net in protuHtiny ImIIk l»y Art. 'i.'MM 
 of till! ( "ivil ( 'dih'. S(» in the Tnitfcl States, a jiistici" of tln' iicai'c may 
 oiiiciato as a notary piililu.', in making iloinanil and ){iviny notice of pro- 
 test of liills and notcH : Ausliit v. Milhi\ 5 McLean XttW. It in not 
 expre.H.sly .stated tint the justice is to !»(■ entitleil to charge tlu- same fees 
 as a notary, Imt such may lie inferred from tiie ne.xt clan8u. 
 
 " This is su|)plementary to thu ulauHc iis to dainagcH allowe<l tu the 
 holder of the bill hy a. 'u. 
 
 * A tariff of notirial fees for certain notarial acts, was |irc8crilK'(l by 
 W S. ('. c. I'J.'J, s. •_•"), for all the provinces except New Mrnnswick, IJritiah 
 (Columbia, and Manitoba. In New ISriiiiswick the tai'ilVis prescril»e(l by 
 a Provincial Act, 40 Vie. c. II. Hitherto thu only notarial proceedinj^H 
 taken in Ontario on the <Iishonorc)f a bill or note, were protest, and notice 
 of protest. The notaiial fees heretofore charged in each Province, are 
 app reiitly continued in so far as they jire allowable for the particular 
 notari'Al acts specified. This Act authori/es further notarial proceeding's, 
 in addition to a " not ii'c of dishonor, " as follow.s : (I) Noting the bill or 
 note for protest : '_') .\otice ot uotiiiy for protest ; (W) Protest of the bdl 
 or note ; (4) Notice of [)rotest. liut, except in (Quebec, there aic no nota- 
 rial fees allowable for the first two proce(Hlini,'s authori/.ed by the Act. 
 The forms set forth in the schedule provide for dujilicate protests, not 
 mentioned in the .\ct. Where theie are no prescribed fees for certain 
 dutii's of an ollii'cr. the immeuioiial existence of fees of an tillice may be 
 presumed from uninterrupted modern usage, unless there is some eviilenee 
 given of a conti'ary usage : Sh</)liiinl v. /'ni/nt, 1(1 (". I>. .V. S. I.S'J. T,.e 
 nde of law that no pecuniary burden can be imposed on the subjects of 
 this country, by whatever name it may be called, whether ta.\,due, rates, 
 or t«dl, except upon clear and distinct legal authority, has been so often 
 the subject of legal decisiori that it may be tleemed a legal axiom, and 
 recpiires no authority to be cited in support of it : " /Vr Wilde, (\ .1., in 
 Itd.tliiiij y. \'<l<i/, I- (.}. P. -407. The fouiinon law rights of the subji'ct 
 in respect of his property ait^ not to be trenched uj)on. Acts which 
 infringe oi. the legal rights if the subject, or imiiose a tax, must be 
 expressed in language beyond all reasonable doubt : litijiua v. Mallov^ 
 r,ii.,ii, \'2 Ir. ('. L. K. :Wt. 
 
 The tarifTof notarial fees prescribed by R. S. ('. c. 123, is as follows: 
 Oiifitriit, Nnrii Sriiflii, ami I'riiici' I'Mirnrd lalaml. 
 
 Protest of any bill, <lraft, note, or order $() TiO 
 
 Kvery notice '25 
 
 Postage, the amount actually expended. 
 
jiiriHiliction, 
 
 4 tllt'lll to Ih] 
 
 i<liigliM>i Act, 
 ' tli<^ |i|iii-e " 
 
 In <^llr)ii'i' ji 
 
 )y Alt. 2;U)4 
 ! l>ea(U! may 
 )tict! (tf pro- 
 I. It i.s not 
 If Miiiiiu feus 
 
 iwed to the 
 
 escriht'cl hy 
 ick, Hiitisli 
 I'si'rilii'il hy 
 [•rocci'diiij^H 
 , atiil iioticu 
 ■oviiice, !ir«' 
 ' ituiticiilar 
 rooticdiii^^s, 
 
 the hill or 
 of the hill 
 ii<; no uota- 
 >y tiic Act. 
 rotests, not 
 for etTtiiin 
 liee iiiiiy l)e 
 lie evidence 
 
 n-J. T;.e 
 
 Hllhjc'OtH of 
 
 due, nites, 
 -'11 HO oft(>n 
 axiom, iind 
 e, C. .)., in 
 the sulijt'ct 
 \cts whieh 
 ;, nitiHt he 
 V. Mal/oii' 
 
 fullowa: 
 
 . . . . $0 50 
 ... 25 
 
 THE niFJ.S OF KXCIIANiiK ACT. 271 
 
 V'"'"'-. See. 93. 
 
 1'ie.sentinK and noting for n<.n aeceptanee any hill of , xehanyo, and '~'~ ' 
 
 Kee|im^r t|„, „„„„.„„,.,,,.,,,., I J ^^^ 
 
 <'oi)y o( the sain, when iv.|uired l)y tiie holder . :.(» 
 
 Noting and protecting for non-payment, any hill of e.xehange. or 
 
 l"oii.i.ssory note, draft or mder, and putting the mune on 
 
 '••■'•"•••' 1 ,)0 
 
 Making aii.i furnishing th .• holder of any hill or note with a dupli- 
 
 eat.' eopy of any protest for Monaceeptan.-e. or nonpaviiunt. 
 
 with certifieate of .serviee and eopy of uotiee seived up.m the 
 
 drawee and indor.sers /. rn 
 
 Kvery notiee. inehiding the service and reemding .apy .,f th.. sani... 
 
 to an in.h.rser or drawer, in a.Miti..n to th.. po.stages actually 
 
 '""'• • (.no 
 
 \' ir Hniiisirirh. 
 The taritr of notarial fe.^s in this I'luvin.e is pre^erihe.l hy the I'rovin- 
 eial Aet J(i Vie. e. II (\.|{.,, as folh.ws : 
 
 IVesentment an.l noting. ,f hill .,f exchange ..r proini.vsnrv note, f..r 
 
 n.>iiacce|.t.ince or noiipnyni,.nt !jO .'iO 
 
 I'rotest of note or hill of ex.;hai.g.., when ina.lc. in.du.ling present- ' 
 
 ineiit, noting, an.l notice I (^ 
 
 " l!y the Interpretation Act. W. .S. ('. , . 1, s. 7. sul,.... .'M. whe.v forms 
 
 are pivserih...!. slight .leviations tl.er-fn.n t all.eting th.. sul.stan.e ..r 
 
 mlculate.1 to mislca.l. shall not vitiaf them. The f..rms in the .sche.lule 
 I'nuule for notarial acts ami formaliti.s conneete.l therewith, not men- 
 t...ne.l ,a the enacting claus..s .,f the Act; such as -lupli.-ate protests 
 (l-orins !{. C. K. an,l V.), an.l th,. attestati<,n of a witne.-s f. the ,.i,>test 
 madchyajiHti..-e..f thepc:u;e(K„rm.r.) Wheiv th.. forms given in a 
 s..h...lul,! are repugnant t.. tin- statute, the statute is to govern : /.',■ 
 IS„i„vs, I Cr. & I'h. -4(i. .See als.. I),, in v. (Iran, S l». D. SO. 
 
 '■ Ther.! is a similar pr,.visi.)n in the Ontarh. Kvi.l..iu!e A.-t, R. .S. (). 
 18S7, c. til, as. .S|.:«. Section 'M provi.l..s that all pn.t.sts i,f hills .,f 
 exchang,. aii.l pr..mi.s.sory m.tes shall he re.:.iv..,l in ,tll ( 'ourts as /,*•/,»« 
 hvi, evidcn.,... of the alleg.itioiis and f.i.ts tier.in containe.l. Secti.ui.s 
 .Si and X\ pr.)vi.le that the n..te, m,.moiandum, .•eitili..ate, an.l pr.it.-.st, 
 
 m.i.lc hy a notary pul)lie in either Ontari • ^>uei,.... shall he rmnajarie. 
 
 evi.leiice in the Courts of Ontario. A c.py of th.. protest i« also evi.lencc. 
 
 JM. Tlu; provision.s of thi.s Act as t(.> cn>.s.snl elifqucs Divi.i..„<i 
 sluill apply to a warrant for payment of diviilt'tul. 1 l":;'\T 
 
 .■riiMM'd. 
 •The term "warrant for the payment of .lividend," is not di^line.l '""'•*<*.«'-8* 
 in any statute ; hut it is a term used t.. .Icsiguate tin; warrant or che.juo 
 issumI hyahuik, an.l a hlre^i.icd to its cashier or tellers, for the pay- 
 
r 
 
 i 
 
 
 Tin; ini.l.S <»F K.\('IIAN(JK AIT. 
 
 <; i 
 
 h 
 
 ii- 
 •II 
 
 Sec 95- iiu-ni <if (lividmils tn Hh hIhu'i ImlilrrH. It Ih ,'i1m<i !i|)|>1ii-il to llu' war- 
 ^' rant issiinl m I/uhIoii fur tlif itiiyinciit (if tlis i<l"ii<ls nn ( '.in.nliaii u,"^ 
 
 rriiiii' lit Mtm-k anil InaiiH. In l''n^'|.iiiil it i>i appliiMlilf ti< tin' i'tiiik <>f 
 Kii|;l.iii<i ijraft^i ii|i>>ii tli<'ii° I'asliirtM for tlic |iiiy iiKiit nf (iiviiii lids on ^miv 
 
 ('rniiK'iit utiii'k, wliirli an iiiiinnly iiilltti "ilividfinl uaiiaiitH." I'.y 
 
 tlic iiiodi rii iiMi^i'of liiiiikriM anil iiicrcliaiitH, tlicHc ilociiini'iitM w«-r<' often 
 paNHt'il from lianil to li mil, liki' iioti'sof a li.ink,aiiil paid to ln^iin jlil< lioldtTH 
 aftiT a I'crtaiii day. lint il Iiih Iidmi Inld that tliiwi' diviililid warr.ints, 
 not Ix'in;; on tin- taiv of fin in n)';;olialilt' liy law, and tin' iih !;;»• not lifiiij; 
 iniiiiriiioi'ial, so an to Im: coiD^idt'i'til .'is n ciiHtDin liindiii;; n|>(in every one, 
 are not traiiNleraMi', ho as to drfeat the title ol the tine owiit r : I'ail 
 riilijr r. lUiiih 11/ l\i ijliiiiil. \) (.1. II. .'!!t(i. 'I'leaMiry notes is>.||,-d liy tli(f 
 ^ovriini'iit iif till' I'liiled Slates are p|■oIlli^Norv imtrs ; I iti/i il .^/nh ^ v. 
 Iliiiilijiinniy II! I'l'lers ( I '. S ) I7<i. i'ln- pro\ jsion-i a.s to ennMid linipies 
 are i'ontaiii(;d in hs. 7o-M. 
 
 ImpAi'i«'Jii •^•* llir Ctmcf incuts IllCIlliollril in tin' -•■(•()||(1 -clii'iluli' 
 
 to lliis Act fire licii'liy rf|if;il('(l. MS IVolii t In- (•niiiiiii'iici'iiuiit 
 ol" this Act, to till extent ill tliiit sclitMliile iiimtioiii'ii : I 
 
 I'rovifO. 
 
 Piiiviilcil, tli.'it siicli rc|ic;il sli.ill imt aU'rct iinytliinLT <liiiii> 
 or siitlcrt "i, or iiiiy rioht, tit Ic or intcirst !ic(|niif.| or ;ic('iiiiMi 
 lict'orc tlif coiiiiiH'iicciiiciil of tliis Act, or iiny I<'l:!iI \>y htiiI 
 in '• or niiicdv in itspcct ol' jiiiv ^iicli tliiiii;', liolit, titlr or 
 interest : 
 
 Hunk Act. 
 
 Iiii|) Arte, 
 M, (ii'O. Ill 
 
 2. NotliiiiL;' ill llii> Act or in Jiiiy re|><';il ejlii'ted tlnrehs- 
 sh.ill atl'ecl I lie |iiu\isions ol' " Tin liiiiiL- A<t"- 
 
 ."}. The Act of IIh' I'.'irliiiliieiit ol'tirejit Hiif;iiii ]i;ism'(| in 
 :,•''•,•,","' '^ the lifteellth Ve;ir ol" the ivi-ll of His iilte .M.'MestS Ceul'.-e 
 
 f.'!m''iu''' '" ■ ii'titiiie.l "An Act to re.^tiain the iicm,,! int ion o! I'ro- 
 Oanuiiii. niissoi'X Notes .Mnil illliiinl Hills oi" IvxeluiiiL;.' under fi lilni- 
 
 tcd Slim \\ ithiii that fiait ot" (Iicat liiitJiin culled I'in^Iaiid," 
 anil tho Act of the said I'arlianient passed in the seven- 
 teenth year of His said M.-ijisty's leitrn. intituled " An Act 
 for further restraiiiino' the ne^-otiation of i'lomissorv Notes 
 and Iniaiiil Jlills of Kxchaiiue under a limited sum wiLhin 
 that ]>art of (jireat Britain called KiiLflaiid."' shall not extend 
 to or li(> in force in any Pio\ ince of Canada, nor shall the 
 sai<l Acts make void any hills, notes, drafts or orders wliicli 
 have been or may he made or uttered therein. 3 
 
TlIK IIII.I.S (»l" KXCIIANCiK Acr. 
 
 L'7.n 
 
 , tlif wiir- 
 uliiiii nt>v 
 ■ I'.iiiU ..f 
 
 lis nil ;.'i>\ 
 
 lilts." IJy 
 wt'ir <ift«;ii 
 /(/( liiil.lcrs 
 1 waiiMiits. 
 1' 11. .1 ImIii'; 
 t\i'iy cue, 
 nil: I'lirl 
 ir.l )•> tlir 
 .,/ SIiiIk v. 
 
 -rlirdlllc 
 rlici'liirllt, 
 II. '.1 :l 
 
 lill'.^' ilnlir 
 
 ir Mccnird 
 
 pr ictril 
 
 t, tit If .li- 
 
 lliclrliy 
 
 jijisxil ill 
 
 II (l! I'lD- 
 
 I r ii linii- 
 
 lie SfVt'H- 
 
 Aii Act 
 
 lnv N(»t('s 
 
 II witliin 
 
 it cNtflld 
 
 sliall tli(* 
 rs wliicli 
 
 ' Till' prftviKiiiiin of <'. S. V>. ('. <•. VI, nl.itiiiji to tlaiiid^cH u|iiiii liilU Sec 96- 
 draw II out ot rp|n'i- ('aiiiidii, (now Oiiliti io) mi in to liiivc ln«-n ilio|i|i(il ' 
 
 out of the HiiviMcil Stiitntt'H in tlii.t way : In mhcilnlr A to tin- Kfvim'il 
 •StiitutfK of Ontaiio, |H77, I'- -••■■<". tin- |{i vi^^•!^< in<liriitr an ii|iiiiion that 
 tlic cl.'in.scKof tllcaliiivr Art, I'llatili),' to 1 1, 1111:1 ^i moii IoI cli n IiiIIm. air \N It hill 
 tint |)iiiiiiniiin legislative aiitliority . In silniluli- A to tiie llivitieil Stiit- 
 II teH of ('uiiMiIa, IHSti. )>. 'J'2IS, tlitse cIhiim > air m In iliili li fni rejieal ; and 
 on |i. 'i'<'J4, tile clallMN Mere reii'llinii liilrii fiu li |ii:il, iiut no ^lieiial 
 reiivuliiig statutewas pas.-i il, nnli hshilieili.le A 1 an lie so riinsiineij. In 
 
 the "Talile of Acts ami palts nl Ai ts i nllMilidati il, " |l 'J1."1S, Ijir l!i\ iM'IS 
 
 n|i|iear to have oinittid tliisr clanseM lio'n the IIcvimiI SlaliitiN. iSiit 
 the Aet giving etieet to the lte\ ixed Statutes, |iio\ ides tiiat tin |irinti d mil 
 of htatutes shall he helil " to eiiil>iiily t he several Aits and Jialtsol' Aets 
 inontiolied to he re|iealid in Sehednle A annexed to the ."aid loll. " I'y 
 H. 8, however, it is provided that, wheie the l!e\ised Statutes are nut the 
 Haine as the repealed .\its, the provisions contained in the Itevisid .'^t.it 
 uteH, are to prevail. 
 
 - The ll,nik A<i here referred to is I!. S. C. c. I'Jd. 'I'Ih' I'.ank Aet of 
 IMDO, ;VJ \'ie. e. ."tl, is to eoine into foivr on the 1st July, IV.M. 
 
 " Under the operation of the Aet :{•-'< icu. III. e. 1 (''.('.) the Kii^diuli 
 Htatutes then in I'oree, were intiodueed iiito I'pper ( '^in.'id.i inow (intaiio). 
 Tiny were !il.>^o hehl to he applieahle to some of the other I'lovinees ; and 
 several of the deeisions in tho.se I'loviiiees deehiie that the statutes relating 
 to hills and notes are in force in tin in. I'.nt this Aet does not expressly 
 repeal the i']iigli>h statntts so introdueeil, e.vcept the two jure siieeially 
 named, (and those only w itliin the " I'luv inees "| . it may lie a i|iiestion 
 whether the otln r flatntes lelatin;,' to hills and notes are repealed, as there 
 is no general repealing el.nise in this .Act. 
 
 SMJ. W'licre aiiv Ai-t of •liKMiimiit ict'cfs (o ;m\- ciiact- <'""•'<•"'•• 
 
 tl"II Wltll 
 
 mont ri'pfiil<'<l liv this Act. tlir Act m- (Idciiiiiciit sluiil lie '■<ii;r ^it^ 
 
 oonstfiicd and .sliall ojicfatc as if it iilriicd to the c'lrrr.-,- 
 pondino- provisions oi" this Act. 
 
 iiii|...*ct.va;> 
 
 l^'J. 'riiis Act shall collie into rmcc on the tii>t (|;i\ nf <'Miiinii.iicc- 
 
 Illrlll of .\lt. 
 
 Scptcnilicf next.' 
 
 ' 'I'he general rule I f law is that ii statute is not tn le eunst rued as 
 |■etlo^■p^ etive unless it contains express terms imlicating that such was 
 tin; intention of I'ailiaiiU'nt : '/'li'inip-ioit v. /.'ir/.-. ,'{ ( '. Ii. ,">|(1. It is a well 
 Hcttled rule that the Courts are not to construe an .\ct to I' ii-tiospective, 
 BO as to allcct or alter existing rights of jiariies unless it .ippcir iViMii the 
 Act that such was intended; (^iii/lir v. A/a/i/i. son, '.t t.i. I'.. I>. (i,J. .\ 
 Heclaratory Aet is in it.s principle rotroHpj'ctise as well as prosiiuctive : 
 hurl 0/ MiiutilKishil v. (irvnr. 4 U. ( '. (,». 15. 23. 
 
27+ 
 
 TiiK itii.r.s OK i;xrnAN(;K act. 
 
 On till' 
 
 IS 
 
 FIRST SCHKimi.K. 
 
 ^'iiKM A, 
 NkTINO KoU NtiN VrCKI'TANrK. 
 
 (Copy of Itill mill I w lor mm cuts) 
 the iihiivi; bill was, hy liii>, ut tliu rL>(|lll!Ht i>f 
 
 |)irsi'iit('il for ai;(^i'piiiii'<- to K. V., tlit* ilr.tw*!!!, pcrHoiiiilly (nr, at hin roHi- 
 
 tleiico, otliiM' or iixii'il pluuc of l>UHitiuHM), in tlio city (town »r villa|{u) ot 
 
 , ami I rt'('fi\ I'll for answer, " ;" 'I'liu Huid l)ill Im thcrvfort! 
 
 notoil for non-aucoptance. 
 
 A. It., 
 
 (Ihih mill /ifiiii) IS . yofiiri/ I'lihtic, 
 
 Dill! notii't' of the altovn was l>y mt- Hcrvcd iiiion ! * ' " ! the 
 
 [ " '■' ''' ! perHonally, nil the ilay of 
 
 ' inilo-srr, ' 
 
 oliicr or MHual plai^u of IniHincss) in , on tliu 
 
 l)y il('|>ositini{ siioii notioi;, <lirt'('tcil to him, at 
 
 post iillici; ill till! city [town or villti^cj, on the 
 
 prepayinjj tin; postage thcrcun.) 
 
 (Dtitt and iilarr) 
 
 IS 
 
 (or, at his rfsidciuH', 
 
 •lay of {or, 
 
 , ill Wrv Majt'Hty's 
 ilay of , anil 
 
 A. 15.. 
 
 Xuluri/ I'lMti: 
 
 KoitM 15. 
 
 I'KOTKST KOU NIlNACCKl-r.VNCK iiK KuR SON • I'AYMKNT OK A JUI.I, I'AVAIILK 
 
 IIKNKKAM.V. 
 
 (('opy of Hill mid Indorminetili.) 
 On this ilay of , in thu year IS , I, A. 15., notary piihliufor 
 
 the I'lovince of , ilwelliii;,'iit , in the Province of , at tin- 
 
 rui|iiost of , iliil exhibit the original bill of i-.xchaiij^e, whereof a true 
 
 1 -i... i. I' 1' ti ( drawee ) ., » _ n / 
 
 copy IS above written, unto I'.. I' ., the [ J- thereof personally (or, 
 
 y acceptor ' 
 
 .it his residence, oHice or usual place of Inisine.ss) in , and. sjteakiii;; 
 
 to himself (or liis wife, his clerk, or his servant, fee,,) did demand 
 
 (acceptance I therefor : unto which demand | ''" ) answered : •' 
 I payment i v she J 
 
 Wherefore 1, the .said notary, at the rcipiest aforesaid, have protested, 
 and by these presents do protest against the acceptor, drjiworaad indorsers 
 (or drawer and indorsers) fif the said bill, and other j)arti(!s thereto or 
 therein concerned, for all exchange, re-exchange, and all costs, damages 
 
 and interest, present and to come, for want of ^ ' ' ! of the aiid 
 
 l payment J 
 
 bill. 
 
 All of which I attest by my signature. 
 
 (Protested in duplicate.) 
 
 A. 15., 
 
 Notary Pithlir. 
 
 
!Mt of , 
 
 , at liiM rcHi- 
 >• villago) of 
 I \h tluirufoni 
 
 lis I't'Hidoiiuo, 
 
 of (or, 
 
 It!!- MiijeHtys 
 
 , and 
 
 try I'lihlif. 
 
 m.l, I'AVAIILK 
 
 ary piiltliufor 
 
 , at till! 
 
 lieruof a true 
 
 eraoiially {or, 
 
 iiul, Hjfeakiii;; 
 (lid duiiiaiiil 
 
 •lid : " 
 
 \i! jjrotesteil, 
 iiiid indorsers 
 ies tlieroto or 
 ost.s, daiiiagfs 
 
 ( of the Hiiil 
 
 THE BILLS OF KXcirAVOE ACT. 
 
 FoKM C. 
 
 .•HOTRMT KOR NO.V.AC.K.TAN0K OK KOH NON.AVMKNT OK A H>U. rAVA.M.K AT 
 
 A HTATK.n n.Vt K. 
 
 Vopn of Itill niKl /iiili.rsrmi iiti. 
 On this day of , i„ the y.ar IS . |. A. B.. ,„.t«ry pul.lir 
 
 or the I Wnuc of . ,«,,„i,.,, ,., . ... tl,.. ITovuieo of ' , at 
 
 the ro.,„o«t of . ,lia .,,,.i,,.t t,,.. ,„ .^,i„,^, , .„ ^,f ^,^^.^^^^^^^^^ ^.j,^.^^,^,^ ^^ 
 
 true copy is above written, ui.to i:. I-',, the [ '''''^■'••' \ theii-of, at 
 
 , being the Btateil place wheiv the Haid''bii|''is payable, and there. 
 Hpeaking to did demand { "j;;;^^-- } .,f t,. «ald bill ; unto wl.ieh 
 
 demand he answered : " .'• 
 
 ■Ju^tr '■ ''"r';^""''^'->'' '^' t'"- -l"-t afor..said. have protected. 
 
 owe. and .ndorsens, of the said bill. ...d .11 otluT parties theret ■ 
 
 theiein eoncen.ed. for all ex-lun,.,-. r. ..VLhanKe, .osts. dan.agi. and 
 interest, present and t.. conu i ,r want of | "''^'I'tanee | ^^^ ^^^^ ^_^. ^ ^ 
 
 All « 1 • I t ^ payment / ' ' ' 
 
 All of which I attest by my si-nature. 
 
 (I'lotested in duplicate.) 
 
 A. H.. 
 
 Xotury I'uhlii-. 
 
 FoHM l». 
 
 PROTKHT KOR NON.,...VMK,ST OK A ,.,U, SoTK,.. IHT VOT PKOTHSTK... K... 
 
 NoN-ACCKl'TANCK. 
 
 If the proUM M nuvl, h;, il„ ,,„„„ „„,„ „.,^„ ,^,„,,/ , 
 
 ;:r;"''"'^f f"-\"'-' '^-""-v / ,.... f.:X"n:: ■ 
 
 <nai.,,u...,h>l.: ,ronl. •'an.lafti.ru-.rds on. Ac..-' ..„n,!nni,„ a. n, nl 
 /astpr.c,'do,.,/onnj.nfinlro,/uri,,j/>.f W/. .v.vA •• did " ,u,7 "exhibit • 
 
 •tZ'^7""V" "/"'' r Y'""""'-'-' '"'"""" "'•■ "■'"■''■^ -'written-,,:/ 
 unto, the words: "and which b,ll was by „,. duly noted lor n.,n.ar....,t- 
 ance on the day of .■ ' 
 
 IhUiftht,,m,.t;.not muh Injth.' sum- aofu.y, „, „ i, .h„uhl f.lh,. „ 
 copyoftU,,on<juian,ill„n.l hulor.emenf, and uofiw, mnrkrd on Ihr hill - 
 
 andlhin in the tirutist 
 
 /iro/rif inlro'fno', in a pannthesit, deliretit th, 
 
 ten" a/(// "unto," ///(' ir„nU : "and which bill 
 
 »>y 
 
 notary pul)lic for tiie I'ro 
 
 was on th 
 
 vince of 
 
 acceptance, as appears i)y bis note tiiereof marked on the said 1 
 
 "writ- 
 day of 
 noted for mm 
 
 >ill. 
 
 275 
 
 tury I'lihfir. 
 
276 THE HILLS or KXL'FIANGE ACT. 
 
 FOHM K. 
 rliOTEST KOR NON-I'AYMKNT OK A NoTK I'AYAV.I.K (JKNEKAbLY. 
 
 f'l'jii/ oj Xdii (iiiil liiilomniioil't) 
 
 On this (lay of , in tiie ytar IS , I A. 11., notary pulilio for 
 
 t\w I'roN in(3c of , dweHing at , in tiu; I'rovincc of , at 
 
 the ri'(|ni;Ht of , ilid cxliiiiit tiw original ])roniii<.-ory note, wiu'rcof 
 
 u true copy is above written, unto, the iironiisoi-, jiersonaliy {or, 
 
 at his resiflcncc, (.fiiee or ii.snal place of ImsinesH), in , and 
 
 speaking to himself (oc his wife, his elerk, nr his servant, fee), did 
 
 demand pa\ nieiit tlicreof ; nnto Mliicli demand , answered " 
 ' ' I shi' I 
 
 Wherefore, f, the said notary, .-it the request aforesaid, have jirotestcd, 
 and liy these presents do jirotc.st against thi' ])roniis(ir and iiidorseis of 
 the said noti', and all other parties thirttn or theitin idiicernid for .'dl 
 costs, damages and interest, presi'nt and to ( ume, tor want of paynjcnt 
 of the said note. 
 
 All of whicli I attest by my signature, 
 
 (I'rotested in duplicate.) 
 
 A. 15., 
 
 Nolavji Piililii 
 
 Form K. 
 
 n;oTi:si' roi: MiN-rAVMKNT oi a Nnrr. rAVAiii.i: at a statkh i'I.ac k. 
 
 [C< ji-i of y nil mill Jiuliirsi III! iii^ ) 
 
 On this day , in the year IS , I. A. I!, imtary jinlilic for 
 
 tlie Province of . .Iwelling at . , in tlie Province of , 
 
 at the i-e(|Uest of , did exhibit tlie original jiromissory note, where- 
 
 of a true copy is al)ove wi-itten, \into the promisor, at .being 
 
 the st.it( d )il ace will' re the said note is payable, and there, speaking to 
 iliil demand payment of tlu' said note, unto whi<'h denianil he 
 answered ; " 
 
 W herefoie, 1, the sanl notary, at the re(nust aforesaid, have protested, 
 and by these presents do protest again.^t the promi«or and indor:.crs of the 
 .said note, ami .all otlier parties then to or theri'iti coneerneil, for all costs, 
 damages, antl intiiest, present and to come, for want of |)ayment of the 
 .said note. 
 
 .\I1 which I atti'st by my signatui'e. 
 
 (I'rotested in duplicate.) 
 
 A. 15., 
 
 Niilarij I'lihlic. 
 
KRALIiY. 
 
 ,iiy imblii' for 
 of , at 
 
 note, wiuTcof 
 loraoiialiy (or, 
 , and 
 .lit, Siv.), ilid 
 
 ijied " 
 
 AC i)rotostcd, 
 
 iiidorsiTs of 
 
 cuniiil for all 
 
 ; of payment 
 
 ai-i/ PuhUc. 
 
 \Ti;i> l'I-A( K. 
 
 iry i)iil)lic for 
 lice of , 
 
 iidtc, wlit'rt;- 
 , licing 
 , siicakiiiu to 
 I dciiumd lu! 
 
 ,vo j)idtest(>(l, 
 
 ;loiM'rH of the 
 
 for all costs, 
 
 ynieiit of the 
 
 arij /'iililic. 
 
 THE BILLS OF EXCUANGE ACT. 277 
 
 KOKM (!. 
 
 NOTARIAL NOTICE OP A NOTIN.i, OK OK A PROTKST FOR NOS-ACCEITANCE, OK 
 OK A I'KOTEST KOK NON-PAYMENT OF A BILL. 
 
 {Place and dale oj Notiiu/ or of l^rotcst ) 
 Jst. . • . / 
 
 To l\q.. (the drawer.) 
 at 
 
 Sir, 
 
 Your bill of exchange for S , datc.1 at the , upon 
 
 E. F., in favor of C. IX, payable days after [ '''«''*• ) was this day, 
 
 y date » ' 
 
 at the re(niest of didy|""'^"' \by me for /nou-aeceptanee. ^ 
 
 -.Iprotestuil i I lion -payment, i 
 
 A. u., 
 
 Notary FMk. 
 
 (Place ami date of Notiitii or of Pro'eit.) 
 '2nd. 
 
 To C. D. (iiidorser), 
 (or F. (,.) 
 at 
 
 Sir, 
 
 Mr. P. Q.'.s bill of exchange for* , dated at the 
 
 upon E. F., in your favor (or in favor of C. D.,) payable days after 
 
 Idfte ' / '^"'^ ^'^ ^"" ^°f^o''^'^''' w-'*'^ tl'i^ 'l-'iy. 'it the re.iuest of duly 
 
 / noted 
 ^ protested 
 
 /noted j j^y ^^^^ ^^^^ I non-acceptance. , 
 •' Vnon-payineiit. / 
 
 .\. B., 
 
 Notary Ptiblir. 
 
 FouM H. 
 
 To 
 
 -NOTARIAL NOTICE OK PRorKST KOK NUMVUMKNr CK A NOTE. 
 
 (Place and ihilt u/' Priil> >•/. ) 
 
 at 
 
 Sir, 
 
 Mr. F. Q.'s promissory note for .? 
 days 
 
 , dated at , the 
 
 payable ] months i after .late to ( fou j ,^^ ,^^j^,._ ^^^^^^ ■,^^^,.^^^ , 
 
 you, was this day, at the re.juest of , duly protested by me for non- 
 
 payment. 
 
 A. B., 
 
 Notary Public. 
 
\if. 
 
 278 
 
 THE HILLS OF EXCHANGE ACT. 
 
 ■If 
 
 Form I. 
 
 NOTARIAL SERVICE OF NOTICK OK A PKOTEST FOR NON-AC'CEl'TANCE OR NON- 
 rAYMENT OF A lilLI., OK OF NON-PAYMENT OF A NOTE (fo be HuhjotneU to 
 
 the Prolesl.) 
 
 And aftorwanls, T, the aforesaid protesting notary public, did serve 
 
 due notice, in the form prescrihed bj hiw, of the forej^oingprotcHt for 
 
 nion-acceptiiucel , ,, i bill 1 ., , a. i. ■, fi^. QA .i 
 
 ' I of the ' > thereby protented upon { * > the 
 
 nion-payuient ' ' note-' IC. 1).,J 
 
 ! ' > personally, on the day of (oc, at his reMidence, office, 
 
 ■ mdorsers ' 
 
 or usual place of business) in , on the day of ; (or, by 
 
 depositing such notice, directed to the said ! • »•' j ^t; , in Her 
 
 I C. D., ' 
 
 Majesty's post office in on the day of , and prepaying 
 
 the postage thereon). 
 
 In testimony wliereof, I have, on the last mentioned ilay and year, at 
 aforesaid, signed these presents. 
 
 A. U. 
 
 Xvtary Publie. 
 
 Form J. 
 
 PROTEST HY A JTSTICE OK THE PEACE (WIIKRE TIIEKE tS NO NOTARY) FOR 
 NON-ACCEPTANCE OK A P.11,1., OK NON-PAV.MENT OK A UII.L OK NOTE. 
 
 (Copi/ 0/ Hill (ir Note (itul lmlor»tvie.nl.i.) 
 
 On this day of . in the year 18 ,1, N. (). . one of Her 
 
 Majesty's justices of the peace for the district (or county, &e.), of , 
 
 in the Province of , (hvelliiig at (or near) the village of , in the 
 
 said district, there being no practising notary public at or near the said 
 village (or any other hijal eausi), did, at the reijuest of , and in the 
 
 presence of , well known unto me, exhibit the original 
 
 (• drawer \ 
 I Whereof a true copy is al)ove written unto P. Q., tiie- acceptor 
 
 '^ n'»*^^" ' 1 promisor i 
 
 thereof, personally (or at his residence, office, or usual place of business) 
 in , and speaking to himself (his wife, his clerk, or his servant, &c. ), 
 
 did demand -[ '^^^'^^ptance | t,,„eof, unto which dcman.l | ''^^ ] 
 I payment ' "^ she ' 
 
 answered:^" 
 
 Wherefore, I, the said justice of the peace, at the reiiuest afore 
 said, have protested, and by these presents do protest against tht; 
 
 (drawer and iudorsers \ . 
 
 promisor and indorseis [ of the said | ^' | and all othei 
 
 acceptor, drawer and indorsors •' 
 
INCE OR NON- 
 
 e subjoined to 
 
 ic, did serve 
 L{- protest for 
 
 the 
 
 P. Q-.\ 
 C. ]).,/ 
 
 deuce, otfice, 
 
 ; (or, by 
 , in Her 
 
 ud prepaying 
 and year, at 
 
 try Publie. 
 
 NOTARY) FOR 
 
 , OK NOTE. 
 
 one of Her 
 ;.), of 
 
 , in the 
 eai' the said 
 
 , and in the 
 tile original 
 i drawer \ 
 ■ acceptor ■ 
 I promisor J 
 
 of business) 
 ervant,&c. ), 
 
 .d I •'« 1 
 i she ' 
 
 iijuest afore- 
 against the 
 
 il all othei' 
 
 THE BILLS OF EXCHANGE ACT. 
 
 parties thereto and therein concerned, for all exchange, re-exchange, and 
 all costs, damages and interest, present and to come, for want of 
 
 \ acce[)tance \ ... . , i hjH i 
 
 1 • ^ ! of tiie said 
 
 ' payment ' I „ote / 
 
 All which is by these presents attested by the signature of the said 
 (thr wifinss) and by my hand and seal. 
 
 (Protested in duplicate.) 
 
 (Siijnahirr of the ivifne.'t.i.) 
 (Sli/iiatnre and stal vf thr J, P. ) 
 
 SECOND SCHEDULK. 
 
 KNACTMKNTS REl'KAI.ED. 
 
 Province and Chapter. 
 
 'i'itlc of Act and extent of rej.cal. 
 
 Dominion of Canada : 
 «'hap. 12,S, Revised Statutes . . An Actresperting ];ill.s„f Exchange and 
 
 Province of Quebec: 
 Civil Code of Lowtr Canada. 
 
 Nova Scfitia . 
 Itevised Statues, third .series 
 chap. 82 
 
 New Brunswick : 
 
 Revised Statntes, chap. 1 1(5 
 
 30 Vic, 1807, chafi. WA . 
 
 Promissoiy Notes— The whole Act. 
 Articles 2279 to|-},ir)4, both inclusive ['J. 
 
 " Of Hills of Exchange and Promi-ssory 
 Notes." Section 2. The other sections 
 of this chapter liave been heretofore 
 lepealed. 
 
 "Of P.ills, Notes and Choses in .Action." 
 Section 2. The other sections of this 
 chap, have been heretofore repealed. 
 
 An Act to anieiid elmp. j IC of the Re- 
 vi.sed Statutes, -'((f Hills. Ndtes and 
 Cho.scs in .Action ;"' also Act 12 Vic, 
 chap. ;«), relating thereto. Section 1 '. 
 
 i*Exceptin.sofaras such articles, or any of tlnni, rel.ite to evidc 
 in regard to Bills of Exeha ige, Che.iues aii.l Promiss.irv Notes. 1 
 
 nee 
 
 27l> 
 
mmm 
 
 I ? . r 
 
 INDEX. 
 
 AcCF.I'TANtr,, 
 
 iMc.'lliilii^ uf, !.'(). (if). 
 
 reiiuisites of, Ch}-~2, I.";'). 
 
 must 1)0 in writing' on tlic hill, (ifi. 
 
 nuTu sij,'n;itiui.' wiillicicnt, (ili. 
 
 of bill in l.lank, 70, 71. 
 
 of overdue or tlishoi:orecl hill, 71, 72. 
 
 of ili.slionored hill payable after «iglit, 71, 7'J. 
 
 general aceeptaiiee, 7.'?, KiO, 190. 
 
 <jualitie(l aeeeptance, 73, l.')4, IT)."), 190. 
 
 conditional, "J'.i, ITi. 
 
 partial, 7.'{, 7">. 
 
 lo.al, 7.1 
 
 ftH to tinu', 7,'{. 
 
 hy some of the drawees, ~X 
 to pay at a specified place, T.i, 75, 15(5, 160, 190. 
 incomplete and revocable till delivery, 80, 81. 
 waiver of '214. 
 
 acceptor must not alter words, 15."). 
 notice of acceptance, 80, 82. 
 
 holder may refuse to take tjualitied acceptance, 154, 1.55. 
 duty of hohler takini,' ([ualitied acceptance, 154, 155. 
 presentment for, 14(5-152. 
 contract of aceej)tor, Xi, 19.3-195. 
 
 provi.sions as to acceptance do not apply to notes, 193, 22.'i. 
 is admi.s.sion of elVects, .'53, <)9, 192. 
 Court may compel, IS.S, 192, '225. 
 
 AccKl'TANCK Sii/irii I'roli'st, 
 
 when a bill may be accepted .•'itpru protrsi, 219, 220. 
 
 for whose honor a bill may he so acce{)ted, 219, 2'JO. 
 
 maturity of bill jtayable after sight so accepted, 220, 221. 
 
 contract of acceptor mi/ira jiro/vxl, 220, 221. 
 
 presentment for payment to acceptor supra protest, '221, 222. 
 
 protest necessary on dishonor hy such acceptor, 221. 
 
 suspends holder's right of action, 154. 
 
 Accommodation IJill, 
 what it is, 1 18. 
 what is not, 1 18. 
 
INDKX. 
 
 AccoMMor)ATioN r,ii.i,_( 'uuH,m,,l. 
 
 *" "■'""" •'" •' """'"Intmn luirty is ]ial,l,., no, 115. Ihvj'M 
 
 rights ..f smvtifs .m, to contribution, ] 1!). 
 parties to, 7!». 11!», 127. 
 
 A<v();u) ANti Satisfaction, 
 
 payment of debt by snialler amount, iW, 21. "i 
 Action, 
 
 includes counterclaim and .setoff, 27. 
 
 who may sue on bill or note, 12(1. 
 
 defences and costs in, 8*i, |2ti, IKO, 2(10. 
 
 ilamage.s recoverable. 2(»0-2U2. 
 
 against bank for -lishonnring customer's che.,uo, 24(», 241. 
 improperly protesting accepted bill, I8(i. 
 
 on lost bill or note, 22">. 
 
 Al>PRK.S,S, 
 
 for sending notice of dishonor, 1 72. 
 A(;£\T, 
 
 who may i)e, 105. 
 
 duties of, 105. 
 
 signature " per proc." on bill, I(l2-I(i4, 2f;(;. 
 
 i.npiied authority to draw, acept, .,r i'ndorse bills. I()4.10,s 
 
 lialulity of agent acting without authority, (17, 102, 1 10 
 
 mode of avoiding per.s(,nal liability, IM4. "^ 
 
 signing in a repres(tntative capacity, 104- loa 
 
 unauthorized signature of , convey.sno title, <)<), 102. 
 
 ratification of umiuthorized signatur.-. 105.' 
 
 whether signature is that of prineii.aj or agent, 104, 10!I. 
 
 AORKKMKNT, 
 
 instruments being agreements and not notes, .•{.•J.41, 257 
 parol agreement cannot vary t)ill or note, 74. 
 to waive or renounce holder's riglits. 21;;, 214. 
 
 Alien E.ne.mv, 
 
 bill or note by, SS. 
 
 Allonge, 
 
 meaning of, 1.S4, l.T). 
 
 Alteration of Bill oh Notk, 
 
 when it vitiates instrument, 07-1O2, 2i;^-2lS, 227 "AS ■>-,- 
 acceptor not to alter, 155. ' ■'"'-'■ 
 
 material alterations, 21G-21S, 227. 
 alteration of figures in margin of nistrument, 5(i, 71. 
 cheque altered as to amount payable, l(»2, 217. 
 
 nature of the negligence on, 217 •»'>7 ••(J4 
 30 " " 
 
 li.Sl 
 
w 
 
 I:: 
 
 
 INDEX. 
 
 iill 
 
 Ar.TKKATioN »)K ]iii.i, oi! 'SoTK—Coutiuued. 
 iiioaiiiii^' of " jipparciit," 'J Hi. 
 wliero alteration not appari-iit, 216, 249. 
 iniiitaturial alturations, '218. 
 
 to oorrt'ct a mistake or carry out intention, .KJ, 21(). "21 S, 2.").'{. 
 liability of transferor of altered in.struinent, 217. 
 <»f crossed clieiiue, 24r>, 248. 
 
 Altkknativk, 
 
 maker of note in the, 2r)(J 'J.^S. 
 
 payee in the, 4(i 4S. 
 
 Iiill cannot be addres-sed to drawees in the, 4t). 
 
 AtJTIIoKITV, 
 
 meaning of term, SS, 11)4. 
 
 to KU up blanks in a bill, 7(i-S(). 
 
 of agent, lO.S, 10"). 
 
 Av\r,. 127, 198-2O0. 
 
 IUnk, 
 
 meaning of, 27. 
 
 lelation between bank and customer, H, 10, 27, 2S, 2:57 251. 
 should know its customer'.s signature, 2.'}S. 
 action against, for dishonoring cu.stomer's che(iues, 24(1, 241. 
 for improperly protesting accepted bill, ISO. 
 paying demand bill or clKMpie on forged indorsement, !)7, 101, 239. 
 lien of, 255. 
 
 customers should domicile their bills, 157. 
 paying customer's deposit to aheritf, 239. 
 liability of, on " marking' chc(jues, 23S. 
 duties of, as to crossed chtKpies. 244-251. 
 not liable to true owner of crossed clieipie. 250. 
 
 IUnk NoiKS, 
 
 are promissory notes, 2.54. 
 
 what transferor warrants, 202, 203, 210, 252. 
 
 presentment of, 252. 
 
 notice of dishonor, 254. 
 
 lost or stolen notes, 83, 252. 
 
 matei-ial alteration avoids, 21(>, 217. 
 
 rule as to laches in giving notice of non-payment, ISO. 
 
 are not overdue notes, 252. 
 
 lUNKRUl'lVy, 
 
 presentment of bill lor acceptance on, 150, 1.52. 
 
 notice of dishonor on, 100. 
 
 holder may protest bill for better security before it is due, 184, 1S8. 
 
INDEX. 
 
 2S3 
 
 Beakkk, 
 
 meaning of, 28, ;').'{. 
 
 l>ili payable to, is negotiable, 51, J.31, '2ry\ , •_'■.,-). 
 
 what bills or notes are payable to, 48, 'J,")l. 
 
 bill payable to, how nef,'otiablL', LSI, 1.S2, 'J02. 
 
 where payee a tictitioiis or noii-exiating person, bill is payai)le to, 48. 
 
 indorsenient "without recourse" makes bill payable to. ("l.l 
 
 Bkitkr Skcckity, 
 
 protest for, when, 1S4, 188. 
 
 Bli.r. OK E.\(U.\N(JK, 
 
 history of, li, 2'>, 32. 
 
 meaning of " bill,"' 28, .S1.4I. 
 
 what is not, 3;?-4(), 4(i, 'u. 
 
 privileges of, 1, <). 102. 
 
 requisites of, ."{l^l. 
 
 must be an unconditional order, 31, .3.3, .8,3. 
 
 must be signed by drawer, 31, 34. 
 
 must contain the essentials of a contract, .34, 255. 
 
 to whom payable, 31, .38, 48. 
 
 must be addressed to drawee, 31, 34. 
 
 addressed to one, and accepted by another, (IS, 70, 103, 
 
 drawer and drawee the same person, 43, 44 2.")1. 
 
 drawee a tictitious person, 44, 48, 50, 98, I.-^o, l(i4, 107, 178, 179, |,S2. 
 
 not having cai)acity to contract, 44, 45, 150. 178, 179, 183. 
 payee a fictitious person, 48, 50, 98, 195. 
 payable in money only, 31, .35, 38, 60, 69, 131. 
 time of payment, 31, 37. 
 sum payable must be certain, 31, ,35, 53. 
 
 must not 1)0 out of a particular fund, .32, 39. 
 date not es.sential, 32, 40, 59. 
 ante-dating and postdatinj,', 59. 
 consideration or value presumed, 2, .32, 40. 
 not an assignment of funds, 192. 
 place of drawing or payment, 32, 41, 227-237. 
 c-ipacity and authority of contracting parties to, 87-92. 
 every contract on, revocable until delivery, SO. 
 acceptance revocable until notified, 80, 82. 
 contract of drawer or indorser, 131, 1.34, 195-198. 
 of acceptor, 193195. 
 cannot be varied by parol evidence, 33. 
 no person liable on, unless his name signed to it, 92. 
 liability of stranger signing, (54, 68, 93, 106. 
 presentment for acceptance, j 146- 163. 
 (pialified acceptance, 73, 75, 154. 
 dishonor by non-acceptance, 15,3. 
 
2«4 
 
 INDKX. 
 
 I 
 
 Hill of Exciianok— r'o/)/i//K((/. 
 in<lf>r8(;n)eiit of, 1 HI 140. 
 
 valid (leliveiy i)r('Huinc(l, in lianda of holder in due coui'se, .si, SI. 
 negotiiition of, IHI-llU, 140. 
 when not ncgotialilc, .'}.'{ 40, 4(i, 51, HT. 
 presentment for piiynient, 15")- !(>;{. 
 presentment before maturity, 158 
 title indefeas.'vhle, 1. 
 accidental detention of, I.S5, 1S!1. 
 overdue or dishonored liill or note, 140, 14114.3. 
 meaHure of damages on, 2()0-iJ02. 
 relea.se of, when it can he hy jjaroi, '21.3. 
 discharge of, by payment, 'J0.3-'21-. 
 material alteration of, !t7-10'-', l.^l, 'il5-21S, 227. 
 reissuing bill, 14:^, 204, 207, 20S. 
 acceptance supra protest, 219-222. 
 payment snprn pnitrst, 222-224, 
 inchoate instrument, 7(i-80. 
 forgery of, !)7-102, 21(5. 
 when treated as a note, 44. 
 inl.aud and foreign, 41 ,-43, 20O. 
 in sets, 22(i, 227. 
 lost bill. 224. 
 conflict of laws, 227-2.37. 
 nie.ining of " to retire," 207. 
 (lifTerence between bills and chetjues, 2,37. 
 
 Blank iNsrurMKNT, 
 
 signature on blank paper, 70. 
 
 filling in drawer'.s name after acceptor's death, 71. 
 
 lioNA KiDK HoLUKK KOK Value, 110, 118, 121. Sti' Holder ill due Course, 
 
 BUSINE.SS Day.s, 
 
 what are not, 61. 
 
 in computing time, when nonbusiness days are excluded, ()2-(!4,7i), 267. 
 
 bill or note falling due on non-business <lay, 61. Sm Days of H race. 
 
 Canada, Law of, 2.34. 
 
 Cancellation, 
 
 of acceptance, 81. 
 when bill discharged by, 205, 214. 
 nuist be apparent, 214, 215. 
 unintentional, 214. 
 
 Capacity to Contkact, 
 
 meaning of the term, 88, 194. 
 
 capacity to incur liability on bill, 44, 48, 50, 88, 98, 164, 167, 178, 
 182, 194. 
 
IN'DKX. 
 
 28.5 
 
 •':!!». 
 
 CAI'ACITV 1(1 i'iiSl\:.\( T- -Cullliiilii if. 
 
 niiuiitMl women, HS. 
 
 infiint or |)oihi)Ii ii('it ro)ni>(>s w ii/i*, ST, S8. 
 
 alii.'ii enemy, HS. 
 
 drunken person, ST. 
 
 coriionitidiia, S'», 'J(i(>. .SV, ror/xirrition.s mi</ Ci,„i/>-ii,ii s. 
 
 ClIEQlK, 
 
 origin of, !). 
 
 (letlnitioii of, -J-JT'-'H!*. 
 
 how ti-ansfeniMe, !'{|. 
 
 not entitleil to ilnys of f^race, 'J.'tS. 
 
 dirt'ilenecs Ixtweiii clitinics and liills, L'.ST'-'.'l!). 
 
 not iin a]i|)ni[iiiation of nicpiny in haiuLs ol Ijaiilsci-, I 
 
 presentment of ilieiim^ for payment. I.Vt. •_';{!l'_'(i'. 
 
 when jire-sentment or iiutiic of dishonor is t \(ii ( d, Itil |(;.s. 
 
 nnist l(e preHeuted within Kaniving h(Jnl■^, l.')l, l.'iS, |(i(», -.^o. 
 
 when want of due presentment dis(liarj4es drauer, •_';{• I- l'4-.'. 
 
 extent to whieli lie la .H.^seliarged, :.'4(», IMI. 
 
 duty of hank iMtsinting checjue for eustonier, '.MO. 
 
 ohligation of i)anker to drawei', '.MO, •_'4'J, '>A:i. 
 
 forged che(iues, !»T, 101, 'J.'W. S< ,■ /'unji ii/. 
 
 altered ehecpieH, lO'J, -Jl". S,i- A //< mliun of JlUI or X<>t' . 
 
 che(iue for illegal eoiisideration, •J,'!!). 
 
 post-dated ehe(iues, 'i.'i.S, •_'.■{!». 
 
 payment hy eheipie, I'O."). 
 
 marking clie(|ues, 'J;IS. 
 
 revoeation of authority of hank to pay, *24"_'-'J41. 
 
 hy sto|i|)ing [laynient of eliK|ne, LM'i, 24'.). 
 
 hy notiee of deatli of dr.iwer, 'JlL', 'Jh'!. 
 
 crossed el 
 
 .'lieijucs 
 
 .'44 -'r. 
 
 course of ligislation as to, ■J44. 
 
 general and special eiossings, •_'14-"247. 
 
 who may eross a elieqiir, 'JIT. 
 
 crossing a material jiart oi eheiiue, :il,S. 
 
 where tlie crossing is not apparent, '_'4s, '24'.>. 
 
 when hanker and ilrawi i [irointtd, 24S, 2 111, •J.'d. 
 
 drawer or true owmr may recover moin'y wrongly reeei\ed, '2'A>. 
 
 etl'ect of crossing "not negotiahlc," 244. '247, 2."i0. 
 
 collecting haidicr, reeiiving payment, protected, 2."iO. 
 
 how cheque niay he uncrossed, 247. 
 
 cajiacity of cor))orations to draw che((ues, '.i2, 
 
 dili'erence hctueen hill m' note and chequ; . 2.;7. -'.'>',). 
 
 ClIURCU, 
 
 note given hy trustees of a, 109. 
 
it; 
 
 2SG 
 
 INDKX. 
 
 
 COLLATERAI, SECrRITY, 
 
 iijjreenioiit for in bill or note, 3". 
 
 Hurcty will) piij'H Itill or note Mititltid to securities, 208, 209. 
 
 bill tiiken as, niust ho iiresentud, 15H. 
 
 effoct of taking', 211. 
 
 CoMPANins. Sie. Corporation)-. 
 
 Computation of Timk ok Payment, 62(54, 79. 
 
 Condition, 
 
 inHtniinent payable on a cnmlition not a l)in or note, .'{2. X\, ,30, 40. 
 drawer or intlor-ser, negativing or limiting iiis liability. (».">. 
 
 waiving holder's iliities aw regards himself, 05, 
 conilitional in<lorsenient, Oo, 1.%. .V<< Indorsimi iil. 
 may be disregarded, 1,'W. 
 conditional ai'ceptance, 73, 7*). 
 
 CoNFM'T OK Laws, 
 
 rules as to, 227-2S7. 
 law of ( 'anada, 2.S4. 
 
 CONSIDKUATION, 
 
 detinitioii of, llO, 112. 
 what constitutes, 110-117. 
 
 pre-existing debt or liability, a good consid(;ration, 1 10. I H. 
 lien on a bill is a good consideration, 1 10, 1 10. 
 pn'Siuned, 2,40, 112, 127. 
 
 parol evidence admissible to show want of, 00, 111, ll.S. 
 as to partial failure of, HIl, 111. 
 jis to illegality of, 80, 111, 121, I2.S. 
 want of, not ;in cipiity attaching to bill, ll.S. 
 
 accommodation ])arty liable to Ji iiolder for value on, 110, 11"), 118. 
 legal or e(|nitab]e duty, sullicient, 114. 
 contrary to pul)lic jjolicy, 121, 12;i-12."). 
 
 componnding a felony oi' misdemeanor, 12.'M2.'. 
 
 note given on threat of prosecution, 12;^. 
 in case of l)ill or note notice of illegality necessary, 121, 122, 12.">. 
 illegal consideration avoids bill. 121, 12.1, 128. 
 usurious consideration, 120, 12!). 
 where transfer is by delivery, 202. 
 
 CoNTINOKNCV, 
 
 instrument payable on, .39, 40, 57. 
 
 CONTItACT ON ISlLL OR NoTE, 
 
 incomplete until delivery, 80, 252, 255. 
 
 joint or several, 250. 
 
 of parties to, 103-195, 195-198, 202. 
 
 I ;i 
 
i\i)i;x. 
 
 l>n: 
 
 CONTRIIII'TION, 
 
 bctweoa oo-Hureties, 'JOS •Jl'J, 
 
 Copy, 
 
 indorsement oil, l.'W, 135. 
 protest on, 185. 
 
 ('OKI'OKAIKiNS AND CoMTAXIKS, 
 
 description of in l)ill or nolo, H!>. 
 
 corjioration .iuinot iis a rule eontraut \>y lull or note, (i7. H7 id MC, 
 -'t)7. 
 
 Hpecial or implied authority to draw, ;icrept. or indorse l.ill« s7gi 
 
 '2(i(>. 
 how a hill or note may l.e nuide hy a corpi>ration, G7, 89, '2Vt'. 
 hill or note payahle to olliccr, 51. 
 otHeers siJ;^in^' hills, (17, lOJ. Si> lUnrluis. 
 usury law applieahle to certain companies, i'2!). 
 Costs, 
 
 of plaintiff hringing action without demand, HtO, l!ll, L'tHt, ■Jtll. 
 on lost hill without offering indemnity, 'Ji'."!, 
 
 C'KOSSED CiiEQiE, 244-'J.')l. iSi. Ch<'</iii:. 
 
 Damaoes, 
 
 mea.sure of, '2(K»-20"2. 
 interest may he allowed as, 200, 201. 
 on delay in presenting cheiiue to hank. 240, 241. 
 Date, 
 
 not essential to validity of hill or note, .TJ, 40, .VJ. 
 if no date, holder may insert true date, .">!», 7S. 
 
 insertion of wrong date, .">r». 
 ante-dating or post-dating hill or cluMjue, (JO, 2;]S. 2.'{9. 
 hill dated on Sunday not invalid, (Jl!. 
 alteration of, in hill or note, 7,'), 217. 
 
 l>AYs OK Grace, 
 
 meaning of, GO, 02. 
 
 on what instruments allowed, 00. 
 
 on note jiayahle hy iii^talmtnts. .')4. 
 
 hill or note due on last day of gr ice, (il, (j;{. 
 
 not allowed on sight or demand Inlls, or chetjue.s, ,')7, 2;{,s. 
 Death, 
 
 filling in drawer's name after acceptor's death, 71. 
 
 presentment for acceptance where drawee is dead, l.")0, l.")l. 
 
 for payment where drawee or acceptor is dead, 157, I02. 
 
 notice of dishonor where drawer or indorser is .lead, 171, 174.' 
 
 of drawer of che.jue, 242, 24;{. 
 
 delivery of hill after indorser's death, 83. 
 
'M 
 
 m 
 
 2»H 
 
 IMMX. 
 
 H'2. 
 ,1.SI, S». 
 
 Dkiit, 
 
 titilt'CHtdciit (Ifl)t in (I coiiHidt'iMtiiiii. I ID, I III. 
 
 |)KKK(Ts (IK 'I'liii:, I '2 1 I '.'(». Ilt>, U.'i. Iii:t .SV, Onnhf mn «,■ K,>h\ 
 
 IJkki.nck, 
 
 nicaiiiii;; (if, 'M. 
 
 what \<^ not, till. it;«, ii.'K. u:.. 
 
 chief ({niundH of, S(i. 
 
 Dkmvkkv, 
 
 incaiiiiij,' <il. -!•. 
 
 (.'(iiitriu't nil ;i liill (ir iiotf rcvdc ililc till, 71. M) .Sti, 'J,"i,'. 
 
 in canf (if ;u'ot'|it;iiic('. iwiticc without delivery Hiillicii'iit, MO, 
 
 if hill ill h.'iiiiU (if Imlder in diii- Cdtii'Me, valid delivery |ii'i .siiiiu 
 
 ne((ss:iiy to [lelfeet lie^iitiiltidll hy ilid(irMeiiie|it. l!l|. \'X\. 
 
 eoiiditiiillHl. or fur il H|ieei.ll |illl'|iiiNe, Hi, .H.'t, Sti. 
 
 hill )i:iyiihk' to heiirer iie;,'(itiat(Ml hy, l.'il, l.'t'J. 
 
 ri>;lit.-< of Inmsl'eree hy delivery <if such hill, l.'il, l.'t.'i. 
 
 Iiiiiiisfeidi hy delivery not liahle on iiistniineiit. 'JO'J. 'H)'.\. 
 
 C'ontr.'iet of siieh triiiixferor, ."i.'l, •_'(•.'{. 
 
 traii.sfer hy deliviiy j,'ives ini e(|iiit;ihle title, i;!!!, 
 
 DkmaM), Uii.l oii NdrK 1*.\\.\ki,i: on, 
 w hat is. i'lC, •.';{:, •-».")!». 
 not entitled to days of j,'i'ace. .">7. -'i^. 
 hill accepted or indor.sed when (ivenliie, .")() 
 in-eseiitiiieiit for ))ayinent, I'lli, I.V.t. -JUS, •.'."!!»••_' I'J. -1:^) •.'(;•.'. 
 when hill ciinsiderecl overdue, I U, I4;{. 
 when iiiitf I'liiiHideied overdue, "J.'iS, 'J,"i!l. 
 1 hei|ue i.H a hill payahle on deiiiund. 'I'.V, . •_'.">!). 
 
 l)ii.i(ii;\( i:, Iti \s<i\Ar,i.i:. I »7, I 1>. !.■(). l.V.i. Hi.!. |H», 17^. •->(•:;. 
 
 DlKMTOliS, 
 
 when ]ierson:dly lialile on hills, ♦)7, Sd'.fl. 101 HiS. 
 
 Discii Midi; OK Uii.i., 
 
 hy |iaynieiit, "JO.'i '21."). 
 
 payment hefore maturity. 111. 'JO(i. 
 
 liy marriai,'e ot maker and payee, "JO.". 
 
 hy jieceiitor hi'ing the holder at matiiiity. '-'l'.', 'JKl. 
 
 l)y renunciiition at or after maturity. '-M.'!. 
 
 mii.'it l)e express in writing. '1\'<\. 
 hy ^^■(lKU•llati(lll, '_'I4. Siv Caini H'l'iim . 
 hy .■ilteration, '-M.'j-'JIS. Sie Alh rali<ni. 
 (liseharj^e of hill di.iwn in a set. "J'Jli, 'J'27. 
 
 Discor.NT OK iliii., no. I Hi, •-'(•s, •_>!.-). 
 
INDKX. 
 
 2.S!> 
 
 S4. 
 
 DrsrRKFANrY, 
 
 l)ctwwii ainouiit in wdnla ami (igunm, 5.1, fl.'t, nO, 71. 
 
 Dishonor, 
 
 muaiiing of, 153. 
 
 Iiy iioii iiLct'ptiiiuT, ir)3, IM. 
 
 by lion jiiiyiniMit, lOH. 
 
 notice of, KlH-lTO. 
 
 knowiu.ljje of, not sudiciunt without notice, IfiO, 173. 
 DiHiioNoKKK hii.r., 
 
 iiolder i.i line lotiise tftkiu),', I'il. 
 
 holiler witii notice, tuking, 1-1014.3. 
 
 DiVIDKNiJ Wahkant, 271. 
 
 Dkawkk, 
 
 nieaniii^r of, ,TJ, ^5. 
 
 Itill must Im; addressed to, 34, .!.'>. 
 
 bill niiiy be drawn j)ayai)ie to, V.i, 44. 
 
 where drawer and drawee are the annie person, 44, 'J.'n. 
 
 a li.titious person, 44 4(i, 08, 1.10, 1(14, ICT, ITS, IT!), IS'.', 183. 
 
 a per*. M not having lapacity to contract, 44-40, 87, lyO, ITS, 17i», 183. 
 must l)e named with reaaon.dile certainty, 46-47, 
 when wongly designated, (17. 
 
 IJRAWKli, 
 
 meaning of, .T2, 34, 44. 
 
 bill ni.iy be drawn p.ayabh; to, 43, 44, 193. 
 
 where drawer and drawee are the same porson, 44, 254. 
 
 a lietitious pcr.son, 44, i)8. 
 signature of, necessary, 34, '.12. 
 indor,s(r is in the nature of a new, 1,32, 1.37, 204. 
 as to Idling in drawer's name in a blank acceptiince, 7(]-80. 
 contract of, 195, 19(». 
 
 may insert .stiiiidation negativing or linuting liis liability, G.'.. 
 waiving holder's duties as reg.inls himself, (if., 00. 
 may be eom[ielled to give duplicate bill, 22."). 
 of checjue when discharged by delay in preaeutnient, 239-242. 
 Drftnkaim), 
 
 bill or note by, 87. 
 
 DURKS.S, 
 
 is a defect of title, 121. 
 
 on proof of, holder must shew coisideration, 12(1. 
 Kffkct.s. Wanv of, 
 
 in drawee's hands, excuses presentment for payment as against the 
 
 drawer, 1(14, Ui7. 
 excuses notice of dishonor, 178, 183. 
 37 
 
•21)0 
 
 INDEX. 
 
 Kfkects, Want of — Conlinued. 
 exciiaes protest, 185. 
 no excuse where drawer has reasonable belief that the bill would not 
 
 be paid, 1()4, IGti. 
 where effects are on their way to drawee at maturity of bill, 179. 
 
 Equitiks ok the Insikument. See Overdue and Dishonored Bills and 
 
 Xotes. 
 
 ijSTOPPEL, 
 
 as to inclioate instruments, 70-72, 76-79. 
 
 by drawing, I!)."), 196. 
 
 by acceplanco, l'J3. 
 
 by delivery, Mi. 
 
 by indorsing, 196, 108. 
 
 by maiiuig a note, 2(i'2. 
 
 in cases of forgery, 99-101, 194. 
 
 Evidence, 
 
 presunii>tive, 77, 84, 86, 128. 
 conclu-sive, 81, 8"), 193, 195, 196, 198. 
 not admissible to vary bill or note, 33. 
 
 ExCHANfSK, 
 
 foreign bill payable in Canada, 200, 201. 
 
 bill payable ivcuording to an indicated rate of exchange, 53, 55. 
 
 E.xecutoks, 
 
 parties to bills, 67, 83, 101, 108, 136. 
 
 Fees, 
 
 tariff of notarial, 270. 
 
 Fictitious Person, 
 
 payee, 48, 50, 98, 10." 
 
 drawee, 44, 45, 98, 150, 164, 167, 178, 179, 182, 183, 195. 
 
 drawer, 44, 194. 
 
 Figures and Wokus, 
 
 iHs'jrepancies between, 53, 55, 56, 71. 
 
 Force amd Fear, 
 
 is a defect of title, SO. 
 
 FoREifiN Rills and Notes, 
 definition of, 41-43, 252. 
 what law governs contract, 200, 227-237. 
 protest of, 184, 187. 
 
 is the only legal notice of dishonor of, 187. 
 damages on, 200. 
 
INDEX. 
 
 291 
 
 would not 
 
 11, 179. 
 I Bills and 
 
 ,55. 
 
 Foreign Lam's. 
 
 what countries are foreign to the forum, 41, 229. 
 
 conflict of law- '27-237. 
 
 revenue laws not recognized, 228, 230. 
 
 codes on bills and notes, 15-20. 
 
 Forgery. Sec Alteration. 
 definition of, 97-102, 216. 
 bill drawn in fictitious names is, 46. 
 no title can be derived througii, 97-99. 
 estoppel, when bill accepted in blank, 80, 99, 100. 
 party with notice of forgery, lying by, 99. 
 caused by negligence, 77-79, 101, 216. 
 may be ratified, 99-101, 215. 
 
 bank's duty to know customer's signature on checiue, 238. 
 what a party transfering bill, note or cheque, -,. arrants, 202. 
 remedy on forged instrument, 97, 101, 239. 
 
 7raud. See Alteration of Hill or Xote. 
 fraudulent bill or note, 79, 126, 129. 
 notice of, 121, 122, 125. 
 in tilling in amount, 79. 
 
 in filling in drawer's name in a firm's bill fraudulently accepted, 77. 
 in altering marginal figures in blank acceptance, 56, 72. 
 in altering a bank note, 99, 217. 
 fraudulent indorsement, 99. 
 
 Fund, 
 
 bill or note payable out of particular fund, is conditional, 32, 39. 
 indication of a particular fund, is not conditional, ;}2, 39. 
 
 Good Faith, 
 
 negligence does not destroy, 121, 122, 216, 240, 264-266. 
 nor means uf knowledge, 123. 
 
 Guarantor, See Aral. 
 
 liable on bill or note without presentment to maker, 190. 
 not entitled to notice of nishonor, f82. 
 
 History of thk Law uk Bil'.s of Excha.nuk, 3, 25. 
 
 Holder, 
 
 meaning of, 29, 59, 121. 
 
 may sue on bill, 144, 
 
 when title defective, 121, 123-125. 
 
 is a holder for value if value has once been given, 125. • 
 
 with defective title may negotiate the bill, 144. 
 
 HoLi^ER ivf Due Course, 
 who is, 121-126. 
 holder deriving ids title through a, 121, 125, 145. 
 
292 
 
 INDEX. 
 
 Holder in Due Course — Contimied. 
 
 every holder prima facie deemed a, 29, 59, 121, 126-128. 
 holds the bill free from defects of title, 83, 121, 125, 145. 
 
 free from certain personal defences, 145, 193, 195. 
 
 altered bill according to original tenor, 215, 216. 
 how cancellation afTects a, 214. 
 
 Holidays, 61, 267. See Biminess Days. 
 
 Honor Supra Protest, 
 
 acceptance for, 219-222. 
 payment for, 222-'224. 
 
 Hours, Reasonablk, 1.58, 160. 
 
 Ir.LEGAL Consideration, 
 
 illegal consideration makes title defective, 121, 123-125. 
 bill given for, in hands of holder deriving title through a holder in 
 due course, 125. 
 
 Immediate and Remote Parties, 80, 83. 
 
 IM'HOATE Instri'mems, 
 
 authority to till in blank paper, 59, 70, 71, 76-80. 
 time within which it must be hlled in, 76, 79. 
 
 Indemnity, 
 
 on giving duplicate bill, 224-225. 
 in action on lost bill, 225. 
 
 Indorsement, 
 
 meaning of, ;}(), 134, 135. 
 
 forms of, 135. 
 
 indorser is in the nature of a surety, 137. 
 
 indorser is in tlie nature of a new ih'awer, 1.37, 264. 
 
 transferor may be compelled to indorse, 133, 225. 
 
 signature essential to, 134, 135. 
 
 signature on Itliink paper, 76-80. 
 
 may lie on any part of bill, 134, 137. 
 
 on copy, 134, 135. 
 
 on allonge, 1.34, 135. 
 
 must be of the entire bill, 134, 135. 
 
 indorser's contract revocable till delivery, 80, 81, 131, 135. 
 
 misspelt indorsement, 134, 137. 
 
 is a guarantee of prior signatures, 137, 195, 198. 
 
 may negative or limit liability, 65. 
 
 transfer without, 131, 1.33. 
 
 after death of payee, 83, 133. 
 
 by partner. Sec Partner. 
 
INDEX. 
 
 293 
 
 Indorsement— Co?!<enwrf. 
 
 indorsement to two or more severally, 134, 136. 
 
 presumed order of, where two or more indorsements, 134, 137, 144, 
 
 198, 209. 
 special indorsement, 135, 138. 
 restrictive indorsements, 139, 140. 
 
 conditional indorsement, may be disregarded by payer, 138. 
 blank indorsement converted into special, 138, 139, 
 after indorsement in blank, bill payable to Vjearer, .ol. 
 waiving holder's duties as against indorser, 65. 
 fraudulent, 99. 
 
 effect of indorsing an overdue bill. 56, 57, 141. 
 effect of indorsing an incomplete bill, 76-80. 
 indorsement of bill back to prior party, 143. 
 contract and liability of indorser, 195, 196, 197. 
 liability of stranger signing bill, 68, 93, 198-200, 209. 
 bank paying on forged indorsement, 97, 101, 238. 
 striking out indorsements, 204, 208, 209. 
 effect of indorsing note payalile to maker's order, 251, 254. 
 contribution between indonsers. SeeSuiufi/. 
 
 Infant, 
 
 capacity to contract, 87, 88, 91. 
 
 liability on bill drawn during infancy, but accepted after, 91. 
 
 transfer of title by, 87, 91, 92. 
 
 Initials, 
 
 signature by, 35, 75. 
 
 necessary to uncross a cheque, 247. 
 
 Inland Bill or Note, 
 what bill is, 41-43. 
 what note is, 231, 233, 252, 255. 
 
 Instalments, 
 
 bill or note payable by, ,')3, 54. 
 
 days of grace on such bill or note, 54. 
 
 Interest, 
 
 bill or note payable with interest, 53, 54. 
 
 from what time interest runs when expressed, 54. 
 
 when not expressed, 54. 
 \vhea recoverable, 200-202. 
 usurious, 129. 
 
 Interpretation, 
 
 of terms used in Act, 23-31. 
 of crossing cheques, 244-247. 
 
294 
 
 INDEX. 
 
 lOU, 
 
 meaning of, 253. 
 
 in eviileiice of an account stated, 'J53. 
 
 Issue ob- Bill or Note, 30, 59, 80, 255. 
 
 Joint wd sevkral Note, 
 
 piov-isiona as to, 49, 136, 256-258. 
 
 " I promise to pay," signed by two persons, 256-257. 
 
 " We promise to pay," 256. 
 
 if iir>te is joint, judgment against one is a bar to an action, 256 
 
 wlii.-n some refuse to sign, 93, 136. 
 
 presentment of, 150, 151, 162. 
 
 Justicks of the Peace, 
 
 may protest bills or notes, 268, 269. 
 
 Lachi'N. See Presentment, N'otice of Dishonor, Cheque. 
 
 Law-Merciiant, 
 history of, 3-24. 
 
 LlAIlIUTT, 
 
 drawer or indorser may limit, 65. 
 of .loceptor or maker, 193, 262, 263. 
 of acceptor, supra protest, 220. 
 of drawer or indorser, 65, 195-198. 
 of maker of note, 262, 263. 
 
 LrMiTATioNs, Statute of, 
 
 when time begins to run on bills, 57. 
 on ohefjue, 241. 
 
 Lost IUll, 
 
 when bill lost or detained, protest may be made on copy, 185, 189. 
 
 when loser may demand a duplicate, 225. 
 
 must give an indemnity, 225. 
 
 drawer of a lost bill entitled to notice of dishonor, 170. 
 
 when the Court may order it not to be set up, 225. 
 
 Lunatic and Idiot, 
 contract with, 87. 
 
 Maker of a Note, 
 
 corresponds to acceptor of bill, 252. 
 presentment to, not in general necessary, 259, 261. 
 where note payable at a particular place, 260 
 contract of, 193, 262. 
 
 Manitoba, 
 
 law of, 235. 
 
INDEX. 
 
 29.- 
 
 Mark, 
 
 signature may be by, 35. 
 
 Markino Cheque, 
 
 eflfect of bank marking a cheque, 2.38. 
 
 Marriage, 
 
 is a sufficient consideration for a bill or note, 11.3. 
 
 an instrument promising to pay on, is not a note, 34, 58. 
 
 of maker and holder, discliarges note, 205. 
 
 SIarrikd Woman, 
 
 contracts with, 88. 
 
 may now contract as regards her separate property as a ftme sole, 88. 
 
 MKMORANDtM, 
 
 effect of pl.ace of payuu -t being mentioned in a, 76, 161, 260, 261. 
 Meroer, 206, 207. 
 
 MisSpelmno, 
 
 drawer'.s or acceptor's name, 07, 70. 
 payee's or indorser's name, 134, 137. 
 mode of indorsement, where name i.s mis-spelt, 67, 70, 137. 
 
 Mistake, 
 
 alteration to correct, 56, 216, 218, 2r)3. 
 
 Month, 
 
 means calendar month, 62, 64. 
 
 Municipal Corporations, 
 
 bills and notes of, 40, 88-92, 200, 267. 
 
 Neouoence, 
 
 in taking a bill or note not the same as mala fhles, 79, 123 249 264- 
 
 266. 
 gross negligence may be evidence of ninlajblc'^, 123, 106, 264-256. 
 of bank in paying checjue, 24S, 249, 2.. 
 
 Negotiation ok Hill or Note, 
 meaning of, 131-134, 140-14,3. 
 what bills are negotiable, 51, 131, 134, 138. 
 transfer of, witliout indorsement, 131, 133, 1.38, 202. 
 
 by indorsement, 51, 131, 132, 1.34- 13S. Sef Indors'-nvnt. 
 within a reas(mahle time, 76, 143, 14S. 
 negotiation back to party, 204, 207-209, 212. 
 when such bill may be re-issued, 204, 208. 
 negotiation of bill by holder whose title i.s defective, 140, 141, 144-146. 
 
 of bill issued in blank and filled in afterwards, 76. 80. 
 when bill !• ■ ise.s to be negotiable, 51, 140, I4_'. L'Ot, •_>M7. 
 words prohildting tran.sfer, 51, 139. 247. 
 
mt 
 
 X :■ ■ 
 
 296 INDEX. 
 
 Nkw Brunswick, 
 law of, 235. 
 tariff of notarial fees in, 271. 
 
 NoN -Business Days. See Business Days, 
 
 Notary, 
 
 presentment of bill by, 160, 161. 
 
 protests and notices by, 180, 181, 184-189, 221, 223, 269. 
 
 justice of peace may act when notary not accessible, 268. 
 
 tariffof fees, 270, 271. • 
 
 Note. See PromiMory Note. 
 
 Notice, 
 
 what amounts to notice of defect of title, 121, 122, 141, 145, 265. 
 
 Notice of Dishonor, 
 
 on (lislionor by non-acceptance or non-payment, 152, 153, 168-170. 
 
 to whom it must be given, 168, 170-178. 
 
 must be a formal notification of dishonor, 166, 173. 
 
 by non-payment, after notice of dishonor by non-acceptance, 169. 
 
 holder of bill taken as collateral security must give notice, 158. 
 
 by an agent, 170, 172. 
 
 what i)arties may avail themselves of it, 170, 171, 173. 
 
 sufficiency of, 171, 173, 174. 
 
 may be verbal or written, 171, 173. 
 
 misdescription in, 171, 173. 
 
 in case of death of drawer or indorser, 171, 172, 174. 
 
 two or more drawees, 171, 175. 
 
 when to be given where the parties live in same place, 171. 175. 
 
 in different places, 171, 172, 176. 
 time within which party receiving notice has to give notice, 172, 176. 
 notice by post, 172-178. 
 consequences of not giving due notice, 168. 
 when excused, 178, 179. 
 waiver of, 178, 182. 
 as regards drawer, 
 
 where drawer and drawee the same, 178. 
 
 drawee fictitious, or not able to contract, 178, 182. 
 
 absence '^f t-fteots in drawee's hands, 178, 183. 
 
 It. . '3nd <-c payment, 178. 
 
 riic^vec I. -.iiikua, or not able to contract, 179, 183. 
 
 Hhpi.j *i i!i ; '•iJi uted to indorser, 179. 
 
 bill .i' .1 his accommodation, 179, 183. 
 
 miscarriage by post-office, 172, 177. 
 tacceptor for honor entitled to, 220. 
 
0. 
 
 176. 
 
 INDEX. 297 
 
 NOTINO rOH PUOTEST, 
 
 what it is, 184, 185, 187. 
 
 not necessary on inland bill, except in Quohee, 184. 18fi. 
 must be done on day of dishonor, 184, 187, 207. 
 when delay in noting excuaed, 185, 2G7. 
 
 Not Nkootiaulk, 
 
 when l)ill or note becomes, 51, 1.39, 140, 142, 204, 207. 
 cheque crossed " not negotiable," 244-247. 
 
 Nova Scotia, 
 
 law of, 2,35. 
 
 tarifiFof notarial fees in, 270. 
 Office, 
 
 bill may be payable to holder of an offioo, 48. 
 
 Ontario, 
 
 law of 235. 
 notarial fees in, 270. 
 
 O.vus Probandi. See Evidence. 
 
 Order, Bill Payable to, 
 what ))ills are, 51, 52. 
 
 assignable by indorsement, 51. See Iwlorsntwnt. 
 omission of the words "or order" in special indorsement immaterial, 
 51. 
 
 Overdue Bill or Note, 
 
 negotiation of, 140-143, 2.52. 
 
 may be accepted, 71, 62. 
 
 when bill payaldc on demand is overdue, 141-143. 
 
 when note payable on demand is overdue, 258. 
 
 not overdue if a reasonable time lias elapse.l since issue, 2.->8. 
 when cheque is overdue, 240. 
 subject to equities and defects of title, 141. 
 bill indorsed when overdue is payal)le on demaJid, .%, 57. 
 
 Part Payment, 
 
 when a discharge of bill or note, 205. 
 
 i'ARTiAL AroEPTANCE, 73, 85. See QnaU/ied Aco^p/anre. 
 Partial Indorsement, 135, 138. SW T„rlor.->F.menf. 
 Partner, 
 
 each partner the agent of the others, 83, 93. 95, 175, 205. 
 
 where one partner can bind the tirtn by Ijjll or note', <<8, 70. 7«!, 256. 
 
 acceptance in blank by, 77, 97. 
 
 indorsement by, 136. 
 38 
 
298 
 
 INDKX. 
 
 Partnkb —Continued. 
 
 Ill lice of ilislioiior to, 175. 
 
 [lartneralups not in traile, ~i], S!», IK). 
 
 .■^iyiiature aa agi;tit, or in representative capacity, 90, IOC, 1:^0. 
 
 ini.stake in the name of fiim, %-97. 
 
 Patk.nt Rioht, 
 
 l)ill or note given for, l'2(>, 130. 
 
 Paykk, 
 
 meaning of, 32. 
 
 must be indicated with reasonable certainty, 31. 
 
 parol evidence to idf-ntify payee, 49. 
 
 fictitious or non-existing person, 48, 50, 98, 195. 
 
 where j)ayee dead, 49. 
 
 the liolder of an ofhce, 48, 49. 
 
 a« to filling in payee'.s nanio where it is left blank, 48. 
 
 signature of, necfss.u-y to incur liability aa indor.sor, icJ, i)3. 
 
 indorsement by, where name is wrongly stated, fiO, l.'U, l.'fti. 
 
 indorsing bill not negotialde, ol. 
 
 P.VYMKNT, 
 
 meaning of, 201. 
 
 jiresentment for, ir).")-163. Sef PresentiiKiit for I'ayiinnt. 
 
 when a discharge of bill, 203-215. 
 
 to whom paj ;nent shoidd be made, 204, 200. 
 
 liy whom, 203, 204. 
 
 on maturity of 1)ill, 204. 
 
 ]iart payment, a discharge, 205. 
 
 accommodation bill, 204, 209-212. 
 when drawer or indorser may re-issue bill after payment, 204, 207-209. 
 jtayment by a renewal note, 205. 
 " stopping '' payment of cheque, 242, 243. 
 
 when drawer or true owner of checpie can recover the amount, 250. 
 when crossed cheque is paid contrary to the crossing, bank liable, 248. 
 j)ayment of debt by smaller amount, 205. 213. 
 
 I'.vv.MKNT, Supra Prodxt, 
 meaning of, 222, 223. 
 where two or more offer to pay, 222. 
 for whose honor, 222. 
 what procedure required on, 223, 224. 
 rights of payer for honor supra protest, 222, 223. 
 holder of bill refusing to receive, 223. 
 
 Fkbson, 
 
 what it includes, 44. 
 
 fictitious. See Fictitious Person. 
 
 i:ii,is 
 
INDKX. 
 
 21)9 
 
 7-209. 
 
 b, 250. 
 ;, 248, 
 
 Place, 
 
 l)ill drawn payable elsewhere than at the place of bii.siin'sa or resi- 
 dence (if the drawer, 147, !')(), 1(12, 1G.'{. 
 acceptance to pay at a particular place, 73, 75, 15t), 100, 190. 
 of payment in note, 2")9-2t)2. 
 of payment in memorandum, 70, Kil, 200, 261. 
 where liill should he presented for payment, 15G, 102, 
 
 PossKssioN OF Bill or Note, 29, 78, 
 
 Post-Okfick, 
 
 presentment for payment throuj^h, 151, 157, 103. 
 presentment for ])aynient at, l.">7, 103. 
 notice of dishonor through, 172, 177. 
 miscarriage of, 172, 177. 
 
 Presentment for Acckptanck, 
 
 necessary, where hill payable after sight, 140, 14S. 
 
 should be personal, 157. 
 
 where bill Irawn payable'elsewliere than at residence or place of 
 
 business of drawee, 147, 150, 102, 103. 
 consecjuence of not presenting, 148. 
 duty of agent as to, 150. 
 to whom it must be made, 150, 151, 
 at what time it nuist be made, 148, 150, 151. 
 two or more drawees, 150, 151. 
 
 where drawee is dead, or bankruijt, or cainiot be found, 15u, 151. 
 presentment through the post-otfice, 151, 157, 163. 
 when excused, 150, 152. 
 disiionor by non-acceptance, 152, 153, 154. 
 refusal to take (pialitied acceptance, 151, 154, 
 duties of holder as to ([ualilied acceptance, 154, 155. 
 
 Presentment for Payment, 
 
 re(iui3ite3 and moaning of, 155-103. 
 
 is generally local, 157. 
 
 when tolie made, where instrument is not payable on demuiul, l.'0,158. 
 
 where payable on ilemand, 150, 159, 
 by whom, 150, IGO. 
 at a reasonable hour, 158. 
 to whom, 150, 100. 
 
 to person having no capacity to contract, 157, 
 at what place, 76, 156, 100-103. 
 
 of bill or note, when place of payment is indicated by way of memo- 
 randum, 70, 101, 259-202, 
 of checjue, 239, 240, Sec Cheque. 
 
 of bill, where two or more persons are drawees or acceptors, 157, 162. 
 of accommodation bill for benefit of indorser, 118, 
 
w 
 
 300 
 
 V i 
 
 INDEX. 
 
 PRKHKNTMKNT FOR PaYMKNT— CoH^inxerf. 
 
 wliurc drawee or acceptor is dcdcl, 157. 
 
 bankruptcy of drawee or accejjtor, li)7. 
 
 through the jmst-olfice, 151, 157, 1G3. 
 
 at the poat-ofHce, 157, 103. 
 
 excuses for dehiy in, or non-presentment, 103. 
 
 dishonor by non-payment, 108. 
 
 of bill acce))ted generally, not necessary to charge acceptor, |S9, 190. 
 
 necessary in ca.se of (lualilied local acccjjtance, lltO. 
 
 omission to present on tlie day sucli 1)111 matures, 190. 
 of note, when necessarj' to charge maker, 25H-202. 
 bill or note must be exhibited on, 190, 191. 
 when paid, mnst be delivered uj), 190, 191. 
 
 preaentment to acceptor for honor, 221. Ute Acceptanci' /or Honor, 
 after bill accepted for honor, presentment to drawee necess.iry, 221. 
 
 Prkscmption. See Evidence. 
 
 J'rincii'ai. and Aoknt. See Agent. 
 
 Principal an'd Sukkty. See Surety, 
 
 Procuration, 
 
 who may sign under, 102, 207. 
 
 signature by, operates as notice of limited authority, 102-104, 251. 
 
 usual signature for corporation, 267. 
 
 Pko.missory Kotk, 
 
 definition of, 28, 251-255. 
 
 what is not, 33-40, 253. 
 
 must be an unconditional promise, 34, 251. 
 
 any words amounting to a promise to pay sufficient, 00. 
 
 note payable by instalments, 54. 
 
 time of payment may be uncertain, if the event must inevitably 
 
 happen, 253. 
 note payable to maker's order, 251, 254. 
 containing pledge of collateral security, 251, 255. 
 alteration of, 215-218. See Alteration of BUI or Xoft . 
 cancellation of, 214. 
 foreign note, 252, 255. 
 inchoate until delivery, 255. 
 joint and several note, 250-258. 
 
 presentment for payment, 259-202. See Presentment for Payment. 
 when note payable on demand and indorsed, must be presented, to 
 
 charge indorser, 258, 259. 
 overdue note, 258, 259. See Overdue Bill or Note. 
 contract of maker, 202. 
 certain provisions applicable to bills apply to notes, 263. 
 
INDKX. 
 
 301 
 
 PROMLSSORV 'NoTR- Contimin/. 
 
 inakiT aiul iiidoiscr ..f ii„to corresiwiul to acceptor und tlrawir of 
 bill, •2(i.'?. 
 
 protest on foreign note necessary to clinrgo indorsers, -203. 
 difTereiice between eheciiii; and note, 'iS!). 
 
 Protest, 
 
 necessary on dishonor of foreign bills, 1S4, 187. 
 
 but not on foreign n<ite.s except to charge indorsers, 2(i;{. 
 unnecessary on inland bills or notes, except in (.)uebec, 1S4, 186. 
 is the only legal notice of dishonor of a foreign bill, 187. 
 time when it should be made, 184, 18,'>, 187, 2(;7. 
 extending protest, 1S4, 187, o()7, '_>()8. 
 
 for better security, 184, 188. 
 when bill sent through post odice, IS.'), ISS, 
 at what jilace, IS.l. 
 
 at what hour it may be made, 18,'), ISO. 
 what the protest ujust contain, 18"), 1,S!». 
 where bill lost, or de.stroyed, or detained, 185, 189, -224. 
 when excused, 185, 18!», 
 
 necessary bei'ore jjreseiiting hiU to referee in case of need, 219, 221. 
 necessary on dishonor of jjill accepted .•<u/>ra protest, 2'2\. 
 notarial acts, 185, 'J21, 22H, •.'(;S--J7I. 
 where notary is not availal)le, '_'()8, 209. 
 tarilTof notarial fees, 2(18, 270, 271. 
 forms to be used, 1st .Schedule, 2G8, 271, 274-279. 
 
 Public Policy, 
 
 contracts against, 121, 123125. 
 
 Qualified Acckitance, 73-7U, 154-155. 
 
 Quebec, 
 
 holidays in, (il. 
 
 law of, as to bills and notes, Isfj, 187, 235. 
 
 notarial fees in, 2(;8, 271. 
 
 inland and foreign bills and notes must be protested in, 184, 180. 
 
 pour Aral, contract of, in, 199. 200. 
 
 Ratification-, 
 
 of infant's contract, 91. 
 
 of agent's signature, 103, 105, 100. 
 
 of partner.:" acts, 93, 95. 
 
 of corpomti. Ill's contract, 90, 107. 
 
 of unautho! i/.ed signature, 99. 
 
 forgery may lie ratitied, 101, 215, 216. 
 
 REA.SONAIJLE TiME, 70, 79. 
 
;i02 
 
 IN'DKX. 
 
 RKK.\(Ul\NriE, 
 
 what it is, :..'), 200, 201. 
 
 when ifcovcniltlf, ■).'), 200, 201. 
 
 Rkfkkkr tN (."a.sk or Nkkd, 04, 221. 
 
 Rk-Issck of Him,, 
 
 wliun party lial»lo thereon may ro-issuo bill, 143, 144, 204, 207, 208. 
 
 Relf.a.se, 
 
 of aucepti)r at maturity, 213. 
 
 of otliir parties at or hofore maturity, 213. 
 
 imirtt 1)0 ill writing, 213. 
 
 REMfilON. 
 
 law-iiifrcli.int respects different religion.?, 170. 
 
 Rei'Kai, ok Statitks, 272, 273. 
 
 Rkstrii:ti\ F. Im'ipHSEMF.nt, ■ "5, 13(», 1.30, 140. See Indnrif mtiit. 
 
 Sale of Him. oit Note, 131, 132, 202, 20,3. 
 
 Set, Him. is a, 
 
 when tliey eoiistitute one bill, 22(), 227. 
 
 liability of in<liirser where more than one part is imlorsed, 226, 227. 
 liability of dniwee aeeepting more than oni' part, 22r», 227. 
 paying part not bearing his acceptance, 226, 227. 
 
 Sight, 
 
 bill payable at sight, 57. 
 
 Signature, 
 
 what is suth('icnt, 35. 
 
 may be by a ni'irk or initials, 35. 
 
 place of, immaterial, 93. 
 
 of drawer necessarj', 31, 34. 
 
 of acceptor necessary, (56. 
 
 necessary for a valid indorsement, 94, 134, 1.3"). 
 
 signatnre on a blank paper, 76-80. 
 
 signing in a tnule or assumed iiMiiie, 93-95. 
 
 signing in the name of a tirm, 68, 93, 95. 
 
 by an agent, 102-110, 266. 
 
 unauthorised signature may be ratified, 97, 99. 
 
 signature by procuration, 102-104, 266. 
 
 liability of person signing as .agent, 102-110. 
 
 forgery of, 97- 102. 
 
 forged or unauthorised, confers no right to bill, 97-102. 
 
 liability of stranger signing bill, 64, 68, 93, 94, 127, 198, 200. 
 
 Special Inuoiisemest, 87. 
 
 
 ■ '( ' - 
 
;io;j 
 
 iM)i;x. 
 
 STATL-TKS, OONSTHI'CTION OF, 85, l'J.1, '2(>'2. 
 
 Stolkn ,.u Lost, 1{ii.i., Notk, oh ViinnE, 77, M.l, -.Mr), QW. 
 
 yiKANUKK, 
 
 sign.ituro OM l.ill l.y. (U, «8, 93. iU, 127, K.,., L'OO. 
 accuptiuiou l)y a stranger, 219. 
 payment hy n struiigur, 2'2'2. 
 
 bXRiKiNc (IIP Indokskmknts 'JOt. 
 
 Sum Pav \itt,i:, 
 
 muMt l.L" a «um .•.■rtuin in money, .31, .^H, .I.'} 54 
 
 wh.ro sum .xi,res.s...l in wonl. .lilFurs from Huni in figures, 5:t .-,5 
 
 wH..n,!..m.ni,tKmofm,moyumittc,l, .-xi, 1..IH 253 " ' " " 
 
 wliuro sum >.s fill..! in, an.l marginal tigure-s altored, 50, 71. 
 
 IS lUe true consideration, 2, .13, 40 112 
 
 SuNjiAY. .SVe IthsineM Days. 
 bill dated on, (JO. 
 notice of dishonor dated on, 174. 
 
 .Sl'I'ka l'i;(iTi:sr, 
 
 refere.) in case of need; 64, 221. 
 acceptance for honor, 2ly. 
 liaynicnt for honor, 222. 
 
 Surety, 
 
 party to an accommodation bill, 118-121. 
 
 where evidence adnds.ible to show surety.nip, 93. 
 
 as Ijctween holder and surety, 119, HKI, ly;. 
 
 as between indor.^er.s, !»3, 137. 
 
 entitle.l to securities held by the creditor, 207-209. 
 
 cont'ibution between co-sureties, i;{7, 209, 210 
 
 Biguiiture iis, 04, 08, 93, 199, 200. 
 
 Time. 
 
 bill or note i)ayable at fixed, 31, .S7, .-)7, 02. 
 
 computation of, (;204, 7!», 207. 
 
 " month" means calendar month, [\o 04 
 
 re^uOde, 70, 7^. 141, 143, 148, ,49. '153. ,5.1. 158. 159, ,03, 240. 
 
 Time of Payment, 
 
 bill or note payable on demand or at sight, 56, 251 
 wlien no time for payment is expressed, 50, 75 " 
 bill payable at determinable future time, 57, 251. 
 
 on an event certain to happen, 57, 253 ' 
 when bill drawn in one country and payable in another, 229, 237. 
 
•P— ^ 
 
 304 INDEX. 
 
 Trade Name, 93-95. 
 
 Transfer, 131. See Neyoliation. 
 
 Transferor by Delivery, 
 who is, 131, 1.32, 202, 20.3. 
 what he warrants, 202, 203. 
 
 Unauthorized .Signature, 97, 99. 
 
 Undue Influence, 
 
 title to bill or note given under, 121, 126. 
 
 Usage of Trade, 
 
 in determining what is reasonable time, 156, ](i3, 240, 24:2, 258, 259. 
 
 Usurious Consideration, 126, 129. 
 
 Value, 
 
 meaning of, 30, 110-117. 
 
 presumed, 2, 11, 40, 112, 127. 
 
 during rarreucy of bill or note, is sufficient, 110, 115. 
 
 " value received," not necessary to state in a bill or note, 16, 32, 40. 
 
 Waiver, 
 
 of presentment, 1(54, 167. 
 
 of notice of dishonor, 166, 173, 178, 182. 
 
 of protest, 185, 189. 
 
 discharge of bill by, 213. 
 
 Warranty, 202. Sec. EMoppel. 
 
 " Without Rkcourse," 
 
 negatives liability, 65, 131, 134, 209. 
 proper form for agent, 102, 104, 109. 
 
 Writing, 
 
 includes printing, 35. 
 
58, 259. 
 
 32, 40.