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Bl
gen
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^
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Photographic
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Corporation
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23 WEST MAIN STREET
WEBSTER. NY 14580
(7i6) 872-4503
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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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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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23 WEST MAIN STREET
WEBSTER, N.Y. 14580
(716) 872-4503
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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.