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^ -APPLIED irVMGE
YOUR OWN LAWYER
AND CONVEYANCER;
OR,
TREASURES OF THE LAW OFFICE.
OIVINO IN I'ONCIHE KuUM INK MKllCASTIl.F (111
Business Laws of Canada and Newfoundland,
The Technical Points and Main Features of the Law,
WITH NUMEROUS HINTS, CAUTIONS, WARNINGS and SUGGESTIONS,
Tr>i;KTHKI: u ITir IttV V\|<iuIS
LEGAL AND BUSINESS DOCUMENTS IN
GENERAL USE,
KCkMINC f WORK OF
READY -REFERENCE FOR MAGISTRATES, CONVEYANCERS,
PROFESSIONAL AND BUSINESS MEN, LANDOWNERS,
CONTRACTORS, Etc
LAWYERS will also find it convenient as a well-classified
condensation of most vital legal points.
7HIKD EDITION. TWENTIETH THOUSAND.
REVISED AND ENLARGED,
BY A BARRISTER-AT-LAW.
Edited and Published by
W. H. ANGER, B.A.,
TORONTO, 1901.
19'
NOTICE TO PURCHASERS.
TiiK »|pcci»l clmracttir nf this Mihinie .md lliu ninny tlinusjuid CDpii's alrejuly solil
iniiliL' it ilisinilile that it shuuld iiirniiiMently ivnmin in thu humU iif itn [lurchivterii ii
trustwonliv \K-in\ s^ukU'.
If puiuliiiwrH will forwiiril liy curd thi'ir Niinie and I'ust-nrtico mldross to the
Iiutilisher, wlnwu name stands un the title |uiue of the lionk, to ho entered in a liej^ister,
they niiiy ohtjiiii f.u- a fee of ton cents each year alK)ut the first of June, after the close
of the Dominion Parliament, printed sheets <?ivin({ the new lo^islation, ainl whatever
changes may have heen made aH'ectini; any point in the hook.
The sei'tions, or points, thus all'ecteil will he reprinted so as to ho irisoitiil m llie
})Oi)k at the proper place, ','iviin; the law as it is after the chanL;e.
The point as it f.irmorly stood, hoing preserveil, will serve to show hy comparison
the exact nature ami extent of the change, thus making it as dear as the day.
The tirst corrections will !>« i.ssuoil .lime. 1".K)1 ; notice of which will ho f(jrwarded,
when rc.idy, to each suhscriher who has registered. As there are two former edition.s,
please state when forwardins; your name the date of the hook yoii have [lurchased.
Agents have no financial interest in forwarding names for registration, therefor.-
suhscriljers themselves must .send their names if they desire them to he entered.
Kiiterwl ai.-v-orilinjt lo Act of the IVirli-imenl ot C.iniuU, in th,; \\-dr one thou^an.l tiiiiu liuriilrt-tt nnd one, hy
VViLLlAM Hn.M'.T Asumt, ut the DiiKirlnitnt ot A.-riniliuri'.
I'Rl'I-ACl:
TilK gubject treated in this v.iluiiif i» iiiin to wliicli no clans of p«rsoii» in
Ciiniuitt cnn Ix- indifferent, for no man can profierly discharge the duties he owes
to the pul)lic, or to himself, or to his f.wnily, without in some decree possessiiii; a
(ii'tinito knowltMJKe of th.' laws by whith all are bound ami tli« oblijjations resting
u|M)n each as an individual. The mercantile laws of Canada have j^rown up
with the lentury and every citizen is j>resunii.i i,, Ijc- fai liliar ■• iili tliera.
There is no g<X)d reason wliy every itit.-llig.-nt busin.ss ■ind professional
man should not understand particularly the laws of niitnu-t, agreement,
guaranty, negotiable paper, chattel mortgages, niort;,'aj,'e8, l;ni<ll..nl uii 1 tenuiit,
wills, etc., as fully and clearly as any judco or lawyer in the land, for they
belong to business life just as much jw <loes the knowleiige of the (|ualities and
values of g(X)ds and commodities.
"Your Own r*vwyer and ConveyanoT " is m.t inteniie.l tn ni.ike lawversout
of laymen, nor even to take the place of a lawyer in oa.ses where a lawver is
actually needed, but it In intended to furnish its readers with such a detailed,
sy.steniatic compilation of those. Inisiness laws witli uhiili every person in
community comes in daily conUct that will enable them to iut intellii^ently .md
promptly in the conduct of their business and avoid makin.;,' tlioss needless
mistakes which involve loss and lead to mine iis liti;:ali(in. It is doubtless tin-
only [.nrely l;iu- honk )nil.li^hed m C.uiad.i that i^ uiiiten from the >tiLnilpnint ol
the layman, fjivini; the information that laymen new!, detailed and (liir.i, free
from tecimi.al language .md the nn-iiiieval phraseology employe<l in llie .Statutes.
Tlje success that has atlitided the publieation and sale of the two previous
large editions of this work is siillirienl evidenre tliat it is mcetin:; the i,'cner;U
and increasing demand on the part of business and professional men for a more
accurate and critical knowled;,'^ of those laws that confront th.-m in evervdav
life, 'ri..' ni.cn will) thinks it his duty ..r a \irtne In remain ii,'nnijint, .if liis le;,Ml
rights anil oliligations so that lawyers and court ollicials mav thrive at his
e.\i)pnse is not addressed in these pages, but all others are itnited in enter
within and examine for themselves the contents of this, the third and ei.larged
edition of this wnrk, wliidi h.i~, licrn prepared with i^reat care and bv the best
of t.ilent.
iXDi'X ro rii Ai'i i.Rs.
fOeneral Imltx nl Itiirk i,f Book. )
ACiKl'IAMK
CHATTEL M<)I{T<!A(;KS
COLLKlTKtX (»F DKHTS
CUNTKACTS .
Cnp'i |;|(,|l I'
1)1 K HlI.I.s (>IU)KI{S. UKl'KIITS
Gl'ARANTY AND M KKrVsllIl'
• JiAKDiNCi A(;AiN">r I i;ai 1)
INIfOKSKMIlNI'S
INSuIAKNT DKI'.TdUS
INTRoDrCToftV
.Ji'INr MiM'K (uMl'AMKS ..
l.\Nli|."Uli AMI TKN ANT
MAKKli li Uii.MKNs rUDl'KUlA Kh
MASTKl! AM) >KU\ ANT
MKCIIAMCS' 1.1 K.\ \rr
Ml iRTi; \i;i;s
MJ.iri'lAIU.K I-\I'KK
I'MtlNKUSlllP
I'A^MKNTS ..
PRINCll'Al. AM) AilKNT
PUnl'KK'iV
IlKCKIl'TS
STATITK nr I. IMITATIONS ..
WII.l.S
in.-
47
HO
183
U
17!>
j
123
71
1!»2
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32
148
2!«
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103
«3
76
ltl7
INTRODlJCrORY.
I' Law is ii rulo 111 iiciiori A" 111 this vulmm' iim-iiiniliDiiul uinl
iiituriiiitioiiui liiw will not lie (ii'iiii with, liiw will he "Icliiu'il as ciiibrii-
citi;; 111! those rules (jf iicliciii, wh'lher written nr iinwrittei'., wiiieh havi*
heeii I'stahlishi'd hy the cDiiiiimtiity for the ^uiiluiice of its inhiihitiuits.
'i Legislative Bodies In'Ire.it I'.ntain the Iiii]» ri.il I'mliiiiueiit,
iliehlilill;; the Hoii^e ot Uoiiiinons iiinl House ot li<irds. Ill (.'ailiuhl, till*
DoMiiiiioii I'arlijiiiieiit, iiichuliii;,' the liousu of C'oiiimon.s ami Seiiato, ami
till' Le<;islative Asseiiihly of each of the IVoviiires. In tlie I'nitoii States,
Coiij^ress iiml Si'niite, unci the viirioiis State Lef^islatures.
Hut hesiiles these j;ieat ie;^'islative hodics, in each cotnitry there are
various other minor corjn mil ions possessing extensive legislative powers.
Every c.\*y, Ijwn, county, towiiship, ami incoriiorated villau'-' has power to
imss iiy-laws which have the full force ol statute law within the'ir
.H'rlHcliction.
Incorporated companies, hxijjes, and various associations workin^j
under (Jovernment charter, also have pc^wer lo pass hy-laws, and adopt
'onstitutions or measures that hind their n.einhers in all thinj;s pertaiimi;;
to the association ,as firmly as they wou'd he hy the national laws.
Therefore, as ineiiihers of such iissociatioiis we must not for:,'"t tliat
wi- ,ue rei|uired in all matters pertaininj,' to them to comply with th«ir
rej^'ulations. ,ind in case of any supposed wroiijj we must tir.it exh;iu--t the
machinery which they proviile fur the n'dress of our j,'rievance before we
take tlie ca.se to court tor suit.
'•i Divisions of Law. (1 » Common Ijiw ; (2) Statute Law
ISi'M.l.v these two j^nui 1 divlsioiis of the law there are various other
divisions useii because of the ditrerent objects to which the law a[iplies, as
follows: Civil F/iw, Ciiiiiiiial Law. Mercantile I^aw, Marine Law, Con-
stitutional l.,iw and li.lrrii.'iti'iiial Law.
4 The Common Law is wh.it is called the unwritten law. It had
its uri^'in in tie' eaily days of IJritain. The various races from which
have sprun;^' the' En;^lish pi.'ople brought with them, when they invaded
an<l settled in the country, their respective customs and ruhs of action
which, after the various Provinces became united under one ;,'Overnmont,
causi'd cr)nsiderable confusion for a time, until a uniform b<jdy of law was
estalilislied for the whole kinj,'doiii, and tlius called the I'umiiinn hnr.
Owiiii,' to the f,-ict th;it but l'"W of tie- e.arlv inhabitants were al'le to read
6
CONTRACTS.
or writi', tin- laws wci'i- I'm- a Imij.' tiinr sinijily juvscrviil in incinuiA-.
licncf C!illf(l the uinvritttn Inn: TIr. t.ini tinvnU^n ilnes not now iiiiply
in the Name si-nse that it ili<i then, bicauso I'Vcry j)riiicii)lf ol' tlie cuiniic'v
litir has Ion;; since found its way into i)rint thron;;li ih<; thousands of
vohnnes of ro|iorts ;;ivin^' tlie ruling's and ilucisions of the various courts,
thus furnishin<r pncedi'Uts for <,'ui(hinco in all futuiv cases equal to any
written law as to uniformity and detinitem'ss.
a. Statute Law is sometimes called the writ'en law, in contradis-
tinction to the iniu-ritlni or common l.iw. It is a law that has h.en
formally written out and introduced into Parliament as a Bill, whieh
being passed, becomes a law of the land under the name of Statute Law.
(• Uniformity of Laws. Tin' laws in (inat Britain. Canada, the
L nited Statis .ui.l .W wl'oundland are very .similar, owin^' to the f ■ :t that
all the States of the Union, excpt Louisiana, and all the Provinces in tlie
J)oniinion, except Quebec, adopted the old common law of Kn<rland. tlius
makiiij: it the fundamental law of the Kn^'lish-speakinj: world: and it
prevails in all cases where it Ikis not been abro^'ated or modified by .St.itiite
Law.
Louisiana an<l (^)uel.ec adopted the old French law; therefore jieople
havni^' deidintrs in (,)uebec must keej) that fact in view. For instance, a
promissory note (.utlaws in Quel' in live years from maturity or last
psynieiit, whereas in all the other I'nn inces it i^ six years.
flLU'TKi; I
<'<L\TKACTS.
< Detinition of Contract. " A contract is an agreement between
two or UKjre persons upon .-^nmrinif ci>i)skh.m1'ii,n to do or not to do some
particular thing." Contracts are the basis of all busine.ss transactions
A man buys a carriage, it is a contract; he hires a man, leases a farm,
borrows money on a note, each one is a contract. A railroad or steamboat
company agre.s to carry .-)00 tons of eoal, it is a contract. Vou write
a letter asking a pei-son to come and clerk for vou at s:i() per month he
accepts and conies, it is a contract. So contracts include all busines.s
transactions, whether great or small.
r r „**• '^^'■^P Classes of Contracts, d) Simple; (2) T'nder Seal- (.S)
Of uecord.
1. Simple Contracts inelnd.- [iromi.s.sory notes, drafts, ehe(|ues buvin"-
and selling, erecting buildings, hiring, an.l all the manifold tran.sactions
taking place each day in community, except those agreements under
seal, as deeds, mortgages and bond.s.
2. Contract : Under Seal must of nocessitv be in writing. TIhv do
not iv.ptire a cnskhruti,,!, to make them valid, Th,, s,.al iii.ii<'ates
('(INIKAirs.
; -4
illsi.)
to other
.i-mitrr a.'lilirrution iiii.l -oleiiinity in .■vrculiiij; -^iK'li coulracts. and a
person is lu-usuiiieil to ' it»T iiito'thciii with a full kno\vl..l;,a' of then-
contents, honee <i,.ba>-re.l from aft.rwanl pleading' " insutlicient coiisiderii-
:',. Coiitracts of Iteconl arc tlir iMtrii-- in tin- rolls of a court of its
|il'Ofce(lil)j^s.
<.». Oral Contracts are tho-f made by spoken words, and an- usually
called verbal. 'I'heV are liiudiii^' for the sale of personal property for any
amount uiidei- S4(>! h\U worthless for ^<40 ami upwards. In yueheo,
l^riti.sh Columhia, Manilol.a, North-West Territories and Newfoundland
the amount is g!."iO, and in Prince Kdwani I.sland, ^:iO. They an-
I'ood for a lease of prope-rty for under three years, Ijut in reijanl ti
thiu'js they are limited in timi' to one year.
10 Written Contracts may be print, d or writt-n, or partly printed
and partly wriltiii. They may be formal, usin>,' the lej^al pln-aseolo;:y con-
tainin;.: the details of thewhole ccmtract, what was to he done, wlien, where
an.l how to be don.-, an.l the consideration (Jr they may be informal,
merely eonf^'ined in letters that hav.- passed between the parties.
11 Written Contracts and Verbal Agreements. As a u.sual thin,-
a written a;ireemenl cannot i'e atfeeted by a contemporaneous oral agree-
ment. If the written instrument purports to embody the whole contract
the court would not be inclined to receive other evidence to .show that
the intention of the parties was ditferent. Hut if the writin;L; does not
give evidence of containing the whole agreement, or shows evident on)is-
sions, then in that ca.se evidence would lie received to prove a contempo-
raneous verbal agreement. It would then be for the court m- jmy to s.-iy
whethei- such other matters were a ]>art of the agreement or not.
Vi- Express Contracts are those where the agreement is distinctly
stated and the things to Ix' ilone or not to be done detinitely declared.
Example; A farmer purchase.s a .self-binder for S^KiO, to lie delivered
on or before tie- ."ah .|,-iy of June, and to be paid for on tie- .''tli d.-iy of
October. Here tie- tei-nis ai-e all expressed.
i:t. Implied Contracts an- thost- when- tie- t.-rms an- not d.-linitely
stated, but are jiresumed to be understood. Kxamph- ; A customer h-ave.s
his order with a groct-r to hav«' delivered at his residence tive dozen of
eggs and •■?-2 worth of sugar. Nothing is said about the jiriee of eggs
or the number of pounds of sugar sold for a dollar, or anything about
payment, l)Ut the parties theni.selves and the l.iw prestnnes a tacit und.-r-
sta'nding as to the prices and the time of payment.
They are as biniling as express contracts are, but may sonn-times be
more ditlicnit to pro\ (-
14. Executed Contracts an' those whi(-h are completed at the
moment the agreement is ma<le. Example : A person enters a carriage
shop, buys a carriagi- and pays for it: the contract is tinisne^l.
15. Executory Contracts are those which are not completed .-it the
time the .-e'-reetni-nt is made. Kxanijile: A person leaves his onh-r for a
'^ CONTKACTS.
ciirriaire to ho co'upU'ttMJ in tw.. inuiiths; ,,r lir laivs it ii..w aii.l a^T. . • to
\my \uv It at a crrtai.i ,lat,' in the fiituiv. 'I'h,. contniet is not coniplrtr,]
until the carna;;,. is tinishf,! and the purchase price pai.i. The lar.'er part
ot contracts are i,i tliis class. "
l«. Illegal Contracts are utterly void f.om the l,(MMni,in,r .iii.l can-
iiut l>e entun-1. ■! Imv have iH, lrj:al effect except in s.)7ar as a Darty to
them may incur a penalty. An ille-al contract is where tli.- thin.r u 1„.
perh.rme, 1 or not to he perforiue.i. is f>rl,i.l,l..M hy law, u.s for instance-
Iosmu;,r;r|e jroo.ls into the country, or l.uyiri;,' a lottery ticket In all
sucli cases it either party has perfonne.l his j.art of the contract he can-
not comi,el the other to perform his, and if cither party has pai.l money
he cannot recover it back, as the contract is iv^anled as m holly vicious
aiKl no c.uirt would attempt to enforce it.
liut ille^jality does not always appear "on the face" of a contract and
in such owes It mast he estahlislied hy evidence, and in such cases also if
mouthy luul been pai.l hy the innocent party it could he recovered hack
In a contract containin^r more than one promise that were entirely
dKst.nct, so that one could he perform..d without the other, and it turned
out that <;nc. was ille-al, the ille-al promise would fall, but the others could
Oe entorce<l.
1 I'l- Y°'^ Contracts are those which from their bej;innin.r have no
Jejral el ect -xcept in so tar as a party to them may incur a penairy They
do not bind either party. Kxamples : " i . .>
(1) A contract iiLide on Sunday : (2) contracts a.'ainst public policy ■
.} contracts ,n restraint of tra-Ie: (4) contracts in restraint of marriage"
o) contracts to obstruct the course of ju.stice: (6) to lead an immoral iPfe'
(O contracts with alien enemies in time of war: (8) all illegal contracts
are void. "
The ^'round upon which actions could b,. entered to recover back
money paid by one of the parties to the other on contract that was null
and void, but iiot ille-al, would be "failure ..f consideration." It would
■ethe s;nne where the purchaser did not receive the -oods or property
Ijoujjht. t f J
IH Those Against Public Policy. The policy of every community
or state is to advance the public -oo,l, hence whatever contracts are
op,.osed o the ^'enera ^^,od are said to injuriously atlect .niblic j.olicy
and are, therefor-, void. Ahh.u- sueh may be mentioned:
sell n„'J' I?f ^''^^ '" ^"^""^'"^ Of Trade; as where a merchant would
km., It Hould he void, because lawful trade is co.iMdered for the pub'ic
. Hi y *: K' '"■, '" 'Vr"''"," """ "^ '"'•^''"■■^■'^' '^« it wouM only be a
pa.tial lestraint of trade Partial re'straint, however, if the nature of the
ca.se makes ,t ,,uestionable, can only be determine.l \.v the ,ourt .ifter
reviewin^r all the circuinstannes in that particular case '
i he a;,n-eement that thu.s binds a merchant not to ongas,. i>> a certain
line ot business aj,.a,n, or ,n a particuh.r locality, should c" ntain a fixed
IdXTKAr'Is.
9
sum iis iliiiiia;,'c,s t'ur ;i liifiich ut tin' contract, ullirrw is.' it woiil ! he Irft
for the Jviry to riml tlie (Jaiii!ij,'cs.
All coiiihini's as aiiioiii; inaiiul'.ictunTN liy wiiicli jirires arr l'orc'f<l ii[)
arc illiMritl. ()r;,'aiiiz('il strikus by wliich tlir aL-timi dl' others is to be
eoerci'il arcalsn illegal.
*iO. In Restraint of Marriage. Marria;,'c is heM to Iju in *ho
jmhlic i^ooil, luT.ci' any contract whicii wholly restrains marriage is void.
Tin' ciiii'litii'i' in a hc(|\icst in a will t<i a child tiiat lie or she iloes not
niarrv is void, Imt, nevi'rthcless, ilie l»ci|uest is ^ood. A jiartial restraint
of iiiarriage, where it is reasonable, may be \alid, as where a bi'ijtu'st is left
to a child on the condition that marriaj;e should not be efi'ected until the
aj;e of twenty -one, <jr say twenty-tive years, it would be valid because it
would merel}' Hx a date when there would be less dan^'er (jf coutractiii;,'
an ill-advised uiarriaL^c. P>ut if the time fixed should be, say fifty years
of ai;e, it would be void, because that would be unreasonable.
A hu.sband's be(iuest to his wife on the condition that she does not
marry anain is le;;al because she has once been married, hence not in
restraint of marriaj,^'.
'il A Marriage Broker. .\ contract to pay an a<,'ent for contract-
in;; a desirable marria;;e is vuiil; and even the money paid upon such a
contract may be recovered back, if the broker is worth it.
'i'i. Contracts to Obstruct the Course of Justice are void. An
ai,'rcement uf a pulijic otiici.-il to lin somctliiii^' cuutrary to his duty cannot
be enforce<l, and nioniy promised him to use extra exertions in the
discharge of his duty in a particuhir coursi' cannot be recovered.
'ilt. Immoral Contracts .ire \-oid. .\ contract t- iead .an immoral
life is void, IJut after an immoral c<iurse has been be^iin and a note or
other obli;,'ation lias been i^iven as compensation for dania;,'es, the oblir;a-
tion can be eid'orced. Contracts to publish, sell or forward obscene litera-
ture are void. Contracts made on Sunday are void, becau.se that day has
been .set apart as a day of rest and business pursuits prohibited. All bets,
warrers, ^Tiiinbliiif,', lotteries, rallies, buyinr; on marj^in, and jironii.ses to pay
for votes, are void. (Contracts to defraud the Government by sinuij;<;linf:f,
or to ;;ive an incorrect invoice, are void, and money promised for such
service cannot be collected. If money is j)aid in any "f ilie.se cases it can-
not be recovi/red back.
'i4. Voidable Contracts are tliosi' which take their full and propt r
Icijal effect unless they are set aside by .someone entitled to do .so. 'I'hey bind
both ))arties unless set aside. The party defrauded may void the contract
if he chooses, or he may allirm it and compel the other party to perform
it. !'or ex.annile, see following section.
'i."». Fraudulent Contracts are \-oidabh — not void. A definition
ci'UiKit be 1,'iven th.it would cover all the forms of fraud, but the foUowin;;
will make sufliciently clear what would constitute fraud: A statement of
facts that the ]iarty making' the statement knows to lie false. A conceal-
ment of facts that arc ksKJwn to one and not readily discernible by tho
CdNTHAf IS.
(jtli'i, aii'l yrt Mich ns should In- ivv.alc'l. Tlir iiiisr(j)ri.'Sflit!itii)ii must
itrtiiiilli/ (In; in in opluf to iiiiikf )i Ciisi' ol' fmud. To sustain an action
of ilccL'it tiicii; must lie proof of fraud— fraud that actually dcccivi's — and
nothinj; short of tliat will sutlicc Frau<l is jirovLii when it is known that
a faisL' represontation has liocn inmle, citlier ( I ) knowingly, or (2) without
Indiff in its truth, or (:{) recklessly, candtss whether it lietrue or false. A
mere e.xpression of an opinion which turns out to lie unfoundi'l will not
invalidate a contract. There is a diflerence lietween a man savin;; that
an article is worth so much, and .sayin;; he paid so much for it.
Kxample of mis-st!iteinent of fact : A person scdliiiira horse to.niotlier
.md represeiitin;; him to lie ;,'i'ntle in harness and true tu dr,n\ wlim as a
matter of fact he was not. This would be fraud. The fraud may be
practised by one party upon another to induce him to make a contract ; or
by two or more persons to defraud a third party.
As stated above, a fminlulent contract is voidabh' but not void. Tie-
party who has been <lefrauded may void the contri'Ct if he wishes, or he
may affirm it and compel the other party to perform it. If he wishes to
void it, two thin;;s are neces.sar^- : ( 1 ) He nmst not accept any bmetit
derived from it. or coiitiiuie to act under it after he h.is discovered the
fraud. (2) He nuist ;;ive ])rumpt n(nice of the fi-aud after he has
discovired it. The dishonest party cainiot dis-athrm the contract, but in
all eases is liound to carry it out if the other party demands it. If both
})arties practise fraud, neither one can enforce the contract a;,'ainst the
other. A jiroini.ssory note obtained throujrh fraud cannot be C(jllecteil by
the party who obtained it, but upon comint; into hands of a tiiird ]),utv,
before maturity, for value, ami who did not know of th.' fraud, would be
v;ilid and i^'ood a;^';iinst the maki-r.
'Hi. Fraud by Insolvent Persons \n insolvent person n-pres. ntin;,'
himself as vi,l\. m in ni-.lrr id ulitaiii mio.ls on credit, is ;;uilty of a
fraudulent act. The seller discoverin;,^ it. may caiicid the contract, or
recover the iroods if they have been shipped. An insolvent ])erson need
not disclose that fact to a creditor from whom hr is jiureh.isin;; ;,'oods
unless hr is .|uestioni-d aj< to his tinancial st.-indin;:.
'i<. Fraud by Underbidders. I 'nderbiilders at aiieiion sales,
employed secretly to run up prices hiirher than the real value of the
articles, are fraudul.'iit towards third parties. A purchaser whose bid has
been f<irced up by such fictitious bidding; immediately prece(lini: his last
bid, inay void his purchase. If underbidders are employed, and that f.act
publicly aniiounced before the .sale, it is not fraudulent.' The owner nuiy
also fix a price below which the j^'oods will not be sold, or he may reserve
on«' bid for himself.
'is. Sellint? Property Obtained by Fraud. A p. r.son obtaininj;
;,'oods, or ii pt- is'^.iry iiotiv .T any other jiroperty tlirouj,di fraud, and
transferriiii; them to an innocent third party for value, trives them a -rood
title. ^
'Hi Statute of Frauds and Perjuries. This hununs Statute w.as
pas.sed in the tw.-nty riintii ye.ir <if the rei;,'n of t"h;ules II. of Ent,'land,
(■(.iNrU.UTS.
11
lIltiTrst 111
III rrnriiR'd
an.l Mill fxists th.To, in this country Jiii.i in tlir rnitcij Stiit.'s, with Imt
sliffht cliiingi'. It was di-sii;iif(l to prevent the lr.>|iient coininis.sion of
fruiKls an.l perjuries in re;;,ir.l to the' enforcing of o\<\ claims, iinil various
kin.ls of promises to answer for the <lel>t« of others, and pruvi.lin;,' thai
certain contracts liad to i)e in writing to bo binding. The toUowing are
the reiinireineiits of tlie Stattite wliich come within the scope of this work
as thiy have lieen varie<l by otn- statutes:
1. That leases of lanil for more than three years must be in
writing and under seal.
•2. Contracts for the sale of lands, or for any
lanils, must be in writing.
:i. Kvery agreement that by its terms is not to b.
within one year, must l)c in writing.
4 Kverj- s]iecial promise to answer for ilu- dilt, detault or
miscarriage of another, must be in writing.
."). Every agreement, promise or undirtaking made ui.un
considerations of marriage. e.Kce])t mutual promises to lu.irry
(engagement), must be in writing.
ti. Contracts made for the sale of persoii.al property, of .-?H)
and uiiwards, must be in writing, unless part or all of tlie goods
liave been delivere.l, or a part of the purchase price paid. In
(,»uebec, Hritish Columbia, Manitoba, North-W.st Territories ami
Newfoundland the sum is .S'.O, and in Triiice Hdward Island .S!0.
Eachof these ( li visions will be treat. mI In ai'imipiiate eliajiters.
:W. Agreement. There can be no contract formed without an agree-
ment cither e.\].re.ssed or implieil. As contracts are the basis of all busi-
ness transactions every man who wo\d<I guanl his interests should thor-
oughly understand what constitutes a binding contract, and what violates
it. In the .letinition of a contract it was stated that "a contract w.is an
agreement," etc., henci' what is an agreement ' An agreement is a intitiuil
iissi-iit — something to which two or more per.sons gi\e tlhir assent.
The two miii'ls meet. A contract therefore is composed of two elements :
.\ proposition, and an aciviitance of the terms without any change i^r
moditication. E.xamjile : Brown oH'ers Jones a Crown Jewel .stove for:#2.'),
and .lonew says, "I >vili aeci'iit your otter," or words to that eti'ect. This
constitutes a'contract. It may be done orally, or liy ' tter, or by a loniial
document under seal.
A Prop sition i- the Iji ginning of every contract. One person
mak. s an offer ,'f some kind to another. If the other accepts the
offer in the same sense as made, then there is a contract. But if in accept-
ing he makes any change in the terms, there is no contract. Example :
One man otlers to sell a horse to another for 1*100, cash. The other l)arty
says he will buy the horse but will only give !*85. This is not assenting
to' the proposition, but is in effect a new proposition. The parties failed
to (Ujrei. Any other change in the terms would have the same etfect, as
for instance, the second party wouM say to the first that he would accept
the (.tier I'Ut could not pay for three months. There is no assent here —
no n.utiial agreement.
12
CONrUACTS.
.$•,. The Assent or Acceptance nnist !„• thr mimjiIc aavi.tuncr uf tlic
projiositiuM withniit iitiy chiiii;,'o of t.'iins. In such case tho two iiiiii(lsiire
wuil (,, iii,M't, mill tli.T.' is iiiutu.il u.ss..nt, li.'tic' an a;,'iv,M.i('nt— a contract.
lili Time for Acceptance. An oral iiropusuion wliicli ,io,s not
uicliKlc any provision as to time c.-uscs when the parties separate If a
tinu' IS fixed f.,r acceptance, it must be pven within that time. An uec< nt-
ance may he given by an act as well us hv words, as in ca.se of all implied
contracts. Example: The wife or children purcliasin.r necssuries at i
store, the u.s.sent of the father is hn,>i:,:l and bind.s hin^ unless notice to
the contrary li.is ln'i-n ^iv.'n,
;U. Assent Obtained Through Fraud is not bin.lin.' on the partv
who was detrau,l,-,|. .Sucii a mntiael may l.r rrscinde.l by the inn'.cent
party, lait ]u- must .io so immediately after he di.scovers the fraud II.-
must a so refuse to exercise ownersliip over the subject-matter of the
contractor .accept any profits arisin;; from it.
»."». Assent Obtained Through Force is not bindin.' If assent
IS obtain,.! iU,-uu-h threat,,! bo.hly harni, iiuprisonment, o7 anv .similar
Ulej;al pressure, it is void, because under ,lans.. Hut a threat to dismiss
ironi empl,jyment unless a certain proposition were a-'reed to bv an
employe,, woul.l not be (/((n-.s,«, an.l a contract ij^ne.I umfer that kind of
pressure or Lire- woul.l b,- e<,'al.
M Assent Through a Mutual Mistake does not bind either
party, because there was no actual assent <;iven. E.xample : Cmnterf.Mt
money innocently ptussed by one person to another in pavment of a debt
and receive,! as payimmt by the other party w,,ul,i be no plivnient, becau.se
o th,. mutual mistake. It would need to b,. returne,] proinptlv, howver
alt, r the ,liscovery. There is but small latitude allowed "in law for
mistakes.
Ill Proposition by Mail. When a proposition is mad,' bv letter
the contr.iet i- .•l,,-.;,! wh,.,, tt,,. l.tter of ,accepta.i,-e is placed in the post-
othce. A {,r,, posit i,,n that does not prescrib.. anv time for accept!ance
contnuies vali,l until n-vok.-d, or until a rea.sonable time lias elans.^d b,.fore
ncceptance. An acceptance <riven by tek-rajih closes the con'traet when
tile mi_-s,s;|M-,. ,s dehvere.l to tin- eom[>;Uiy.
:W. Withdrawal of Proposition. A proposition may be with.lrawn
m^uie'vv' f;^'■^*Y' f^*-'!'*.'"'^;^' '"'^ '"■^•» K'ven. In ease a proposition
n..i.ie by letter ,s to be w.th,lrawn, the letter of withdrawal must be
rec.-ive.l by the other party before the letter of accei.tance is plmvd in the
poHt-office. otherwise it is too late. Witleirawal may be ma,Ie by i.-le-
-raph or by t.dephone, but the latter Woul,] not Iw .sale unless there were
a witness.
:W. Sufficient Consideration. This is a law term which laynu-n
who have n,n ha-l much 1,-al .xperienee are liabl.. to mi.s„n,Ierstand It
does not mean takui- sufficient time t,, think or c,jnsi,l,;r, but as a le,r,al
CONTKACTS.
IS
I
r
I
tfiMi it iiu'.itis the rettioii or indiimiifiit uimii wliicli the imrtics to a (.on-
tnict ;,'ivf their iissi-iit iiiul afrrue to he l)<)Uiul. In every biniliuf; cuiitraet
thereniust of necessity heii/','/"^ ninsidrration.iinA what tlie hiw .lenoni-
inat.'s 11 •'sutlieicnt eonsi.lrnition." It need not U' a nionetury conaidiTa-
tion, hut may Ik; sonntliiiit,' jjiven, or done, or j.roniised to be <riven or
done, hy the person niakiiif,' the promise. For tliis ,»«.sir/^/v(No» the
person "to whom tlie jiromise is ^iven eithiT u'ives .something;, or dues
something, or promises to fjive or to do something:, in tlie tuture.
There are various kin<ls of ronsiih, ■atiui,, iind as this is one of tho
most important fiNittins of a contract, several will here he enumerated :
■40. rood Consideration is one based upon natural love .and affec-
tion that exists Ixitween near relatives. Kxample : A father may de.-d to
his chihl a portion of his land, and it would he valid lie could not
recover it afterwards even 'f he desired to <Io so. A ■ pmiui^e to give a
deeil some time in the future would not he binding.
A father who is in.soUeiit eimld not through natural lovi- and allef-
tion convey to his son a portion of his jiroperty to save it hvmi his
creditors. A creditor atl'ected by such a conveyance may bring an action
to set aside the convevanee, an<f the property be sold to satisfy the claim.
A deed thus givei'i at such a time, with natural love ami atl'eetion for
a consideration, wiuld 1h^ set aside on the same jirinciple th.it a chattel
morti,'age \ ould be that was given on the eve of bankruptcy.
41. Valuable Consideration m.iy be either a bvnetit to the p.Tson
mak'ng the promise, or a loss to the person to whom the promise is made.
It ma\^be something of value given' or promised to be given to the person
makit'ig the promise, or an inconvenicice to the person '<j wlioni the pro-
mise iiT made. Any of these wotdd constitute a sufficient consideration
Examples: (1) A benefit to the proaiissor— A tailor i.romise.- to make
a suit of clothes f(jr a person for ?"20, or for one month's labor. (2)
Inconvenience to the promisee — A person might lose a gold watch and tell
another person he would gi\e it to him if he could find it. The loss of
time ami inconvenience exjierieneed in hunting for it would be sufficient
consideration to make the jiromise binding.
4'! Mutual Promises are a valid eousidi-ration if made at the same
time. .\l ,1 .litfrrriit hour, even on the .saiiif day, they would not be bind-
ing. Examiili' : Smith promises to dig a well for Jones, arid Jones pro-
mises to give Smith a certain carriage when the well is dug. < )ne
promi.se isli consideration feir the other promi-*,", and the contract is valid.
4:1. A Conditional Pron.ise is a sufficient consideration for a direct
promise, but the conditional promise is not binding unless the considera-
tion is complied with. Kxample : A horse is purchas.Mi for ?1 20 im tlie
condition that he proves true in harnes.s ; Iwtli parties are bound if the
condition is met. but if the condition fails the purchaser is frei' to rescind
the contract, that is. if the horse does not pro\ ^^ to be true in harness.
44. Gratuitous Promises, or promises witlu-ut a consider.ition. are
not biniliii", because there is no eouivalent given. Contracts without a
I i
I i)NritAri>.
cjm.si.l.ration a.v v.,i,J. If th.-re is no eo,..si,Jeratio., tl..re is no reason for
rniun.. th,. lulhh.R.nt of a t.rum.s... but the law .Iocs not, for then- has
U.en no e.,uivalent ren.l. n..l. Kxcept.ons . Instruments un.ler seal an 1
negotiate paper (which seel.
4r». Consideration as to Contracts Under S -al Contraot,s un.ler
n..ik..s i( tiiiMl. I hr seal itselt ,« said to Ik; a consideration.
4«. Consideration in regard to Negotiable Paper is prr.nnnnl
1 rom.ssnry „.,„■., .uveptanr,.. :„„| ..h,..,,,,-. „■ tl.,. hands of an innocent
t.on. With such paper consuleration is presun.od. and a thir.1 partv
...VM,;: then, before n.atunty will colLet then.. The party to ^^•ho .
i.ey were ^uen without vah.e could not collect them : neither couM thin
■art.es It tlK-y purcha.sed them after n.atu.ity. Aceunnnodation n es
and ae...!,t:,n.vs ar.. tl,.. nmst noted exan.j.les of this kind.
tin.. "*! ^"'"'^^'f'" Consideration. An a^r, .m.nt upon no considera-
tion, or .nsuthc.ent eons.denit.on. cannot be ]e;,Mll v enfo.'eed. Insufficient
coiLsideration, as a le;:al tenu, ,ioes not mean toc-'little cash or vah^ \
person mak.nfr a contract is left toju.l-e for himself wh.th.r he receives
a_.s„thc.ent value or not. If a person sells a hor.se for :?i'.. that is worth
*.-.(). or a;;.ves to do a piece ol work for ;?!.', that is worth Si5, lie must
.stan.l by his bar-am. The law will not interfen-
Ins.itHcient consideration can only b.. u.sed as a j.lea in cases where
a .s,.d by the Inmd or ... cases like the followin;:: A farm.r pro,ni.s,.s his
hne.1 men an addition to their wa-es in consideration of their niakin^r
e.vtrn exertions to fj-t in the mown hay befu.-e a thnaf.nin.- storm or 7i
%e»sel captain promises his sailors an a<ldition to th.ir hTxed wa-es i.'
ti.ey will make extraordinary efforts durinj; .i storm. In either cas.. the
promise IS ;,ratu,tous an-l not enforceable, the employees bein.r b u. d -
so ac m their res,.ect.ve serviec.s. A promise to pav anothers ' ebt
■ilnady inc.irre.l „, hke manner, is ^rratuit.M.s, and cannot be enforce.!.
48. Illegal Consideration is wh.re th.. act to 1... performed is f,.r-
hidden by law, as smu^rj^li,,^, ^„„„i, i„t„ j,,^ countrv, buying a l.',tterv
t.ck..t. publishing or selling immoral literatur... In' all sucl? ca.ses the
pa>-ty making tl.,. pn,n„s.. is not bm.nd to keep it. ,8ee Sees. IG and 17.)
wl,i,.|!*!,\"' ^°^^''''*' <^°"^'^.^'-3tion isanagreein..nt to perform somethin.^
..s , •'/ ^ :•'■'■■ ':■"'""■• " ""l--i''l'-'- ^^^■•■V">P1^' : A man might a.^e^
as the consideration ot .son... e.^ntract, to walk from IJutfl-ilo to Montr,.,-ri in
111! m'lTt' \ : """'■' I'rS'" '"^'•' ''y ''^"' "•'' '' ^^•""''' '"■ '■'"Po.ssible .
ull.lm nt. A man might, how..ver, agree to buil.l a c.rtain hous,. in
■ee .lays an, be- utt..rly unable to accomplish it ; still h.. woul.l " ,J
n u d "Kn iTT ,' ' ">'' '" P°'*^''^''^ '" '"^^- """ -'J "'«''^^''
I nougn ,11 iianu to pi.rbmn it.
CONTRACTS.
13
."iO Moral Obligation is binilin<j in honor, hut nut in law. Hiti- ii
wlnii' most I pii in;ikr llii'ir iiiistiikc wlio say that coinnton si^nse is all
tiiat :i man iiui-ijs to f;iiiili- him in law. Cuninion .sense will tiiich a
Hensihlo man what imjUt t<i he <lone, hut wliat th>- law will uml. rtakr to
I'nfori'i.' isiniitf a ilitl'criiit thiiij,'. I.f^^al ohlii^'atioii is oiu' tliin„' aii^l nioril
ohli;,Mtion is aiiotlur, ami sonictimos just the- opposite.
."•I Failure of Consideration voids the contiiu'l. Hxainpl' : A
p<^r.son a;,'riis to j,'ive #:i()0 i'or a certain interest in a jjateiit to manutac--
tnre ;;as ami afterwanis the jiateiit is I'otiriil to lie voiil. The contract
cainiot he enforced, and, if a note were <;iven, it cannot he collected.
Partial failure of consideration does not void the contr.u't. and the
other ])arty may obtain damages only for tiie ]iart tliat f.iil' d
7*'t. Who may Contract. Persons competent to contr.ict, that is,
tho.se who ciui I'lhd thi iiisejves in a contr.iet. include all persons over
twenty-one years of n^'e, and of sound mind.
Persons not competent t(j contract then are: .Minors, iiliot , insane,
and persons wholly iiito.xicated ; al.so Indians, who are rej,'arded ,is wards
of the ( 'rown
Tt'A Minors, called in tie- Uu ii.Kjks Infiints. .-ire, in Canada, all
persons, male or female, undir twenty-one years of ajje. In a few of
the States of the United .States fi'Uiales are of a<;e at eif,'hteen years, hut
not .so in Canada. The law in Canaila is very fair and just in refjard to
niint)rH ns to their personal lialiility for debts, .uid al.so as to their jiarents
or ;;uardians, and business men shuuM clearly understand it.
.■»4. Minors miy Contract for Necessaries. Whaie\.T things are
necessary lor him in liis .-^iiilion and condition in life he niay contract foi-,
if he is not livin- w ith his parents or j^uanlians, who are able and willini;
to support him. .Minors not at home, ami supporting themselves and
collecting; tlh ir own wa^es, do not bind their parents even for necessaries.
.\ minor ])Urch.isin.,r anythin;; held to be ji necess.irv for him in his station
in life, and refusing,' to pay for it, the merchant from whom he puichase<l
the article can sue and recover from him as thou;;li \v \\ereol' a;,'e. If,
however, the parents should sometimes pay ]iart of tli,. minors bills fur
r.ece.ssaries, tiny also become liable for the whole of tieni. .Miimi-s n'lt .it
home and snpportinij themselves, may sue and ri'cover for waives carneij
by theni.selvi's no matter how youn;; they are. They are also liabh; for
any damaj^'e done or wron^ connnitted by them ; also for any criminal
ort'enee. \Va;:es of minoi-s may be ^arnishced in payment for necessaries.
TtTt. Necessaries for Minors ai-e usually reckone<l board, clothinj,',
education and nieiliial attendance, unless unincessary talent is called. A
suit of tweed clothin;; for a son of a mechanic, or any person in a similar
station i 1 life, would be regarded as a neces.saiy, but a fur overcoat or •>
gold watch would not be. A fur coat or a golil watch might be held a
necess.iry for the s.m of :\ pidge or bank ni 'nager.
.■i<». Luxuries for Minors would be anything btyond what th.- Law
classes as necessaries. I'cn- anv sueh article bought on account th<>
16
t<iXTI{A<TS.
i.KTclmnt cannot c-nn,,., 1 tl,. minor to p,ty ; if. l>ow..v..r, tl.c ori-Hn-U ,.k;<1s
are „. Ins possesMon, ,l„. nuTcLan, hu.s-.lu. pow.r to repl.-v; n f uko
th-ni liiu k. Imt h- cmnut tuk.- tl.cni hiuis.'lf l.y force.
.".: A Minors Note, Kiven ..ven for nm>ss,iri.-.s, cann<.t l... coHw-t,.,!
il a nwrchant ^i>oui,| .Imn.v to tak. sucl. a not.- for ...cissari^ '^^^^
no. s„. on tlu. not... la.t !.,• coul,l l,ol.| the note until nm™
su.- on tl>.. o,„.n account, an.l pnM.nt the note as evi.lence of tl e e t H
coul.l no sn..unt.l the note n.ature.l. as that wouM h. th/ut ..,,,•.
p::;:;;...,;:^:::;:; irp,;";;""'"-- - >•- '-■ •■•• --<' -&
.-,S A Minor as Agent. .V muiwr muiv act .us a-^ont for another
..■n.,n .n any capaoty, an.1 hin.l his princi.^U in ccntrilc^,::!.;' 'his
..'halt, l.ut a nnnor cannot appoint another person as a-ent to repr se t
h.n., hecutse the other party coul.l not hin.l the minor in a contr ct anv
n.i.re than tl,,' ,mii.,r eonl.l l.in.l hii If tontiaci. an>
.-,;» A Minor May Ratify His Contract. \Vi„„ a minor con.-s of
;:ji:i hin:;;;:^'^^^' :;::;:"";^-' ■-';■ '"•'•-•. a,e,an,i thus n.,:k:ir;;i
an.l r.in.liMir. I h.- latilicatiot. mu-t he ;n writinj; to hind hin>
::;;:,,:ris\,i:;^,rrr™;!;™.j'lii;t™;,i:"Tu '^^'"'■''''■■-r
<»1 Parents Liable for Minnrc wi ;i .1 • .• •
.stand the nature an.l eHl.ct of a cntract '" ""'''
«» Lunatics. I'ersons who haw l„st their r,.LM,„ ,,■ , .■ .1
incomp.trni tu eoiitrict Hnf „mI \\ .'"•""-"." ■;^"" '^i'' iH'i'iilestlv
rONTKACTs.
17
Were "li'iilinj; Willi ii p. is, m tMiiiint' iii in i-ciitiact. Nu ji.istm liiit tlio
lunatic <ir hi.s l<';,'iil re|iris«'iitjitivcfi can voi<l ii contract that lie lias nindo.
Contriicts for i|fce'<snrii-s for him tlie law huldH t)in>lin{;.
W4 Lucid Intervals In some cohus of iti>anity, i>«rsoris have
ititfi-vals liurin^j which they an' ]><Tfi'Ctly sanr. TlifM-'art- calloil lucid
iiiti'rvalH. Mini ci II tracts inadi- duriiif^ sucli periods are hiiidinj^.
<»."» Drunken Persons. A person iiutpIv stroni,'iy under tin- inllu-
eiii'i' of lii|Uor is iKjt lc;;,illy, allhuii^h lif may he morally, iiiconipeteiit to
contract. To W- relieved from liahility on a contract he may have entered
into, he must he wholly intoxicated, .so as U) he unahie to use his reason.
I)ruiikeiiiH"is will not nliev i. from criminal provirntion
0<». Indians. Om Indians an- u.uds i :' thr ( rown, and thus pro
tected from fraud and deception iiy liein;; {)laced in a similar position to
minors, and rendered incapable of hindinj; themselves in a contract. A
jierson who makes a contract with them is hound, hut the Indian is not
hound, not e\-cii for neccs.saries
<»7. Alien Enemies. Aeconlin:; to Inti-rnational Law, all lommerce
between two nations at war is suppre.s,sed and contracts renilered illegal
and Void.
iiH. Requisites of a Contract. I'lom wlmt has lir,n ;^'i\.n, the
rei|uisites of a valid contract may lie summeil up as follows: 1 It n.ust
hr possible, (2) It nuist l>e lerjal. (8) It must he maile by persons who
are competent to contract. 4) It must be assented to liy each anil all the
jiarties. (5) It reipiires n consideration, except for those under seal.
((> It must be without fr.uid. (7) Some require to he in writinj;, and
soiiir un' r scil.
<»!►. Drawing of Contracts It is tru.' rconomy to h.nr all im-
[lortaiit coiitivict-- ilniwn l^y a careful lawyer, or other experienced person,
liut tlierr .ue iiiuiiy minor matters that should lie submitted to wriiiuj,'
that may U' done by any ititellij^ent layman. An : in all ca.ses a man
should know himself when he reads over tli>' written instnnnent whether
it is ri;,dit or not, and whether it contain-- th,- whole a;;rei'nieiu or not,
even thoui,'h he employs the knowledj^e and skill and exjierietice of a
solicitor or comndssioiier to do the actual work. In drawin;,' up a contract
it would be well to oh.serve the followiiii,':
Be very specific in namin;,' all the terms ainl coiHlitious of tlu' agree-
ment. .State accurately the naiiu^s iti full, residence and occupations of
the jiartiis to the contract, and the ditierent promises each one is to per-
form. If .[ p( .-son has se'-eral Christian names, include them all. A
j)er.son who has no trade or profession is usually called a ";;entlcman" In
jjivinj; the residence of the parties the smallest nninicipality must Ik'
mentioned, as a township, or villa;;e, or town, (jr city, thi-n the c<niiitv aiiil
lastly the Province.
The person ar^reeing to d(j weak or to sell an article is usually called
" the party of the first [)art," and the party payin;: the money the " party
of the second part," hut there is r.'ally no dirt'ercnce which comes tjrst.
IN
CONTBACIS.
10. Signing of Contracts The iiiKti'uiiKtit mIkiuIi] Imj Hi<;ii)'il in the
proHitice ol II ilisiiif.r.Mti'il witmss, IT tlio iiistniiiii-iit Iuin iilninly licrii
Mi;;nf(l it will ln> Nutlicii'iit tor thu jutsdh to «(7.ii<;«7»'./y. \i\» sij^Miiituri' in
till' pri'soncf of the witncsH. Snuw rt'i|uiri-' to Ih- iiiuler moiiI.
Ill nil ilocuiiH'iits to Ih' rcgistori'ii, iw (li't'iix, niort;;ii<;t'Muii'l hills of sale,
it is neco8t(uiy for tin- witiioHH to verify his witin-ssin;; uiiil sii'imturi' bv
ftn ntli'liiN it. which is writt''i» on or iittiichcil to tin/ dociniifnt.
11. A Seal shotikl lio |iliicc'il on till importiiiit contnictH. Kwu u
church siihscription. or ft promissory noti- "Iniwn to run si'veriil years, is
Ijftter to have a scpI iittiiclu'il. It makes theiii j^imhI for twenty veiirs.
Anythin;; stu k on after tin- name will answer for a seal as'well um ti
rej;alar seal Ixjuj.ht for the puriiose. When any ilevici- is priiiteil or
written after the name or the usual letters " L.S." the seals may he put on
any time afterwanls Frojierly the seal shouM he t<iucheil liythe person
si;;nin;; hia name ami acknowli-ilj^eil to K- his Neai. In acknowleil;;int;
the seal, whether it is put on l>efore or after siKimture, wonls sonnthin;^
like the followin;; may Ih- used : " I acknowledjre this to he my liaiiil an<l
seal." Some persons after sijininj; their name will with pen and ink put
their initials on the sen!, thus practically ideiitifyin;; it.
All corporate botlies and joint stock companies are recpjired hy law to
have a corporate seal, which the officers must attach to or impress on all
contracts siynetl hy them in order that they may he Ijindin^on the corpora-
tion or company.
All instruments under se'l are good for twenty years, except a mort-
fjage on real estate, wliuli ' '
payment.
t'i. Signing by Mark.
atlaws in till wars after ni;iiurii\- Ml- liust
.V
mu.-'l i-i'ij(iist .sDUie othcl
illustrate the usual fcjrm
jMf^iin
I'.irty ('
usual f(jrm
Witness: l'ii.\i:i.Ks .Scmmkus.
wh.
It I'.
I caniint
■r liiiii
si::n
Tli.-
W.
nil iiw n iiiuiH-
fiillowin;,' will
Mm
X Wl.MK.ltS.
n'tirk
A tlh- pill whilr
hi.s r\\ n ero.ss or
a witni'ss to the
A i)erson .sij,Tiin^' hi.s name thi.s way in.Hy take li.l.l
hi.s name is heinj; written, or he may not . he may make
he may not, just as he wisiies. There must, however, he
siirnaturi-,
I'.i Reading and Explaining. When a i«r.sun whu e.innoi ivud
is e.xecutinj; im instrument, it isrei|uired that it U' read over and explained
to him in the presence of the witne.s.s so that he may fully understand
what he is doin<;. The witness in si^minjj such an' in.strunient should
mention the fact in some such words as the fullowin;,': " Si>;ned, .sealed
and delivered, after fir.st haviuf; been read over and explamed, in the
presence of, Ch.vulks .Sr.MMEits."
74. Erasures and Corrections. If any such should hecome neces-
sary to make it should he done hefore the document is executed. In
making tlie corrections do not use a knife or ruh!)er, hut simply draw a
line through the words with pen an.l ink so that the original words may
be clearly seen. Then write the correct words hetween the lines, using a
c.iret to show where they should he read in. The witness should putTii.s
tllMUAiTS.
i:»
iiiitiiils .jri til.' iimr;,'iii opixwitc .-very siu-li rnnvctioii or iiitoiliii..ntion ah
.•viil.iiPf ilmt they \viv iiia<i.- h.f..iv th.- ix.'cutiou of the docuiiiont.
?."». Various Sheets Wlien u document in written on more than
oni- ^li.rt th.y shmil.l W laMrncl tc .j,'fth.T luul pa;;.'.! before lieini; sii'ii.'.i
home who are extraonlinuriiy I'urnmi will use a ril.lxm ami put iiMenlover
the tie of the riWx)n. The witn.sM Mometiin.s places hi.s initials on each
Nlieet ami iiienticnis the nuniln'r of sheets with his si;f|iature.
115 Various Documents Wlun an a;,Teement is compoHed of two
or imnu sep.uut.' lioruii.ehi.i they are usually marked with the letters of
th.- alphnlx't as, A, B. C.eU-., an.l referred as sch.'dule A, sch.dule \i. etc.
hxai'ple: Coiitriiets for the erection of liir;,'e structures are usually
accompanied hy j)Iiu).s and speciticationH mark..] A, H, etc., which are
ftttaeh.-d In and furin a part ot the a;,'reeiii.'nt.
11. Interpretation of Contracts. Alth<)Uj,'h it is supposed that
parties entering,' into a cntraet fully uiiderstuti-l its ti-rms, lui.l will use
lan;;mi;,'e in expre,ssin>,' thum that will explicitly f;iv.' their iiuaiiin.' vt
It often happens that such is not the ca.s.- : h.-nce crtaiii rul.'s have"i.een
adopted to interpret th.-ni when aiiil.i;,'iiity ueeurs. Th,' foll,,\vi,i.r niv
those of clii.'f inipiirtanei'
\. TilK I^■T^:^■TI.>^• of the parties at the time the contract was nuvle is
consi.ler.'.l, ra'Jur than the lit.'rnl m.vmin^' of the wonls.
2 CrsTo.M .\\i) rs.\.,K..f tlint jiartieular busine.ss and j.laiv uill !„■
re;;ard.'d where th.' w.jr.lin;,' of th.' eontraet is doubtful.
:i. Thk tk. hnic.U- Wouds ami phrases used will be Lriv.n the mean-
ing; in which they are empleye.l in that partieidar busin.'s.s.
■*. VauIATIONS HETWEEX W111TIN(! AM) I'lU NTINVi. Wlii'Ii me part (if
n contract is written and auotlu'i print. 'd, if th.'v disuirr.'.' t'..' .vritt.n
portion will lie accepted,
'). LiHKKAl, co.s.sTurcTiox. Wli.Te the Wording,' of a eontraet is
ambi;,'uuu.s, it is a nil.' of th,' courts to con.strue it liberally, s,) as to ^dve
effect to th.,' common s.'nsu of the a;;re.'m.>nt, I'ven somt'times r.'j.ctin.'
ob|ecti<mabl.' claus.s ami supplyiiiic omissions. But where the St'itutes tix
a .l.'tinite meaninu' to wonls, they will invariably be construe.l in that s.'nse
0. 'Jo.vsTULVTioN- AS TO TiMK. When no time is mentioned in the
c.ntraot tor its executi.>n. tbe pre.sumption is that it mu.st be don.; at once,
or 111 a reasonable time, an.l tlu' courts will .so construe it. iicconlite' to the
nature of the work to be done.
7. COXSTKUCTION- AS T. ) I'LACK. Th,' law of th,' place where the
contract is ma.le jjoveriis its v.'di.lity, an.l if it is to be perform,',! there
als,^ It will govern its interpretation. If it is to be p,'ri',.niied in amither
•rovince or country, it must be in acconlance with the laws of that
I rovince or country, ,itlierwise it is void.
IS. Completion of Contracts. The eh-nunt of time is an important
i.-ature of all contra.ts A cntractor not completing his contract within
the time sp.'Cifie,! is liable for wdiatever damages actually occur.
In ca.se3 where no time is fixe.l lor the completion of a contract it
must be pi'rform,',! within a " reasonable time," accor.ling t,) tlie circum-
stances, which, if not mutually agreed upon, would be for the court or
judge to detennine.
20
C()NTIIA( TS.
in. Cancelling Contracts. la mms wIutl- ;i ]ni'son 1ms l^ecn
imlucfd tlirouj,'li t'rmul. i^r falschoocl nr misri'prfsentatioii of any kind, to
eutei into a contract to imrchasf land or any kind ol' personal proja-rty,
he can repudiate the contract or liarjjain, and if he has paid money he
can ri'cover it. But he must act as soon as he discovers the fraud
and restore or offer to n^store t'le property in the same ronilition it was
in whi'.i he received it. The fraud or false representation must he of a
material natin-e and actiuiUy deceive.
A fiurchaser who wouM rescind a contract must tje in a position to
restore the property. If he treats the projierty <is his own (more tiian to
care for it) after di.scoverinj^ the fraud, he cannot afterwards return it and
recover his money. If a portion of the ;;ooils were used before the
discovery of the fraud it would be for the court to determine the value of
the portion used.
so. Breach of Contract is a I'aihire to do what was rei|uired, or
thedoini; of what was forbidden. Jl is necessary to have a clear idea of
what constitutes a binding; contract in the particular ca.se beini; considered
in order to know detiniteiy whether there haa been a violation or breach
of contract. Study tliis whole chapter well.
Ml, Remedies are the means which the law provides fijr the
enforcement of the rights created by the contract. Remedies are divideii
into two classes — civil and criminal. The criminal are for the punishment
of crime and the protection of .society, and are dealt wit' by Government :
the civil belonir to the indiviilual and enable him to entorce his personal
rights and ol)tain compensation for his private wrouifs. His I'emedy is by
suit for clamai,'e.s. There are different cla.s.ses of dama;;es: (1 Compensa-
tion for the actual loss sustained. (2) Nominal, wliere the failure to
perform the contract is not rej^arded as intentional but merely throu;,di
inability to do so. i'i) Lii|ui<lated, where the amount is previously ai,'reed
upon in case damages should be awarded. (4) Speculative, where the
profits that would have resulted from the performance of the contract
can \)n estimated, they may be recovered. (5) Exemplary, wliere for a
malicious violation of a contract a sum in excess if the actual loss is
awarded as a punishment.
H'i. Injunction. Where a person is doin<; something he contracted
not to do, or is infrinijinjj upon the rights of another, an order may be
obtained from the court restraining hiir from further action until the
ci'.o has been legally acljudged. This order is called an injunction.
8;t. Place of Suit. In ca.se of trial for breach of contract, the place
where the contract is made is where the auit will be tried. Contracts
made bj- letter have for their place where the letter of acceptance was
signed, hence there the suit should be. The place of contract in regai<l
to real estate is where the real estate is situated. A note not made
payable at any detiniti' place would be sued where it was dated, but if
payable at some other place, then that woulil be place of suit.
Goods ordered or soM from store or warehouse and taken by pur-
chaser or ship])ed from there, would have that ])lace for place of suit.
But goods delivered by a traveller to the retail dealer, the place of suit
would be there.
CONTKAUTS.
21
lliit Section So of the Division Court Act of Ontario aays : "The
action may hf entered an<i tried in t!ie court nearest to the residence of
the defen(huit, irresjiectivt' of the place where the cause of action arose,"
and tlie same perndssive jxnver is i^dven the courts in ail tlie Provinces.
Therefore suit may l)e entered eitlier where tiie cause of action arose
or in tlie division in wliicii t!ie defendant resides or does Ijusiness. If
tried where the cause of action arose tiie Judj,'nient iii.iy still lie executed
where the defendant resides (vr h;is priipeity.
H4 Contract to Build a House.
To More fully illustrate the opeidnj,', closini;, sifjuature, witnesses and
{jeneral wording; of a contract the fi)llowiii;( a:,'reenient for huildini; a
house i.s ijiven :
Aktici.Ks ok .\(;uKt;.MK.\T made and entered into on this "Ulh <lay of
September, A.l). 1900, between James Henderson jf Toronto, and Charles
Stunniers, of St. Catharines, it is af,'reeil in manner and form followinj,', viz. :
The said Charles Sununers, for the consideration hereinafter men-
ti<jned, doth foi- himself, his heirs, executors and administrators promise
and aj^ree to and with the .said James Henderson, his heirs, executors,
adniinisti'ators and assi^^ns, that he. the said Charles Sununers shall and
will, within the space of four months next after the date hereof, in i;ooil
and workmandike manner, ami accordini:,' to the best of his skill and art,
at Lot ti JJeiiisou Avenue, in the city of Toronto, well and substantially
erect, build, set up, and finish one house or me.ssuaije according to the
plan or draft and specifications hereiuito annexed of the dimensions fol-
lowing, viz. (state the iliniensioiis ) and to compose the same with such
stone, brick, timber, and other materials as the .saitl James Hendersor. or
his assigns shall jirovide and rind for the .same. In consideration whereof
the said J.imes Henderson doth for himself, his executors and adminis-
trators promise mid agree to and with the said Charles .Summers, his heirs,
executors, administrators and assigns, well and truly to jiay, or cause to
be paid tuito the siuM Charles .Snmmers or his assigns, the .sum of three
thousand dollars in l.iwful money of Canacla in manner following, that is
to say, the sum of one thousand dollars when the stone and brick work
an,' completed, and the remainder, two thousand dollars, thirty days after
the work shall be completely riiu'shed, and also that he the said James
Henderson, his heirs, executors administrators or a.ssigns ."hall and will
from time to time, as the same shall be ie(|uired at his ,uh1 their own
proper expense, rind and provide all the stone, brick, tile, timber, and
other materials necessary for making and building the said hou.se. And
f( r the performance of all and every one of the articles and agreements
above mentioned, the said James Henderson and Charles Summers do
hereby bind them.selves, their executors, administrators and a.ssigus each to
the other in the penal sum of rive hundred dollars rirmly by these Presents.
In witness whereof the saiil parties to these Presents have hereunto
.set their liands and .seals the day and year first above written.
Signeil. sealed and delivered ^ t tt .^
in the presence of ' j^''^'' Hendeusox. #
F. E. MisENEu. I Chahles Simmers, ^j^
22
<;u.MU)i\(; A<!\ivsT iiiArn.
(llArTKK 1[
Ca'AHPfXC ACAINST KIIAl l».
•o
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N.V TliL- itiiierant .swindka- is
oporatitij,' soniewliere, in .some line
iuv.a^-s
Every
Ollrlnv to
Mil' ser-
cliiss in the commuiiity lias tlii
Wiitcli aj,'ainst.
The folbwini,' su;,';,ffstii)ns iii,'i\
vice to tanners particularly :
1. Never ;rive money or a note, excejit
it he to a well-known tirni. initil tht' ni'ticle
purchascil is in your possession aihl I'lHiud to
he according,' to ajfreenicnt.
2. An article or a machine havinjj heeii
orleriil, which, upon arrival at the fr ■i;.;ht or
express office is fouml to be 'lot accord'iiij,' to
agreement, should not he received. Ol' oul'se,
il' the article is according; to contract . must
be received if <lelivered at the place and time
a^reeil upon ; but if not according; to contract
the article should bo refused, and payment
therefor cannot lie enforced.
3. Always take a copy of every aj^ree-
lu'iit that is made in writinrr, or any order
;,'iven for machinery, <,'oods, etc. Tlie a<,'ent
should siijii the companj-'s name, toj,'ether
with his own, to the copy you retain, which
should also be marked "cojiy."
4. In dealinj; with an a;;ent. or au\- other
person, where a written contract, ayveement,
or note is made, be assurecl of this, that
nothinj; but the written florii„i>-,if will Ije
considered in court. No matter what el.se
the other party promises in addition by word
of mouth or even in writini,', if on a separate
paper or not referred to specially in the
written contract as a part of the contiaet, it
is utterly worthless.
5. In <lealinf; with the aj;ent of a stranjie
firm, never si(,'n any lenj,'th\- document jnir-
portinj; to be an onler or a;;reemeiit, as such
documents have been a fruit ful ^ource of fraud.
S«J. Swindling Note. Tlie form of
swindhnf; note shown on this paf^e, which is
made by simply cuttin;,' oti' the ri<,'ht hand
end of what was sup])ose<l to lie simplv an
ajj;reement to sell six iian-ow>i. to be paid Un-
<jl .\|:I>IM: AliAlNsr UlAl II.
23
.-iftcr tiny were soM, is an
old oiif At'lrr the end is
reinoviMl ami iIr' witru'ss'
name at tin.' liottmii is cut
(iir. it is a ri'i^ular iinti«
which coulil be sukl tn any
person who knew notliin;;
of the swindlr, and Ky Ur-
ing thus Iransl'eiTed Vi an
innocent liolder for value,
it would be coijectid. 'I'lie
swindle does not always
take this form, hut ,sonie-
times the note would lie in
tlie middle of a slieet, and
by cuttin;; away the top,
bottom and sides, a regular
form of note would be left.
This illustration, however,
is enough to put thought-
ful jier.sons on their guard
against aU similar forms
of trickery.
If an occasion should
occur when it wotlld seem
ilesirable to enter into an
agreement requiring such
an instrument, it should
not be signed except in the
presence of a witness. Even
then, instead of signing
tlieir piinti'd forms, it
would lie safer to write
out the agreement on plain
paper,
S? Note Preventing
Fraud. 'I'li.' form ol ii.itr
shown on this jiage is the
best protection against the
frauds ainl swindles that
liavc cauglu even the
shrewdest of men that can
be devised. In purchasing
a machine or any line of
goods from a strange firm
without opportunity for a
suftieieiit test, write out
such a note as this on plain
]iaper instead of using their
blank.s. This note is valid
and can be collected as
well as anv other form
^5 \
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24
<il AI1\M\ AM) ^IHETYSHII'
l.rovi.l.Ml there IS n.) frau.i, Inu if then^ is tnuul in comi.-cti.m with the
tmnsactiou, it cmld not i... oollected. It is made noii-nej;utial,le. so that
the payee cannot transtVr it to an innocent holder forvahie to he collecte.j.
It can h- transferr.'d hy assij,ninieiit. hut in that easf the purchas.-r does
not fret any hetter title to it than had tiie ori<,'imil hoKhT, hence the maker
IS sate. The words •■ and not otherwise or elsewliere • are not ahsoliitcK-
necessary, liut (like the words "value received") it is hetter to use then",
as th..y are evidence that tlu'iv was a decided intention tliat tlie note
should not he transterred.aud that it should not 1)0 pavahle at anv other
l>lace than tin- one specified.
fH.\i'Ti;i; III
GL\\i;\NTv .\M) >n;i:TVsiiii'.
SH.
Guaranty or Suretyship i> a promi.se of one person to another
to answer lor the drht. default or misearriaj,'e of a third party. According'
to the Statute of Frauds already mentione.l, all such promises must he in
writnij,' in or-l.^r to hy I.indin;,'. An oral <,'u--'.' ee is worthless in such
cases.
The utmast can- must l.e observed in n . i * ) this featuiv of our
aw.s. In many cases nothiiii; hut a simple ivcomm. ndation is intemled
hy the person niakiui,' it, while a rei,'ular ;,'uaraiitee is understood hv tlie
other [larty.
These promises usually fall iiu.ler one or oth.'r of nv,j forms : Wh.it
mav l)e called an ahsolute promise and a con.litional pronii.se. By a par-
ticular wordiu'^of the promi.-e it is only a conditional promi.se to pav in
case the other party fails to do .so, and then it must Ix; in (ovV/,,./ in onler
to he hindiii- Tliis is a ca.s.- of answering,' for the d.'ht or default of the
dehtor and made hy mere wcjrd of mouth is worthless. But liv a sli-ht
chanjre in the wonliii;; it l)ecomes an ah.solut.,' promise to ])av the deht
hinisell. in which ca.se the -uarantor actually takes the place of the del.Kjr
In case of a deht just iM-iui; create.! as, for instance, Imvin.r .^oods at a
store, this promi.so is Kiudiiiir if onlv "/•-//, ami tlie mercliant"has a ri'dit
to and should char-e the e^uaraiitor diivct lor the iroods instead of 'the
l)erson receivin^^r them.
The following; illii.st rat ions will mak.' the distinction clear:
H!». Example of Binding Promise. A person ^^ovh with his hired
man l.i.-i -t..ivand -ays to tlie neichant, ■ (!ive this man jroods (to a certai"
aiiiounti and I will se.- it i)aid," or " I will he re.spcmsihle." This is virtu-
ally telhn,' the merchant to char-e the ;,'oods to him direct, and con.se-
i|Uentlyis not "answering' for the deht of another," hut is an ahsolute
promise to pay it himself. .Such a jruirantee does not need to he in writ-
ing: to i)e hmdinj:. It is the same as savinjr, " Charge the <^w,U to me "
or " 1 will pay for them." It i.s his dehf, althou^di for the heneHt of his
servant. Such a promise made hv word of mouth is hiiidin<T for anv
anvunt under S40 in Ontari... X,w lininswick. and X,)va Se.ltia (ScV
Sec. 31 (J.)
(irAl!\NTV ANh ^ritKTYSim-.
25
In this case tlie incrcluint slioiiM cliiir;^'!' the {joods to tlie person who
yave the order, the ;,'Uiiraiit(>r, althouj,'h it is expected that tlie person
receiving; the <;oods will pay for them. But if he does not do so the
niercliant l(H)ks to the jjuaraiitor only, hecause he is the princijial <li'l)tor
and not a mere surety. His <jral or verlial autlujrity to char;;f the j;oods
to hiiii is Millicjiiit tn liiii'l liiiii I See following Section.)
!>0. Promise that does not Bind. An example of what may be
called a "con<liticiiial pi-(imisf '' : Siipposinj| lie were to say to thi' merchant,
"(.iivc this man ^joods up to (namiiii; the amount), and if he d(3es not pay
you by such a time (namin<; a date> I will my.self," or " send the bill to
me." This woukl bi- worthli'ss spoken by woril of m<juth, for it is
answering for the debt of another, ami utterly voiil unless put in writing.
Even if there were witiies,ses it would still be worthless. It leaves tiie
debt on the oilier party, the guarantor only agreeing to j)ay in case the
debtor fails to do .so. Every form of wording tliat may be used where
this is the ca.se is utterly useless, unless jMit in writing.
Suppo.se again that Smith owes Brown, anil Brown tells Jones tli.U il
In.' will become responsil)li' for the debt he will let it stand, and Jones
replies, "all right, give him time, and if he does not pay you I will," the
liruiiii'-" Would nut lie liindiiig uiili's~ put in writing.
lU. Letters of Recommendation, (ireat care slKjuld be taken m
the wording of a letter of recommrnd.uion where financial obligations are
to be created or l)usiness relations formed, if nothing but a simple recom-
mendation is inteudeil. All such phra.ses as " Ke is gooil for them," or
naming a certain amount and saying, " lie would be safe to that extent,"
etc., would constitute a guarantor. The lialiility may be evaded by
modifying sueli expressions by, " 1 would regard him as safi' " for such an
amount, or " I think you would be entirely safe in giving him creilit " for
such an ninoUMt, or "I would trr.st him," or "I think you could trust
him," or " he has always paid me," etc. With any such modifying phrase
very nmch may be .said to the credit of a worthy person without being held
as a surety. Such words spoken by word of mouth would not incur any
liability except it could be shown there was an element of fraud in tlu-m,
that they were intended to deceive. It is not safe, however to use them
even orally without the mollifying terms here mentioned being employed.
ii'i- Consideration for Guarantee. Guarantee is a contract, and
like other contracts rei|uires a ,■:,,, snl, nitinii to support it, but not neces-
sarily a tinancifd one (.see Sec. 3(*). When a written guarantee is given
it is better to express the r(>)iii<J<'.riit!()n, although not legally nece.s,saiy.
It may be mendy nominal as Sl.OO, or the actual '''//i,s/'?( )'<»//!'u» amounting
to the full value may ]»■ expressed. (See the three following Sections.)
!>;{. Guarantee of Debt Already Incurred.
In consideration of One DolLir. the receipt of
'i.ereby acknowledged. I guarantei^ that the debt of On
and Twenty-live Dollars now owing to James Forsyth
Johnson shall be paiil ;it maturitv.
Forest, Aug. -imh, 1900. " ,,, ,
which is
Hundred
>v Henrv
26
• .lAHAMV AM) M HirvsilllV
This fru'irant.o micrnt W- ml.lresM.l tu .lanu-s F..r.svtl> .nerfly in the
abov.' " with'>„urs iTs,H.(.tf.,lly;'\.tc., or mmle ns
*M Guaranteeing Future Purchases. This is what wouM l,,-
caiii'<l a '■ci)iitiiiiiiii_' ;:iiar.ihtii-. ■
TuuDNTd. Au^'ust 31st, 1900.
In consid.ratiun of Uni' Dollar, 1 h.ivhv "uarantoc- the
payuK-ntof all jjoods purclm.se.l hv .Inh,, Dilluir iVoni Ailml
iTofinan .hiring the rci.nin.ItT of thr v,-.n- IHOO sai.i i.iiirh'is.-s
not to excoLMl One Hundred an.l Fifty JUlars.
Walteu Jones.
This^riuinuitr,. mii;lit he exhausted in a sin-le purchase, or durin.r
the tirst month, or hy nu.norou.s purchases durin- the whole period U,
tiantiary 1st. ll'OI. '
JK"». Guaranteeing a Horse.
BEitt.rx, August :il.st, 1900.
In consideration of ,Suventv-Hve Dollars for a hay horse I
herehy rrnarantee him to ho only four years ol.l, sound, .luiet in
liarne.ss and true to draw,
.1 \MKs S.MITH.
!M;. Guaranteeing Negotiable Paper. Where hills are subject to
proty..t ,i,:.e.\i„.,,se,„av 1 ,e .,ved and i-i'otest rendore.l unnecessary bv
the indorsee wntmj,' a torni of guarantee on the back oyer his .signature, a^
For v,i/ar realveill henhn ;t„„nnita- fhr paiimevt of th<-
U'lt/iin not':
.fAME.s .SMrnt.
In thisease the -uarantn,-. .Jame.s .Smith, is liable as s,m,„ as the note
matures, u it is not then paid. Another form :
For rolar mriffil, Ilonlnf <jnitmnter /«( »/«,e/// of t/n ,r, th-
in nob', ami v.u> i-t jn-ott'nt and notice of protMt.
Jame.s S.\inii.
Sometimes they write: /„ .:.,,.:. I, roilon of one dollar I Ion hi,
fHoiranffr, etc. •'
Another form :
For value received, I'herehy ./aaronffe the collection of tin
unflnn note.
James .Smith.
In this case James Smith i.s not liable until an attempt to collect by
lerral i.roeess has failed. ' •
i*'i. Guarantee Insurance. There are eompanies that -uaraiuee the
lone.sty .■ind fidelity of j.er.sons engaged in respon.sible positwns as clerics
Ijookkeepeis or maiia^'ers in any m..neyed institution or corporation.
A eomi.any receiyiiij: a clerk under such iruarantee must not chaiie-,.
IMS employment from that for which his Kdelity was ^cuaranteed, as that
\vould be a breach of the contract and relea.se the "■„araiitor
(ir.MtAMV ANU SIKKlVSlltl".
27
I'rivftte indiviilu.'ils ,il
iini-liine;
^niamiitri- tlir fidelity of a elcrk
J»S. Form of Fidelity Cond
IknOW all ni>Cn Ln^ tbCs3C IPlCtrCnttJ. That w, llmry A. Stono.
of the Town u\' Wilhiiid, in tlu; ( (lunty of W'ullaiid, I'rovinco of t)ntiirio,
VKiokkociier; liolMi-t K. Dutf. of llir 'Tow nship of I'elliMiii. in tliu >aid
County, faniior, and Ediuuiid Miller, of the Township (jf licitie, in the
said County of Wellaiid, fanner,
_ Ar^ held and finnly l)ound to the Ontario Silver Co. (Limited), here-
inafter calleil the Company, in the sum of Three Thou.sand Dollars, to Kc
l)aid to the said Ontario Silver Co. (Limited) and their a.ssii^n.s, for which
payment, well and truly to he made, we hind (jinsfh es and every of us
and every two of us, ami every of our heirs, executors and ai'.inini.strators,
and the heirs, executors and administrators of every two of us, joiiitlv
and severally, hy tluse Presents, .sealed with our respective seals.
Dated this thirty-first day of Aujrust, one thousand nine hundred.
\\ HEKEA.s, the .said Company have affreetl to take the said Henry A.
Stone into their .service a.s I>c«kkeeper, or to act in any such other
capacity for the Company as Leonard JIcGlashan, of the villa^^e of
Stonehridj^'e, mana<.'er (jf the sai<I Company, or the Hoard of ])ire(tors of
the saiil Company, ma^- from time to ti?ne reipiire, or appoint, or as may
he from time to time a;,'reed npon with the .said Henrv A. Stone, upon the
.said Henry A. Stone and the said Koheit E. Dntf and Edmund Miller as
.sureties for him. entering: into tlu' ahove v>-ritten hond or olili^jatioii for
the fidelity of the s-iid Henry .\. .St. me while in such employment as
afores.iid.
And wiiKltKAS, it is intended and a;,'reed that this .'-■ecurhy shall he in
force durin<4 the whole of the time durini: which the said Henry A. Stone
shall he in the service of or employed hy the .said CompanV in such
capacity, or in any other capacity.
\ow the conditions of the above written Hmid or (?)l)lij;ation is such
that if tlie .sai<l Henry A. Stone shall at any time hereafter,'"so lon^' as he
shall he in the .ser\ice oi- employment of the .said Companv, as clerk or in
any other capacity, faithfully, "honestly and dili;,rently perform and dis-
charcje the said service and all the duties which may devolve upon the
said Henry A. Stone as such clerk or otherwise as aforesai<l, and shall
whenever rei|uired, duly account to the said Leonard McGlashan, or other
person or per.sons for the time heiny actin;,' as Manau'er of the .said
Con^jiany, or to the said Board of Directors of the said Compain-. for all
money, ;roods and property w hatsoever for or with which the said Henry
A. Stone may he in any wi.se accountable for or char>,'ealile to, or by him
or tlieui as such clerk, or otherwise as aforesaid, ;md shall, whenever
ret|uired, duly pay or deliver all such moneys, rjoods and j^ropertv to him
or them, or in case the said Henry A. Stone, Roliert E. Duff or Edmund
Miller, or any of them, their or any of them, their or any of their heii-s,
executors or administrators shall, when riMjuired. make satisfaction to the
.said Leonard McGlasluui, or such other person or persons for the time
acting as Manarjer of the .said Company, or the [5oard of Directors of the
S8
fifAUANTV ANIi Sl-KKT'i Sll II'.
said ( iiiimaiiy. i«v nil such inon.'ys, goods or i)n){).Ttv wliicli may In; lo.st,
iiiisiiliicod or uiilaulully .lispased of by the .said U.iuv A. Stone, or shall
not !«• duly nccoinited for, or paid or di'livered iis afor.'said, and shall ktop
the said Lfonard .Mc< llashan, or such other person or persons aforesaiil of
tho said (.'oinpany indi iinnhed a^jainst all lossc-^, dani.'i;,'es, and expenses
whatsoever by reason or in coiiseiiuence of a>iv such aet^or default of the
said Henry A. Stone.
And so that .iny forjjivene.s.s or fori •>■. trance on the part of the .said
Leonard .Mc< dashaii, or the person .,r persons afol^•said, or tli.- .said
Coiuiiany tipwards the said Henry A. Stone in respect of hi.s failure or
ne;:lect to perform such services or duties, or make such payments as
aloresaid shall not in any way relea.se or exonerate the said Kohert E.
])uft or Edmund Miller, or either of them, their or eith.r of their respectiv.'
heii-s, executors or administrators in respect of their or his liahility under
the aUjve written Ixmd, and ,so also that the .-;,iid Kohert E.'Dutl' or
hiliMund MiMer, or their respective heirs, e.Kecutorsor administrators .i,,dl
not separately or individually he liable to pay more than Fifteen Hundred
ot the aUive writti'ii Bontl.
Then the above written I'.oiid or Obliiration shall be void and of no
lie void
remain in full force and virtue.
Henhv a. Stone.
RoliKliT K. jtlTK,
MliMlND Mlll.n;
m
m
ertect, or otherwise shall be and
JSiifned, Sealeil and Delivered, j
in the ])resi -.ce of -
CfKTis Arnr.STiNE. j
!>!». Creditor's Obligations to Guarantor
1. To },dve notice of di'faiilt within reasonable time after it is known.
2. Toj,'ive the {.'uarantoi, as soon as he has made .'oo,i the .iefault
al his ri^dits aj;ain.st the debtor, and if anv propertv of the debtor or other
collateral security is in his hands, to turn it over to the <,r,i;,rantor.
The ;,Miarantor. after makiii;,' <,'oo<l the default, taki^ th ■ jilace of the
creditor, and may recover fnaii the debtor ii..t ,,nlv th- oriuiu.il ,lebt. but
also all expenses and costs iiu-urri'd.
lOO. Discharge of Guarantor or Surety.
_ I. It the ^'uarautee is ;,Mven for a certiiiii specified time, then at the
expn-ation of that time the j^uaiantor is released.
2. If the -uarantor <,'ives notice that he will not be surety after a
Cei-tani date, he IS then relieved from any default after that time. Of
course this would not apply on a ne^rotiable instrument not yet c'"p or
any contract the time for which t(j be e.xecuted had not yet expired.
:{. Any alteration of the agreement without his knowledge or con-
sent will discharge the surety. The erasure or interlineation of anv
wm-ds that have the effect of changing the liabilit\- creates a new and
ditierent agreement from the one which the suivtv lia.l guaranteed
Siicli alterations can only be legally made by the' surety ".'ivin.r his
consent m writing. ' " . n i^
4. An extension of time given bv the creditor to the debtor by
Vidfl <t,ji-ennn>t releases the surety unless he gives his consent. A mere
pmnusf to extend the time would not relea.se tlie surety, beaiuse the pro-
ini.se would not Ik; legally binding, and if the surety refuse.1 to allow
TAVMEVTS.
•2!)
the extension the creditor coul.l still sui- the -lehtor. or accept imvunTit
from the suret)- an-1 invest liiin with all liis ri;.'hts iiml reiie-.lies fi^^ainst
tile 'ieiitor. "
In (inl.r to lie a iii.seliar;;e to the surety, the aj,'reeinent with the
ilel.tor mnst he one that biiuls the creditors "to an extension of time for
payment, so that th.-y are prevented from jiroceediii"; a;,'ainst tie- dehtor
themselves (hiring that time, and which coMse<|iieiitlv prevents the snretv
from exercisinij his ri!,'ht of pnyiii;,' th>' creditors ;uid siiiii;,' the ilelit.'r
ii])on the chiiiii
.V Fraud, either in respect to the contract itself, or some frau.i or
deception pnietis.d Ky the creditor himself or hv the dehtor with the
creditor's consent, hy whieh the surety was induced' to <,'n,iiantr.' the debt,
releases the surety from his olili:,'atiiJn.
I«|. Rig-hts Between Sureties. Whrii sivtral sureties unite in
a ;:uaraiity, each one is rei|uired to contrihute equallv to the satisfaction
of the claim should the dehtor make default. If one were found to he
insolvent the others wouM l)r hound to hear the hurden eiiuallv In case
one pai<l all, hr could recover from his co-suretii-s their e,|uitahle share of
the loss.
This ei|uitahle distril.utioii uf the iiahility holds unless there is an
aj,'reement amonj; the sureties that chanj,'es it. 'if the last surety (as with
mdorsors on a note) were to aild to his sijjnature, "surety for the al¥)ve
names," or words of siu:ilar import, he would not hecome'a co-surety, hut
would merely l»e liahle in ca.se the others IVil.
The respective liahilities amoiij,' indor.sers on a iiroiiii.ssory note have
heen noticed in tli.'it ehapter, which see.
('li.vprHi: IV
r.WMKNTS.
Itt'i. Payments. The mnsiiivrntion in every contract is moniA'
unless otherwise [imvidi'd.
lO:; Payment in Money. Unless otherwise stated every debt is
payalile in money. If in <,'old, it must be in t,'ol(l ; if at a certain place, it
must be there ; if to bt; sent by letter or bv express, it must be that way.
If the directions are com lied with fully.'even if the other party should
fail to receive thi: money the debt is paid nevertheless. (3f course tlie
party must h<- able t urove that he actually .sent the money.
104. Payment in Property. When the ajrivement is such, any debt
or contract may be paid in <,'oods, or oth.r property, or in service. If
such articles are not tendered at the time and place agreed ujx.n, the debt
become.s payable in money. Or if any proj.erty other than the kin<l
agree.l upon is tendered, it may be refuse.] and the debt collect.-d in
money.
ao
V\\ MKNTv
liut iH'fnr.' any ;icti"ii rs takfii tocillici the pric.- in nion.'yii .l.-niiiml
must l>c' niiul.' for Uair .l.-livfi-y witliin a certiiin time (a ivusonul-lf tiiiii-).
ami if tlicy art' not then .k-liviT.Ml suit may 1m- t-iitfiv.l for tli.' i>riff of the
projiorty. Tlie oiio party cannot compi'l tlio otluT to dfliyer tlio ^oucIh,
l.ut he may n/eovt-r tli.- prici' in moni-y us lion- stato<l, ami in a.Mition he
„„iy r ,\vv ,lama;;eM for tiroach of contract if ilamaj,'es actually «jccur.
HKt. Payment by Notes A promiawry note or acct'j)tancc bcinj;
merily a /i,»,„/.--' to pay is not an ahsolnte jiayment, ami if they arc not
pai'l at maturity the ileht staii-ls the same a." before. The case is .lirt'erent,
howev.r, if the'note of a thinl party is <,'iven in jjayment for j,'o<«ls or on
a >lel.t. For instance, Jones ;;ives Smith a note he lielil a^'ainst Hrown in
jmvuient for ;,'oo(ls or on a debt. This n(Hu pays the 'lebt. Of cotirse. if
.loiies imlorse.l the note so as to make himself liable when he transferred
it, then Smith can pr->ceed apiinst him on the note, but not for the original
debt.
I<M>. Counterfeit Money and Forged Paper Counterfeit money,
a for;;ed note or chei|Ue given am' receive.l in goo-l faith iloes not dis-
chari:?' a debt The person receiving it must return it to the party who
puiil"it to him within reasonable time. The debt still remains and may
bo collected as though no such payment had been made.
107. To Whom Payable. Payments should always be mud.- to the
pel-son m.-ntioiied in the contract, unle.ss it l)e a negotiable instrument,
then to the /(.»/-/'/■ only, and never to an agent unle.ss he ha.s the note to
deliver over. If nothing is .said, then it must be to the creditor himself, or
to his legal representitive, such as an agent or attorm-y. Care must be
exereiseXwheii making payment to his representative that saiil party is
authorized to receiv.- tli>' money.
I«S. Place of Payment. The manner and place of payment are
often drtiiiiiely -tii.ul.it-.l. :is in the following: " Payable only at A's otKce
in gold to ' A ' personally, and not otherwise or elsewhere." If a place of
])a\Muent is stipulated it' mii.st be at that place. If no ])lace is mentioned
tlu-n it is the <kbtors dutv to find the residence or place of business of
the creditor, and pay it there to him personally or to his legal representa-
tive or agent.
lOU. Presumption of Payment A note, acceptance, due bill or
receii.t ill thr hands of ,i .l.l.tor is presumptive eviilence that the debt is
paid, and will so hold unless there is other positive evidence to the con-
trary. If there ha.s been a great lapse of time without any demand being
made the presumption is that the debt has been paid, hence the Statute of
Limitations.
liO. Application of Payment The person making the payment
has the right to make the application. Where a debtor owes more than
one debt to the same creditor, and they are all due. the debtor has the
right to say on which debt the payment shall be applio.l. If the debtor
does not say on which debt it should be jilaced, then the creditor may
apply it as he may desire. When neither the debtor nor creditor makes
I'AYMKNTS.
HI
the ik|i|)lieatiuii, luit creilit in iinivl}' ;,'iv(ii t'nr ili'' n-coipt ot" wj luiicli
iiioney, in ciwi- tln' luwiiioss iimttiTN won- v.ttlu'd ii> court, the court would
up]>ly thu ])iiyiiieiit uii tht> dt-bt that is coii8i<l(.-ru<l tiic most l)Ur>lenHuinu
to tht« dulitor. If thi' dehtH were a Ijook account, iiii indorni-il not«, a
cliiittol inortpij;e niid n, Jud;,'niciit, the court would aiipiy it on thi-
judgment. If thi.' di'ht wen,- ii Ixjok account only, the c<iurt would apply
lilt' payuK'Ht on tin- i-arlii'st iti-nis.
III. Compromise- A liir;,'u dt.'ht nmy lie pfti<l liy a \tiy mucll
.<snialk<r oiii- win'ic tiiiTe is an a;,'rui'nu'nt to that cHi'Ct. A diaputt-d claim
may l^e paid liy any mumi wlu-re there is an agreement to accept such sum
in sjitisfactioh for the claim. The aj^reement should \x: in writin;;, or have
a witness, " Accord " and "satisfaction " are terms used in settlement of
disj)uted claims hy compromise.
Il"i Composition Deed In ca.se of an insolvent person where the
creditors accept a certain rate on the 'lollar an<l jjivc him a iliscliarj;e, the
relea.se is called a ('i>ni[)osition Deed.
I tli- Arbitration and Award In ca.se of any dispute where parties
ajjree to leave the >ettlemiiit to iuKit ration, they arc olp|ij;ed to accept the
award as tinal, providiiij,' the arbitrators keep within the limits prescribed
for them.
114 Legal Tender of Payment. A lej^'al tender is the attempted
perl'onnaiiC'- ni ,i euutr.u t, win tin r it is to do sometliini; or to pay .some-
thin;^. If payable in i,'oods, then ;;oods of that kind and (|ualit\- must be
ortere<l at the exact [ilaee and on the time called for in the contract. If
payable in money, it must be in the lawful money of the country, if tliat
is ili'mande<l. A creditor camiot be forceil to accept a cheiiue as payment.
If payment is not accepted when a leijal tender is made interest stops at
that date, and no law costs or otlur expenses can tlnnafter be re.|uired
of the person makinij the tender.
U."» Refusing Part Payment. 'I'li'' ivt'usal to acci'pt part payment
on Ji note or debt does not .■itlcet the debt in any way. The refusal to
acc'pt payment tendered in full does not cancel the debt, but it stops all
interest and ixpen.se thereafter.
I14i. Merger. The hi;;her security mer<,'es the lower. Where one
person \v<)iiM be owin^ an(jtliiT on a book account or note anil then i^ives
a mort^^u;,'!' fur the .same debt, the mortj^a^'e, beinj; under seal, is a hi<jher
security, and thus the book account or note is mt;r{ji;d into the morti'aj^e,
hence wijiUd be no longer binding. If then' were an indorser on the note
he would be relieved. If it is desired that the mortgage should not merge
the note, it must be stated in the mortgage that it is given as collateral
tiecurity : then the note would still be binding.
A note or bond on wdiich judgment h.-is been obtained is no longer
binding as a note or bond.
Where ])arties have entered into a sini/di- cmtract. . ither wi-jtt.'n "r
oral, and then afterwards enter into the same coulraet bv an instrunn'nt
32
NEi.i.TIAHI.E PAI'EH.
uii'liT M'al, tin' siiiipli cc'iiiimi i> mo lonyur biti'lin;;, liiil in iirtj^uJ ii'tn llie
higher.
Wlnre II iiiort;;n;;u wiiiiM lie jfivcii i4s collateral Mecuritv for a note,
the pftyiiieiit of either one iliwhar^es hoth.
117 Legal Tender Money In < '.inu'lu ■■ur ( 'aimiliini miil Uritish
copper loili.s are lf;;al telhler for tin- imyiiuiit (jf a di'ht up to tweiity-tive
cents: silver for ."^lO.OO: l)oiiiinioii notes, I'iritish ami I'nited .State.x gold
fur any amount.
CHArXKR V.
NK^.oTiAr.LK i'.\ri:i;.
IIH Negotiable Paper inehides thos'' instruincnts in use in a eom-
niuiiiU' uhicli pa-.> 111 , ly from oui- person to another by simple ileliviry
or l>y indortk'ment. The woi'i which ;j;ives them this nei^otialiilit}' is
hfiinv or oilier. Those which are transferable by simple ilelivery are
written payable to ii ciTtain j -n. firm or corporation, or Imin'r, and
those which are transferable i._, indorsement are written payable ton
certain jwrson, finn or corporation, or nrdrr. and rei[uire to have the
payee's name written across the back to be transferred.
The instnnnents classed under Xef;otiable Paper are promis.sory
notes, acpe|iiances, bank notes and rhei|ues, but besides thi-.se are also the
followini;. which are iic^iotiable by indorsement: t'ertiticates of ])fposit.
Warehouse Receipts, Dills of Ladin<x and Coujxin PxmkK.
Before \^'M le<,'islation in respect to nej,'otiable pajn i- v.iiird in each
Province, but at that time a Dominion Act was passnl niakin;; these papers
uniform tiiro-ij.'!' ♦ tlie whole Dominion and introducing' some very
important and net^.^sary changes, all of which w ill be found in this chapter.
ll*.i. Promissory Notes- A |)romis,sory note i^ an tinronditioiial
written promi.se lo pay a certain sum of niiiiiei/ at a specified time or on
the hap{)enin;j of a certain event. Notice carefully the threr points in
tliis definition:
1. There must be no cmrdidon expres.sed. If there be a condition
expressed its character as a promissory note is destroyed and it btcoiue.s
nothint; but a written a<;reement, bindin;j on both ])arties, but not
nefjotiable.
•2. It must be payable in iiunu y. If it. is made payable in anythin;^
except money its negotiability- is destroyed and it is called a chattel note.
(See Sec. 147).
3. It nnist be made payable at some Sftfcified time or on the happen-
ing of a certain erent. If made payable so many days or months after
the death of a certain person, or the arriving of age of a certain person, it
would be as valid as if made payable after (/((''■. as tiny are usually drawn
NEIJDTIABI.E I'AI'EK.
:i;i
i*JO Parties to a Note At tli<' iiu<>]itioii nf a. contract \<y proiniH-
8ory Hull- tli,' [.uiii.s i.i tlir iiKti- ui<' iimk<'r iiml payet-. After its traii.sfur
other piirtifs l»ccoiiiu iiil.rt'><t<'il, ami the holder takea tJiu place of the
iHij/ie. If tlie oriKiiiul payee in traiiMfcrrin;; iinlorMcH it in tlir tisiial way
lie oecoines surety for Nul*«e(|Uent hoiderx.
I'il Innocent Holders for Value are those wlio purcli(u«- .. note
hefo"-.' iii.itunty. ;,'iv!ii;; value lur it, am] not knowing,' of any frauil, defect
or iiiliriiiity in the note. Such Ijona jidf holilers for vaUie will collect it if
the maker un<i iiKlorser: are worth it, no iiiatt<r what the fraiul may have
l>een hy which the note was obtained, or even if stolen, 'i'liis, of course,
d'ws not refer to a vi-n-nfifitiitht)' note that may have U'en purcha.sed lij'
an iiHsi;;mnent of the juiper. (See Non-ne;,'otial)le Xoies, Sit. 144.
I't'i Days of Grace. In Canada (Newfoundland the same) three
day.s <if ;,'iiiee ar.' allowed on all notes and acceiitanci-s, except those
■ Irawii ]iayal)le mi ih-mniiil, which have no days of ;,'race allowed.
fi'.i Maturity A note or accept<ince is legally due on the third day
ot ;,'race. .iiid may lie paid at any time during; the hu.sjiie.vs hours of that
day. U payahli' at a hank, it must l)e jiaid chiriiii,' lmnkiii;j hours.
When the time is e.\])ressed in tluys, the uctuiil numher of days must
Im.> counted. In computing,' the time, the ilay u|j<>n which the note 'is dated
is not incluiled, Imt commences on the followin;; ijiiy. If tJi ■ time is
expre.ssed in months, it means caliiidar month.s, and not merely thirty
days. For instanc, a note dated Ajiril lOth, at three months, falls due
July lOlli, and the three days of fjrace added i lakes July Kith as its l.-gal
date of niaturitj".
I'i-I Maturing on Sunday A note or acceptance fallinjj; due on
Sunday, ur any l.;,'al Imliday, is payahle on the following day, unless that
again were a holiday, in which case it would be the first business day after
that. In New York, and some other States of the rni<>n. a note or
acceptance falling due on Sunday or a legal holiday, is payable llie day
before, l.iii, in Canaila it is the day after.
I'tTt- Place of Payment. It is not necessary to the validity of a
note to mention in it any place of payment ; but it is desin.ble, for various
re.asons, that it should be ihne'. 'I'be maker would then know where to
lind it at maturity.
If there is an indor.ser on the note, then it is better for the holder if
it is made payalile at a certain jilace, as he would hive less ditlicultv in
making the legal presentment rciiuired in order to hold •.he indorser. (To
li.ild indoisers, see Sec. ISD.) Hut where there is no indorser, or none that
the maker cares to hold for payment, the ca.se is ditlerent. Where no
jilaee of payment is mentioned in the note the holder is under no legal
obligation to jiresent the note for payment at maturity: it is tiie maker's
duty to find his note and pay it. But if there is a place of paymt nt
specified in the note, then the holder must see that the note is ]iresented
there, or he would be in danger of losing subsecjuent interest and costs if
hi' put it in .suit.
3
:u
SEGOTIAIiI.E I'AI'KU,
1-M; Signatures to Notes. A person ner.l not si;,m his own name
to a nut.- with his uwn haii.l, h\n it is s.ilHc-i.nt if liis sij,mutnre is written
ther.-on l.\- sonio other lu-rson, by or umior his lUitlionty. In case of a
coriionitinn it issntlicient if the corporate s.al isattachfil to the iiistrnnient,
but this is 7iot likely to conic into i,roncral iiraetic on nccomit <■! the case
by which for;;cry couM take place. It is not necessary to aitacii the seal
to a note or liill if the corporate name is nseil.
I'i7. Ink or Pencil. A note or acceptance <liawn with leail pencil
wouM be' valid : so wouM an iii<lorseinent in pencil bi^ iiiii.lin^r; but no
person uf onliiiary pnulence would use a penejj, as it can be too easily
erased ind chan<;es made.
I'iH. Value Received. These words are u.sually inserted in a
promissory note, but they are not necessary to its validity. In re;:anl to
ne;;utiable paper, value is y»;r.si( /;(?</. (See Accommodation Note, Sec.
laTi.,
r*!». Alterations of Notes and Acceptances. When any note
or acceptance is m.iteiiallv altered without the consent of all the parties
liable on it, the bill is vo"id, .•xcept as aj^ainst the jierson who ma.le, or
who assented to tlie alterations, and also acrainst sub.se.|Uent indoisers.
Also in this case if the alterations are not .-ijiparent and the bill hius been
transferred before maturity to an innocent holder for value, such bolder
will enforce payment of it'acconlin;: to its orijiinal tenor as if it ha.l not
been altered. , , ^ i ii i n
The alterations that are held to be material, and that .lestroy the lull,
are : Alteration of ihe date, the sum payable, the time of payuMut.aiid the
place of payment ; also, in case of a draft which has been aecepti. . ./<'ii' r<ill>l,
the addition of a place of payment without the assent of the acceptor. In
{general, any interlineations made in a note or draft by the holder after it
has been sifjncil will relieve both the maker iuid imlorsers.
|:M». Omissions or Wrong Date. Where a note or acceptance
payabK at a fixed period afl.r date is issued undated, or where an
accei)taiice pavable at a ti.xed period after sijjht is issued without date of
acceptance, any bolder may insert therein the true date of issue or accept-
ance and the 'instrument 'will be payable accordins:ly. If in this case,
however, the hol>:> i- in fjood fai h but by mistake inserted a wroii;; date,
and the iiill subseipieiitly comes into the hands of an innocent hol.ler lor
value, it will be payable as thou<,di the date so inserted had been the true
date.
i:tl Defects that do not Invalidate. A bill is not invalid by
rcasim thai it is not dated, or that it is dated by mistake on Sunday : that
it .loes not specify that value has been {riven, or name the place where it
was -Irawn or when; it is payable. It might be dated either lorward or
backw.ird. If through oversight no dati; we'-e placed on a note or Oiaft,
the holder woul.l have the right to insert the proper .hit.', according to the
intention of the parties at the time the instrument was made.
NEGOTIABLE I'Al'Elt.
35
i:;**. Innocent Holder for Value. An "innocent holdpr for value"
IS the ^iinic lis unotlur ixiJi-cs.sioii u.wd by law vlts, "a holiltT in .liie
coursi.-," anil means one wiio took a nof^ or accoptance wliicli was conirik-te
an.l rcpilar on tiie face of it, uri.j.r the foliowin.; conditions:
1. 'I'liat lie hecanie the iioMer of it before it w is overdue, and that if
It had b('en previously dishonored he had no notice of sucli fact.
2 That he took it in <{ood faith and for value, and that at that time
h.' had no notice of any defect in the title of the person who nejrotiated it
to him.
Any person thus heconiinj; tli.' holder of a note or acceptance for
value on or before maturity, and who does not know of any fraud or
ille;:ality in connection with it, will collect it no matter how great the
fraud 1/y which it was obtained may have been, except in case of those
marked 'CivtMi for patent ri},dit,' or in case of forged f)aper. After a note
has thus passed through the lian.ls of an innocent holder for value, and
be.ii purged trom its intirmity, it becomes immaterial whether any subse-
.|uent hoMer had notice or not of any prior defects or illcalitv A
person, however, becoming the holder of an overdue note or aweptauce
takes It .subject to all the e-iuities and defects of title which atfect.-d it at
Its maturity, and henceforward no person who takes itac(iuires any bc-tter
title than it had at that time.
I:J:{. Accommodation Paper. An accommodati.m note or accept-
ance i.s ,mr wher- the jjer^on signing the note or acceptini; the draft dcK-s
so without receiving any valu.^ therefor, but merely for the purpose of
ending hi.s name to .some other person. The acconnn.xlation party is
liable on the instrument to any holder for value, whether such holder,
when he took the note ..r acceptance, knew such party to be an accommo-
dation party or not. They do not differ in form from other iKjtes or
acceptances, and no legal cautions are necessary. The person who a.ssumes
siicii an obligation should have substantial rea.sons for doine- so and
cautions here would be out of place. "^
V.U Payment of Notes. Payment of negotiable paper of any kind
shoul.l nev. r !..■ made exe, pt to the actual Iwlder of the paper who has it
in his po,s.session to deliver over, and who does deliver it ov.t upon receipt
ol the payment. .Serious lo.s8es are constantly occurring by a neglect of
this plain business procedure. Payment even to the supposed holder who
has not the note in his po.s.session is not redeeiidng the note, but is .simply
placing that much money in his hands and trustiiiL: to his honor to apply
it to the note. The note, however, may have been transferred and the
true holder could collect it over again, or it may be in the hank and the
party to whom p.iyinent was made may be on the eve of bankruptcy,
hence the note wouM have to be paid over again. P.iying money to an
agent of a firm who has not the note to hand over, is simply trusting to
the honesty of the agent. His receipt would be worthless a's a setorf if
the agent kejit the money and tlie firm .sued on the note.
!»."►. Cancelling Signature. When n note is pai.l the name should
"''^■"'" '"■ ""'" "'^' I- i-^ usu.illy done, but simply draw one .,r Iwo line'j
NEOOTIAKLE I'APKll.
through the siffnaturo of both maker and indorser, and file the note away
as a \-oucl.er. "There is the same necessity for urosci vint: a redeemed note
as there is a receijtt.
I'M* Surety is the person who agrees to pay in case the m ker fails
to do so. 11' lie puts his name on the back of the note he is an indorser
only, and the hoMer of the note must meet the rei|uirements of the law in
regard to i)resentiug the note for payment (Sec. l.Stl). But if he writes hi.s
na'ine on the face, with that of the maker, he becomes one of the makers,
and i.s. therefore, held for ^ lyment, whether the hold, r presents the note
for payment or nut
137. A Minor's Note cannot be collected, .ither from him or his
parents or guardians (see Sec. 57). If a minor, or any other p.^rsou or
corporation not competent to contract, is.sues a bill having an nidorser or
joint maker, the holder can enforce payment from such in.lorser or joint
maker.
I:JS. Note Obtained Through Fraud is void in the hands of the
original hold.r, ii' the luakrr e.ui prove the fact of fraud or misrepresenta-
tion, but if it has 1 'en transferred to another person before maturity,
who gives value for it and does not know of the fraud, then this third
part>" will collect it. No ditt'erence what the fraud may have been, or
deception, or even if it ha<l been stolen, this iinioeent holder for value
has a good title and will raUect it. After a note or acceptance has once
been purged of its infirmity by passing into the li.vuds i>f a liolder ni due
course, it becomes immaterial whether any suliseipient holder had notice
or not of the prior defects or illegality connected with it. If, however, it
is transferred after maturity, then the purcha-ser does not, in that ca.se,
obtain any better title than the <jriginal owner possessed.
I5M>. A Forged Note is void, and caiuiot be colleeted midir any
circumstanees.
MO. Various Forms of Notes. An individual note is written,
"I promise to pay." and signed by one person.
A joint and several note may be written"! promise to pay,' or " we
or either of us promise to pay," or "we jointly and severally pronnse to
nav" and si'Mied bv two or more persons. In any one of the.se cases
Ihev are all lointlv'liable, and each one is inrlivi.lu.ally liable as well, so
that tlie holder of 'the note, in ease he has to sue, may i-roceed agamst all
of them at once, or against as many or against either one ot them he
thinks best. . • .,
A joint note is written " we promise to pay, or we jointly promise
to pa\- '" and signed by two or more persons. Do not mistake this note
for lh(' joint and several note, as the liabilities are not the same.
141 Individual Note 'Hir ordinary form of the individual note
is well understood, but wheiv there is no plac of payment mentioned in
it consid-rnblc .-umovance may be occasioned. (See following form.)
NEGOTIAISLE I'.U'r'I!.
37
^^0.00 CoLLiNiiWooo, August 27th, 1900.
Si.rii/ iIki/s ii/lt'r ilatf I promise to jiay to W. H. Henderson
or order Forty Hollars, with interest at si.r per nnt., f<a- ralae
rereired. \,V J, M,,xtague.
With the atKiVe form of note, wliieh is not supposid to liave any
in.lorstT on it, there are only two piirtii'H U> tlic pajjer, th.' maker and
payee. At maturity, October 29th. the holder, \V. 11. H.ndorsoii, i.s not
required to present the note for payment, but the maker is under ohlijja-
tion to hunt up his note and pay it. Mr. Henderson may have transferred
it, and if the maker did not find it and redi^em it<m the 29th October, the
pre.sent holder coui.l any time after tiiat date put it in suit.
14'i. Partnership Note is also usually written " we" promise to pay,
but in tli.it case it is ii,,t a Joint note, altliou^di it luw that form, but is a
joint and several note. Althou<,di three or four may .sifjn, they are all
individually liable for payment of the whole note on account of the
partnership laws, by which each one i.s liable for the whole debts of the
firm.
\y.i. Joint and Several Note is one .si^jued by two or more persons,
who liius prcjmi.se to juiy cither jointly-, or individually, if nece.s.sary.
Tliere are several forms for the wording in j;eneral use, as: " We, or cither
of us," prorni.se; or " Wo, jointly and .severally," promise : or simply " I "
promise to pay, and let as many sign it as are interested, it being an " I
promise" for each one. The latter form is preferable, because shorter.
i?100.00. St. C.\tii.U!INi;s .lulv 2!)tli, 1000.
Th,
ith>
/tree montlis after date we or either of' ns pi-oviise to pa if
James Smith or order One Ihmdred Dollars, at the Bank of
Toronto here, jor ralue received.
.loHV \\ I.NTERS.
.i 'f. WlllTK.
In the above note each one is liable fur the whoie amount, and if the
holder found it nece.s.sary to sue in order to recover payment, he could sue
both or either one, just as lie thought best. If he sued one and collected
the whole amount from him, then that one, if thev were e(iuallv interested,
could sue and collect half from the other, includnig l:n|f of the co.sts of
the previous suit. Bui if the party who paid the note happened to be
merely a .surety for the ,,tliei' he would collect the wli..|,. amount from the
other jiarty.
iSothdf the ])recediiig notes are negotiable by indorsement only, as
they are made payable to .lames Smith or '^n/^r ."hence if lie wished to
dispose of them he woiiM be compelled to write his name across the back,
that is, indorse them.
If they were written payable to .I.inies Smith or A/((/v /■. then he
could dispo.se of tliem simply by delivery or passing tliein over to the
purcha.ser. It is far better to use onlrr in.stead of hearer, because in that
case a note lo.st or stolen before it had been transfenv.l could
disposed of.
not
3S
NE<i<1TlAliI.i: rvi'KK.
NS
^
>•
!^
N.
^ r
V
.^ \
V
V
■^
• -^
Jn,
•x
v-^
■^ r
^
^
'^
N
^
^
^
-<■
'''l"c-~C<J>^r'C :— Ac-t^^vi-A-f^C'-iii^CJ'
144 Non- Negotiable
Notes .'Te tli'isf liifulo i^ay-
aliU' tij IV ciTtiiiii piTsoii,
lirni orcorjxiriitiDii.witliout
iisiii;^ (jitlit-T i»l' tin- words
lii-avf 1.1V <>i'ihi\&w\ ])liicin<:;
till- woril ">'/,'/ iiftiT till-
i.iine of tlie p.iyoi'. This
I'oriii of note, shown in full
size ami lorin on tliis jiii^ju,
ct)ntainiiiij tlio word onhj,
sliows on its f.icc tliat it
was the intention of the
jiartios to it tiiat it shouUl
not he transffiTcil, and it
cannot he hy merely de-
iverv or indorsement as in
ease of other notes.
Sinijily niarkini; out tlie
word iirili'r oi' lii-nrtr from
tlie printed Ijjanks is not
siitlic'ient to make the hill
non-nei^otiahle. A hill or
noteniaili' iiayalile to a par-
ticular ])erson,- hut which
does not contain adilitional
words, pruliiliili)};/ trans-
fer is still ne^jotiahle, not-
withstanding; the words
hearer or (>/•'/(■;• are omitted.
It is rei;arded hy the Stat-
ute as sim])ly an omission,
the same as i'or},'ettin<; to
date the hill, which any
holder could suhse<|nently
insert. Hence to make the
hill non-nej;otiahle it is
absolutely necessai-y to put
the word "('/,'/ alter the
name of the Jiayi'e.
A non-ne(;otiabl<' note or
bill may be transferred by
assiij;mnent th<? same as a
lM)ok account or due bill.
, The party who purchases
such a note takes it sub-
- ject to all the defects and
I P(|uities that may burden
I it, and in noresjieet obtains
any better title than the
I original owner possessed.
NECOTIAin.K I'APKl!.
39
t
I
I4."!i. Date of Payment Stated with Form. Tin' followiiiirl'orinof
noti', wliii'li iiiiiiii--i til'' (l:itf lit ]i.iyni'iit, is r.iiiiilly cmniii^f into u>.o, ami is
to be coiiiiiK-iiiiLMJ :
?7.'..()(>. Oui.N .~..ii M., ,^,i.t.irilHT lOth, 1900.
(lit till' linfli ildji (if Drci'iiiliir, /.'/'"/, / /)riiiiiisf fa /mi/ to
Jiiiiiis //. JJdiilir III' iinlir Sivi'iitij-ftrr JJnUurs, fur riiliif;
W 1' IlKNDKIiSHoT.
v/.
I4(». Note Signed by One who Cannot Write:
!#100.00. liiiASTFoni), Au;,fu><t 4tli, IflOO.
Til I'll- niiiiillis 'ij'lir ilnfc I 2>>"")ii(.<»' '" /mi/ tn the urilir of
•fitnas Smilli, lit till' lia»/.- «/ Tormito licre, Um- Hainlrnl Jjul-
I'lrv, irilli iiitevffit <(t riijhf perceut. jx'f annum, for ruluc recflved.
hii
\\ itlicss: ChAULE.s StMMKllS. \V. X WlXTEIiS
iitdi-k.
Till' |iarty .siijiiiii}; a iioti' in tiii.s way may takolioM of the pen wliilo
liisiiaiiu' is lieinj^ written or lie may not : lit' may make liis own cross or
lie may not, jnst as ho wislics. There nni.st, liowever, be a witness to the
sijrnaturi' The party assistinjj t<> make the note may si^'n as the witness
if no other person would be convenient.
14?. Chattel Note is one payable in mercli.indise of some kind
instead of money. They are not nej^otiable. oven if the words //«/(•</■ or
(»;•(/»■/• shotdd be insorteil, but they may be transferred by assij^nnient the
<.'ime as a <ln(' bill or book aecoiuit. I''ollo\vini( are two forms:
St. CATHAitiXKs, July 2!.)th. 1!)00.
FiiT vuivtlis (ifli'r iliilc / pr<nninr to /xty Jamrn Smith, nt
lii.s slorf, <hif Hunilrcd lltrvel-i of ijood linl'iicin Apjiles at
■innrki't iiricen. , ,,, ,,,
SHo.OO. St. Cathakinks, July 29th, 1900.
/'((•»' mnntha itftir ihitf I /iroxu'w to jiai/ Jmnex Smith, ot
li'tn storf, Onr Hunilrcl /.'"s/.-/- ■t ijnod mirrhmtfidilr Jiarleii,
at <SV» ceutii /ti r Imshel. ^ ,,.
If tile party j;ivinji such a note does not tender the articles at the
time and jilace mentiomvl intjie nite tlie holijer maj- sue. and if payment
ill till' cliatti'l is not made the amount becomes jiayable in money, but a
demand i'or their deliv.Ty at a certain ilate must be made liofore entorinji
action. If the articles are cumbersome and he orfer.t to deliver them, it
will be suthcient. If the payee refuses to receive them the debt is dis-
eharjjed by the lender of the articles, according to the direction.s in the
note, but the property in the articles tendered pa.s.ses to the payee.
If the debtor should be compelled to take the goods home again, ho
becomes the bailee for the paj'ee, and must give them ordinary care, but
at the risk ami expense of the pa_,ee. If at any time afterwards the
creditor reipiests iheir delivery, they nnist be delivered up if the expenses
that may have been incurred have been paid.
40
VK^dl IMil K CAI'Kli.
Such iiiitfs nr • not tiogo-
Miiiili', still tiioyarca biml-
iii;,' contract timl a very
fsiralili.' form in wliich to
[ilaci' all such transactions,
wliieli art' a t'rc(|ncnt occur-
rence anionff farmers and
fruit ^.Towers.
I4H. Joint Note is
written " we promise to
pay,' or " We jointly pro-
mise to pay," unci si^'necl I'y
two or more persons, who
are not imrt lurs. In 'he
full form shown in this
i,i},'e both parties are sup-
pnseii to have received
\alue and ai;ree to pay it
jointly. Kach one, in this
case, is only liable for one-
lalf the amount. If it
-hoiijd become necessary
to sue in order to collect it,
I lie jiarties must be sued
jointly. If one of the
parties left the country ami
his address coulil not be
ascertained .so a.s to .servo
him, he may be served nuh-
"titiititniiiUi/ ; that is done
by obtaining' an order from
the County Judj,'e to serve
another member of the
family. The one-half can
then be collected frnm thi-
otlier I'arty.
If, however, one of these
two parties, insteail of liav-
ii.tr Jin ecjiial interest iri the
■ ' iislilrnilidii torwhich the
note was ifiveii, had no in-
terest at all, but merely
si^rned the note as a surety,
and he should leave the
country Ik forr mKturit;/, or
it was foun<l that he was
insolvent, so that nothiu<j
couM be collected from
Itim, in that case the whole
amount would lx> recover-
aliie from tlie other l)arty
■•■!io received the value.
NEGOTIABLE PAI'EU.
41
Spt'ciiil euro must be taken to <li,Htiii-,'iiisli between the wordini; of a
joint note an<l Joint aiul several not.-, f.,r the liabilities of the makers are
very liitferent in the two cases.
l-4t» Patent Right Notes Any note or acceptance given for a
patent ii-ht >,v i.,i any iiitriest in a patent rij,'ht, must have legibly
wntten <.r pnnte.l across the face of it before the instrument is issued the
words "CJiven for a patent right/and without such words thereon the
instrument or any renewal of it is void, unless in the hands of an innocent
holder tor value.
Any person who intentionally transfers a note or acceptance which
lie knows was given for a patent right or for an int.rest in a patent right
an.l IS not thus marked, is liable to a Hn.' not e.xce.-din.' !<-2i)0, or one
year's imiirisonnient. "
The pureha.ser of a patnit ri-ht vuU- or acceptance that is tlius
marked receives no better titl.' than the original owner possessed, hence if
the instrument is atiect.d with fraud or auv illegality the m • trans-
ference does n..t relieve it in the lian<ls of an innocent holder for ■...
ir»0 Note by Married Womrn. All of the Provinces, cxcerit
(Quebec. ii,,\\ guv iii.urnd wcnirii tlie e.xclusive control of their own
separat.- estate, and allow them to enter into contracts independently of
their husbiinds, hence in signing a note or other contract they should use
their own Christian name, as " Sara A. Jones" instead of " JIi-k. "
OsHAWA, September 3rd, 1!)00.
SoO.OO.
2'/aW// diii/s after dale I promim' to pai/ Hinn/ Alixaivki-
or aider Fiftij Dollarx, at tlie Bank -./' Torunta, here, for raho-
rece'ivi'd.
Saha a. J(ixe.s.
^'""/ ."'J'^''"*-' ^ '','" '"* r".vable to the order f.f a married woman, thus,
"Mrs. .1. \\. ,|(,nes," the pn ferabje mode of indorsement would likelv be
to simi)ly in.loi-so the bill as it is described as " Mrs. J. \V. Jones " then
ad.l her own proper signature, ,is "Sara A. Jones." under it. The .same
lorm ol signature would b.. used in accepting a draft (incorrectly) drawn
on a manird woman, as " .Mrs. W. H. Stevens."
I.'.l, Lost Notes or Bills. Wlu iv a note or aeceptanee has been
lost the debt is not thereby cancelle-l. If it was lost before maturity
the ,,.r.soawho was the holder may applv to the maker or acceptor to
give ..11.1 another bill of the same tenor, giving him seeuritv to indemnify
him against all peraons in case the lost bill should be foun.l n-'ain
It the acceptor or maker on such re.|uest should r.fu.7r to mve a
duphrate bill, he may be eompelle.l to do .so.
If action is brouglit to ivcovcr payment upon a lost bill the loss of
tlie instrument may not be allowed to be .set up, provi.led an indemnity
has been given to the .satisfaction of the court or judge a.^ainst the claims
ot any other upon the bill in c|uestion. "
, . ^f "".,^'"''f'' "\ indemnity is ottered before action is taken, the
plamtitf will seMom be allowed his costs, and will probably be ordered to
pay the costs of the defendant.
12
NKfliniAllI.K I'AI'KU.
'I'll' lost instrmniMit is
iiHimlly ntlvertisi'd as n
w.irninj,' to tin; pulilic not
ti' iMircliiiHo it, Imt siu'li
iiilvcrti.sciiii'iit Would not
invvcnl an inn(K-ent holih-r
i'or valiir from collecting; it,
tlmt is, a (ii'i'son who piir-
cliasiil it without knowing;
ol' the lossoraijx cTti^cincnt.
Any jiiTson tinrlin^ such
an instrunii'iit ami attt'inpt-
in;; to coiici'mI it, or to
ni';joti:it<_' it instead of try-
ing; to tind the owner, is
lialiK- on a charj^c for lar-
ceny or theft.
I.Vi. Protecting Inter-
est after Maturity. Tlie
I'orni .shown lure retains
the same rate of interest
after maturity that it does
before. The lei;al rate of
interest in Canada at pre-
sent is live jier cent , hut
any rate can he collected
that a ])er.son le;;ally aj^rees
to j)ay, as we have no usury
laws. A n(jte drawn for a
hii,'her rate than five per
cent, if not j)aid at matu-
rity will then drop to five,
and if drawinji less than
five it will rise to five unles.s
it e.xpressly stipulates the
contrary.
The usual way in which
this is attempted, iiy writ-
inj; immediately after the
rate of interest the words
" until ]iaid," is not sulK-
eient. The courts rult! that
that simply nutans at ma-
turity, for that is the time
whi'ii the instriniient is
supposed to be paid.
To make tlie rate in the
note bindin^^afterm iturit\',
woids like the following
must be useii, " with inter-
est at (the r,u.' di'sired)
XE'iOriAHI.E I'AI'EK.
43
i
until iiiiiturity. unci tliciv-
iil'tiT !ii till' sjiiiie rate until
|>ai<I '
'I'll'- .siiini' pri'cnution
must lie taken in rcfjani to
a niorty:u;;f. This is i>nc of
tliosf fiiiiT poinls in tlic law
not nsniilly undirstixxl by
till' ]i.'o]iIi> <,'ciiiTally.
1.V5 Restricting Place
of Payment 'I'hc luiin
illiisiiatcil liiTL' is a joint
anil st'Vcr,il note restricting;
(lie jilape of payment, so
that if it is not ]iresenleil
at the jjjace stipulated on
the tlate of maturity', no
costs or expetise will !)c in-
curred until after it has
heen presented. The
luakei-H contract to pay this
note on Deeenilier 2()tli at
I lie Inipei'ial Dank/I'iironto.
The holder is supposed to
have the note at the bank
at maturity, but if there is
no indorser on it lie need
not, however, do so. The
omission to present the
lia])er for payment on tlie
'late of maturity does not
disciiarj;e the makers, but
it any suit were in.stituted
thereon before its present-
ment no costs would be
added jirorliln/ the makers
tendered the money at the
bank at maturity. '
If the note were payable
at any other placi', a tt'nder
<•( the nioiiej- at such place |
Would also i)e a bar to any
■-ubsei|ilent costs, and pro-
bably to interest after
maturity.
If tiie note were payable
at a bank, it would Ixs
advisable to dt!posit the
money in the bank to cover
the note and interest if
there were an v.
\
V
N
I.
^
^
^
^S
^
^
V
t ^
\^
^
^
^
Ni
X.
^>
S
c^ ■
C -
44
NEGOTIABLE I'AI'Elt.
Till' Stiituti' siiys that in
such ciwi'M the i|iii'stioii of
costs niiil sul)si'i|iient in-
terest is ii'ft to the iliscre-
tion of the court, but no
jui !<,'<■, cxci'iitinnliTiH'Culiar
circuiiiHtancos, would allow
costs ina cast'of that nature,
and but very fi-w would
allow interest alter ma-
turity
l.'»4 Lien Note and
Conditional Sales. A lien
notr is an ordinary promis-
sory note with a clause
added, which prevents the
loriiirfhip of the article
sold from jiassin;; to the
purcli"" :• until the note
lias 1„ • :. paid in full.
I.ieii aj^reeiiients. and
sometimes accompanied by
a lien note, are in common
use amon^ sewinj; machine,
orj^an and piano, and agri-
cultural implement a;;ents,
but these are {jencrally
lengthy documents, with
various conditions at-
tacheil, for the safety of
their property .so widely
scattered amnig strangers.
The fonn here shown is
ei|ually as safe for the sale
of a carriage, or horse, or
household furniture in a
community where the
parties are known.
Such anote niay be taken
for an article being sold,
but not for a debt that has
already been contracted.
The purchaser takes the
article and has the full use
of it, but he does not ac-
<|uire its ownership until
the full amount of the
note or any renewal of it
is fully paid. It is a <■<>;(-
(littiiKdl sale.
SEOOTIABI.K PAPER.
45
Such a note jh ni-;jc)tiable the siiine as though this claUHe were not
a. . e(j ; iiiileed. it m better than an oniinary note, because it has this much
adilitional sfcunty.
Ill tninsf.Trin},' lien not.'s, if th.- IiuM.t is to have all the riirhts of
the ori^i.ml payiv, so as to follow an,l claim the ko'->'I« wii.rcver they
mi;:i.l U- trunslerr.,!. it siuml,] l„, done by ,issig„mn>t in a.hhtion t-i the
* n.lors,,n>„l „f the jMiper. In that case it is also a.Ivi.sabh. to place .i seal
on the asNi-nmrnt. ixs that furnishes absolute evi,l..nee of th nuineness
ot the Hijjnature. "
This a.l.le.1 clause is not a 'condition" enilwlie.l in the note ami
does not destn>y its nej;otiability, so that the note can W treated if
desired, without any repiid to this special clause. The "condition " tK«r-
tains to the ownership of the article sold and not to the note.
But if the not., is not paid at maturity and the holder wishes to take
posses.sion ot the article held by this lien, or to have the lien bindin-
ajiainsl subse.pient purehu.sers and mortpijrees in ^roo,l faith for valuable
eonsiderution, the re.iuireiiients of tlie " Conditional Sales Act " mast be
coiiipli.Ml With, which see Sec. ;U8.
I."»."i. Renewal Notes. Taking' another note in renewal for or on
account ol the whole or part of a note susp.nds ri-ht of action whil.. such
.security is runimi;; and not yet <lue.
If the renewal note is not paid at maturitv, unless it is in t!ie hands
ofatransfere..,the orij,'inal debt revives. Hut a note taken merely as
collateral .security does not suspend the ri-ht of action on the orhnnal
ilebt. "
!.-,«. Legal Holidays. The lejral holi.hiys for all the Provinces
except (,)u,- ,.■.., an : >un.l;;ys; New Years Day : (1.^.1 Friday; Easter'
-Munuay. (_ hristiims Day; Dominion Day; H.M. Hirthdav, now the •24tli
ol .M-y, but any day appointed for the celebration of the' biitlnlav «f the
rei-ninK soyerei<rii ; ThankHf,'ivin- Day, any ,lay appointed \,y pn.elama-
tKjn ot tlie (.overiior-Genera! or Lieuteiiant-(iovernor as a imblic holi.lav
oraj;eneral fea.st or thanks;rivi„M; ; Labor Dav; Civic Holidays, appointed
by proclamation of the chief ma^'ist rates of towns and cities- when New
\ears C'hnslmas. l^Hieeu's IJirthday or Dominion Day falls upon Sunday
then the day l..ll,,wnif,' is ob.served. Newfoundland observes the same
<lays, except Labor Day.
And in th.,- Province of Quebec tlie sahl days, and also the fcllowin.'-
I be hi)iphany; the Annunciation: the A.scension : Corpus (^luisti .s"
Peter and St. Pauls Day; All Saints' Day; Conception Day.
Promissory notes fallin<; .lue upon Sun.lav <>r a liolidAv will le.rallv
mature on the .lay ne.xt following,' which is not a holiday. '
The tim.- limit also of any contract expiring or f.rilin- iip.jn a holi-
day, the time so limited shall ext.-nd to, and such tliini,- niav be ilone on
tlie day next foliowiiifr wliieli is not a holidav.
Persons en-aj^ed under a contract . .f s,.rvice, and appivntices, cannot
be compelled to work on ,iny lej^al holidav, except under special a^rree-
nient. ' "
4r>
NT.<iOTIAIII.K I'Al'Kll.
tlu' cri«liti>r us
t'i>lli)\vinjf iioto
Ei"rili)Vfi-s wiiikiii^ I'y tlif wi-uk, iiumtli or yi'iir, uiili«i.s otlitTwiHo
sp«»ciiilly n};r«'i.l ii|hiii, ar.' iiititliil tn tlu-ir wa;;*-^ lur tho liuliiluyn.
Civic Hulidiiys liiiii;^ iiuTriy liical iiic iiut Uiiik or yi-ru-ml holiilays,
henc<- ii(';;iitiitl>lr |>,'i|>ri- ami all oiitniile contracts iiuiNt Im.> nttfiiiJol to.
157. Collateral Note. It ol'tfii (kcius that a ler^m \vislion to nii»o
iiuini-y on his ..wii iiotr wIuti- sotturity woiilil In." iiucfSMnry, i;n<l yot may
not wish to :.'ivc jin imlorsci-, lnjt la- has shaivs in soiik- stock coiii|iaiiy
or liaiik, or has a iiiiirt;,'a;;c which ht- couM placi' with
collateral, ami thus aiii|>ly sucurr him. In such cuso tin
wouM 111' in oriliT :
5«2(Ml.O(). DrxNVii.i.K, S.|,tciiil»r lOth. iHOO.
Til ri !■ iiii'olln iifhr iliili, fur rulni' riitiifil, J prijinixr In
nil If Will. Ili'iiiiiiil III' nrili r. lit till' H<i Ilk uf ('nininrriTjiirr ,Ttvit
II II iiil iiil llifllnrs. ivilli nili'visl lit niii'il jii'i' I'riit.
lliiiiiiij ilijiiiniti'it si.r Mliiirin in llic Ontiiriu Xufii]ntii>n Co.,
Liinitiil, wliii-li I niilliiirize tin- Imldti nf this nnti' Ujiini tin'
iinn-pfi'fiinnitnvf nj thin nrnmixe at maluriti/ ti> xcll fither nt
jiiililif III- firiniti' ««/«', witlimit ili'iniindi iii/ iini/ineiit iif thiit note
III- till' ilrlit line thi'i'eiiii, unit irilliout fiivtln r nutiri', anil 'ii'iil;/
the jiivi'I'iIm, (!/• iiM miifh ii» imiff lie necesxiirif, tu the imifineiil uf
thin niite itu'l all iH'iesMitri/ e.rpi nms anil rliitnjis, hnliliinj niiinelf
I'etpirnsihle fiif iimj ileneieneij. j^ J l>\|j,j;|,
N.B. — A life ins<)rancL' policy couM not 1»' used as al>ovp unl< ss the
ln'neticiiieiis siifueil tlif note anil tin- nssijrnMii'nt rccordcfl on the com-
paiiy's IxKiks.
LIS. Instalment Note. It <loes not afU'ct tin- ni';,'otial)ility of a
note to make it jiayal)le in instalments, but it cniniot lie sued initil the
la.st instalment is due, whether the prwcdin^ instalments he paid or not.
This may he j;uarded a;jainst by addiiir; a clausu liki! the followinj;: " In
the ivent of default in making any of the alnjve payments at the time
mentioned, the whole amount of this note shall liecunie duo ami payable
forthwith."
The following; lien instalment note will illustrate the form :
S^dO.OO. IIlmhekstone, September 1st, iOOO.
On the tirxt ilit;/ uf each niunth hereiif'ter for foil r ininilh.H
ciinMivntivil;/, I i>rorniM to imi/ to AMennrt. Ani/nxtine d'- Kilmer
the fiiint of Fifteen Dollars, the u-hole amouvtinij to Sixlj/
llillars, the first of ■lurh jiin/meutH to he mmle on the Firnt daij
uf (letiiher ne.rt. Intenitt after maturity until paid at the iide
of eiijht per rent, per annum.
In erent uf the nale or other dinjinxal of my land or per-
.Hiival prnperty, or of default in malting any uf the ahuve pay-
mentx ot the time mentio le.d, the vholt amount of this note shall
thcrriipun heeuvie due and payahle forth^citli.
Witness: George Nekk. James H.vkdv.
acceptaxceh.
47
CIIAI'TKit VI,
\(<'i:i"r vxc|.x
l.'.'l Acceptance is il.f nam.- yiv,.n to a .haft after it Ims been
m-vtyu. . \ .irali ,s an uiK-on.liti.,n.il wrilt.n ..nlcT from on.. tHimji.
callr.| tl... ./„,,.,,•, to pay a c.rtain .specifif.! sum of money, «t a .sp.Titie.1
time, to « tlnr. party, .allr.l tl>e ,.„;/,., DrnftH an- also cuII.mI Hi||„ of
jAelmn^.... H, s ot Kxclmnge are .livi.le.l into two elasses, viz.. Inland or
L >mi'stic. un<l ^orl•IJ;n.
„„ii V\'T ':"-^'"^'^'" *''" *'"'« country in wl.ich th.v are -Irawn an-
calle.l Inlan.l.an.l tlio.se payable ui anoti...r country are Forei.'n
1 he Inlami or Dumr.stic liave threr -lays' ;,aac- allow...! .7n all ...vcept
those ilrawn 'kh .lemaml. '
Ifa.Iraa is payal.l.. in anytliinjf t.ut money, or if it or-lers s,j
tl>in;^to i.e .Ion.. Ml a.l.htion to the payment of immey, it is not a '.ill
Hut to or.hr that it siioul.l !,.. pai.j out ..f a particular fun.]. „r to in-licat.-
a particular tnn.l out of which the .Irawee is to lo-iml.urse himself or
to name a particular account to \h- ,MnM with th.. amount, or to inchkio
a statjuieiit ot what jfives ri.se to the hill, wouKl not he ,u„„i;i;,.„.,l, lienco
woul.l not athct the hill.
The F<,iei;n, are usually .sent in sets of th.v.., calle,! a "set of ex-
change, an.l each sent hy a .litK.rent route, or on a .liH-,.r.nt .late, .so as to
fc'Uar.1 a^jamst delays in case of acci.l..nt, ..i.e of the thr. e l,ein.' almost
certain t.) ivach its .h'stiimtion.
iJaukers. lawye.-s, etc., wouM not nee.l this explanation. I.ul th..
Kcneral .va.l.r will notic.. tliat in this work a draft, after it has been
accepted. IS r,.f, rivd to as a hill or acceptance.
H;» Parties to a Draft. The Dniwer is the name of th.. nelson
who mak.s .,r .Iraw.s the .halt. He si.-.is his name in the lower riuht-
haiid rorii..r, wlu.fe the mak.r ..f a note woul.l .si.m.
«.;fi Tl"" ^^''V''"' r ""■ ""","" "■'""" ''"^ ■'■■"^'^ is".lrawn. ami corre.smnds
1 .;.' \ '.'.' r'' '\ TV' ''f ' ''• "''' ""'^ ^^■''" '"'^ *•> P-'y it. His name ia
plac'd 111 the l..\ver lett-han.l comer.
The Payee is the one in wliose favor the .Inift is .Irawii— the i.er- n
draft's" '''*'*'"'*' "'°"'''^'' '*''" •"""" '"""•' "''f'"''' ^" ^'""' ""''"^ '""'
A bill or note may Iw made payable to tw., or more payees jointlv,
or t may be to one of two. or t.. one or more of several, or it mav be to the
liol-ler ()t ati ofhce lor the time beim'.
fr.„f^V"" ""' ?PT T " ^^■'"'o"« "»• non-existing person the bill may be
treated as iiayablo to b-'aicr. "'
l<;i Payable to Bearer or Order .V bill is paval,le to b.arer
meiit in'blank'^"""'""'' '" '' '"" ^'"^ ""'^' "' '""' i»'>o'-«e'»t'nt is an indorse-
A bill is payable to onler which is so expressed, or wliich is made
payahle to a particular p..rs,m and .l.jes n,,t contain words prohibiting
48
ACCEITANCES.
Mcivly
1 nnn-iii
striking
irotiable.
IraiislVr, or indinitiiij: an intention tliat it shouM not he tran'-ferrod. A
note or bill is nej^otiahk- nolwithstainlin;,' that the wonl hran'r wonli'v is
uinitted. Before 1890 a note or bill not payable to order or bearer was
absolutelv non-n<';,'otiable, but not so since that ilate.
(Hit the word "order" or "bearer" does not lua'.e the b
(See See. 1 44 >
Hi'i Acceptance of Drafts. .\ draft i> nut l)indiii;:- until It h.i.s
berii accepted any more than an orclinary onier on a merchant would be
until he lias acce])ted it. In aeeeptinj( a draft the mere sii^natnre of the
aecejitor is sutricient without the usual words being added. A draft is
usually acce]>ted by writing acro.ss the face of it, pretty well towards the
upper' end, which 'is the leftdiand siile, the word "Accepted," giving the
date, .stating wliere it i
diatelv under, as
to be Jiayable, anil tliei
!i spniini' the ujiiiir iniiiie
nsi'd when a
revious .section.
draft
"Accepted August -iSth, l!tO().
" Pavable at Imperial IJank, here.
"D. A .Ml L.viiEN."
With drafts drawn iiayable "at .sight," or a certain time "after sight,"
or a ■ilemand " draft that is not paicl when luesented, should have the
(/.//« of ■acceptance" given, but a draft drawn jiayable a certain time
after "date' need not have the date of acceptance given : but even with
these it is as well to give the date of acceptance, too. Wliere a draft is
accepted it is said to be " hnnored," and where acceptance is refused it is
saiil to be " dishonored."
When a draft is pre.sented fjr acceptance tlie lirawie may demand
t wo da v-' I'l )r accejitance, and in such ca.se it cannot be protested until after
that time. But if tln' time is not asked it may br protested the d;iy it is
tirst ))resented.
H»:( General Acceptance i- tin- nami'
cejitrd in till' iii-iiiii.ii\- w.iv. ,-is illu-trati'd in p
104 Qualified Acceptance is wlu u the "accejitance" in express terms
varies the effect of the draft from what it was originally. The acceptor has
that privilege within certain limits. This may be done by what is called
the Conditional acceptance, or a Partitil acceptance, or one ijualified as to
Time, or bv the accejitanee of one or more of the Drawei^s, but not of all.
(.See following si'ctions )
1 «;."». A Conditional Acceptance is one in which the ticceptor
makis the jiaymeni conditional ujion something contained in it, as:
" Accejited, Jiayable out of the funds of Amity Lodge, No, '.VI. A.F. A: A,M.
W. WiNTKiis, Treasurer."
In such a case W, Winters would not make liini^ill' jn-rsoiiidly liable.
nut Panial Acceptance is where the acceptor only agrees to pay
jiart of ihe amount siatid in the draft, as : "Accepted Sejitember 4th,
1 !)()(), for fifty dollars. W. JnuxsuN. '
In this case, say the draft was for ^1'^, the drawer and indorser wou^l
lia\. t<i be notified that it was only accejited for jiart. (See following
section. )
A'TF.I'TANCKS.
49
Hit Acceptance Changing Time. An iiccfi)ti>r may cli!iiii,'c the
tiiiu-. iis, t'(ir iiistancf, fmiii sixty ti^ ninety 'lays, hut in all .sucli cases
whtTc the (irij,'iual conditionH of ttn' ih-at't aie char 'ril, thf (h-awiT ami all
iniidi-scrs aro ivlicvt'd, unlcsH they are iiotitird. ll', aftrr rt'ceivinj; such
nnticc. tlu'\- do not, within a reasuniiltlt' time, expri'ss their dissent, they
are held to have ;,'iven their assent to tlii' chan;;e, ami thus remain liound.
'The chatiiji' <ji' place for jiaynieiit does nut atiect the draft, hut the chanjj;e
of amount, or time does. The liolder also may refuse a "i|ualitied accept-
ance" and treat the draft as dishonored, in which ca.^e he must have it
protested
UiH. Mistake in Drawee s Name- Wherever in a draft the drawee
is wron^dy de'-ic^'iiate(i or his name inisspcdled, he may accept the hill as
de)5crilie<l, adding', if he liiinks hest, his proper si;;iiature, or he may .simpl^'
accept it hy his proper 'i,'nature only.
I<M> Negotiating (. •r'oe Bills. In ne;:(jtiatini,' an overdue hill
it is suhject to any .lefect ol t'tle affect in;; it at mattirity. The ahsence
of f(>:isi<lt nitioii will not likeU- he ailmitted a defect.
Where a hill i.-i accepted or endorsed when it is overdue it is deemed,
r.s re^^ards the ac'"ptor wh.i so .-iccepts it. or the endorser who so endorses
it, as ji-iyahle on ii inand.
170. Kinds of Drafts. Drafts are divideil iiiti> four classes, aecord-
in;; to their wordin;;, which tixes the time they are to run and the way in
which the time is to he coinited : ( 1 ) J)emand"l)raft ; (2) Si;,d>t Draft ;" (.'i)
Drafts payahle a certain time after "si^^'ht '; (4) JJrafts jiayahle a certain
time after "d.'.te." The followin;,' sections will j,,'ive a form for each kind
.md the law i_'o\ eiiiin;; it ,
i;i Time Draft After Date.
.*I'»<).Oii. Sai i.r .Ste. .Mai(ik, Au-ust .'ilst, IHOO.
\ I II' hi ilivis ,ift,r liati- /nil/ t,' th' i/rdtr nf Tin- T. Eafn,/
Co.. Ll initid. Ill the hiiiiii iiiiiii liiiiil,-, Tnnmtii, tlnr II n inl ml
Dollar^, fur raltIC rffirnl, nuil rlninj, tn i{r,',,ii nt iif
r- W. WiNTKKs. Toronto. D. A. MlLaukx.
In acceptine; the ahove draft, which is [)ayahle after "date," \V. Winters
need not write tlie date of acceptance, us the time when 't will matuie is
tix<'d in the draft, heinj,' made payahle ninety day.s after its ilate.
A hill drawn payahle after date need not necessarily he jiresented for
acceptance until presente<l for payment, hut it is ;;enerally presented as
early as convenient, .-uid certainly should he.
iTi Demand Draft
••^lUO.UO. Anox, Octoher 31th, I'.iOO.
On (li'vuirul pay to tJn unh r of liroim Urns., (inr Hundred
JJiillnrs. riiliir ricfircd, iiiiil iliai;i': to (uriniut nf
To W. WiNTKK.S, H. p. MOOKE.
Welland. Ont.
The ahove form of draft has no days of j^'race allf)Wed. hut i-- p.iyahio
when demanded.
50
IN.iORSKMENl--.
It' it is tidt ]>aiil wh.'ii
.M'lit.Ml, th. lioM.r lias
• iiriviKi;'' n\ '_'i\iii;;-
linn- lu ihal r.i^.' it
WiillM 111-' " flCCi'Iitni as
ntliiT lirafts. ]iliKiiii,' till'
.i.iti- 111' iiecfpliincr iipon
it It wotllii not coin-
Ill, ■iicr to liraw interi'sl
until it was prt'soiituii, Imt
wiiiiM coiimii'iiCL' at that
ilatc to ili-aw five pi-r Ci'iit.
n:;. Time Draft After
Sight. 'I'lir lonu shown
on this pau'.' is a ' tini.'
.liiil't," ih-awn liir "list IK'-
(.■rniliiT, iMi'J. iiiul payahlo
inn. ty ilays at't.-r .s/i//'/. It
was a'cci'ptnl .lantiary 4th,
I'.tOO, and wutilil tlifrcfore
fall «Uu' nini-ty days aftrr
that ilati', April 4th, ami
th.' thriT days of ^'rnco ho-
in" add.'d niaki's it li\i,'ally
inatuiv April 7, 1 !'(»().
It was ni.'id.' ]iayalil'' to
tin- r.MMk of Montreal at
'roroiito, hut when Mr
Carter accepted it, it will
lie notieed,hc made it pa^ -
alile at his own othcc. and
ilieivfon- the I'.aiik that
presented it to him for
acceptance will now have
to present it at Mr tenter's
own otlice for ]iayment
wli.-n it falls due. t »f
eonr,-. , Mr.
ha\e made
sol tlur hank at M.
.lohn, if he h.'id wished to
do Ml, i.nt prohaMy he did
not have a hank accotuit,
and therefore it would he
more convenient for him
to pay it at his own otlice.
After" pavmeiit the money
will he forwarded to the
i'.,ink of Montreal at To-
ronto, as Mr. (Hmsted di-
lecteil wlieii lie drew the
draft.
Carter could
it pa\ahle at
KI'TAXCES.
51
174. Sight Draft. I uv
fiiriii shiiwpi I III this jia:,'r
is ii siL,'ht lira ft. It is
ilniwti Ijy Wniy !{. Sinith.
ol' Hfll.ville, (III I). A Koss,
(if l{i:i;iiia. It will lie
imtici'il that Mr Smith
iiiaili' it [tayalilc tu hiinsrlf,
aiiil thcrrtori- the )lr,iir,r
ami /I'lt/ti arc thr sainr
person in tliis case.
This I'liriii uf ilraft is
snii|ii.si'il to 111' [lai'l u hrii
it is ]iri'Si'utfil, liiit if the
(/(■<( ii;r iii'dls the 1 iiiif hi'
may acci'pt it in thi- usual
way an«l takr thr tliri'i-
(lays of ;,n-acr. It will In'
.si'cn liy till' form shown
lirrr that .Mr. iloss tonk
ailvanta^'i' of tli-' thru"
da\-s of ^'rar.T ami " ac-
cepted " it ill thr usual
way
It \\as ilrawn \o\i'iiilii'r
2ml, ]iayalil.' at ihr Hank
of L'oniiiK'rci', Hclli-xillr,
lint in accrptiii;,' it .Mr.
Ro.ss iiiailf it jayalili' at
till' Hiiik .if Mniitri'il,
Ki';,nna
It \V;ls .U'Ci'Jiti'il NnVc'lU-
i)i'r Sth, lltOO, ami will
tlii'i-cforc he payaliU' X>r
v.-mli.T 1 Ith. Hut .\ii-
vi'iiilirr 1 1 til fails on Siiii-
ilay ainl. tlirrrforc, thr
arcrjitailrr is Irpil ly i lur on
iloniiay, .\o\rmlMr JL'th.
Sirjlit Draft ami Tiiur
Draft ari,' "jovi'iiii'il hy thr
same law.s for pirsrui nirnt
ami collection.
52
lNli(iU>KMKNT.S.
fV lias hocn
unJ.T tli;it
siiiipK- I'V 'Irlivcry as it is pay-
y the iiiil'Tsi'iumt of thf payt'e,
th
mt. Purposes of Indorsement Ii
CIIAITKK Vir
iM)(>i;si:mknts.
11.". Negotiation of Bills. Notes, Etc Nr-utiall.' \y.i\
in at.'d in tlio jiivvioiis cliiqitcr, and tin' various paiiirs classc
lira.liii_' ;;ivcii in Sortion 140, which ^c
.\Mll {layablo to hearer isne{;"tial
alil. to any juTson who carries it.
A I'ill" ]>ayal'l'' to unler i.s ne^otiahl
anil is ciiiiii'litr.l l,y il. ■lively,
(i|-^riiicnls may hi- eitlii'!' h<T
iiuriM'sr nt iiemjtiation, or lor aihlitional .serurity. or for the aeknow-
le,l-ni.'nt of ,a jart^ial i.ayin- nl of th-' instrument, or for identification.
1??. Methods of Indorsement Th' n ar- s.-mimI ways of indors-
inj; a note or draft in i^'eiural use: il) Indorsement in Blank. CJ) In-
J()rsement in Full, (o Indorsement without Recourse. (+) Restrictive
Indorsement — various r..ruis. ,')) Indorsement ..f ( iuaranteo.
ns. Indorseuicilt in Blank i- wh-M' thr name onlv 's written
across the hack of thr iii-t runi.iLl Such an iudor.ser hev J.nes liable
for it.s payment, and the notr or dnift netjotiahl.' simply hy iv.ansf -r.
I7J». Indorsement in Full is wliere the indor.ser n-stricth the jiMy-
mentof tiie hill or note to some particular person. Tin re are several ways
in which this indorsement may be worded, .and the rtl'cct vain"! in r.wh
eas,-. He may write across the h.-iek " Pay A. 1). or order,' .and si^ni his
name underneath. In this case A. 11. cannot sell tile paj^er wiliiout
indoi-sin;,' it. If such a note were lo-,t no one could collect it hut A. B. or
the one to whom he endorsed it over.
ISO, Restrictive Indorsement i^ one which ]irohihits the further
nei'otiation of the hill, or expresses th.U il j,dves merely the authority U>
deal with the hill as thereby directed, and not a transfer of the nvnership
thereof, as, for e.x.imple, if .i hill, indorsed " Pay I), only," or " Pay 1), for
the account of H.," or " P,iy l>. or order for collection,' Suhs (luent in-
dorsees take the liil! with the same ritrhts and subject to the same liabili-
ties a.s the first indorsee had under the restrictive indorsement. 'I'hat is,
they are merely agents and not holders in due course, and therefore any
defence a<;ainst the first restrictive indorsee is available ai,'ainst them.
The restrictive indorsement ^'ives the indorsee the ri;,'lit to receive
payment of the bill, or to sue any jiarty thereto that his indorser could
have sued, but ^dves him no power to transfer his rif;ht as endorser unless
it expressly authorizes him to do .so, as in tlie last two forms ;;iven above.
A note or bill payable to /ifarrr, or to a certain person or bearer,
cannot have its nejroti'ahility restricted by indorsement, hut those nsini;
the word urdfr mav In- so restricted, as shown above.
181, Indorsement Without Recourse is where the note or draft.
is made tr.iiisleiahle, hut the indorser evades liability for its payment
I\T)f)IlSF.MKS-|>
(HiU'k of Xdtc.)
Tin- foUowiiirj is the Usual I'onu, " Without recourse to ino," iunl thfi niinif
writtfu uiiiiiTnciitli as in otln r iiiili)rsciiii-iits. No sulisrijucnt lioMcr cuu
liavf -.my cliiiiii aj;ainNt sucli an imiorstT. Such indorseini'Ut issiuijily lor
thr [iui|Mi-.i- of iic;,'otiatioti ami not st_'CUi-it\- i'oi- jiavnii'iit.
|S"». Indorsement of Guarantee^ Wii. n Mils arr subject to pro-
test it nuiy Im' remlend unnecessary by the itiijorser writiiii.' a form of
^larantee over iiis sii^iiaturc (see Sec. Is.')).
lH:t. The Indorser's Contract. I'>y h\-~ inilorsemeni he, in .ilict,
agrees m i,'.xm1 inith with all the .sub.se(Hient holders: (1 ) That the iii.stru-
ment itself is ;;enuine, and all the names on it j)revious to liis <:iwn are
conipetent tocontract. {-2) That he has a ;,Mod title to the bill. (J?) Tliat
he is competent to contract. i4) That ti;e uiakep will pay the bill at
maturity. (.'>) That in ca-<e tlie maker faiU Ui iiav tlie bill he will i.av it
hnnself. ' • ' ■
IS4. Relation Between Indorsers Where two or more persona
indorse a paper at Hif .•miw tiriu- as security, and the maker fails to pay,
the holder may sue all or lie may sue and recover from either one he
thinks best. In ca.se he collects the note from one, then that one may
collect a proportionate share from each of the others. If there were three
of them he could collect oni'-third from each of the other two. and if (miIv
two, then he would collect half from the other party.
Hut if the indorsements were at different dates,
a-sthey naturally would be where jiajier is indorsed a.s
it is transferred, the liabilities are altoirether ditterent.
In fact, where two or mo»'e indcjrsers are <jn a bill or
note each indorsement is deeme.l to have been maile
in the order in whicli it appears on the paper until
the contrary is proved. Therefore, where the in-
dorsements are at difl'erent dates the first indorser i.s
Security for all i.fttT him, the second is security for
the third, etc.
If the maker of such a note failed to pay. the
holder could sue all the endorsers, or any one of tliein
he miudit choose. Say there were three, .is in the
form shown on this patje, and the holder sued and
collecteil from all, one-third from each, then in that
ca.se Jones and Hrowii could collect wliat they paid
from Smith, thus makinr; him pay all because he
was surety for Ixith. If Smith, however, proved to
be insolvent, and Jones and iirown had to pay the
whole debt, then Brown would collect wliat liepaid
from Jones, because Jones indorsed before him and
was, therefore, his surety. Jones would have to pay
the whc'e debt and look to Smith and the maker, who
are both liable for it to him, and one or the other
mi£;ht sometime be in a position to pay. If Smith
Were .sued either by the holder or one of the sub-
sequent indorsers and paid the ainount'he could only look to the maker
of hte note.
James Smith.
Pet-er Jones.
Ib'nrv Brown,
54
IMniloKMKNTS.
A;:.un. if the holder sues IkiIIi the iiiakiT iin«l iii'hirser anil
iud>,'iiiriil. hut subsfijueiitly dl'tiiin-. /Hii/mmt U-um llie emlorsfr 1
CompelkMi to as.si},'ii the Jlitlfj;iii.-iit a;.Minst the maker tu such iii.lnrser,
may enforce it a^raiiist tlie makri- without entering,' a new Miit.
lMr». Various Forms of Indorsement 'I'his i.ape ilhistrates
various forms of indorseuu nts in jreneral use in C'anachi. nml [nuties
mav not !«■ familiar with them can reailily undi'rstaiul their ditlereut
byVeadini; the explanation in the rij^ht hand oplunni :
^ets
le is
who
Ihe
who
Uses
(Back of Note.)
ame> >iuitli.
2 Pay .1. Murray or order
James Smith.
3. I'ay A. Sanders<in.
dames .Snnlh.
I»r,
I'av A, Sanderson i^ily.
James Smith.
4 Witlu.iut recours
.lanies Smith
Or.
Without ncouvse to me.
.lames .Smith.
5. For collection only on acecamt
of James Snuth.
(i. For discount only to cn'dit of
James Smitli.
T. Vnv d( posit emly to of cre.lit
Jaiiies Smith.
1. Indorsement in F.Iank. The
name only. It holds indorser
liable
2. Indorsemeni in l''ull. It trans-
fers the liill an. I liolds him
resjionsilile if maker fails.
3. Restrictive Indorsement. It
transfi'rs the jiiiper and by
i-estrictintj payment to a ]>ar-
lieular per.s<in it is I'videnee
that it was not intended to
be nejjotiated further. It
does not ab.solutely prevent
its further transfer, but .•>■((''-
ni'ijui'iit holders take it suh-
ject to the e(juities that may
i)urden it when it receives
tlie restrictive indorsement.
4. (^hialihe<l Indorsement. It trans-
fers the ]ia[)er and frees the
endorser from any liability
for payment.
."). .Sp(/citic Indorsement. To i,'uanl
ajfainst loss in sending; by
mail or thro\i(;h other hand.s.
0. Specific Indorsement. A pre-
cautionary me.isure, .same as
in No. ''-
7. Specitie Indorsement. .Same
object as in N(}. ."> and ti. All
these should be practised by
business men more than tliey
8. W. Carter is bereViy identified.
James Smith.
S. Specitic Indorsement. It identi-
ties the holder at the Hank
withotit makini; th.e endorser
liable for payment.
IMiiiK.-,KMF,NTS
9. For valui! receivcil, I IhitIiv
f^uarantt'C' tliu pa\ rii<iit nf tlir
wit hill 111 iti-.
.l,-iiiii'> Siiiitli.
10. I^'mi- value reri-i\C'l, I lirr.'tiy
;,'uanitili-i' |iiiyiin'iit "I llio
within iiiitc. !ii:'l waive pro-
test aiiil iiDtif'e thereijf.
James Sinitli.
11. For vahle rt'Ceiveii, I heieljy
Ljuaniiitee the <-iillectiiiii ol'
the within note.
.hiiiics Smith.
12. Presentation ami protest waived.
.Janics Smith.
;i. lu'loiseiiieiit of (iuarantoc.
With this iii'lorsenient it is
not neci's.sai'v to [i-otest the
pai>er.
li> III'!. ■rsiMiient ol (luaranti'e.
Saliiu as No. 'J.
i:;. [ lerehy accept notice of non-
payment, anil waive pinte>.t.
.lames Smith,
14. lleceiveil on the within note,
.\u_'. -itith. l!)()i», Twiiitv
Dollars iSiO.OO I.
Si-pt. Kith, lltOO, Forty J (ollais
(.<-KM)0).
11. Indorsement of ( luarantee. The
;Xuarantor is not liable until
an attenijit to collect Ky leu'^il
process has failed.
\2 Indorsement Waivini; I'njtest.
This form of wordinj; is
usually eni]>loyed when done
liel'ore maturity.
!•'!. Indorsement Waiving,' Protect.
This i'orm i.s comiiion •.vlien
done at maturity.
14, Indorsement of Partial jiayiiieiit.
It is usual in indorsin;; V'^y-
ments on a note to give the
date and amount, and if liif-
fereiit persons n.'Ceive the
money, tlie initials of the
person should lie given.
ISO Collection of Notes and Acceptances Notes and drafts
made payahle at a eeii.iin [ilaee should he jneseiited there f'.ir jiaynieiit
on the third day of grace, even if tliere is no indorser on them. Where
no place of payment is specified in a hill, it is not necessary to ])resent it
for payment to render the acceptor or maker liable.
If there are indorsers on tlie paper, and it is not presenteii on the
third day of grace, both the dr.awer ,-ind indorsers are discliarged.
If the bill is jiayahle at a liank then it must be presented during
banking hours, but if not .it a b.ink then the Iiolder has the ordinary
bu'-iiiess <iay.
if there are no inilorsers tlieii it nei d not necessarily be ])r<'sented on
tlie date of maturity, hut must be presented for ])ayment before any
action is taken, or tlie liolder would likely be saddled with the costs, and
possilily lose the interest after maturity ;is well (.see Sec. 1>S9). The failure
(jf tlie liolder to present a note or acceptance for payment at date of
maturity will not generally' discharge tie' maker or .ieee[)tor. (See
following paragraph.)
-\ note payable at a b.ink is authority for the bank to apjily the
custcjiner's funds in jiayinenl of tiie bill. If in such a case the maker
could sliow that he liad sutl'ered loss by the omission to present the bill on
the ,lay of its maturity, hi' would prob.aMy \»- discharged.
56
INDOHSKMKN'TS.
IK?. Place of Presentment of m bill or note for ]inyiii<'iit ;
1 At ih. jilaci- --p. citii'^! in tin- papi'r.
'2. If no jilar.' uT ]i.iyiiiriit is sin'citicil, tlp^ii al llir !iiMrt_'SM of the
acceptor.
3. If no aililri'ss is iiu-iitioru^d in ilir liili, then at his [ilncf of husint-ss,
if known ; if not known, then at his ordinary plaoi' of nsidi-ncc
4. If nritlier is known, tiien at his last kiioun ]ilacr o| liusini'ss or
resiihni'r. or wliorever he may be fovnid.
.'), Wiiere the jjhice of piyment speciti.d ii. thf acceptance is any
city, town or vill!i;,'e. and no place thi-rein s]iecitied, the hill will he pre-
sented to the drawees, or acce]itors' known place of business or residence,
an'l if there is no such ].laee .'oiind, then at the post-otUce, or principal
post-orliee is sutiicient. Many a holder has lost his secnrity by not pre-
senting the pa]ier for jiaynient as the law rei|nires, and many an incjorser
has ]i;iid a note from which he w is lei,'ally discharj^'cd by the holder failing
to conipK' with till' ic^jal rei|niii'meiils. |.'>te See. IM'.)
IKK Presentment Delayed or Dispensed With. When circum-
stances beyond the eoiitrol of the leiM.-r [ires, lit [irrseiitiition, it is excused ;
but it must lie presented as soon as the hindrance ceases.
.\lso, when presentment has been "waived" by the parties liabli- on
the iu-trument.
ISU To Hold Indorsers Liable To bold an indorser liable for
payment ijti a note or f>ill th.kt is not paid at maturity, it is iiece.s.sary ;
1. To present the note or bill for payment on the third (l.iy of j,;race
for place of presentment, see Sec. lis?). If this i.s not done the indorsers
are irrv.
2. If it is not paid, then the paper may be proteste<l. and a notice of
tiie protest sent to each of the indorsers.
3. In most cases it is not necessary t<j protest, but if it is not pro-
tested the riotii-r of the dixlionor must be sent just the same.
This notice nnist contain the foUowin;; three facts:
1. That the noti! or bill ;,nvinij its <late. amount, name of mak''r,
indor.sers, etc.) had !)• en presented for p.'iymiiit.
■2. That payment was refn.st^d.
M. That the holder looks to him fthe indorser) for payment.
This notice mav be sent by a notary, or the hohler himself may
send it.
An oral notice is also l.';^'al, but it is always better that it be [lUt in
writinj;
It may be .sent merely as a letter, hut sUitiny cK-arly the thri'c fact.s
a1x)ve metitioned.
If the letter is not re;;istere<l, it would be ads is.iiije to have ,i. witin'ss
to its contents, and chdivery to the' jiost-otiice.
If the note or draft is made payable at a certain place it nuist be pre-
sented there for payment. If it is not mentioned in the paper wheie ii is
l)ayable, then it must be at the place of business or private residence of the
maker of the ncjte or acceptor of the ilr.ift. as the case may be. If his
place of residence cannot be found after ilue dilij^ence, or if he has I'lt
INDiJltSKMKNTS.
57
the country, tlie hoMia- tlit-ii nmy iitfs.nt it ,it tli.' ituMt-offic.' wliore he
hvod. It must lif iiiuNoiitt'il on tin/ thinl day ut' ^'race iiurin<,' business
hours, imi] not on any other day either hrfoic m- at'tir.
If thesi' thini,'.s are not eoniplii'd witii th>' indorsir is fr<'r. The
imloi-ser :iii;,'ht not neeive the notice for several days or weeks after, hut
that would not make any ditlerence so loiii,' as it was iiiaiji'd to his
supposed address. The notice should be smt within tw.lvi- hc^urs. A
similar iiotiei' is also s.-nt t" thr maker,
l!M>. Discharge of Indorsers
I. Payment of tle^ instrummt iy thr maker or acceptor di.schar,'i-s all
the in<loi-scrs.
12. raihuT t<j makt! a li'^al prrMiitnicnt of the noti- or hill for j jay nt.
U. (Jivin;,' time to tin- principal di,sehar;.,'fs the suri'lies unless their
t'ons(!nt has been olitaini'd,
4. Any act which (lischar;,'cs thr (ifincipal drl)t.)r dischar;,'rs the
.sureties, unless thr holder e.xprrssly rrsrrvrs his rii,'hts ai,'ain.-,t tlirm. and
in that case the jn-inci[jal debtor would still br liabli; to the claims of the
sureties.
.5. Any jiaity to a bill is discli,ir;,'ed by the intentional cancrllalion of
his .si;,'iiaturr by thr holdiT or his ai,'ent.
IIM Protest, is a notice si-nt by a notary public, who is also usually
a Ifiwyrr, to the makrrs and indorsers on a ixile or acceptance not paid at
maturity. It must conUiin the foUowiiiij three facts. 1 ) That the note
or acceptance ((,'ivin^' its date, amount, by whom .Irawn and indorsed, had
been presenteil for payment. (2) That payment liad been refu.sed. (3)
That the holders look to him for payment. A copy of this notice is
maileil to each name on the bill oi note.
Protests are always used by the banks, and .sometimes by private
in<iividuals. because the notary will not fail to sen<i a |)roper notice so as
to le;_'ally holii the indorsers,
(ienerally it is not compul.sory to protest, hut a f(;rmal written notice
sent to each of tlie imlorsers would answer the same purpose. It should
contain the same three facts mentioned above. .Simjily an oral notice
Would be bindinj,' .also, but there mifjht be difficulty in provin;,' it.
It is neee,ss;iry to protest forei;,'n bills of exchan;,'e if nut paid at
maturity, in order to hold the drawer and indorsi-rs.
In Quebec it is also neces.sary to protest an Inland bill, in order to
hold drawi-rs and indorseis
A bill can be jirote.sted onlv at the place where it w.is dishonored, or
at some other place in Canada within five miles of the jilace of present-
ment and dishonor,
A bill presentr.l throu;_di the post-otlice ;uid returned ilishouored, mav
be protested at the place where it is returned on that day or the day fof-
lowini,'.
When an acceptor becomes bankrupt, or suspends payment before
maturity, the holder of a bill may jiroti/st it for better security afjainst the
drawer and indor.sers.
5H
1M>I)USEMKNTS.
A Mil iiiMV l)i' jm)t«'.xtt>(l at tliriT o'clock. It i« (lUcstioiinlili' if the
Imiiks cinij.l sustain un action on a ]irol<'st at one o'clr r on Satunlay.
I1>'i Indorsers Notice of Dishonor WK.-n a liill has Ik.'i;ii ilis-
honori'l, an'l an in(loi>iT n'cii\i>' notid' to tliat itti-ct, if then' is a
iiri'\ ions itiilorscr to liiinsclf hf hail Udter forwanl the notice to him, or
iiiitifv him l>v IcttcT that tin- hill has U-en diNhononil, etc.. in ordiT to lioM
him for |iaynu'iit in case the hoicl.T did not notify him. He Nhoiild hi;
ahle to |iro\e that tlie letter conlainin;,' the notice wan duly addre-s.se'l and
{losted with till' necessary ]iostii;;e prepaid. He hius tlie hmu-; tim<' in
which to '^'wi- tin- notice after \\r lia.s heen notified that the imteceilcnt
holiler h.is .■\ft.T the diNhonor.
Ill- n:ii.i iMi
is (lone hv
IJW Noting for Protest When- a liiil or note caiuiot
date of niatvirity, the hank will "note" it for jirotest. This i-
the notary |>ilhlie the .same as the act of protesting', hut the expeti.se is les.s.
Knot paid, then thepa]» r uiiist he piotesteii the next Im.siness day.
IJM Fees for Protesting In < >nt,irio. Nova Scuii.-i .md I'rince
Kdward Isl iiid the fee.i for proleNtui;,' are '>0 cents, and l'> ceMl.-- for each
notice sent to the maker and indorsers. In Quehec and Manitoha the fee
for protesting,' is i^l.OO, and .'lO cents for notices. In l!riii>h ("olund>iii the
fee is .■<2.-">(), including,' notices; in North-West Territories #-J()0 for protest,
.iiid .')() cents for notices In New liriinswiek the fee .allowed is ^1.00, in-
iludinj,' the notices, hut it is .said that ^o.OO are actually char<^ed in some
instances.
tUy Protest by Magistrate. WIm u there is no notary puhlic or
none whos- .sei-\ ices can I'e i.lii.iined at the place where the pajjer is dis-
hunore<l, any .lustice of the Peace resident at the place may jiresent and
protest the paper, j^ive the necessary notices and liave all the powers of a
notary public. All the exi)enses of protest shall In- allowed to the holder
ill .addition to aiiv iuterest that niav h.ive .icrrui'd.
IJM; Form of Protest by a Justice of the Peace.
A <'oiiy of tiie hill or noti' and indorsements,)
( In this dav of in the year <jf 11) I. A. I!., one
of Her .Majesty's Justice of the I'eace for the district (or county) <if
in the I'rovince of , dwellini,' at ((.>r mar) the villii;,'e of
in the said district, there heiiifj no practising,' notary ptiMic at or near the
said village {or other cause) did at the re(|uest of , and in the
presenci' of , well known inito me, exhihit the original hill (<jr
note), where<)l' a true copy is alove written, unto C. D, the acceptor (or
drawer or jiromi.sor I thereof, pei-sonally (or at his residence, otlice, or >isual
place (jf business), in . and speaking to hini.self( or his wife, liis clerk, or
his servant, etc.) did ih iiiand acceiitance (or p.ayment) thereof, unto whicli
demand he or she ) answered, wherefore, I, the .said Justice of
the Peace, at the reiiuest aforesaid, have proteste<l, and by these presents
do protest against the drawer and indorsers (or promisor ami indorsers. or
INItuKsKMKNTS.
r.9
ncci'ptcir. ilriiwcr ami iiidorHtrx) of tin' snid hill nr nutv) lunl all othir
piirlicN tliiTftu unci tiuTfiii cunccrnt'd, fur nil ixcliaiip', rir-fxcliaii^'f, and
all costs. diiiiiap'S and intcTfst, jin-Hrnt anil tocoiin' d'V want of accf|itan<'e
(or payiuiMit) of tin- --.licl l)ill (or noti"). all of wliicli is liy tln-sr jirt'sents
attt'stt'd liy thr si;_'nutiiii' of tlit- said (\vittics,s) and liy my liund iiud s- .il.
(FrotuaU'd in duplicate.)
Si;,'naturo of witness.
Signal uri' and sial of the .! I' ^
In Newfoundland, wlnr.' tho service of a notary cannot l)o oiilained
to protist a liili, any liou-idioldcr or HubMtantial re.sidcnt of the place, in
tlie prcMeMce of twn \vitnfs.ses. may f.'ive a eertitiouti' which shall in all
nspccts cj Tate as a prcitest. The foliowin;,' is the ^tattitury form ;
" Knov, all men lliat 1, A. \'>. (householder , of . in , at
the re(|Uest of C. D., there Ixin;; no notary- pidilie availahle, di.l, .in the
dayiif . I'.t at demand payment (or accejitjince) of
the Ijill (/I' exchan;;e herenndrr wntten fromti. F, to which demand he
m.ide answer state answer if any . Wherefore, 1 nnw. in tin- presence of
G. H. and .1. K., do protest the .said bill uf exchan;,'e.
(i H (
,1 K 1
Witi
(Signed) A.
lUl Without Prejudice. Ihe two wnrd^." wiihout iirejudice,"
have jjreat imjiortance when ii^ed in a le;,Ml sense. 'I'liis use can be l>e9t
shown by an illustration, viz. : 'Two persons are at variance and likely
to be drawn into court, but the one desires an amicable settlement anil is
willinj^ to make any reasonable conce.ssion to etfect it. Ilc>, therefore,
takiH thi'se two words, iritlmnt prejinHvi', and writes them across the
u[)per left hand corner of his letter, or in the body of the letter, and then
makes his propusition, whatever it mij.'ht be. The etl'ect of those wurds is,
that if the other jjarty should not accejit the proposition .and teinisthus
offered, but the case jroes to suit, this letter cannot be used in court ius
evidence ajjainst the writer. Hence, by usinj^ these words in that way a
person who wishes to avoid litif,'ation may safely make advances to .secure
a peaceful settlement, and if not successful his case is not , jeopardized.
if the letter would be .simil.'ir io
loi'ni at the liecjinnniL
Witlniiil jiirjii<lii <• " 1 liri-'lii/ iiwlc t/ud the fu/lutri luj
A convenient
the followinj^ :
//(('/• Sir:
projii/Kition, rti-.
Also, a debtor who may be taking' the beiielit of the Statute of
Limitations may, by usini; these words, fr.iokly acknowleilije the justice
of the claim ai,'ainst him. and assure hiscrediior that he will still pay him. or
may even pay money to him, without reviving the legiil liit''Hit>/. Also,
in otf'ering to make payment c)n a disputeil account or claim by way of a
compromise, these words prevent the otler being held to be an acknow-
ledgment of the cl.iim. Every m.in should !)!■ familiar with their u.^e. .and
make use of them whenever occasion reiiuires, instead of trusting to the
iitlier jiaityV honor.
60
(S |M ili^KMKNT'*
|»M Cheques A
chi-i|it)' i» 11 iliiiiaii'l 'hall
nn II hunk. Tln'V liiivf no
iliiys of (^riici-. Kornifily
clu'ijui's were written jiiy-
iihle to Irf-ftnr: Imt the
form nhovvn nn tliis ]i.i;;i' is
till- Htaniliiril form now
uaetl in the rnitrd Statt-s.
iinil i|uit' •^'(^nornlly in
(."ftimilii.
A chi'fiiie is not l'';;iil
tcniliT, uikI a person run-
not l»' poiiijiollfii to acci'iit
it in iiayimnt tor .i ilt4it.
|JM> Use of Cheques
'I'lic jiriutii f nintiin;;
jiiiynii'nl liy clifi|ni' is I'l'-
coniinj4 f,'cniTil. It siives
tinio in countin;,' i'lmn>;e,
prevents niistaki-s in count-
in<', am! savi's lialiility of
loss liy iliitt. A n-tiniir.l
cli('(|\ii' from thi' liank is
also the ln'st fviilencr of
piiytntMit a man can liavr,
ami shoulil hr til'-ci away
the same as a receipt
ClieiUles are ne;;(jtinlile
the same as notes are, ami
stihject to the same laws.
A che(iue may he made
to answer for a receipt hy
inserlinfj after tlie amount
what it was j;iven for, as
"in full of account." or
" for rent, ' etc.
('he.|Ues operate as fiay-
inent iintil presentment has
hcen made ami n.'fiisMl,
when the ilebt immediately
revives.
Crossed che(|ucs are those
specially marked to he.
'iiade payable at a certain
liank, ami to be passed
throUf,'h a customer's ac-
count, instC'id of beinj,' ])aid
in cash over the counter.
tak
e ii crosst
'd cliL'
ipie.
IMMiU^KMKN'TS.
fil
'iOO Presentment of Cheques. A pliofjut' nciiviil hliouM U-
f»rf.s«MiU.l I'or [MyiiMiii iKit Int. I than iln tdllnwiii;,' iliiy. If it slioulfl In-
lulil uii uiirriisuimlilc tiiiiu, !iii>i llu' I'lmk fails, it wouM Ik- tin- loss of the
holiiiT. K\tii Iwfiity -four lioiirs, un<k'r certain circunistances, liiis Ijctii
lielil to III' im uiiri'iisotialilf tiliii-.
I'ri-srntmi-nt fiiiii iiuticc of ilishoiior arc just us iiccfssar}' wl,'' itii(|iu's
as with (ithiT iiills, to ri'ndi'r tin- clrawcr aii'l prior imlorscrs lialilt-.
A clici|ue rcfijso'l to l«' paitl Ky a liaiik upon which it was ilraw n
Hhoul'l he nttnnifil iiinni>iliately to tlie drawer.
Hanks usually reipiire the person presentiii;^ a chei|ue for payment to
indorse it. no matter how it is written, 'lUt this is only a cust<^)ni of the
banks and not law. A cheipie writtiTi ]>avalile to a certain person or
hearer, or to a certain person or order, needs no indorsement when pr-
8ented hy thf person himself at the hank on wliioh it was drawn, ami no
Will-infiirnied hanker woiiM n fuse payment simply ln'cause the [ia\'ei'
mi;;hl refuse to indorse till' ]iaper. It. seldom pays, however, to stand on
technicalities, and therefore the usual hank custom [irevails, hut law does
not re<juirt' it.
*iOI Certified or Marked "Good"' In somlini; ehei|Ues to
St raiii,'ii'^ I T I"!!;,' dist.iner^ the drawer wdi sumetinies have the ledi,'er-
keejier of the hank ' certify " or niark them " jjooil. ' In that e;i^i- it is
immediately charj^ed a;,'aiiist the drawer's account in the hank, just the
same as thou;^h lie had drawn out the money himself. It is done hy
writing the word " certilied " or " "^ood " on the face of the chei|Ue, ;;ivinf^
the name of the lank, ami th.il of the ledj,'er-keeper.
A certitieil cheiiui' sent anywhere in the countrv will he cashed hy
other hanks. A chei|Ue thus markeil " k.hmI " dischar;.;es the drawer
'iWi Paying Forged Cheques. If a hank j>ays a fori,'ed chei|ne
the hank is the los.-i-. It is the ^ 'ine with "raised cheinips," wheri they
have heun raised fr.-m a smaller to ;i lar},fet suu'. the hank |. i-es tlie
"liti'erence. unless it can !)<■ sliown thi\t the drawer's carele.s.^nesa in writing;
the eheipie facilitated the foi;,'.iy Kur instance : If you were to write a
cheque fur " five" dolliirs, and conuiienceil so far from the eiiii of the paper
that the former had sutficieiit rnoiu to write " tifty " hefore the live, thus
inakinf:; it " tifty-tive," and the imitation in the writing,' was f;ood, the liank
Would not be helil responsihU.'. A!so, in cases where the drawer is careless
in writinj,' his sij^ature, having; no uniform style .so the hank coulil not
positively identify his sij^iature, then the hank would not be held
re.sponsihle for payment of a for;,'ed cheipie.
••JOS. Certificate of Deposit is a receipt ;,'iven hy a Kink for nioney
deposite(l. It is negotiable and bears interest. It is thosame ivsa certitiefl
clieijue. aii<l will be cashed by any other Imnk ; hence a convenient way
of carrying money when it would nut be desirable to have nmch casli un
the person.
G2 Iil'K lill.l.^. KUUKK-- AM) UL( KlITS.
( liAlTHK VIII.
i>ir, i:!ij>. ()i;i)i:i{s and i;i:ci:irrs.
•i<M Due Bills A .In.' I'ill is a writtrii .■u'kncnvird;,'!!. •in ..fa .I'l't.
Tlicy arc nut iiu;;oliubio, oitlier liy ili'livi'iy or l)y inilDrsc'ini'iit, no matter
if the wonl liniri r or onlrr is uscti, hfcause they are not a promise to pay.
They iiia\' li'' tr.iu--t'ei'n'il liy unsniniuinf. '\'\\i- t'ollowiii;^ i.s a v,.py
^oo'l loriii : l"or value n^e.-ivid, I herehy a.ssifjn to .iaiiu's Smith tlio
anin\.-.l due liilL \V. WiNIKKS."
This slip of [laper sliouM then h.' attacleil to tlr.- dii.' Kill aiid .lanes
Smith slu)ulil notify the maker of tlie <ine hill that hr had [luicliasrd it,
.•Mid that the money is to he p.aid to liim oidy.
•;0."» Forms of Due Bills.
I, I'av.iM.' in .4 Is,
ToKoSTo, Aui;. 4th, 1000.
])ii' Jiimis Sii)illi Tin UoUum in ijoikIh j'rotH 11" r sfiifi',
<\0^)^^. \\ . WiMEiis.
1. I'ay.ahle in money
ll.\:>llI.loN-, An-'. 4tll. r.MM).
Ihif Ja 1I11.1 Sii'tth for r.ihir receiri'd Ti 11 lh,luu:<.
e-io.oo. w lmk.
;!. < )f wh.'lt is j^eiu'i il'y ealh I .an 1, < ). 1',, and ]iay.ilili' in cash.
C'lnvriiiiiit .and the p.Tson- name is not usu.iily riiscrted
II.VMii.ToN. An- 14tli. i;»00,
/. " /'. T'l; ,it.i-nr. Ii,,i;,,rs.
W WlNTKIts.
\ I'aye.hle in sjii-citic artielfs.
k
T-i 1X1)1 IN, At
M.St. KM II).
I), IP Jiunr-^ tiinitli. III Ilia ston . Twrntij llirril^ 11/ Surlln rn
.s>V .I/7-/..S „f;,o,M qnalit;/. y' spki.uin, ;.
'iWt Orders. .\ii md'-r .a wi-iUiai riinirst, to d>li\er f,'ooils, or
money, <jn account of the per.soii niakinj; the reijurst. Wluai sneh onliT
is received and acceded to, the per.son si;_'iiini; the ordir shotiM lie charj;e<l
for the anioinit It the order is in fav./r of a third jiarty, the nai )f
the party receiving: lie' ;;oods or money should he meiitioneij in th,' entry,
and the onha' pri'si-r\i'il until srldenn iit is m.ad''.
They ditl'er from a draft in hein;,' moir sinijiji- in form and ;;(.'niT.illy
for };ix)<is in.stfcad of fur money.
1 I.n.MinN, Au:.'. J-Jth. I'MIO
Mr. .I'Dii's Siiiilli :
Diitr Sir, — I'li'itufi pii'i III /ffiir/t Unmlci m- nnlrr Thi rlii-lirr
Ihilliii'.i mill iliiir'/i' /III' ml III f to itrriiii lit iij
?.S.').00 11 Si MMV.RS.
Mr. W. W;„l.r^
DI'K IIII.I.S. OUDEKS AND HECEIl'TS.
'l'oi!(iN-TO, All-,'. Iltlll, 1!H)0.
en
Dim- Sir, — l'lc(i.i> let Mr. H. Jirovh.i /iH"' from i/mir sforr
'ifi'ren Dollars in mkA i/o<ttl.i us he mmj iri^l, ami '-htirite to
ilrciiii i)t of
Jamks Smith.
(;rEi.}'ii. Atii,'. 2flth. 1900.
Mr. ir. Wiiitrrs:
ll^.n- Slr,~l'/r,t.-.r /„ii/ In Ihf hr.in r. Mr II l!r,„J..^.T/'irfif-
jirc L)olliir.< from the f,i m/.i left 'rill, ij,,u_ i/,,'itrr'l'i '/.
II. SlMMEU.S.
'Hi'i Receipts. A iTCript is a written .•irknowlnj^nirnt ..i' liaviii-
recfivtMl a certain sum of uuiiiL'y or otluT wiltie
A rfCri[<t i.s not alisolutt" I'vidmcc of j.aymcnt, Init it throws tAw
liunli-n of ]iroof upon tli.- i./uty 'vlio ini]i"uchc,- it. It may liavr l.c^n
ohtaintMl Ijrforc payment was .'uad.', and then iwiynirnt refu.sl-d, or it mav
have hfcn olitaini'd tlirou;,rli fraud, or for somr other purposi' , l.ut thV
Imnh-n ,f proof rests upon the party wlio i;av.- it to sliow wherviii it i.s
not \aiid.
A rce.'ipt jrivcn in full of all di'inands to date woul.i not destroy the
cre.litors claim for an additional itmi of account if an error liad'hcen
made whicii he could .satisfactorily prove. It is evidence only that so
niucli money had lieen jiaid.
A (.•luiue receiv " and haviuir marked on it " in fidl of all di'iiiands"
or " in full of accoinn wliicli does not cover the account in full, may still
be imlorsed and cash.'d at tin' t^ank in the usual way without losiiij: the
balance of account. If tlie debtor inserteil those words in the clmcpie
throu;,'h mistake the Court would correct it, if proved ; an<l if done inten-
tion.ally the crmrt would al-o order the corr.-ction. If, however, it stated
that the .■iniount nIiouM !«■ ]iaid on the coniiiti-n of its bein;,' received as
I)ayment in full of account, then its acceptance and indorsement bv the
creilitor \vould cancel the balance of debt. It would then be a ""com-
promise" settlement .-nid ilinclinJ,^
It is a, credit. ir's dut\ to eiv.- a receipt on the pavnieiit of a de),t. Init
jrenerally h- cannot be compelled by law to .jo ,so.' Where he li.iMsa
(l.d.tors note, or any ..tlier collat.'ral security, he is onipelle.l to surr.ti.l.'r
it oi\ paym.'iit, also a inort;,'ai,'e when pai.j.
rruiiii.ss,iry notes, ucceptances, clie.|ues. etc., wh.'u |.ai.l should invari-
ably bo retained ;u« vouchers of payment. K\.rv form ..f receipt, or
other evidence of payment .if a .|ebt,"shoul.l b, secur.ly ]in'.serve.l w liere
they can be c.nveniently referre.l to wli.n nee.led. Hl-ceipts oft.'U .save
loss of friends, as well .as l.iss of money, in tie- paym.nl .)f an acciunt the
acconil time.
When a ri.'ceipt taken from an a<;.'nt or collect.jr it sh.ad.l have the
nam.' of the principai .in it, as well as thai of the a^'ent .>r collect. ir.
Wh.'n a receipt is likely to be refus,..l. payment shoul.i not be ma.l.'
I'.xcept in th.> ]iri'senc.' of a witne-^s.
\\ li.'ii .-i r.'c.'ijit is ;fiv.'n f.ir mon.'y p.'ii.l on a iiot.> ..r other roritr.act.
t;4
ni'K IUI.T>, (il!!>i:iiS AMI HKcKII-rs.
and an indorsoniuiit niiulo, tlu- liittfr slumLI siatr the fact that a ivcoipt
was ;;iviMi. ■iii'l tlie reci'ipt should stati' that llii anmunt iiad also been
imlorsnl (111 ihi> note, or oilier written instrmiu iit.
The iMlldwini; forms of receipt are in general use:
'iUH Receipt on Account
THuHdi.n. An-. -28111, 1!»00.
Rfi-in>;,l I'miii J'lrnra Syiiilh ihie Hainlrnl Ihdl'i ri an
((Ciriiivf.
>S|0000, 11 SlMMKRS.
fOt> Receipt in Full of Account
■rnoKi^i.i). An- -Mh. Utoo
R,,rin,l from Jdiws Siiulh lim llnixhrd I'^'lbir-^ In full
of <ir, limit to tlatr.
.■^IDO.dO. ■'■ I'-ATTEN.
••ilO. Receipt in Full of all Demands.
'rHiiltiiLP, Sept. Mil, 1!'<)0.
K'o'nol friiiii Jitmes Siitilh diii' JInnJrcl ])nll,n-< in full
cf iiU ill ii(ini(ls to (lati:
■ SKIUOO. H. Sl-MMKKS.
•ill Receipt for Rent.
I'.MtlS. Srjit. Isl. i:i()o.
Receivf'l from .J,iihi\< SmUl, 0„, lI,ii,,/nJ luJI.i ,■< f-r Ihni'
months' ri-nt '•/ .^t.o-i-, .\<i. ', Si. I' .ul SIr.ft. (///.- A/'ril Isl.
6100.00. ' •' H.vrTKS.
'iVl Receipt of Money by Hands of a Third Party.
!■'. iUKST, Sept. (ith. 1900.
R(-rciv'il fi;nn I>. trr Sii, ilh. I''/ H'- Im nd.i "/ II. ''• ;<;/."'«'
Handnd ih.liir$. ut f<dl ■full ./-'//i-ne/.s'.
e^ioooo. *-'■ H'""»-
'ii:i Receipt for Legacy. , ^^^^
Kii.!..M!XEY, Man. Dee. 1st. 1900.
R,,; ;>■,',! from. J. /■;. .{tunr.'.rrrutor of the hist n'lll ,nol
t.sl,iiio)il iif llnir>i Williams, of Win n iimj, dfrrosfl . tl,r .s,/„t
of Four Hundred 'I'ollnrs, in Jull of a lajncy licijumlhid /,, mr
by suid will.
Ai.iiEur llowiK.
'^14 Receipt by Clerk.
Wf.i.i.anii, Sept rjth, litOO
R.ri'iri'd of I'flfr Smith Fort'/ l)oll<irs, i n fall of ocrouut.
?t-00O. (• ii,„„, ,,|,,n,.H).
'41.%. Receipt for Note
TnUuNTd, Oct. IGth. 1900.
Rfciivrd from J'rlrr Smith, notr at four months from this
dutr for One flaadred Dollar^, in full of account.
SKiOilO. .1 Haiuunc
DUE HII.I.S, OROEKS AM) ItEf'EIl'TS.
«l« Receipt for Property Held in Trust.
Oakvii.i.e, Sept. 16tli, 1900.
Receivpd fi;„a J'rt.r Smith, one .jol.l w.i/ch, to hr />,!,/ m
truMt tor f,nn <in,l iMirercd to his unbr ,r[tlumt r.rp,„.,r.
'I MrsKo.
'^17 Receipt for Payment of Interest on Mortgage.
Truro, N.S., Sept. 1st, 1900.
Received from Peter Smith. One Hundred Dollar.'^ heivq
amount in fall for .si.r months' interest, due Septemher 1st on
his viortfjarie, in nvj favor, dated October .'nd. /\.'/,v ohlrl,
amount is also indur.-teil on th-' mortgage.
S. ( . Al.WAUD.
'ilH Receipt for Money on a Note.
(utl.M.siiv, Sept. 4th, 1<*()0.
Ii>r,ired of Peter Smith. One JIaiu/red Dollars in part
I'oyi,,. nt for his vote in mij favor, dated Sept. ',[],, Isit.: v'hieh
amount is also indorsed on the note.
66
*100.00.
1) SVKFS.
l<|Ult
(iveli luiilcr
.,!.». Releases. A ivKa.so is a written discharp. of a ,l.l)t, eliii.n (ir
aeiniii..i hel.i uiram.st cue pcr.soii l.y another. Xo special form of vvor.lin.r
IS necessary, snni,ly iisinj; wor.ls that cnnvev the iritenti.iM to n-lease
and dischar-v the person from tlie debt or ohli.'ation Jt is <
seal, and will di.scliarj,re any del.t whrther ack.Km-ledf,'ed o.- not
1 M..ases may he nidividual, as when one person rel-ase.s atioth.^r from
a d.l.t or den.and, or tV^^y may Ih3 mutual, as wi^ere two per.suns liave kvn
tiadm- with one another and have contra accounts runriin.r for a cnsid-
tline. When a st'ttlenient is made, thev
.•rahl
eacli otiier Crom all deinamls.
. very frei|uentlv relea.se
A relea.se will har out anv chanc of
openm^r „,, the matter aKHin hy showinj; that a mistake had" he.'n ma.ie
wliereas a mere receipt in full of demands would not do so
When a h,,lde. of a hill ,it or aft.T its maturity al,solutelv an,l
unconditionally renounces ,„ writin- his rijjhts ,.ptu,si tie- .icceo'tor or
Iiiakei, tlie bill is discharfjjed, '
'i'iO General Form of Mutual Release.
CbiS SnbCntUrC made the 17ll,. lav of September \i) 1<I()0
between Henry Hibbard. of th,. first i,art, and Francs Dishrr of the
second part :
WiiKlilAS, then, have been .livrrs aeeoimts, dealin-s and trans.acte.ns
between the said parties hereto respectively, ,,ll of which hav,. now been
hnally adjii,sted, settled and disposed of, and t!„. s:uA parties hereto have
respectively, a;,'reed to jrive each ,,ther the mutual nd-a.ses an,l ,lis,.han'es'
herematter eontaiiied in iiiauner hereinafter expressed
NoNs. th.refore, the.se Presents Witiiesseth, that in consideration of
the premise.- and of the sum of on,: dollar of lawful moi:cy of Canada tu
a
-^1
m
I'ltlNill'Al. AM! A(;KNr.
eacli of tlii'iii.tlii- said paitics lierftn, ivsiMCtivi'ly, I'aid by omcIi of tlieiii at
or licf.irc tlif scalinj; aii:i .Iflivcry h>TiM>l' (tliu nci'ipl of wliicli is luTotiy
ucknowl<Mlir,Ml) cat'li of them, tlit^ said jiartios li(,M-fto, rcspcL-tiv.'l)-, dotli
licnthv for liimsi'lf ami lirrsrif, nspcctivfly. liis jiiid her rc'^jii'ctivt' lifir.s,
executors administrators aiiil as-iL;ii>. romisc and ivlras.' and forovcr
(iciiiiit and discliar^Cf tln' oilier of tlirni. liis and hrr luars, ixccutors,
administrators and assi;^ns, all liis, luT and tli'ir lands and ti-ntinfnl>
I'oods, ciiattfls, I'stat^', and rfTects, ri,'s]irctividy, wiiatevi-r and win ir.sovcr,
of and from all dcl)ts, sum and suujs of mont-y, accounts, reckoning's, actions,
suits, cause ami causes of action and suit, claims and demands whatsoever,
cither ;it law or in i'i|uity, or otln'rwise howsoever, which either ot the
said parties now ha\e. or has or ever had, or mi;,'ht or could have a^^ainst
the (pth'r of tlein. on any account whatsoever of and con<;einin;; any
matter, cause or thiuL.' whatsoever lietween thuin, the said jiarties hei'i'to,
respecti\(ly, from the be^iinnin^' of the world down to the d,ay of the date
of these presents.
In witness whereof the said parties hereto have hereunto set their
h.iiids and seals.
Si;jued. sealed and deli\. red | JlvNiiv IIiMnAItu :-fi
in tl>e i)resence of Fi'.ANeKs DisUKi;. ^
(iKoKi;i: IvNIlilis. ' '^'
CIlArTHK IX
PiaN'MPAL AND ACHXT.
'i'tt Agency i-- '.vln'i.- one jie'rson iransi<-ts busin.'ss for another.
The err.ind lio\ , the clerk, tli- co'idurtor, eu;,'ineer, switchman, the
commission merchant and the farm laborer are ,ill au'entsas much as tho.s.-
,.,i(;,i<red in selling' machinery or fruit tre.'s on c(jnimission or salary, in
alfbranches of business wliere ..ne person acts for ;uiol!ier iheic is an
a;,'ency,
'i'i'i The Principal is the one who enL;aL,'es another to act or do
}.iusine,',,> l..r bini, .\nv one e, .uipetent to contract may act as prinei[)al.
and he niav dele;.raie to .-inoth.-r the authority to do for him atiythine;
that he cando for iiiinself, but no more.
'fi''i The Agent iii.iy be ,uiy person the ])rincipal may eniploy-a
minor .r any iierson with intelli;,'encc enoueh to follow instructions, A
niiiio althoiljrh not competent to <'ontr.ict f.ir himself, e.ui, a-- .in .a^ent,
make any contr let Ins principal could iuak>
'i'i4 Agents Appointment, An ,iu'.-nt may be apj.oint.'d siniply by
word of mouth, -r bv ['■ ■-^■■v of Attorn. -y, ,.r it may only be jrathered Irom
f.act; , ■ ,
A |iri!icipal who ratifies ,an act which his ai:ent was not .autlionzed
to do becomes re.sponsiijlc for that act, and also for all similar acts tliouji;h
they are not ratified by hinv
IMUNiMI'AI. AM) A'IKST
67
To eva.l,> hah.lity, or to n.lus,. to inak,- thr tra.isactioi. his .,wn is
mrry y to refuse to accept llie l.enetit.s accniiii- fro,,, the traiisactioii
II'- may ratify it either l,y express wonis, ,„■ l,v resolution ,,f the
'invel..r.s i| a stock compaMy,..r it may be by .simply aJeepi i,e' l he l„.,„.titi
aecruini: tnuii the uiiautliori/e.l l.iisiiiess so traiciacted.
"i-"' Appointment by Power of Attorney. Wh,.,, the business to
be pertorrne.l l,y the a-eiit is of such a natuiv that it renuires hi,„ to si.r„
notes, accept drafts, is.sue checks, si;rn .leeds, mortfja-.-s, .t,' , .,r to ent"r
into other contracts under .seal, a formal .lociimeut und.r seal ,.,-,lled a
lower of Attorney, is usually -iven. This I'wuer ,,f Aiioniev mav be
fjeneral ^ ;,'ivin<,' tlie .•ijjent power to transact all th,. usual business nf" the
pniieipal: „r it in.-iy be specitic-^'i vin- authority onlv to on,, or more
particular acts, ami no more. A Power of AttornVv m'av also b,- proved
.y bein- execute,! in the presence of a notary public wlu, places thereon
Ills ;itt,'st,iti(in ot its ,'\,'eution.
'i'id Form of Power of Attorney.
ivN,.w Ai.i. Mi:.N i;v riii.:sK 1'ki:sknt.s. that I, .lames Kverirediam ,,f
the town t.i .Str.ithroy, in the County of Mid.ile.sex, .uei rr,rvinc," of
( ntario, men ant, do nominat.-, constitute an,l appoint .Jam,.s Mari.m of
th,' ( ity,,| ( hatham, County of Kent, my trn,. and lawful att,.niev 'for
m,'. in my name an,i ,)n my b,.half t,) (1,'ive in full th,. work to be ,l,jne by
M irion lor Hverin;^ham ).
Avi) for all ami every of the sai,l purpos,.s h,.|eirib,.fore m.-ntioie'd I
d.) iiereby ;,'iv,. an,l ^r,.,i„t unto the .sai.l .lames Marion, full an,l abs,,]u'te
pow,T ami autli,)rity t,) .lo an.l ex.'cnt,. all act.s, matters an-i thin>rs n,.c,.s-
sary to b,. .i,)ne for the full ami pn)p,.r earrvin;: ,mt ,,f all .sai,i''matt,Ts
entrii.ste.i t,) him ami ,lo liereby ratify and ■,-,,ntirm, ,.,n.l a,rree to ratify
and c.ntirm an,i allow all an,l Nvhatsoev,.r th,. ,sai,l .lames "Mari,m shall
lawlully (io by virtui. thereof.
In witn,..ss whereof I iiay,'
Au;,'ust, 1 !»()().
.Sij,'ii,..|, Si.al,.,i ami ii,liv,.r,.
ill the jiresence of
A. L .lo.NKS.
.set my li.'ui.I ,.ui,l s.'U this .Hist ,lay of
'fit Limit of Authority. \
.Iamk.s |.:\ kui.m.ham. ^
' ."' """".""•J' -v sij^'ii.itnn. by procuration (as a,.-ent)
operates as a notice to the public that th.. per.s.in so .si.rnin.' lias but a
limited authority, and tli.. principal is boun,l by such si>'m7ture",.nly .so far
as tlie a.'ent is aetin,; within th,' actual limits .'.f his antliority. A.s'a usual
thinjr til,- instructi,.)ns pven by the principal to an a.'..nt aiv to ,io a
speciKc business, also liow it is to b,. ilon.- : but in carryim' ,Kit the ,letails
the a;;ent is allow,.,i con.siihrable latitude II,. must' foflow his instnic'-
ti.ins. II he excei.,ls his authority lie ren,i,.rs himself liable, if he is to
sell g,>o,ls for cash he must not s,Il on cre,lit ,)r accept notes ; if to collect
money .)n accunts this w,mi1,1 not autlwu-iz-- him to issue notes ,,r .'icceDt
di-itts in his iirineipals ii;un,..
'i'iH General Agents are those wii,, hav,. antliority f) act in all
capacities in the pl.ic,- of their priii(.ipal. or all in a certain" locality, or all
^*'-. <?.:;•
68
riilNill'Ai, AN!) AiiK.NI'.
of ;•. certain kiinl. A ciiimnissii.ii nn'rcliant wouM he a {^'I'li'Tiil a|.'iMit. >o
also ari' .S^'cn-tarii's, 'I'rtasurcrs ainl Mana^'crs of Stock ('oiii]iHiiir>< 'I'tic
acts uf 1,'iui'rHl ai,'i'nts liiml tliiir principals with respect to tliinl paitics
cVfii for fra\iil or nr;;li:_'.'iic'' on tlir part of tlir a;,'>'iit.
'i'iii. Special Agents are thoM' who arc liniitctl to a certain class
of action, an 1 their principal is not rcsponsihlu for what tlicy ilo out-'iili'
of this. t)n this account parties dealing,' with any special a;^ent -^honM lie
careful that their contract comes within the a;,'ent's authority if it is
important to them thai the (irincipal >lioulil )"■ lieM res|.on.--ilil('.
'i'.W Agent's Obligations to Principal —
1. To use the same care ami forethoii;4ht in the mana^'emeiit of the
husiness that he would if it were his own.
2. To f<illow iinjilic'Uy the principal's orders exiept in cases where
the circunistanc'-s would make it nianifestly wron;,' l(j do so. f'^r
instance : Soinethinf: has occurred after <;i\ in;,' the instructions wliicli the
principal had not foreseen ami which umild cause the orders to work to
the disadvantajie or injury of the principal if they wi i. carried out. i.r
when' tlie onlers were to perform something,' unlawful.
:; To k.ep an accurate record <jf all husiness transacted.
+ To keep the' ;;oods and property of his principal si-jiarate from liis
()Wn, ami from that of other jjnities. In casi' they should heconie indis-
tin;ruishahly mixed the principal could claim thi' whole.
.'i. Ill case the husines> is transacted in the name of tln' |irincipal, as
is usu.dly di'ni' the money that may In depositeil in a hank slmuld also
be in the name i>f tlir jirincipal
*i!!l. Agents Liability. He is liahle to his principal for any
dama"e that may occur throui^h his ne;.;l!f;ence, and for any loss tlip* may
arise throu;,di his failure to cirry out his instruction- If he departs from
his instructions and thereby secures any j;ain the principal has the tirn.-lit
of it. but if his deviation produces a loss tl-.e a^'enl is liable toi' it.
He is liable to third ]>arties if he jroes beyond his a\ilhirity. In that
case he does not hind his principal, but he rmdirs himself personally
liable. A person a-ssumin;: to act when le- has no authority renders him-
self liable for dania;res.
He is also liable t" third paitics lor any wilful injur^. cnuimitt. d
ar;ainst them. The fact of his bein;; an a^eiit do. s not relieve him froui
his oblirfations as a e/'//'rc». hence even while in the dischar^^'e of his
principal's business if in- wantonly ci>niinits any injury he alone is
liable. He is ,'dso liable for any criminal action of which he may be
<;uilty.
He also makes himself personally liable to third jarlies if he should
iinproiierlv sij^n a note or accept a ilraft by sinning his o«n name as .(r/< ;//,
If, say, W. Winters, as an a^^ent, were to acce]it a draft by writin;; II'.
Winters, A '/I' lit. lie would be peisonally liable feil' its ]iayment. The same
is true of .Secretaries. Treasurers ami .Man,'it,'ers of Stock roni]ianies They
.should in every ca.se, when si^'nini: for their company or tluir princi[ial.
I'KISTII'AI. ANI. A(;K\r.
69
",'f" ''''■ "■'""'■ "'' II"' t'""il"uiy or iinneiiml in (■o.i|u.ioii..n with rl„.ir own
I .'i'' (dII'iU in;; ill-.- suilalilr rorms :
•Iamks Smith,
/''•/■ ir W niters, Ai/i'iit.
W. \\iNri;i!.s,
/' '/■ ,fil iiirs Sill itii .
Jamks Smith,
I'rn (•.,„ W W,„t,.rs.
I»"MI\|ns TltA.NM'OKTAnON Co. (IjMITI |>)
J'rr If. »•;„/,,-. M.n,;.,.',:
\V, \\'i.\Ti;it,s, .Ma\A(;kk,
Si;ii,,:lf„r mill 1,1) I,. /,,,!/ of 1 1,,,,,: moil
'r,:ni>t/,.,r/,it,,,,i Co,', l,ii,ui,.,l ),
An .■i-nit niay .l.wmi." hii:,.s,.|f .ahi-r l,v th- i.Tni ■ jht" -i.ro" " nro
co„, or th.. wonl - f.,,-, ' H.. nnrst always ,Ii,sd<.s.. ,1„. fact that h- 'is onlv
a.i ap,t, ,>r l,. ,nay h.. hrhl iKTscnally lial,!., u,„i h. n.ast sh^n his ..rin'-
cil'Tl s name a.s wrii as hi,s own, eith.;r tx-foro or al'ti-r it,
•.':!•.' Principars Liability. (;..n,.ral a^..nts hind th-ir principals
■■•n.lrrn,^ then, l,ahl,. to th.ni parties even I'or the fraud or ne.dVct of (he'
^<-nt. I lu- employees of Kailroa.l an,l Stoamhoat Companies," tc are all
general a^r„„ts. When passengers are injured throu;,-!, ,u, accident thev
do not enter an action ,a-ainst the ca,,tain or eni,dneer, whose ncrji-
-ence n>ay have caused the aeeident, hut thev sue the companv-The
f>nncip,al, ' -
Special a-ents do not hind their principal only in s., far as th,-v k,.ei,
-.tinn the nnnts of their authority. If 'they pass hevond tins," or are
-udty ot a Iraudulent act. they only render the,n,selves liahle,
•i;W Dealing with Agents. Third parties .should ascertain the
authnntv possessed l,y spec.l .a-ents if they would protect themselves
^^hen con rac'tm;,- w ith such. An a,;;ent .should alway.s have the evidence
o lus.autlior.ty with Inm. and if he has it not no important transaction
sh.mld he performed w.th him. It ,s not enou-d, to !„nd the conim
that an a;,aMit declares h.mself to he either a special or ...neral a.-ent ^'
recoJ:!;:"rK:r;he i:;;:^;::; ^^'"^ ""^ -'■ ''"'•""•''>• *" — -^ --t he
note to d;:];.^'r' ot!.,;'"^'*"' '- •"*''' ^" '"■ '^"'■^ ^'^'- ■' -"" ""''- ■"• '■- ^i-
c.nntt lir'T' '"''."'" '''"' ?''"■''"' '''-""' "'"^ '^^ e.xceedini,^ his authority
c.mnot be enforced .a^'amst his principal.
affer'ti; TT. ' i'""""'''.^' I'i'- .^^ith his principal: if. however, he acts
alter the death of the principal innocently, hoth are r.dieve.i
Notice pven hy the aj,'ent to third parties is notice .nven hv the
u'epSSl """"■ """' ''■ ''''■■'' '""''"^ '" "" "^""'^ "* ^'^'^^ «--' ^
11
70
I'HISi ll'.M. AM) Ai.KNT,
'i.t4 Sub-Agent is nnr wlio acts unili v aiiothiT .■i;;riif, I'ilhi r ;,'iiii ral
or sjiifial. 'I'ln' •aiiii' ('I'iiicipl'S aM<l laws rule lutwi'di the ii;^ciit anil liiw
»uli-a;,'(iit us ixi^l liilwicii liiinsflf iuul tln' j)rimipiil. Tlii' n;^eiit is the
jiriili'iliul to till- sill' a;,'' 11 1.
'i'M Termination of Agency
I. \>y la]'si' I'l liin.- At tin- ixpii'at U'ti nf tlif tiim' t'.ii wliicli the
llj^ftit was a['|iiiiiitr.i tih' a^ji'iioy cciiscs uiik'ss tliir.' lias li.in a I'-.ip
jHiintiniiit 'I'hr II- a|.jiointi!ii'iit iici'il tiot mressiirily hi- I'oricial, hut hy
any "i th'- im aiis aliTaily inrnliotii'il for tiic tTi'iitioii of an Hi;iiic\
:.', (.'■■iii|'litiiiii nl' llir umlrrtakini.' ti-fliiiiiatrs thi- niltlmrity ul" the
Jl^Ollt.
.'i. A lrj,'iil iTviJcatiL'ti iiy the jiiiiii'i[ial tiiiuiiKiU'.s tin- u^jcncy. W'h' tr
the iiifenoy wmiiii not he lor any ihlinitr tiiin. or the coinjiletion i I'
speeitie wofk, the i>fiiici|ial conhl withili-aw th.' [iMWrrs hr hail ^jraiitei; .
litit if it wen- a ilitinite time not yet expii'i'l of a s|ii(ilii- work not yet
colnpleteil there luilst be stitliri< nt eaiisi- hel'ore a re\oeatioii euiilil take
Jihiei- An a;,'elit exceeilin;^' liis ailthoiity, ;,'nilty of I'lallil, or heeoiiiin;,
iiii-a|.ai-itateii for his ihities woiilil he sutlii-ii-nt eiiuse for liis dismissal
i. l)eathor iiieapaeity of i-ither priiieipal or a;,'eiit ti-nninafis tin-
a^XflfV- Insanity or ih-ath of eitliei- principal or a^'^ nt, op tin- iiis. ■Is. i.cy
of till- prim-ipal ilissoKes tin- a^jeiiey.
Il an ai,'ent s appointment was hy a ilncnimnt unihi' sea! it wi uM
ii .|uire a siali-il in-triiiiii nt to caneel it,
'ilUi Effect of Notices. Tenders, etc Xotit-e ;;i\(n to tie- a^. nt
is ilei-nietl to he ;,'i\i-n to the piini-ipal at the sane- tine- it was ;4iM'n to
the a;,'ent, ami ]payments teiiiji |-eil to the a;,'i-iit is pa_\ niml t. nderiij to the
j)riiu-i].al. Notice or payment teinh-ri-il hy tin- at,'ent to thi- lliiril ]iarties
is teli'li-ri'l h\ tin- pl-jneipal
'i'.ll Ratification and Disaffirmance If an ajjeiit shotihl >U>
l)ilsiiii-s,s fur the piini-i|iai which In- is not autliorizeil to do and ihe
principal accepts it. lie tlienliy ratiliesit ai 1 thus I onics responsihle,
iKit only for tliat particular tiansaclion hut for ail similar acts. Hatiti-
cation of an act has the same eli'eet as prior authority, liatitication m.-iy
be etii-cted in two Ways: ( I ) By i-xpn-ss wonls. In case of corporationi^
nnd stock coiiipai'ies it is u--uail\ doni l.\ ii-solulion i -J II \- accept in-,'
the bciietits accniin;,' from tin art
By refnsini^ to make il,.- tiansnetion his own. rltln-i- hy expirsH
words or by refiisiriL' to accepi the l.i-nefits aci-uiin^ fioniit is .ji^aliiiiniiii,'
the act.
VAsi 1 It ANI> sFK\ AST. 71
( iiAi'i'i:i; x.
M \S'n:i; AND SKIJV.WT.
'i:tH The Relation suhsistin;: l^.twi^n M.isi, r an.l S.r\,nit is in
innuy ivs|„., t. tl„. ,,.,,,,.■ as tliat siil.sistin- l»'t\v.',;u |,nMcii ai arid a-'fiil so
tliat what has 1h.,i, -ivm i,, tl,r |,ivvi.,iis diaptor will, in ncarh" every
parti.-ular. apply h,.,v,a.,.l sh,„il.l l.r ,va,| in .■ontH'otir.n will, tins cliapt.-r
111.' Miastrr IS llir .■niploy.r an.l lln^ s..|-,aht istl .npl.,yo.. In
onl..rtui»nstitut..acoMtr,K-l .,l' l,irin- an.l s.rvi,.,. tliiiv must I).. .-ith.T
an f,rj,r,.ss,,/ i,r ,m/,l,e<l mutual ( n-ajrcni.nt I in.liiiK -,»«• party to hl,r an.l
rcmnnrnite an.l tli.. (,tlicr to .sot, f,,,- sonic (l..t,rn,inat<- time In cas. s
;^''"-''^' *'. "ipl.iV.r onlv ajTrccsto pay as Ion- as tl„. servant rmiains
l-'.-.vm- II ..pti.,n;.l ritlicr with tin- servant I,, s.r^r ,,r th.. nia.st.T to
• ■niploy. th.T.' is I,., c.iilr.K'l of siTviei- an.l hiro,
'i:in Contract of Service and Hire Oral as w.ll as wiitt.'u
a-nriiirntslMtwr.ii nu,.t.r an.l .servant, an.l hetween master an.l juurn.v-
maii or skille.l lal..avr m any tra.l.' or eallin- are hin.linj; unless the term
exceeiis oni> y.'ai'.
ir fora Ion;,-,. I- peri,,,] ,han on.' year it sIhmiM l,e in writing ami if for
11 short, -r p,no.l than one year, hut which .l.,es n.-t e.,mnen<v in time to
l.<' i-.aiiplet.-.l within the year, it is re.|iiir.Ml f. he in wntin-
N.. vohiMlary contract of servic sli;,ll he l,in lin- .,n .■'ith.T p;irtv f..r
.'I l..ii-yr tini,. tliau inn.' years from .l.it" .,f c.jntrael.
li ttn . rj,rrs. conlraei h.i. l.eei, lu.el,- for liir.' hetweei, tie' parties a
c.ntrael will be ,„;.„„. ..I if tie' Mrvi.-e is pe,'f,,nne,|. nnl.'ss it is with
near relati\'es, as with p.'ii'''iit or iiiic].-.
If service has heen i..'rforme.| witliiait anvlhin^ h.iie- sai.l about
WM-p //,, l.nr ,,r,s„„i,'.s that the j.arli.'S a-r I'for ill.' .■usiomarv wa-us
tor that kin.l ..1 s,.rvice jiaul m thai e.,mhuinit\'. lliit the l;iw will not
presume eith.'r-a contract ,,f hire ' or ' ;,i, a-n-.'i,nnl t,, pav wa'^es "
uh.r.' servu-.' IS I'.iid.'i'.'.l u-ill a,- r.'lat ivs, as a i,,uent or unci,' ' In
such ca.sesan .'.xpn'ss h,ri„_r ,„n-t \„- ,„■■..,./ i„ ,„.,|,.,' t,, siipp,,rt a .'larii
for wa^jc.s. Where it is ,,.,1 spe.-i.iljy a-r 1 t,. the cntrarv. wa.'es wouM
he jiayahle at the eii.l of tli,' tini,'.
\ p.'rs,,i, a-r.'ein- t,, s-rv,' as a lab',r,r ,,r el, rk c,tnn,,i 1,,. c, .miHlle,!
toiultil his a-i','..ment. but ,!ama,i.','s mav be r.'cov,'r,,l f.,r bi',.a,-li ,,f th,.
conti-aet
A p.Tson a-reeino- to hire anoth.'r f,.r a ,lav. n\, .k. ,,r month cannot
h.' eonip,.lie,| to turni.sh worl;. but if tie- one hired presents hinis.df f,,r
Ner\ie,' .'a,!! ,lay li,' e.'in c,,!!-',-! his waives.
'i4il Form of Agreement for Hire
Tills .\,,i;i.i.Mi;.N'r, ma,l,' the :ii',l ,lav ,,f .\pril. I<H»0, between John
Smith, ot (iranlh.im. yoman, .,f th,' first part, an.l James Robinson of St
(.atharuii's, lab(.,i'. r, i,f the second ])art.
Witue.sseth that I he party of the seond i)art a;,'iv,.s with the partv
.)f th.' first part 1,, s.'rv,. him as a farm l.-iborer an, fm. rural s,Tvaiit' for
71 MA>rKu ASH -^Kia ant.
tlio pfi-ioil 1,1' i.iir yr.ir (]■ tl]i>< .l;it.', arj.! iii all tliin;,'s to I'.iithfiilly
observe an.i .lu all llie ira.s..n,ililr \vi-.lirs ari.l ^■nlllIllalHl^ . if lh.. ]i,,rtV"f
the first jiarl
Anil tlie |iiirty of tin- tiist [mrt a;,'r.rM to pay the party of the sreomi
part one hiiiiihi->l and fifty 'loliars aiei t(i l«innl aiel lod;;.' the paitv of the
seeond part during' said jieriod, and to eails.^ all iKCissaiy Luuili'v wash
to he don-- for him. Said money to he paid as foll,,\v,s : Kifty doUiirs in
six inonliis. an.i the l.alanee at tlie esjiiry of said ■-•■i\ ice.
Witness our hands the day and year alicne written
^Vitness: | .Ia.mks IIohinso.n,
f'llAltl.Ks SfMMi:i;s I .|,,MN SvilTll.
*i-ll. Contract of the Employee The , Tiiploy,-,- iiiii>t fultil the
a;,'reenient. whatevir that may Im. and to do this faitiifullv re,|tiirr-, n^.t
oidy dili;:enee, hut his eardtil attnition, skill and foretliou;,dit. Tlir
implements, machinery, or other proiierty with which hr may hrworkinj:
or which fall under his care, reipiiie not oidy proper u.se l,\ himself Inu
also his car.- that they he not stolen. The live stock 'that may hr
entrusted to him. humanity as well as his aj^reement re(juin's that he sees
to it that thry havi' f I and wat.-r and proper car.' in ;;eneral. His
m.ist<'r pays for his -I.;!! as well as ]u- ,h„-^ f,,r his tinit'. also his di!i^r,.„t
foretln)U;,dit in plannin;; or e.\ecutin;; his work He is exp.rted to (The v
all reasonahle orders from the master, to he pumtual and eoiirtroiis. and
to Work e\-ery day exei-pt SundiKi's and holidays.
A lla;:rant violatii.n ..f tl,,. ini|,li,.,i a;}re,-iii,'nt in .iiiv of tlir.^e
pai-tieulars rend. Ms him li.ilrl,' lor .lamai,'.'S .ir for .li-cliar;,'.', as the ease
may Im .
'iVi Notice to Leave. A .si-r\ant hir.'d t'.,r a d.tinit.- ]"rio.i, .'itle'r
t..r a ila\-, a w.-ek, a m.inth or a y.-ar, may, on th.' termination of th.' tim.-,
leave, .ir the master may 'lischarj,'.- him with..ut ,1,'ivin;,' any notice.
Wh.-re th.' hirin.,' is for no .1, -tinit.- time and the waj,ri-s |,aid s.i much
p.-r .lay, w.-ek, nth, .ir y. ar. when eithir party wi.shes to terminate the
Contract tie- ..tle-r party is.-ntitl.d t.. notie.- :
if paid hy th.- .lay A .lay's notice.
If j.ai.l hy thi- Week A w.-Vk's notice.
If [laiil hy th.' in., nth A month's notic-.
If pai.l hy th.- y.ar Tlir.-i> montlis' n.itie.-.
rie- notic- n.'c-d not li.- in writini,', hut whi-r.- tie- tine- i.- loiii^.-r than
a w.-.-k it would 1..- mu(-ii l,.-tt. r to j;i\'.- a wi'itt.-n notice.
'i4'.l Discharge Without Notice 'I'le- .-ini)lovee is presumed to
jfive .lu.- .lilif,'.-ne.- to tie- .li--(-liai;'.- ..f tie- duti.-s assij^Mi.-.l to him l.> he
pnnctualas to tim.-, toolieyall r.-a^.,nahl.- c.nnmand-, and to 1,.- n-sp iisihle
for all .lama;;.- caiise.l hy his nej,di;,y.-nce. If, ther.-f.,r, h,- violates the
a;,'re.-m.-nt hy hahitually n.-L.d.-ctin;j his .luti.-s, hy takin;c ahs.-iu-es without
permission, or in any <>{ the folLtwin^; ways, hi-"inay 1,.- .lischar^'e.i with-
out notice- hy payinfj him tie- wa},'<-s .lu.':
1. Wilful .iis.jhedience of any lawful ord.-r ■ .f tie- master.
MASTEU and SKllVAM
•;j
2. (JrOSH IIl.,r;il llli>.u||.|uct.
••) Hul.it.ml ,.,;;lij;,.,„... ,„ 1,UMM..,.. or conJu,-! .Mlnilattvl seriously to
+ Innmiprt,.,,.-.. ii, til.. Iii;r|,..r s.Tvic.. nv1„.,v .,„.ri,-,l k,„,«|,.,l
sk.ll ,s n.,,.m-,.,l ,„■ i».v,n:uu-ni ,lisH».ility tl,n,u;:l, HIm. ss T. n.i.onu-v
Illness w.mM not Ik- siiftlci,.,,! cnus,- lur .list;!,,-, !■.',•.
«pr;i ''''"' "'"^"'' '" '"' '"',"' '" '■""' "'"'' '''■'"■''■"V' /■'"• '•"">' 'uv nut M s-
sani • ,n i^n-iM,,!,.,,, f. tli- tnnr fl... .vrvant lias ialx.iv.l. Tl.,- wa.-. s that
an. .lu.. must !„• („u.i. I„.t tl„. waj^es that n.ay hav,. I,,.,,, ,..,n..l Cut ,„av
not yet !).■ (Ill,-, 1 1 I,. it ii.-c.-ssarily h.- j)ni-l.
'iU Discharge with Notice r.-i...ns ,-n,|,i„VL-,l on ,i w.-.-kly or
<""-' hly .s,-,-vKv n,Hy .,,nt .„ I,,- ,l,s,-har-..<l l.y yivin;; a w.-.-k's or a
lunnt , s notic..; or at a M,o„„.„ts notice l.v ,.Mvn„i,t of a u,-,-k'.s or h
inoi,| I, s \\ a:,'is,
'i4r» Servant Leaving Th.- i,,a.si.-rs (-..iMiiian.i. at-.- i.iv.innr.l ai
tn„o ut .-on,,..-. „, 1,.- n-a.,,„al,|,., l.-^al. a„.| ,,, 1,.- within tl,.- h,„it n(
w..rk th- -.-rvant ua. .-„,,,loy,-,l t.. ,M.,-f,„-,n T),,- in,,,h.n„-nts an.j
machinery an- hui.im.s.-.I t.> 1,.- suitiihie tor that kin.l .,r u.,rk an.l so
I.r..te<'te,l as to hr roas.,MahIy fr,-,- fr..ni .lan-.-r If, th.-,-,-!,,,-.- ,!„'. master
pves ,inreas.,nahh- e,„„n,a,„|s an-l ,-n.l.-av,,rs to ,-„|-,,rr,- th.„, th.- s,-,-vant
has caiisi- lor leavin;;
If th,- maehin.TV ..r any |,a,-ti,-,ilar n,a.-hin.- „s,.,i l,v th- . ,„i.|.,v.-,- is
n..l eons„l,-,v.l s.ntal.ly [„-,.„-,-t-,i an^i h- --n -s .....i.-.-'to th- .-n,,,lover.
who sill re,|„„--s w..,-k to h,- ,|.,n-„„h t!„- ,la„^^.-,-ons n,aehin,-, it/is a
rails,, lor leaving.
''■■'">■ acci.lenl o,-,-,n-s aft.-r -ivi,,- .,f sii,-h ,„,ti,.- th.- ,-,„pl..v..r is
lialil.- i.iK ilainai.'-i-s, '
If (h- s..|-va„t iis..,i th,- Miu-hin.-^ kn,,->vin- it f, I,,- unsaf.- without
-iv "'p' -KU- ,i..t,e- ■ 1 Its .la,i-,.r h- cauii..! eiaim .iania-.-s f.,r an aeci.lent
It th.. ,„ast.-r .l.M-s ,„,t pay th,. wa-,.s as p.'r a-reeuient the servant
...ay pr,K.ure a .lischar,.- a„.l wa,c,-s ,1,„- hy pjaein^. the ,natt,-r in the
h.u.-ls .,1 a .lustie,- of th.- I'-ae,-, wl,., .|-als su„,„„„.i|_v with sue), ,-as,-s.
•i4«. Master Liable on Servants Contracts. If .-i m.aster hol.Is
y h,s svivant as a„ .-.u.hori.e.l a,„i acer-.lit.-.j ,--p,-,.sentativo h.. is
.-sp,,„Ml,l.- t.,r hi. a.t,.„i I Ins liahility niav ans,- in tlire,. wavs ■
1 l.y a-lopti,,!, ly th.. in.-ist,-r .,f ih,- .servant's eoiitraets if th.- s,-r-
^^nt as a;,,.nt eontniets for his master a..,l the master a.lopts a,„l ratiti.-s
the contraet, h,. will 1... habl,. on ,t, a„.l all otlu-rs of similar natnn-
,- ;^y -'),'"- '■■'<r'-"^^ auth..,-i,y t.. .-..ntraet .-ith.-r l,v .i.-.-.l, wntin ' or
wor.l ol mouth.
•■!. Hy rr,-atiii^r an impli.-i autlmrity to e.mtnut. Tl„- .serva.ifs usual
. ■,..!. oyment is re^janl.-i as the moasuiv of his authoritv Where the
mast.-r hoKls I,is s.-,va,it ..iH as his j;eneral ajrent l.v makin- contracts
p.nrhasini: i^o.i.i.s „„ his or.-lit. -to , the mjister is liahj,. ,s., lon.r .us the
wi7hl!",."? '" ' ''"•, ■^'■''ir' ,"'■ ''■■■'' ^'-'tl'-.rity. ami he will he liable
vkithm that sf-o,,,. ,.v-n sh.,uM t!„- ,s,-rvant aet e.uitrary t., his opI.ts.
74
MASTKU A\l( SEKVANT.
.47 Master Liable for Servants Acts Tl„ must, rs liuhilitv in
not lH)Uii.llf.««.s, l.ut ju.stio- iiii.l cxiiiiion s.-n.s,. lix c. rtain w.ll .l.li'ii.d
iimtM In HL-n.inl i.tims th.' nmshr is liul.l.- for nil tl.o^e nets which arc
l)ri)M^'ht aliotit tliroii;,'h his iiistru'iicntalitv, hn :
1. Mf IN lial.lc fc.r the acts ol his servant iH-rforincI within the scpo
of im (■mploynuiif. however wrongful tlicy may !«■, hut he in not n-.sn.,n-
ml. e lorthc wroii;;fiil act if it is not .l.mc in th.- .-x. .•uti..ri ..f hi- .•..ith.Vitv
Mill III th.' course of his .•niployiiient. an.j,
2. W'heiv li servant is .Irivin;,' a horse, whirh runs ..way .in. I .|. ,
<iiuna;;e. it on the niiister's iniviness, or
.'I. Wh.-r.- ill .■xecntin;; his orders witli ivasoiiaM. ,.,n ,ii„| ,|,„.h
•iiuiinp'. or
4. \\ lure he .l.M's an iiiiiniicious act aixl .I.ms .lama;;.', or,
U'h.'ii th.' servant v\,-u want.p.ilv .I.m's injurv ifiiclini' within the
scojx' ol his .•inployni'iit, ..r,
|i. For injury .l.m.' I,y the servant thr.ju^jh .Inink.nn.'.ss, if n,ti,„.
within the sope .if liis einpl.iyinent, or,
7. If he .)r.l.'rs the s.-rvant to commit a Ir.si.avs, <,r if th, tr.'sia.ss
results Irom the action to he .lone, th.' master is lijil.ie.
He w.MiJ.i not Im! lifihl.' f.)r n wr.)ri;; .jmi.' l.v th.' .s.Tvani that was
contrary to his .irders, or if the ma.st.'r w.'re ahseiit.
H. Th.' mast.'r may !»' criminally li.ihle f,„ a criminal act ..f his s.r-
vnnt xyhich he cxpn's.sly autlMii/,.,], .,r .'.....jMrat.'d in its .•..mmi.ssi.m iMit
nut .ilh.'rwiM'.
Th.- master is liahle f.,r th.' act of his ,l.,i...siie ..r m.nial .serva-it
wh.'th.T It I..' ..n.' ..f omi.ssion or commission, n.';,'lect. fraii.l, .leceit or
ev.'n..t miscn.luct. if if he .I.,n.' within the .scop.' ..f his cmplovm.'ir .,.
with th.' express .lir.'ction or a.ssent of his nmsi.r. no mattor h.'.w mu h
lie may mImi-..' his :iiif Imfit '•
•i-4S. When Master is Not Liable Tl,.. m.ist.r is n..t lial.l.' ,n
any case h.r th.- injurious ads .,f his s, iv.nit unless th.'V ar.' wilful or th.
r.'iiilt .)! n.'<.jli".'nci'.
\Vli..'r.' th.'re I- noexpr.'ss ,,r iin|.li.-.i aiah.rlu I.. .i..tl„.acl or the
act .,t th.' s.'rvant is an act of his .)wn. the masior is fr. .■ from liahility
II the master .Iocs not j;iv.' any .'Xjir-'ss .ir inipli.'.l uiith..rit y f.,-' I !..•
servant t.) pl.'.lj;.' his cr.'.jit, h._' is ,„,t li;,l,i,. f,,,- ..„a- .■..ntr ict- i.ia.'l,. I,\ i|,,.
servant in his naiii.-.
Th.' iii.ist,!' is ii.,t lial.l.' for the c.mtracts of his s,r\,inl wh, ,,■ t], \
hav.' an .-xprcss auth..rity an.l e.xcee.l it: ..r wh.r.' tli.v has.' an nni.lic'.l
autlority .111.1 act la-yon.! the .sop,- .,f th.-ir emi.l..ynH'nl. .|.)es not hio-l
his master.
The ma.stcr is not lial.l.' aft.r h.- I,;is -iv.n nolic.. that h.' has i. , -111111 -
atf.I Ins servants aiitlmrity to pl.-lKc his cr-.lit. Th,' iiotic must 1,,'
hrou^rlit li,)me t.. tliini parti.'s, t.. wlioiii h.' h.is h.- his pievi,,us nets .'i\.n
im lii.ph.Ml authority, as. f,,,- i,,st.iMc,. |,, i,,,, rhau'l ■ or chanics.
'i4U Servants Liability. .\ s,.rv.int m.u- rcii.l.'r himself liahle:
I. On .'ui.tr.-icts ma.l.' ,,n K.lialf .,f In.s mast.'r if he ilo.'.s n<,t .lisehse
MA-.IKU AVI) sKKVA.Vr.
75
IwuVH U.S.. wor.l.s .lo.>*nl,ir.- his nipa-itv, ,is ••,i,.,.nt f,,," .,r " „..r •'
j)n), I'tc " • •
2. K.,r .l«.,m;;..s ron„nitk..| ..,. l,..l„,|f „,■ |,„ ,,,,,,1..^ ,,.. ,, |:.j^i,. ,^ ,^.,.„
.i-s l,is ,„,i.stor. HM.I t. all llunl lurtirs 1... Ntaiuls «.s ,i i,ri,„.ip,»|
.» II- IS ulsn I,,,' lor ,1 joint fr.ii..l c.i itU-.i with liis nwistiT l-r
n.. coi.tnict of m-rvi. , j,„,,d.s a. l.-ptl oMipition to commit u fnui.l or .iou
4. I>| '•rt/m., ,wvvfll HK in i„j„r,V^ !„■ is li.tl.l. . ,»..] cnnot .-va-k-
n.H,«.ns,l.,l,tv hy .ay.n-,. tl.at !„■ wa.s only u s.-rvant a,„l .,tu,.- „n,i.r l.in
iiiaHttT s orili'ix "
.V F.,rar>y fri.,.i>ml uetio,, uf (!..• s-rvanl not oNpn-HKly nuthuri/.-.l
!■} till- ni.LHt.T til.' siTvant otily is lialilf.
l,v. I *'*''" ,.'^"'"'"';!'^" o' Service A o,ntrac-t of servi,-.- is t.-rnn.,,.....!
I'V I..|,s.- ul utuv \.y cn.n|,k.ti..n of Work to U' j.erfomu'.i
My l\w ,U',aU of tJR. hirer. The *.rvant t.ui.f I.. ,,.u,| Hn..vs ui, U,
r.V the .l.ath of the servant. His l.;,..! i,i.re.s.„tat.v.s will coii-cl
hiH wa-e.H tor the time .lurin- whieh .service was ren.lere.J
liy the as,--nin..nt of the eiupluyer If th,. ,■„,,, loy.r shoul.l com-
inence l.u.s.nes.s a-an, utter n.akin- an assi^M.n.ent, an-l seVvants an.l oth-r
ei..plo3ee.s },., to work a-al, '„. ,,revi,.u.s afrree,n..nts ar- not hin.jin-
iirilcs.s th4' enntraet is rvnewnl "
f ,1 ''r' .^™^^^"' Discharge, or Quittui-. li ,. .lon.e.stir I,- um,,-
illy .iisn.i.s.s..,i his ,v,„e,iy is an action for ,lania-es ajjainst his nia.ster lor
lie' hivaeii .,| aj^'reement or contract
'IVm,.n.ary illness i.s not a .s„,li,i,.nt cans,. f.,r ., .lisehar;; unless the
tonti.^ct has l.,.x.n rescimie.l. or the nature of the work nee..ssitates it
A .loinest.c servant wrun-fuHy ,|uittini: Ins masters s.rviee forCits
th.it part ,4 lus wa-es ,lu- since the last .lav of pavm.nt
.\ny .i,,pl,,y,.r leavin- I„.f,,n. th,' expir.ai.,n of the week or month, ,r
.\e,ir as the eas,- „„-,v 1..- tu,- just cause, or wle. is ill,..,illv .lisnuHse-l. can
reuner wa-es I,,,- ,1„ ,,„„. h- work-,!. |;ut if he cannot .show a va'i-i
cause |„r leavui^or was ,lischa.-e.l for proper cause he cannot reor , r
wajres ,,ru n,t,i |,,r tie- i.urt...n of tim-- w,irk,,l.
•«•». Ser^-ant and Holidays Uleiler tl,.. servant or einplove.- is
;""!'-H''l >..u..k ,.u.~>un.lay a.,.1 l,.;;al hoIi,i,,ys .lep-iuls alto^^ether on
I .'■ a^^.v,.„M„I „„„l,., an,! th- nature of th- work to he .lone. SoTne kin,|s
o work ,v,,un,. s,„u,.thm;:tol.e.lon- ev-ry day. for instance, th- hir,.,|
M u ,,„ . ana ,,„„,,, ,,. „,„, ^,, ,.,.^.,, ^^___, ^,_.^_,^, ^.^^^ ^^^^ ^^^^^^
<"nt,,u\ Ih,. s.un- w„ul,l h.. true as to the servant .loin- housework,
1 nl,-vs tlieivisaii a-ie.-ment. expr..s.s..,l or iiin.lie.I, to the contrarr
emp.„y-,.s „r apprentics cannot or.linarily be con.pMle.l to w.jrk on 1 \\
My., nor can they I,.. ,l,.schar,..,l f„r al.-nc.. I n„t working on ^7-1.
7li
STATITK 111- I.IMII V 1 iKXs.
•i.".:S Legal Proceedings If ..ny .iisaj^reement ..xi.sf. U-twe.-i.
iiiisu.r iuil ^Liv.iiil. |.n.c.M..lm;,'. may t„. tak.'ii \»-{,,i;. ,i .l„.sti f il,,.
react'.
If tlu- .IiisticL- ivc.'iv.s til.' .■vi.i.'iKV „( th,. plaintiir hr nn.-t also
rwiMvi' that ol tlic ilcfiMnlaiit.
If t(. coll.'ct waj,'o.s (ill,- i' mist 1... ,iui,r uithii, ,,„,■ ii„,ntli ufln tiie
t'n;fa}jciiifiit I'l-aseil.
I'llAl'Tli; \i
S'I'ATITi: (»r IJMIT.\T|(»N,s.
•J.%-1 III.' (III., williin wl,i,'l, tlM'vai-ii.iis l<itiils.,r ,k.|,t.s luu^i 1„. ,„ii,l
;"■ '"'." ■■"">'">i('.-.i ... ncov, r ,,ay.„..nl is tixt-.l i.y Statut.'. and if action
H not c'oniin.ncMl witlini tliat tinir Mh'v are said to Ih' outlawi'.l The
•I'I't IS not rane.'il.'.l, l.ut tii.. civ.litor loses his H;,dit to s».. an.l recover
[Niynient \<y le;,'al i>r<M'e.s.s.
Action is commence.! l)y the issue ..f a summons or writ It is n„t
re.|mre.| t..oI.tttinj.i.l-m.nt uithin th,. sp.'citi.-.i tin,,., hut m.i.-lv that th.'
writ he lssue.|.
The Statin.' limitin- the time svithin wiiieh an action at hiw must !«■
eoiMmene.'.! l.,r th.- coll.-cti..n ..r .•nfoie.in.nt ..f a eiai... is caile.l the
•>t'.tut,' of I.umtntions. Tii.' tin..' Iin.it for ih.' vari.n.s kin.Js of .k'ht is as
loilnws see .S.'('||„n •.>(!4 f, .f . xc.'Iition-- :
■*•'»•'» Promissory Notes and Acceptances in all tl.,' i'mvincs of
I ui.a.la. .-xci.t <..>uehee, outlaw 111 six y.ars aft.r maturity ..r last i.av-
in.'nl n.m e .... either inl, '.-est or p.-ineipal. Th.' date ..f niaturitv is the
lost .lav ol the thr lays of jr.'ae. . h.'ne,' tl... tin,,- , n..'nc.s to n.unt the
■ lay alt.'r the thi.-.l .lay of yrac.
Any paym.'.it. or writt.'ii aeknowl.'.Iirment of the .|el)t. will kiop the
paper aliv.- six yeai-s from that .late as a;,'ainst th.- [.artv makin.' the
I.ayii.,'nt ..r the neki.owl.',l;r„„.„t. hut not a.'ainst anv ..th.'r" p.'i-s.m whose
iia.iic Is on the paper "
In C^iiehec the time is Hve years ii.st.-a.l of six. I'll., law is th.' siim,.
1.1 Mtlii-r r.'sp.'ets.
Ill Newfou'i.lhin.l ;ii.'l Kiij^'laii.l th.' tin..' is also six yea.'^-
Deman.l i.ot.'s are ,|....m.'.i to h.' .iu.' wh.-.i thev ar.' inad.', an.l .l.'inand
Jieeeptanc's vvh.'.i they are aecpf.'.l, th.'.-.f..iv, six v.-ars from that .late
tli.'V are outlaw.'.l as far as th- mak.r or aee.p|..r is'eone.'iii.'.l. I'.ut it is
'l.tlV.--.f with in.|ors.Ts .,1. Mieh pap.r, as .... ri;;ht of action accrues
aiiamst Ih.'.n until a .l.'man.l for paymct has U'en ma-l.' an.l <lish.m..r.'.l
an.l lh..i-.'f.,r.. aet..,n ..n tl... hill is n..t iMii-re.l a;,'ainst th-in until six yeju-s
li-oii. .lateol .i..ma...l Hut a demaml n..te havin-an i...l..rser must U-
pres,.,.ic',l for pay....'nt within a " nasonahl.' time," ..therwise th,' indors.r
w <l..'whar;,'ed.
'WO Book Accounts Aeti.)ns f.-r th.' recovery of incrchantH
Account. ...,.1 ,.i; ,,ih,.r ,l,.|,,s f.H.n.l.'d upon any l.'U.lin- .'.r other cut ract
^r,\T
"K I. IMIl ATKINS.
U...t m,i..,s,.ah, ,,„. ,1,.. ,,„,„,,„,• ,,,„ ,„. ,„„.,.,.^ ,„.,„,var..,f K.^a.,
"•:"": "' ''"";,'"• ";"^' '- --— -i . in,,., s.x y.:... aft-r th. on,^.. ;^f
.... a.„,se..,r ,.. hist p.y.„.„t..,r ,. w.i,,,,, :.,.k..owl..,|.,.„,,f ..f the
|. -.u ii„s .,,,,h,.s to ,.ii ,h,. ,„.„v„„...s ,..v...,,t ,.;;,.,,„,, x,;^.
I'liiti'llainl ai,(i Kii;;hii.,|.
In il,.. I'mvinc,. ,.f ..,„.|,..c it is li^,- y,a,-„ f,,.- ..,..■], ,,cr„n„f=
l.o..sM.,.,al h..s as ol ,l,«-t.„s an.l a.lv„cal..>, ju.tic-.s, „„;a.i,.s , ,1
rets, infrest a.ul eon.n.orcial ..latte.-s i„ fr,.,„.ral' arc- t,a.n,i Mtt..- tiv,.
y.ars lro„. „.at..nly or h.si ,,ay.„..„t. Sla..,!...-, l,l...l a,.,l wa-^Ls ),
- M,,loy....s ...,;;a^„..l ,,., a ,ho,-,..,- ,„.no,l tha.. ...... var outlaw „. on^ va,-
a..,a-.s tor ..,.|,..-,os a..l wa;;os for .■..,,,loy....s..„;;air,.,l !,„■ a In,,...,. ,,;.n,„i
'I',.". ..,.. y,.a.- o„tlaw ... tuo y.a.s. P.naoh, s n{ co„.,.act nst7t..t o. „
.nn|..rs,n.c.,,,.,.a,,o,.on,Uo..sac.co,.,,,.. ■ ,a.t, ,. a,., i architects wu'^.;
-utla s .,..,. y-a,-s. ,l,„|..,„.,„s ,„ ,|.i,,y y, a,., ,l „u actio., is tak.., ^
i/..r H,a ';'".V'"-'- -•'•'"''"> ^"v, w>,l, ,v;,a.-,l , .tlawi... it,.,,..
>/ 'I, that is,cach.t.„. urja..chas,.,s t,-t.at,.lasa s,.,,a.at.- acco,„.t a.,.l
I 11 ......u;yM.a..l o,. .t a,e. „mI..,s.s otherwise sp..citi..-l, aVpli. ,1 to th ' ,1
>t-.Ms, I h.s part.cular IVatu.v of a.rou.its sho.iM 1„. ,, ,,,..,„l„.,.,.,|
t.i..c t,\i ■! lor ipayiiiciit.
A .|,.:,tor has the i-j-ht, uhc. ...akiii^,' a l,av„ir,„ t.. sav o„ ul,a.
,«.r .,.,.lar account it shall I. a,,pli..l. I,. ;:... Lur,U.t^ to l, ,: '
..I tor has th.. ,,r.v.l,...,. „f apiJyu.;,^ it to a„v ,.,.n h. lik.s 1„ ea c
m'..h..r o„.. a,,,,l.,.s „ t., at,y [.a.-ticlar .|.,.l,t. „ '„ |,v Law ,„ ,' s. of
pors,.nal acco.„„s. appliol tw the ol.h.st it.....s
I 1- wino.is ,,urch«scs <.ti .iiflm'iit dates I., i,,^. p,,, ,„t „• l„|i .,,,,1
r. n.krci to th.- < ehtor ,1.,.. not „,er;:e the,,. i.,to one',|,.l,t so as to 'ha , e
the t.M.e for o,,tlawm.of a„y pa.-.ie.il.r p-vhase, h„, thev all rem i,
ont.re ly .separate, a>.,i six yea.s f,,,,,, ,he ,ia'te of p,„,|,a.se of" ea I t.'
;:::S:: : 'r^'"''; '"'rr-^ pay.,.e„t ,„a,leon that in,ln.; .a
' 1ms or a -vr.tt..., aekru.w le.|j;,„e,„ , (• n e y.ars for V„ehec ) A
p.'"t pi.M..el.t o,. a .■,.,.„,„j- a.Vo.,„t .loes „ot keej, the whole alive
I'.' Items of a,. acco„„, tu.xy. however, he ...erye.l i,.to a Mi,.'le ,|,.|,,
h " .''"t .s ealle. a.. ■ Acco.u.t .St..te,l ■ I'o fo,-,,, a,? ■ a..eo„„t .taU.,| a.
u^ree,.,e,., „.,..st he co.ne to iKlweon th.. ,l..l,,.,r an.l ,1,. e,v,l,tor !,■ whi
■"•.•.•ha,.t wants a part payment to keepall the items of ,he aecon .t ali
he n..,st apply part on ev,.,.y i,„livi,l„al pn.eha.se ...,.„ „■ it iV " , J
than twenty-rive cents „„ .aeh Tl„. rL he ,1 hv a .|a v „ '.k e , •
-tl-nt say.,.;; anythin. to ,1,.. ,h.l,t„,. Th,. follow.n;; or ,„„l ., v j.
wo,, .answer: - Uc-eive.! f..„., .Ia,....s S,..i,h S,,„ on^accuunt, 11 l^,^
amonnt toheapphe,! „n each p,..cl.a.se „p to .late." Give the cuMo „er
""• '"•'■'■'.•'.•y rece.pt .„. account wi.honi a..v reference ,o the s "i a
appl.citionyo., have ma.leof the payn.ent.s. ' '
.\ .lefin.te for.nal M.ttl,-,..,.nt in writi..^' l.etwr,„ the pa.t.es even
1 ..,.!. n., money ,h pa.ji, will serve to exten.T the ti,..e for „,|o,her pe. ,
ol SIX Ol t,\e yeni-s iw the case ,nay be '
-i.-,} .I,i.i;;ments in all the I'n.vinces. except .Quebec, continue in
fo,ce twe..ty years. I„ . .n,a,.i., an.l u.oHt of the p'-ovince, executions ,.„;;•
STATI-TK III- 1 IMirAIliiNS.
isslioiuiy time within six yt-iivs, l.iil .ifl. r thai iiii i.nl.T t'n.ni a jii'l;,'.- nmst
hi' i)l)tiiin'il.
Ill i;ii;;iiiiiil iu(l;4in.iits me l),ur<'il in twelve yours li, (,hi.l,.r iliey
remain in Wnn- loi- ihii ty \<jus. Newfounilland twenl\-.
In N.w l;runswick ju.l;,'Mient.s in t!ie JusticeH, I'lirish Court C^.m-
niissioiiers m- .Stipendiiiry M.i;,'istr.it.'s Court outlaw in six yais if no
execution i.Msues, l»ut in roiiMv nr >u|,r,nie (."ourt lu. niv \rai-
•i.'»H, Moi^f^ages on Real Estate in <>nlari.i aii^l Maniiol,a outlaw
in t.'U yrai- alt.-i- malurity or last pay mi. hi .mh itii. i- |.r;ii(i|.al or int. ■rest ,
in liritisli Colunil.ia New hnniswick". Nova Scotia t'lwu'r IMwar i jslaii.l
ani Ni^wfouiKJlainl tliey outlaw in twenty yeai-N
in Nortii-West Terrifoiies an.i Knijlaml in iwcK.' year., an.! in
<,>ueliec thirty y.'ar< M.irt;;.if;or m e.|uity of r..leni[ilio:i is harr.'i in
North-West I'. iril..ri. s aiii Kn<,'hiiul in twelve years, in .'\laiiit..l.u t.ii.
an.l other IVovinees au'l Newroun.ilan.l twenty years after ni..rt^a;r.'e
takes ]) issession, unless his ri;,'ht is aeknowle.li.'(.Il in writ in;:
In each [jrovinci' ami eountry a j.art jiayinent of eitler iirineijial or
interest, or a written acknowl.Ml^'nieiit of the .l.l.t or riu'ht will extnul
the time for an.itli.T i..-ri<i I . .f t.Mi, I w. Iw, tw.^nty >>r thirty yars, as il,,.
case may he.
Aeti.iii upon Iximls, eonvenants or any instrument uu'ler seal, except
mort;,'aLris on nal estat.', may 1m' any \\uv within twenty y.'ars
•i."»!». Legacies are harn.i in tie- sane- li'u;;tli of time that iiiort(,'a;,'e.s
on r-al estate are, from the time a ri;,'ht to receive it accrued, unle.s.«
le^ratef were a minor or umh-r some other tiisahijity. in which case the
Statute of [..imititiuuK iloes not commence to run until ih.- i.nioval of
stieh ilisahility, Ari-.'ars of le;racy liarr.-il in sain.- tiiii.' that iut.'i-.vst is
'ittO Dower I'lie ri;;ht to recover .iow.r l.yawiii..w ..u ..f her
dcceaseij hushan.l's estate is also barreil in the sjime len;,'th >>]' li a
mort^'a;:e on ri'al estate is harreil. The riy:ht to dower aeeru. s at the
hushantl's death. Arrears of dower harred in same tiim- that iuteri'st is.
'Hit Chattel Mortgages as Wtween .i.l.t,.r .m.i civ.ht.ir m ail the
I'r.iMiices (except Vu<l..c) .md Xewfoini.ilaii.l \\iil le.l.l thf cLiiiu fi.r
tw'-nty years, Ikmiij; an instrum-'iit umler seal an.' n.Jt adectinL,' nit-i-. st in
land.s. Ah ajjainst other cr.ditors, however, they only hohl the |.iop..rtv
as .security for a perio.l varyinj; in the ditl'erent I'rovinces from one to live
years, i ."^I'l' .S.'c i'7:! i
'Ui'i Ownership by Possession A iMis.m havin;; coiiIiiuduh
peaceable possession of lan.l (exe.pl in I rust i payiii;; taxes on same and
treatinj:; it as his own, acknowieii^rin;,' in no way the rii,'ht or t;t! . f any
other person f<v' the same, U'comes thi' owner of the propertv in ( ^utariii
Htei Manitoba within l( ii years; in New l^runswiek. Nova .Scotia,!' Iv
Islaii.l. jin.l .Ni'wfoun.liand in twenty years. In North West Territories
and Kn;,'lin.l in twelve vears, and in (Quebec t«ii vears "iv. a posHcssury
title
A persim thus "s.juattint; " oti latid to which he has no ri;,dit that is
y>'» "ill a sf.,,t.. ,,(• r\itiir-'" usuallv called "wild land," tluit has not '.eon
.STA'll rK IH i.i.iiiTi! ION'S.
71*
th, t «ucl. party uus ,:. possession ,,f it. If ,1 ..i„t,.,. ,, ' , "", '-'
..ll.-r I'n.vinn.s. '"'""' "''' "'' """I- ". .-.il tl„.
I..lll(i .■iicl,.-,.,| ],y :, f,,„ce wliil,. ,|„. |.,,„] j., , , . r ,
an.l sul,s,.,|„,.nt survrV sl,„wi„.. tl,,- I',,,,.. , , ■ „1,. U, 1 ,"'"'
'^■l.i"i"in.' own..,-, tl„: .Statu., ,,| I a.nU n ,, ■ ll ' ''^''''- ''' ■■'"'
111 (itliir I'a-i-s wli.i'
-'.Itlltrs u,,iiM n.il colMln.lir,. (,, ,
'■ ■' l"ll''' I llall'!!llr!,ll\- p!,lc,.,i
'I' r''iiiii\ I
til,
"" •""" -iM-tlin.-ti,,. lr,ii„l i-.i,M-.,v,.|v,i.
'Hi:i Reviving Outlawed Debts. I„ , n.nn.s.sorv not-.s accv„t.,M.....
; .': :";t.;;r'::;;:ii' \ t ^^t-"' ' ^' .---.. a..ki,.,w!..,is:.i;; ::
i"'n."i'^:xv::!'^;:i'ii:ix?^ .- .u.. .„i- a ,„.,„.,.
i..i>n;:;;iiK-i!;:'';,:^.,i;r,;::;,^ ; '-";■;■•
.i..;.'n..iuo.,...,.vsuc.i,.N..a,.a, ,,a. ,::''i:':;.,.:V,;'^^^
'■•■l>.- ... 1 Ins cannot h- ,lon.. I,y a tlunl paiiv „. ul„„ ,1 U ^
layn„.nts ol n„„„.y ,,n .a promissory note l,v on- of tl... parti-s ,lo
.•M.l."nn"*„M I m'T'i \" °f' T"*f '-".^ '""— • '-'k MO,.., or other
'">■■'"'"" M'-'' "I lilii- uill i.arth.. .,,!;! t,, ;v,,,;vor it
.Mso.ul,,.,-, ,1,,.,.,. ,. any I,-;..,! .i.salal.t v ■ ai ,l„. part of" ..itluT tli,-
•i-l)tororcrr,iit,,rs,,,l,ai acti,,n .■aiinol I,,, capn,..!,,- I , ,
'-^'"/■•-""t ".-ii - i-ai.ii,tv isnino.:., ■''•,'!,,;;;,':;;,'''''■::''
""."s hy or aj^ainsi minors, p.-rsom, i„.s,„ , ,„„ „ V v i • .^"
>-.iini..,uv,| within the like V..rio,l aft,.!,, , , • ' | , , ' 1 ','""' ""'
.sal|,,w,,i,^.rlMan.in.a,■,i,:,n,,,,l,na,■^'';.s;:■' " ''-''"'■'>■-
111. .l,sal,il„yj,.,w,.v,.,v ,,f whal..^,.;• nature it is must 1,.- i,. existe.uv
80
cllAITKI MoKHiAfiKS.
< IIAI'TKi; Xil.
( flAT'l'i:!, MoiriCACl'S.
•iU."». A liiait'l iJiuii^Mj,'i. is u li.ii (Ml |).isi.iial jirop. rty— jjihhIs unii
clmtttls. It IS 111 reality n lU-vl or cuiivfyiuicf of tli.- property us security
»or II .li'l.t or for lH>rrowf(i money, with 'i ijimvIso that wlim the .iel.t is
paid till.' inort^'U^'e heconies null iiml \,,i.l.
By (ierivatiou the word niort;,M;;e hkmiis a death i.led;,v ( /„l./>-, drutli ;
(/./(/., a ple.l -el No wonder that j.iojile are afraid of thuin. The
debtor IS called the iMort^'a'.'or and the creditor the niort;,'a{;ee Tli.'
effect of 11 ehatt.l inort;,M^r,. ,„ praelieally the same as a Hill of"Sale It
IS a eon\eyaiici. of the l,U,. hut not of the f><,ss,sx„>ii of tli.' prop.-rty, hut
th.' m..rt;;a;:ee may take /)..>*«..«.«/„„ of the projiertv on u hreacli of any of
the eoveliants.
The Statutes do not ;;i\ .• a form for chattel mortpiges to complv with
nor d.'tine what covenants they shall contain, therefore, to know what the
covenants, provistxs and conditions are, the mort;,'a;;e itself must \x- care-
fully read. The printed forms in <;eneral use are what have heeii s-ttled
l>y conveyancers as beiii.; a|.iiropriat.- and suitable to m.Mt the usual
reijuirenieiits of iKirrower and h iider. As tiuiv is no stiifntory form lor
them It will be readily seen tlial they may ;:reatlv vary in the number
and striii;,'eiicy of the covenants they emlx)dy, so do not fail to read the
moit;.'au"' carefully before sirruuv^ it'. There is a statutory form for a
I >i--eliar;,'e .ind i{enew.il.
In <,>uel«c chatt<'l mort;,'a>;es are not used. Bills of Sale will h-M
thi' property as between the <lebtor ami creditor, but are not bindin"
auanist third parties unless the (TimkIs are Uikeii iHi.s.se.ssion of by tlie
credit.. I-
'iMi Description of Property. They must coiuain a full descrij>-
tion of the ;,'oods and ch;ittels, s.) they 'can !«• rea.lily distin;_Miisle.,l ;
also, where they are located ,ind whose ix>s.ses.sion they are in at The time.
In dcscribin;: an animal, ;,'ive at,'e, color, sex. name, breed, and any
particular spot or mark. In describin;; a machine, ^'ive the manufacturers
name ai.d numlier of ni.iehin.-. color ;>nd condition
•i<»; Must be a Boiia-Fidc Transaction Kv.rv mort;,'a{Te or con-
ve\ai..e ini.M.led to .,p. rue as a mort;.'a;;e of ^'oods and chattels which is
not accompanied l.y an uiunediate delivery and an actual and continued
chan<,'e of possession ol the koo.1s mort^'a^^i'd, or a true copy thereof must
b.- r.j;isteivd as provi.led in .-ach province, to^rether with the athdavii of
an attestin;; witness of the sam.-. of the dui' execution of such mort',ii::e,
which atliiiavit shall coiit.iiu the date of the execution of the iiiortj^n^'e!
and also with the allidavii of the iiiort;;aj;ee, or lii.s ii>rent, that the mort-
;:a;,'or is justly indebted to the mort;,'n<;ee in the sum mentioned in the
morl;:a(;e. that the iiiortj,'a;:;e was executer! in ^.Mid faith and for the
express purjios- of seciiriiij,' the payment of the money justly <lue or
accruin;: due ami not for tli.. purpose of prot.ctini,' the p«Mis and chattels
meiitioneil thenin afjainst the creditors of the m.>rt"a"or.
nni-lli. MnmriA«F.S.
81
one a ,.A.u-nc. n^:'^:^'::^^^' -"-" '" ^'-"-t ••-lito... or to ,i/e
1.0 ...«;. u:'i:;:::x,::,tt tu^isi^vit'' '^ ""' '"^"'^•-^' -'""■^•'
co,.si.i..nuiiti,JM, :a:r.; , •r.T'*'""^ """' *'"'"' ^"'- ^"i""'''-
wh.Tt. thejr«,.|.s an lo,; ,. \v . r , V ''■ ""-r^-^"'^ i" tho .listrict
^vith atli.larit of w f ' s A::'"h*'''' ""'"'"■.•• "^ ''">'^- »"^"'""^'-
l-eo.n,.s aKsolut.ly nuHa vo ^; ^^ f '"•'•^v,... n^amst such ,.Krti..s it
rrtiniii' to In.
within fivo
r<';;i.st('r<»<l
'lay after
at til.
their
other of tlie cleriv nf
execution. Fer for
th
otfic,
l>e til.MJ within ten .la\
In Ontario ih.\
the (..'oiinty Court
rei;isterin;;.".50c.
.ne,i w:tyn';!^'C'2'rrh''ero' r '''^'' "■; ^''r "« ^'' y —^ '-
Cotirf Ch.rk. • ' •^•^•'*="<'"» ." the office of the J)i.trict
co.......h.,i.,,i,, ,,^.;:-;';,-;:-„^ ^^ t..e Fi..t,)i.i.ion
Jor the FHstrirt of Manitoulin th.-v ,nu>t
'tl.ceol thel;e,„uyCl..rkfor.\Ian,"toulin
County ('l.urt. Fe for i ,,, '.S Th " •^'*''" "^- ''"' ^"'^"•'^ "^ »he
t" -eure th- purol,a.e , r e of ll 7 *-"'*'" "^-""""^ «rowinfr eropH
-.n,.,,.s a J .■xe;i:i^:i.'::i^;?\K:,,:;';:^;,!;:;;r'"- -- '^>' ->-
f.-o.,/:™n;n^^fL'"s^:nhe'aerkof 1^ V -t'- 'r^ -'^y^
whieh the,,ro,...,.,y ,s situate.a .1 h^yS^lk't't ■'',:' '*'^^'''''^ '"
Kr- for tilin- is .-.() cents. ^ ^ ' '''"'" ''"'^' "' '''i"*,'-
Mort;,'ai;e.H a^jainst frrowini; crops are not vill.l n.,1 »• .
<h..,mrehas,. price of se."l;;raitr ""'^ ^'^li'l "..less it is to secure
In I5riti.sh Colunil.ia chattel III )rtrHires for tl,.. „.i, I n •
\>eh],;\ within twentvonr ,lavs fo »? 1 l "'•* ^\ hole IVovuice ,„ust
f i with th,. I{..,Ms, '. he Cou !;' nT'""' i"'""^' f^"*"'"-^ ''''"■>■ •''•<•
^ .tut ttie County Court lu each county or Kejjistnition
82
CHATTEL MORTGAOKS.
District in wliirli tin- pruiicrty is sittmtoil, aixl if iiK.n- tlmii one I!.';,'istriir
«)f a t'uuiity Cuiirt tli-'V nn- U< In- tilr.i with tlic ncaiv.st out" witlnii the
••(luiity or ilistrii't.
Ill N.-w Hruimwii-k tluy must lio tiieil witliin thirty dayiJ in tlic' utlicc
of tliL- Rtj^istrur of iK't'ds. Fei' for filiti}^ is 2'> ci'iits.
Ill Novfi .Scotia thiTf is no tiiiif limit within which thi'y must U-
tiluii, hut they only hoi<l ;,'o<m1 aijiiiiiHt laws of insolvency, /..»».( >nl, ^,nv-
chascrs, juii;;iiiL'nt crtMlitors ami suhstM|UiMit niMrtj^iijjees'in f^ooW I nth l(ir
Vftlualilc coiisiili'iatioii aftfr filiiif^.
Intilinj,' cith.-r the ori:,'inal Dill of Sah- or a ciTtitiid cipy niav \»-
tileil. aii.i if theri' is any si-IumIuIi- ann.x.'il or relVrii'd to it must also h,-
inclu.lcil, and if thi' iiistriiiiicnt is sul.jcct to any condition whatcvor it
must ill' considfivd a i)art of it and ho' tiled witi"i the instrument, othcr-
wise the Mill of Sale i.s null and void a;;ainst all third jmrties.
In l.S!l!» the Leijislature of Nova Scotia jiassed an Act i-er|uiriiii,' hills
• if Saletolw renew.'d within thirty -lays next preceilin;,' the e\iiiiation
of three yeai-s from tht; dat.> of filin;,'. otherwise th.y wore Uj cease to Ik;
valid. Hut this Act has not yet lieen iiroclaimeir hy the Lieutennnt-
(!ovornor-iii-("oiincil to he in force, I. ut surh [.ii.cl.'uiinli.in lu.-iv I"' ;.'iv.n
at any time.
In I'rineo Ivhv.ird Islaiel the original must he tiled in the i.tlice of
the I'rothniiotiiry of the Supreme Court accompanied hy the u.sual atli-
davits of witness ami '>'</(>r/;i/.s, othorwi.se is void a<;ainHt" third parties.
Ill Newfoundland, iJills of .Sale and mortj;aj;es of ])oi-sonal property,
lieiiij.^ deod.s of gift, or where the consideration is over :<1.0(). and where
the possoHsioii of the property remains in the iiiort;,'ai;or, they must he
roj;isterod in the othce of the Ke^'istiar of Deeds in order to he hiiidiiij:
a;,'iiinst suhseipiiiit |iurchas.rs, mortf,'a;,'oes, etc., or an ius.si^'noe when a
deed of eoiiveyiince is made for the benefit of creilitors.
lY-o for re^xisterin^r when \alue of jiroimrty d.«'s not exceed .*400 is
?2.0<>. ,'ind when i-xeei rljn
'100 it is "J.") cents extra for each aiMitional
mU Location of Mortgaged Goods, ("hatt.! iiiortL'a;,'es only hold
thr inojieity in the one county or iv;,n^ii;iti,,ii district whore thoy are tiled
or ri';;i>tered. alul every chattel mortj^ai^e contains a covenant thai the
j^ooils will not 1)0 romoveil from the CL>tinty or retjistration district where
they are situate.
If all or !i portion of the i;oods ccverrd l.y -i eiiallcl iu(irt;,'a:,'e sIkiuM
he removeil to another county or registration district, a duly cortitied copy
of the mortj,M;,'o must l>o t^lecl in the proper ottico of that couiuy ordi.strict
for chattel mort<,'a^'os, otherwise the },'<j<jds are liable to Hoizure and sale
under an exocutio.i, neither would the mortsjaj^eo have recourse ai,'ainst
sulwoijuont i)ureha,sers or mort<;afreos for value. Incase the jjooiis are
removed without consent they may lie seized and sold to satisfy the
niortj,'a^'o on a breach of the eovenant, if the mort^afjee prefers it.
In Ontario a <
i]>\ of lie- uiol-t^'au'e must be lih d in the
County Court ( 'lerk wh ti • •^•xxis have be' ,i removed t<
iiioiiths. A similar time i.s allowed in all the i'rovincos.
!)tlice of tilC
within two
fii.vrrEi. >nmn;A(;Es.
83
I
'tlO Funii of Chattel Mortgage
£'''hu„i?l'P^'"^"^ *■' """'" *'" ''"''''"'"^ "'" '*""' ''"y "f N"VcmlH,r, one th,.UH«„a
<»Mtal... )i..„.m„, lu.r.„i„. t..rcHll...l ,|... M,,,,,,,,.,.,., „f „,.. s....,.n.l part "
\\lTNK.sM,:,i. timt th« M..rttfHi:orf.,r,in.l mi, ,„lemt.,.„ ,.f Fu,.'ll,„„lr,..l r).,IKrM
K- ..r.. „. H..,.1„,K ,u„l ,l..|n,.ry of .l.es.- I'r.H..„t (the r...v,,>r' «h..r,...f ,s hlrKk, ,w
ATr::,:ss' /:r,ir! 'r''v vr''T''""^'"'''^
h,i;,:.a :.:s:;;h::uh::;"H ;:;:lrr^''' "■"' """■" '"•"^•^^ ''••""""'- •— "-'^ --■
All „f uliuh s«„l :;.„„U nii.l ih.ilt.ls ,ir,- the iiropertv „f the Morti'i..r..r «.i.l »r ,
r,;::;ir:;,;il;t;:;l: ;;::;; ;-i;-^^^^ ....,',„.='i:'z'.t;
1" IIA» K *M. TO iioi.i. all an,l sihkmUi- the sa„l a,.„lM. ohatteln ami st.,ru fixtiiroH
orehy .«s,K„e,i .,r ,nten.le.l ,„ .„ ass,K,u..l ,.Mt„ the ^.,d M..rt«a«ee TnlZn.iZt
h.s exen t.,r,, a,l,„in.Ktrat.,r, an.l n.ss,.„.s. a. h,s „r thoir „«,, ,rr,l.r «„." sT„l .1 cti"
M.rtKa«,„, h,.H executors ,.ra,l>uMnMrat„r,.l,. ami .hall well .,,.1 tn.lv ,«y .r c use to
•::;;.',''',•;■;,'':■ •^'""''-«-- --;-■""■-• -ul-nnuHtrator. or «»,,,«„« the fu 1 sun Tk.c
llnH.la 1 ! ollars, with interest for the mmr at the rate of tiNe ,,er eent iht ann, ,„ .,n
the tenth day of , IHoher, l!N»|. ,|,..„ ,|,,se IVesent., .hall Ik., void all. ever Z'.tr
and -hin, hercii, e.,,.ta,„ed shall ooase. deteriMM.e 1 he ntterlv ! I t alt . e, ,
w.rro,. . 1 f •^'"'^'f'f''^/';rl'>"'><-lf. hiK exeeutors and admiiimtrators, shall and will
w. rant and forever defend l,y these Presents all ai„l singular the said «o k s W mels
a Id ,,ro,,er,.v unto the Mort««,ee. his exec„ton<, adiin.i.strators H.id ..I^tgnst^;;, s^the
^::^':u^:::::t"^ ""•' -"^""--.0^,. a„d «,«.,... .u .m eve,^ -ther i:r,. .:;
rovKv.U''.'!':;,i^sr!^;''T'e» .''*''''<^ '7 1""1^''^- '"" ^^••'•""'™ ""'■ -l-itMstrators.
and ~s I ih M " "1 " '" •^'••"«»«"-- •"- oxecnK.rs, ad,i,in,str.,ors
aii.l ass-ns, that the Morf^a-or. his exe.utors or a.lniinistiators, or »o„ie or oii„ of
the, shall and will well and truly ,«y, or cause to 1.. paid. „i,to the M tJaU h »
tioi. d with int.n.st for the s,ii„e as aforesaid, nn the dav an.l tune and ,n the niani, r
T IK I A^ MKNT of the sai.l suMi of money •» the said pio^ ,s ei,t.oii«,l or of the interest
flereonor.my par. thereof or in «u.e the .Mort.-i,-or shall attempt to ^d or Is, ?se
er m t he same to l,e sei.ed or taken in ex..eution without th.eonsent of t « >"rt,t J '
lal^, • iT- »' """""■"'•■"^"ra.ss,«ns to sueh sale, removal or dis,H.s.d therj,? twit'
hadam.ohtaii.edinwntu.KTHKNand ,., such e,«e ,t shall and ma' he law , 1 f 'r he
M . aa^ee. hi . e.eeutors. adniniis.rators ,.r a.ssiH„s with h.s or their i,-ry.,u or er>a I
. . V tn"ent'. r!:; ""'T'"" "' "^"TT "^ '''• '" '^^'^^ ""*' ^-l-r.' h. any tune, .? «
It.. da> tnenter.ntoa.id upon any lamls. tenements, h.,usesand pre.uises wher.soev.^
and « hats,«.ver where the »a.d ^.ood« and ehattels or any ,Mut thereof "..vIh n for
such penu,n« to break and foree o,... any d s. locks, ..Irs, Is.lts fL"em,i«; I ' '
gates, fences, houses, hi.ild.nKs, ench,su,es and place for tho p.,r,K,He of taknig ^.sesm ..;
II M'lll. MiiUniAOES.
<'f mill rfiiiiiviii){ tlic »jii<l ginidK niid cIihIIi'Ih- .\NI> ii|k>ii niiil fniiii niiil iiftiT the
tiikiiii; (Missessi..' of siiili uikkIh rtiiil iIii.MoIk i»m Bfnruiuiiil, it »lmll iind iiiny \iv limfiil
mill till' .Miirtu'ii;.'!'!', Inn I'xrtiitiiiM. »iliiiinistriitor« nr ajo-iyiiH, riiid rmli nr nny nf tliiiii.
IS nnil iiri' lureliy iiiitlinri/cil niul riiiiuiwiTcil In mII llii' wiiil «iwhIh hiiiI iliiilii-U mi- niiy
iif them i.r iitiy |uitt tlitTi'i.f iit iiulilic Hiu-timi i.r |iiivnti' h»1h, hh tn tlioiii iir Hiiy of trii-m
limy Hfi'iii iiu-vt ANh from im<l out of the |>riHT«ls of «iuli m\|<. m tlif Hr?.t |>liiri- (•> |.iiy
liiiil niiiiliiirsf liliii<ti'lf or tlu'iiiNt'lvi-ii all hinli miiim mul »iim of inont-y hi. iiiuy tlii'ii U-
iliu- l.y nrtui' of tins'.' I'ri'si'nts, luid nil such t;.\|it'iiiu'n lut iiiiiy Unw In-iii mcurri'il liy
the .M.iityinji'f, his I'Xniitois, (iiliiiiiiistnitors or immgiiH ni foiis.inieiut< of ihi' ilef.iiilt,
iifU'li'it or f.iiliiri' of tin- .Mortijii^or, his ixniilor*. .uliiuiiistritors or iismnim in |iiiyiiifiit
of till- siiiil Kiiiii of iiioiuy with iiitirt'sl thcn'oii U'talxivu iiu'iitiiiin'cl. or in iiiiisi'iniciiiT of
Kuch siili'orrt'iuovaliisdliovt! iiifiilionfil, .iiiil in tluiuAt phicuto pny unto tin- Mortj,'in;. .r,
his I'Xi'iMitors, luliiiiiiistmtors .iinl iissiguM itll such surplus as m.iy riiii^iiii iifter such sule
iiiid iiliir piiyiiunt of itll such sum or huiiih oi money ami inti'rtsi ihi'ii-oii as may Iw
(luf hy virtuf of thfsc I'rt'.sents at thr liiiii' of kucIi sfi/im' and aflor paymi'iit of the
oi>Ht>», charges and expenses incurred liy such seizure and sale as afores,.id :
I'komukii ai.» avs. nevertheless, that it shall not lieincumtient on the Mortnaiiie.
Iiis executors, administrators .,r assii;iis to s.U und ilispose of the said t{""<l" and
eh iltels. Iiiit that iii case of default of payment of the said sum of money with interest
thereon as aforesaid, it shall and may he lawful for ihe .Mort«a«ee, his executors,
ailmiiiisirators or assif-ns peaceahly and .|iiittly to have, hold, use. occupy, possess and
enjoy the s.aid ((oocU and 'attels wiihuiit the let, molestation, eviction, hindrance or
interruption of the Mort^;,.^or, his execiitorM, administrators or hs»ii;iis or any .if them
or any other p.'rson or jiersoiis whomsoever. Anh the .MortuiiKor doth licretiy further
(OVKNANT, I'HOMISK AND Ac^RKK to and Hithtli.' .Mort({a^'ce. his executors, idmiiiistralors
and assigns that in case the sum of money lealized under any such s;ih' as alKivi- men-
tioned shall nol he siilhcieiit to pay the whole amount due at the time of such side, that
the Mort^'aijor. his executors or admii.vtrators shall and will forthwith pay or cause to
lie paid unto the Mortuat;ee. his executors, adiiiiiiistiaiors ,oid assigns all such sum or
sumc of money with interest thereon as m.iy then he remaiiiiiix dm-
.Anii the MortgRi;or doth pu' tli.- .Mortgau'ei' ii' tli.' full possession of said (JoikIh
and chattel:, hy dilivering to him this Indenture in th.- nam.- ..f all the said )(.hhU ami
chattels at the sealing and delu. ,y hereof :
Ami the Mortnayor . (ivknants with the Mongagee that hi' will, duriiii,' the con-
tinuance .if this iii.irtgage and any and every renewal thereof, insure th" chatteKs
heri'inhefore mentioned au'aiiist loss or damage iiy tire in wmie insiiranci- -.Ihie (author-
ize.! t.i transact liusiiiess in Canada) in the sum of not less than Five fjundred Dollars,
and will pay all pnimiims ami moneys neress.iry for that purposi- as the saiiu' lii-cmes
.lile, ami will oil demanii a>si;4n ami .1. liver ..ver t.. the s.iid M..rtu'ai,'.'.'. his ex.'cut.irs
and a.liiiinistrat.irs the p..|icy or p.ilicies .if u surance ami rec.ipts therct.iappertaiiiini! :
I'ltovii.Eii thai if on .Irfinilt of payment of sai.l premium or siiiiis of money hy the
Mortgagor, the Mortgagee, his exicutors or administrators may pay the same, an.l ^uili
sums ..f money shall he ailded to the debt herehy Beciired (amlshafl hear interest at the
sjiiiie rate from the ilay of such payment) ami shall lie rep-'vahle with the pnn.-ipal sum
hereby secured.
In wiTVKss wiiKKKDF the parties t.. these I'ri'senis ha\e hereunto set th.ir liaiid.s
and seals.
I), hver.'.l I
e„f I
Signed, .'•' aled an.
in the pres.i
t-'ll \KI.KS
Kk. F.lVEl
Firt Iluhiinil IhMiirs nunti'iiinl.
Witness : I
ChaKI Es Si MMKKS. J
MMEKS
.IaMK- SmIiI'.
'A'ai.ti.i; WiNTFi
«
frt'tii (hi' ,U"*7./(i«/.'#', thf .ti/m uf
.lAM^^ .SMITH.
.\KKIt.AVIT ..K M.iKT.iAOKK.
ON'rAHlO: I I. Waltir Winters, of ihe T..". iisliip ... Staiufonl, in the
CofNTV OK Wm.i.AM', ('.unity of W.lliii.l. y.'.iiian. the .M.irtgagee in the foregoing
TO WIT; I Bill of Sale by way of .Mortgage named, make oath and sjiy :
Thit dames Smith, the Mortgagor in the foregoing Hill of Sale hy way of Mortgage
CIIATIIl. \lip|cri;A<;Es.
N6
im,K-.l m jiiMtly »i,.l ,Mily ,n.lcl.to.l t ■, .1,. .le,».neiit. W^ltrr \V,„t.T. U.c M„rt
Ihr H.U,1 Kill „f N,l.. |,y „.„y „f M„r,y„^j.. „.„„ „..,.„„,, ,„ , f^,„, J ,, ,
t . ..,,1 Uill of Sal,. I,y w„y ..f MMrtu»>;.- .-.HHiimr ll... ore.l.t»r>. of the w„l .lain.s .S„.„h
til. .M., I !-„«,. r ih.r,-ii. ,mm.-.l, .,r prrvmin^j tlu- crcUitorii of »uth M..rtu,i«..r from
i.l.tJiiiiiiiK |.«>iii. Ill ..fnny, 1,11111 as{iiii.>i liim. "* **
Swi.KN Im fi.rii iiu' .It till- T..HII .,f ,
W.lUml. Ml thr (' ty ..f WfUiiiid. I
this tOlltll ,l.iy nf NcVi'iiiIh;!-, in ll,,. I WAl.TKK WlVTKR^.
yfur nf niir I,iinl IIHki. |
K. It Hki.ikms. ,/. P. i„ .„„lf,.r Ihr CwiHln .if HVW.ui./.
\l 1 ll.*\IT of \\ IINK-^.
CoiNTV nr W r,.LAJ.i., ,n th« County of W.lUn.l. make .«ah »n.l K,iy
TO WIT ; ) ^ ■
Mor «,.^.. .luly ,i«m..l Km C..1 ,...,1 ..,.|,v..r...l l,y .laii.o. .S„,„|. ,„„1 \V,.l,..r \\„L,..\hl
partioH then-to »n.l that tl». n»,iu. riiarK-H Summers. ».., mkI s„l,.or,lH..i .us a »„».;« t..
the ..xerufon tluToof. „ .,f ,h,. ,,p,,,„, li.ui.lwn. in,- of me tl..» ,l..|,onmi.. an,l ,|,a. ,1 .
T 1 , 7;V"^"' '" "»• 1"«" "f WWlaml, in .1,0 mid County of W.-lla,,,! on the
tenth <l»y of NovciiiIkt, oho lliou wuI ninv liun.lml.
SmiiiiN Ih fore iiiir at Wcllaml, in ,
tlu- County of WelUmi. tlii> inillii
day of .Nov,-inl"T in tli,. yiar of r,,ir ( t'lui.iK- .-^i >imkr.s.
Iv l; llu I fviv .1 !•
pi Maturity of Chattel Mortgages If ;i .-hattol u„,rt'M-o h.iv-
lii;; thr uMwi covoimi.ts tor puyinont ..l' prmcipjil aini intorcst i^T iiT.t ,.,ii,l
at maturity tlio iiiort;;af,'oo is f.v,. to take .mv oi„. „f > v.nil crurvs
I Ho nmy j,m liini.soir ,i[,.,„ tin- pn.iiiiMs uii.l tuko |H,sH.-,si,,n ..f the
gOol.M mill ivinovo til. -111. Ill- he may send a hailitl".
II ho takes [.(wsej^iuii of tlie'-rooiis he is expwtoii to sell them either
l.v i.uliiie auction or l,y ,,rivut« .sale, ami if there is any surpiu.s monev
.ilter iiaymentol priiiciiiai, iiitt-rest .•iml eo.sis ii m tint 1x3 tun.eil over to
the mortpi-or or his lejral representfttives. |iut some mortM.^es are .so
written that he is not IhmI.i.I to sell |,„t „,ay simply take p.^.s^ssT,,,, of the
good.s ami hoM them as his own (see Sec 27-.'), or
2. He may -ue the iiiortoaL;or for tli.' Miiioiint .lu.- ...n the inon-a.re
or, "■' "^ '
o He m.ay leave the -oo,is i„ the han.ls ,,f tiie m.irt-a-or aiel ,xten4
all the time l,,r p.iyim nt he ilesiivs up to iweiitv vears. Anv time liur-
ini; th.it time he .looms it necessary he m.ay tike j^o-s-sesHio,, uf the .r.KxIs
ll they can he foun.l. Of course, if he .lesires to keep Ix.th his lien ami
lue erenee ,,ver other creilitors o„„,l, he must Hie a renewal certiticate
withm the tune provnled hy statute in the Province wh.Te the -ikhIs .ire
located. He can Hie tins renewal certitic.-it, without the mofio,,", ,,.-., ,,,,,.
aent or re(|Uest. "" "
A chattel mortj,'af,'e drawn for a shorter juriod, in anv of the Prov-
incet..thHn the time Hxed hy statute C.r renewal, that is not {.aid when due
nee.1 not he close.l or renewed until the oNpiratioii uf the st.itutorv time
An earlier renewal would he useless. ^
NO
< IIAriKl. MiiKTOAfiE-S.
A fliiitt.1 iii«>rtpi;,'o that lias iinl Immii itii.\v..| itt tin- |>rn|Hr tiiiif
iicconliii^r to stiituU', if the iiiuiIl'i>;,'ic' wishes ti. ptniii his |.iii)rit.\ .ivir
ntli.r CTiiiitorN hi iiHiHt tiiki- [KMsisxiuii of the ;,'>kk|n. aftiT svhiih iiiiy
il.xiivd titiir iiuiy Ih' .•-t(ii,l.<| of i-oiirsi, if .luriiijr th.- tiiu.' thr iiiort-
;;ii;,'i' sUhm\ v.iiil ii^jaiiixt thini paitiiM, nuy of tlic p.<M|s wen- piirchaMil or
iiic.it;.Mi;<-,l or sfi/r.j iituhr "'xi'ditioii the iiiort;;aj,'c'e coujil not iiiiiki' his
' '^iip- vah-l at,'iiiiist such imrli. s l.y lakiii;; jM.H.si'N.siotl, hut it Wuiihl l.r
);<K)(I ii;;iiiiist all others
'iVt Taking Possession. Th. inort;.'a;;ee cannot take i^wwesHion of
the p,...|s unlil ill. niori;;,!;;!' is ilu.-. unless Home coveniuit is broken that
;:ives the ri^'ht of | KjsMCSsion. (See previous section for |irofee(lin;,'H at
maturity.} The forms in );eneral use ;.'ive tho mc.rt;,'a;,'ee the ri;:hl to
seize the j^tKxls niort;,'a{,'e.l in case of .h'fault in payment, or for ncmper-
formance of any of the other ciivenants. Some of the niortj;a;,'es contain
a forfeiture clau.se that ;;ive-. the niort;ra;;ee not only the^ri^'lit to take
jK.ssession of the i^'chhIm upon -lefanlt of payment, hut also U) retain tin in
as his own proj)erty. (Sei' .Sec. "JTl i
If the ;,'o.Mis are move.! out of tli- premises witliout tlie con.sent of
till- mort;;a;,'.-e it usually ;.'ivi-s the rij^ht to seize, or if any jH.rtion of the
>,'.mh|.s covereii hy the mort^M;;e are <iis|>ose<i of of concenl<Ml it also jfivcs
the ri'_'ht to take possession.
Furnituri' ami pxxls not inrluih-il in the niort;,'af,'e ainnot Iw seizeil
unless there is a ;;eneral clause covering; them.
To take iKjssession ille;,'ally j^ives the owner of tho yooJs or his lejial
reprewntatives a claim for clama;,'es which may })<• recovered l>v onlinary
.suit. an. i if successful the amount of the ju.i;!;nient woul.l !).• "applid ..'n
the mort;,Mj;e <hA-t
'Hit. Renewal of Chattel Mortgages. A chattol m.>rt;,'ap'. Inihj,'
an instrum.nt umler seal aii.l ii..t ati'.-ciin;.' inter.sts in land". hoMs the
rhiiiii a<,'airist the dehtor for twenty years. Fjich Province lias, however,
tixed hy statute a shorter time in which it holds the lien on the /im/inh/
and priority of claim over other creditors. Th«'refore. if the niortuM;.'.' i.s
not paid at maturity ami it is ilesired to Ik; hindin;,' a;,'ain.st third parii. s
it must !»■ reti.we.l promptly within the time provided in each i'rovince.
In Ontario it holds tlie projM-rty for one year only from date of
execution unless renewed, or the },'<)o<is taken pos,session of, or a new
moitjja}:e execut-cd. To liold the ;,'(MMis apiin.st other cre.jitors it must !«•
renewed irit/.iii th< lout tl, i rt>f •lui/s In^fore the year expires, ami so on
troiii year t" viai as Imii; as it runs.
In Manitoba it is the .same its for < »nlario. except that they niii two
years Irom date t,{ jilnni ,inii .so on from tinie to time.
Ill the North-West Territories they are }r,M)d for two years from
date of Hlin;: with<iUl ri'iiewal, l.ut must he'renewed within tlie'last thirty
days 1.. Ion- tie- i\|.lr,il i..ii ,,f i|,e two-yejir p<'rio<i.
In British Columbia they are ffiHxl f.,r five y.'ars with. mt renewal.
In New Brunswick a renewal statement must lie filed each year
showiii;; til. Hill. unit y. t .itie. If this is not done and the j;oods ari' taken
'II. Ml 11 MOKTflAfiKS,
S7
un.l.T fxicuti.m tl.o hol.lcr luus thirty .iiivs in w hid. t.. fih- such slat. i„.ni
an. i; ii.,t (lour ht- loaes hix claim oii the j,'.xxIm, uiid th.-y may In; h,M
uh>Kt the fxtriitiiiii. "^
Thi- rrnrw.ij cTtitioiU" or staU-inent tniist conUitj the infonnatioit
Hhowil 111 the f..ll..uiii^r H,.|„.whI Foniiof aoh.llt.l liinit;;u;r,.. which .'iv.-M •
I \y .latr (.1 ..n-iiuil clmtt.-l niuit^mj;.', th.- pnitirs t„ it, tli.-ir nsi^.-iici-
.late <.t tilii.;:. unii that th.- ii„,rt;.,i;,.f has i,„t h.-.i, assi;.,,,..!, aii'l if it has
b.'."ii aH«i},Mi.M|. ,t luuHt ;;iv.' th.- nain*- ..f thr ns>*\<^im: aii<i if assi.mud
ii.'.n- than Miav it mIioiiM ^nv,. ,.uoh a.s.Ni;:nn..nt, aii.l tiir na f tho
hul.l.T at th.- till.,' ol ivnfwiil, al>n th- .,ri-ii.al amount of th.' n.oi-tir"«f
th- aiiioiints |,ai(i, an.i .iat<' wh.-i. ],ai.|. ami th- amount still .liu-
'Ih.' followin- form, simply I,y .•hiiii-ii.ir MM. ,f r.n.vinc- will
imNWLT for ovory proviiicf
'i'ii Form of Renewal Statement.
St.ct.-m.nt-.\liil,iiih- th.- mt-.v.-t of Wiilt-r Wint-.s, .,i i.i- Tuwi.shi.,
of St.imlor.1. ("u.n.ty of \V..llan.|, in the prop.-rtv m-ntion-.l in a Chattel
.Mo,t-a^|- -lati-.! tl... -2.1.1 -lay of Au;;ust, IfS'Mt. ma:i- 1,-tw-.. .lam.'.s S.niih
..f th- ..wnshii, of Stainfonl, C.iunty of W-lland. of th.- on- part a...l
Waltt-r Wmt.-i-s.ot th- Town.shii> of Stamfo.-.l.afon-.sai.l, ,..f th.- oth-r part
ami HU-i II. th- otHc- of th- Chrk of th.- Cainty C.airt of th- fountv <'f
W .lan.l on th- 2n.l .jay ..f Au-ust, I8!»!t, an.l ..f th.- am.mnt .ju- f,,r prin-
cipal an.l int.-n-st th.r.-oii. an.l „( all i-aym-nls ma.i- on account th.-r.-of
Ih.- sa.d Wait.r Wmt.rs is still th.- .M.jit-ap-.- of th.- sai.l pixmt-rty
an.l has not ass,;;,,-, 1 th- sai.l Mortj,'a;;... ( )n- pavm-.,t has In-.-n .na'!,. ,in
accou.it .)t the sail] .Mv)rt;,'a;,'-
•luiy 2i)th, I'lOO. ( 'Tish rcc.-iv.-.l, n'W.
Th.- amount still ilu.- principal an.i int-n-.st on th.- sai.l Mort"a".- is
the sum .if thi-.-t- hun.l.i-.| .i.)llai-M, co.iipiit.-.i as follows : " "
''■■''"•'I"'' S5()0 00
Interfst, 1 y.-ar . n.lin- Aii;,ii.st 2iul, 1900 . . 30 00
l'>y i-ash, .liilv 2:ttli moo.
Cr.
So;jo 00
, 2:!() III)
iS.'Joo 01)
r>;ilaiic.' <liii' ...
Coi-STY OF Wem.am-, I I W ,!,,,■ Wintc-s. of th- T.,«,.ship of Stam-
,."''","■'''■ I l"i-.l. 11. th. ( uuntv of W.-llaii.i. th- M.i.-t"a ■
nam-.| in th.- ( ■l,att, I .Mortpijro n.cntiont-1 in" th.- within stat.niuiit, niak.-
oatl. an.l say •
i. That til.' \\ithiii stat-m.nl is tin,-
2 That th.- t:hatt-l M..rti,'a;,'- m.nti.ai.-.i in th- sai.l sr.VTKMEXT has
ii.it l..'.ri k.-pt on f.iot for any tVau.luJ.-nt piirpo.se.
SwiiKv h.f,,.-,. 111.- at th.- T.iwn of \
W-llan.i, in ih- ( '.a.nty ..f W.-llan.l. W.xi.TKii Wivii Its
this 2!»th .lay .>f July, A.D . I'.tOO. I
K I{ Hki.i.kms, ., r„mmixnli»t(r fur taktiitf .///i./t/ri/s iv the
I I.e. J., tt('.
I
MICROCOPy RtSOlUIION TEST CHAR!
ANSI ond ISO lESI CHART No 2
1.0
■ 3.3
I.I
1^
■ 40
.25
1.4
2.2
1.8
1.6
^ >1PPLIED IIVMGE Inc
88
• llATTF.t, MOKTOAOES.
'fir* Assignment of Chattel Mortgages. A (•liattol moitjrafjc is
iu>\ a n--..tial.|.' iii-truiumt, l.iit it may \,,- tnui.slum.Ml „y s.ssi.rnment.
I h<' assijiuiiuMit iinisi l.e tilcl iit the same oHice where the inort^'inre'^is Hied,
and same I'im' diari,'!'!! a-, for a disrli:u'u"'. "
•i««». Discharge of Chattel Mortgage. Wluu a chattel iiiort<'-a<'e
has been paid a (li.sclmi<,'e >l„,uld he tiled also at the office where'' the
inort<,raj;e i.s Hied. The fee for Ontario is 5()c, .AFanitoba Mh, .\,,rth-\V.-st
Territiines, oOc, New P.runswick, Nova Scotia and Prince Edward Island
25 cents
In Hritish ColumKia tlie mortiraije is disclia'X'.'d hv hein" marked
"satisHed." The fee is ?<1.00. Xewf,, midland fee is ?1.0().
See followini,' Statutory Form :
'i?). Discharge c-f Chattel Mortgage
I)0MI\1(»\ OF CANADA, )
PitUVlNCK 111 ONTAKIo, (■
To tlir Clerk of tlir ('(.luity Court of the Cuuiitv of Welland. i
Waher Winters, of the Townsliij)' of Stamford, Count v of Welland, yeo-
nian.dn certify that Jainrs Smith, of the Township of 'Stamford, Countv
of Willand, Province of Ontario, luith satisfied all monov due on or to
grow due un a cetain Chattrl Mortj,'aKe made liy James Sniith, aforesaid,
to W alter Winters, of the Town.ship of Stamford, aforesaiil. wliieh Mort-
gaye hears date the 2nd day of August, A.D. 1899, and was re'dst.red in the
office of tiie Clerk of the County Court of the Countv of W.lland on the
2nd day ot Au<;u.st, A.]). l.MMI, as No. -liHl.
That such Chattel Moi't;,'a<,'e lias not heeii assi;r,„.,l, a„,l tlmt I a
person entitled hy law in i
theref.ire dischar;,'i'd,
W'itie-s my hand tlii^ JUth
\Vitne.-,s : ,
CHAHI.KS Si MMKUS,
Stiuiifoi-d, Student. I
ivi- the money, and tli.it such Mort;.';;!!,'
am the
'e IS
day i>f .lillv, A.D. moo.
WaI.IKU WlNTIlLS.
0NT.\I{IO: I I, Charles Summers, of the Township of
Cor.NTV oi Wki.i.am. Stamford Countv of W.-Uand, .student, make
■1" \\IT; I oath and say:
1, That I w.is personally pre.sent and di<l .see the within Certificate
of Di.scharjre of Chattel .Mort^^age duly signed, .se-ale.j ,ind .-xecuted hy
Walter Winters, one of thc^ parties thereto
2. That the said Certificate was executed at thr Town ..f Welland.
S. That I know the said parties.
4. That I am a subseril.in;,' witness to the
Swoitx before me at Wrlhind, in tie- )
County of Welland, this -JUth day of '
July, in the year of our Lord 1900. I
F ]{ Hkllems, « romminfiionrv for tnkimj ajffiduvitti in H.C.J.
■aid Certificate.
ChaUI.KS .SrMMKIl.S.
CHATTKI, MOKT<JA<iES.
vSO
'ttH. Expense of Closing a Chattel Mortgage TIk- ( »m,irio
Statutes hIIdw tiiL' I'uliuwiii;,' in-, nuil ixjienses, ami iiu more unless
ar^rui'il upon ;
1. For niakiiiL,' seizure wiirrr amount of .ji'l.t 'loi's not exceed 8100,
tsi.OO.
2
:!.
4.
.5.
li'l oviT it will liolil aj,'ainst other cri'.iitors
liaiikrupcy, wlirn it couM lie set asiile \<y an
Where it exceeds #100, i?1.50.
One man keepinij jiossession, per day, Sl.OO.
If [irinted a<ive'rtisenientN are used, not to exceed 81. oO.
For eatalotjues, sale and coinniission and delivery cif rjoods, ,3 cents
on the dollar on the net proceeds of the sale up to 8100. When over
8100. then 2h per cent, on the excess over 8100.
6. When debt is paid before sale, a conunission of 2k per cent., and
the amount actually disbursed in fartay;e not to exceed 82.00.
The party levyinj,' the distre.ss must ^'ive a copy uf the chs'-ges to the
person <lestrained ujion.
The I'xpeiise in the otlb'r provinces is similar.
»■?{>. Cautions. Itead all the covenants c. i-fully. If a mortgage is
taken :ls security for a debt previously contra.'li'il it will not be binding
against other cre.litors if there is not sutlicient otlier [iroiierty to pay tluir
claims in full.
If money is actually \
unless done on the eve of
action for that purpose.
If the mortgagee gives consent to the mortgagor to dispo.se of any of
the articles covereil by the mortgage it virtually destroys his lien, and
other creditors may come in and share i)ro rata. Relieving nart relieves
all. '
A chattel mortgage' cov.'ring the growing crops of ,-i farm wnuld
.lot cover the crops of the next year unless it so expressly pr(.)vide'd.
Articles of furniture, etc., belonging to the wife either by purchase or
gift caimot be si'ized mider a mortgage given by the husband, even though
they are nanieil in it, unless she also signed the UKjrtgage.
If the mortgagor disposes of any of the goods covered bj' a mortgage,
or removes them out of the county without the consent of the mortgagee
he is liable to a criminal action. It is also a breach of a covenant that
gives the mortgagee the riglit of po.s.se.ssion.
If the mortgagee simply takes possession of the goods and holds them
as his own without selling them the mortgagor has then an "ei|uitvof
redemption " for a limited time, wliich the courts will recognize, and he
nuiy enter an action ag.-iinst tlie mortgagee for "redemption or sale of the
goods."
Ml iisn JACKS.
'HAlTKi; NIII
M<>!;t(;.\(;i;s.
•.'S« A Mortgage ..n ical estate is a <l.c(l or eonveynn.'e of the
property l>y the dehtor to tlie creditor to s,-ciire tiie payment of a ceitain
sum of money, with a " proviso" tliat it shall hecouie void upon the pav-
nient ot the deht and accumulated interest. It must therefore he n'lnein-
Ix'red that all the mortj,'a;jor retains is the possession and the 'enuiiv of
redeaiption." '
.Mort<;ages, and deeds also, shoul<l be executed in duplicate on,, part
to he left in tlie Re},'istry Otiice and the other one retained l.y n'iort;;ajree.
'iSl Securing Clear Title. Before payin^r ov,.r the money there
slio.ild lie an (//..s//'.(-/ ol title pHMnired ; then si<,rn and re;,'iNter the mort-
gtv^i' an<l have the abstract continued so as to include the'"iiiorti'a"-e thus
inakinj,' certain that nothing' lias been entered in the meantime '"•Uthe
saine time this is bein;,' .Ijjjie the Sheriffs ottice should be searched to see
It there are any jud<jnieiits, and the Treasurer's office to s-je if taxes are
all paid. With thes.- precautions a safe title would be assured. Where
the Tjrrens Sjst.Mu of lands transfer is adopted, the certiHccte of title
will cont.iin all the facts, exceiit arrears of t.ix.
_ -iS-i. Registration of Mortgages. In all tl,.- \'^.,^inv<■s a mort<'a^'e
IS hindiiif,' on the property .is .soon as it is e.\ecuted, but the .nrst mortTrarre
regi.stered is the one that has first claim. Of three mort;;a;;es that nii^'ht
be ^'iven on the same property the same week or dav, thehVst one that i.s
recorded is first mortga;,'e. no difference whethei it was writtin first or
la^t.
All inort;:a;,'es and other instruments re},'istered must be v,.riticd by
afhd.ivit m proper form of a subscribing: witness present at the time of
the sii,'iiin<;.
The Torrens system is n-nv in fonv in -M;iniloba, Ontario nii.l the
North-We.st IVrritorie.s. (See Section :r)(i. i It was introduced in Mani-
toba and Ontario in 1X8,5, and in the North- West Territories in lS.S(i, and
all jrrants from the Crown since that time in tho.se Provinces are under its
provi,«ions. Where lands are under that system niortf;af,'es on them must
be re<,'istered in order to be \alid, and thev cannot be re<ri.stered without
the {iroduction of the certiticate of title.' A memoran.lum of the trans-
action IS entered by the proper officer at the Land Titles office on the
Certificate of Title, and al.so on the dupli.-ate certificate in th,' .fficr and
this constitutes the retji.stratioii.
Mort<,'a<;es on lands not broii-ht uiuler that system are re^ristered in
the usual way by leaviii-: a copy in the Re;,ri.stry Office Th'^- fees for
re;,Mstration under tlie Refristry Acts of the different Provinces are
very much the same. For Ontario the fees are S1.4() where the a^^r.-rati'
of words to be copied does not exce.-.l 700, and 1.5 cents for each addi-
tional hundred words up ♦o 1,400, and 10 cents for .■ach a-Mitioiial 100
words or fraction of a huiidrel o\ r 1,400.
MOIITGAOES.
91
I't pussossion.
In Ontario tfio statutes provide that in order to lessen the cost of
refiistratioii the niortf,'a<,'e may have in.lorsed upon it " not to re;,'ister in
full," in which case the rej;istrar does not v()[)y the niorti,'aj;e in Ill's books,
hut the iuort<;a>,'e is nuiiihered and uk lelv ih". ,|;ite and' name entend in
the books. The fee is SI. 00.
'iH:t Implied Covenants in a iiinn;;,i;r'' are :
1. 'lu t>ay the m(irt<;.'i;,'e money and interest.
■J, .\ ^'ood titlr.
;i. A ri;,'ht t(j convey.
4. That on default the niort;.ra^'ee shall ha\.
."). Free from all incumbrance.
ti. That the mort;,'a<;or shall execute such further assurances of the
lauds as may be rec|uisite.
7. That the mort<jaijor has done nothing,' to encnmbi-r the lamjs.
Tie re are no other covenants iiniilin/ in a niort<,'a;,'e, but any otiiers
may be expressed that are ac;reed Ujion. Do n.it fail to rrad, ni- },:i\-,- n ad,
carefully the niortgaj^'e before yo>i sij,;n it.
'iS4. Mortgage Covenants. There arr various claus.s ..r cov mants
in a mort;,'a^'e that should lnj noticed. One provides that if interest is not
jiaid it may be compoumh'd : another, that if taxes are not ]);dd th.> lender
may pay them and ehari,'e the same rate of interest that the mi>rt;,'af,'e
draws; another one provides that if the l>orrower does not keep'^the
iiuildin<,'s insinvd for a certain specified sum the lender may insure them
ami charge the .Nime rate of interest th mortj,'aj;e draws. If the value of
the security is beiii;,' depivci.ited in any way the niort^'a;,'ee may take
possession.
Loan companies and soiuctiiees ]irivate individuals jiut ii, xarmus
extra covenants to beta-r secure them.selves. and thesr slmuld all be care-
fully noticed before si<;ninj; the mortifaije.
For the usual (ovenants that a mort;_'ai,re contains see following,' sec-
tion. "Form of .Mort!.oa;,'e " which follows the Ontario .Short Forms of
Morl^Mj^'r with coven.'ints :
'iN."*. Form of Mortgage.
Vll)l6 unDCIltUrC iii.uio (m <luplic,ito,th.tirstaayof March, one thousand nine
hiiii.lr.'il, in puiMi.iur.- ..t the Act \\-,yecUni: .ShiTt Forms of MortL;iii;e.s :
1!kt« Ki.N .l:iiius R.ititTt MiiiiiiiiiL,'. of till' TowiiHhi]! of .\iicHstor, ill the C.iunty of
Brant, rrovimc of ( Intario, f^irmui-, of the hrst part, hiTcinaftrr i.ilhni the iiiorli^agor ;
Ma .lane .M.iniiii.K, wifi- of tlic p.irty of the tirst part, of the .second part ;
.\iui .lames VVilham Hrown. of tlu' Town.ship ..f .Vmanter afore.sjiid, gentlem.tn, of
thi' third part. hercin.ifttT called the iiiortija;;!'!'.
\VlT.^^:s.■^^:TH that in considemtioii of One Thousand (.*1,<KK)^ Dollars of lawful
nioii,.y ,,f Canad.i nowpaid by the said Mortgagee to the said .Mortu'agor (the receipt
whereof is hereliy acknowledi,'i!d). The said MortL;ni,'or doth (iraiit and Mortijaye unto
the said Mort'j;a;.,'ee, his heirs, execiitc^rs, adniir.istriMc.rs and assiijns fore%-er.
.Vl.l. iNli si.vi^^iL.AU that eertaiii |i.areel or tract of land ami |ireiiii»e.s situate, lying
and lieim; in the Township of .Ancaster .■ifores.iiil, eont.ained hy actual meai^ii'-eiiient 'line
llundreil .\cre.s, more or less, lieing composed of Lot Nuii'd.er Twelvi (I'J), on the
Fourth (4th) Concession of the Township of .\ncasteraf<'res;iid ; ami lii.i .I.me .Manning,
of the .second part, hereby bars her dower in said lands.
92
MiiUn.ACE.S.
I'KDVii.Kii thi'* M.Tti-ayeto bo \uid oti |i,iymetit of One Thnus.inil Dr.M.irsof lawful
money of CaMiiii/i «itli intei-.st thereon at live per eeiit. iierannuiii. ,is follows : Tliesaiil
prineipal sum of One Tliou.s;iM,l Dollars to he ilue and payable in f.iur eijuil annual
instalments of Two llun.lre.l and Kilty Dollars each, with interest at the ratei>f live per
cent, per annum on the inipai.l i.riiu-ipal. payalih^ annually witli ejicli instalment of
|)rineipal. Tlie tirst of such payments of |ii)ijeipal and niteri^t lo he iiu«^ and pavahleon
the lirst ilay of Mareh, A.D. I'.tdl. ami taxes and purformaii.v of statute lalior. '
The said Mortyayor covenants witli the siiil Morti-ai^ee that the .M..rt!.'ai,'or will
imy the mortuajje money and interest and .)lwerve tlir s»id proviso, that (he Mo'rtKa<'or
hasa good title m fee simple to the said lands, and ihat he li.is the ii;;lit to convey the
said lands to the sjiid Mortgatjee ;
And that on default the Mortgagee shall ha\r .pnet posse
free from ;dl encumbrances ;
And that the said Mort
as may be requisite;
And that the snid MorfgaL'.T h.is dnr.e im act to encumber the said lands ;
And that the .said M..rtgag..r wdl insure the Huildinus on the said laiids t
amount of not less than .-ix Ilii.idred Dollars currency ;
And the 8.ai<l Mortgagor doth Uelea.se t.. the said Mortgagee all hisclaims upo
.said lands subject to the said proviso.
Provided tliat the laid Mortgagee on default of payment for foin months
giving three m..iitlis' notice in writiie,', enter on and lease or sell the said lamls.
I'rovided that the Mortgagee may distrain for arrears of interest.
I'n.vided thai in default ..f the payment of the interest hereby secured t
Iiereby securi'd shall hecotiir payable.
I'rovidid th.it until default ..f pa mi
the said lands.
I.N Wir.sKss Whkukof th
seals.
ion of the said lands,
r will execute- such further assurances of the said land.i
• ' the
11 tlie
lay, on
> principal
111 llie Mortgagor shall have i|uict possesion of
lid p.-.rtks hereto li.ive h.reuiito ^el their hands , and
Signed, scaled and delivered j
in the presence of ,
K, H
Coi NTV
< ll.MsTKh
■K I'.IUNT,
W 11
I. Itll
.IaMF- lloFKIlT MaNM.Vi
Io.\ d.*SK M INMNO.
Ilaimltoii Olinst.'d, ,,f the \ iHage of Ancaster.
in the
1,
County of lirant, manufacturer, make oath and say .
That 1 was personally present, and di.l seethe within Instrument and Duplicate
hv .lai
lo'herl Manning and Ida
therfi>f duly signed, sealed and executee
Manning, two ,.f the parties theret.>.
'-'. That the s.iid instrument and .iuplicate were executed at the Villau'e of Aucast
f the sjiid Township of Ancaster.
3. That I know the said parties.
4. That 1 am a subscribing witness to the said liisirumeiit and Duplicate.
SwouN before me at the Villa!
yof
in th
i\, r.Kx).
H. N. HiKiiAiii.,
■ Village of^
.\ncaster, in the County of lirant. I
this first day of Marcl ' '
of .lur L..rd, r.KX).
U. 11. Ol,M.,TKl>
e year j
miiov., r.i,. r/.,r /.i/,i>i;/ ntH'I'iiitx iji II. ( '. ,/., ,<c-.
•iHO. Sinking Fund Mortgages hit tlinso in wliich the princii)!-!
and interest tu;,'i,'tlier an- divi.lr,! iutn a miiiiljcr cd' nuiu! yearly, or liall'-
yoarly, or tjuartcrly or iiidiitlily jinynicnts. Thi.s forii, is not used nuieli
in Canada sineo tlie recent lei^islation made it conijiulsory to state in the
Repayment Clan.se the four t'oUmviiii,' jiarticulars : (1) The amount of
the loan. (2) The rate of interest. (.*?) The part of each payiient that i.s
for interest (4) Ami the part of each payment tiiat is for principal.
With tliis protection the kirrower may know wh.'ther hi' is pavino-
five, six or twenty jier cent, interest, as the case may be. 'I'iie Buildin"
MOUTGAfJES.
93
soc'ii'tit's arc aliout tln'
fuii'] loiiii of iiiorti'ii'iv
iiily institutions still ii^ih'' this <il,i '-.sinki
"«
•iHl. Payment of Mortgage. The ii'iiaynu'iit cIuuho which provi.lca
when ami how tlic loan or dclit is to he rcpaiij, siiouM havo ;jrcat care an.l
he made so explicit tliat there cannot be any douht or i|uihl.l.> as to the
time anil manner of the payment. Some persons desir.' the whole amoiuit
of principal payaMe in one stnu at a tixed .Inte, Imt the interest pavahle
in annual or .semi-annual instalments, as the case may he. while others
would d.sire to repay part of the principal each year a.", well as the inter-
est. The form shown in precedin;; section is of the latter class, The
wordin;,' can easily b" varied to suit any case.
When a mort;,',i(;e falls due it may he paid without any notice to the
iiiiirti,'ai;ee.
If it is overdue and the morti;aj,'ee il''inaiiil.'< payment for the whole
amount or even part it may he paid in full if the moVt;;amir wishes to do
so. Hut if only part is denuinded ainl only that much )iiel together with
the interest due, then in that case the niort;,Mi:or cannot si:!).sei|Uenflv pay
the balance without ^'iviiii,' six months' notke, or paying; six months'
advance interest. This six months' ailvance interest 'in 'jiavment of a
mort;,'a;,re i)ast due (which is in reality iidy six months' notice Tis a custom
that has become law althonejh it is wA found in the .statutes.
If the mort;,'a<,'e is not paid at maturity the mortgafjeo has several
remedies, any one of which he may pursue : He may briiii; an action to
obtain payment for principal and ii'iterest due: or he may bnntr an action
of ejectment and obtain pos.session of the land bv order of the court an<l
then collect the rents and profits until the full mort^'a>,'e debt and interest
IS paid ; or he may brim,' suit to have the mortj,'af;e f(jreclose<l, in which
event all ecjuities of redemjjlion are barred and he becomes the absolute
owner; or if the mortj^ajr*' eontains a " power of sale " he may take the
le^'al steps to sell, but if the mortj,'aj,'e has no "power of sale" he may
brin;,' actionto havo the lands sold under the direction of the court, in
which case if the proceeils are suthcient the debt and all expen.ses will' be
paid and balance pai.l over to the mort^oigor, and if not sutlicieut the
mortj;an;or will be ordered to pay the balance, and it will stand a;rainst
him if not paid. In Ontario all mortfjai^'cs are declared by statute to con-
tain a power of sale.
If a mortn:age is payabl.^ by instalments and one ,,r mw instalments
are in errears the morti,'ac;ee may sue for the overdue instalments, or he
may sue for the po.ssession of the property, but he cannot be thereby com-
pelled to accept the whole sum of the mortrjage debt, neither to foreclose
uidess he desires to do .so.
When makinj,' payments of either principal or interest it is not advis-
able merely to take a receipt, but the payment should be indorsed on the
back of the mortj,'a(;e.
When a mort(jai;e is payable by instalment.s it i.s advisable to take a
partial dischar<,'e fr(;m the mort;;a(ree, or assignee for eacli instalment as it
IS paid, and then reojister such dischar-re, especially is this a'lvisable if the
morti,'age is for a large amount.
94
MnKI(;A(iKN.
'iHH. Discharge of Mortgage Wh.Mi a :iii)rt;;af:i' 1ms Im'i'd paid
tin- iiiorti,Mu'rr i-- nM|Uirc.i Im -i\.' til'' iiii)rtf,'iit,'i)r ii ilisclmr},'*', whicli is a
statut<-)r\"l'onii of n'cvipt. Wlu-ii this has hfcii tillod out ami si;,'ii.'d in
the pr.'sl-nce of witnuss, cluly sworn, it is registered by the niortj,'u;,'or.
If the iuort;rai:e has heen assi;,fiie('
the assi;'nuient should he as accu-
diseharife as the iiiortt;aj;e itsel
•<■ taken t'ripiii the i;e;,'i^trar'.s
The <late, rejjia-
pi-rtitieate on the
ir alter imvineiit , eitlier IjV
rately de--crilied in the
tration, etc sh'HiM 1
as.si{(nnient.
A ilischnrgu may be given at any time at
the incn-tj^aj^ee or his assiirns or executors.
A dischart;!' operates as a re-conveyance of the lands to the m()rte;ai;or
or his lefjal representatives, and is as ffvid as a re-con veyr.nce.
When a Miorte;,a<r,. has beiMi paid in full the inortirairee is conipell.'d
by law to hand baclTthu niort;,'a;;e, ;uid to return all title deeds and other
papers he may hold in connection with the property that belonjj to the
nior'^'a;;or. The niorti,'a<:i'e is also hound to j^ive a dischar;,'e when pay-
ment'' in full is mmle. The morti^a;,'or shouM immediately reiji-ti'r the
discharj;e.
Tiie mortgaj;or m:iy also have a re-conveyance of tln' property pre-
pared ami have the mort^'a;,'ee sij,rii it if he wishes it, hut it is sutfieieiit,
however, to simply have a diseharrre executeil and rei;istered.
Or he mav rc.juire the mort^'agee to assign the mortjrage debt, and
the
rti,'a„'eil prcipert\ to .■uiv third person the mort'_'ajjor
•271 of Chattel
iy omitting; the
of ( )iiiario for
convey
directs
For a Form of Discharge of Mort;,'age see Section
Mortgap", which is the same in every particular, simply 1
word chattel wherever it occurs ;uid eliani^'iiii; the name
other Provinci'S refpiired.
We ;,'ive here, however, the form of discharp' auth(jrizerl by statute
for Newl'.runswick, which is almost n rh,itim that of Ontario, as follows:
'»h;> Form of Discharge of Mortgage.
To the le ^'istrar of Deeds ipf the ( 'o\uity of Kind's, I,, J.. lip Doe, of the
Parish of Havelock, in the County of KiiiLj's and Province of Niw I'.runs-
wick, farmer, do hereliy certify "that James Roe, of the Parish, County
and Province aforesaid, farmer, and Mary Roe, his wife, have satisfied all
money ihie on or to grow due on a certain mortf^age made by the .said
James Roe and .Mary Roe, his wife, to inc, the s;iiil John Doe, which mortgage
bears date the sixth day of September, A.D. 1897, and was registered in
the Registry OtHce for the Cmmty of King's, aforesaid, on the tenth day of
Septeinber,'A.D. iNft", in Libro No. 5, as number •'>4 on folio '■> : and that I
am entitled by law to receive the money, and that such mortgage is there-
f(ire discharged.
In witness whereof I, tiie said John Do.-. ha\e liereunl-j set my hand
and seal thia fourteenth day of March. AD. lODO.
Witn
Pktkii Junks. \
John D(iK. ^
MOUTGAGES.
95
llii' J)i.sflmr^<' MUHl l«i iU'Ci'iii|iiiiiii'l hy hii alli'la\il nf the iiiortij;u;;et\
See following,' form for New Hruiiswick :
N'fw Hnitiswiek. \ On tin- Utii .lay nf Marcli, AD. 1 ;»()(), h.'f..n" me
Kiiij^M ('i)Uiity, - Peter Kin;,', one of Her Miijesty's . Justices of the I'eace
To wit: ) in anil for the said t'oimty of Kiti;,''s, perso'ially eanie
and appeared the i\ itliin-nanied .Fohn Doe and acknowledged that iie dicl
sign, seal and execute the within release (jr discharge of mortgage for the
TMiri'iPses therein eontaiiied. ,, ,,
J.l'. i7i (t 11(1 far King'x Co.
'fj»0. Transfer of Mortgages Mortgages are unt negotiable by
indorsement, Liu may he transferred hy a.ssigntnt nl The a.ssignnient is
also an instrument umler seal, and muHt be recorded at the .same [)lace the
mortgage is registered.
If a mOi-tgage is a.s.signed the assignee takes it subject to all the
eipiities that bound the original holder. Therefore, if a payment wvrr
made on it before .assignne'nt the assignee coilld not force the mcntgagor
to jiay it again. He emild only look to the a.ssignor. Htit if a jiavnient
were made after it had l)een a.ssigned tlu'ii the !i.ssignei' could make tlie
mortgagor j)ay it o\er again, and the mortgagor would li.ive to look to
the mortgagee for a refund of the money. In tlnse i'es])i-ets it will be
noticed a mortgage dithers entirely from a promi.ssory note transferred
liefcire 111 '• Ulit\ ,
'i9l Form of Assignment.
^IMS llllOCntlirC ni.iile (ill (luiilicati') tlu- lirst .lay of .•seiiteiiilier, ui tlie yi-iir o(
mir 1,'iril niw th<'u>;in'l nine hu!nlretl.
Hktwkkn Jniues \Villi;iiii lirowii. nf the Townsliip nf Anc.-iater, in tlit County i.f
r>i:iiit. I'rovinoe of Ontarii', .stii.li'iit. of tlie tiist p'lrt, luTriiiafter c.-illoil tliu " A.ssiL.'iior, "
and .Jamt.s Wilsmi, uf tho Ciiy o! Hamilton, in the County of WiMit worth, I'lovincf of
< tntario, murchaiit, ht'reiii:ifter called the " .V.ssigiiL'e, " of the second part ;
WiiKUE.Xs, liy ,i Miirt>;age d.ited on the first day of March, one thousand ei;,'ht
hundred ,ind ninety-si\, .lames Uoburt Manuini;, of the Township of .\ncaster. County
of I'.rant, I'rovincr of Ontario, fanner, and wife, did ;jrant and inort,i;age the land ,ind
jirenii.ses therein and hereinafter de.scrihcd to .lames William lirown .ifores.iid. his licirs,
executors, .idininistratora and •i.s.iiL.'ns for sccnrini^ the payment of ( Ine Tliousjind Dol-
lars of lawful money of I 'an.ida. and tluTc is now owiii-; upon the siiid Morti,'aL;e the
sum of ( >nf Thousand ,-11111 Twenty-tivc Dollars :
Now THIS iM.ENriKE WITNESSETH, that in consideration of One Thousand and
Fifteen Dollars of lawful money of Can.ada, now paid by the sjiid .^ssi'^'uee to the .said
.\s3ignor(the receipt whereof islnuehy acknowleil'_'rd). Ti;Es,iid .\ssis,'iior DoTU Hkkehy
AssKiN and set over unto the said A.ssijxnue, his executors, .administrators and a.ssi^ns,
.^LI, that the said before in part recited Mort>;a!,'e. and also the sjiid sum of One
Thousand and Twenty-live Dollars now owing a-s .aforesaid, together with all moneys
that may lieroaftcr become due or owing in respect of siiid Mortgage and the full benefit
of ,ill powers a?id of all eovenant.s and provisos contained in said Mortgige. And also
full jiowtir and authority to use the name or names of the said .Assignor, his heirs,
executors, administrat..rs, or a.ssigns for enforcing the perform.ince of the covenants and
other matters ,ind things contained in the said Mortgage. .Xsn the said Assi^'iior Doth
HEREiiv <ju.\NT AMI CuvK.NA.ST unto the said .Assignee, his heirs and assit;ns, .Ai.L and
SiNori.AK ih.-.l i-ertain parcel or tract of land and premises situate, lying and being in
tho Township of Ancaster, in the County of Brant, Province of Ontario, containing by
m
MiiUTiiAfiE.S.
WlI.l.IAM .loilN lillow-., If
Jamf.h W I IX in. jfk
ailiiieftsiiruiiii-nt < )nr HiimlriMl Acns, lie tin- hmhb hi. hi' cir Ifs.t, Ikih.' i-..iii|ii'»t'(l nf Lot
Nuiiilier Twi'lvn (I:.') Ill ttio KMiiitli (4) CoiRtj'isioii of tliu Tiiwiislii|i ..f AiiriiMtiT
iifiircsiiiil, To H.iVK .\.Mi TO 1101,11 tlic Hiinl Miirt'^nno ami itll iiioiioyM ari.siiii; in r>»|iict of
the siiine mid to accnio thiTuoii, iiiiil iilwi thu sjiiit land and preiiiiws tlieriliy granted
»nu mort nailed To the i se of the saiil AsHi^iiee, his lieirs, e.xecutorn, adiiiiiii.'<ti»tor» aiul
KOiliKTlH, almolutely forever ; but milijuct to the terms contnined in sjiid M..rtnKKf.
AM' Tin; MAin As.siijnob for his heirs, executorK, admiiiistratora and ansisiin doth
hereliv Ciiveimiit with the said Assiijnee, his heirs, exeeiitors, adniiiiiiitrators and asuigns.
That thi' saiil .Mortirane hirehy aasiijned in a (jood and valid security, anil that the said
sum of On.' Thiiusaiid and Tweiity-tivo Dollars is now owiiiu- and iiiipaiil, .\nii that ho
hft« not done or permitted .my act, m.ittiT or thiiii; Hheiuliy tlie H,iid Mortijaue has hceii
released or diKoliarued either partly or in entirety ; Ami that he will upon request tlo,
perform and execute < very act necessary to enforce the full performance of the
covenants and other matters contained therein.
In Withess WiiKiiKoK till sjiid parties hereto have hereunto set tin it hands
:knd seals.
Signed, Sealed and Uelivc rd 1
in the presence of ,■
1> K I'orrKK. J
l!f.i M\KO "ii the day of the date of this Indenture from the said .\s.sii;nee the
sum of One Thousand and Fifteen Pollars.
Witness W . ■' IIiiowN.
Coi'NTV 'jk Wkmuokiii. I I. I)' xter Kdgar potter, of the City of Haiuiltoii, County
'I'n Wit I ui W'lUtworth, Province of (hitario, student, make I'ath and
say ;
1. That I was piTMiiially pns.nt and did see the v.ithin Inslniment :iiiil Dupli-
cate thereof duly signed, -caUci and executnl hy .I.imes William liroHii nm- ..f the
parlies thereto.
2. That the said Instrument and Dii|ilicate were executed at the City of Hamilton.
:i. That 1 know the said p.iiiy.
4. That I am a suliscnliiie.j witnl■s^ to the s;iid Instniment and L>u|ilicate.
Sworn before meat Hamilton, in the"!
County of Wtnlworth, this tirst day of ■ 1), K. roTTHR.
September, in the year of our Lord 1!MH). )
■I. W. Lamdkeaix. i ('•niiini.sxuiw !■ /"!■ t'il:in'i 'irluhir'l' 11 II. CJ.. etc.
'i*yi Assignment by Indorsement on Back of Mortgage
Cbifii l|^^C^tlU■C m.-ide <m duplKatn the tirst .l.iv . f September, in th
our L'lrd lUie thousand nine Imiidieil.
Kktueen William .lohii Brown, of tlf Town of !)umlas within
tirst luiit, and .lames McKay. of the City of Hamilt of the MCiinl part.
WiTNKssKTII, that the party of the tirst part in coiisideraiioii of tlie sum nf .42.-10
to him paid by the second party, the receipt whereof is hereby acknowledu'cd, hath
UMUted, bar;,""iiiied, sold and .assigned, and by these presents doth grant, bariiain, sell
and assii^ii to the party of the second part, his heirs, I'Xeciitors, .idministiators and
assigns all the right, title, interest, claim and demand nhat.soevur of him, the party of
thelirst part, of, in and to the lands ,ind tenements ineutioiicd and described in the
within M'irtt;age. And also to all Mini .■ind sums of money secured and p.-iy.able thereby
and now nniaining unpaid.
To have and to hold the .same, and to ask, demand, sue for and recover tlie s;in:e
as fully to all intents and pur[ioses as he, the party of the tirst part now holds, and is
entitled to the Siime.
• year ■ 'f
iiameil, of the
In witness WHEKEOf, the parties to these present
and seals, the day and year first above written.
Signed. Sealed and Delivered, 1
have hereto set their hands
in the presence of
.IaMES lll.AlK.
William .Ioi;n Bkown, j/t
MnKTfiAiiES.
97
prise 111 \\!iip may
i.M The Personal Covenant, ii ,„UNt ,„,t ;«.- torjrotten that
n.-arly .•very imn-V^nn,' ooiitniiis n I', i-soiml Cov.-iiiiiii l,y tho .lel.tor to pay
th(! civditor tlie Mini iihiikvI in tli.- incirl^'ii;,'.', tn^n-tlirr with ini.n-st etc
The n.urt^rap. is Nimpiy ii ii.-n on tho pr..|.vrtv ,is "■•.uritv Icr thr pavinent
u{ thv stijiuliit.vl Miiu. ■l|„.rrf,.r.s if th- -l.-htur uftor uil i,.;; the- uiurt.'a.'e
sh.MiM selitli,. pp.pt-rty It is not .iiouj^h that th.- purehasfr a.s.snm"the
niort;,M-.', iMviiusr thr imtscikiI ruvcnant still hin.ls th.- .)n.'iu.il .k-btor
Ihc- inort-at;.. shoul.l ,itlk-r K- ,list-har-..|,or ii f,;k-ase un.l.r ",-al ohtaine.i
roni th.- i-r.-.htor or mort^'a;;^.-. In OnUrio, on mortpif;'''^ givL-n sine.)
IMt-t th.- pL-rs,,nal covL-nant .."xpircs with tlie inortLm;:.- in t.-n v.-ars aft.r
'iiaturity
'I'liis lursuiial covenant docs not hold aijainst th.
hiiy th.- property siihjcct to th.- niortjra},a-.
If th.- p.,-i-son huyinjf pruii.-rty sui.ject to an .-xistiti;,' niMit'a<,'e cove-
nants with th.- ,nnrl.j,f,i,.r t.> ]my th.- iii.,rt;,'a<;e, the niort;.'at,'or CHironforce
[.aynu-nt il it is ,lu.— that is (as tli,- law Ixjoks .-xim-ss it) in.l.innifv th.-
nM.rt;;a;,'or a-amst the niort;,"'^," >•. I'-ut tli.- „..<,•^/-„/, , caniDt CMiip.-l him
to pay either princii>al ..r iiit.-r.-st. 11.- can f.jr.-cl.is.-.
In .rs.v;|/„M^,</a m..rtt,'aK,. „s collateral security for an existin.' .JeU
or f.)r money horrow.-.l the p.rs.,nal covenant -_,f th.- .ussitrnor to pav the
del.t shoul.l not h.- put in the assi;.'iiiii,.nt,as the niort;,'i>J,"' ""Iv i-* inten.le.l
to 1)1- the coilat.'ial s, ciirit}-.
'i\U Power of Sale. i:\ .ry inortf;a<.'e contains a clansp similar to
tlu- foll,,win^': rr.ni.1,-,1 iliat the mort;;af,'eeon d.-fault of iiaym.-nt for
IcMir months may, on thr.-,- lu.mths' notice, .-ntt-r on an.l l.-as.- nr s.-ll th.-
Sill. I laii.ls." etc. This clausr .■iiip..w.-rs the m..rt;,'a;,rt-.., after coiiiplyinrj in
all ivsp.-ct^ with th.- terms ..f th.- iDtic, t.. take po,sst>ssi.>n ui an.l s.-lTthe
ni..rlj,'aj,r,.,l lan.ls, Th.- lim.- m.-iiti.iii.-.l in this parajrraph may 1..- eli.ui.',-,]
an.! whatev.-r numl.er .,f m..ntlis may Ki- put in th,- mortpi;,'." will h.ild.
ill ca.se a m.irt'^a;,'!- .Iocs n(jt ont.-iin an .'Xjiress "power. if sale' in
Oiitari'i th.- statutes allow "that after fcair montlis' .lefault in p.-iynu-nt of
principal .lue, or six moiulis' .i.-fmlt in payment .if interest .lue" or after
an .imissi..;) to pay pr.iniums .,n insurance th.-re shall be a " power of
sale and th.- mort<;n<;ee may s.-ll the whole or part of the pr.,pertv eitlier
by public auction or private sal.-.
No sale .shall take plac- until .ift.r two months' notice to tlu-
mort''!iL'or.
•iW.V Form of Notice to Sell :
I hereby r..-.|uir.' you .in or bef.n-e lli.- ,|ay of , 19 (a
day not l.-ss than two (-al.-iidar months from the service of the notice and
not le.ss than six months after the default), to pav ott" the principal money
an.l interest secure.l by a certain indenture dated the day .If
—- , 10—, and expressed to be made between Hiere state the jiarties
andilescribe th.- mortgajrcl property), which said mortt;a;:e was re.vistered
,,n the- .lay of , 19— (an.l if the mortrraj^'e ha,s been
assicTiied. add "and has .since become the property of the un.lerHijrnf.l").
An.l I hereby .rive you ii.itice that tin- ani.mnt .lue .m the said m.jrtgase
98
MDKTii.VUKS.
for iiriiicipiil, intt-n.-st uikI cunIs, n-sin-ctivcly, is a.s follows: (xtnte the
8fi>iiiiite anil Hints).
Anil uiiK'ss the wild |)riiicipiil inont-y, intcii'st und costs lu-r ]iiii<l on i r
before the siiM 'lay of 1 shall sell the proi-iTty coui-
jn-iseil in the said indenture, under the authority of the Act entitled, "An
Aet respecting Mortgajjes on Heal K.state. "
I i;iieil the day of , 19 — .
(Sitnied) .
This notice may \>r registered in the Registry Otlice of the county or
district in which the lands are situate, and serv.- as i.ri«of of conipliance
with the Act. The two months' notice may run coneurn'iitly with the
time of ilefault lus it may !»• gi\en any time afti-r default.
When such demand for ])ayment lia.s Im>.ii mad«' and notice ol sale
given no other proceedings can U; taken until the time e.xpires, unless an
Mriier from a County or High (.'(jurt is ohtaine.l.
The mortgagor may pay the debt within the time mentioned in the
notice and prevent a .sale, and if any di.spute arises as to the amount "t
costs the hill will he "taxed" hy the Clerk of the County Court ni the
LiK-al Master.
In easi' nf sale tiie lUMrtg.iLror is re.niired to ih-liver over .all tith- deeds
and docaments in his possession atleeting the land.
.Money deriveil froi i the sale ::oes lirst to cover costs of sale, then the
oney (lenveii
next tile pnncip.il, aui
reiimiuder (il anv) goes
to th'
to a third
notice, " hut where no
interest and
mortgagor
The laipK may he s,,M either hy puhlic or private sale, and either lor
cash or erei lit, and the mortgagee or a.ssigns may buy in and resell the
sai<l iands, or any part thereof, either hy private sale or puhlic auction,
without being responsible for any loss or deficiency for. <jr on account
(jf such estate ; and that no purchaser under such jiower of .sale shall be
bound to in.|uire into the legality or regularity of any :.ale under the said
power, or to see to the application of the purchase money.
Wlure the mortgagei' becomes the purchasiT hv is rei|uircd to give
the mortgagor a release oi the mortgage debt, but not if sol
party.
A mortgage might jirovide for a sale " without
time is tixed it must be two months. It is questionable it the courts
would uphold a sale "without notice" as it is contrary to enuity and
would destroy the eipiity of redemption. It should not be in a mortgage.
"itMJ Interefit on Mortgages is implied, unle's expressly stipulated
to the contrary. Mortgages on real estate may draw any interest that
the mortgagor covenants to pay, but in Canada if the rate is not named it
will Im; five percent.. Newfoundland six. If the interest is not jiaid when
due the mortgagee usually has power either to take posses,sion, or foreclose
and sell. In Ontario he may sue for the arrears of interest in the
Division Court if the amount is within its jurisdiction, but b.e cannot
em]>loy the judurment summons process to enforce payment. The different
instalments of interest or prineijial may be sued for separately so as to
brinfT them within the jurisdiction of the Division Court. Or if there are
MllUriiAUKr
99
K.HJ.1S un.i chntt.'ls „f th.- ii.oi l^a^or »t: the premmes \u- iimy .listrain for
th.- ,iir.Hrs ,,l iMt.-reMt. Tlu- iiiortjfajfi.,.. caniu.t -s.-i/.. or n,.|| tl„. ."hMs or
crupH ot ,1 tfiuu.t on tLr prop.rty for rith-r ovenlu.* iiiton-Ht or princit.al
.N.-ltl..T can h.. s,.u- or nrU the ^j.kmIs .ili.i cliattels of ...e inort^'a-'or tlmt
ar.' .x.inpt, ],y st.itutt- from Ht-izuro under an ox.-cutioii .)r iHii-llonl's
warrHut.
Thf inorit;a-,es right to di-<train for interest i^ limite.l to one years
urreiirNot it.tei-eHt as u;;.iinst exeeiition cr.Nlitors or an lussi-niee for the
Kenenil bi-neKtot cn-iitors. (J.«„|s .jistralne.l for intcnvst sl.all not l.e
Hol.l exc.pt utf.i- ^u.li i.iil.li,. notice as i.s re,|uin-.l „n.lrr a l,in.lIor.l's
waiTant.
If a mort'
listless, still if the niort^;a;;or ever warited to
III that cii.se be conipelled to pay tlie arrears
.-'"^''■ ''"'■•^ ""'t foiitain the i>erHonal covenant to iiav the .h-ht
then interi'st in arrears eould not be rc-cov.-re.l after six vears Hut'
althoni,'h tiM. niort-a-eeronid n<,t in this ea.se recover more than six ve— '
arrears III interest by suit
reijeem lie- Jiropertv he w
of interest.
If a inort;raKe is not paid ;,t inatmitv th.. inurtt:a<ree i.s entitled to six
months notice ami interest for that time m .•.,M,tiori f,, tli,. ,,ri-iinl s„m
and costs (if any) in onler to re.le,.ii'
In easeaeticin has l)eeii entered for |)aynii'nt, or a dei
iie'iil niadc', or notice of sale ;;iv.Ti, the six n'ldnths' furtl
ehur;,'cHl.|.. if the iii,,i-tj,'a;;. t ivdernis .ut th.it tilii
iiiaiid tiir pay-
lier interest is not
come iliii
'iif) Prepayment of Mortgages If a mori-a;re has not yet be
peakiii
I to accept
le iiKirt^'ai^fee
xeeptioiis, as the
>iec. 7, R..S.C ]irovisioii is made,
. Ml'- mort>,M^'ee cjiniiiit lieeoiiipi
p.iyment, unless there is a clause in tlie mortj,'a;,'e bin, lint: th.
to accept jiayment sooner. There are, howev.^i" soim
tiiliowiiii^ :
1, l')y a Dominion statute, chap. 27, Sec. 7, R..S.C
which applies to all the provinces, for th.- pavmunt of mo"rtf,'u.res aft.-r th.'-y
hav.- run tive y.'ars, no matter for what l.-ngth of tim.. tlu'v^w.-ie .Irawi.
As the clause is very concise it is here .piote.! in full :
"Whenever any principal money or int.-rest sieiir.-.l bv mort.'a're of
r.-al estate is not in the terms of the niortj,'a;,',- payabl,- till a time niore
than hvo years aft.-r th,- .late of the mort-a-e, ih.n any person liable to
p.'iy or entitle.l to rede.-m th.- m..rtj,M^r,., ,nav, after the .-xpiration .>f Hve
.w.-ars, tender M the person entitl.-.l t.) r.-c-ive the moiu-y the am..unt due
or i.rincipal ami interest, to-.-tluT with thre,. months' further interest in
iieu ot m)tic.', no further inten^st shall b.- charjjeable, or payable or
recoverable at any time ther.aft.-r on principal monev or interest -lue
un.ler the mort;,'a--. The mort;,'aj,ree, of course, canno't be compell.-d to
r.-ceive the m,.n..y until it is due, but if the ten.le ■ of th.- mom-y is mad.-
r,s above no further mt.'rest can bo coUect.'.l.
2. If, for d.fault in payment for either princij.al ..r iut.-r.st or for any
otiier supp.3se<l breach of eov.-nant, th,- mort;;a-.'i- .-titers a(-ti.,n to n-c.)
payment, or .lenmnds payment, then the mort<;a;,'e mav b.- paid in full
.)ver
j'>n
J»M. Mortgagee Taking Possession. A moifM.'ee mav take
pos,sessiun ot the property at any time after the mort.^Mj,'e falls due, or if
100
MOUT'iAr.ES.
interest is past ihic. ;ni'! iimy t-oll.'ct tin- rents ami •■ipiily tle-m (ni tlie
iiioitpi;;i'.
The murtj^iippr Ciinimt cDiniiel Inni tn lureclo.se nor sell, l)iit lie can
compel liini tu jjive an acenuiil of the rents ami his ilealini,'s with the
properly. If lie is ready t" i^ay the princiiial ami interest he may liiin;,'
an action tn reilreni slioiiM the mortgagee l>e unwiUinn to reeei\e the
money.
Alsii. it' the mortgagor --hoiiM ahamlon possession of tlie property it
gives the mortgagee the right tn take possession. Imt he must keep, an
account of all rents ami income ileriveij i'mm it. ami aecmuit to the
mortgagor or iiis assigns for the same or snhse(|Ueiit mortgage. 's.
A mortgagee wlio simply takes possession of the pr(jperty without
foreclosure, or a sale, is not the ahsolnte owner of the jiroperty, in reality
only a " tru.stee, " as the mortgagor in that event still retains his ei|uity of
redemption, and m.iy hold the mortgagee liahle for all damages that m.'.y
be done to the property. The mortgagor niaj', any time within twenty years,
redeem the properly liy procuring an order from the court, that is, enter an
action to recover possession of the property (see Sec. 258;, and in that ca.se
the mia-tgagee would he comiMlled to aco it for all his dealings in connec-
tion with the property and make good any waste, such as needlessly cutting
down the standing timher, destroying or removing from the jiroperty any
of the huihlings, nr for luiildings that may have been hurm'd down (if in-
sured), and the insurance money not been u.seil to replaci' the buildings, etc.
In a matter of much importanee, if the m<irtgr.gee is committ ng
waste or materially reducing; the \.ilue of the property, an injunction could
be obtaine<l restraining him. hut unless the mortgagor were sure he would
be able to redeem the property it would only be money wa.sted to do so.
It Wdiiid help subseipiently. however, to .secure a venlict for damages if
the iiiortgaLTor would at the' time tie- waste was being ddiie, or eniiti ,11-
plated to be done, serve the mortgagei' witli a written jirotest, duly
witne.ssed, against the act. ami notify him at the same time that he wmil 1
be liehl for damages.
To become the abMiliite owner of th.e property willi..ut the expense
of foreclosure or a sale, the mortgagee must obtain from the mortgagor a
release of bis eipiity of redemption, either by purchase or otherwise, or let
it rest until it is barred by statute.
When a mortgagee takes posse.ssion and edicts a tenant cl' the
mortgagor who is willing to remain in possession and p.iy rent, the
mortgagee is lialile for the rent dtU'ing the wlinh- jieriod of s.iiil tenancy.
Where n mortgagee takes possession and ri'in.iiii'- in actual possession
of tile premises, using them in place of a tenant, he is chargeable for the
same rent that a tenant would reasonably be expected to pay for them.
This is called "occupatifm rent." The Statute of bimitations does not
apply in case of " occupation rent,' ami tla; mortgagee would get no title
simply bv possession, but he is rather in the position of a " trustee.' Such
rent would 'le applied by the courts tirst, to the jiayment of interest, and
the remainder to the mortgage principal. Hut when in case the tenant of
a mortgagor is ordered by the mortgagee to pay rent to him, antl lu-
promises to <Io so but does not, in that event it would not be held that the
mortgagee is in possession, and he would not be held liable for such rent.
MOUTfiAriES.
101
But tht! inorti,'!ii.'fc is liable fur rctits whi.'li, l)nt for wilful lui^'lcct,
ini;;lit hav.' hot-ti ri'c.MVfcl, aii.l imtiiriilly wi.uld liaM/ het-ti rt-Cfivtil if
[i|-'>[]rrty had ln't'ii left ill liaiids of the iiiurt;,'ii;,n)r.
A iiiort;,'aj,'ee takiiijr possosHion underau ■if.'reeineiit with tht iiicirt;;ai;<)r
at a certaiii rt'iital does not liiiid subseijueiit iiiurtj,Mt,'e(>s who did not
assent. They can claim a fair r(-ntal to he char<,a'd so as the faster to ]<:{y
otl' the first iiiort;,'a;,'e.
't'.iU- Provision for Foreclosure. I'he object of foreclosure is to
take away the ninrt_jaj;(jrs e.|iiity of n deiii]ition, and also to bar claims of
subseijucnt morti;ai,'ees without a sal( of property. Foreclosure of mort-
^'aj;e is nieridy tilin^^ a bill of forecl isure ai^ainst the mort;,'ai,'or calliii;.'
upon liiin to redeem bis estate fo vthwith, with payment of princii)al,
interest and costs, and if he fail to lo .so within the time specified 1]\- the
court (usuallysix montnslhe is for,-ver barred of hiseijuityof red^mptiuii.
I'nless the niort;ja;,'e specifically provides otherwise the niortga^^ee
may upon default in payment of either principal <jr interest accordinir to
the term.s of the mortj,'a;,'e, or for the len;,'th of time mentioned in the
statute commence a suit for lo.'eclosure.
And if the morti;a<;or desire.s to prevent the foreclosure be may, any
time before jud;,'mi'nt, pay the amount of mortj,'a;;e, interest and e\]]ense
incurred to date, or if the mortija^or or any subsiM|Uent morti^ai'ee
desires to force a sale t>f the pro[)erty instead of a foreclosure he mav ilo
so by rilin;,,' in the otiice from which the writ of foreclosure was issued, a
memorandum statinj; as follows:
"I desire a sale df the property instead of foreclosure.' at the .same
time statintr the true reascjn, as for instance, " that the property is valuable
and would sell for more than the uiortjja;,'e debt." In ( )ntario"he would be
rei|uired to deposit j?.SO in the court to which he applied f(jr tlie sale to
cover the expenses of a sale, unless the .juiJe-e would not re(|uire it, or
woulil order otherwise.
The law of foreclosure is that a morti;a;_'ee has a rii,'ht to redeem the
property from those in priority to liim : and to fonclo-e ae;'unst all those
.subsei|uent to him uiiless redeemed by them.
But if the mnrt;;a^'ee can secure by purchase or otherwise from the
inorti;a;ror his equity of ri'demption, or purchase the .same under a Judj,'-
nient, a liecree or execution, lie becomes the absolute owner of the propiTty
without the expense of foreelo.sure. The mortfjaj^ee thus obtaining,' the
ei|uity of redemption does not jjive subseijUent iuort(;a<;ees any claim
fti^ainst him, neitlier can they foreclo.se or sell tlie property witliout payiiit^
this first uiortrrage claim in full.
This first mortj^aijee securing; un.rt^'ajjor's eciuity of reilemption .and
enterin;^ into ])ossession is not liable to subsei|Uent morte;a;;ees for anv
rents or profits he may obtain, even thinij^'h they may amo\uit to more
than his claim, liecause he is rej^arded as absolute owner.
A morti;ai,'ee j^'ettinj; a release of the e([uity of redemption from the
mort^'ai^'or does not atl'ect the jiriority of mortfjaj^es under the Re^jistry Act.
Where a debt is secured by a m(jrt},'a;;eon real estate, anil by covenant
and by bond, and a note jjiven by third parties as collateral, the niortijagee
may persue all his remedies at tlie same time, anil if he obtainerl payiiient
102
M(iI!:(;a(;es.
cithtT IVdiii till- ii'iti- 1)1- cn\ . nunt <ir lion.i the foreclosure woulil he
preveiiteil
:{<M). Period for Redemption Winn an onh-r for lorrelo-ure has
been olitaiiieil tht; iiiort;;a;;or and stil>.st'«|Ui'iit inorti,'a;,'i'e.s liave six UKjntlis
in whieli to reiieeiii liefore final foreclosure. Where tliere are srveral
inort^'a^'ees or encumbrancers who have jiroved theii claims in defence at
the suit for f(jreclosure. tin- court will usually j;rant from oni' to three
months additional time in which for them to redeenj. according,' to their
respfctivc priorities. The court may also for sutiicieiit cause alluw a
shorter period tinu six months if it is deemed neces>arv.
'Mtl- Foreclosure and Redemption. After foreclosure, if the
morti:aj:ee sliouM sue on the covei'.ant for an allej;ed balanci' <iue, it ^^ives
the morti,'agor the ri^dit of redemption in ca.se he pays the liala>ice of debt.
In such case tlie mortf.;ai^ee nuist have the morti;aj,'ed estate still in his
possession so as to \x in a position to be redeemed. 'I'herefore, upon the
commencement of tlie action on the covenant the mort(;a<,'or should tile a
bill for redemption, and upon payment of tlie debt he will bi- entitleii to
the estate and wliatt.'Vt-r securities the morti,'a<;ee held lielonj^inj,' to th.-
rnortpagor.
The mort;,'ai,'ee may l)e put to his tlection. If, after the final order
for foreclosure the mort;;a;,'or is jn-opared to pay ort' the mortj,'a;.je deijt,
and notifies the mort;;a;.'ee to that effect, and the niortfjaf^ee consents to
receive the money, the ri;^ht of redemption is restored But if lie refuses
to receive such jiayiiient and should subsecpiently attempt to sue on tlie
covenant he would lie restrained by a court of e(]uity.
It is possible to liave a final order of foreclosure set aside, but there
must be substantial ;,'rouiids for it.
'.M'i Unsatisfied Mortgages. If a mort^m^je for a eertnin amount
covers certain projierties of a debtor which, ujion lieinj; sold, do not pay
the whole claim of principal, interest and expenses, and tlie debtor has
other property, the mort{,'aj;ee can come on that other property tuitil his
full claim has been sati.stied. To do so lie would sue on the covenants and
thus secnrinjj jud;,'ment aejainst the deVitor personally, issue an execution
which would bitnl ail the property of the mortgatror.
Of course the mortija^'ee couhi not touch the ^'oods or crojis of a
tenant, nor even the personal property of the ini>rt:,'a;,'or f.rriii/il from
seizure, under an execution or !an<lloril's warrant.
If the niort;j;a<;»'e b<'eame the purchaser of the morti,'a;;ed land when
sold lie is roijuired in that case to i^ive the inortj.fa^'or a release of th ;
mortija<,'e debt. Hut if sold to a third party and a balance remained
unpaid he wouM still have a further claim, a.s al)ove stateil.
IWli Outlawing of Mortgages. Mortiratres on real I'state outlaw
in Ontario and .Manitoba in ten years after maturity or last payment (jf
either principal or interest, unless re-ackno\vled;,'e'l in writing; l^ritish
Columbia, Nova Scotia, Prince Edward Island, and New Brun.swick,
twenty years; North- West Territories and Eii},'land, twelve j-ears ; New-
foundland, twenty years: (Quebec thirty years, providing the mortgage is
duly rei'istered.
PKiil'EUTV.
108
fHAPTHR XIV.
IMtOrKRTY.
;MM Definition. 'l'\u- \r<^a\ .Ictinitii.n nf prnjuTty is "The ri<;ht ami
interest whicli a iiiiiti has in laii'ls aii'i ehattfls to the exclusion of others."
A niaTi jinrciiuscs so many acres of land and thus aci|uires tlie jiossession
and exclusive ri_ !it to its use. He drains it. plants it with fruit trees^
erects l>uililini,'s ujxjn it, ami tlius increases its value. The soil itself is
not his, hut he has aci[uireil tin' rifjht to its pos.session and use — a right
that exclu'les all others from its use.
In the common language of the pefiple projierty mtans the thing
itself. Thus, a man buys a hay horse; he calls it his property, but in
legal language it would be his " property in the bay horse," That is, the
right and title t(j its possession.
30.%. Division of Property I'roiMrty is divided into Personal and
lieal, usually called Real Kstate In <.^>uelx>c they are styled Movables and
Immovables.
1. Personal property includes all classes of proj)erty except lauds and
liuildings. It consists of such things jus are movable from place to place
with the owner, as money, mortgages, carriages, machinery, farm imple-
ments, live .stock, book accounts, animal crops, nursery stock, good-will
and lease of property for a term of years.
2. Real property includes lands, liuildings, trees grow ing upon the
r.oil, and eviTy natural .source of wealth such a.s coal, gas, oil and minerals
that may be buried in the soil.
Temporary buildings, not placed ujion stone foundations nor nailed
to the permanent buildings, trees and shrubs plante<l to Iw removed again,
as nursery stock, do not become a part of the realty, but are personal
property of the tenant.
Also, temporarj' .structures inside of the building, as counteni, shelv-
iiii,', etc.. attaelu'd by means of screws so they can be removed without
injury to the property, do not become a part of tlie freehold, but are per-
sonal property of the tenant.
;MK5. Owner's Authority. As the owner has a right to the use and
possession of the projierty to the exclusion of all others, he may expel,
even by force if necessary, any other person from his premises. He can
sell or deed it away, or give it to his heirs, pull down his buildings or
otherwise destroy them, .so long as he does not interfere with tln' rights
of others.
If, however, a right of way has been .sold to anothiT nerson, as a lane
or pas.sage of ingress or egress to his property. In- caiuiot buikl upon or
otherwise obstruct or close up such psvs.sage over his l.uids,
307. Rights Over Others' Property. If he has property removed
from the street (ir road, and pays another property liolder between him
and such street or road a certain .sum for a right of way aa a lane, to
reach his property, he acquires a perpetual right, which also passe.s to his
succe8.sors, unless otlierwise specified in the contract.
104
I'nnl'KUTV.
But the provision that formerly protecteil the owner of a buiMinir
from having his win'lows (hirkeneil nr n pleasant view cut oti by the erec-
tion of a hij^h fence or a buililin<,' by his neij^hbor is now virtually
abolisiied by the Statute of I.iinilatioiis.
IWH Joint Ownership is where two or more persons own a piece of
propi'ity jointly. All iia\e a rif;ht to it at the same time.
This class ol i)wnerslii]> occurs where a syndicate of persons combine
to jiurclia.se and lioM f,ir --peculative or other ])urposes a portion of liind
or other pro]>erty Al^o when a [leison die. without awill, hi-- lu'lis li;ive
a joint interest
Joint walls built by two jiarties on tli.> di\idinj; line between two
properties would be an illustration of joint properl}'. Neither one could
take it down without the consent of tlie other, but neither one can uo on
the 1,'round of the other to refiair it without permission.
;{0J». Life Ownership is where a person has the use of jiroperty
duriii;,' his u.U\iral life. It may be aC(|uire.] by f^ift or will. He cannot
sell 111- mortj,'ai,'e such [jroperty. He cannot decrease its value by reiiiovin;j
buildin;,'s, etc., or make an\- dis,iosition of it at his death.
He may use and enjoy it for himself, or riMit it to others and enj<.)y
the procei/ds, or he could sell or niortj^aLTe the use of it durin;,'his life t;;ne.
C510. Ownership by Possession. In all the Provinces a " s(|uatter,"
or any jierson (e.xcept where property is held in trust who has ]ieaceable,
uninterrupted possession of land, Ireatiti;,' it as his own, payin;^ ta.xes and
not in any way acknowledirinj^ the riyht of any other j)erson for a definite
number of years, obtains a <;ood title to the same and can subseipiently
transfer it and j^dve a clear title. (For len<,'th of time see Section 262.)
Peaceable po,s,se,ssion does not mean that there has not been any
disp>ite about the ownership, but rather that no action has been taken to
disp<jssess the intruder,
.til Dower is a lif.' estate a wife has by law, in tlie lands aci|uired
or held by ler husband duriiii^ coverture in which she has not barred her
ri^ht to liower It is of course not available until after the husband's
death. If n\arriae;e has l)een le^'ally dissolved the ri;;lit of dower ceases.
A wifi' is also entitled to dower in the equitable estates of the hus-
band to which he was beneticially entitled and had not parted with in his
life time. A le<,'acy in land due but not yet taken posse.ssion of. is subject
to dower. Alst) where there is a will which ;,'ives the wife all the
property, or all the residui-. a legacy dur but not yet paid would be hers.
A wife need not be tw.nty-one ye.irs ol.i to bar her dower. If a wife
si^n a deed it bars her dower, but a wife iMirrini; her dower in a mort^^age
oidy etiects her to the extent of the ri^dits of tb ■ mortgagee, and dower is
due on all the surplus after payment of mortgage.
In Ontario her dower is ont'-third (jf the real estate. The husband
cannot deprive her of the right during his life time by selling or mort-
gaging the property unless she bars her dowiT by signing the deed or
mortgage. If the husbaml dies posses.sed of real estate and makes a will
I'HOI'EUTV.
103
she can eith.r takf tlu' portion l.ft to li.r in tlic will in liou of ilowtT or
she Clin retusi- to take under the will un^i cbiini her duwrr.
In Manitotia an-l North-WcMt Territories the wifr has no iluwrr in
thr lands of lier .Icceaseil lili>hanil, Imt the Statute of Devolution of
Estate 1,'ivcs her the same interest in the lamls as in the personal property
of the husband dyin;^ intestate. See Sec. .'inTi
In (.^uehee wife has one-half the husband's iiiuiiovalih's. In Nova
Scotia, New Brunswick ami 1'. H. Island tlie wife lias th.- CMiiunou law
rij,'ht of dower of one-third of husb.ind's real estate.
In British Columbia, Newfoundland and i.n<;lfind wife has one-tlii'd
interest as dower, providing; husband dies lej,'ally entitled t > ' iids -ith-
out having' absolutely ilisposed ^f them liy deed or will
:jl*J. Sale of Personal Property. In the sale of personal jiroprrty,
as in ail oilier contracts, the partiis themselves must i)e competent to con-
tract. The seller must have a valid title to the property sold ; the pro-
perty nnist be something; le^^al to ],<■ handled, and the sale must be with-
out "fraud, or coneealmrnt of facts which ou^dit to be known and which
the otlur party cannot ri asonably discover for liimself.
The price is either paiil in money or jjromised to be so jiaid, tor if it
Were paid in jrooils or .service it would be a barter and not a sale.
Selling personal property, which is still retained in pos,session, is
bindinj; a.s between the parties themselves, but is not binding again.st
creditors or subsei[Uent purchasi'rs, uidess a Bill of Sale is recorded.
Wheti the sale is i_ ijjletrd the property in the article passes to the
purchas.'r, whether thr article is (ielivereil or not. and thr risk also passes
at the .same time.
Hut the statutes of each Province (.xcept Quebec) and of Newfound-
land definitely state that every sale of goods and chatttds not accompanied
by an uumeiiiate delivery foliowed by an actual and continued change of
possession of the goods .uid chattels sold shall bf in writing by way of
chattel mortgag<» or bill of sale, which, to be binding agaii t third partii-s,
must be registered.
The Mortgage or Rill of Sale executed and recorded is the notice to th.-
public, and where thi is not done pei-sonal property- honestly purchased
would be liable to seizure under execution, or would be retained by a
sub,se<|uent puieha.ser for value wlio liad no knowledge of the previous
sale. fSee following section.
:ti:t Barter is where ')ne artich' is given in exchange for another
or for service, and if there is no warnuit}- given as to the .soundness or
quality the property in each passes with the delivery of the article and the
exchange is complete, no matter how poor a Viargain one or the other may
liave made. Neither party can forceahly or otherwi.se take the article
back he b'-.rtereii awaj*. except by consent of the other, without l)ecoming
liable to an action for theft and also for damages. The article itself, if
found, could be recovered back from him
106
I'ltnl'i.UTV.
.•{14 The Property Sold Must Exist. .T(,ii,s soils Smitli a <<-rtiiu\
Imrs,- at airrtaii] vrirr. I.iit afirr thr -.ale is coik'IuiIimI it is iliscovcivij tlmt
till- lioPNC is (icaii. Koth parties liavinjr 1h.,.„ ifrnoraiit nf the fact. Their is
nil sale, even tli(m;;h tlie iiioiiey had hiiii paid.
F.tit if the h.ii-se wtTt' actually km>,'ht and, say jf2() paid, the lialaiice
ti) he paiil at a sul.se(|uent date, and the a;;reeinent"was that tJie Imrse was
to remain on the preinise.s a few we, ks, lint hefore h.'ini,' removed .r
lalance paid he dies, the los,s would he that if the p.ireha.seraiifl he wotild
still have to pay the halance of |mrchase price.
:nr» Property may have a Potential Existence. The natural
products of the .soil, the increase of live stock or other property nniy he
sold in advance. For instance : A farmer may sell his apple, peach or
pear crop before the hmlK even liegin to show ." (ir the w<iol clipped from
his sheep the following' sprin;;, etc. They are not ret in existence, hut
they are possible ; lience they may be sold'
:{l« When a Verbal Agreement Binds. In al! the Provinces the
sale 111 jiers.inal property by verbal or oral a;,'reene'it is biiKlinp u\> to a
certain sum, but beyond that amount it does not bind either'"seller or
buyer, no matter how many witnesses there mifrht be to the barj,'aiii
In Ontario, New I'.ninswick and Nova Scotia anythiiii,' ("(.//•/• ^40
will bind . but if the amount i.s ?<40, or more, it is utterlv worthles.s.
In Manitoba. North-West Territories, Briti.sh Columbia and (Juebec
anythin;,' under ?.50 binds.
In I'rince Edward Island .«30, Newfoundland and Knj^hind js.'iO.
In each of the Provinces if the amount is not iir,,l,r the ti^rures here
named then, in order to l)e bindinl,^ the cmitract must either be bi writin;:.
or a part nr the whole of the ;.w)ds d.'livered, <ir a jiart jiayment made.
I^ut uji to the amounts here named for the respeetiv(,' Provinces a
barpun made " by word of mouth " is every whit as bindin-' as thouidi it
were in writinj:. " '^
Retail merchants and other traders j,'ivin{,' verbal orders to commercial
tray, Hers or others for a smaller sum than these respectively for the
ditterent Provinces named abovr; cannot cancid their order, except bv
permission of the whole.sale house or nianufacturinj; firm, ami if the jrotxi's
are not received when shipped in lU'cordance with th,' ,inler the shippers
have an action for daniafres, which wouM naturallv be th,' price ,if the
f,'00,ls. But if the amount is ,,ver the sums name,! lier,> bir each Province
the order may be caiicel!e,l any time before tlie gooil.s liave been actually
shippe,!. •'
itn Breach of Contract of Sale. If either party should violate
such a ciutraet ,,t' j.uiehase or sal.', he wouM incur a' penalty to the
amount <if damajres the ,,th,T party c.,..'d prov,' he had suffered by the
breach of contract, which amount wouM naturally be the price oi the
article. Illustration ; .\ e.-ittle buyer a;:rees to purchase ten head of
cattle froni a stock raiser an.l pays ?20 to bin,! the bai'train, and is to tak,'
th, III within ten days. After he goes away, he sees the market «inotati,)ns
I'lKH'KUTY.
107
show a <;rpiU (lepnssKjii in fiirpi^jn prices aii.l h<- coiicludcs not to carry
out luK contract, lie cannot recover Lis #20, Ijiit tl;/ stock raiser can sue
him tor tile halanjc of the purchase money.
It must Ijc romeniliereil that usually only such >iama;,'.s can he
recovered as actually <^;cur. Wlien an artfcle or i^oods have been bought
f()r the purpose of iv.sale, ami if at the time of the purcha.se tin- existence
of a Hul.-contract for the ;,'(jo(ls is made known to the seller and the .seller
then makes default in drliverin;; the profierty the [uircha.ser may
either {ir chase the article from .some other per.s<.)n lo fulfil the suli-
contract and char;,'e the sell, r with the advance price he may he compelled
to pay, or he may repudiate the sub-contract and recover dani(>t;es from
tile seller anil for whatev dama^'es he may be; charge<l with for lireach
of the sub-contract
If a purcha.ser is misled by the .seller as to the quantity of ^'oods he
is purehasin^', or part of the ;;oods he supposed he was [lurchasini; prove
to Ik'Ioui,' to other parties, he may . ither claim a reduction in the price or
refus.- to carry out tl.;' coi'trr.cL of purchase and recover hack any money
that may have already b<en paid.
lilH. When a Sale is Completed. In .sales that have l)een com-
pleted there is usually a delivery of tie- property and a continued chan;:e
of po,s.session, hut not n.-ce.ssarily s(j. ( JoimIs yet in chartje of a railway or 7n
a warehouse ni ly be delivered "by simjily liamlinj; over the bill of 1,'iding
or warehouse receipt. This is called a ' con. tructive delivery."
W hen the contract for tlie .sale of specific articles or <rooc's i . com-
pleted the rifjlit > the property is immeciiately veste<l in^the biiver as
also the risk, and the right to the price in the .seder, unhss the contract
.specially provid-^s oth.erwise.
If the buyer assumes the risk of the delivery or leaves the goods in
possession of the seller and they are ilestroye.i before delivery, ir will be
the loss of the buyer; Inn if the seller assiniies the risk of delivery then
the loss will be his The courts have ruled "that where a In/,, I hiri/iflii
IS made for the purcluuse of g(X)ds and nothing is said alx)Ut "paj-ment or
delivery thi> ownership nevertheless pa.sses immediately so as io ca.st upon
the purchaser all future risk," and the parti<'s are in the same position as
tliey wonhi be after a delivery of the goods. If this fact is borne in
mind it will remove all (hiubt ui numerous ca.ses of injury, or death of
liv.' stock, etc., between time tA' purchase and removal of the goods or
chattels. (.See following .section.)
'.it9. Bill of Sale. If the gotxls are not delivered at time of sale
but still left in the p<.is.se.ssion of the former owner, a liill of Sale mast be
tiled in the otKce where Chattel Mortgages for that district are tiled, in
order to make such a sale binding against judgment creditors, and subse-
quent purchasers and mortgagees for value. It will be noticed here that
a Bill of Sale differs from a Chatt<.>! Mortgage in that it is an absolute sale
of the goods, and not merely a lien on them a.s security for payment of a
debt, hence only one party signs it. (See form in following section.)
108
PROPEHTV.
:fU* Form of Bill of Sale
ZEbiS lln?CnIUrC m.-ulu tli.' f.mrth .Iny of April in the ywir of -lur Lord one
tl, .ii-;iiiil n;n. liuMUn.l, li.-twi-fii JiiiiifS Smith, of thi'Town i.f WflUnd. in tlio ( .Mnity
of \\ i.lliiiid, iinil I'ri'vmci' of diitjino, iiifrchimt, v.-nilor i.f the tirat piirt. and WiiltiT
WiiitLTM, i)f thi' City of Toronto, Comity of York, imd I'roviucf < ■ < hitHrio, m'ntluiiiun,
thr vciiiU'i' ..f thii Hi'fcind piirt.
Whkk] 4- the siiid juirty "f thi- tir«l piirt i« |ioN.sfssiMl of thi> stock nf dry [• 1-^ :ind
^jroierii.'- .iiiil ^-turo hiiiI ntlii'i' tixturi'S hfrfiTi:iftfr Mi-t forth., di'smlii'd .iiid iMiiniicr;it.'il,
iind hiith I'oiitract.-d .■iiid agreed with the said |uirty of thi' sn'ond part f..r thr ahsohite
Side to hiiii of the saiiu-, for the Hiiiii of nix hiiiidri'<l dollars.
NoH Tills Inhkntikk WlT.VKssKTH. that III pursiianci' of the s«ui ayreeiiu'iil. and
in I'oiisidiTHtion of the siim nf six hundriMi dollars of lawful money of Cinada. paid Ipy
tile said party of the second part, at or before the sealiiii; and itehvery "f tliisr I'ri'seiits
(the rei-eipt whereof is hereliy ackiiowledu'ed), he, the -luA party of ilu- first p;ir', hath
li.arnained, sold, a.- it;iied, transferred, .imi set over and l>y tluse I'resents doth liirtraiii,
sell, a.ssi>;n, transfer and set over, uiilo the said party of the secoiiil (uirt, his < xecutors,
adniiiiistrators and a.sKiyii», ,\LI. thosk the siiid dry ^ooils .iiiil groceries and store and
othce tixtures, as per inventory hereunto attnched and marked " .A "
.\Nli ikll the ri^ht, title, interest, property, claim and demand whatsoever, lioth at
law anil eiplity, or otherwise howsoever, of him the said parly of the lirst part, of, in, to
and nut of the same and every part thereof
To iuvE AMI TO iioi.n the said luTeinln-fore .assi','iied dry ','oim1s. groceries and
Ntoro and oHice lixtiires and every of tliiiii and every part thereof, with the appurlin-
ances, and all the riijht, title ami interest of the said ]iarty of the first [lart thereto and
therein, as aforesaid, unto and to tlio use of the .said party of the secoinl (.art. his
executors, .idministiators and assii^ns, to and for his sole and only use forever.
.\nd tlie said party of the first jiart doth hereby for himself, his heirs, executors,
and administrators, covenant, ppmiise ,and ajjree with the said party of the second part,
his executors and ailministrators, in the manner following, that is to say : " That he, the
.sjiid party of the lirst part, is n..w rightfully and alwolutcly possessed of ^iid entitled t'l
tile said hereby assii;neil ilry u'ooiis, i;riMerios and store and oltice lixtures, :ind every part
thereof ; anu that the said party of the hrst jiart, now hath in himself yoo.l rii;ht toassiijn
the same uiilo the sjiid party of the second p.irt. his executors, ailmiiiistrators and
a.ssi'4iis. 111 manner aforesaid, and .accordiii'., to tile tiiu' iiiteii' ami iiieaiiiiii; of these I'res-
eiits ; and that the s.iid i>arty hereto of the secoiiil p.irt, hisexeciitors. adniiiiistrators and
as.sii.'ns. shall and iii.ay from time to time, and at al' t'liics hereafter, peaceably and
quietly have, h.ild, pos.sess, and enjoy the .said hereby assic;ned .^.iiKts and fixtures and
every of them, and every part thereof, to and for his own use and ben"tit, without any
manner of hindrance, interruption, molestation, claim or demand wh.itsoever of, from
or by him the : aid party nf tlie lirst jiart, or any person or iiersoiis whomsoever, ami
th.itfree and Wear, and freely and .absolutely released anil discliari;ed, or otlier'vise,
at the co.st of the siiid party of the lirst (lart, effectually indemnified from and ayaiii.st
all former and other bargains, sales, s^ift.s, grants, titles, chari^ea, and encunib-ances
wh.itsoever.
.Vnd moreover, that ho the .sjiid party of the first part, and all persons ris;htfully
cUiiiiiii'„', or to claim any estJite, rii;ht, title or interest of, in, nr to the .sjiid hereliy
assigned goods and fixtuic, and every of them, and every part thereof, shall and will
from time to time, and at all times hcreafti-r upon every rea,soiiable reipiest of the siud
party of the seconil |)art. his executors, administrators or assiniis, but at the cost and
charge of the R;iid )iarty of the Seconal part, make, do and execute, or cause or jin cure
to be made, done and executed, all such further acts, deeds and assurances for the more
elfectually assii/niny and assurint; the said hereby as9it;iied <_'oo.ls and fixtures unto the
said party of the second part, his executors, administrat'irs and assigns, in manner afore-
.s.aid, and accordinj; to the true intent and iiuaning of these presents, bk by the said
party of the second part, his executors, .administrators or a.ssitjns, or his counsel shall be
reasonably adviseil or reipiired.
In wiTNK.ss wHKKKoK the Rjiid parties to these I'resents have hereunto .set their
hands and seals the day and year first above written.
•Siyncii, scaled and delivered in j ^.
he presence of JaMIS .-<MITU. ifff
ChaEi.ks Simmrrs. I
PROPER'n-.
109
Attiilavit of piirchaser im to the sale bcim; bona -fide for value :
CoiNTv OK VoKh, I I. Walter WinU'm, of the City i-f Toronto, in fht- County "f York,
TO « IT I tliu vrnik'i' in tlie fiire^ing Hill of Sali' niiiiiud, inaki- oatli ami xay :
That thi' '-Jilc tlurt'in iiiado i» tiona tiili-, ami for good ConsiiliTation, namely the
ari\i:il pristiit payiiiiiit in hand to thf vendor liy the vendee of the sum of six hundred
doll'irs. and not for the purpose of hnldiiii; or enalilinfi me, this ileponent, to hold the
goods mentioned therein against the credit^.rs of the wid l>ai'(>ail|or, or any of them.
SwoKN before me at Toronti
Waitii; WiNrr.Ks.
SwoKN before meat loronto, in |
the County of York, thi-, 4th day >
of April. A.I). r.HHi J
.Iamks Brown, a riimmu.iii'11" r/i<r ^(A•lll>/ ii^'i/rii'if.i lu II. <'. ,!.
ADiJavit of witness provinjf the signing', soalini; and ilel.veiy oi i|ic liill of Sale
Col'NTY <iK York, \ 1, Charles .Siimmeis, of the City of Toionio, lu the County of
TO WIT : I York, make oath ami Siiy :
Tli.Lt I "i- pi r-.oiially present, and did see the within Hill of Sale duly sii;ned, .sealed,
,ind ileliveiid by .lames Smith and \V .alter Winters, the parties thereto, ani' that 1. thin
depomiit. am a subsoribin;? witness to the same. .\nd that the name Charles Summers,
set and subscribed as a witne.ss to the execution thereof, is of the pri'per handwriting;
1 at the City of Toronto, County
i)f me, this deponent, and that the same was executi
of York, on 4tli day of April, A.U. I'.KJO.
Sworn before me at the Ci'y of ^
Toronto, County of Y'i>rk, ihis !-
l..ronto, County
4tli (lay of April, IWO.
Jamk- I'.KOWV. ■! I-..
J
HIT fi'r Ifihiim iitHiliivil.i
II. ('
CiUKi.Ks Simmers.
■ I.
'A'ii Sales on Trial Wlhu aiticlcs tn-r jmrchasrd mi tri,-il at a
certain price tlley lim.st lie I'ejeCteil lielofe the time exjiires if tlieV i!u Imt
^nit, or the sale is complete ainl the party botiinl to keep tliein.
'.VVi Guaranteeing Machinery. The 'lost ript ions ot" iiineiiiiieiy as
to iiiaiinor ami excelleiicu of worli. etc., that iipjii-ar in newspaper lulver-
tiseiiieiits ami circulars cannot he minie- a liiiniinf^ ;;iiarantee to protect the
piirciiaser. To liave an eH'eetive ;_niari'ntec of excellence, or that tlie
machine or instrument will do what is cl.iimeil for it in the circulars it
must either he in a ilerinite form of ;^iiarante(', or in a written or type-
written lette-r. The coin'ts allow for a j^oijil ileal of wh.it may he called
exa^jjjeratioii in mere advertisements, hence as an instrument or machine
miy always he tested hefore heinj^ paid for there is not inueli chance
afterwards to recover damages for luisrepre.sentatiou except on a written
j,M]arantee.
Wi'A. Sals by Sample or Description are made on the warranty
tliat tile t;ooils when delivereii will correspond in kiml and ipiality with
the ilescription tjiven or sample shown, anil if such is not the case there is
no iiinding Kale. Ti.e article must not be retained, or u.sed. If the seller
was to remove the article, if unsatisfactory, the notice should he given as
per aoreemeiit, and the article' cared for until removed. If a cumbersome
machine were leit an unreasonahle timi it must still he cared for, hut
stora^'e could he charged -.nd collected hefore delivering the property.
•V14 Selling Stolen Goods does not give tlieni a good tith' in the
hands of an innocent inirchaser for value, as in the case' witli the jiro-
missory note. 'I'liey can he re-taken wlierever found.
no
li;"l'KHI V
•t'tr, IiiUenimty FJop.d for Payment of Lost Note.
SKALKh \>y my h.-iU hii.1 il.itrd this 4tli day nf ( M.,hi.r I'KJO
en,l,,r»..a l.y Monry . nn.s. „,„1 .lat-d J,„„. 4tl,. V.m. .1..1 „r.„„iH,. ,„ ,.,.v S. Z } ,'
P,. ttH or or.l..r .,,... hundr.-l and t»vnty.five d..lk,s ,,,v„l,k. i..nr Jn,L"Lr Z UL
thoreof. »nd such imr., «hh .Jtt.rw.udH t...,.sf..rn..l „, , „d I,,..- tlu. ,„n ert ,f tlu^
a» d .e„r«. Wormt ; ,uul «hen*s the sai.l <i.„ru- \V..rn.,r h1I..«., .ha. e tu.h .sa^d
-\..w the condition of tlie ahT.ve written hond is such tha. if tile
:"!'^!^?!";"';"'""L'"'"''"'"'"?'V''-.'": "">"f '»"•>»• <lo and shall, fro„, „„„. ,o .„„,.,
his lit
and a. all tiine> h.naf.e
Hunter, 1;
• Kaid(leori;e Werre.t,
1. s^ive, defend, keep harmless, and in.lenmify .he said Ku-hani
tii'irs, eieoii.ors or aduif ' " ' ' ' ' ■
niMs.rators, and his or their
Signed, sealed and lielivered "|
in presence of '.
Haukn I) An.kh. I
(Sim
(iKOKl
•R \\Kl;liRTT. 4f^
I,. .St Not,
Srt'tidii i:
'.itii Sale of Book Accounts is Lilucle.l
tollciwiii,; l)i-i,.| iiistrmnint i.s .sutficieiit :
liy .■issi;^nini,-iit.
Tlie
/„;• r„lur rn_;-ir,',l, I herrh;/ as.'^Hjyi t,i(p,rso)is liomP) titr
uccoiHf,„nying acroimU <ind dalms a,jai nxt th,- ,„ rmns ,rh,jH>'
namtx are enumn-,iU:l (,'„a,nrmt>- thf nnmf* and uinoiinfs).
(Sir/ni^,/) ,1. WiVTf.RS.
IIS-
aiiswer
f.rr 1 • 1. ;""".""." "'■;''■''' :'""■ " •"■'■'^"" ■"">■ '"^ ^o'-^ °'- trans
fcrrtM IS well as „ot.rs, l.ut not by indorsement. Thev c.-m only be tni
k-rred by assi<,mMieiu. The above form, or one sin.il.'ir to it \ ••
lor all kinil.s of accounts, but for mortgages see Sectiun 201
-.m Goods Stopped in Transit (ioo-ls not yet ,,ai,i for. bavin.,
been shipped tu the puiehaser, but before their delivery word beinrr
received ot the purchasers in.s,)lvency, may be stopped bv' .,rderi.,.r the
comparn- n, whose po.s.sessi,.„ they are ,mt to deliver th.,,:. providing the
l.ill oi iadiiij,' 1ms not been delivered.
U it sliould tun, out, however, that the purcliuser is not insolvent,
I'KOI'Ein V.
Ill
tlieii llio M-ller wlm uniiiwfiiliy stopH the triunlH iti tniiisit miiv In- rfiiiiiiLMl
Ui iiulfiiinity tin- iiiircliiis.T'«< Io.hm, orto ileliver tlir ;r.M)ciH atLfiHiv iIiiiiiu^'im
sustuiiii'cl hytli.' ililiiy in ilclivcry.
ll'iH. Goods Sold by Order. With .".ll iiiipl.-ni.nt-* an.l inacliinery
sold liy onlt!!-, tlic imrty ;;i\ in;,' the (inlcr shoiiM r,(|iiire n. iluplicatf of tlit-
ortltT to Ix- left witli liim 'I'li,. law dot-n not conipi'l an ii^^'cnt to lonvc n
copy of tlio onlii- with thi' person ^rivinj; thr unlrr. hut th.> p.Tson hiuiM.'lf
has the rij^'ht ami the y/o</» /• to <l> inanil it or nfuse i<> I'ivc an onliT.
Ciiri' shoiilil l)c tak. !i to hc- that the copy n-adN exactly lik" ihi' orii,'inal.
Where the af;eiit would refuse to jrive a copy of thj order it wouil l>e
stron;: evidence of an intended fraud.
:t'i:> Auction Sales. At evny :iiiction sale the " terms of sale " are
always well ,i.|\ eriiscd If not hinj^ were said al^jui the terms they would
he ca.sli,
The proprietor inay have various conditions, as well as the terms of
creilit anno\inced hy thi; auctioneer hefore the sale conunonces, such as,
that the first hid must Ix- abov.' a certain sum naineil, and even the amount
to !«• advanced at each V)id, an underhid.ler, and a certain amount to he
ileposited at the time of sale, all of which will l)e hindin:; if so announced.
;{:{0 The Auctioneer
IS the a;;rnt for Initli the srllrr and liuyer;
hence liiiids JMiih l.y his acts. When he is sellin^r !„• isactin;; iW a;,'ent for
the seller, hi't in the act of "knocking,' clown" the articl." to a"ciM-tain
bidder he is the a;,'ent of the purcha.ser, ancl in the nieiiiorandum nf the
sale he makes in his hook he acts for both parties and hinds lH>th.
Auctioi.eers' licenses are ^'ranted by counties and eilirs, win, may cl
a fee and also i,dve special rules for their ;,'o\ crriance, ,-
sons may si'l' by |)iiblie auction.
In Ontario, and probably all the Provinces, a inerchnut couM not s,
his own ^'oods by public auction without a licen.si
Bailittk who sell ^'oods under distress for rent need im license.
lay c!iar;.;e
no other per-
Tl
are two
sales, VIZ.,
:W1. Sale of Real Estate
Executed and Kxecitory
1. HxKct'TKl) .SaI.es are those where the sale has hem completed by
the payment of the money and the execution and delivery of the deed o'f
Conveyance.
Whore pnjperty is s.,1.1 on a part payment, deed tjiven and a mort-
^'a;je taken for the balance, it is advisable to in.sert a clau.se in the deed
statinj; the amount in cash paid and that a mortijajje had been {jiveii for
the unpaid balance, thereby preventintj the possibility of a second mort-
fjai^e takint^ priority.
2. KxKi'lToRV Sales are those where pos.session has been pa,s.sed hy
ajireement for .sale, but the title does not pass until the price has be>'n
paid in full.
The seller of real estate has a lien on the property .sold for the
purcha.se price, which is as binding; as a mort;,'a(;e. If payments are not
made accordini^to agreement he has the option of suinir for them, or if not
11.
I'BOPEIITV.
iiiinl'' witliiii II r^•^.^«llnMt• time ],<■ imiy re^uiii imhsehMiim liy nn m(Ii..ii to
liiivi' tlu' salf cuiicfllnl.
Xt'i Agreement to Sell or Buy Real Estate. uiiI.sh in writinjj,
HV^wd \.\ tliv ciitruitm),' pa.tu.Hi.r tli.ir .luly aiilli-jriz.'.l iif;.'iitM, is not
l.nnliii};.' An ornl rontrart iiiiuIl-, even if inonej- In- jMiid on it to " hinil
the Iwr^.'nin." 1»h'h not liin>l eithir pnrty t<> buy or wll.
Wliiii fur any reason a lpur;;iiiti is nm<le for the mile of real estate
that caiiiiot U- fNVcut d imnniliiitfly, ii nieinctranilum of the a},'reemciit
shoiiM !«• writt.ii out iMi.l sij,' 1 l.y'the |.iirties, or th<ir u«fnts niithor-
izc«l, in writiii;,', Thii niak's tlif coiitnirt liin.liii^;. even thuii;;li nottiinj;
!«• paiil ilown An onliimry iij,'rc.iin lit without -.'iil is Hiithpiiii', iis in tlie
followinj,' .section. It does not convey a title, hut is sinii.ly .i hiiidiii;:
Iironii'-'' t'l eiiiiviy.
:t:(:i Form of AKreement for Sale 'i'liis a;,'ri'einriii for sale of
land niHV i'«' proved hy athdavii of witness and re^'istered I'V ih''
i.uichjisi r. excijit wher-' tl- 'I'urrens System is in use.
HrtkiC6 of H0r*"'^'11^^''^^ m.i.l.' luwl .ntir..! ii.t..thi«l>t.liy..f.hiiuintlh.
ycari't "nr l-^'fil •■m- tlinuajiiul min' hiiiulriMl.
UKTV^KK.^ .l.iiiii's (iiuy, of tlif Tiiwn i.f Siiiicoi-. in the t'ounty ..f N..rf'.lk. I'r..v-
uieo I'f (iiit»ni>, vfiuli.r, of the tirst |uirt ;
Au.l WilliJiiii Kr.iiiklm, of tlie ■r,,wiislui. of \V,K..lh.iiiin- aforesjiid. piirrhimer. of
the Hecniid part. . ,. . , . .... .1.
Tlie BrtJd .Ihiiiis "Irny .iiiil WiMmni Franklin do hereby, rBiil>ectiveIy. for them-
selviH, their reMiH-ctive huirn, ixecutors ^uiil iwlniinistrators fture«' ench with thi^ other.
THATtlio wiid .liuiK's (irny «lmll ulII to the sai.i Wilhniii Kiiinkhii. hm.I that the shhI
William Fniiiklin shnll piiichnsr ,ill tlmt certftiii pan.l or Ir.ict oi laiul, lieiiii; o.mposfil
of l,.,t N.. Ill 111 tli>> Fifth I'ontissioii of the T'oinsliipof WoodhoiiM-, iiforiisiml, coiitaiii-
111;; i>y a(lim'a.suri'iiicnt lifty <icr.K inor.' or l.'ss, toutrtlur with the appurtcnaice and the
frnholil iiii.l inh.riiftiKi' tli.re<pf in fee siiiipU' in possession frei' from all iii.uiiil>raiici«,
at or for the priiu or sum of one thou>aii.l .l..llai-9 of lawful moiuy ..f Oina.la. lu-inj; tliu
residue of the said purclia.-..- inoiiev, on thu •JUth .lay of Si-pt.MiiI.er ni'Xt. at which tiint.
thi' puruliase is to he coiiipletrd. and the .said W illiaiii Kraiikliii >liall. on and fr..ii. that
.hiy, havii aitual |KisHrs»ion of thu said premises, nil outi^oiii|.!» up to that limi' buiii^' .lis
chiirfe'ed hy the said James (iray.
Th:it the production aii.l inspection of any deeds or •■tliL-r d'xuiii.m.s n.! in the
iiossession of the sjtid .lai.ius (Jray, and the procuring' .ind making of nil certiticates,
attested ollice or other copies of or e.xtracts from any deeds, wills or other documents
an.l of ull declar.itioni- or other evidences whatever, not in his |K.«se»Kioii. which in.iy
he reunired. shall Iw at the exiiense of the sahl William Fninklin.
Tha* on payment of the sai.l sum <pf SI.IHHI at the time specdieU for the payment
thereof as af..resjiid. the .said .lames tJray and all other neces.sary parties sh.ill i""'"''^;
a proper conveyance of the said premises with their ftppnrtenaiices aii.t the freehold
and inheritance" thereof in fee siini.le in possession free fr..in .ill dower or other inciiin^
hrances. unto tli« .said William Franklin, his heirs and a.ssi-ns or as he or they sImU
That if from any cause whatever the said purchase shall net lie completed on the
sjiid '.llthdayof .■Septeniher next, the sai.l William Franklin shall p-iy int.rest at the
rate of hve [sir cent, on thu resi<iue of the purchase money fn.m that day till the com-
pletion of the purchase. ,1,1. 1
Is wiT.NEss WHKKKOF the parties hereto have hereunto set their hands the day an.l
the venr first aliove mentioned.
Signed in the presence of |
H.»KR\ I'OTTS. )
.I»MP.s (Ikav,
Wii.iiAM Fhankli.v.
I'Kiil KHIV.
iia
JW4 Deeds ThtTf iirf xnrious kimlH of diiils in rnmnion uh»>, «s
\V:irr:nily l>'il with full cuvciuiiit.s, Wmiaiity D.nl witli ii'il)rc\ uitid
covx'imiit.s »,>iiit Cliiitn I) I. ii IKhmI Poll and 1 rust |)i>i-.l, iis lollown :
ItlVt Warranty Deed with full cijvi'imnts is nw that jjimnintff.s a
rierfifl title nul lui-t . iiiciynifiit nf property to the piirchii.sfr iiml Ins
li»irs liiiij Hssij^'iiH alter him. Tin' coveiDuits an- nil written out at len^'th
I'llt uwili;; to the expense in rt'ffisterillj,' tiny have lie-n le;r,il|y ■' l.olleii
•lown ' MO as to express all the covenants in tVwiT wonls ninl thus ohIIimI
a Warrnnty Deed with aKIaeviateil covenants. That is the form shown
in this work, .Section liKi
;Wft Quit Claim Deed is maile hy a person who does not hold a
pprfeet title to a pi'.p.in, in favor of some one that li.isa claim to the
property. It is much like ati ordinary deed without the covenants It
con\eys only the party's interest in the property with(jiit any ^'iiarantee
of title. It would he Used when II mort;,'a^'ee purchu.ses the liuid already
<"">i'l;,'a;,'f<l to him, the covi'iiants hein;; already made in his favor in the
mort;,'M;,'e It would also In- used when heirs in cominun of an estate >|uit
their li.iini to nu<- another and to executors. (See Section :t47.)
JtlfJ. Dced-Poll is a deed made bv one person, us in case of a
Sheritr's 1) 1
ItltH. Trust Deed is <]ne made to a person called a trustee, conveying;
property lo liim i.i he Inld in trust for some? other person. The Statute
of Limitations dcx'.s not .ipply in such cases He is empowered hy the
conveyance to carry out its provisioiiH, whatever they i lay he, as to
collection of rents, sale of property, etc., and for investment of the fund.s.
He e.iiinot use the pr<)j)erty for his own personal heiietit. The jierson for
V. lin-i 111 iictit the trust is lieM cannot exercise any authority over it.
Till- trustee is Ixjund to exerei.se reasonahle and ordinary care to
prevent lo.ss or injury and can only he held personally liable for loss oc-
curring; through f,'ro.ss or wilful ne^'lip'iice on the part of himself or h! <
a;,'ent.s. If he is commiliin;,' waste he may he restrained hy action
brou^rht for that pui|iose.
Property for any le;;iti mate cause bcin^ tempoiarily d.ed-xl to .iii'.tli. r
cannot Iw retained hy that person, if it can he .satisfactorily estahlished
to the court that such person was merely a trustee, althouVh the dee.l
itself di.i Hot disclov,. l|,,-ll I'.-lcl
:WJ>. Sale for Taxes All the Provinces allow the sale of hinfls
for taxes. Ill Oni.iiioaftir three years in arrears for taxes the land tnay he
sold, and a title to jiroperty derived from a tax sale extinLTuishes all other
titles, heirs includiil. if the sale was \i-^!\\ and the iroceiMiinirs accord in 'to
Statute. 1 h „
:t-IO. Form of Statutory Deed. The followin},' is the Ontario
short form irr .-Statutory or Warranto Deed with al.hreviated covenants
CDIf jtlOClUlUC iniule (ill (hiplicrtte) the first day of Nevi'inbiT, in the year of
iMir l/circl iMK th.iiis;iiiil nine hundred, in itrsi-A-N< f. of thf. ait respectino rhort
FOKMN OF <:<)NVEYA.NeK.s.
8
■!■
IMHil'KI'.TY.
Ill !■
Hktwkev Janu-s Smith, ..f th.- TowiiKliip of K.ii'„', (■.■iinty -f V.'rk.
yionmn, "ft lit' 'liinl pint tIiliivlikI Dullars (.*:1.<«HI) lawful
WITVIISITH t l:lt 111 COIlSllhlHtlDn of llirfO l lloll>„lII(l 1»U1 ,IIS \: . I
--"d :r:i;;'^;irs; ;:s:',t;i':; = :.tri- , ^.,».;,,,..,
„i„„ iS' f . ;,. ..» T,^:^".;;' ,;;; k;,;,'r£:U;;*' :l';::r%i:"i:;;«
::;,r;r.,,''i..;t:r,';:n .Tsii' ■' i- -•<■ <■ ™ < •■"- •
-•'■'S'S s s.;;s:"';ra,S,i; s.t ,„„., ,.,..» „id
lands, "•'^^'; '" '"' f . , .^ .^j.^ ^-ovENANTs with tho >jiu1 i.;irty nf thu thud
'-^ "tilr.!;;; s;!;a';;,";Vo; ^;,r;:;:r;:;t.^^ u! u. ..a ...y of .. thi.a ,.«.
^" "'i:.rM:i;'j:u.e%m;;l,I'u:!: ,,.rty of the second part, herehy h.r. 1,..- do.or ,i,
the «"^J^''';j;^_'-^,^,^^ WUEKKOK tho siiid pirt.os hereto have hereunto set their h.i.uls .1.1
seals. ^k
.Sitrneil, St-aleilaml I)eliveied| Jame.s Smith. W
iii'iireseiice of f M.\RY J \r.K Smuii. ^
C. KoY .\MiKB. j
Alhdavit of Witness ; , ^- , i
rnrvTV OF York 1 I. C. Hoy \nger, of the City of Toronto County of \ork, .md
TO w't I VroWnee of Outario. student, t.iake oath and .s;iy :
I Tl.it 1 wan iKTSonally present and did see the witliin instninient and .luplio-ite
J..1V signed «.ai:da!:i:xecutyi l.y James Smith and Mary .lane Smith, two of the
''•■"■^'^^''Thlt the said instnnnent and duplicate were executed in tlie Township of Kinu
;{ That T know the stiid parties. , i i: ,» .
4; That I am a sul.scril.in- witness to the .said instrument and duplicate.
Sworn before mo in Toronto | ^, ^^^^^ ^^^.^^
ill the County of \ork. this 1st.
day of N<.veml.er, .\.\). V.m. '
John H. Williams,
A comm!.v,l„Her fnr (../,/»;; n^fviar.ts ,n the Counlu 0/ \,.rh.
:Ul Who Should Sign. Any person who hn.s unytliiiif,' yet to do
should .io>. tho dood. Ill tho deo,l shown here, the pt.rchaser paid the
Al purchiu^e price iience hav.nj; nothin^^ fntth.,- to do dul not sij^n. If,
PROPEUTY.
1.-
h()«evor, thorc wore ii iiiorlj,Mc;o or cluiiii tliat ho had cDvonautccl to pay
ort'or to allow a portion of the property to ho usoil as a lane, etc., then he
wouM ho roi|niroil to sij^n so as to \i\i\d hiiiisolf
'.i4'i. Deed Subject to Mortgage. W'horo proporty is soM snhJoct
to a iiiort;,'ai;o, the purehas(,-r aj^rooiiii; to pay otl' the iiiort^'aj,'!' as part of
tlo' [)un'ha.se uioiioy, the niorti,'a(^e is rot'orrod to after the (lescription.s of
tho [irnporty, or after the clause eiiilinj; with the words "suhjoet to the
rese. vations. limitations, provisions and conditions o.x]irossod in tho
original j^rant from the Crown." with wonls like tho followini,' : ■ .Siili-
ject, however, to a certain niorti;ai;o made hy tho parties of the first and
seconil part fii wife siijn.^d, too. j^'ivinjr iianu' and date), SHcnrini^ the pay-
ment of trivini; amount and interest), whic' morti,'a;,'e the jiarty of the
third ])art aijroos to pay, satisfy and di.scharii;e and save harmless therefrom
tlir [Liity ol thf tirst part."
;{4It A Deed of Gift of property from father to son, etc., is iisually
drawn in tlio parts that relate to the considerntioii. " Witnesseth that in
consideration of the natural lo\e and affection and the sum of nu- doll.ar,"
thus 1,'ivin;,' lioth a yuor/. and ii rnl ihihti- consideration.
JJ44. V/riting Deeds. Any pirson may write a Drod who is cap-
able of ile.scrihin;^ the jiroperty, and it will lii' loijal, but in most of the
Provinces they would not dare to make a cli;iri,'e for .so doitii_', unless they
held the proper licon.se, or were a <luly ([ualifiod solicitor, etc. In Ontario
a charjje could he made, btlt it could not be collected by suit. The chris-
tian names of the various parties must all be given in full. The Deed
should be written in duplicate, one for re<;istration ami one retained by
the pureha.ser. There need also be a witness, who makes jin attidavit that
he saw the instrument sij^niMi. The atfidavit may be made bofure a
i;o;,dstrar. Deputy Uo;,nslrar, Supreme or County J':dge, a Notary, a
Ma;,'istrato or a Commissioner for takiiir; affidavits. For form of Deed see
.Sretiun :i4<). The forms are practically the same for all tlie Provinces,
and printed blanks can be obtained from nearly any stationer.
An ajjreement or tleed may be sij^ned and sealed, but it has no bind-
in^; effect on the maker until it is delivered into tlir h;iiids of the parties
in whose favor it is drawn.
Where there is any contradiction between different parts of a Deed
or other document, the part that is in writinj; holds a;,'ainst the part that
is printed, and in mort^jafjes what is written tirst over the last, but in
wills the last written holds over the tirst.
When land is convoyed to a corporation it is made .o "their suc-
ces.sors" instead of their "heirs," and to their " succesjiors in office," where
a conveyance is made to trustees. Corporation deeds do not nei'd the
atliilavit of the witness, as tho atlixinf; of the corporate .seal of the corpo-
ration or company is sufficient evidence of rrcnuinonoss when signed by
their chief officers
li4't Searching Titles. (1) Search the Lands Registry Office or
gi't an aljsiraci from th.' KcLjistrar to .see if there are any mortgages, liens
or dowers against it. (,2) Search the office of the SheriH" of the County to
116
I'Udl'KKlV.
Titles otiii'.' must l.f cou.sulti-il.
•U«; Reeistration. All instniinmts nsju'ctin- titles ..i'nalost.ite
K 11 rfs!,W in the Ke-istrv - 'liice of th. Cmnty or Ke;:,stn, nm
K„, z«; iiv« c.,«» ,1..- tiifc .1- «..y i-p-'ty ■"■■>.«""■■'""' ■■■"'
ti
All .leeds au4 .lornnu-nts to be re,-i>teml .mist be verities
in pn5p<'>- f'^",. nf a witness present at the time ol signature.
:Wi Form of Quit Claim Deed
iilavit
nf iiiir
CbiiJ llll^CntUVC, ...aae (... ,l.M.li.:.te) the f>rst ,l.y nf . ...t-l.c-r, n, tl.e ;
Lord ..neth.msiui.i nine hundred,
by the s.mi ,,..rt.v ef the second l«iit, at or ''^f'"-^ ""- w " ,;., ,t..l leleas.-d »nd .|>mt«.l
e^ts (the rf „. whereof is hen^.y ^-;>^'^\^,,^;^C:^:L':^,., ,he .ud ..--y ef
cUin.. nn.l hy tl.ef,e presents d..th -..int '«'^ '-".^ '' ■ ,,„_ ,|,i^._ ,„,erest, >lau, .in I
,he sec.n.l ,..rt. his liens .nd -^'l^^'-^^^^'V'','; ; .'. tt wis^hows-o^er. and whether m
demand whatsoever -oth at aw - ^ -. ^^ :f t tirst ,,a,t. of. m, to or ont of
"-i^:±:t;::s:::::r;^^^^^^^ wrenn.oset .he. ......
seals.
Signed, Sealed and Delivered j
in presenee "f ■■
Clt.iRLF.S SlMMKRS. )
Received on the ,lay -f "le date of this indenture, the ...n, of Three Thousand
Dollars (i?:i.iKIO).
WitncsH : I
Chaklv- >;• MMBKs. j
.Iamks Smuh. ^
.liMKS bMITU.
rmii'KKTV
117
Aftidnvit of wjtiifSH to the cxeuutinu,
... I I, Ch^irk-s Suminer-, "f tlu' 'Icwiishiii uf St.iiiil..i.i, ('..uiity
CoiNTY «v Wr.u.KSV I ^f WVIlMii.l I'rovinrr ..t Oiitan... ..;emleiiKiii. iii;ikr ..atli .111.1
TO WIT I
I. Tli:it 1 wiis pi-rs.iiiiiUy pivsi'iit. .ind iliil scf th',> witluii liistruiiRMU iitul the
Duplu-itv tluTt'of duly Sh.;nod, Soaluil iind livured tiy .l:iinf.s Smitli, oiio <if tliu partius
thereto.
•2. Tli;it the s.ml 1 ii^lnniieiil ;iim1 UiiplRMte wit.' e\eciileil in the InwiiNhipnf
Stamford.
:!. That I jiersoh.illy know tlio s.ii<l parties.
4. Tliat I am a suhscrihiiiy witness to tliu siiid Instrument ami Diipluati;.
Sworn hefore me in Stamford, County of "|
Wetland, Province of OntJirio, this fourth >
day of October. .\.r). I'.tlK). j
.loii.v 11. WiM.iAM^, .( ,7,mii(i.s.s/(iiif/'/o/- t'll.iii'i ii]fldnnt.i.
ChaKLEK SlMMEK.S.
;{4H. Conditional Sales aro wli;u liavo lioon rolVirod tu umlrr the
liead of a " Liuii Note." In .SL'Uini: sowing iiiiirliinos, organ.s, pianos, etc.,
it is connnon to .sell thoin on the " instalment plan," the buyer obtaining
the pos.ses';ion and use of the article, but the .seller retaining the owner.sliip
until it i.s paid for. These conditional sales are binding and enforc 'able by
oonniioti la\v,an<l all the Provinces recognize them, but e.ach Province, and
Newfoundland, has enacted .special legislation to protect the interests of
imiocent third parties in certain cases. The following .summary of the
various provinei.il en.-ictiiM nts mnst be carefully noticed as the diti'erencea
are radie;il.
If tenants purcha.s.' any article under such terms v.hich the law
reg.irds as a fixture to t\u- freehold the owner or landlord may hold it,
but he must pay the balance of tho ]un(lia.si' price.
:{4t> When Registration is Necessary
In Ontario the Lieti l,aw provides that for these conditional sales in
respect to manufactured articles only) to be binding against subse(|Uent
purchasers or mortgagees without notice in good faith for valuable con-
sideration, one of two things nuist be done :
( 1 ! At the time possession is given to tin- purchasiT the name and
address of the manufacturer or vendor must be painted, jirinted. engraved
on or attached to the article: or (2, A copy of the Hen note, receipt note
or agreement mu.st be filed at the office of the County ("oiu-t (Terk, within
ten days. Fee for tiling is 10 ceu' i.
It i- only for manufactured articles ohat the Act re.|uires one or the
other of thesis things to be done in order to be binding against subsequent,
purchasers an<l mortgagees.
Household furniture (except music-'l instruments), ea ■ri.ages, live
stock, etc., do not reipiire either to be done as they are not inelii<led in the
Act, still for live stock it would be well to tile a copy of the note or
agreement. Carriages ustially have the makiTs name on them.
It must be noticed that sutise.iuent purehaser.s and mortgagees in
good faith only are protected. General creditors are not yiermitted to
seize .such ])roperty, no matter even if the statutory requirements have not
been complied with.
11«
PROPERTY.
■rtv
I'l.r ri'nt, Iml tln-v imi^t
Landlords may seize and sell sued pm
pay the li.ilaiice of purchase money
In British Columbia all conditional salt's nr-' void aj^ain^t NubsfMpient
purchasers and mortL,'a<re.s without notice, in good faith for valuable
consi.Kr.iliun iHde.ss a true copv of the receipt note or in.strument is hlea
within twentv-one days at the office where Hills of Sale arc tiled for that
district would be tiled' Hen- the articles need not hear the maiiuiaeturer S
or vemliir's name.
Such property is liable to di.stre.ss hy laiidl..ri f.T tliree montlis
arrears of rent.
In Manitoba a copv of the note or ajireement need not be filed, li- t
in ca.se of //i((,n//.».'^'/v"/" articles the name of the manufacturer nr vendor
must be painted", printed or stamjied on the article.
In North-West Territories wiun for a sal.? of goods of value of
SI,'), or over, to be bindint; ai,'ainst executions, attachments, subsecpK'Ut
n-chasers or niort;,mL;es without notice for valuable consideration, the
I'll
•icturer or
ij^ent. iind
( 'lerk for
aj^reement must be in vvritinj;, signed by the !.■
such writing or a copy of it tiled in th.' otfice c legistration '
Chattel Mortgages in the registration distrit .n vvhich the purchaser
resides, within thirty days from .sale: and also in the registration district
to which the goods may be removed within fifteen days from such removal,
verified in each case bv affidavit of the vendor or his agent that the sale
is h,ni,i Vile. The lien* holds good for two years from date of registration
an<l may be renewed. Fee for registration 2.5 cents. They take priority
from date of filing same as chattel mortgages.
The statute <ioes not apply to receipt notes or onlers for farming and
agricultural implements of less value than .'?:{0, and other goods not
exceeding ^1;"). , , i-
They may be di.seharged or partially discharge.] by hlmg a receipt or
certificate same as in case of a chattel mortgage.
In New Brunswick three things are required. 1 1 ) 'I he name of tli«
manufacturer must be printed, stampe<l or painted on the article, (ii A
copy of the writing tiled in the office of the Registrar of Deeds for tuat
county within ten d.ivs from the execution of such receijit note. Fee tor
filing'lO cents. ( :} ) The manufacturer or seller must leave with the purchaser
a copy of the lien agreement or hire' receipt at the time of sale or within
twentv days. it,
Also, upon deman.l of any creditor or interested p.'rson lie must tile
with the Re<dstrar within twentv davs a sworn statement of tlii' amount
due thijreoiiTand failing to do 'so he forfeits his rights un.ler sjime as
acainst such creditor or interested p 'rson.
" In Nova Scotia the agreement must be signed by the ]>arties, with
afli<lavit settintr forth the contract, an.l ref.nstere.1 like a bill of wile.
In I'rinee E.lward Island to be binding against third parties one of
two thin-'s must be done. Either ( 1 ) the name of the manufacturer must
be printeTl, stamped on or otherwise attached to the article, or (2) a copy
of the lien a-reemeiit or receipt note must be filed in the office of the
I'KOI'KI'.TY.
119
I'roUionotiiry or Dfjnity rrotlionotiirv. This <locs not apply to household
^od'ls, fXCi'ji't to |)iiinos' or;,'iiiis or otlier iimsical instniiiK'nts.
;{."»!» Retaking Possession. Articles thus sold and the note not
hciii;; jKiid at maturity, the sellir may retake them at once, or he may sue
on thf uoti'. and if he" fails to recover h.- may thtn retake the articles. It
is not neees.sary to procure the help of an otllcer, 1/ut care nnist Ix' taken
not to commit a hreaeh of the peace. If the conditional purcha.ser resi.sts,
force mn,st not he u.m.1. hut the article must thru he tak.u hy an "action
of r.'plevin," if it cainiot he olitain.'d peaceably in any other way. It
wuuld not lie theft to take it without ji^rmission.
:tr»l Time to Redeem, in Ontario. North-Wi.st Territories, New
Brunswick and Uriti-h ( 'tiluudiia. ;,'oods thus retaken hy the manufacturer
or seller nu.st h.' retained twenty -lays from the time possession was
retaken hefore they can hu sold to others, .\ny time during those
twenty days the purchaser may redeem tlein hy p.iyiu;,' arn-ars, interest
and leiral costs.
;S.Vi. Notice of Sale.
^v.^^ — - In Oniario. New llruusv, ick, North-\\ r^t
Territories, ;;()ods, when the price of which cxceeils ?:{0, heing thus
retaken lor 'ji hreaeh of the condition, nnist not only he retained for
twenty days, hut cannot 1"' soM without live clear days' notice to the
hailcc'or <l."'htor. The notice may be rriven orally or by letter. If .^ont hy
lett.T it shoidd h.' re^jistered amfposted at least seven days hefore the daj
of sale. The said five -la\s or seven days may be part of the twenty days
in previous section. The" North-West territories reipiire the j;oods to be
retained twenty days even thou^di the amount is less than .*:!(», and also
the ti' e days' notice.
:i."»;}. Form of Notice.
To [person's name], of [place] :
Sir.— L'lea.se take notice that at the expiration of live days from the
service of this notice upon you, tn wif. upon the .... day of 19. ., I
shall proce.Ml to sell the f.>llowin;,' goods or chattel [describe the propert
^t tiie in the of in the county of . . . ..provinci of . .
The s,ii(l ^ri„),ls were taken possession of by me on account of a breach of
eondilionin the conditional .sale or promise of sale thereof to you by me. It
you desire to redeem the said j^oods or chattel you may do so at any time
within the twenty days re(]uired by Statute after the. . .^. .day ol ..... .
[the day of takinji possession] on payment of the sum of ?. . . ., beinjx the
amount in ariviir on such conditional .sale, together with the interest, costs
and actual expenses incurred in takinj; possession.
Dated this . .day of 11)
; Signed)
It is not compulsory that the sale should take place, but simply that
it must not take ]ilaee without the notice being sent.
:W4. Third Parties Asking Information In Ontario and most of
the other Provinces any pro.«nective purchaser of an article thus covered
1-20
PIIOPERTY.
l.v a li.M <n:.v .l.iH.n.l a,.! is ontitl.-l to receive, withm t.ve , ays there-
1 ,• fn.u, ti... ,„anutaeturer or ven-lor elai.ninK ownerslu,, uU .n or na-
tion concrnin;,' the an,ou,.t y-t .lue and the ter.nsof paynu'nt A ' I m
or ne.'lect to f.iruish suei> ini'or.nat.o.i incurs a penalty not exce,..lm-
$r,i^ n.ou eonvietion before a Mipen.iary or Pohce Ma;.>strate or two
Justices oi the I'eaee. Appea. fron, such Ju.i.n.nt .s to the Jn.^ o e
Countv Court without jury. The ,n,,>"'y .""tv 1- ''y "^""^ t; '"« J^^
,.in>e an.l post-oHice a.hlress, and a nply withm tne ,lays hy re-.stere.l
Uater to such adi'.ress wo\ihl he suthcienl.
he Act in some of the Provinces
e'reenielit he left with the ()Ur-
tiiiie the iIl^tru^u-nl i^ exeeuleij or
. time or within tw.nty one
:J.'»5. Copy of Lien with Vendee,
requires that a copy of the inn note ■
cha-ser :
In Ontario it niust he left at tlu
within twenty days thereafter.
In Biitish Columbia it must hr left at th
day.- iheivaft. 1.
In New Brunswick and Prin:e Edward Island withm twenty .lays.
:{.-.« Torrpns System of Lands Transfer is now in foree in
Ma.ntoha, North-West Territories. IJnlish Lolumhia an.l Ontario. So far
in Ontario it has onlv been adopted hy the County ol \ ork and (..ty o
Toronto. County of Kl,;i„. and City of St. Tho.na.s, C ounty ol « >"^'":-' 'y''
the Districts of Al-onia. Muskoka, Parry Sound, Nipissin-, Maiutoulin.
Thunder Bay and Kainv Kiver. Other municipality -s may introdnc._
simr.ly by by daw. which should be spee.lily done. It is leterred to as the
■ l.a'nd Titles Act." . , . ...
Luids .'ranted by th,' Crown since the intn^-luet i.-n ..l_ this system are
.subject to This Act, ami the ol.I cumbersome .system ol conveyancm-
cannot be used, but all d.alintrs witli such lands must be reeorde.l on
the " Certificate of Title." All oth.^r lands niav be brought urn ler the Act
on the api.lication ..f the persons interested and payment ..1 a Mnall tee.
The a,.plie,ati..n. with the deeds, is left at the Land 1 itUs < )t ice. w heie
the necessary blanks and all information may be obtained, ilie title is
there fullv investi-ate.l. and if fouml secure a;;ainst ejectme-nt or affims
the claim; .,f any other person, the pn.priet.^r will receive a '' certificate o
title," which op.-rates as a trovernment Guarantee that the tit e is perlec
and there is ni ffmv^ behin.l it. If a certiticate of title shoul.l be issue.l
to the wron.' person the <roverninent is liable for the dania-es to the
iniured party" The certificates are issue.l in .iuplicat.', ..ne bein- <,nven to
the proprietor an.l the other retaine.l in the Lan.l 1 itles ot ice. ( rowii
crrants of laii.l bought since the Act came into lorce are also issue.! in
duplieat.^ The one retained in the office constitut.'s the Register F..>ok
Therefore, if a proprietor wishes to mortgage, lea^-e, or in any %yise .-iicum-
ber his land he .'xecutes a memoran.lum of such mortgage in dupicate or
lease in triplicate or encumbrance, which he presents at the Lands I itles
Office with th.- " Certificate ..f Title." The proper officer makes a record
of the transacti.in on the certificate ..f title, and als.. on th.- .luphcate
certificate which is in the office. This constitutes the reg.strati.m of the
instrument, and a note under tlie han.l an.l s.-al of such ..fficer ot th.- fact
of such registration is made on both .luplicates ot the instrument, one
l'liMi'i:i;l V.
121
,hn>!ieat.- is then til.-.i in tl..- otli.v, and lla- uther hand, i to tliu niortpgee
or l.'s.s,M., tlnis eacli party will Lave a certificate showniy hiin exactly the
uiitiirc' of his intori'st .... ,
Wlu.n a n.ort-a^'.- is ,,ai.l un.j.r this systrn, a receipt is uulo.-se.l on
the .luplicatc n.urt-uKe hel.l l.y the n.urt-a-ee, which is then brought to
the I..uia -rillrs utlice, and the fact of the payment ol the luul•t.^'at;e 18
noted on the certiticale (if title. , ., . , i
Wli.li a lease is surrendeiv-l it has "surrendered indorsed cm t,
"si.rned" hv the lessee and 'accepted.' in- tiie lessor, and benif,' properly
attested is f.roujiht to the oHice where th- proper oilier records the tact
of its surrender on the certificate of titli'. i- i i
Moth inort"a<'es an.l leases un.h-r this .sy.steiu may l.e transl.nv.i i.y
indorsement wntt.ii upon the copy of the instrument held by thr pro-
prii tor and then n'ljistered. ,
\11 instruments for reKistration must be free trom erasures, properly
witw.ss..l, and i.roved. For deeds or transfer in fee one instrument is
sutheient, whih' mort<;a<,'es require two copies and leases three.
In this system it must not be for-otten that it is nr,t the e.Kecution of
an iastrum-nt that transf.rs the title, but its rej^istration in the Land
Titles ortice. . , a:
All neres-arv itif.irniMf ion iviii 1»- obtained at the ottice.
:tr»?. Mortgage under Torrens System
I \ 11 bein.r recristered as owner of an estate (here f,nve nature of
interest suiiject.'liowever. to such incumbrances, liens an.l interests as are
notified bv memoraiKlum under written (or iii.lorsed hereoi ) ot that piece
of land (describe it part of Section Township o range
(or as the case mav be), containing acres, be the same more
or less (here state rights .^'f way, easements, if any,intrnd.d to be conveyed
alone with the land, and if the land .lealt with contains all included in the
ori.'ilial .'rants refer thereto for description of panels and di.igrams otlier-
wis'e .set forth in the usual wav of boun.laries, and accompany d..seription
with a dia.'ram) in consideration of the sum ot dollars lent to me tjy
C. D. i insert description', the receipt of which sum 1 do lierel'V acknovv -
leilge, covenant with the said C. 1).;
First, that 1 will pay to him. the sai<l C. D., the aUne sum ot
dollars, on the .iay of
Secondlv, that 1 will pay interest on the said sum at the rate ot
on the dollar in the year, by eipial payments on tln' day oi an'l
on the. . . .<lay of . . ." in every year.
Thirdly (here set forth special covenants, il any.)
\nd for the better securing of the said V. D., the repayment m man-
ner aforesaid of the principal sum and interest, I herein- mortgage to the
said C. D. my estate and interest in the land above described.
In witness whi'reof I have henmnto signed my name this day
of U>...
Signed by the above named J Signature of Mortgagor.
A. B., in the presence of - "^ (NosealV
(Insert memorandum of mortgages and encumbrances).
\12
PKOPEKTV.
:ir»H Form for Transfer of Mortxage. or Lease.
I, C. I)., tin' iiiort^'at;>'c (iiifiuiilnuiir or livisf, an thi' rase iiiiiy be „ in
conHidenition of ilollarn. tliis il.iy jiai'l lo ine hy K. F., ol ■,
the receipt of wliicli siiiii I do hereJ)y "acknowlcflire. licrcKy traiisfir tohim
the inort;,'a;;(' (encuiiihnince or lease, as thf ease may !"•. ilisciiliiiit; the
instrument fully), tii};ether with all my ri^'hts. powers, titles, aii.i iiiterct
therein.
In witness whereof, I have hereunto .subseril" •! my name this
.lav of 1!>... , ,„
Signed by the .said f. D., ) < '• 1> ' ransferr.r.
in the presence of Accepted, b". F., Tranaferet.
( No .seal .
:{.V.> Form of Lease
1, A. H., ImIiij,' rfi,'islfn;il as i.wirt, subject, however, to such iriort-
{Ta>ies'and enemiilManees as are notified by memorandum underwritten (or
mdorsed hereon) of that piece of land (describe it) part of .section
town.ship of nin;,'e 'or as the ease may be) contain-
ing, . . ! . . acres, . lore or loss (hen state ri^dits of way. privileges, if any,
intenciod to be conveyed alon;,' with the Ian. 1, and if tiie lan.l .lealt with
contains inelude.l in the orij;inal p-;int or eeititieat.' of title or lea.se reft r
thereto for des riplion an.l dia;:ra!n, otherwise s.'t forth tin. Ijoundanesof
metes an.l Iwun.is , do hereby lease to C. !>., of (here insert description all
the sai.l lan.l to be h.1.1 by him the said C. D., as tenant, fo.- the space of
years, from (here state the date ami terms) at the yearly rental of
[, dollars, payable (here insert terms of payment of rent), subject to
the covenants an.f powers implied (also s-t forth any specia' covenants or
moilitieation of im])lied covenants).
I, C 1). (insert .leseription). do liereby accept this U-a.se of the abi.ve
descriiied lan.l. to b.- held by ine as teimn't. an.l subjcet to the conditions,
restrictions an.l covenants above set forth.
l)ate.lthis .lay ..f 1!'.
Hijjne.l by above A. 11, as ^ .Sijrnatur.' of Lessor A. l- ■.
le.s.sor, an.l C. IX. as les.see, (^ " ■• I,essee (C. I). .
in the presence of ^ ^ ^^ ^^.^^^
(Ibiv insert meiii..randum .)f m Tt-a-.^ and .•nc-umbrances. if any .
:U;0. Form of Caveat Forbidding Registration or Dealing with
Lands.
'I'o the Kei^istrar of District :
Take notice that 1, A. B. (insert .leseription) claimnig (state the nature
of the estate or interest ciainie.l, an.l the <;ronn'ls upon which such claim
is foun.led* in (describe th.! lan.l and refer to eertiticate of title), forbid the
ret,'istrati.in of anv transf.r etiectinj; such lan.l. or ih.' <;rantin<: of a e.r-
titicate of title thJreto, except subject to the claim herein set forth.
My ad.lress is (<;ive in full .
Dated this day of lit. ..
Sisnied by the ab<3Ve- ")
name.1 in the V (Si<;nature)
presence of '
MAUIiIKl> WOMKN ^ l'l(i>"KliTV miilll>
12S
I, the abovc-imnud A H (or ('. D., an ,it;,.nt fur the ah. a. uh the cise
,uav I..-) of (n.M.l.iKV. iimke c.ith (or utlirnuaua -ny. ih-il a 1 all.-KHli.m«
in fho ftlK)ve caveat av.. true in Muhstanc- ari.l in fact and if no personal
knowledge a.Ul " as I have been inforineil ami verily U-h.'ve .
Swoni before me, ) Sitrnature.
.•te. j
CHAl'TKl? \V
M.\i:i;ii:i> womkns ri:oiM:i;TV Kicins.
:t(;i All luiumrrie.i woman, either as spinster or a wi.low, is as free
to contract as a man. in all the Provinces. N,\vfoun.llan.l and Knglan-I.
'MV* Holding Propeity. A married woman now in all the Cana-
dian Vvn^ul^,■. ,,xe>i.t <iuel.ec), Newfo.mdland an.l Kn^Und, may con-
tract in repn-d to her own property just as fieely as a man. She can
buy an.l sell, .sue and he sued in her own name, and her separate estate
onlv be liable for her debts ami contracts.
' \ inarrieil woman has the same remedies for lli<> protection ot her
separate estate a-ainst her husband that she ha.-. a;:ainst otlur parties.
In anv [.roceodiiif,' concerniiif; their property, the husband and \Mte
are eomneteiit to idvi- evidence aj^'aiiist each other.
She now not onlv hoMs all her sep.;rate estate of both persona and
real nropertv fiv froin the control, debts an-l obli;;ations ol her husban.l,
but aWo entir.dv five from any est.ite therein by h.r hu.sband durin- her
lif.aiine. Eveii thou-h she may not possess any separatf ««t'ite at the
time she enters into such contr.ict she may still incur the liability, and
bind whatever property she may thereafter ac-iuire except such property
as she is " restrained from anticipatiii},'." (See Section •-ii-l)
In Quebec there is sutHcieiit variation to make it advi.sable to ^nve
the main leutun s separately. In thi^' i.ovince married women may be
either in communitv of prop.'ity with their husbands or separate as to
Dropertv If in coimnunitv the husband has the administration <• it. hut
at his death or a <li.sso!ntion by order of the court she takes hall thr e mi-
nion T.roi'ert v. Husba d can only will his own half.
Immovable propertv belon;:in<r to her before mama-e or bequeathed
to li.r by parents • ance.stoi-s does not become part of the community,
but is hers absolutely. The rents and incomes from such real estate
belon<' to the communitv. But in the ab.seiice of separation of property
wife cannot hold movable property in h-r own name, except what may
be willed or bequeathed to her by third parties to be her own priv.ite
^^^'buI when separate as to property she has the control of it, and may
dispose of h.T movable property, but cannot sell or transfer her real estate or
bank sbick without the authoii.-^utiou of her husban.l, or upon his relusal,
1?+
MAKKIF.I) women's I'KOI'KKTY IIHIHTS
an order from tlie co\irt. St-jMuatioii n.s to propTty inuy Ix' ol.tainod citlier
by antoiuiptial CDiitraot or l.y .mK-r of omrt. She ciui ft'liiiiiiiHt.! ht-r Hcpa-
riit»- t'Htato anil traiisai't licr Imsini'ss in her (iwn name. II" shv iM-coims a
tra.ltr she must rej,'iHter htr intention of carryiii;; on sueh hnsinesH, And
if she iN not separate as to j)roi>erty her ;;«m«1s would Im; lial)le for her
hushand's del.ts. also if she has no separate estate either l-y marriage
contract or a judjiinent of the court tln' husband would br liable for her
debts. Sh." eiinnot biii.l h.i>elf as surety for her husband. When jxHsess-
inj: separate property is reipiireil to contribuli- in proportion (o means
tfjward expen.ses of household and education of the ehildren by her.
:;«:; EarninRS of Married Women. In all the IVovinus every
marri.d woman I. now .nlill.Ml to le.ld as separate- property and to dis-
pose of, as separate property, tin- waives, eurniiif;:. or money acquired in
anv eniiilovment or trade in which she is enpaged, or any income from
aiiv liti lary or arti.stic .skill or oth.r source of income in which her liu.s-
baiid has no proprietory interest i entirely free fr<jm lier husbaii'l's control
and dibts, except Prince Kdward Islaiul.
:M;4. Gifts to Wife of personal projierty, or from wife to husband
are perfectly le;;al if not done to defraud creditors; b\it in cases wliere
there is a reniote possibility of third parties b<'in>; interested ilurin;,' the
life of such article, if it is of value, it is better to tlo it by bill of sale, then
there is no ditlictdty in the matter of pnwf, and there might be if it were
a mere verbal i,'ift, as well as beinj; open to suspicion if the claim has to
1m' .hdVndcl in the courts. The form of Hill of Sale, shown in Section :{20,
coulil easily be changed to .suit the circumstances, and it is not necesHary
that a ])rinted blank should be used.
:M»."» Disposing of Her Real Estate. In all the I'rovinces except Nova
.Scotia aii'l .,iu.'li,e, shr may ii.>t .inly ImM her own real estate entirely
free from her husband's control and debts, but she may ciispose of it dur-
ing her lifetime without her husband's consent or signature and will it at
hi^- deci'a,se. A married woman may al-o sell her s.parate property dinrt
to her husband, or the husband direct to the wife without making the
transfer through a third party.
In N.wfoundland an I Kngland the law i.s the same in each par-
ticular
In Nova Scotia th.' wife cannot deed away real estiite or dower in
real estate without her hnsliand joining in the det i She may dispose of
her real estate by will if the husband gives his coi. it in writing. If she
makfs her will without his consent in writing he may then fleet wliether
to accept the provisions of the will or to take his tenancy by curtesy in
her real estate.
In .Nbinitoba she cannot will it away from her children, but may
make any distribution of it among them .'^he desires.
In New Brun.swick she can only cell or will her real estate subject to
the husband's right of courtesj'.
See Section :{<!+ for (Juebei-.
MAItlllKK WiMlNS I'HOI'KKTY KKJHTS.
125
:UM EngaginK in Business- In all th.- l'r..v.m-iH Newfoun-llund
aiul Kn.'liiiHl a.,.Mrnr,l vv,„Man i.my enpi-r in biiHiiU'SH as fredy us thuu^'li
unniarn..i.ai..lei>l<JV the piutits .urniinj.' fro,,, s.im.- .•ntirely |rf..- iruin
,". .'ontrol .„• int.Ut ..f ll-r l>..sium,i. u,..l tl..- hosl^ind U,- .nt.rcly free
t'ri),i, liiiliility for lier (K-litn.
In Nova Scotia to .K^'^-i' o. l''''*'"^'«-\/^1\'^"''V''^' ..''"7 r IC
l,„sUn.l tl,.' oms.nt of tho l„.>l.an.l n,ust U. hl..i in the- oftice for the
le^Mstry of lKe.is of tho county or -listrict whe.v the w.fc- res.;l.;s ,m,l
carols on l.u.in.HH Sh. n.u.t also tilo with th- Cl.rk of th. Mun.cpahty
a CTtilicato s.lti.,;; forth the foliowin- faitM •. I. Her name. 2. Nan.e of
hu8ba,ul. •>. IMace of l.uMness. ;;iv in,,' street anjl nun.Uer wher.. po.h.I.I.
If wife failH to tile sueh consent an.l eertit.cat.- the husl.an.i maj . .. so. If
neither one .loes then wilVs property is liuhh. for '""f '""' « ,■ f ^l*; ';;';^
Imshiitul is liable for wife's cmtnicts. li any ch,in;;e t.ikes .l,ic. in the
business, or ren.ovnl to other premises a new certilicate must t.e l,le,l
In Prime IMwar.l Isian.l to enjra};." in separate busmess in lur own
nan.e she nee-is a j.rotection or.lor, so as to bin.l her esUite only ,iml free
her husband fro,,, her ilebts. f,>,,.
In Ma„it..l,«i she n,>iy en-age in business in her own name as frt -ly
as thou-h unmarried: but if she en-a-es her husband on a weekly salary
"o m,um«eit exelusively. .she tukin,' ru. part, the profits o the lt|s.ness
may be t^ken to satisfy the j,ld;;ment ere. , tors ot the husband, l-u f
the busine,.s is in her .,Nvn name, and with her own eapjtal and she helps
to maiia-.v then iiothii,;,' ean be touched fur husban.t s .letjts.
:M» Wifes Investments Inall the l'rovinces(exceptQuebec), New-
foundland an.l Kn-land, any shares or .st.K-k in any Rank. Moek or Loan
fon,rany,orany.l..lH.niun.;stan.r,ng in the nan,.. .>f a w.m..n n,arr,e.la.e
aeenle,! her own .separate property, unless oth.^rwis." .shown, an.l she has a
,-i<d,t to all .liyi.len.ls ami protils arismj: thendrom. an.l to transler ttx
siui,.' with.iut th.' oncunence of h.'r husban.l
l!ut if a mairi.'.l woman shouM pureha-s.- such shares or stock- witn
h,., husban.ls ,„o„.'y, without his cmsent, the husbaml may procure an
ur.l.T fr..,„ th.' c.m,t to have su.h i„v,'stn„nts nr,.l .hvulends th.-re..l
transf.ri-.'d to him. ■ , i , , I'o
If als.,, a marri..l wo,„an ma.l.' such ...yestments wuh her husban. s
money, to .lefrau.l iiis civ.lit.,rs. such i„y.stme„ts i„ay U- toll.-wed by the
creditors an.l tiken to satisfy their claim-.
She is also entitled to hold as her own sep,i,..t- pn.perty all 1,,., . wii
earniii<,'s. wa<,'es, or income from any literary ..r artistic skill, an.l to
dispose of th(" same as lier own property. ., ,, , .„,.„;„, rv
In PriiK-.! hMwanl Isian.l she is not entitle.l to her own earnin-s
durinj; marria^re without a pn)tcction or.ler
IWtH Wife's Liability. A marrie.l woman is liable to the extent of
her property alter her marria<;e for the .Icbts she coutracte.l before
marriaire. an.l for all c.ntracts entore.l into or wrongs committed before
marriage, and all sums reeoy.Te.l against her for such contracts or cost
incnrriHl therefor are payable out oi her separate e.st^te. If she is a trade,
12«i
M.VKKrKI) WoMKS's l"Ut)l'E!(l\ Itli.llTS.
Hhu iM stil.jfot ti. til." Iwiikruptcy nr insDlv.ii.y laws tli- sjiiiii' ns a ««!*•>
WDiil'l U'." If she U'iuIh in y to her husbiui.i it litconiis an uHM.t of hm,
lui'l in case of his innolvency, in most of cumcs, nhe woul.l only taU her
divi.l.-n.l nftiT thf otht-r crt"'<litor.- for vmIii.iI.I.' .•oi.si.l.iution lia.l Ix-en
MuttliMl with.
.:M;«> The Husbands Liability. TIil^ hii.>,l.ana \s huhli; for th.-
.iuhlM ol !i;s witr iniiu.t. I'-.i una <i<<v all oontriicts unttT.'.! into iind wronjjn
coMtinitted by her U-foro inurriiiKt'. and lor \vron;,'H <'oniinitt..l t.y li.T afti-r
iiPirriM;;.' to'th.- extent of the property he ha.s come into po^.^eH.slon of
throiiu'h his wife. .... . .• i i i .
A huslrtind and wife may W- sued jointly in respeet ot any .siieli .lebt
or liahilitv cmtraeted or incurred by the wif.', as mentioned in pn-vious
naracniph l)Ut if the plaintilf fails to establish the husband s habihty in
resiH^ct to the prop.'i-tv he may have acquired thiv)ii;,'h his wife, the
husband will obtain judj,MnL-nl for the costs of defeiic.-, whatever may bo
tlie result of t»ie action against tlie wife. If the plaintiH' succeeds m
fstablishin;: the husbands liabilitv, he will obtain joint jud^'iiient aj,'ainst
tile husband persoiiallv, and a^iinst the wife ■> her wparate projierty,
and if the husbands liability does not extend u. .lie amount of tlir clami
i,r dniiKiu'i's. the residu.' will' lie against the wife's separate esiate.
:»0 Wife not Liable for Family Debt For instance, a wife
keopini'- l)oarders and biivinj,' ;;oods on credit for the -reneral family
expense does not render her s.-parate estate liable for the debts. The
huslmiid and the huslmnd's property only are liable. If the merchant
wishe.H to ren.ler the wife liable lu- must make the contract with her by
havint; her purchase in her own name, or to {ruarjintec the payment.
A married woman, however, engaged in business in her own name,
any goo.Is which her busoand .. <!er8 and she accepts are chargeable
agiiin'st her. the husband being merely an a;;ent.
:ni. Mortgage and Wife's Property. The hu.sband cannot
niorfage any good.s that belong to the wife, obtained either by puvcha.se
withli "r own mom y, or gifts from other persons. The wife need not sign
a chattel mortgage unless she owns part of the gooiis, and desires to
mortgage theui.
:t1'i What a Wife Cannot Mortgage A wife indorsing or
signing notes with her hu-band or entering into any other contract renders
liable whatever i)roi)ertv she has in possession at the time, or may ac(juire
afterwards except such "property a? she is " restraint.'d from anticipating."
Pvoiiertv /v.s7)v»ui''./ t'rt'm ,intuii>iil'>nn usually comes to a marrie<l woman
under the "terms" of a will, ami while she u -ts the income from it. the
principal cannot be dealt witli bv her in any way. Such restraint must
be clearly expres.sed in the instrument. It will not be implied bylaw.
Such property cannot 1).> c .iisidered an asset by her. that is to .«ay, she
cannot mortgage, or by ordinary contract bind it. nor will the law construe
it as an asse't or allow it to be seized in execution or otherwise.
In New Brunswick the Supreme Court in Kijuity may, by her consent,
if it believes it for lier beiietit, give order to bind her interest in any
property even though restrained from anticipating.
MAIUtlEli WOMEN S IMIOI'K.KTY Uli.llTS.
127
Newfomi-'himl allows such prDjierty to be liablf for law cohIm in suitM
l)i-<^uj{lit by li.i-silf ur iK-xt fiionil on hvr bobalf.
:n:i Order of Protection Any nmrrii'<l woman Imvin;; a il-'cn-e
furuliiimiu i.;,Miii>t l..r hu-Kiiii.l. ..r U'in;r for .my lr;:al cause sopanitpd
from iiim.' .kli.T tlin)ii;;li liin cniolly, insanity. impriM.inn.'nt m the
Pro\ incial I'miti-ntiarv or in u'l'ol f')r a oriminai utr.-neo , or wiios.' li-isband
wlio tliron;,'li bubitual .li inking' or j)rotli;.'aL-y, n.<;i<'('ts or rt-aisi-s to
support iu-i" nwiv obtain an onb-r ot protect ;on. .■ntithnj; luT to the
earnin;:s of Iht n'linor cbii-lron. .•ntirrly fr •.• from th.- .Icbts and ol)li<;ation8
of her husband and from under ids control.
When the married woman resides in a town or city where theie i.s a
Stiriendary or I'olice Ma^jistrate. the onler woul.l be obtained from hiin,
but when "there is no smli otiicer where she resides then the order wou.d
Im' given bv the Count V .ludjje.
()rder'<jf Protection may also be procured for her nwn .arnin-is and
f..rthe purpose of enjia;;inj,''in trade in those Provinces where siich orders
are rei|uiri i|.
:fJ4 Dower See Section :U 1.
:{<.'► Dying Intestate .See Section .')()7 for Laws of Iidieritance.
:j;«. Husband and Wife. The civil relationships are the sanv
iK'tween busi and and uife as between other pel-sons in connuunity.
The one may steal from or defraud the other, or be ynilty of crinnnal acts
toward eaeb other. In all eas.'s the injured party ha.n the siime redress
th.'V woidd have a^'ainst other persons for similar acts The husband
cannot sell the wife's projierty or that of the children which conies to tin in
personally by ^dft or otherwis.v Husband cainiot sell i,r mort;:;ii,'e wife's
furnitme, sifv.Tw.ire, or any other ;,'i)ods or property belonj^iiii,' solely to
her I'V ;.'d't I'V .uliei wi>e, unless she sifjns the Miort;;u;;e or assents to the
An agreenuul. or contract entered into by the wife with an<l for the
husband throu<;h </»'>r.s.s (force) or umlue intluence may be set a.'ide the
s;ime as concernin;,' other parties, but she nnist act promptly in repudiat-
in>' it as siK)n as free from the inrtuence.
Where a husband. throuj;b drink, violence, abusive lanpua<:e. or other
vicious conduct renders it impossible for the wife to live with him in
safety and hi>nor she can leave him, and such conduct is suHieienl ground
to sustain an action for alimony. Wives are foolish to be m iltreated by
either beatin<; or starving' by a drunken, worthless, vicious or vajrabond
of a husl.and'vvhen i.ur law.s' and co\n-ts have ilmiwu ai-.iund tle-m such
ainiile protection.
;{??. Business Relationship between husband and wife.
If a husband makes improvements on wifes ])roperty and .she dies
intestate he has no cl.dm on the estate for their value unless there was a
written a;;reeinent between them that he was to be paiil for such improve-
ments or To have an interest in the property to that extent: and rice
versa if the wife u.ses her money in impn^dng husband's projjeity under
similar lireuiristances.
(Of, MAUUIED women's I'KOI'KKTY RICHTS,
Where husbaixl au.l wife an- livin- . •parate, an.l tli-' huslmi.-l wishes
to inort^^aKc or sell his real estate witiiout the wife s s,(,M>ature ho may
obtain Tn order fro... the court lu.der tollow.uf; cnT.....sta,.ces : (1) If ht
wife is ii.sa..e a.i.l co..H.ie,l i.i an a-syluni. (2) It separate fro... hei hus-
ha...l unaer s.ich ciieumsta..ces ..s .lisentitie her to a ...iony_ l..it in Ijoth
cases while the husban.l ...ay sell or n.ort-a-e h>s lan.l ;• Ire.-d an. d.s-
c ar.'e<! f.o... a..x el.ti... of his wife for dower th..re.n, st. the court will
also m-ovi.le a n.'ethod by which the wife will be secu.e.l the nd.. „l her
dow.T. If the wife were livi..- separate under c.rcu...stance,s where her
co.id.ict .lisentitie herto.l.pw.r the., no pi-ov.sion woul.l be ni.ide l,j ti.e
cou.-t to reserve its V(tlw to her. , , • i i i . ,
Wife havin.; means, and the husban.l no.ie. and be...- a help es.s
invalid, she would be con.pelled to s.ipply hin. with the nee. ssar.es ot I.te.
\ husba.id advertisin;; in a newspaper that he will not be responsible
l-or ^o.h1s pn.chased by his wife on his credit after .late ot such a. ve. ise-
m.nt «..■ for her contracts) is not necessarily free from such liability
Th.- wife is n.vsu.ne.l to be con.petent t.. purchas.- neeessar.es lor herself
an.l fan.ilv, .....1 if sLe has bee., in the habit of so pu.-chas,n}X f.om n,er-
chants on'l.er h.isban.l s civ.lit, the notice in the newspaper will not relieve
the husban.l fro... liability nnle.s he c.u. show that the n.erchant had
knowled-'e of such a.lvertis-...e..l before the -oo.is w.re purchased 1 he
c.urts have ruled that • notice -iven in a newspaper not to tn.st the w.te
(with j:oo.1s purchased on the cr.dit ot her husband) is oi .... ithct .n
cases w'^b.'ie .lealers have not had knowledi,'e of it. , -.•
\ husban.l .l.sertin- his wife if he have means or an ine.m.e the w.te
may cho,>se bet wee., taking a., action for " Alimony " .i-a.nst Imn ; or she
mav take pr..cee.li..u's before a folic. Magistrate or two Justices of the
Peace undir tl..- ' i)es...te,l Wives Mait.tenan.e Act an.l procure an
onler not excee.lin- ?.-. per week for s,ip,,ort ot hers.- i an. children
For a wife to recover a jud-in.'nt for Alunony three thin-s must be
prove. I to tl... satisfaction of the court; (1) A L'^^al marnajj... (2) Ihe
leed of the wife. (:!. The deserti.m by the lu.sban. or his retu al to
support her. Therefore a lawful wife who is ... luv.l, not having' ....le-
penllent means of support, an.l v :.ere husban.l '^.-'-'^ l'^'' ""-j;;";;";. (I
support her. may obtain a .lecree from the court U,v ahnjonv wh.ch will
liK I su... in proVorti.,.. to the pr„perty and means ol the husban.l
Th,. custc.'.y ..f the voun-er children when husban. and wi e sepa-
ratals entirely h. the .liscretion of the court l...fore who.., "I'l'l'Cjit.on
may be ma.le:havi,.j; re;:ar.l t.. the weltare ol the children. After lear-
in.;^the facts . r the cas,. if the curt or judye is o the opinion tluit either
the ...other or the fath.r woul.l b.- a ...ore suitable cust.-lian ot the chil-
dren thev will be -iv,... Uj such parent, without rej:a.-.l to a-e or sex
The Onu'irio Statute says: "The court may ...ake such o.'.ler is the court
or jndfie sees tit repuvlinf; the custo.ly ot the ...tant an.l the r.^d.t ..
acce,ss1h..Teto by either parent, havin^r ,ejrard to the w.d are o the ...tan
an.l to the c.mduct of the parents, and Uy the wishes ol the mother, is well
as of the father. . , , -^ 1 1 r
As a .'eneral rule, however, if the wite is .leeme-l a suitable fruaidian
.he will Ix" -riven the custody of children nn.ler seven years of age, and
the husban.r. if .leem-.l a proper ;;uardian, those over that aj,'.'.
l,AXI>Ln«n AND TENANT.
129
CHAFTKK XVI.
l.ANhLOkl) AM) TI:NANT.
:S;H. The relation subsistiii",' Vj«-t\vcfn liin<llord and tenant is that
which suhsists hetween the owner of honses and lands and the person to
whom he jjrants the use of them for a specified time for a stipulated
coiisi.leratioM. called rait. In the law books the landlord is called the
/-'.<!«,/• and the tenant the les^,'e. The same class of persons who can
act in re<,'ard to notes and bills can contract as re{,'ards landlord and
It: that Is, those of the full at,'e of twenty-one years and of sound
contn
tcnan
niin<
In this chapter the law of Landlord and Tenant, as applicable to
Ontario, will be given in each sectiun first, but in every case where the
other Provinces or Newfoundland ditler the change will I* given for such
I'mvinc.
:»}». Lease is the name given to the contract between landlord and
tenant. It mav be either oral, or written, or under seal. Oral, verbal and
parole all mean the same i.iing, viz., by word of mouth. In this chapter,
verh,d and oral will be the terms employed as they are in common use.
A lea.se mav be for '• life " either of the landlord or the tenant, or it
may be for any 'number of weeks, months or years, or it may be "at will."
Ninety-nine years is the longest term for which a leivse m Canada can be
made. ,
It must lie remembered that a lea.se is simply the afirfmrnt, and not
the paper on which it is written. A lease may l)e either written or only
verbal. If written it must lie under seal to be valid, that is by Deed.
The lea.se should stale all the conditions and agreements, fur oral
promi.scs do not avail much in law where there is a written inslrumeiit
The tenant might .sue tht- landlord on a separate and distinct verbal
agreement, that the house should have certain things done by the land-
lord in consideration of the tenancy being created by the written lease,
but it should be in the lease to make it umiuestionable.
There must be something of a transfer of possession to create a lease.
A person working a farm on shares and having the exclusive pos.session
liecomes a tenant; but if he were to work it on shares, each party, tor
instance, furnishing part nf the seed and dividing the profits, Inith parties
being eii'ially in possession, there is ii.i lease, and the owner, -n case the
laborer had agreed to pay a certain amount of money, could not distrain
for it.
:W«. Term of Lease. In all the Provinces an oral lea.se for one year
ami under is valic', and the lessor may bring action and recover the rent
though the lessee 'las not entered.
Oral leases fjr a term not exceeding three year- from tlie making
thereuf. when completed by entry and payment of rent, are valid.
But an oral lease, or a writing not under seal, to lease premises for
thne years from a/((YuJ-i" time, thus makiiw the tenancy last for more
than three years from date of makiiij.', is vuid.
9
Jf*.'
180
LAXKI.OIU) AND lEXAST.
\n oral loas... or a loase in writinj; i.ot uu.lor s.al (over on.> year), tor
a tornJ not oxcvdin, three yoars. where .he tenant has no e„ter...up.^
the v.n-,nises, will not support an action to con.p-1 the ^^''"^ '» \", ^ l"^^ "/^
,,ivrent.n.,r the lan^llonl to j;ive pissessum Where the sea .. n t
a t tehe'l the writin- is only an " a-reen, .t " for the term specihe.l. But
,,"l verbal ;^..u.^ut to lease cannot he enforced so as to ac,,u.re
,osse ss"l!n .>r oolleot"rent, still it n,ay U- ground upon winch an action for
danuves could be maintained for breach of a^Teeinent. , i . ;„
A lease for a term exceeding three years and up 'o seven must e n
writing and under seal, otherwise in < hitar.o >ind Nev «•■" '^^^ '^l^ *
•ould"be held a "tenancy at will" only. In P.nt.sh Loluinh.^ N va
.Scotia and North- West Territories they must also he registered. N inetj -
nine years is lon<:est term of lea.se. . . i ,„ i
A le>use for Over seven years must he ni writinji, under .seal and
reconled If not re;,dsteved a person huyin^^ the property without notice
7^L lease coul.l. W ,ivin. six i.ontl.' le^al - ^ -^ l^^*; ^ ^Pj;::^ ,,
\ tenancy " from year to year, so l.tn^ as both shall pkas. . ma> oe
terminated at'end of first ye..r by givinj; six months ""t'Ce.
Hut where it reads "'one year certain and so on from > ^' "^ ^f, >tar
it will be for two years at least and can-'ut l>e terminated at end of hrst
year, except by mutual consent.
llH'i Rent When Payable. Kent may be j.ayable in any way
..,.. r:.p.m e th... .,. advance .r at the end of the term. It nii^ht be a
7,„tllv tenancy, an-l yet the rent payable weekly : or a yearly tenan.x
v 1 . e reii p. yabl.-' monthly or '.,«arterly. Whatever the a«reeinent
may ..-or payment, the tenant has the whole day on which the rent al
due in which t"o pay it. and no expense can be incurred until tire da> alter
the rent is due.
:is:{ Lease by Minors, Idiots. Lunatics, etc. A lease by a minor
is not void but v.ndable. H.' cannot void a until he comes of ajre, neither
""" tea^^'to minors are not absolutely void, but may be voided when
, 1- n ,. Tf the rent falls due after they attain th.'ir majority
!i:;r;hrii 'k." idi:;;"^ l ^.^^ they wni .. nabie .. the r^u.
Durin' their minority they can contract for necessary lodginf,^. accord-
imr tcrtheir station in life, aii.l are liable for same.
'"" idilL and lunatics may also make leases that are necessary,
cannot be made to take a house that is unnecessary if the l.,ndlo,.|
aware of their comlition and took advantage ot it. ,11...
In Manitoba a habitual drunkard cannot make a valid lea»e^
Ontario and the other Provinces if he were so drunk as not to be capable
of knowliig that he was making a lease, he may yoid ,t when he becomes
sober, or he may ratify it and mak.> it binding.
:W4 "Joint Tenants" is simply aiiuther name for joint owners of
a bnildi.e' or „th. r property, and •' tenants in common means owne.^ in
com lu Tmd are in Lme ivspects similar to a partnership. To le-v-se t a
iZ proP'Tty re,,uires the con..ent of b,tli, but either (me '"-^y ^ 'thou
Scur^nce of tl e other give a legal notice to vacate, may also distrain
but
landlord was
In
I.AXDI.nnn AND TENANT.
131
for his share of overdue rent, or iniiy di'mnnii a liijjher rout, or require it
to Imj paid weekly, or monthly, or in advance; of course, in each case,
beinj; reijuired to give a legal notice.
rWS. Farm Rent In the ahsei-ce of an express agrecnieiil, if a
leiusc uf t'iinii iir i,'iu-.|>n l.-niiinates otherwise than by the death or tiank-
ruptcy of the liunllord, the tenant in giving up pt i.s.se.ssion on his own
account must leave the growing crops as well. But if »he lea.se were of
an unc -rtain iluration and witlnnit any fault of the tenant it terminates
unexpectedly, then in that ease the tenant has the l.-gal right to harvest
the crops already .sown. Hut crops .sown after a legal notice to ([uit had
been received the tenant would not have a right to harvest and take
away. If, however, the landlord agrees to allow a tenant to remain after
his lea.se expires and on the strength <if that agreement puts in a crop he
will l)e nllowe(l to reap it.
liHii. Farm on Shares Whatever the agreement may l)e will hold,
and care should be taken that every detail shouKl he clearly understood
as to division of crops from year to year, disjHjsition of straw, use of tire-
wood and timber, etc. For instance,' whatever division of crops is agreed
UfMrn will continue through the terms of the tenancy, so that if the owner
finds the seed and takes a specified sliare it remains the same through
each yeur, although part of the land, and perhaps the larger part, might
be a hay crop, which di'l not need seed after first year.
A pers(m working a farm on shares and having the exclusive possess-
ion l)ec< lines a tenant and subject to the laws of Landlord and Tenant.
But if he were to work it on shares and each party furnishing a part of
the seed and dividing the profits, l)oth parties thereby being •qiially in
" pos.session," there is no /cit."'', and the owner in Ciuse the . "jrer hail
agreecj to pay a certain amount in money could not dustrain for it.
:{>s; Mortgage and Tenant. If a lea.se is given prior to a mort-
gage, the mortgagee takes subject to the les.see, and vice ifrsa if the
mortgage is giv^n prior to the lease, that is, a lease given after a
mortgage was placed on the property, is .subject to the mortgage, and if
the nTorttragi' falls due and is not paid, the mortgagee can dispossess the
tenant and even t^ike the growing crop.s. Of course, the tenant would have
a cause of action against the laiullord, hut a landlord who had lost the
protHTiv uiid.T a mortir.ige would not be likely to be in a financial position
that the tenant enuld recover any money
from him bv wav of damages.
:WH Tenants Privileges. The execution of the lease vests the
tenant with all tl.f r;ght- ir.cidrnt to possession. He has tin- exclusive
use of the property, and exercises all the rights of the owner for the time
being, und may even eject the landlord shoul<l he trespass.
If a lease of a farm contained no reservation of a crop of wheat
growing at the time of executing the lease, the tenant would be entitled
to it.
He has a right to a legal notice to (piit from the landlord it Ins lease
is for an uncertain time, or if he continues in possession and becomes a
tenant from " vear to year."
I
132
LANDLOHI) A'
SANT.
Also t.. the crops that are on the _i-oui..l if his tenancy is terminated
unexrectedlv iiiul not throu<ih his fault. , i •
Also to"sul.lrt the premises or a portion of them to others unless his
contract prohibits it.
Ihe tenant in case of tire, is free from rent until the prcnuses are
a.'ain ma.ie tit f.jr the purpo.ses of the lessee : and no proceedm.u's can In-
connnenced for the recovery of any such rent until the prenuses are
rebuilt or made fit for the purposes of the lessee.
:W9 Tenant's Obligations and Liabilities. He is liable for pay-
nuntof the n-nt Hf,'r.-,d iq.oii , al-o for any voluntary or {.ermissive
injury to the property, and for the performance of provisions and agree-
ments in his contract. .
A tenant on a farm must, unless otherwise agreed up(jn, repair lences,
and is liable to adjoining landowners for any damage oeeasioiied by non-
reiiair. , , i . »i
In the Short Forms of Lease now m general u.se throughout tiie
countrv the term " and to repair," has a very broa.l meaning, so much so,
in fact" that unless modified a tenant may be compelled to rebuild m case
of tire Also the clau.se. "to leave the premises in good repair must be
modified in the same manner. This is best done in the tollowing. or
similar language . " Ordinary wear and tear, and accidents by hre and
tempest exe'epted." A tenant must, even in this case, leave the prenuses
in as good repair as he found them, " ordinary wear and tear excepted.
(See Section 'M(j.)
:{!»«. Tenant and Taxes. In all ordinary written leases the land-
lord mu-'t pay the taxes, uide.ss an express j.rovision is made to the
contrarv. , ■ i i- i
If "the tenant is not asses.sed his gofxls cannot l)e seized lor taxes and
he .should not pav them, for if a tenant " voluntarily " pays taxes which
he is not obliged'to pav he cannot deduct the amount from the rent. Biit
if the tenant is assess'ed and his name on ihe collectors' roll his goods
are liable and may be seized (although the agreement may be that the
landlord is to pay taxes) in whieh case he sliouM pay the tax.'s b.'fore
seizure and then demand the amount from the landlorl, or he may l.gally
deduct it from the rent. , , n i
If a tenant a<'rees to pay taxes and does not do so, th.> laiiillonl may
8>:e for the amount, and if he wi.shes to do so he is entitl-d at tli- same
time to obtain an order from the Court to evict the tenant for non-p.r-
formance of agreement
If the landlord agrees to pay taxes or water rates and does not do so,
and the tenant is compelled to pay them, he can deduct the amount from
the rent.
:;t»l The Landlord s Covenant. The only covenant the landlord
makes is to give the tenant .|uiet enjoyment. If evicted by another
person, who lias a prior or better claim to the property, the tenant may
recover from the landlord any damages that he may siustain.
The tenant must look after the .sanitary conditions of the house
I.ANDUJUI) AMI TEVANT.
133
I
l>eforo hf eiU.Ts, for lu- caimut avoi.l piiyiuK rent i-vvn though the house
woiiKl l.f unsiif.- to occupy, uiiK^ss h.- had a special guarantee Irom the
l.iiicllonl that the sanitary conditions \\<ix' t;oiMl.
:Wi Misrepresentation of Landlord if a houso wore leasid upon
the distinct assurance of tla- landlord that it was in a good sanitary con-
dition and it subs.Miuuntlv turned out that the landlord's stat.'nient was
untru.'. the tenant could move out and refuse to pay rent. 1 he landionl
would also be liable in an action for damages. The same would l>e true in
re.-anl to the a.ssurance of the landland that there were no vermin in the
lio'iise. if it subsequently turned out to be untrue, the tenant could move
out and iifuse to pay rent.
lliKl Frozen Water Pipes. If, instead of the proviso in section
3!)() the lease provides that the ten.int shall make all repairs, then
in that ca.se the tenant would be liable for the repairs to frozen water
pipes Hut if there is no written agreement or leiwe then the i|Uestion ot
liability for such repairs will deii.Mid entirely upon which party was
" responsible for the damage " occurring. If the freezing and bursting of
the pipes Wiis caused by the improper construction of the house, or by die
ne.'li-'ence on the part of the landlord or his agent, ami not due to any
act'or ne-'lect on the part of the tenant, then the landlord will be liable
for the cost of repairs. Hut if the freezing of the pipes was caused by
ne.digencc of the tenant, then he, and not the landlord, will be liable tor
th? repairs. The plumber, however, must look to the party who hire.l
him for the paymenl .if his bill.
:i»4. Tenant Damaging Property. There is an implied covenant
in all leas-s v.ili.il or writt.n, that the tenant will take rea.sonable care
of the premises and make all breakages good, an-l deliver the property up
at .■xpirati.m of lease in as good condition, save "ordinary wear and tear,
as when he took it. Therefore, if the tenant damages the property the
landionl may sue and obtain judgment. He has no hen, however on the
tenants goods for the damage, and if he were to retain an\ article lor such
nurposelhe tenant could replevy it an.l recover damages.
Also if the tenant circulated a false report that the premises were un-
SJinitary and the landlord thereby surtered loss through failure to .sell or
lease the properlv, tli.- tenant would be liable in an ..ction for damages,
providing the report was positively untnie and the landlord could j^rove
actual loss thereby.
:il>5. Repairs. The relationship between landlord and tenant does
not bind either one to make rei.airs. It is entirely a matter of aurremntt.
If the landionl has not .agreed to make repairs he cannot be compelled to
do so during the term of the lease. The tenrnt cannot make the repairs,
no matter lu.w much thev an- needed, and deduct the cost from the n'lit ;
and if he moves out in conseinunce of the bad condition ot the prennsea
he must still pay rent until his lease exuin^s, even though, the premises
are in an unsanitiirv condition. It must be nM.iei.ibered that everything
depends upon the agreement. If there is nothing in the lea.se (or bargain)
bin.ling either party to make repairs, then neither party can compel the
other to make t!e-in.
n4
.ANlH.nHll AM> I'llNAST.
Repairs neci'SsitnU'il l>y imturiil decay tlic liunlloril is "supposed" to
make, alsK to keep in repair the roof, outside iloor.s and locks; but all
breaka^'es are to lie made j,'(iixl by the tenant. If, however, there is no
a'Meciiieiit. either verbal or written, for the landlord to keep the premises
in 11 tit and proper condition for habitation, or in a healthy condition, the
tenant cannot compel such repairs to be made even though the house
l«c()iiies \ininhabitable. If the tenant moves out Imfore the expiration of
hi.s lease he will still be reipiireil to pay rent, unless tlie landlord ■ acce]its
possession " by taking tlie key or commencing repairs, or rents the place
to another.
SJM» The Contract to lease and pay rent is entirely separate and
distinct from the ciiitract to repairer tnake improvements; thendore the
af'reeraent .should be definitely made at first, and either be in writing or
witnessed. If in the lease, either verbal or written, the lan.ilord agrees
to make repairs or certain repair.s, and .subsecjuently refuses or neglects to
do so, the tenant should notify the landlord of the repairs to be made,
and tl'.at in his default in making them within a certJiin time (give date),
lie wil' (Jo so, or cau.se them to be done. He can then make the repairs,
should the landlord fail to do .so within the time named in the notice,
and either sue the landlord for the amount oi deduct it from the rent.
The breach of a covenant to repair also gives the injured )>arty a right of
action fo!- the damages snstaineil. or he may vacate the prenii.ses.
It m>ist be remendiered, however, that in the default of the landloril
to make the repairs agreed upon the tenant cannot do them and then
deduct the amount from the rent unless he has given the notice and
demand mentioned above, or unless it was agreed that he should do so.
If the agreement to repair is conditional on f)rom]tt payment of rent,
then falling in arrears of rent would relieve the landlord from making
tlie repairs! But if it were not .so conditional then thi' fact of the tenant
falling in arrears of rent would not relieve the l;ii:
to repair.
Ii the payment of retit is conditional 'ii the 1
repaii-s then the tenant is relieved from payment
are completed as per agreement.
Unless the lease recjuires the tenant to repair
injuries done to the property, which were not caused by his own acts or
negligence, or tho.se of his agents.
Persons making rej)airs can only look to the person who ordered for
cost of labor an<l material used.
Written lenses usually contain a provi.so that the "tenant shall
repair" (reasonable wear a'nd tear, accidents by tire, lightning, and tem-
pest only excepted . Such a proviso would include tlie renewing and
repairing of plumbing, furnace ami pipes, leaking roof and broken door
locks.
The agreement to make repairs by either j.arty would simply be
"repairs," and not for a new window or jiartition, or any otli. r ehanL'e in
the building itself.
:M>7. Tenant Moving Out. A tenant can move out of premises any
time he desires to do so before the t'.-nancy exj)ires if there is no r^iit due
<llorcl from his covenant
.uidloni making cei'tain
of rent until the repairs
he will not be liable for
lAXDI-OIlI) AND TKSAST.
135
an.l the la.ullunl cunnot sl.-i. tl.- -oals. Hut if tl.e.v is .my rent -lue the
anaiorcl cut. prevent the removal of the -rKxis (except the exemptions)
I'ntil the arrears of rent are pai.l If no rent is yet .hie the Roo.ls cannot
be St opped even though the rent n>ij.'ht fall -lue the next .lay.
But a tenant movinj: -ml before tlie expiration ot his ease is .t,l
Hai.le for the stipulated rent until the lease expires: unless the landlonl
accepts the premises, thus releasing him ; -r uul.ss another unant, accept-
able to the lamllord, enters, in which case the hrst tenant will only he
liable for rent until the new tenant takes possession, providing he pa\8
the same rent, if not, the deficiency may Ix- recovere.l irom lirs ten,mt.
If there is nothin-: in the lease forbid.iinf; the tenant to subdet. the land-
lord will be compelled to .'ither accept the new tenant or to receive the
niemisL's anil fri'c the tenant.
^ Where the tenant at the re,,uest of the la.uUord K.ves up possession
of the property before t!,.. expiration of the lease rent «='">';;:« "| ;'\";.^'"'^'
of trivinK up possession, if there is no afrrcment ^..In« a .litleient dat. .
" 'WH Tenant's Fixtures. The Ontario Statute reads, and the same
would'api.iv in all the i'mvinees : -The Lessee ">ay onor P"'";^ t^ | ;''
..xpirutioi. of the t-rm. remove and carry away all fixtures, httin-.s
niaehinerv or other articles upon the premises, which are in the nature ot
trade or tenant's fixtures, or which were brou-ht upon the premises by
the l.-ssee. But he shall make t;<"'d any damage to the j.remises occasione.j
bv such removal." » .1 • , »i.„* lu
Thev must be somethin;; of a personal character. Anythinf; tliat is
ariixed tG the freehold so th.it it cannot be separated without doinfj seri-
ous dama-.' to the freehold liecomes a part of it.
AnvthiiK' that is sunk into the ground, as .1 well, trees, building ot
stone ..r brick are the same as the soil itself, and theretore, a part ot the
freehold. Hut buildiu-s placed on stone Ijoulders, or po.st.s. or plate, aie
fixtures and mav be removed without injury to th.- soil.
The machinerv of a manufactory is also a fixture, and can he
remove.1. Temporary partitions, counters, shelvin-, etc.. placed in the
buildin.' by the tenant wouM be tenants fixtures and could be removed,
but doors and vindows. likewise permanent partitions could not l-e
removed as they .K-com-j part of tlie bmldmg proper.
T<. determine in all cases what are " fixtures _ is one of the n>"^t d. -
Hcult ..uestions in connection with the law of landlonl and tenant Much
depends on the a^nv.nunt. somethinj; on the nature '"^^\ ''^"« ' ^' ^''•'
teiiaucv. and the kind of business carried on by the tenant on the piem-
ises so' that what un.ler certain eiicumstanees could be removed *« I.eii -
teiiiint's fixtures would under diti'ereiit eireumslances 1»- a criminal act to
remove them. For instance, if a tenant dug a well ami put a pump in .
and use the .same for a year or two, he could not then when m..v.n^ out
take awav the pump or fill up the well without bi.coimn- liable m an
action for dama-les as "committing wa,ste," unless he had that aRreemeut
with the landlonl. But if the tenant were enpiged in a business that
re.,uire.l the well an-l pump to conduct it. they w.iuld then Wcome a part
of the machi..erv and be - tra-le fixtures." When leaving the pn'-mses he
could remove the pump, an-l to save himself from liability tor accidents
could till up the well The preeedin.; illustrations should be sufiicient to
13G
LAXDLiiRU AXn TENANT.
ciiabl'' any person in a nnntial state id" niinil to clotiTiniuc what would in
each ciusf Ix- a "tenant's tixture" anci capahle of ri'Miovai.
When- there is ilouht as to whether a eertain HxMiro uhuulii !«.• re-
ijarileil as a fixture or he hei<l as jmrt of the freehoM, le pre8unij)tioii is
always in favor of the freeliolil.
It is an nxiuiu in taw " that the exjjression of one tliinj,' is an omiss-
ion of all the rest." ami for this reason if anything is mentioned in the
lease as a fixture, other thiny:s, thou;;li of a kindred natiu-e, would he
sujp|iosed to be omitteil intentionally, and therefore remain a part of tiie
freeholil.
A tiMiant claimin;; anythintj as a tixture must remove tin- article
pri)ni]itly or make it known that he claims it, otherwise he waives his
riyht to it.
There are • tenant's fixtures,' "landlord's fixtures," " trade fixtures''
and '• immovable li.xtures," hut a reasonable rej^ani to the circumstances
in eacli particular case, coupletl with a sense of natural justice, will always
ileteriiiine the individual rij^hts involved.
'.tWt Holding Over. The mere fact of a tenant remaininj; in
jK).s,se.ssion after his lea.se expires, does not of itsi-lf constitute a new
tenancy or bind either party to consent to a new term. There must be
rent paid, or .somelhinj,' else done by wiiich a new tenancy is im]ilied, or
the tenant is only liable to pay for the time actually occupied, which is
not called rent, but for " use and occupation :" and in sucli case where the
lea.se has expired and the tenant reniain.s in possession " without payin<;
rent," he need not tlien jjive a notice bid'ore moving out. but may move at
any time, and will bi- liable to pay " for use and occupation " u]) to the time
of vaeatin;; the j>remises, ami ]Ki.ssibly for dama;,'es, for retainin;; possessi(5n
after the tenancy expireil, ancl certainly wouKl be liabl.- for dama;,'es if the
landlord had ilemanded possession andcoulil prove that he hail suffered loss
by suchoviTlioldiii;;. Duriiii; this time of overholdit;;,' the landlord cannot
distrain for the usual rent as there is no tenancy, but he can sue for " use
and occupation " and recover what woul'l be a reasonable rent.
40<> New Tenancy by Implication Where a tenancy for one or
more yiais ■xpiris .■iiid tin- triiaiit !'• mains in possession, payinj^ the same
rent without any new ai^reement briiiif made, it bi-eomes a "yearly
tenancy " by implication of law and the i)resum]ition is that the terms of
the former lipase will hold jrood. Any time afterw.ards that either party
wislies to terminate it the refjular six months' notice would be recpiired.
A tenancy from " year to year " is ordinarily implied by the payment and
acceptance of rent, and such implication can only be prevented by one or
the other of the parties interested i;ivin<; .satisfactory j)roof lliat it was
paid IT I'rocivrd liy mist;ik.', "r \iih.ii -.oni" iincjitiun it a^Teement.
401 Landlord and other Creditors Rights. Where there are
other creditoi-s, the landlord can only recover, prior to them, for one year's
rent. After that he must take his .share ratably with the rest.
As far as distress in concerned, where there are no other creditors, he
may di.strain for six years' rent. After that he has a further remedy bj-
way of action (or suit), and this action may be brou;,'lil any time within
twenty years on i. leaise uiidi-r .se.il. but not on a verbal lease.
I.ANUl.Oltl) AND TKXANT
137
Ki'Ut caiinut W sued ur distriiiiio'l for until it is .lue, even ilioujjh the
tenant may Im' leuvin;; tlie premises. If the teiiiuit were leavin;; the
country, with the intent to defriunl, th.- jfcxxis could he attacheii. (See
Section .')14.)
if the tenant removes i,'oods frauilulently and cliindistiiiely tlie land-
lord may follow for thirty days and di.strain ; otherwise he must distrain
on the ju'emisos.
The a.H.si^rnnH'nt of a les.see (t. nant) cancels tin- lea.se. In ca.se of the
assignment of the lessee the landlord has preferential claim for rent for
one year last previous to, and three months followin;.; the execution of
such as,si;,aniient, and thereafter so lonj; a.s the a.ssignee shall retain pos-
session of the premises.
40*i. Arrears of Rent Wliere rent is iu arrears the landlord has
several riimdiis llr may sue for the amount the .same as for any other
debt, or he may distrain for th,- amount due. or he may, after making a
demand for payment, enter an act of ejectment, or he may retake posses-
sion as per following .section.
40IJ Retaking Possession. The laws of Ijindlord and Tenant
univeisaily alliiw tiie l.iiidlMiii to n-take possession of the premises upon
a breach "of the covenants, and the Untiiriu statutes, where the tenant
makes default in [layment of rent, .says : "There shall 1j«' implieil in every
demise an agreement that if the rent, or any part thereof, shall remain
ui.paiil for hfteen days after the day on which the .same ought to have
been paid, although no fornuil demand shall have been made therefor, it
shall be lawful for the lamllord to enter u]ion tlie demi.sed premises, or any
part thereof, and to repossess and enjoy the same as of his former estate."
Of course, where a tenant would be occupying a dwelling-house the land-
lord couM not take po.ssession until he disjjossessed the tenant, but for
Itnd or for buildings not occupied, peaceable pos.session could be taken
witlunit evicting the ttMian*-. In I'victing a tenant it is neerssary to jiro-
cure .-m order of eviction *"' )m a court, and then th^' sluritl'or b.iiliti' may
put the tenant's goods oi. le street, but tiie landlord cannot himself do so
or go on the premi.ses for such purpose. Three things are nece.s.sary for the
landlord to show in order to prooire an order of eviction. (1) That the
rent is past due. (2) That a proper demand has been maile. (3) That it
has not l»een paid. In all ca.ses where the lea.se gives the landlord the
right to re enter for tion-paj-ment of rent he may then, upon default, either
re-enter, if convenient, or bring an action to evict. If there is no agree-
niint, then the landlord must Hrst make a legal demand for the overdue
rent before taking proceedings.
404 Raising the Rent- Tlie landlord cannot raise the rent nnTely
bv giving till' ti-n.uit :x written notice tliat at such a time the rent will be
increased ; such notice amounts to nothing. The landlord cannot raise the
rent or change the agreement in any other way without tin- assent of the
tenant, any more than the tenant can lower the rent withijut tlii- lan>llord's
consent. The notice must be to vacate, that is, order the tenant out, thus
emiiiig the tenancy. Then after thai is done he may give the notice for
an advance in r.jiit, or th'' two notices inav be given at the same time. If
l.-js
I.ANKI.HUM AND TKXANT.
tlie tuimiit tlien ivmaiiiH in iw isses.sioii after his li-ase i-xpires la- tlicrcby
tiicitly a>;ri-i's l<i pay tin/ hif^lu-r rent aii<l will Ijt- iMiiuni to 'lu no.
AJM), wlicri' a lease lias expired and the tenant remains in jx)ssession
without a new a<,'reenient, thus U-coniin;; a "tenant at will," the landlonl
may, iK-t'ore receivinj; any rent, f^ive notice of raisin^j the rent, and the
tenant in that cast' inii.st either accept the ti-rni.s ami pay hi;;her rent or
niovi' int. In this case the tenant is not entitled to a notice to vacate
because his lecjal ri^ht to occupy the jiremises has already expired. A
notice of raising; the rent given previ'ius to, or U]>on the day of expiry of
a lea.se. need not In- accompanied hy a notice to vacate.
Where a landlonl thus denumds a hif^her rent, the tenant is not at
lilierty to move out in coiisenuence ; hut if he desires to move (JUt and the
landlord does not gi\e his consent to cancel the lea.se, the tenant must f;ive
the h i^'al notice to terminate his tenancy.
40.'». Notice to Quit, or to vacate, shouM \»' clear anil distinct, with
no conditions or pi'ovisos. If any " provi.sos " are desir'd to stated
they may he j;iven in an ordinary letter, which may accompany tl..: n )tice,
hut thi' notice itself must not contain any conditions.
If there is no ajjreement as to the kind of notice to !«■ rjiven to ipiit,
then the lepil notice is re(|uired, hut if there is an ajjreemetit. that will
hold. If the a;.'''eenient .says "at any time." or "thirty days,'' or " three
months,'" etc., then the party j,'ivni}j it is released from pvin;; the
• statutory notice."
Ill ca.se of a yearly tenancy, six clear cah'ndar months' notice must be
i^iven t(j ijuit, unle.ss there is special a;,'reeiiieiit tixiii;; a diH'ereiit time.
Uelitin;; by the ijUarter, three nioiiths' notice ; hy the month, one
month's notice : by the week, one week's notice.
In New Brunswick and Nova Scotia tlie yearly tenancy requires
only three months' notice; a (|uarter or month, one month's notice; and a
Week, one week's notice.
It must Im- boriu' in mind that this notice to quit cannot be yiven at
random, but must lie i^iven .so that the "month," or " (|uarter," or " six
months" will terminate with the termination of the lea.se. For instance,
in case of a iiioiitlily tenancy which expin-s May 1st, the notice to quit
shoulil be iriveii not later than .March ;}lst, in mler to leave a "cle.ir
month." N'(jtice. too, that a " i^ood lepil notice" cannot be ;,n von two or
three months ahead of time, but must be (jiven before the end (jf the
month to terminate with the end of the succeedin;; month, as in previous
.sentence. The same caution must lie rememtx;red in rei,'ard to a (juarterly
or a yearly tenancy.
Where property is leased for a definite time, the lease expires at that
date, and neither party need ffive the other notice to terminate it or to
vacate. The tenant may then fjo out. or the landlord may lease the
property to another party. But where this firsi period has "been passed
and the tenant stiil remains in possession, and pays rent another teii.uicy
is cr.ated. and then, after that, when he wishes to v.acate. or the landlonl
<lesires him to vacate, a le;;al notice must be <jiven.
In rentinj; property there shouM be a clear undirstanciini; wiirtlur
it is for a month or year only ( in which ca.se no notice to vacate is needed),
or whether it is a monthly or yearly tenancy, in which cjvse a letral notice
I.AS'III.OUI) AND TKXANT.
13!)
to viicutc is iiccfHSiiry, as tlien- is uu time fixeil I'ur thu tfriiiiiiiitiini ot" tin-
tenancy, hence the necessity of a notice.
A notice to (|Hite, ;;i\en eitluT l>y the lamUonl or tennnt.shouM l)e in
u'ritiit;/. An orul notice is siitlirient hnt it is lietter to yive the notice in
writiii;;, iiml keeping; ii cofiy of it witli n nienioruiichnii r)f tlie date nnrl
iiiunner of service <'n<lorseil on it. An oniiimry letter contiiiniiij; the fiiets,
himdeil to the other jmrty. or sent by mail, will answer us well as a formal
notice, n copy iH'inj; reserved.
Notice to ipiit may tx- {^iveii hy the n>;ent as well a.s the principal;
but an iii^fut cannot a])i)oint an a{;ent to j,'ive notice.
It is always Ix-tter that the notice to <|uit should I m' .served personally
upon the tenant, or landlord i'ii.s the ca.se may b.-), but where this cannot
lie done it may bi* serveil up<in the wife, or servant, or <jrown up child at
the residence of the party to Im- served.
400. Form of Notice by Landlord.
Plea.se take notice that you an- iiereby recjuired to surrender and
deliver up pos.session of the house anil lot known as No. 4 .James .street,
in the villa;,'e of .Men itton, which you now hold of me; and to remove
therefrom on the fust d.iy of Juui- next jiursuant to the provisions of the
statute relutiiij; to the riijhts and <luties of landlord and tenant.
Dated this 2!tth day of April, 1!M)(). Yours truly,
To WaI.TKI! \Vr.NTKU.s"
{Toifnit).
AWi. Notice to Quit by Tenant
1 ii'Tehy liivf you niitiee that, <mi tin
i|uit and deliver up r)os.sessioii of the p;-eini.scs 1 now occupy as tenant,
known as house and lot No. 4 .lames street, in the Villai;e of .AIiTrilton.
Dat.-.l this 29tli day of April, IHOO. Yours truly.
Tm .1 \Mi;i, S-MITII " WaI.TKH WiNTER.S
i Landlord). (Tiu(iut).
44>M Notice to Quit not Acted upon. Tpon the expiration of a
notice to c|uit iluly •^]\r]\ Ky either party the tenancy cea.ses. and unle.s.s
a fresh tenancy be afterwards created the landlord cannot di.strain for
subseqtieiit rent, notwithstanding; the tenant eontinues in possfission for a
year or more after the ex})iration of the notice.
If the tenant does not vacate after a lef;al notice to that etlect the
landlord may either evict him under the " Overholding Tenants' Act," or
brinj; an action of ejectment bj- an ordinary writ of summons, or may
double the rent as he thinks best. If the tenant is evicted he will have
to pay the costs as well as arrears of rent. The exemptions cannot be
taken for costs.
And where a tenant holds on after the expiration of a notice to .piit
the landlord is entitled to recover by way of suit, the rea.sonable dama<;es
and costK sustained by him in an action at the suit of a j)arty to whom he
had contracted to let the prenuses.
401*. Doubling- the Rent or Evicting. 11' the tenant does not
vacate the premises after his lea.se expires, and demand lor rent and
notice to (juit has been ^iven, the landlord may double the rent by giving
.James Smith
(lAimllonl).
first dav of .June next. I shall
un
I.ANOI.oim AND TENANT.
thf tcimnt iiDtic in wrifiiijj to tliiit •■rtift; or the tenant mny \hs evictiil
unilcr tin.' • ()viTliuli|iii;; 'IVimiUs' Act " Itj- ohtuiniiig mi order from the
County Juilj;''
410 Notice ClaiminK Double Rent.
|. \\ WiNTKits .St. (.'iitliiiriiii',-<. < »iit
1 lirr»'l)y j,'ivf you notice thiit if you do not •ieliver up J)o^»«e.s,siotl of
the liouse mill preniiwH situate No 10 <^ueeii Street, ill tlie city of St.
(.'iitlmriiies. on tlie HrHt diiy of .luiie next, iicconliiig to my notice to iiuit,
liiiteil the 2.')th flay of April, I shiill cluiiii from you douMe the yearly
value of the jireiiiiMos for so lonj; ii-s you keep possesHion of them after the
e.\piiatioii of tlie Miid notice, uccoriliiij; to the .statute in that ca.se
provided.
Diit.d the 20th day of May, lt>W).
WitiusH: ' James Smith
J. Sacndeks. (A«(ii//<>»'i/).
411. Distraining for Rent It ;i tenmit doe.s not pay hisrent the
landlord mny ilisiraiu. In this cii.se iiny jierson may act as luiilitf
The lundlonl may distrain lor rent the day after it is due, whether it
is payahle in advance or at the end of the month, (|uarter. or year, as the
ca.se may he, hut he cannot ivsue a distre.sH warrant until he has first
demanded payment.
It must he done after sunrise ami Ijefore sunset. The jierson seizing
cannot hreak ojn-n outside diKirs. nor open windows to enter. He may
rai.se the latch or turn the key of the door to open it, hut he could not put
his arm throu;jh a hole to unlock the door or to ilraw a Ixjlt. He could
not rai.se a window, hut if he found a window partially raised he could
rai.se it far eiioil^di to admit his hody. After he once legally gains
admi.ssion ti the hiiildiiig he may then hreak open any inside doors,
(except those of snh-teiiants) that are not o])eiied for him.
Distress may be madi' any time within six months after the expira-
tion uf the lease if the landlord still holds possession <if the [ireniises. If
he has sold the property he cannot distrain; neither can the new owner:
but it may be recovereil by suit. Distre.sM may he for any period up to
six years' arrears of rent if there are no other creditors interested. In
Quelwc only tive years. In Manitoba only for three months if renting
by month or ijuarterly, or for one year if less freijuently than quarterly.
A tenant's goinls cannot Im- seized if they are removed from the
[iremises unless the liailitf saw them being taken away, or unless they
lave been removed " fraudulently and clandestinely" t<i prevent seizure
for rent. That is, taken away in the night, or in any other secret way
to escape seizure. In ijhicbec such i,'(X)ils may be followed within eight
days.
Taking a proini.s.s(iry note by ;i liiudiurd fniiii :i tenant for the rent
will postpone the right <>! distress until the maturity of the note, and
probably would extinguish the right altogether.
Every person who serves a Distress shall immediately give the person
whose goods are seized a notice of the distress giving the amount of rent
distrained fur and an inventory of the articles taken, togeth' r with a copy
of his chargrs and costs of Heizure. If t'-e tenant after receiving such
.iXULollI) AND TENANT.
141
notice nc^^lects f(ir fivi- iliiyn from ilat<- of seizure to pay the rent or
replevy the j;(K)<1m the liuuliuni Ih lit lilterty U> Hell the j^ikmU for the be«t
price he eiin jjet for tliein, iiml after jMiyrneiit i)t rent iiml cohIh of sale if
there is any mirpUis it must he jwiiil to the tenant.
Furniture. sewin>,' mochine.s. musiciil instruments, or other y;ixxis
purchaw"! on u lien iiijreemeiit, are Hahle to seizure for rent if there is not
enough other goot's towiti.sfy the claim, but tlie lauillunl nuwt jiay Imlance
of the lien.
If the lanillonl ilistniins, or iiny other cre<litor seizeH umler iin
execution, the tenatit or .iehtor has the lei;al right to select ami i>oint out
the gooils and ciiattol« for which he claims exemptions. For instance,
there are si.K chaini naimil among the e.xemptions; hence the ilehtor,
instead of taking six common chairs may select six of the best iu tlio
house, and the same all through the list. He must also give up posscHHion
iuunediiiti'ly or otl'er tfj do so.
When a landlorl has issued a distress he loses his right by aban-
doning it or "-ithdrawing it, and cannot make a second seizure of the
same gootis foi .lie same debt, unless there haa been soiuo mistake in the
Hrst .seizure.
4Vi. Form of Distress Warrant
To Mr. A. B..
My Bailiff in this behalf:
I do hereby atithorize and require you to distrain the goods and
chattels of C. D. (tenant), liable U^) be distrained for rent, in and upon the
, now or lately in the tenure and occupation of situate on
in the county of for the .sum of dollars
cents, being the rent for the term of , due to me for the satne on
the day of in tlu- year of our Lord nw tlmusiind
hundred : and for the said purpose distrain witluii ^hl■ time, in the
manner, and with the forms pre.scribtd by law, all the said goods and
chattels of the said wheresoever they shall V>e found, which have
been carried off the said premises, but are nevertheless liable by law to be
seized for the rent aforesaid, and to proceed thereon for the recovery of
the sjiid rent as the law liirec's.
Dated the day of ... 19. .. K. F. (/.-/;/.//../•</»
4I.'S. Form of Inventory and Notice.
.\n Iii\rnt<'rv <>f the s..'\ l'I'.'iI gouds and cliattels distrained by uie,
K. F. (or if as Bailiff, say A. H., as bailiff to Mr. E. F. I this day of
, in the year of our Lord, 19. ., in the house, outhouse and lands,
(as the ca.se may be) of C. D., situate at in the county of
(and if as bailiff", say by the authority and on behalf (.f E F., your Land-
lord) for the Htim of dollars, being rent due to me (or to
the said H F. ) on tlie day of 19. ., and as yet in nrroars
an<i unpaid.
1 In the liwelling house :
Kitchen (name chief articles, but not exempted articles).
Dining room name the articles, b\it not exempted articles).
Parlor, (,nanie the articles, but not exempted articles j.
142
I.AXDI.ulUi ANli IKNANT.
2. < )u tho preniiHcs :
In liuin umnu- artick'.s. )
Descrilie all the articles suizcil as m-arly as can be, aeoDpIiiif; to the
place where tliey are f(jiiiiil. And then at tin- hottimi of tlic Inventory
suhscrihe the fol^nviui; noticr to the ti'nant, an'i leavr the Iiivrutory and
notice with him ;
Mr. C. D.,
Take notice that I have this .lay iHstraini^'l 'ur that I, as l)ailifT to
E. F., your Lamllonl, have this day distraini.-d) on the jjri'niises above men-
tioned the several j^joods and chattels specitied in the ahovt- Inventory for
the sum of dollars, heinj,' rents due to me :or to the said K. F.)
'in the day of , 10. ., for the tsaid prrnii.si-.s : and that uide.'is
you pay the .said rent with charge of di^traininj; for tin- same, or replevy
the said LCOods and chattels within tivf days from the date hereof, the said
goods and chattels ,vill bi.- ai)priiised an<l sold acording to law.
this
day of
lO.
Witness
isted up in three
Given under my
I " " E.F. {L'ii><ll,.nl).
) or A. B.iBaiiif).
For distrainini: farm stock or growing crops, the Inventory and notice
w.iuld be varied by giving number and lot, township, etc., and the liis-
pnsition made of the crops, etc. Notice of sali' must b.'
jiublie placi's,
414. Tenants Request for Delay.
Mr. A. H.,
i hereby desire you will keep possession of my goods whicli 30U liave
this dn\' distrained for rent due, or alleged to be due, from me to \-i.iu, in
the place where they now are, being in the house number street
(name of town), for the space of d.ays from the d.ite hereof, on your
undertaking to delay the sale of the said goods and chattels for that time,
to enable me to rlischiirge the .said rent, and I will pay the man for keep-
ing the said possessi<)n.
Witness my hand this iluy of I'J. ..
Witne.ss (
E. F. )
C. I).
4I."» Resisting Bailiff. \ tenant may resist and prevent the entrance
of a bailitror other ]>• ison who may come with a landlord's warrant Any
time before the bailitf makes a list of the goofis the teiu'iit may retake
them from him. After the bailitf makes a list or inventory of the go^uis
.seizeil and delivers it to tlu' ti'uant. then the goods are said to be " iin-
poun<ied," ami resistance must ceas^'. If after a bailiff has legally gained
adtiii^sion and is ejecti'd, he may return ami demand admission, .and then
break in if necessary
4I»J. Penalty for Idegal Seizures If ,1 landlord distrains for
more than the amount due, the tenant can enter an action and recover
treble the amount of over-.seizure ; and in c;we of distraining Ix^fore rent
is due tlie tenant may recover double the amount of goods distrained
If the landlord were to enter tiie hotise after sunset and prevent the
I.AMH.oitl) AM' TK\ANT.
u:i
rriii'iMil (it tlio (jooiis this will Ih- iili';^al, ainl tlif teniint may recover the
full \iiluc 1)1' till- ^oo'ls distraiiii'il. Tin- lainliorii must wait until the iirxt
'lay, iiihi then t'ollow th<' j^mids if thry liavi- licen remnvoii. A 'listnss on
Sunijiiy is also iilei^ai.
The landloril is not liable for any illegal acts committeci hy the
liailitf unless the acts were authorized or suhsecjuently ratitied liy liim.
Therefore, if tin' hailiti" is authorizeil to seize thf t'liant's ;,'oods and lu'
si'izos tliosi' of a Htrani,'iT, or to si'ize on the premises and lie seizes otl" the
jir.'uiises ..r if he breaks into the premises, the hailitf only is liable. Also,
if hi' were t<) seize and .sell the exenuitions ille;;allv, thi' bailiff would be
liable.
41V Exemptions from Seizure. Th>' li.st of exiinptions from
landl<;rd's warrant i r imdr.- any > xieution i.= criven in Section .524.
The i^ouils beloni,'ini,' to third parties, not relative.s, as vi.sitors,
boardt-rs or ' >dj;irs, are al.so i vrnipi ; also ijoods that may bi- on the
premises for repair, or for any oiiier purpose, if they are not in use by the
tenant, al.so those under lien, or a bill of sale, but not those under a eliattel
mori;;a;je. Hut ^'ikxIs clai'neii by tlie husband, wife, .son, dau(,'hter.
dau;,'liter-in-law, son-indaw of the tenant are not exempt, nor tiiose of
other ndativfS if they live on the premises with the tenant.
Ini]ilenients of trieh , if they are not in actiial use may be distraineil
ujion if thiTi' is nut sutlieient other piods to satisfy the debt. Huildinf;s
or tixturi's which ih*' tenant has no ri;,dit to remove cannot be disti'nimd
u|)on. althou>,di there may be no other i^'oods on the premises.
[n Hritish Columbia there are no exemptions from u lanijlord's
warrant except tho^-i' uniler lien for tlirce months' rent.
41S. Monthly Tenancy. On a monthly tenancy in ( 'ntario th<'
exemptions only hold aj,'ainst two montiis' arrears of rent. I! the monthly
tenant owes for a lonj^cr period than two months, tie- land'ord can dis-
train and sell to recover what is due over the two months, even if it takes
all the ;,'oods. This is doubtless the intention of the Act, but some of the
jud^jes have disagreed as to its mcaninj;. and some of them in eti'ect
expunged it altofrether and allow the exemptions t(j hold j,'ood, .so that it
is not clear that a landlord would be safe in liistrninin!,' the exemptions
in such eases.
41J». Giving Up Possession. The tenant who claims the benefit
of the exemptions in case of a l;in<lloid distraining for n-nt, must give up
possession of the premisi's forthwith, or be ready and otfer t ) do so. The
offer must be made to the landlord or his agfnt. and the person making
the seizure is considered his agent for this jmrpose.
The surrender of the po.sae.ssion in ]>ursuance of the landlord s notice
is a termination of the tenancy, and the tenant has the option of paying
the rent and costs and moving out. or to take his exemptions and move
out without payir.g the rent or costs. (.See Section .")24 for list of exemp-
tions, and also Section 41 S for the monthly tenancy as to exemptions.)
4'iO S-'izing the Exempted Gooris. If the tenant neither pays
the rent nor gives ufi possession after being legally notified to vacate, the
landlord may give him another written notice similar to the foUowinn',
11+
I.ANHl.iiHIi AM' IKNANT
alt>r which Im- can M-ize ami nlU iho ix('iii]itt(i goods to recovpr the
aiiiouiit of rent liue and the costs. Thu iiotieo must be something like
the following :
Take niitie<', that 1 elaini S f,,r nut Am- to ir.c in respect of the
jiri'mises whieh you hold as my tmanl. namely : i htTc hrielly descrii^e
them, giving the number an-l stn et, or lot, concession, etc. ) ; ami unless
the .said rent is paid I demand from you immediate |io8.session of the said
preinise.'i; ami I am ready to leave in your possession .sucii of vour iroods
and chattels as in that case only you an- entitled to claim e.xeinption for.
Take notice further, that if you neither pay tlie said nnt nor give
me up possession of the said premises within tln-ee days after the service
of this notice. 1 am by law ,iititl>'d to seiz.' and s.ll. a"nd 1 intend t'l .seize
and .sell, all your goods and cliatt.-l>. or such part thereof as may be
necessary for the i.aymenl of the saiil rent and costs.
This iiiitice is givi'U under tlu;
respect! g the Law of L.uidlord and
Dated this day of
To ( '. ]). (Tniiuit).
Act of the Legislature of Untario
'en.ant.
..A.I), lit. .
A. B. {f.,n>.n<,r</).
After giving the above notice, if the tenant still remains in pos.sess-
ioii, the landlord can seize and .sell the last article on the premises to
recover the amount due ami co.sts If the teua'it does not wish to lose his
exemptions he must take them and move out immediately, or he ready
and offer to do .so
4'it Goods Seized Under Execution and in the custody ,if a
sheritfor liailiti' eaniiut be distrained; but such goods cannot be "sold or
removed by .s. id officer until the landlonl's preference claim of one years
rent has been paid, or so nuich of arrears of n-nt for a les.s period as is due
up tu the time of seizure.
In Ontario .special pn)visi.in is maile when goodu are .seized under
execution from the Division Court, by which the landlord or his agent
may deliviT to the baiiiti" a written statement of the' terms of the lease,
;nid the amount of rent in arrears in which case if it is a weekly tenancy
four weeks' rent may b.' claimed if there is that much due, aiid for two
terms of payme.it (if that much due) where the tenancy is for any other
term less than a vear. but in iio case to exceed one vear."
i/'idgcrs are temporary les.sees, and
similar privik'tres in respect to the
4'i'i Boarders and Lodgers.
are subji'Ct t<j the same laws .and ha\
lOoms they occupy as a regular tenant. Their goo<ls are not liable to
seizure for their landlord's rent. F.oarders are not liable for damage they
may do to premi.ses through accident, but they are liabh- if done thnjugh
negligence, or maliciously.
In ca.se a boanler's or lodger's goods are distrained for nut due by
his landlord, he must serve the superior landlord or b,iilitl', or other person
evying the distres.s, with a written declaration that the tenant has no
right of property or bi-neheial interest in the goods or chattels distrained,
or threatened to be distrained, and that they are the property or in the
lawful jio.ssession of such Ixianier or lodger. If he slumld owe "the tenant
for Ixjanl or otherwise, lie may sUte the amount and pay it over to the
I.A.Vni.iiltl) AM) IKNANT.
145
superior luii'llunl or tlic li:ulitl', or eiioiii;h of it to ili«charj,'e the lamllord'H
claim if the l)oardfr sIiouM owe more thaji tliat amount. With this
dc'fiaratioii must he ^'ivt'ii an inventory of the articles referred to.
If tlir superior lan<lli)ril or liailitf, after receivini^ this <leclaration and
invent. iry. and .ifter' the iHiankr or loilj,'er has jiaid over to him that much
money, or offered so to do. still procee(is with the ilistress, he: is t;uilty of
an illei;al ilislress. and the lioarder may replevy such mxxls. anil tile
superior landlord shall also he liable to an action for damaf,a's.
Any such payment maile liy a boarder to the sujierior landlord is a
valid jiayment on account due from him to the tenant.
Ifaboaider ;,'ets in arrears for hoard the lx)ardinj,'diouse keeper or
hotel keeper has a lieu on the baf;j,'ai;e and {,'oods of such Ixmrder an<l may
retain them until the bill is settled. If the debt remain.s unsettled for
three months the Ontario Statutes ]irovide that the jrood.s may be sold by
public auction after t,dvini,' one week's notice in a public newspaper. A
landlord could not tints hol.l ^joods for rent iniless he has actually dis-
trained them, but a boanline'diouse keejier may
4'iJt Expense of Distress for Rent. Tlie Ontario Statutes allow
the followin;^' e.Kpenses if the amount distraitieil for does not exceed ?X0 :
1 Levying; (I'sfess under !**S(I, ?*1
'2. (hie man keepin;; possession per day. 7.') cents,
'.i. Appraisement, whether by one appraiser or nmre, twn cents tin the
dollai- for the v,-ilue of the ^romls.
4. If .niy printed advertisement, not to exceed in ail, SI.
■"). ( 'atalo;,'Uc\ sale and commission, arid deliver\' of ;^oorls, five cents
on tlie dollar on the n..-t proceeds of the 'ale.
Wlien the sum exceeds >?.S0, .s:l per d;iy mii_\ 1m- elmri^ed for tlie
man left in possession of the (;oods, and the other ex[ii'nses allow, d are
about d(juble tliose mentioned liere.
In ease of di.spute as to costs either jiarty, liy j;ivinj^ two days' notice
in \\ritin^', may liave the bill taxed hy tln' clerk of the I)ivision Court
where the distress lakes place, upmi paj-ment of a fee of twenty-five
cents Similar procedui-e in all the provineis.
The C( sts are very similar in .-ill the Provinces, and we will, therefore,
only ;.'ive those for .Manitoija and Hritish ("olumbia.
For Manitoba the costs alhiwed are as follows:
1. Levyiiii,' distress, ^=1.
2. Man in possessi.jn per day, ?I. .")().
H. Appraisement, two cents on the dollar on value of floods up to
!?l,()0(). and one O'nt per <iollar all over SI. 000.
4. All reasonable and necessary disbursements for a<lvertisin;.'
.'). ( 'atalo^^ue, .sale, commission and fleliverv of i;oods. (ive f)er cent, on
the net pi'cM'eeds of tln' ^^'oods u{i to SI OOlt. .md tu ■ and one-half pei- (•■■nt.
thereafter
<). Mileaj;e in fjoint; to seize, fifteen cents per mile one way.
7. All necessary and reiusonable di.sbursements for removiii;,' and
storing floods, and keepinj; live stock, and any other disburs«mentH whicli
in the opinion of the .Iudj,'e lufore whom tlie (juestion of eosts mii^dit be
brought for decision, would be leganled by him as reasonalile and neces-
sary.
146
I.AMH.iiKI, AM) TKNANT.
No otliur or (^ri'iiter costs or charpos shiill hi- taken from tenant, or
till' jiroci'ids c)t' tlie .side, mill no (•li!ir;,'o sliiiU be nade except tor what is
aetiiallv done. Any violation of thii ]>iMvisiuii iiieiiis a iieiiall'. ut' trelile
tlie amount of the o'-ercharjje.
'I'lie same chnr;;es are allowed for sei/.ure under a ciialtel iiioit:,'ai^i!.
(Joods of lioarders and lodj^er'^ are exempt. (See Section 422).
For British Columbia liie co.sts allowed for seizure are as follows :
1. Levviiij,' distress under >?1()0. ?*l.."iO: over ■?100 and under ?:i()0,
$1.7') ; over S:i()0, j*2.
2. Man keejiin;; possession per day, ?2.
•'l. Appraisement, two cents on the dullar on value uf ifoculs.
4 (, 'atalojjues, sale and eoiiimission, and tlelivery of ;;o()ds on the net
produce (jf sale, if under ^100, ten cents on the dollar ; if over 5?10U and
under $300, ei<^ht cents; and if over :?:l()(), six cents on the dollar.
4'i4 Short House Lease
Cbit' 3^^clUul■c, made t'
fourth day of April, in the year of onr
111 pursuance of the Act n spectinj^ Shv,' t
IJatien, of the Town of Thorolil, in tlic
hereinafter called the lessor, of the first
place, niereliant. hereinafter called
mail
I^ord one thousaiiil nine huiidriil.
Forms of Leases, tietween .lohn
County of Welland, i^'eiitleman,
jiart, and Leslie McMann, of the same
the les.see, of the secoml part.
WlTNKSSKTIl, that in consideration of the yearly rents coxeiiants and
ujrreeiiients lureinafter respectively reserved and contained on the part of
the .said lessi'e, his executors, administrators, and assi;:ns, to be respectively
paid, observed and i>erfornied, the said lessor hath demised and leased, and
by tliose I'rcsents doth demise and k'a,se unto tlie said lessee, his e.Kecnlors,
and administrators, all that certain tenement or business premises known
and described as the liatteii lilock, No. 120 Front Street, in the Town of
Thorold, (-'oiinty of Welland, Province of Ontario, includini,' the basement
or cellar, yard and outhouse, together wiui all other ri;,dits and appur-
tenances tiiereto belonj,'ini;, or usually known as p.irt or parcel thereof, oi-
as beloii;,'inj,' thereto; To llAVK AND To mil. D the said jiremises for and dur-
ini.r the term of three years, to be computed from the fourth day of Ajiril,
1900, and from theiici forth next ensuinj: and fully to be completed and
ended.
YiELDINii and Jiayin;^ tlu:refor yearly, and ts ery year durin;,' the
said term hereby <,'ranted unto the .said lessor, his lieii-s, executors, admin-
istrators, or a-ssiijns, the sum of three hundred dollars in lawful money of
Canada, to be paid in even ipiarterly instalments on the followini; days
and times, that is to say : on the fourth days of duly, October, .January
and Ajiril in each and every year during; the continuance of the .said term,
without an}- deduction, defaleation, or abatement whatsoever, the first of
such payments to become due and be made on the (■ urtli day of duly next,
and the .said les.see, his heirs, ext^cutors, administrators, and a.ssii;ns, doth
covenant, promise and a;,'ree to, and with the said lessor, his heirs,
executors, administrators, or a.ssiii;nR, in manner followinij, that is to .say :
That he, the said les.see, his executors, administrat- rs and assijrjis, shall
and will well and truly pay or cause to be paid to the said lessor, his heirs,
executors, administrators or assij^ns, the said yearly ivTit hereliy reserved
at the time and in the manner h.ereiTdiefore appoiniid for payment;
I.AM)l,()|;r> AMI TKS'ANT.
147
An.l to pay taxe.s, except for lucal iiiiiin.vinriit ;
An.l to repair, roasoiiahlf wrar ami t-ur an.j .ianiH.'o by Hrr li-rht-
mnfj ami ti'iiii^st only exccptni : '' ' ' "
Anil to kiM-[) lip t'cncrs :
Ami that th.. sai.l l,..s.s„r may vntrr ami virw stat.. uf rri.air, ami that
tho sai.l k.>s.M. will rrp.iir. aceonjin- to n,,licf in writin;;, n-asonahl.. woar
and trar aii.i dania^'e hy tire, lij,'htnin;,' an.l t.^mpest .•xcpte.l
An.l will m.t assiirii ^,r .suhh-t without leave ;
An.l that he will leav.. the ppMnisrs in j^oo.l rrpair, reasonable wear
an.l tear ami .laina-e l.y fire, lii,'htnin;,r an.l tnnpo.st only excepted
I roviil.il that the .s.ud lessee niav reni..vi' his fixtures
IVovi.le.i that in the event of iire, liVhtninir or temp.>t nut shall
ceiuse until the premises are rebuilt or made Ht lor the purp.i.se.s uf the l..H,see
1 roviso for re-entry by th.- Iess..r on non-pavnient of rent, or non-
p.'rtonnanoe of covenants.
The .sai.l h..s.sor covenants with the sai.l le.s.s.v for .niiet eni..vm..nt
Iv U-.TN-Ess WHK,t.:.,F th,. sai.l pani..s h...vt., hav,- hereunto" set their
liauds ,'in.l seals.
Si;^'n,.il, seal.'. 1. ami .l.'livm'.
in the pr.'.senee of
Adam Y(hn(j.
4'i."». Farm Least.
• b)ilN Hatikv ift
Lkslie .M.Man.n. ^
In ;i h;n-m lease .ith.T claus.'s are usually inserte.l, similar to the
h.ilowm-, .letiianj; particularly h.,w the laml'is to be tilled, eroiis to be
raise.l. .fispusitio:i oi .straw, which i)artii-s usiiij; this form may insert
Ani. that the .sai.l les.see will, durinj,' the said term, ".iltivate till
manure and employ such part of .said demise.l premi.ses as is now r,r shall
U-ivalter hv lirou;L,rht un.ler cultivation, in a -.,.,,1 husban.l-like an.l i.ronei
manner, .so as not to impoverish ,)r injure th.- soil, an.l plou-h >ai.l land in
each year dunnj; saui term f seven) inches deep and at the end of said
term vyill leave the land so manured as aforesaid. And will crop the
same durin;; the .sai.l term by a re;,nilar rotation ..f crops in a pr.iper
armer-lik,' m.'inner, .so as not to impoverish or injure th.' .soil of the said
land, and will use his best an.l eani.'st endeavors t.. ri.i sai.l lan.l of all
. ..eks. wil.l mustard, red ro(,ts. Cana.ia thistles and other noxiou.s weeds
AM. will pr.'serv.. all orchar.i an.l fruit trees (if any , on the said premi.ses
fr..m wasi,', dama-e or .l.'struoti.jii. A\i) will spen.I, use and emp|.,v in
a hushan.l- ike manner, upon the .said premi.so.s, all the straw an.l .'lun.r
which shall ^Tow, arise, renew, or be ma.le thereupon .Wi. will allow
any incoming: tenant to plouf^h the sai.l laml after harvest in th- l,i.st year
of the sai.l term, and to have .stablin^r for two hors.'s an.l be.lroon, |.,r one
man. Axi) will leave at least t.-n acres see.ie.l .L.wii with tinuHhv an.l
elover See.l.
AM) shall not n<,r will .iurin^r ,1,,. .sai.l term cut any stamlin" limber
up.,n th.> .sai.l lands, except for rails ..r for buil.linu's upon the said demised
premises, or f..r tirewo..d upon the premises, an.l shall not allow any
t.mher t.) lie nmoved from of}' th.. .sai.l premises. And also, shall and
will, at the cost and charges of the said le.s.see, well and sufKciently repair
and keep repaired, the erections and buildin™, fence.s »ud '-hu^r or<-ct.>-d
or to be erecte.l, upon ttie sai.l premi.s.'s. ^ • ■- .
148
I'AKINKKSlln'
ClIAITKi; WIl.
I'AUTNKKSIII
has
iM.tl,
I-, his iiaiiK' til tht- tinii fiT
iiii tiiiaiicial ijiti-iT-.t in tin-
ail intiTi',->l anil whiWi' iiiiiic
thi-y an- all riiually
Mil
4'Ui Partnership is a lontract Id'iwcLii two or mori' jum-sohs, not an
iiicorporat.il conii.any. who join to;:ethcr i'of thr imriiosf of t'oniluctiuf; a
curtain husinf.ss, witii an un.h'rstan.iiii;,' to iiartic-ipat.' in cfrtain i.roj.or-
tions ii. till' profits or losses accruing'.
'I'll. 'v may join tluir nioiu'v, ;,'oo,ls. lahor an.l skill, or any or all of
thrni. i"irni, ("iiiiipany, House "ami Co-iiartnurship an- all symmyiiious
tiTins ii-.(l to rcprcsi'iit a jiartniMship hiisincss.
Thr accfpt.Ml ilcfinition in all the I'rovinccs of a paitn.iship i-, Tlu'
rrlati.iii which subsists hetweun parties carrying on a business in eonmion
with a view of profit." A ■'common fniul,' atxJ a ■ coninmnity ol profits
pretty clearly (lesij,'nate a pai-tnershi]i business.
4'i;. There are Three Classes of ( ieneral partners :
1. Dormant, silmt or sh-epin;; j.artner; that is one who has an inter-
est in the business, but wliosr name iloes not appear He is represent. ■*!
in the firm name by " iV Co.
2. I )stensible partner i.s one win
the .sake of its reputation, but wlm
business.
3. Aettial partner is one who has
appears in the firm name.
As to their respective lialiility to th
liable
4'iS. Partners Liability. In a (ienrral pa.itii.i-^hip eaeh member is
not only liabl.' to th- public- for his pailieiilar int.ivM in the busiie-s, hut
also for the whole ilebt- of the firm.
4'it>. Limited Partner i.-. one who takes .i eertain interest only in
the business, ami wli.. also only umlertakes to share a certain amount of
the L'ains or h)sses. The amoiint of losses which he assumes li.aiiility for
niu-t not bo less than the amount of capital he invests. This sjiecial
partmrship arrangement must be inserted in the partnership agreement
and registered before commencing business.
This Special or Luiiite<l partner must not liave anything whatever to
do with the management of the busines,s, and take no jiart in the work.
He inav "ivo counsel to the firm, examine the state and progress of the
husiness.'but if lie takes any part in iUs m.inagement lie inakes him.self a
tjcnend partner, and thus li.able for all the debts of the firm.
His name must not appear in the firm name by his kiiowle<lge or lie
becomes il (letioral ]iartiier. i i ■ i
A continuation of fhu business beyond tin time li.\.(l tor the Limiteil
partnership without being filed again as at first, or a removal from the
lociUion of tile business without being certified to and registered as at
lir.st, il becomes a Geiicra! paitiiorship.
PU!T\Kl:sllll'.
U!)
lit lirst. it licciiiiii's a < li-Dcrul
A l.'iri^f ininihiT of partnersliips (ire
.iLrri'tnii'iit, Hini tlms a wido ojipor-
Alsii, if iliiT'^ is jiiiy ulti'raliiiii in the iiivmcs of the parttifrH, or in the
Mpital, or aiiythiii;; 'litf't ritiir ti'oiii ttii' original ciTtiticnte, it is ili'fini'il a
ilissolutioll ; ;llnl ir lint tilc'i :\i
partii»Tshi|i.
Such Spi'cial partner cannot witlulraw his stock in tlu' shape of divi-
ili'iiils, profits, interest or otherwise iliirini,' tlie coiitituiunce of tlic purtner-
sliip, an! if h. iloes he is boiuiil to rephice it so as to keep his stock
iiitaet.
'rhri-i' can lie no ilis^nlnlion of such part'e-rship pr.vinus to the time
inentioneil in the certilicate nntii a notice has 1 n lih'i in tie- otlice
where the ori;;inal certilicnte was reconle(i.
In case* of inscjl\cncy Special jiartners i\n not rank a;-* ereilitors until
the claims of all others have Ix'en satistieil.
iamite.l partiiershij) is not dei'inej to he formed until the certificate
is fih'd It husiness is done liefore tilini,' it is deemed a <ieneral partner-
ship and all ;ire individually liable.
l''.\ery renewal of a Mmited partnership is rei|uired to he tiled exactly
the same as at first, otherwise it i'lcomes (leneial
4;iO Partnership Agreement
uiiw isidy t'lriied. simjily hy a \erlia. ,,-,vi ,.,.-,,,, .vn.. mu.-. n « me- mn>ui-
tunity left for future disaj;roetnents. unieh friction, and frequently a waste
of in iney in the courts.
I'ropi'rlj', every partnership ac^reeincnl should he reduced to writin^',
with a i^reat lii^al of deliheration and caution,
4:H The Articles of Co-Partnership should contain:
1, Th" names in full of each meniher, and their place of residence.
"2. riie nature of the t)usiness to be condiicteij.
.'}. The place where it is to l)e conducted.
4. The amount <-)f capital that each partner invests.
■'i. What partners are (leneral, ami which are Special or Limited.
t). If any partner makes no cash investment, hut who.se experience,
i^r skill, etc., is his investment, that should al.so be inserti-d
7. The date of comnienceinent and duration of the contract, if it is
for .1 detinite period.
5. If a division of work is afjreed l«-tween the' partners, such as i(^r
one partner only to si^^ni all orders for ;;oods, accept all drafts, issue tlie
notes, etc., it should be clearly revealed in the aj^reement.
It. Provision for settleinc'iit in case of the death of a partner.
Besides these, there are various other thini;s which couli profitably
be emboilied in the a;,'reement, -^uch as that neither shouhl be a camlidate
for a municii).al otlice or an active jiolitieal partisan without the consent
of the firm ; also, that neither partner should indorse jiaper for others, or
become bail for any person, without consent of the tirin, or to enijafje in
any otlier business that would reipiire investment and possibly incur loss.
Also, a provision f(jr windine;-up the business in case of a dissolution, or
for disai.;r(>ement, etc.
If no limit is fixed it is a partner.shiji at will and niav be ilissolved
by any oie- of the partners by notice to all the otliers of his renunciation.
Hut such reiiuneiatiiin must !"■ in fiitnd faith and not made at a time
150
r.\i!Txritsiiii
lil'''l witliiii -ix iiidiiths.
lit tlic <itti('i> (if tlic C'lnk
unfavorable to the fiartiiorsliip. If the articlt-s of co-{)artiuTslii[> w.Tr l>v
ilee<i a iiotipo in writini,' is sutficiciit
4:i'i Registration of Partnership Kv.ry (iiiuTil partiicrjsllip
iiiii-.t I..- iv^'}-leiv.l ur tilc.l within a .jrtinit'' tiiiio, which varies sorm- in
th.' ilifl'.'rotit Provinces, or ho liahle to a heavy penalty, and every Liinit^ii
partnership must be rej,'i«itere(l immediately or it is .leomed only'aCeneral
partnership and the Special partners liable for debts eciuallv with the
(iencral. Actions aj^ainst partners in Iraile who have not re^jistered may
be bron;,'ht ajjainst any one without naiiiiiij,' the others on the writ or ih'e
said CM-partiHTshi]) firm.
In Ontario Lnnited purtnrrship must be filed at tie' utlie.' of the Clerk
of the County Court before commdieini,' business ; ami a (ieneral partner-
ship at the County l!e;.nstry ( >flice where the business is carried on
witlun SIX months after the partnership is formed. The penalty for nd
re-isterin;; is SlOO one-half to j,'o to tlir prosecutor and the other to the
Crown. The fee for rej^istrrin^ Limit..! ]'artnersLip is ioc, and 50c. for
(Ieneral.
In .Manitoba (Jeneral partnersliip mu>t 1..
For the Ka.stirn Judicial District they are lile.
of the Court of <^ueen's Hencli, and f.'r the Western Judicial District with
the Deputy Clerk of the Crown ami I'lras. The fee for tilin;,' is ^1.
Limited partnership to be tile.l in the otHee of the Judicial District in
which Ihr ]M-iiieipal plac- of business is situate.!, and if the principal ],l,ice
of busim'ss isu.it in a Land Titles district then it must als., l,« iilo.l in the
orfice of tlie Iiejri''tr;ir ..f tie- r.'-i-lratii.n .listrict in whi.-h it is situat-.l.
Fee f.ir filiii.;. SI.
In I'.ritish Columbi i (j.'neral parlm rsliip mus 1)." registered within
threi- m.inihs with th.' Registrar of the County Ccj'urt. Fee for
hling, SI l,imit<'il iiartnership certificate mu.st be .signed before a notary
public an.l tile.l in the otlice of tli Iterristrar of the C.iuntv in whi.-h the
principal place of business is situat.' l-"..' f. .r tilin::. S2.
In North-West Territ.irie;^ (ien.ial ))artn.rsiiip must be register. d
withiii six months in the otlice of the Registration Cl.rk of the ivgistra-
tion .listrict for regi.stration of ehatt.'l iii.iitgMg.-; in wliicli tli.- business is
to he con.iuctp.l. Fee for tiling. .■)0c.
The certificate for Limile.i partiuTship must b.' -i^ni.i before a n.i|,ii\-
public, who will citify the same. ,in.l then tile.l in the office of the
Deputy Clerk of th.' Snpivin.' Court wher.> the principal place of business
is situate. Fee, 2.")e.
In New I'.runswiek. both General an.! Speciiil i.artnei-^hips must be
register.'d before coiiiinenciiig business, l-'ee f.,r f.irm.'f. L'.a- ; lor latt.r,
Mc. Limile.i partnerships must be liled in the otlice of the Registrar of
Deeds of the county in which the princii)al ]ilace of business is situate, and
when there are places of business in .lill'.'reiit countuM, tiieii a c.rtitied
copy of the certiticat.' must b.. filed in .ach such eouiily. A copy of the
certificate must be publish<..l in a newsjiaper published in'lhe cunty where
principal place of business is situate.
In Nova Scotia the certificate t.> In- til..! in the ulllce of th. '
of Deeds withiii three months. The fee is 2."c. if not over
won Is
t\\.
.'g'strar
iun.lreil
I'AUTSKIiSHir
161
Tlio [icimlly for failure to r< j^i.sU'r for each j)artn('r is not Ics.s than
l?2(), nor niori' than SI DO. 'I'hc certificate for Liniiteij partnership must l>e
iK'kiiowleiJ:,'.-.! hy the parties sij,'ninj; it before a .hul^^e of the Supreme
( "ourt or a Justice of the I'eace ami then tileil, after lieiii;; certitie'l, in the
oflice of the Ke<^istrar of D.iiis of the county in wliich tiie principal place
of husine.ss is situate. At the sani(' time aiel jilace must be tiled an atfi-
davit hy one or more of either the (iiii'r.il or Limited partierf declarinj^
that the sums specified in the certificate li.ul in ^ood faith In in paid in
Cfush. As soon as such partnership is rej;istered i( shall he ]iuMished at
least six Weeks in tin; L'oi/nl (ia:i'l>c and one other ne\vs]ia(ier published
at Halifa.x, and by handbills posted up in some public jilaees in the t<iwn-
ship whire the business is carried on.
In '.Quebec, both (Jeueral and Limited paitm-rsliip tiir dfclaralioii must
be tili'd with the I'rothonotary of the district and the Ke^'istrar of the
County in which the priiiciii,il place of busi?iess is situate within sixty
days afier formation of tie- p irtncisliiji. Failure to comply incurs a
penalty of !*-i()()
In Newlninelland the Certificate must be acknowlclL^c-il b.'l'urc a
iiot'irv public \\\\i> shall certify whether it was made in Newfoundland
oi- alir"ad. The eerliticate is then tiled in the othce of the Colonial
."Secretary. When there are places of business in ditf"erent districts a copy
of the certificate certified by the Colonial Secretary must be recorded in
the office of the Hc;,dstrar of Deeds for such districts. At .same time of
tilin;^ certificate an atlidavit of i,ne or more of the jiartiiers must be made
that the sums specified in the certificate had 1 n in ;,'u.ul faith actually
paid. The terms of the partnership must al.so be publisheil at least in six
consecutive issues of the Koi/iil ^r'occ/^' after re;;istrat ion, and in one or
two other jiapers as the Colonial Secretary shall desirriiate If not so
n';^isterid and so published the partiiei'ship shall be deemed a ( ieiieral
partnership The form (jf certificate is similar to the one shown in this
l)'iok for Limited partnershiiis. For athdaxit of newspa|ier publishers as
to publicati'in and 'iilier form--, --ee Con.solidated Statutes, Chap. iSS.
4liX Form of Registration, for Tieneial partiurshi]!.
Pkovinck (ir < >\T.\|{|o. I We. .bimes Smith and .lames Hobiiisuii. <,{
the City of (iiielph. Cf)unty of Wiliiii;,'ton.
County of Wellington, l i'rovince of Ontario, hertdiy certify ;
1. That we have carried on ami intend to carry on the trad'' and
bu.siniss of (^arriaj,'e Buildinj; ami (ieneral Hlacksmithin;; at (iuelph, in
partnership, under the name ami firm of Smith iV Robinson.
2. That tlu' said jiartiurship lias subsisted since thi' 1.5th ilav of
May. IStOO.
',i. 'I'hat we are and have been since the s.iid ilay the only inenil)ers
of the .sai<l partnership.
Witness our hamls at Cuelph, this -Jn.! (jay i>f .rune. 101)1 1.
•l.\MEs Smith.
.I.VMES HoiilN.SON.
'I'ht- .above form of de'claratioii is identical in all the Provinces as
]irovided by statut"', simply change the name of Province when u.sed in
other iprovinces.
1V>
I'AllTNKUslIIIV
4',i4 Formation of Partnership I'urinirsliip^t nrv ronni-.l liy
aureeineiil of ih.' |.:iitirs. .-itlnr .aj.ivs-.,,! ,,i niijiliiMl. 'I'li.' fXprcHsrcj nuiv
Jju (jitliiT (ir«l. wnttcii, or iindir sial. 'I'ln; U-il of |mrtii(islii]) is "'ii
coiimioii fnn.l "ami "a ri.niiminit y of profits'' In (iny i-jis,. wIumv juirtifj*
an ii.s.so(iatp.i in liUsiiie.s.s, if it is nt'crsMiiry to pro\o tlif t-xistcncc .,f n
partnership aliont all that in needful to ilo is to prove that there is "a
common fund " for the partic-s asscx-iated, and " a connnnnity of profits."
And it would he diflicult for such parties to estahlish the fact that there
was not a partnership.
Partnership may he formed lor commercial eiiieipris.s, mannf.ietinim'
and mining' in all the Provinces and Newfoundland, hut not for hankin;^,
railroad enn-tnietiun, nr insuraiie.
4;W. Form for Registration, of Limited partnership.
Province of . ... | We, the uiidersii,'ned, do her<d)y certify lluit we
County of .... liave enteivd into co-jMirtliership under the style or
1 firm of (li. I). <<: Co.) as (tJnicers and Connni.s.sion
Merchants) which firm consists of (A. U.) usually rcsidini; at ami
(V l\) residing' usually at ;w General partner.s ; ami ?K. V.) residing;
Usually at . . , and ((;. if.) residing: usually at lus Special partners.
the sjiid (K. F.) havini; contrihuted ^4,000, and the said ((i. H.) !*\(K)0, to
the capital stock of the .said partnership.
The said partnership connnenced on the .... day of .
terminates on the
I)ate(l this . .
.Si;;ne<l in the
presence <A'
T, .M
Xotiiri/ I'll I//
The certificati
notary [luhlie. \vli(i s
<lav of
■i^y
I
for ,1
lall
)f
., 19.
Ill ., and
A.
Liinili-d |iartner.Hhip
Inly certify the .same.
UiUst
'Ued
li,
1),
F
(i 11
I H- fore
H.
I'f .'septeiiif)LT. ill tile yi'jir
■ Citv
4:Ui Form of Articles of Paitnership.
articles of agreement ....,1,. ti„. to„ti. ,u
(.iir l,..r.l ..II.. th, 111. ,111.1 hill ■ liuii.lrril
l'l''"l•:^■^ '■ u'.' <iiili>lf. .I..I111 ..\<l,iins 1111,1 Cliarles .\ndrew.s. .■ill .,f tl
H.iiiuiti.n. m the Ciiiity ..f Wcntwnrtli, i'mvini*' of Ontario.
\VnKttE.»s tlif s.'iiii partie.s hereto respoitively are ilesirous of eiiternu' into a C'o-
p.irtner.sliip. in the liiisuie.ss of the Maiiiif.ai tare and Sale of Kurintiire, a'l llannlton
aforesaid, for the l.riii. and sulijfot to the stipulations hereinafter expicssed.
Now, THERKFoBK, THESK Pkksknth witnKss, that each of them the sjiid parties
hereto, respectively, for himself, his heirs, executors luid administratois, liereliy
Covenants, with the other of them, his executors and adniinLstratoris, m manner followniL'
that is to s!iy :
• "^1. That the .sai,l p.-uties heret.., respectively, sli;ill hnu-eforlli li,., and continue
Jjartners tof^ethcr in the said Imsiness of the Manufacture and .siale of Furniture, for
the full term of Five Years, to Ue computed from the tenth day of September,' one
thousand nine hundred, if the .viid pariiicrs shall so Ion.,- live, subject to the provisions
herein.after contained for determiiniii.' tin- said partnership.
2. That the said business .shall be carried on under tlif lirin iiniiie of the
Hamilton Furniture Co.
3. That the said [mrtners shall inve,st cajiital as follows: Geori;e Carlisle, two
thousand dollars, e.uih ; John .\dam.s, tiffuen hundred dollars, cash" and Charles
.\n.livHs. nine hundred dollars and toolsand m icliim-ry valued at two thous.iiiil dollars
PAIITNEUHIIir.
1 y.i
4. That tho iiniil |i.irtiirrs <h»ll Ix- rntitltHl tn ;i milary in lieu of HurviOfH, a«
fdlliiw.s : (iwvrm- I'lirlisli', iw fun-iii.iii of fiu-tnry, Iwenly doll.irx |«t woek ; Joliii Ailaiiia,
«H l>.Mikk<'. |)i>r. twenty <i>>lliini per week ; iiiici I'hiirles Andri'WK, »m KiilxMiimn in the Mt4>rB,
tifiii-n (liilUrs |iir week.
it. Thiit the siiiil |iailni'i-s sli.ill fiirllur r.- Im I'ntitU-d t.i tltaii- tlir prolitn i^f the
Hrtiil lniMinew Ml thi- |irM|M.itiiiii f..lli.wiiit:. that is lo »ay Acc-nniiiin t.i the rt-t|i«clivo
invfstniunt at iHiiinirni'tnnfiil fm- ihf firxt y.-ar. ami nconlin? to th« net cri'ilit, i.f each
kt the Ix'Kinnin.,' I'f rach iiiilm(H|ii<>nt yinr :
Ami that all lnwis in Ihrsaiil liiisiiieiiii fur any yi-ar shall I>h liorni' liy thoni in
the saini' (ir,i|M)iii"n (iiiili'ns tho saiiu" shall l>n iK'iiwioMfil liy thf wilful in'«liit nr default
iif eitluT iif the wnd paitniis, in rhich ease the same shall U- iiiadi- i{.ic«l liy tho |iaitnor
through whdso no'^hot tho saiiii' shall arise).
♦i. That tho said partnors shall .acli lie at lilHjrry, fnnii time In tune Uiirini; the
said I'artiiorsliip, ti. ilia» nut nf tho said liiisinoas, f^r private us.-, any hiiiii nr Hiiiim nut
exiirdin;,' fi.r oad., the sum i>f throo liiiiidrod dollars per aniiuiii in oxeoss nf salary,
nuili HUiiis t" lio iluly iliaryod t.i eaoh nf them. ros|M'Ctivoly. ami iin uro.itor amnunt to
be drawn liy either ipf the luiid partiiors exi.'opt liy iiiiitiial iniiseiit : and iiitonsl at live
JUT rent, per aniiuiii shall lie eliai,'.;d tn each partner fnr such withdrawal fimii the date
iif withilraw.il uiilil it is repaid, nr until next annual settlement.
7. That .ill rent, taxes, salaries, wayos and nthor nutsjninu ex|ienHes iiuiirretl in
respect of the sjtid liiisinesa. shall lie paid and Ihihio out of tho proHts of tho said
biisinons.
X. That tlio saiil p.irtn(rs shall keep, nr cause to Iib kept, proper anil correct
books of aieniint of :ill tin- partmrsliip nmnoys received and paid, and all liusiiiess
traiis;M;ted nn partnership aocnunt, uid of all other maltors of wimli aeoouiits oui;ht to
Iki kept, accoidinj; In ilio usual and ro'.'ular course of tlu' said Imsino.vi. which sjiid
Imnks shall Ik- open to the inspo. linn nf all tho parlners, or their lo^jal representatives.
A sioiieral lialance nr statoinent nf the said acenunts, sinck in trade and Imsiness, and of
accounts lietwoeii the- siid partners, ;^hall lie made and taken on the tinst day of .March
in each year of the said term, and ofi.ner if loipiinsl.
!•. That tho said partnrrs shall 1h' true ami ju.st lo each other in all matters of
the said cnpailiurship, and shall al all times, during; the coiilinuaiico thoronf, dilli{ontly
aiirl faitlifully oiiiploy tluMiisel'es. rospoctivoly, in tho cniiduot ami cnncoriis of the said
hii.sino.Hs, and devote ihnr whole time exclusively llieroto, ami neither of them sh.ill
transact or lie eiiyanod ii. .■my other liiisiiioss or tf.ide wli.ilsocvor ; .\ml the said
partners, or either of tluiii. iliirini; the cnnuniiance nf the s.iid cn.paitiurship, shall
not, either in the naiiio of the said p.irinirship or individually in their own names,
draw or accept any lull or lulls, pminissory note nr notes, or liecome liail or surety for
any person or persons, or kiiowin<;ly or wilfully dn, commit or permit any act, matter
or tiling; liy which, or liy nie.ans of which, the said [i.irtiiership imiti'y or" ett'ects shall
lie seized, atlaclied m- taken in oxecutinii ; and in ca.se eillior partner shall fail or make
default in th.' performances of any of tho .itjroeinoiits of articles of said partnersliip. in
.so far as ihe s.imo is or are to lie ohsoiAod liy him. then llie other jiartnor shall represent
in wnliiii,' In such parlmr otrondliie, In what lie may ho so iii ili-fault : .iiid in case the
sjinio shall not tie roctitioil by a time tn lie spocilitd for thai pur|inso liy the p.irtnor so
represonlin^'. the siii.l partnership shall therou[ion at once, or at any oilier time to ho so
specified as aforesaid liy ihe parlners otiViidcd a'^'ain.st, be di.ssolved ind determined
accordingly.
10. Th.il in case cither of the said p.irtn.r.-, shall di.' hofor,' the expiration of the
term of the said co-parliioiship, llieii tho surviving; p.irtiiers shall, williin llio six
caloml.ir iiioiilhs .ifior such decease, settle and adjust Willi the repre.seiit.ilive or
n'presontatives of such docc.-ised |i<irliier. all .iccounts, matters and things relatiiii; to
the said copartnership, and that the .said survivors shall continue to carry on thence-
forth, for their soU- licnetit, the co-partiicrship busiiies.s.
I\ wiTNKss wiiKKKoK tlies.iid [larlies hereto liavo hereunto set their h.mds and
seals
.Sij/iuhI, .Sealed and Delnenii "j
In the pro.sence ..f
\V. SWKKTMA.N I
(TEORlit! CaRLI.sLE.
John .A. hams,
('ll.llll.KS .\n1iRKWS.
m
m
i:.+
I'AHTVERSHrr
4:11 Partnership Capital Tlu- rnpital a iinrtmr contrilmt* k 10
th.' j.Mriii. r-liiji iiiuy Im' in c.i^li r,-ii| ,.>.tatc, piTsoniil property, nr .sccri't
pnxvNH ol' miiimfactiiri', a pat.tit ri;,'lit, c<>pyri;,'ht, liiUir, skill, or tiiiio in
iimim;;<Mii.i>t, ;;(to.l-\vili of mi fstabli.sli.d 1'UHiius.s, etc., and in .ach cnsc l.e
Hiitiject tn tin- .same liuhMiticH, un<l |»o«He8N ••<juul privili^'M.
4:JH The Firm Name 'I'hcre an- no rt'strictioim placed upon tlie
choici' c,f ,1 I'iiiii name fm- a partnership as in cane of a aUtck company.
Any individual who winlies to aild " Jit Co." to his name, or to u.seanv
special name other than his own may do .so l>y re^fi.sterin;,' a declaration to
that frt'ect, the sjime a.s »honj;li a nimdier of pers')ns were united, and he is
liiihle til the same penalty if ho does n.it re^^'ister.
In si;,'nin;; a-iy documents the tirin name .should .ilwnys he used
without the least variation In many ca.sen the p.irtners w<mlil not Ikj
liaUe if ''»• i>iime of the tirm i.s varied, nor if the person si^'nin;,' is not
act in}; within the scope of Iun authorit}-.
4:W N'on-Trading Firms. Firms that an- not iradinj; Hrms, smh
a.s a l.iw tiiiii. do not cinir under the p.irtiiersliip laws, neither can thev
;;ive a not>' as a tirm. They may all si},'n it, hut it is only as a joint and
sever.il nnte, til., s.ini.' ,is ihoij^rh they were not a.s.sociated personally.
4-4« Church Trustees may he held pprsonally liaMe if they sifjn
their names to any document for church purposes, as there is no Act <if
F'arlii.ment ;;ivinj; them power to act as such, or authority to hind others
whom they may chance to renresent ; but tiiis does not' apply to mort-
gaj^es on projH'rty of the church con;;re;;atioii.
The same is true nf the i.tKoers of the various social and hetievcilent
a.sKociations.
441 Powers and Limitations of Partners Kach ;,'enoral partm r.
unlos.H prnluliiii 1 ill the :ntieli's of eop irtiiersliip. lieconies a LTeneral ai'ent
of tlio tirm ancl lias power ti- act for llie tirm.
He may Kind the tirm in ^ill matters that eonn' widiln ihe hmit-s id
the business undertaken by lli.' tirm. For instance It'.i linn were
onj;a;:'d in the jjrocery husine.vs a partner couM bind the llrin 111 sudi
transactions as would properly ln-lon^' to the grocery trade . l.ut li^ eould
not for anything; fiertaininj; to a coal business, or in "real estate, etc
Kach partner can act for the tirm unless he is pr()liil)ited in tiie
partnership ajjreement. He may receive payments of bills and aceount.s,
compromise with a debtor, or rejiresent the (inn in a suit at court, or
borrow money necess.ary to carry on the tiniis business.
Ill- may make a note or accept a draft for the tirm in tie n';,'niar
course of business, or do any other act he deems necessary in the intenst
of the tirm.
If a bill or note is sijr,„.,i \,y ,,iie of tin; Hrm. the firm can be held
liable, jirovidinj; that two thinj;s can be proved, vi/. ; That it was for the
tinii ])urposes, and that the person si;,'niiij,' it had proper authority todoso.
A promissory no*e or acceptance bearint; the tirm name sijrtied by a
partner, althoU};h not j;iven for tirm purposes, will be colleetetl if it pas.ses
before ni.'itiiritv into tlie i.ands of .in innoci'nt holier for \alnp.
rARTNKKSIiri
155
Hii'lirit; 111-* Cm [iiirttifr.s,
A fMirtiuT rn»t invt'«t<-<l willi tlir ri^jlit, iti
renders liiiiisflf liable to thiiii
Ouo pHrtner oaiiiiol hiiul t'l- linn liy :ui m^tniiiiint imiJer Heal unles.1
hr llll'^ I't'iii iiii|"iwi'r.'ii liy lui iii-tniiii.nt \iiiilfr sen! to <lo so.
4-i"f Acts a Partner Must Not Do one mrmlior of a tirin Uas
IK) ri;,'ht to sipi tlif tiriii niiiii>' I'ur [mrposvs of Nuretysliijt or on private
account lie must not employ tin' property of tlie tirni for Lis own jiriviite
use. ij.- iriust not use the credit i>f tin- firm for liis own personal hen. tit.
He nniHt not ;;ive a tirin note in j)aymrnt of ii private ch-ht He must not
iassui' a tirm cheijue in payment .)f a private account, unless he makes tlie
cliei|Ui' p.iyahle to liis own order, and then indorses it hcforc delivery.
In ;,'en,'ral, hi' must not do anytliin;,' contrary to the partnership
a^'ri'ement .,r .inv I hini; pnjiidicMl !■. the interests of the firm
44:{. Liabilities in Case of Insolvency A [la.tnership tirm
bi'coniinj; ins. .Kent, the (iiiire parlnership pn.perly would he taken first
to .satisfy the firm debts. If this did not satisfy the claims, then the
private proi)erty of all or any of tlie f,'eneral partners wonhl, subject to
priority of the partner's private crolitors, Ik- taken to satisfy the debts.
The Special or Linuted p.irti>er in such ca.se would only "be liahl.. to the
am .imt of interest he has in the business. If he huil previously with-
drawn i)art <.f his capital, an.l h.nl not etfecte.l a n, w rei^'ist ration, h" ..ul 1
still be liable fi.r tlie.imount wilh.liawn.
444 Partner Cannot Sue the Finn, as ih.it w.ml.i be in reality
suin;; himself, for the linn does not e.\ist with >ut him If. however, he
has a jirivate .hbt or claim a;,'aiii.st the firm which the firm will not jiny,
he may a.ssijjn it to a tiiird jiarty.
44.'». Partner Selling; His Interest. .\ i.artn.r c.mnot .sell his
int.'r.'st with. .Ill th.- ci,iis..i]t ul' his assi.|.i;ite.^. If h,, shmdd sell without
such consent it voids the partnership nrrrcement anil a dissolution must
take place. The remainini; partners may accept the new member, but it
makes a new partnership even thoufjli no other chanfje may be made in
the articles ,,f ii^'n-iinent, and must \f rei^istered .■i^;aiii
44<» Bankruptcy. Incapacity, or Death of a Partner A jartn. r
in a linn beiuui. s insolvent in bis private business, hi.s interest in the
partner.sbip pa.sse.s to his creditors, who are not partners — hence dissolu-
tion follows.
A p.-irtncr dies, jiis li.-ir.s. etc, are not i.artiieis — hence dis.solutii.n
follows.
A p.-irtn.'r b.'conies insan.', or ai. invalid, hence cannot fulfil the
partnership agreement, and a dis.solution follows.
44J. Retirine: Partner, A retirin- partmr from .a partnersl.ip
firm, in (..pier to protect himself from the future liabilities of the tirm,
must, in addition t<i the adverti.sements already mentioned. re>,'ister a
declaration of the di.s.M)Iution at the office where th.- [.artmrship ix
rej^i.sti-iiMl. (,See .Section 4.")1 for form.
This. ..f course d.^es u:.t !'re,- !.i::; fr.vii; prevloUS HftbiHtlrS \]:\^
156
PAKTSKKSllll',
incurreil whilr he was a laiiiiIxT Xothiiip liut a release I'rcin the
in<li\ichliil creilitor^ e.in I'rei' him from tlie past lialiilities.
lUit for all Imsiiiess enterprises intemieil to l>e p.-niiaiuMit and of larj,'e
<iimeiisioiis. it would he far hetter to mimu a stock company instead of a
partnership. See next chapter i.
44h Dissolution of Partnership. The followini; are amoni^r tie
tliin^js that e.all for a di.ssolution of partnershi]i :
1. Insolvency of one of the partners.
•2. Insanity of one of tlie |)artners.
'A. I»eath of one of the partners
4. Muttial consent.
•'>. 'Marria^je of a female jiarfn' i in some of the p'-o\ inces.
The alwve events .lo not nece.ssitate a di.s.solution, hut they area
surticient cause, and if any (jf tie- tirm should demand a ilissolntion it must
he coinplieil with
Tlii'V are also dissolved hy e\]>iration of time, hy the completion o'"
lie- work for which they were' f..i nu-d, or ly a decree of the court.
In the ca.se of a dissolutinii. notice must he pveti to the pii!)lic in tlie
follow m;^ manner ;
V'or persons whose husine.ss is coniineil to ,iny one I'rovince, notice
would he j^ivell in the Prnr, iK'Kil Guzith .
For persons who.sc hnsiness extends t' other proviners. notice must
be iriven in the Ciiihida dnzitti'.
It is also customary to ;,dve notice in the luCJil ]iress and to send
circulars to each indivi(hial tirm with whom tnisiness lias hcen done.
In all cases it is also necessary when dissolution takes pl.iee hefore
the term of partnershi]) expires that a dcel.aration of dissolution he tiled in
tlic otiice where the e.rtilie.itc . .f pnlncrship was tiled at its formation.
(See Section V.Vl).
In Nova Seotia. hr-idcs the tiliu- of the dcchiratinn ,)f dissolution as
here state-d, it is neces.-^ary toad\crtise it in four wcidcs isstiesof the R'Hjal
(utz>'tt'\ and four weeks in a newspaper where liic l.usiness is located
Ncwfoundlaii'l nlso reipiires the piihlication in the (!azflt'\ and one
other paper for four weeks, hesides tiling tie' declaration of dissolilUon in
office of Colonial Secretary.
44J» Dissolution by Decree of Coui^. S ometimeH partners fail
to a"ree iiiid li\ continual .piai rejlii,;; ..r [lullin;,' in opposite directions the
busiTless of the partnershij) suffers. If they cannot ai,'ree on a dissolution
tliey may applv to .i competer.t eoini and ohtain an order for dis.solution.
The followinjf would he ;,'rounds iquju which sucli .m order may he
obtained :
I. V itidnlent conduct h;. a partm r
i \ lolation of the articles of partnership.
:5. rnrea.sonahle exclusion of partner from sliarin^ in the manai,'e-
ment of the husim'ss.
4. (>u,irrellin^' to an extent to remier it possible to properly and
suceossfully carr» on the business of the tirm.
,'). Inahility i)f the partner lo act, on account of permanent illness, oi
heinLT otherwi-e disabled.
I'AHTNKllSllll'
167
1 .,. ( ; inrtntT that would liiiv.' tlie
i.%0 Form of Dissolut.on by agreement u.,v U^ u.l..M <- V„uk
or the partn.r.lup a.-a or a^^r.-c.nu...t^ ^,^^^^ ^,^„ ^^^,.
Wo, tlio vmders.-.UMl, .lo 1. n >.> ,;-urnUun- Manulacturtrs,
''""■";;':;.„.,. »ik.,-..,<, .-. >— - - ■"■■ ■ '- ' -"'" ""
,l.v„t A I. 100". -
GK(»R<iK CaUI.Im.K. W
,I(iIIN AllAMS W
"^in the presfiicf of
CllAHl.KS ANl>nKW> ifUf
4.-,! Registration of Dissolution. ^ ^ j ._^
A ,.otic. of aissoluti..,. ol V"^V'"'''ni; u ;' n ia^ tll...l at its for-
tho .sa„u. othco in -I'^eh the ...rfhcat.. . 1 - -'' V,,^,,, , ^he vanou«
formatio... Thr loilow,.,^' .s a ^ta orx I
l^ pl^^i., on tlu. 2n.l day .f ^^pi^-f^^';;' ';^;; f Iv of S,.pt..ua.or, 190...
^ Witness my hand at H-ulph, tin. th. thud '^-}^^^^J UoiuNSON.
1 ■ ., ., 1 ,,f 1 " at the lii'j^iiinini; of
Tl„ vr..,..,«u ■ "»;;"2„. ■;;„;':'■;,. "';.■ .l,«r,..; to .lo «.. or » "^«".v
'^L'tis^-r :.■ ,.!.'.t;L' :":-..■ 'i- « "• ■■■■< «" • ^'"""""
....-■[J,:- ;;^;^34 ;3;™.- mJ.;..;. ...£ - ,«;;..^J
Dell, Ansttn .V ( o at t' • " '^^;' J ;,^. , rtn-'n^hip are to he paid to
rr\Mr:t'his i^l!;!'' uh^::. s;:... ,.,^1 a,, partnership dehts to 1.
paid hy hini
W.M A. Dei.i..
K. ArsTiN.
p Dk WllT.
HratUford. Nov.iOth. l!K.O,
r- the bus ,-^ss were intended to he eontintied hy .n;-ly a change of
partttei^uXlowing addition to the nottee -^J^; ^ -^^^^, ^,,,^,,,
158
.IDINT sTiirK i-n.M|>AMKS.
Dfll, Austin vV Co , at Ilraiitfunl, Out., hius hciMi this .la\ ilissolved hy
mutual fuiiM'iit. 'I'lii' l)U.siiifs.s will huroiiitiT be carricii on by W. A Dell
anil E. .Vustin.by whom all ih'btsof the old tirm will be paid and to v^honi
all oiitstanclinrj acrouiit.s dtic thr old tinii arc to ho jiaid.
\Vv A l>Ki.i,.
r.rantfoi-d, N.,v. -iOth. lOOO K. AfSTiN.
1' 1)K Witt.
4.'»:t Business After Dissolution. Aftei- dissolution no partner
has a rij^hr, to sij;n the tirm s nai.u' without a jiowir ii!' attorney. If a
note lui.s to be ;;ivrn thr only alternative is for each partner to sij^n his
name .separati ly.
A partner, aft'T dissolution, h.is jMiu.-r to demand tli.it the .i.s.sets he
used exclusively to p;iy oil' the tinii's liabiliti's b^fdi-e ,iiiytliiiij^ can lie
appropriated by the p.iitners.
CIIAl'TKH XVIII
.101 NT STOCK CO.Ml'AXIES.
4-^4 A joint stuck coiii|)iiny is an .issDciation of imiividu.iis [los.se.s.s-
inij^ corporate [)owris, enabling; them to tran.s.act business as a single
individual.
There are fvo niethods by which corporations are constittlted in
l.'anada ; (I) J-Sy Special .Act of I'.-uilament. (2) I'.y Letters Patent issued
muier the Companies Act It is the latter unly that will li^ dealt with in
this chapter.
'I'lii- leorjioration of ,1 .luint Stock company ni.ay be cttrcti'd either
nn<ier Dominion or Provincial authority, liankin;^, r.iilway, telei^raph,
telephone, and insurance companies cainiot obtain a charter under the
Company's Act, but must \h- incor|ioiated by Spi'iial Act, lus the powers
they seek are so extensi\(' that special le;;is!ation is neces.sary to lieter-
niine their limit and safe;;uai'd public inteicst
ISritish Coknnbia is the oidy Province in which joint stock companies
are not formed by Letters I'.itmt. The Rej,i:istration nu'thoil still jirevails
there, and will thend'ore be treated separately at the latti'r part of this
chapter. Newfounlliind is in nearly every particular the same as Hiilish
Cflhnnbi.i
4."».'» Advantages of Incorporation Anion;; tlu' adv,inla;;i-s of
incorporation the three followinrj are of chief imjiortanco: (1) A larger
numlx-r of persons including: employees, may become financi.ally inter-
osteil ill the business than would lie possible in .ins other way. t-\
Ample capital may bc' s. cured and, if desired, largcdy from small investors
(3) And lastly, the limited liability of shar.diolders If the busiii(>ss does
not prove succe.ssfnl no i>ne need lose more money than the stock he sub-
scribed for, thus ditl'ering entirely from an individual business* or a
general |iartnership
■ IDISr STUCK iiiMI'AMI.s.
159
4."»<»- Prospectus. In cms.'s wIp'iv cu]iit.'il is (lt'sir(,'ii from tin- puljlic
outsiiif tiu" jMi-tirs iiiiiMiMliatily iiilm-.-t.-.l in thr loniiiitioii of tin; com-
pmiy, ii l'r(is])rctiis is usually issueii. 'I'liis, liow i-ver, is only ii Imsincss
circular tt) solicit shanhoMcrs and may take any I'oriii the jU(J;,'iiifiit ol
till' proMKilfrs su;;j,rrst. It, should contain I'or its liuadinj,' the name ol' the
coin|iaiiy and sct^torth the i)ro.si cctivc advatilaLTcs and j,'ains truthfully,
as thi-rc is stiin;;cnt legislation ai^'ainst niisrcj'rcsi'ntatioii in the " Pro-
spectus." 'I"he iianies of the provisional directors and chief stoekhoiders
would always Ite deemed :,'ood drawinj,' cards, and the document would
naturally close with a Mank form of aiiplication for shares.
4.M. How to Form a Company Ahuui ih.- lirst stcf) t.ikcn either
l;y the s(jlicit(jr, or any i)ersoii doini,' the otticial correspondence, is to coiii-
municate with the sVcretary of State, dttawii, (jr with the Provincial
Secretarv, as the ('ase may he. conccriiiiij^ the form.ition of the company,
who will" forward a cojjy of the Act together with the neces.sary instruc-
ti(jns and al,-o a hlank petition for the sign.itures of the applicants, Tliis
i.s always neces.sary, as the rej^uiations are liahle to he chani,'eil In ( trder-
in-(;ouncil, and it .saves time to f^et the information direct from the <!ov-
ernmi'iit at llie time, and also hecause the hlank forms cannot he ohtaineil
from any other source.
If the husiness(jf the Company is intended to extend to more than one
Province as, for instance', a steamship line hetweeii Toronto and Montreal,
then the charter should l>e taken from the dominion (Jovernment and the
*pplii'ation should lie addressed to
The Ilonorahle
The Secretary of State,
Ottawa, Canada.
Hut if tlie hu--iness would he contined to the one Province, as a mer-
cantile firm or mamif.aetory, then the charter would he ohtained from the
Provincial (iovenuiient and the application addresseil to
The Ilonorahle
The Provincial Secn'tary.
Toronto. ' hit.
l)r Winnijie:^', or ll.ilifax, as the case' may he.
The next thin;,' to he ilone is to open a Stock P>ook, which gives the
name of the ("omp.my. the amoinit of ea)iital the numher of shares and
the amoimt ot eacii share. In this hook tlie suhscribers enter their names
and the numher of shares they wish to take; when the ])ropoi'tioiial
.amount ol stock has heen taken and the reipiireo amount p.aid iii.appliea-
ti'in may he made for Letters Patent.
In Untai'io the stock hook must now he uia<le in duplic.ite. and n
ill.! duplicates depositt^d in the othee of th" Provincial Si'cretary.
4.'»H. Advertising in the Official Gazette. Before the apjilication
can he made for incorporatio.i under the Dominion Act, the applicants
must "'ive at least one month's previou'^ notice in iho dtnrdd (lazrtlf ol
their intention to ai>])ly f'lr the same,
Ontario does m it recjuire the notice in the (;'(/;'■//» except in special
ca.ses where the Department directa that it he given.
f
it;o
Joint stock cumpames.
QuebfC, Nova Scotiii ami MiiiiitolHi one iiK)nth's notico in tlie otlipial
Gazetti-. NfW Brunswick, two wet-ks' notice in l{<ii/ai Gazdh'. nuA Nortli-
West Territories, one notice in the official Gazftle, imd in thn. consecu-
tive weekly issues (jf a newspaper jnihlislieil at or iieiiiest to the chief
j)laee of tmsiness lor tlie ( "onijuuiy
In the North-We.st Territoriis the I'etition must he forwanleil not
lat.ilhan two months alter puiijishinir the notice in the otlicial (lazrtte,
tu\d all til' thn- l'ru\iiUTs within '>rir niunth
4.'»;> The Petition The (lovcrnment fili-nishes the hhuik printed
f.inn> .1' i'rtiti.iii au.i full instructions for si;,'natiire.s. After hein;,' tilleii
out aecordin;,' to insiructious it is forwanled to the Secretary "t State, rir
thr Provincial SecP'tary, as the case may 1m', aecoinpaiiinl hy the ^'overn-
ment fee. atliilavits uimI copy of adv. rtiseiiimt, wle fr adviTti-.enh'nt is
required.
Tlio Petition for all the J'rovinces i,s nearly id>-ntical and rei|uires the
followinj; information; The name, residence anti occupation of each
applicant in full: the propo.sed corporate name of tiie Company, its ohject
or nature of husiness ; amount of capital; numher of sh.ire.-.; its chief
pl,i. u of business; the names of its tir.st or Provisional Directors; and H •
anioiuit eacii applicant or ])i-titionei- suhscrihi<l foi- in the Memorandum of
aj,'rrenient and Stock liook.
The Diiiiinion Act rcpiire' that before application can he made oiie-
h.ilf the proposed capit.il mu.st !).■ subscriWd and at least tm per cent.
paid in If it is a loan company the capital stork nnist not be less than
SIUO.OUO, and teu per cent, paid in. 'i'l'e amount thus paid in must l>e
deposited in some chartered F)auk to the credit of the K.ceiv.r-( leneral,
and the certificate of dep(jsit for the ,same must accomjiany the P.tition.
The deposit will be returned aft'-r the Letters Patent is si<,'ned. '"'he
Dominion .\ct mpiires that the I'rtition lie sirjned by not less than Hve
pc'rsons.
In Ontario the petiuon must be sii,'m'il by no less than live persons
who are -2" vears of a^'e. Manitoba re(jiiires live sijjnature.s, North-West
Territories not le.'fs than three, British Cohnnbia tiv.- or more ; guehec.
Nova Scotia and New Brunwick, not less than Hm- .and Newfoundland
not le^-- ih.-m three.
rpon receipt of 'h • })elition, with the fees if ehart-r is irranted, notice
will liepven by the 1- |.artment in the othcial (ixzrttmi i\h' Letters Patct,
when the parties therein naned and their sucei ssors b.eome a bo<ly
corjiorate and politic by thf nane- i-niuioued ii; tie- -anie.
4iHt The name <if the eonipmy uiust not Im- the saim' or even
similar to ihat of any other comjiany, wdi.'th.^r incori«)rat«d or not, and
must not be objectionable in any I'thn way. The word ' Royal " cannot
Ixj used as jiart of the name without ;i .special license from the Home
<)ffice.
4<;|. The Government Fee in all the I'rovinces may vary at differ-
,.„l iniii- It luh.- fr.M,, .^l(» to #.500, aocordin;; to the nature of the
comjianv and the amount of ca|)ital stock. As the j;overnment fee is
liable to be ehanj,'e>l by (>rder-in-Council at any time, we will here only
give those for Dominion eharti r.
JOINT STOCK cnMI'ANIES.
161
H.
4.
5.
(J
^500
. 300
. 2:.u
:iOO
1 .-)0
100
Till' Doiiiiiiioii Act i'iM|uii-.'s following; fees:
I When iinmostMl oipitul is .-Jl.OOO.OOO ur ujiwiinl.--
.•)00,(M)0 l.ut l.ss tliaii ?*1 ,0OOX)()O ,
•_>()0,0(H) :)0().0()0.
100,000 " " iOO.OOO.
10,000 " " 100,000
40,000 (ii- Ic'SH
Ill < liitariii the ffcs have lireii ehiiiij^cd, .m) that the lo\vi',st fee now is
?10o w li.-n- tlie ciii)itil is S40,000 or less, except for elieese ami butter
ecjini.anies, wiiich are ::*I0 . eilucatioiial ainl cemetery companies, not
havinu' u'^'i" f'"' their object, 810, ami athletic associations, :?50.
4<»'i Extra Provincial Companies, that is, those incorporated in
anv othir Province of thr dominion or in another country, nee(l not
obtain fresh Litters Patent, but nuist ,secure a license in the provinces in
which the} wisii to establish branch jilaces of business. They nmst also
make the rei|uire(l i,;overnmei. returns
Hi'.i Supplementary Letters Patent arc renuircl when;
1. The coui[iany would desire to chanj^e its corjiorate name.
•2. To obtain further powers.
H. To either increase or to decrease its ca['ital stock.
4. To subdivide its existini; shares.
4<J4. Board of Directors, 'i'b.' jtmxisional directors named in the
Letters I'atmt maiiaj,'e thr atlairs of iheconijiany until thr first i;rniral
meetini; of its meiribers. 'i'he (>nt;irio Act rc(|uircs the provisional
directors, by rofxistered letter, to call the tirst ;.'eneral meeting; within two
months after date of the Letters Patent for the election of dircct<irs and
the further oryjani/.iition of the comiiany. enactment of liy-laws, etc. If
the liirectors do not call such nicctiiii; within two months tlien any three
or mole of ihc shareholders have power to call such mectiu;,'. They are
electetl aiunially by the stockholders, and duriu",' their term they liave
the whole manafjement of the bnsii,.>s>. Nd person can he a director
unless he liolils stock absolutely in his owti rii^ht and is not in arrears
on any call on stock. KIcctiou of directors nuist be by ballot.
'I'he provisional board of clirectors in (Ontario, New Hnniswiek and
Manitoba nmst not be less than three, and mtist be petitioners and share-
I. ildirs in tln.-ii' own name.
In Xorth-W'i'st Territories .■uid (,iucbei not le^s than three nor mori-
than nine. Nova Scotia, not less than three nor more than tirt<'en
Quebec reiiuires that a majority of the tirst directors be P>ritish sub-
jects an<l residents of t'an.ada The Dominion Act rei|uiresthe provisional
directors to be n')t leas than threi' nor more than fifteen, and a majority to
be residentsVjf Canada.
The Ixianl of directors contiinie to hold ollice luitil their sticcessors
are duly elected at a 1,'eneral meetinjj of shareholders.
Directors eaiuiot vote or act by |iroxy.
4tt."» Books to be Kept. Tlie law rei|uires ci'rtain liooks to be
kept, ;:iv in;; the names of the stocklioldi'rs and the shares owned by each,
the amo\ints ])aid in
11
stock, the natnes and addresse.'' of the directors.
162
JOINT SlnCK ('(>MI'AN1K>.
Ili'V .irt' us follows :
1 A book coiiliiiniiii: to]iy of Lrttn-s i'litnit.
•2 \ rfi;istor of slmrriiol.lers, pi-fM'Mt .-umI ['u-t.
'.i. A ii';,'istiT of (iiri'Ctors.
4 A rr;,'iNti r of triiiisfers (jf stock.
.'i. Tlir stock K'llirrr, ''iviiij,' imiiil'iT of -hans
hclil liv each stuck-
hoMrr,
th.
,, A iiiiinil.- liook conlaiiiiii),' (ii-occciiiii;,'^ of all iiicctiiiu'><
7. Ami, lastly, liooks of account coiitiiiiiin^ a full rcconl of iil
coinlianv's business.
Mi'lhrsc books arc to l.c at tic h'.ui oliicc of thr conipany, an.! open
for in-spcction by ^haivhoM-rs a,,.l c.v.l.to.s at all rca.souablc hours on
business (lays,
4<>4>. Capital Stock ui a <: 'ivyur.y is that wloeh has be,n subscribe.!.
It niav be all pai.l up or only parti.ally pai.l. It may he common stock
ur ■■ preferreil -lock," 'J'he common stock .■ntitlcs its hold.Ts to share //;••/
rut'l in the profits of the business. Preference sto.^k is that which is
issiie.l entitlinj,' its holder to ii certain rate of divi.lent out ot the net
profits in priorty to the holders of common vtock. Watered stock is that
which is issued. j,renenvllv to previous stockholders, as tully paid up. when
only a part or none of it has In-n paid. Such stock is always issued to
defraud the public in some way.
4«7 Unpaid Stock- Stock that has brm subscribed b.r but not
paid up stands as ,. resource, and is a security to the i.ublic, and il the
conif)any l)eca' • insolvent each sl,.ckhol.lcr would have to pay up the
balance" of Ins unpaid shares, but no more. Creditors catnKjt sue the
sharchold.'rs until tliey have failed to recover fre.m thecomi.any property.
4«H. Transfer of Stock. Shares in a stock company are personal
pr.iliertv riey may br sold (^r tiansferiv.l if they ha\ e been paid up.
If they 'are not 'paid up they can only b,- sold by the e-nsent -f the directors.
44H> Shares are suiijiosed to be paid in ea-h. The 1 1.. minion and
Ontario'Acls re.pnre that if not ptdd in cash evid-nci' of the tr.uislerol
property must be idven the Department and receive iis apiiro\al. Fully
pai<l-up" stock ni,.y"l)e transfeired .almost as freely as ii promissory note.
c-.\cept where the " certiticate of stock" jtlaees some restiiction on its
transfer which, of course, must be con-plied with Shares not fully jiaid
up can only 1)C transferred where the .iirectors are willin<r to accept the
truiisferee.'aiid a r.'cord of the transaction made in the company s books.
4?0 Shareholders in a company are not like putiier. in a partner-
ship business. They may contract with the cmipany the same as any
otlier person, sue and execute their JHdi,'ini'iits a^;aiiist the company s
</oo<Js, and in case of windinj,'-up they rank with the other creditors.
" They have, however no ri;,dit to the property of the company nor to
the profits until a dividend has been declarjd. In coiiduetinj: C(impany
business they can only work thn- <:h tlie eompany Tliey cannot be
expelled froin the company nor deprived of their n;;ht to vet,' liy either
tie lireetors. or directors and the other sharele .M.-rs c.jmbiued.
.liiINI' sliicK iiiMI'AMKS.
IC-.i
If the husiiicMs ix ciirrifil on wlim tlif huiuIht of sliiiri'lioM«>rs is less
thiiii til'' iiiitMhrr i-LMjuin-il tiy statutes to sij^ii tin- |ii'titioii, for a ji.Tiod of
six inoiiiiis, till- iiii'inlM'rs imliviiiuiiUy hrcoiiic lialilf for coiiipaiiy ■Iclits if
tiii'V know till' inimlMf luis Imch so iiiliioi'il. 'I'lu-y luay t'nf tlu'iiisrlves
from iHTSonal iiiiliility hy siiviii;; a written pruli-st uiion tin- company,
and liy rc^'istcivii l.tt. r notityini; the Provincial Socri'tury of .sucii protest
ami tfif facts upon wliicli ii is l)asc(l. If company refuses to increase
nliiTs to till' rr.niiri'ii numhi-r its charter may be
the niuiili.'i
revoki'il.
ol iiii'n
411 Voting Th" p r;
has ii voli' foi- cacli sliari' hr
an^l a person hoMini; shanks
if his name stands on the rcirister as
on wliosi' nanii' is on thr n';^ister for shares
holds. An aliscnt person may sote by proxy,
in trust for another jjcrson may vote on them
Kjliliii;,' such shares in trust. A
ch.iirman may vote on his own shares ami al.so has a casting vote in case
of a tir. Hiivctors can only le^^'ally vote at the me. tin;,', and cannot else-
where ;;ive separate assent to proceedings.
41*4 Dividends <'aii only \n- jiaid out of the profits. If thiTr hasniit
lii-i'ii a piotit over the runnini; .■xpciises, no divideiul can he diclared, for
if the otticers were to declare a dividend out of the capital, they would
make themselves personally liaMe for the amount >f dividend in case the
company went into litiuiilatiou. Dividends that mij^ht he declared by the
directors after the transfer of any shares are pa^-able to the {)urchaser,
whether the transfer has yet V)een registered or not, and no matter when
thi' diviiiend was earned. It is a matter wholly in the hands of the
directors whether t^i declare a dividend or not, or to use the profits for an
extension of iiusimss, and tin- courts will not interfere in such matters
unless It is evident tln'V have acted in li.id faith, or iiositive netrh'Ct of
duty.
4'3:{. Liability of Directors. Thr Donnnion Act. also Ontario,
liritish Columbia and Newfoundland make every Director of the com-
panv, if he knowiiij^ly permits the ne^dect of usini; the word " Limited,"
as ;;iv<'n in section 477, liable to a like penalty. And in nil the iVovinces
if they pay dividemls (JUt of stock, they are personally liable to creditors
for till' amount, or if they make loans to shtireholders.
In Ontario, (.^ebec, and Manitoba, Directors are liable to laborers
and .ipprintices for one yi-ar's wages, providing it has been sued for
within oiii' year afteT due, and the execution against the company has
1mm 11 icturnid un.satistied ; and providing also the Director has been sued
for the s;une within one \Tar from the time when he ceased to be such
Directoi-
I'lidir Uie Dominion Act, and in Nova Scotia and North-West Terri-
tories, Directors are liable for six months' wages; but New Hninswick,
Prince Hdward Island and liritish Columbia do not directly make Direc-
tors liable for wages. Also for animal statement, as in next section. Also
if they pav dividends when the company is actually insolviMit. ihey are
personally" liable to creditors for the amount. If any Director present
when such dividend is declared does forthwith, or any director then
absent, within twentv-four hours after he becomes aware thereof and is
104
JOIST STOCK I OMI' WIKS.
al.l.' to do >o. outers on tlu- luinut.'s ol' [\iv I'.oiinl of Directors liis protest
iifiaiiist the same, nii'l within eit,'ht days thinat'ter causes such ]irotest tu
he puhhsh.il ill at l.-ast oiir ii.-wslialier as msir iis possil'le to the otliee <ir
chief place of hiismi'ssof the company, lie may tleTehy, hut not otherwise-,
exonerate liimself from liat>ility.
Maniif,'injx l)irecU)rs and ullici'rs in si;inin;,' notes, aceiptm;,' dialis.
etc . if they do not use the name of the company -.vitli tlie word ' limitrd
thev render themsidves p.'rsoiiallv Hiihl.' for the amount, and thr comp;iiiy
liahlc to a tiuf.
Al.-,o personally liahle for knowinL'lv I'erinill in;; tie' u.-in_' of a - id
without the word " Linuteil on it.
All the Provinces makt- ihc Dinctors liahle for faKe stalrmeiils m
Prospectuses, for malfeasance in otJicc for false reports of the condition of
the Inisiness; and some of the I'rovine.s if they fail to m.ike the re.juir.d
returns to (iovernment make the Direetors and otlicers responsililc for the
ue;.'lect liahle t(^ a jii nalty as well as thr eoiii[iany.
Directors act in the douhle capacity uf aj;ents .-md trust.MS lor the
Companv,and must therefore act within their authority to hind the Com-
].anv. th<' puhlic hav.- ..p]H.itunity to know, and th.> law presumes tte'iii
to know the powers of ( uiiiiMnir>, >o that acts of the Directors wh. iv
they exceed their autlujrity are voidahle and may he repudiated hy the
companv. Directors arc forhidden hy law to have any peeuniary interest
in any contract with tiie cotiip.my, and nuist not purch.isr pro]i.rty from
the company, even under execution nr foreclosure s,de If tiny ilo they
arc deemcil' trustees for the .-omiiany and must turn itov.rto the eom-
pany when repaid the price
4?4, Annual Statement. The ( ;,,\.rnnieiit e.ach year furnishes the
company with hlank forni.s to he tille.l in I'V the otlicers of the eomp.aiiy.
givini' detailed inl'ormation on eomiiany all'airs, the stockhohu'rs, tr.msters,
etc., oiie co]iy of which to he forwarded to the Covernmeiit .-md the otlier
to be posted up in the head olliee ,,f the company hefore a certain day
named.
If this is not done hy the' jiroper date the company, in nearly all the
Trovinees, incurs a penaUy of S'JO a day for eV( ry da_, durini; which tlie
default continue.s. And" every director, manager or secretary of the
c-impanv who knowinL'ly or wilfully permits such default incur-- tlie like
peiialtv.
In t)ntario a fee i.- now i-e.|uiied to he .M.ht witii the annu.il slale-
inent to I'rovincial Secretary, ran^iii;: from ^-liH) to .'?.").0(), according' to
amount of eai.ital: ami also" witli every hy law of the company required
to be tiled in the I'rovincial Secretfirys office.
41.'» Limited Liability In -toek companies a .shareholder is only
liable to creditors to th.' auioiuit of stock he lias subscribed for. This is
th',> great distinctive ieattm> of joint stix'k comiianies. The company may
be w'reckid by ijad manai,'emerit and subscribers lose the amount of the
Htock they purchased, but there their loss stops. crc<litors cannot toudi
tlieir private Ini^iness nor enter their homes to M-i/e ;ind sell. It is very
much safer than a partnership.
JOINT STOCK roMI'ANIKs.
lt,j
i iiiiino with
Dtlici' or jilacf
47U Double Liability api.liis only to cliiuiircil liiiiik.-.. A stock-
IioMlt ill a ch.u'tiT.'l lank i- liable to civilitors for doiihle tin- uinouiit of
stuck hf subsciiliid for. 'I'tiut is, in case the Lank fails he is ivi|iiin'il to
pay the whoh- of his stock, ami then aiiotlur sum <if same aiiioiiiU if
iii'eessarv. t" pay tin- liaiiks liahilities.
4'2?. Use of Word Limited The liomiuioii Aei >■<■
every ineorporateii eomjiaiiy ^liall keep paiiite.l .i|- athxeil it>
the wonl ■■ Limiteil" after the name on the outsiile of their
of Imsiness in le;,'it)le letters, also on its seal, ami invoices, receipts, iiotcH,
ilrafts, eheiiiies, indorsements, a.lvertisements, letter heails ami wherever
the name ajipears. IVnalty for nejrject to so \ise it is ^H) per day
Tlh- Dnt.ario .\ei a-, now aineniled does not re.|uire the name to he on
the outsid.' of the plaee ..f laisiness. hut if it is used the name must he in
ie^nhle characters and tlie woiM ■■ Limited " in its \nialil.re\ iated form as
last word. •■ Limiteil " asihe la.>t word of the name must also he on its
;ij,p,.,ir in all ad\ eitis. innits. on invoices, written contracts, in the
. notes, drafts, in<lorsements, lea.ses, money orders, and
tlu' name of the comnanv ainiears. In ca.ses where the words
the
sea
si;;nature to chei|U
W herever
company appears.
th
.1.1 n.il f. ivin ]i.irt of the corporate name
.ippe.if in full ;in.l in same size of letters as the rest of the
iiaekin" tM)\es, etc.. the w.ir.l ■ Limit-d " ne.d not he
mjiany, ■'('luh," "A.ssociation," or similar words, form part of the name
word" Limited" mav he ahhreviated. as "Ltd.," hut where such words
then the wonl " Linute.l" must
name. Mnrk-
in" liaeKUl;^ Ooxi''-. etc.. in.' w.ir.i ijrinon i.'.'i h'.l .■■ us.-d as that is
not deetned all ,l.l\ eft iseliii'llt .
For ne;,dect to so use the wonl ev.iy company director, mana;,'er and
employee responsihle for the def.ault shitll incur a jienalty not exceedinj,'
s;l() filr each oil'ence, and for a secm.l conviction of this olhnce a penalty
not .xcee.lin:,' ."SIOO. I'msecutions must he commence. I within six m.jnths.
in British Columl)ia and Newfoundland the p.n.ilty is ?-2.'. per day
for ne:,dect to place the comp.any name with the w..r.l " Limited ' on the
front ol their place of Imsiness.
47H. In British Cohirr.bia and Newfoundland stock companies are
formed hv K.';,Mstr".t;on instead of hy Letters Patent: as in the other
Pi. iviiice< in Hritish Cohimlna no company consistini; of more than
twenty persons, and in Newfoundland ten persons, can carry on Imsines.s
within the scope of the Stock Companies' Act for the purposes of e^ain
unless rej^istered as a stock comjiany. or unless workinj; umler .some other
Act or Letters P.itent. The r.^maiiider of this chapter apflies to P,ritish
Columhia .and Ni'wf. pun.ll.an.l
4?!» Memorandum of Association To forma c ijiany any five
or more p.-r-..>ns, t"enty-one years of ,a^'e, may -uhscrihe their names to
the memorandum of association, ami forward the same with the necessary
atti.lavits, Oovernment fee, etc., to the l{e;:istrar of Joint Stock Companies,
and thus hecome an incorporati'il company eith.r with or without limil<'<l
liahility, accurdini; to the articles of a.s.sociation.
If ii.iv incorjiorated company carries on husmess wlieri the number of
members "is less than five for a period of six months tliereafter. every
member that is cognizant of th.it fact li.coiii.s personally liable for debts
contr.acte 1 .liirini,' such period.
it;o
.lOINT STOCK fnMI'ANIi:s.
In Nc\vfininilliiii<i iiiiy tliit-i' nr ijinri' [ursdiis tniiy siibscriln' tlicir
iiuiiR'H to a iiniinirainliiiu 'if fv-sociiitioii iiinl ri>;.'isf(T us ii conipimy. Kfe
tor ri'<;istiTiii<,' wlicn rnpital dm-* not cxci-cil #10,000 !■- ?I0, iiml wlim it
in S'i'i 000. 11 iVi' of S"2.').
in New foiiniil:itiii com'siioiiclrricc is !i(Mrfssc(l to
'I'lic Ilonoiiitili' 'I'hi' Colonial ScoiTtiiry,
St. .lolui,
4H0. Liability Limited to Unpaid Shares U hn. th.' lial.ility is
to lie liniitt'ii to tin' iiuioniit iiii[i:uii on tlir ^li.ins tin- nii'in(.ianilnMi of
a.MScx'iatioii must ('ontairi:
1. Tilt! name of the projiost'il coniiiany, witli tlic aiMition of tlif w^ni
■ I.iniiti ■! ' as the last word of the iiann'.
-. Till' jijai'f wlicrc the rcj^istcrfil (.tlicc of the conipany is to ho
locateil
'.\. riir olijccts fcjr whirli tlu' comiiany i-> lo i.r ( ^talilishrd,
+ Tin' tiriiu for its continiiancf, if for a tixfil tiinc
"> A il''('lai'atioii that tin- lialiility of the nii'nihrrs is to hi' liniitid,
tl, TIm amount of cajiital. liivi'li'd into shares of tiM il annMint
4SI Mining Companies ri'strict^il to minini,' oiirnitioiis may have
HI their Memorandum •! Association a )iro\ i-.inn that tin.' siiaruholdei's
shall Hot lie liahlf lieyond what they ha\e piid on their shares. (See .Sec.
50 of tile Coiiiiiaiiies' Act, IsiiJ, f-r' I'.. » '
iH'i. Liability Limited by Guarantee \\ her.' the li.ihijity of
mem hers is to he limited to the amount they res[iecti\ely undertake t.>
coiitrihutc to the assets in the ev.nt of the conijiaii}' heiii;; wound-u]i, tin-
MciiiDraiidiim ■■I .\ssociation must contain : ( I ) 'I'lie name of the proposed
company, with the addition of the word^ " Limited by tiuarantee " as tiiu
last words of the name. (2) Place of hcid otiice. {'.]) Object. (4) A
declaration that each member undertalves to contrihiite to the as.^ets of
the compan\ a sum not exeeedinij a specitied amount in case the company
is Wound up while he Is :i ineiiiliiT, or within one \ e,ir afterwanls, in
si'ttleriu'tit of lialiilities conlr.icted i-efori' the time at which he ceased to
he a llleniher, I.Si'e See tOli, )
4H;t Unlimited Liability. In companies where there is no limit
pla'"il .111 the liahilily of nieinhers i^eneral [laitnei-hip I the mem. ir.aiidiim
of as.siK'iation, hesi.lcs j^ivinj; the projutsi'd name of tiie company, place of
business, and object, must also he sii^ned by each subscriber in the pres-
ence of, and lie attested by, at least one witni'ss. This, when rej,'istered,
binds the company and the members, their heirs, executors and .i.lminis-
trat.irs, to ..bserve all its coii.litions. as thoueji it were an in^truiieiit
un.l.'r -•.il
4H4 Articles of Association 'I'h.' in.ni..r.-iiiiluni of association in
casi. of companies limiti.l by yu.ir.inte.'. or nulimiteil must be accom-
paiiicil by Articles of .\ssoeiation prc^scriliiii;; the reijiilations by which the
company is to !)e conducte.l. The articles of associatior are to bi- printtid
and si;{neii by I'ach subscriber in the ]ire.sence of, an.l att.-steil by at least
oni' witness, and wh.n rej^istered biiiii th.' e.imjiany. th.- members, th.'ir
heirs, executors .■iii'l a.lministrators to the conditions.
WILLS.
167
III ra-.' (i[ conipaiii.s liiniti'd l)y .slian:s tlic iii.iuor.iii.iuin oi u^.so^lil-
iK.ii luuv Ills,! 1m- accoiiipaniiil tiy >uch iirticlcM of iiH«<KMati()n. In caw.!
siicli articles iiri' not r.';,'Uti'if(l tin'' ro;,'iilalioiis of tin- j;en<'r!il Art. or such
of tlii'iii a.s apiily to civcli larticiilar C()in]iany, will ^'ov.ni
4K."» Features Same as Other Provinces r..i luuMc.soe Soc. 460
Stock, 4(i<! aii'l 4ti7. .\nmial -tMt.iiiriit t'or tlio.si' (ii\i(lr(i into .sliari-s, 47 +.
hooks to I,.' kciil, liiV Tlios,. Iiinit.'l l.y .shan-s or j,'uaranti.'fH to hav.-
tlir full name on outsiije of l.iiiMinj,', etc., 477. Divi.lcmi.s, 47-'
I'Ai .'V incoiiiorat'il conii'uny must have a rfi,'istcr<-il otlic- within tin-
I'rovinci' 'or 1.C liahlc. if cou'lin-iinu' Imsincss, t.> a i.ciialty not fxc.'cihn^
:<'J.'> for cscrN' >lav of such tlcfault.
CliAlTKH MX
WILLS.
4M». A Will i^ a written instrniiirnt left liy a pcr-on in wliicli he
;,'ivis direction- for lli.- .lisposal of his |iroi»rty after his dealli, A person
t~o make :i valiil will miisi lie of the ai,'e of twenty-one years, of sound
mind and live fi -oiistraint or any undui' intlnence. For married
women .see Sec. :{(;."> I Tile Lawyer's toast, ' Here's to the man who writes
his own will," should not he forgotten hy laymen. Not everyone is tit to
write a will A will slioiild nut he {\i<- last act of ,i man's life. No
wonder tliat s, , niaiiy of i hem aiv hr ken in the eourts . dictated under
intense exciteiii.nt. dr.iwii in haste, they do not rejiresent the deliher.ate
iiidi,'iiiin! of the testator or meet the re(|niremeiits of natural justice.
Soldiers in service and sailors at si-a may di-posr of their etlects hy
siiiipU siu'iiinu' a written statement of how they wish their ]iersomil
proJMTty to he disposed of
A jiersoii can oiil\ |i',a\e one will. h\it may lejive sever.al codicils to it,
hriK very will and Codicil .should he dated. It' two ..r more wills were
left hv the" testator and neither one d.ited. neither one would ha\e any
etfecl, and there would he an intestacy
■Mterations in a will would not atfect its validity, hut to take etrect
as jiart of the will they nuist he initialled on the maiirin of the will hy
iH.th the testator and tlie witnesses as evidence that they were made
hefore the will was sii^MK'd. or th.'y mi;:ht he referred to in a .se]iarate
inemonindum in anotle'i- pait of the will, and attested as jireviously
incnlioned.
In the inter], let.ilion of wills re;_'ard will alw.iys he had to the cir-
cumstances existin;: ai the time the will is made, and to the eviclent
intention of the testator. If there is any liiHcrepancy lielweeii the various
clau.ses of the will, what was written last will hold over tin- hrst written.
A father is not compelled to will any jiortion of liis property to the
cliildren, but in Ontario and the other I'rovinces, wliich ^'ive the wife a
right of dower, lie cannot (k'prive her of her interest in his real estate.
ICS
Wll I s
4N7 Chanffing; of Wills Wh.ii a person nmkcM n will, nwl thon
luili;,' >i\. lul \iMrs Ion;,'!!-. It iiflrii liicoiiu's ip css.iiy ti> llliiki' .1 lii'W will
tm Hccoutit of till' iiiiiny ('lian<;<'>t luivin^ tak> n [ i.iiiv in wIim'Ii i'h«<' it is
lH;tter ti> Imni tlif olil mu'.
A will is rt!vukeil by t lit- testator ftftiTWiirdH iiiiur_\ in;,' unl..-,^ tli-
will slatt's tliiit it was riia<l<> in nntici|>ution of riiarriu},'"-. or wli.ri' tlif
liiislxiiiil or wifi- clcots \>y inxtninunt in writing to take miijir thr will, or
wliiTi- it is inaik- in tin- exorcise of a power of nppointiMint, and the
[iroperty wouM not • tlie alienee of siit'li appointuieiit puss to llie ti'sta-
tor's heir, executor, v. . 'xt of kin.
4KH Codicil When only a few inin(»r rlian^jes niijjht Ik* <lesireil to
lie nmili- in a will, ^uineiinies, instead of niakiii;,' a new will, it is as well
simply to make a ctxlieil to ti.e will. Sueh codieil slunild s. ( f.ntli
clearly :
I. That it is a codicil, nn<l ileserilie .iccurately the will it l)elon;,'H to.
'1 It shoulil lie sij^ned and witlies.sed the >anie as a will, hut iisini;
the \V(jrd "cixlicil " in place where " will " is used
3. If it f,'ives a lej;acy to one who already liatl a i.e(|uest, it slinnld
state whether this is u second U'liliest or merely a eontinnation of ll ne
already <,nveii.
4. It advances had heen iiridi' 'Imini.' lifri imr i. p a cliiM on aecouiit
of le;iacv. .such amount should lie iioteii in the codicil.
."). If there ha-, iu^en a chani.je in lie' property, eitiei l'\ tin ac'|uisi-
tion of more or the di.spo,sal of any p.ait of llh- furne r, the cmiieil >houl'l
rcj;ulate the hecjUests accord iii;,'lv.
4HU Charitable Bequests .\(t. ,rdin_' in tin- Sta!uli-.of nnt.uio,
any charltalile ini|Uests for cliurche-i, educational institutions, etc , if mil
maile ,it iea^t ^ix months before the decea.se of the testator. ina\ be set
asiil'- by tie- ■■'Mirt--.
4!»0, Preventin.^ LitiK'ation, Sonetinies in makin;; a will the les
t.'itor a'i'i^ a cI.ium' that ni the escnl of any person commencing pnx'eed^
in),'s to break the will, such per.son shall not receive any portion whatever,
even tlioii;,'h th'-y li.id b.-eii iniTitioiied in tlie will to leceive a le:.,';iey,
4JM Who may Draw a Will The testator luiiy w rit> Ids own
Will if ll.' .|i-.^iiv> !■. .1.1 -. . .aii.l . \. ly lii.in sliouM be abl.. t.i wiitf lli^ will
Any ..tJHT j.rr^on who can write clearly the desires of the testator, but
pru.lence w.iul.l dicttite that none but a {lersoii of experienci' .iml .ibility
sleiiil.l be entrust. -.1 wil I. .--o iin|.nrl,int a m.itter. Se.. followin:; sectiot:":
VJ't In Quebec tier.' .ire thr.-.. forms of wilU;
1, Till- n..tarial will, whicli must be made befor.' tw.) not.ui.'s, ..r one
notary and twi) witne.s.ses. It need not !..■ iin.l.ated, but the notary
tyrants authentic copies.
"2 Th.' Kn^lish form, whieli any ].ersoti ciii writ.', but must bo
^i_'iH-.l in th.' [ir.'s.'nc.' of .-it least two witlies,ses. It must be |iriibate.i.
.'i The le.l.._rrapli will, which is one wholly writl.'ti by ihu testator.
It ti:^ed" '■■:■■ ^It:;..-.:^. (-n! nwi-t V- prob;itf!.
wills
ie»
4!K» Requisites of a Valid Will Ii sh.Miiil cnntiiiii
1 111.' II. nil.' Ill lull .if th.- i.'st,ii..r )iis uimtion ,iil.| ri'siilence.
'2. 'I'lii' i.liiiiii--t .if lim;,'\iiii,"' -li'iul'l li.' ■.! III'! n -. [mrato piiittjfraph
for eiicli lM'|Ut"'i
;<. It sliuiiM [iliiinly xtdtf tliHt t\\\s i-< Ins lust will an. I ii't.iiii. iit
4. 'I'luit it rrvoki's all furiiHT wills an<l l(«'>|iicsts.
.'>. It slimiM |ii-i)viiK' liow <lcbt« uikI fxiwiiHfs iirt' to Ix- piiiii.
(i. A cl.ar aii.l <l.-tiiiit<' stati-iiient of liuw tin- prupiTty is to Ijo
iliviileil, mill full iMiiiculiirs of faeli Itciiucst WIutc all tli«' pniperty of
the tt-'slatur i> l.fi t.i "ii.' p.Tsun it is not ncci'Hs.iry to specify tin- |ir.i|Mrty
ill detail.
7. It hIiuuM ;,'ivt' til.' (Iiri.-tiaii iiaiucs iti full of all tii<' li';;ati'.s. ami
if there are inure than one person .)f the sanii- nanu', the iK'cupation and
re-i.l.lice sli.)uM he j,'iven so a mistake wouM he iinpossilili'.
^. K\eentors shuuM h.- ajilMiinteil wh'i h.ixf heeii ]irevi.iusly poli-
sulteJ.
!). It shoiiM bi' proper!}- dale. 1, ami the sienatur.' "f I'^l.it.T uit-
UL'ssed hy at Ifust two persons not pecuniarily interesti'il m the will that
is. th.isi- who ari' not h'l^'atees.
jo, Th.' testat'.r sh.itilil si^'ii at the fu..t, ..f tl ill in tli.' pr.s.'nee of
th.' two witiii'sses. If the leslat.)!' is nnahle t.i write his ii.iiii.' il may he
si;,'ii<'d I.}' some other person for him. Imt in his ]>resenee or hy his .lireo-
ti.,n Or he may sij,'n l.y makii.;,' his m.'irk or haviii;,' his haii.l ;,'nide.l
w hile iHiikiii;,' his mark, pru\ idiii;; li.- un.lerst.in.ls th.' me.'iiiiii;,' of what is
heiii;,' .Line aii.l ass.'iits to it.
1 1. 'I'hi' two witnesses must not .mly h.' 1" ih pres.'iit t.ieelh.i- .iiid see
the t.'^tiitor siiiii the will, hut they must si;;n it I li.iii--.lvi's n^ witn.s-M., m
tie- |.|-i'senci' of e;u'h other, as well ,is in preseiic.' of the t.^t.ll..!'.
I J. The witnesses iimy !»■ niin. .rs il' . iM .-nough to un.lerstnn.l what
thev are doin;,', .in.l to i,av.' evi.l. lie.' in r.jurtif ni'C.'ssary. An ex.'i'Ulor
eoilld also lie a witni'ss. If .'i l.'L,'.it.'.' oi' .l.'vis.-.' w.'r.' a witii.'^sit wouM
not ili\,'di<late th.' will, hut it w.iuld \-.)i.| the b.'.|uest to sueh witn.'ss or
to a hushaii.l or wif.' ..f the witn.'ss unless there were two otli.'i- witnesses.
Till' ileath .ir snhsi'i|Uent incapacity of I'i: her or holh th.' witn.'.s.ses
h.'f.ir.' the d.'ath of th.' testator could not in\iilidate the will.
i:V .\ .le\is.' .ir li..|U 'St to a wif.' shoiil.l state clearly whether it is
in lieu of .j.iwei- .ir not in ihose I'r.ivinei's wlcre .lower is all..w.'.l. or she
m;i\' I"' .'01 itle.j to claim li.ith.
1 +, No s.'.il is n. c.'ssarx- to a will. thoU;,'h s.imetim.'s a s.'al is at-
taehe.l.
1."). Witnesses shoiilil take n.itice of thi' mental and physical coiiili-
tion ..f the ti'stator. so as to .satisfy themsiK.- that he understands what
he is doiiiLj .'in.i is comjieii nt to m.ike a will
4JM Residuary Clause Where there is a resi.luarycUiu.se in a
will ewTV laps.-.i ie:;ai\- or ln'ijUe-,t. an.l e\-ery other le;;acy which on any
;,'ronn.l fails to take eti'ecl, will fall ii.ider the control of that clause and
p.iss to thi' resi.iuary le^^.-iti'e.
4ir. When Wills Take Effect Will
r i]:r -tsLuturs death, :::: ! ::!! -i
.1.) n.it take .ti'.'Ct until
■vv^tcd'at
170
WII.I.S.
the sjiiiif tiiiif \\ luittvir the iiiti-rost may bf. ' ^licli pt-rsun shiiulil ilie
liofori' obliiniii;; [)<>s.s«s.siun of the W'i|iK'st or li'jjucv he coulil disjxisc nl' it
liy will or if no will wen- hft it wniiM i;ii to liis heirs, and if such iiersnii
w . ir iii;iiii'<i liie liiishatiii (ir win- udiild inlve wnne interest its t h(iU;;h tin
jirojierty ueri' acliiiilly in pusse.-isinii.
Ill I'liyiii^ ]ini|ieity that lias ijesepiiii. .1 l,y will il^ WMr.Jiii;,' iinisl I'e
ciirefully iioteij. For instance, a farm left t<j a son withaclanse iti the
will statin;; that in the event of the son dyini; cliiMliss. or liefore ;lie
mot tier, the ])ro{)erty shall revert to the mother or i,'o t" other niemiiir- ■ f
the family, such person mi;;ht live many y.-ars and n::niy, Imtdyini,' with
out leavinij children, or before the moth.r. a- the ca-e ni.iy he, the wife
Would h;i\e ii.i dower in such lands, and if he had --iild
deed w ' luM he iii\ ,ilid.
the jiroiierty tiiv
4*Mi Probating Wills After the deccii.se of the testator, as soon as
Convenient ur liicoiuini;. the will should he read in the presence of the
jiarties interested, ami tlien provecl in the Surro^Mte Court.
Kxecutors niay perform the duties impose<l up<jn them by tiie will
wit'iout prohatin;; it. hut it is b"tter to jirobatt' every will, as that con-
.■'titutes an uuthorative declaration by the Surro;,'ati> Coin-t th.it tlie nill
is valid. It also clothes the executor with the le^'al authorir to admin-
ister the atlairs of tlie estate and enter the courts if necessary.
Wills l]ei|Ueathins,c real estate should be re;;istered as widl as jirobati d,
so that the titles of the clevises may be more easily traceil. The will, (pf
course, carries the title to the |)ro]ierty without rei^isterin;.', Ixit liy re^ds-
terinjj the title is completed in the Reeristry t)rtiee anil also ;;uards iiijainst
inconvenience from a |Kissible lo.ss of the will. With lainis under the
Torrens .system reyistratioti is es.sential.
IVobatln;; .'infl re;;i.sterin;; wills fiirnidi eviilence of their \.ilidity.
hut neither one can prevent an action from bein^ taken to cane> I th^ m.
4*J1 Devisee or Legatee is the one who receives property under
tlie will. .\ lei;aey t<i a liiend w ho < lies before the testatfir, lapses.
A legacy to the testator's ciiild wdio may have children, will ^'o to
those chiMren if the le^ratv ■ should clie hefure tile testator.
A le;r;icy toll witness is void unless there are two other eM||i|..|eiit
■witnes.ses.
A pecuniary le;;atee. who is also a debtor In the tesl.ator. must
account for till' didit on i>aym"nt of his le;;,icy If the didit ha.>^ been
oullaweil it would Im- optional with the K\ecutor whether to deduct "t
from the le<;acy or not.
Legacies not ]>aid at maturity can be sued for th^ same as any olhc r
debt, am! interest eolh-cted from tim*- when h'^acy was ])ayablo.
An uniniity or rent char<je payalilc out of land should be registered
and is as biinlinij as a niortjjaffe.
T>'j;acies in Ontario outlaw in ten years from the time when the
ri^jht fi) receive the siime accrued, mdes.s in tin- meantime part had been
paid or u written acknowled^iiu'tit had Ih-cii <,'iven liy the party liable for
]iayint nt. For other I'rovinees see .S'C. 2.")!*. i Interest on legacies outlaw-
in six years from the tii-ie it wits dui-. Money or proju-rty left in trti.st
with a trustee or e.xecutor for the legatee does not outlaw.
WII.I.S.
ITI
Miiiii'V Icl'l iiniliT :i will may Im' attaclu-'l t'nr ilrl t- unless it, is !■ f! in
trust to an exociitor. j;uiiniiHn nr trustee to lie piiiil the lei;aH'e only. I'lr
Ins inaii'teniinee wlien it cannot l.e touched exce]'t Ujion :i special order
Iroin tlie eciurt.
40H. Executor is the [m-.-m),! minieil in tlie will us the une nlio i^ to
cairv out its pro\ isidtis and lo^k after the )iro)ierty until its ilistrihutioii
anion;.' the heirs Therel'ore jierscins nl' jiroliity and hiisiness ahility
shotild 111' s, Ircted A minor e..uld he appointeil. hut he would not he
allowed tn enter- U|ion his ottice until le was twent\ "He years ol' a;_'e, and
durin;,' that time the estate would In- administered l.v the mini ir s e;uai d-
iaii or ti\' one ijijiointed hv the Surroj^ate ('uurl
An exeeutor mav he a le^^atee, (ir a creditor, oi- a dehtor. It was for-
merly thi' rule that il' a dehtor were a]i|ioiiited exeetitor his deht was
t'or;;i\eTi. hut that i-- no lon;^er the cas.v
An executor may enteral once upon tlie wo ■< ot earrym;,' out the
provision^ ol' the will, as soon a.s it has lierii jiul , ,'ly rend, l)c lore bein;;
proveil 'riiei-e i-. no law iiowe\er conipellin^ the executors to read the
will to the heirs il' ihey do not .|o so, a copy of the will may he
ohtaincd from tlie Surroi,'ate ullice, and if tlii\' have- not jirohated il tlii-y
may he comiiellcil to ]priMh)ce it hy some if the tieir- applyini.' to the
Surro;.'ate Court for hiters of adniinistration.
An executor nia\ !"■ appointeil ^juardian as well, and if not so
appoiliteii hy tlie will and there ari minor children wlio have no ^.'u.iidi in
he mav apply to the .'<urro;.'atc Court to he a[i]iointeil u'uardian.
Ar. >'Xeciitoi- ap]"iiiiled hy will dviii;;, his executor may continue to
administer the estate, imt if the di ceased executor had heeii appointed hy
tlie Siin-ojr,ite Court, then another executor would lia\e to h,. ijipoin'ed
to take his place either Ity tile Surrogate or Hij^di ( ouii.
iixMMiti'i's who eannot ai;rec as to the maiiaLTeiiient of the i-.state,
either one or all may apply to the Court for iiistruct'on 1 he court may
tlieii either direct wliat shall he don. or may itsidf assume the adminis-
tration of till' estate, in wliicii case the executor < are freed from future
liahility. In all cases wiiere exi'CUt' rs need advice they may apply to tlie
court.
l--xeciitois (Miiiiot act hy ].roxy except in imrely clerical work,
neil h. lean 1 lev .iiipi..v solicitor^ to .jo \^ iial tlev --hould do theiiiseK I'S.
4tU> Executors Notice to Creditors The follow in;; form of
notice execiitoi^ may Use in a local iii'W --Jiaper or tin' ollicial iiiiZitti :
R< estate of deceased
Notice is lierehy ;;iveii, pursuant to ( h.ipler IJli. .S.etion :!^. It.SO,.
that all fK'r'.on-, Imvin;,' claini.s a;;aiiist tlic estate of late of the
Township of C'ounty of .... (yet)niaii, or lus ciwe may he), who dieil
on or alMiiit tlie .... of IJKX). are reijuirej to deliver their claims
.ind f:ii! particulars of such cl.'ums to , of tin' tflwn nf Kxectttor,
on oi- heiore the day of , litOO. And that aft<'r the said ....
dav of ... IftOO. 1 will distrihuti' the a.s.sel.s of the saiil decea-serl amoti^
thi' parties entitled thereto, having; reijard only tn the claims of \vlii<h '
shall have received notice
\. ])., Kxeriititr.
175
\\ ii,i,>.
.%00. Discharge of Executors An .x.cwtdr, who is li.'liosml by
th.' liriiv tu !"■ iiriiiii; iinwis. ly "V uiiin^lly, may t"' (•'iiiiiiolli-il tu sliuw liin
lKX)ks Iwl'on' tin- I ''.iiiity .lunLT'' ''>' ;iny •!' tin \\fU-< who is t wciity-niio
yi';>r« 'il ii;;c.
An ixecntor tliat is luinul to he waslm;,' thf istiite or couiniittin;,' n'ts
of injvistift' ;i:,'uinst the hrirs, may l»i- rcmov.vl hy |ir(iet>fiiiii;,'s in tho
Surro^ati' Court.
Also, wlifp- an .'Mciilor, or oni' liavin;,' a lift- ostate in property, 1h?-
coint's insane the heirs cir any person interest il in tin' estate as " re ver-
sioiiist ' may apply to the conrt for ,in onler for the ailministration of the
estate ami the court will tak. the ].ro]„ riy out oi' the h.uels of the-
executor or ti iiant for life,
."iOI Remuneration of Executors i l.e .xpinses ol ix>euiors i re
a eharj^e njioii the estate, an<l the .Imls^e of tiie Surr<)<;atc Coiirl will
allow them an ei|uitalile percentai,'e of the ]iroceetls of estate or trust
fuiiils to recompense tleiii for their time ain! lahor. The executor slioulil
])Ut in an itemize.! hill of liis expenses, ainl the percentajre lie deems he is
entitleil to. usually live per cent. There is no tixi'il tariff of fei'S for
executors, hut the Juil;,'e when jiassin;; the accounts has ]>ower either to
increase or iliminish the amoiuit charj^eil as seems to him eipiitahle in
each particular case. Or the exi-cutor or ailministratcr may apply to tlie
.Juilj^e of the IliL'h Tonrt or to a Master to ih'ti'rmiiie tlu' amount of
coinpeiisjition
'M'i- Intestacy is when- .a ])er.soii dies without leaving; a will In
such Ciuse if property is left, unless thi' heirs can a;;ree anion;; tlu'insrlves
as to tlie ilivision of tin? property, it must U- ilistrihuti'ii acconlinj; to the
Statutes of the Frovitiei' in which the jiroperty is situate. (See " Iniieri-
tance," Section •">07.) .\l^o if the intestate h t't monry in a liunk or other
ilehts chh' it is neces,sary for some pei"son to \>'' a|i|'oiMte(i administrator,
to 'Iraw the money or to collect the iletits. Sei- following; section :
.lOIt Administrator is the one a|ipoiiitiil li\ th.' Surro;,'aie ('ourt or
Court ol I'rihate to settle the affairs of the estiiti- ot ,i person who .lies
without making' a will.
The regulations iii each of the I'rovinces tonceniin^' the setthnient
of istates vary considerahly, as .also do the Succession Unties, hence it
is advisahle for a person aetin;; as executor or administrator to eit!ier
consult a lawyer or take full instruction from the ollice where wills are
prohateil,
Wliere a man. uinuarrii-d. dies witliout leaving a will, the fathe-r or
mother, if livin;;, and if they Im- dead, the eldest lirother, is entitled to
administer, or tlie next neari-st of kin.
liut a person dyin;j intestate and leaving real and |)ersonal property
it is not com|>ulsory for any of the heirs to take out letters of a'lministra-
tion. If the tieirs can all a;;ree as to tlie distrihution of the property
ainon^' tliemselves thry can draw u[> an aj;ieemenl to tliat etlect wliicli.
iM'ing si;,'ned hy all and sealei], will liiiirj all to alade hy it.
Till- jjroperty may then Ij.' dixideil according to that a^jreenient, and
if lilid is to 1... viiM ih" wii|o\v (iii'l le'rs all ioinin_' in t In' .|t><H| ^ive a
h
WII.I.S.
173
rffxid title. Ur tlKV may a;;reo in tlic .siiuo wiiy tn iiiipniiLi on.- as a
»ni-i(( I" .ii.-.tril>ute' tlir (.state accunliiit,' U) the statutow, or in any i.tlitr
\v,.v ,i-,'ntMl yqton. an.l it will imet all the riMjuireiiionts of the law i.s well
as woulii !»■ clone by th'' aiiiMiniliiient of an achninistrator. ami without
eo-t
I'.iit i.rii-s. unl'. .rluuali'ly, canm.i always tljns -.ettle thin- altan's,
when it l)eeones n.eessary for one or more to aji; 'y f«r l^'tters of ailmin-
i>tratioii. Any of the "next of kin" are entitled to administer, l.ut li they
.lo not, ajijily "•«• letters of admiinstrMtion any other int.'P -Ir.i party or a
en^litor n. .1 so,
An a..,ninistratoi'sihili« s are precisely the same as those of an exeeu-
tor. so aiv lii> lialiilities. An administrator must, howev.-r, ;:ive a hond
fur the du- i.eilni-niaiicr of hi- trust, while an executor usually n.M-dnut
do s.,, . .
In ca-" a will is mad.- hut no execilto,- a|ii".Hitrd m it, tie- adminis-
trator mu-i curry out its i)ro\ isions the same as an •■x.cutor would do.
As soon as an administrator is duly ajipointed he will take possession
,.f the iirop. rty ;rid divi<le it accordinj^'to the Statutes. A diild. husband,
wife, or anv >"ither jierson who may chance t(; be in i)os.session. has iio
more autlxn-itv over the property than others, unless they have a valid
le.ise in which case they nii'.\ hold it until the lease expires. unU.ss sooner
terminated by mutual consent.
When' an intestate die.s leaving' property and there are no kn^wn
heirs, a creditor (if any) may apply for letters of a<lmini.stration. The
Attornev-Ceneral is the iiro])er person to take char^'e ..f such estates, who
will attempt to discover heirs.
In cases where no will is found, or persons ciaimin;: to have the will
do not read it any of the iieirsor next of kin may apply to the SuiToj,'ate
Court tor letters" f administration, and to .secure an order for t!. produc-
\ion of anv supposed will, and to .•xamine witnesses thi'ivwith
r»04 Distributing the Estate Kxecuti.i-s nmsi i.ineiid)er that
le;,'atees are not rei|iiired to cieiiiiind jiaymi'iit, but it is the executors' duty
'.iTpay the lejracies to the ri;;hlfiil iiersons. .Mon.ys due les;atees who
cannoi Ive fouTid must either be retained, or safely invested, or paid into
court in ordi'r to free themselves from personal lial)ility.
I'.xecutors must also remember that tliey are tt> pay the le;;acies
the debt, of the testator only. If the same person were exi'CUtor for 1
husband and wife he must Hot mix the nioii. y "f the two estates,
debis. funeral expenses, and le^aciis of each musi lie paid out ot
propir estate.
I'ersonal jM-oterty of the decea.sed is tlu proper fund out ol which
debts ar" to l>e j.a'id ;ind not out of real estate. If that is not surticicnt
then any otiici r.roperty that has not been " speciticuUy befpieathed " to
any i»'rso,i .--.iii M in- resorted to. then after that the property " speciti-
cail\ liei|mi''-t" is available.
Money from an insurance policy is payable uccuniui;; in its terms.
and (Uhw liot Ix-come part of the estate unless it has been included in the
will. If not mentioned in the will the executors have nothing' to do with
it. Wliether mentioned in the will or not it is fne from all claims of
creditors if p^e '■!• "• wife or children or other preferred beneficiaries.
and
•oth
for
the
17-i
WILLS.
Executors may iiiort;;a;jf mi estate for tn'Ct'ssary iiiiprovciiifiits, l)ut
not to liiiiiself. Hf couM Mil).si'(|Ui'iitly l)Uy the liiort;,'ii^'r aiiii have it
as.sii.'iicil to liiiu and lioM it as .secuiity lor tin- rnoiiey ainl iritiii'sl
Kxeciitors ma}' proviilc lor tin- ediiratioii of tin- iiiiiior chiMn'ti aiiil
piy iii'eessjiry expenses o\ii of tlie i-m!.
Tiiey may also ereet a .su'talilr iiiouuiiuiil to liicea.seci aceuriliiirr to
Ilia station in life, ainl pay for the same out of tlie estate.
C'reiiitors not y^'t havinj; iuii;^iiieiif ni:iy stie the actinia cxeeutiir or
ailministrator if ihrir elaims }.ir n.it pud, uln-tli'-r lii'' will has liccn
prohateii or not.
Kxecutors of a ileeeuseil iiiiinl"T <>\ a partnii--lii]i tiriii ilu not ln'cnine
partners, and cannot interfere v itli lh'> jiaitm iship i)usiiess 'I'he
• leeeaseil jiartner's interest must he ascertainecl ami jiaiij over hy the sur-
viving,' partners, ami if this cannot U- done .satisfactorily to the executors,
till' exi'Ciitors may iiiler action for the paitnirshiji hiisiin>ss to lie wound-
u]) and the lussets eonverti-d into cash and divide. I a^ per ]iartiiii-sliip
n^nfiiient.
Where a .vi!l is made and any portion of the property of deceased
was not dis])oseii of in liic will it falls to the heii-s as though no will had
been made, and tin- cKicutors must divide it jimon^ them according to
law and without re;;ar 1 to the lieipiests in the will.
I'loperty Ix'iiucaihed in trust to executors to jiay ovir tie income to
a c>rtnin pei-son for a term of years or for life is a separati' trust, and
must lie kept separate from the rest of the estate, and must not he used
for [layinent of dehts except ii' the I'Vi-nt tic, it tier.- i- not siilliii,-iit ullirr
pn.pirty.
Where thiTi- is a ileticieiic-y of as.sets to ji.'iy drlit- .' sli.ill \i,- ilis-
Iriliuted /<;•" nitii, without preference, anion}; tiicm all. A del. I due an
executor lias uo preference over others, neither has a jud;,'ment
IVopiTty in another province or cn-iitry must lie manajjt'd aceoniiiifj
to file laws of that )irov':iec or couiitjy im in iti.-r where the testator
livi-d. Also, where then' is ilouht sis to ciiiaiii li-;,'acies to whom to pay,
the executors may pay the i.:oney into court and in that way free them-
selves from liahility.
Exi'culors .III' to ciili'avor to collect in all dehts within a rf.isiiii,ilile
timi- or Ix'Come ]>ersonally liahle for any loss that occurs, ispccially tliost-
dehts staiidin;^ out upon jursoiial security. I'o allow a deht to outlaw
would Iw deemed culpable nefjlwt, and the executors would liy Law be
re(|uircd to make it ^^'nocl
."»0."» Widows Dower. For the widow's ripht of dow. r m il,.- ,iif-
fereiit IVovinces .see Si'c. Ifl 1.
In ( Intario the husband aiiinot sell his real i state diuin;,' his life
time nor will it at his death .so as to deprive the widow of her one-third
interest unlesn shi> joins in the instrument and thus bars her ri;;ht. [n each
Province wliep' liower is allowed it is alwaj's optional with the widow to
acci'pt the ]>rovisions made for her in the will, or to take her dower
inst'.'ii'i, but she cannot lake both unless the will j;ives evidence that the
lM'i|uesi was not in lii'U of dower. The intention of the testator must
always j,»overii.
In Ontario, where a husband fjoes away and is not heapl from for
seven j'ears he is presuini'd to be dead, and if the widow wishes to take
WII,I.>
173
liiT ilo\v»'|- out of liis rojil rstiiti^ >lii- must t'oiimuiici' Iut iictioii sDiinliuie
within tfii yearK, t'.uit is Hevfutcoii yi'iirs from tlii' time lie went iiway,
otli'Twi.-si' lnT riu'tit of ilowiT will lif liitrml hy stututr The same pro-
vision liolcis in nil the I'roviiices The ri;,'ht of liowiT in liarreil aft'T leu
years from hushamlN deiitli. For other jnovinceN mim- Sec. "2<)0.
Willow li.i'- no ilower in lamls in whieli the hushanil had a life inter-
est only ; neith.-r has she in purely minin;,' property, ■■!' in lanils disposeil
of liy the liushanil while thi-y wi-re y<'t in a slate i>f nature ( wiiil lamls),
or in Mieli --tate at his ileath.
5<MJ. Form of Will. Tie' foil.. win;; funn c.a i-rin;,' various kireisof
li.',|ue--is may lie f. ininl useful :
1, William >mitli, n|' the City of TurMnlo. in the C.iuhtyi.i' Nnrk
inereluint, liein;; ot sounii ami ilisposin^ n.iml and inenior_v. •{<) mak'' ami
puhlisli this my last will ami testament, herehy revokin;,' all former wills
1)\ iiu' at any line' heretofore made
1st, I hereliv ajipoint my wife, il.ineil .Viie-lia, my sun ( leor^^e,
;iiei William Kin;,', all of the City of Toronto, in the County of York, to
be my co-executo,-s of this my last will, direetin^' my said ixeciitor.s to
pii}' all my dehts, funeral and testamentary expenses out of n.y estato as
soon as eoiiveiiiently may tie after my deeease.
ijui. After the payment ol my said di his. funeral and tesiaiuenrary
i-xpeti^es, I j;ive, devise and lieijueath all my real .ind persoii.-o i—t.iti-
which 1 may now or hereafter he jMissesseil of .ir intiri>lic| in in the
manie r fullowinj.; . that is to say :
."ird 1 ;;ive, devise and hcpiealh to my I'elovi'.l wife, !i:irrii-tt .\melia
(in lieu of (lower), all thai my freehold with l)uildin;^s and appurtenances
thereto lielon;,'ini,', known as Lot numher si.x, in the .second ( oncession of
the Townshi") of Ancaster. (^>unty of Went worth, ami Vv in( f Onta-
rio, colitJiinin;^ iiy admi'a.surement one humlred acres, he tlie --ame more
or less, for her sole use during; her natural life and upoi: In r dic.asi' to
my lihlren and their heirs, respectively, share and share alike
Uh I also devi.se and l>eiiuealli to my said wife all that freilmlil
messua;;'- i)r tenemi-lits in which I now reside, known as Lot No .'!il How-
land avenue, in till' city of Toronto, with the ^jardeii oiulaiildinLrs and
aii])Urleuanee-. tliireto helon;,'in;,', to^^elher with all my honselxild furni-
ture, plate, china
premises, f. II lier
the sum III' lui
'I'l'.'idi-rs' I'laiik at '
.'.th. 1 ;,'iv", (
farm known as th
cession of the
and ehatt.<ds of ever/ description heinj; in and on ihe
iwn use ahsolutelv . -dso I hei|Ueath unto my saiil wife
thou-and dollars now liepo-ili-d in my name in t.ie
I'omnl.i
li'\isi' and li"i|Ue;ah to my Soli, Charles Ivlmund, lie'
Wain lit ( lro\ e Place, ln'in;; 1^)1 No. H, in the first ( '. m
Township of Voik in the < 'ounty of York, l();.'cther with
all the crops, stock and utensils which may he thereon it tht; time of my
decease ; and also tlir piopi'i-y in the eity of Toronto, t hit , known ns the
Arlinijton lilock, liein;; Lot No IS, on the north side of Kin;^ Mreel, suK-
jeet to a lee,icy of five hundred dollars to he paid to my nephew, .Fnhn
Ali'xandi'r .Smith, in two cipial annual instidments of two hundred and
lifty dollars each without interest, the first payncnt to U'come due and
payahle when lie hecomes twenty-one years of aj,'e, said legacy to be the
first chare.' on the s.'iid jn'upi'rty.
17t.
WIM.S.
nth. 1 j;ivf -.iud lK-i|Uiath t<i inv liaiiu'litii (irac-, vvili- ot .I.imi'.h I).
Alliiii, fifty slmres in ilii- ciipitul .sttjck i>i thr I'r i\ nifiiil Natural
li:i.-, Comidiny. which vt.in.l in my n.iiui- ■m iIn- Imoks <i<i saiil
coiniiiiliv. also two th<)ll;^iiiiii cl.illar-- in (•■isli, [■ayal.li' uiit of uiy tini'U iii
till Tiiiiliis liaiik.
7tli. I "ivc ii'ul lii^iii'Mlii my ■J.xl'i \v:ilcli with chiuii ^il.ird and
aiilMii.lM;.'!' to my hrolhir, .lames Kilwiii, lor hi« own ii.--c
Mh. 1 ;,'ivf "ami hti|U(atli to my iiifcc Alii'r .Malii'la KralU as a
specific lf;,'acy, my fifty shares, iLiiml.cn'.l HH tn I'lii, l„,th inclusive, in
the Toronto Streit ilail.vay l'i)m])any
itth. I j;ive au'l li.,|ii'.'atli to my ih-jiIh'W, John Alexandei- Smith,
aforesiiiil. a lepicy of live inimh-eil iloliars l.ireinljrfore ,.ro\ i.lnl I'or I'.ut
in case my saiil nephew, .lolm Alexaniler Smitli, shall die un'h r tin ji;_'e of
tweiitv-one years, then I 'lireet that the said s."i()0 shall u'o to my sister
Ahij;ail Jane for her ahsolutc' use ami hmetit
"a11 the resiilue of my estate Loth pn-sonal ami nal not lieriiiil>efore
ilisposeil of I >;i\e, ilcvise and lie(|Ueatli unto my son ( ;.oi-.jc. his heirs and
assigns forever.
In witness whereof I have her.nnlo sei my hand and s,. d tin- fnth
day of December, in the Vear of our Lord one tlious.iii I nm. liundt. d.
Sii;ned. I'ulilislied and 1 )eclared hy the' said
James Smith, the testator, as ,iml for his Lust
Will (lit'l Trstii.ioiit/iu the l^resence of Us,
iMitli present toj;ether at the sjune time, and in
his jiresence, at his reipiest, •md in the pres-
ence of each other, have hereunto suhscribi'd
our names as witnesses to the due t'Xecution
thereof.
ClIM'.l.K.s SrVMKl'.S
K W \Vii.Li.\.Ms
.Snini ini.'hl piel.,- ih,- h .llo\\ in;,' l.e;:inuinu' loi lli.- will:
In the iianie of tuxl. Amen
I of tlie Township of in tli. foiinty of , ...
farmer, (or, as the occupation may be.) consideriii;; the uncertainty (>t
liuman life and haviu}.' property, both r.-al and pers .nal, do n..ike, puhlish
and d<-clare this Instrument of' Writ ini: my last Will .md TesLiiiient in
wonls followinn :
Kef.Trin;; to a life of three score years and ten, the siateil life of m.in.
and with it health, jieace and a larjre portion of comfort and its attendant
hlessin;,'s, the I>jrd of all tlie earth hath permitt.d me to enjoy. I woul.l
here reTider thanks to Almighty Ood for His kind ckalin^s and exteii.ied
mercy to me, truslin;: and ever iirayinj; that the residue of my days may
he an entire suhmissi(.)ii to His Divine wil' w '"or the future, he ;)in^'and
believini,' in salvatitin throu;;h the merits and meditation of Christ my
He<leemer, the Saviour of the world, my worldly ixis.sessions, I would
also at this time arninL'e and will .uid order as follows :
."•OV The Laws of Inheritance are very similiir in all the I'imv-
inces. hut where there are variations tiny will he specially mentionca in
the fnll.iwintj re'sii ittr' :
Willi \M ^Miril ifjf
0^ ^
LAWS OK rvHKIUT\V( K.
m
If there urc rhil.lreri from two Inml.nii'iM or two wives tliev Hli;vr»-
e(|Uiilly.
A lio^tliuiuoils chiM iiilients e(Hially with the othi'rs.
A (lOHihuiiious child for whom no provision is made in a will takes ii
like shiirc with the others hk thou;;li there were no will ma.le, an'l each
of thr others must iihtite enoii;,'h to make up the amount
Chililreii of half hliMHl share I'ljually with chijilreii of whole hlo,..!.
Heirs of deceased ciiililrcn take tlicir parents' share
Illi'U'itimate chilihen, that is, those txirne before marria^'e, do not
inhirit from the father.
An adopted child does not share with chlldien '■( ;• ceasi d.
Second or third uifi- survivini,' lier hiishand liivs the saijie sliaic
that the tirst wife would have taken
When- a will is made the \\ife may clioose hetween taking; what ih.'
iiushand leaves her in the will or her dower in his real estate in those
Provinces where dower is allowed. iManit^dxiand North-West Territories
have no dower, hut wife t.ikes lier share nhsolutely. ) And the wife would
he entitled to her dowei- .•\en if the jud.;;mcnts »,i,'anisi tie' liushnnd
should take the halatice and depriv.- the other heirs of their le 'acies.
If the husiuind die without lefivinjx a w ill, then in all the I'rovinces
and Newfoundlan . the wife takes one-tliinl and tin' remainin;; two-thirds
^'o to the children in eipial de;,'rei . If any of the children are dead their
descendants take what wouid liavi; come to them
If thi' wife ,s d. ad then all j;oes to the children.
If there is a u..e, liut no children, then in Mritish ("olumhia, North-
\\'e>t 'I'erritori.s N, w l.ruiiswick and Nova .Scotia, one half ;,'oes to the
widow ami the otle r half to the natural heirs of deceased. Ii? Manitiiha
the widow ;;ets all and in i )nt;irio she receives .'*l ,000 out of the estate,
(■ul then one-half the remainder, the halance j;oin;; lo the natural Heirs
of .leceas.'d, ll tln' estate, aft.r |ia\inL,' expi'iisi--, does not e.\ceed ;*l.00f).
the widow taL. s ;d|.
A wile havin;,' separate property in her own name ami dyinj; with-
out lea\in:,'a will the husl.and takes (jne-third of the real estate as ti-iuwit
hy curt.-iey, and one-third the pt rsonal properly, the <ither two-thinls
;.'oin;,' to the children. If there are- iKj chiMreii tlien one-half ^'oes to the
h.isliand and the remainder to th,. naiu'-al heirs of decease. 1. If the
hils'.and is dead, then all ;;oes to the childn n.
Neu Ih-unswick, however, makes a slijjht chanj,'e. If a wdV di.' lea\ -
in;; chililren hy a former hiishand. the snrvivin^r hiishand takes om-third
and the other tWM-thinls ^o to the children of l,otli hiishamls ei|uallv. hut
if there are children of the surviving hiishand only, then he take'-i one-
half and the oilier h.ilf ^joes to the children, and if no children the
hiishand lakes all the jiersoiial preiperfy.
If an umiiairied man or woman die withiiiit le.iviii;; a will, in t )nta-
rio, the father, mother, and surviving,' hrothers and sisters share ei|ually.
If parents are dead then the surviving; hrothers and sist'-rs come next, if
there are no parents, or hrothers or sisters, then tJK };rand|iarents, if
livini;, f^et all. if there are no ;,'ran<lparents, then nieces an>l nephews,
uncles and aunt.s ei|ually
In Nova Scotia and I'rince Kdwaril Island the whoh- amount would
I-.'
i:h
si;rcE88los nniKs
ifo to the fttth.T, if liviii;;. if n.. fatlwr. th.'i, to tlu' inotlior, hroUipr-* mv\
sisters equiiUy, and to il.'sc.'iuliiiits .)f .ioc.c>^.-l l.rotli.Ts an. I !*i>.ti is
In Hritisl* Columlna, also, it woul.i p) to tli.' f.itluT, iiiiLss the
inli.Titniio. faiiu- to il.T.-iis.'d from thi- inoth.-r, th.n it uouM p) to h.-r if
liviii" If sU,- w.r.' .Ifii.l it w.ml.i ;,'o to the fath.T .lurin;; htV, ami then
revert to the heirs uf the inotluT If u> father, mother, hrother or sister,
then t.i the hrothers aiel sisters nf ttie father, if none, or w .lescemlants,
tli.^n '■' tlie l.n.the -s aii.l si^l.rs .,f (!,,■ n.oiher aiel their a-seemhints.
.'»0K. Succession Duties Iii<»iiiari.> successi-n duties <lo not Hi.[)ly
to any .'stat.- tii.it .j.es i,. t e\e. -•.! ?l().tM)() or an estate that does not
,.x "l StiMiKOU, whieli i.a.ss,'s to |.ar.-nts, hn.shiuid. wife. chiM, ^'randchild,
daii.'ht.'r-iii law', ..r sonindaw. or t- eharitalil,. and ren;,'ious jiurposes,
""I'roiHMtv .xciedin^' S'iOOtWO and ''ussin;; t.. sueh persons a tax of
*-2 50on each ?100 is levied: when it exc Is #2()0,0()() ami so juLsseH,
.^.'. on ev.-ry ?10(). Wh.n property e.vt-eeds SID.OOO, and does nd pas,s
t..sueii .'States 10 per cent, im value, wh.n it pass.s to ^'niiidi)areiits,
uncles or aunts, hruthei-s and sisters nephews and nieces, J.') -m every
^\(H). When the property iMMpieathed to any on.- p.-rson d-i.'S not exc.'.'d
.■JL'OO it isrxeiiipt.
In Manitoba the Act d'x-s not apply to any i-.si.il.' which, alt.r pay-
ment of d.hls du.s not exee..! ?4,0()0, n..r to '.roperty pa.s.sinj; to liushand.
wife, father, m..ther, chil.l. ^jran.lchiM. daiiu'hterdnd.iw, or son-iii law ot
d.-cease.l which ilo.'s not exce.l :*2.'i IH'O.
In British Columbia tie- Act .lo.'s not apjily to
exceeding' d^.'^oiio nu' t.. pii.p.'rty passing t.i husliiind. wit
child, jiraiidchild. .lau;,'hter-indaw, "r H.m in l.iw ,>• tie-
d...'s le.t .-xiv.d Jt-i,-)!)!)*)
In New Brunswick t'.i.- Act do.-s m.t ajiply o< any
ul't'T i.ayni.'iit .)!' dehts and e\p.-nsi's of a.iininistrat i.m
any csUite not
. fath.T, mother,
ih'ei'asi-d which
estate which,
lies ni)t cxceeii
5<.->,000, .)r to property Jx'.iueath'ed t.i r.di^'ious, charital.l.- or e.lucatioiial
institutions, or to property pa.ssin^' to father, mother, hushand. w''.', ehi.d,
lau;:hter-iii law. or son indaw, which .loes not excee.l :?,">(),00()
^In Nova Scotia the Act .loes not apply to any estate wlucli,^after
p.i\ 111. nt ..i .l.ltt- .lu.l .• [lenses of a.lministration. liix'S not excee.l ?5.0()0.
..r"t.. pr..ii.-nv i.a.ssin:; t.. father, mother, hushan.l, wif.'. chil.l, ;,'ran.lchil.l.
.iau<,'ht.'r in law. .>r s.)n indaw ..f .l.-c.-as.-l where the pnip.rty value 'lo.'S
not"\< 1 .<i;.ViMM»
In Prince Edward Island ili" Act .l...s not :ipply t.. any .stat.-
wliich, after paym.-tit of .lehts ami expenses of .i.lmmistralion, .lo.'s not
exceed Si:{,()()0, lior to pr.ip.'rly i.assin;; t.. father nwitlur. linshan.l, wif.-.
in in l.iw ..f .leceas.'.l wh.r
th.'
chil.l, j,'ranilchild, dau;;ht.'-in-iiw
iiropertv .!■)•■" not excee.l ?10,00()
In"Quebec, if the estate pa.H.sini; to htishaml or wif.-, or to father or
mother or to fath.-r .)r tnotherdndaw, or U) son ..r .lautrht.T-indaw, and
.lo.-s not exc.e.i #;i(M)0, it is exempt. If it .-xcce.ls ?:?.0()i) th.ii it is one-
half per cent on the .-x.-ess up t,. <.-..O00. ami if it exce-.ls ?.-.,()00 it is one
p.'r cent. ..n d .iver W.OOO up to ?1 0,000, ami .so on until it reaches thr.'.-
per cent, for exces.s of ?:{,000 up to #200 O'M) an.l over.
If the pro{)erty pus.s.-a to hrother or sister, .)r to niece.s or nephews it
i.s three per cent.
IVSor.VKNT IlKinoK-S
179
If it ]);i»MCM tii'incli- jrniints or tli^-ir cli-iociiiiatits it i-< five per ri'iit.
If t'l liriithiT or Slater nf i^raiiilptirtiit'* "r tlinr iif»<'fiiclaiit.-< it in six
pcrci'iit If r.i tiny .hIht oi'lUti'iiil it is I'l^'lit \><-r ci-nt If to straiij,'iTN it
in ten Jier cent.
CMAl'THll \X
INS()L\ KNT l)i:in'o|;s.
Wi" hiivf no liiiiikiMi|)tcy Act in Ciiimu.i hy wincli iiii imolvcnt dihtor
cm I).' forci'il to iiiaki' ii.ssi;,'iiiiii'iit for tin' ln'iu'tit of liis rriMlitors. uikJ
wliicli will ^i\i' liiTii II ri-liii>c frijiii furtlicr prosi-cutioii lint all tin- pro-
viiioi's mid Ni'wfouiiiiiiiinl iiiivi- i'iiact>'il very fair anil ciiuitnlil'' irsolvi'iicy
lawH, wiiieli prevL'iit iiisoivi'iit tnnlrrs from cilluT fniiidulnitly 'lisiiosinjj
of thuir iissi'ts. or scttliiif,' wiili eertiiin creditors to the prejudice of
others.
rtW} Assignment In ni'sl ,,f the I'roviiues a .jehtor CUIlIlot Ije
forci d iiy his creditors to make an assi^'iimoiit in which ca.se tioth the ri'iil
and personal |)roperty iinist !»• sold uinler execution and the pnx-eeda
ratalily dislrilmted iimoii;; the creditors who file their claims with hint
within the time proviiied in each Province Th. law cost.s of the person
suiiii,' in siieli case wrmld !«■ p.iid in full Infore any distrilmtiuii of money
wiiuld lie made iinon^ the cre.litors.
Ill ( Intario ainl all the I'rovinci's, except t^iieliee, the assii^nment may
he made to the sheritr of the county, hut may Iw to an otlicial assij^nee
or to anv other rcHiilent t^f the Province which a majoritv of the crei|itoi-s
having a claim of ^li/0 and up\\.irds .isseiit to The creditors may also
make lus many suhsi'i|uent changes as they tind necessary An assij^nee
may resifjii, so may an inspector, hut a sheritl' cannot refuse to complete
the work of a.ssi(jiiee of an insolvent for that is a jiart of his official duties,
and in case of his de.at li there wi'uld he no ch;ui^e as his ileputv or successor
Would roiiiplet.' the wiiidini,'-up of the ••state
In (^uelx'c an\- cieijitor h.ivini; an unseeured cl:iim overdue for ?-2lil>
or upwards may demam
d..timent of
I th>' dehtor to tile with the court jiidi
jiMicial aiian-
liis estate for the iKiietit of his creditors, and if this is not
done within two days, or the deht paiil. and the
made « ilhiii four da\s the delitor nriv he arre.-^led.
ahandonmenl actually
."VIO. Advettising the Assignment. In all the Provinces when an
assi;,'nmeiit w m,Tde it must lie advertised in the ottieial 'r'i:(7^f and in
some local iiewspajnM'. The assignment must also Is' re;,'istereil If these
puhlic notices are not i;iveii, Inith the itssi;,'nor and lussij^nee ar<' liahle to
iieavy penalties In ( )iitario, if tile notice of the a.ssii^nmeiit is not puh-
lished in the first issue of the I hitiirin (ntzette and one other local news-
pia|ier [luhlished after five day.s from the I'xecution of the a.ssifjnment,
and also a copy of tiie aHsijjninent loj^ether with the atlidavil of the wit-
ness to its execution, then lM;th the a.ssii^nor and assic^tiee are liahle to a
penalty of ?2,'). for every day which shall pass after the i>sue of the
IhO
INSOLVENT PF.IITons
uixl
(ical
number of the now»jmi><r in wliirli thi" iu>tiff hliouM )iftv»> np|H-nn'.l until
it is iictiiallv |.iililish«'.l.
Siiiiiliirri^'i'l rf'|Uiri'inciitH exist in nil tlif IVovincrs. iiii.l for tlint
rciisiin it is safer tn make tlie assi^jnimnt to tli.' sli.ritr; or if iiia>ie to
aiiutlur iHtson the statiit.s shonl-l !«■ carefully exaMiiiied an<l fnilnwiil in
(leUil Kv.ry .lustice of tli.- I'eace lian the statutes, ant! inforiimtion can
lie olitaiiieil by any person ijesirin;,' it.
The following; may U' fotin<l instruetise
In Ontario the a».si^'nnieiit must l>e a<lvertis»'.l in one issue of tin-
(hitnrio lliit'tti; aiitl tViur insertions in a cuiitity ne\vsj>ai>er
111 New Hruiiswick it must U- inserte.l at l.ast t.nce in the Ii"!/'il
Ga:>tti aii.l twice in a local newspaiHr ; Novu Sc-otia, Hoi/.il linzrile and
one local paper.
In Manitoba it muM Im- a>lveitiMi'il once in the MutntiJni (i-i:tll
four Weekly issues in a local iiewspupi-r.
Ill British (,'oliimbiii once in tile linynl Uiizillr an<l twice in a
newsjiaper.
."»l 1. Form of Notice to lie publisheii, or one simil.ir:
NkTHK to t'llKIHTORH.
Notice is hereby ;;iven, that of the town of , m
theCountvoi" ' dmrilwan' ne reliant or as tiie case may !«•). has
nia<le an a'ssi<;niiient to me in trust for his creilitors.
A meetiiK' of the sai.l creilitors will be hehl at my otlice at the Town
of oiu\V.".liies.lay) the .hiy of , I'.t , at 2 oclock. pin
(or as case- may lie), to receive htatemeni of atfaii-s, appoint nieiii of
inspectors, an.l for ;:iviiij; ilinrtion for the ilisjHisal of the assets, etc.
Creilitors are re.|Uesteil to tile their claims, .luly verified, with me on
or Ufore the day of .such meetiii';, after which dale I .shall proceed to
distribute the ass«'ts of the estate, haviii;; repird only to those claims of
which I shall then have received notice.
A. II, .{"Hujltrr.
In Newfoundland, either a ilebtor or n creditor may, by petition,
addievsed to the .Supreme Court or toa Sujireme Court .lud;;e, simply statinj:
that the debtor is unable to pay his creditor* 100 cents in the dollar If
the debtor is the petitioner he must attach to the petition a. schedule of all
his assets an.l liabilities. If it is by a creditor he must also attJicli such
schedule, if he is able, and if not h"e must pive a .>tatement of facts sutli-
cient to .sntiNfy the court or iud;:e that an order for hearing: should be
made. After the lii^ariii^', if the debtor is declared insolvent, and the
estate may be vested in a trustee for distribution amonj,' the cieiilors,
and after the estat.- is tlius wound up, the court or judjie may ^'ive the
debtor ii eertilicate of insolvency ami a dischar<,'e.
M'i Fraudulent Preference. Any gift or c.nfe.ssion of jud;;ment
or transfer of property or any security, such as a chattel niort;,'a^e ;,'iven
within sixty days of' in-olveiicy or as.si{;ninent. whether forced or volun-
tary, is considered a fraudulent lueference and may bo set asiije by an
ncti<m brou};ht for that i.urpos.. It i,s valid as Ktween the parties them-
selves, but not as to creditors
INsiilA KN I liKlirnltS
]H\
III yu.'U'C -suit to avi iisiili- n frinuiilliiit iv.iiviyaiifi- iiiuy In; bi'iii;;lil
any tinio witliiu one yonr froiii tin- tiiin- wlicn tli- cnilitnr liiscoveroil tlio
frjiuiliilriittniiisiictitiii. ami tlif ]iiirty iiiiiy !«• iiui'le ti> ri'Mton- tlu> jiropcrty
ur itn viiliic I'lir tlif l>fiii-fit iif tlu' cr<Mlit<irs,
Thi' (»iiiiiii'i st;ituti' stiiti's SI) concisely wlmt cotistitulus ft frmi'l-
iil. lit iin'i'iniK'i' tluLt «•■■ litTr (|U()te it lr/•'«^^('l, iiikI tin- siiiii.- will lioKl
jjixmI in I'licli I'nivincf : " Kvcry ^'il't. cuiivcyiini'''. iis-si^'iiiM.-iit. ur tnin>t'»T
iif liny i>rn|i.'rty. ri'ui or juTwiniil. nift'le liy n ]hth<iii at ii Mnn' when lie iH
uii.ilili- ti> piiy iii^ ililitnin lull, simll hm n;,'iutixl liin cri'litors, to tin- t-xtont
tliut they nil' hiinlcred. ileliiyed, or pniuilir.-d, !..• \ittiTiy voiil."
Siniply Wm<i in ilctit when n niiin triiiisl'i-r>i nny of liis i.ro|ierly,iitliir
to ft creditor, wife or reliitive. does not ninke the transfer fraudulent so
Ion;; lis he in »till ftl-le to pay his delits in full. ' Frftudulent intention "
ninst lie shown bv the creditors tn^fore n sftle or tnuisferof reiil or iM-rsoiuil
j)ro|)erty ciiii In* ciincelled A lar;;e |iiiyiiient to one creditor or ii trimster
of certain jiroiierty Just on the eve of ji.ssi;;iinient for the Ijenetit of cred-
itors, would hiive the ii|il'eiiriince of a fraudulent iiil.-ntion to defraud
other creditors and would In- set aside if assailed
Transfer of real or personal pro]ierty liy a [.. r-in when solvent or
U'fore "oin;,' into Im^iiiess cannot Im- set iisidi' if the persiai sulisei|Ui'iitly
becomes insolvent, unless it can lie shown by the creditors that it was
part of a scheme . ) defraud,
III Ontario an overdue debt of not less than :*K), must lie due a rri'd-
il .r ImImp he -an take lepil pr(»ceedin;;s to set ftside a sale or pi ft or
aHsi;^'iinient, iiiither can he combine his claim with another cri'ditor so as
to make It lar;,'e enou;,'h. and then take proeeeiliii;;^
(ioodsmay also be brou;;lit into a d.^alers jilace <if businesH in the
re^jular way n;,'hl iqi to the time he may !«• forceil to maki.' an assi;;n-
iiiriit without havin;; any taint of fraud in the transaction on the dealers
]i.irt. unless he was .|Uestioned by the wholesale house coiicernin;; his
tiii.incial rondilion and misiejuisented that [Misiiioii.
.%■:( Priority of Claims I" distrilmlin;: the assets of an insolvent
th.- lii-i !hiii_' t'l !"■ I'iid 1- taxes; second, rent for one year; third, sal-
aries for tlirie months . in <Juebec wa'.;cs for servants for one veir and
clerks three mon'hs. fourth. morti,'a;;es ; fifth, ;,'eneral cre<litors
As to the priority of creditors to the eti'ects of a ]iartneiship linn, the
partnership cri'ditors come first for all partiii rship etfeei
creditors first for all individual property, after tlii^
ralabl\- di\ ided
-■, and individual
ill'' ri'iii.iinder is
ti.r moving; out "t
ipeil liv ;i 'Teditor
r»l4. Absconding Debtors The :;u.,ds ..f a
ill'- i>lace, but not 'lilt of till' C'liiiitry, caiiii"t 'e
iiiil'ss under an execution.
In case of a person )n.-\u<i indebted to a sutricient sum, which varies
in I lie ditlerenl Provinces, and absconds from the Provinc' leaving; eflects
li.ibli! to seizure und'T an I'Xecution or attempts t.i remov such personal
propertv either out of the Province or from one county to another, or
keeps concealed to avoid service of pnM'ess. the creciitor, by luakini^
atli'l.ivit to that effeet may jiroeure a warrant t'l nttaeli such of the ^joo'ls
as are liable to seizure for debt. Care must be taken, however, not to
MICROCOPY RESOLUTION TEST CHART
ANSI nnd ISO TEST CHART No 2
1.0
1: 1^
1.4
12.5
.iiU^
i^
I.i
_
1.8
1.25
J.6_
^ /APPLIED irvWGE '.nc
182
INsni.VEXT DEHTORS.
seize the exemptions or to stop their reinovjil or there woiiiil be n casi' for
dainiij^es.
In Ontario, if the debt is not less tlian Si nor more than SlOO, the
writ of attacliment may be obtained from tlie Ch'rk of the Division Court,
but over that amount from the Jud^'e of tlie (."ounty I'ourt. In Quebec
attachment is allowed if the debt is ^.'i or upward.
In Kritisli ("ohunbia, if the debt exceeds ?100. the writ iiiay issue
from the t'cunty Court if within its jurisdiction, if not. then from the
Supreme Court.
In Manitoba, if debt is not less than 810 nor more than If2.">0, the
".vrit may issue from the County Court, over that from Queen's P)ench.
In case of absconding; from the Province the clebtor loses his exeinption.s
unlc:s8 the family ha.s been left and are in need of such goods. Then the
exemptions will be in the option of the Judije.
In North-West Territories, if the amount of debt exceeds S,5(). a writ
may issue, and if aliscondini: debtor leavrs no wife or f.'imiU no property
is exempt.
In New Mrunswick. for .a sum of S40 and upwards, writs may issue
by a .Indite of the Supreme Court, and also from County ('ouit when the
del)t is within its jurisdiction.
In Nova Scotia, if tlie sum i> ?S0 and upwards tin- writ may issue
from the Supreme Court, or the County Court if debt is from 1*20 to >*400.
Prince Edward Island if debt is ?•'):), and Newfoundlaml if 820. the
'OO'ls mav
be attached before juilt,'ment.
A debtor lea\ ing Canada and j^oiiij; into tlie Unitecl .States maybe
followed and suit brouixht in the American court. The Canaxlian law
prrriiils i I) thr r d .sv . but the " homestead exemptions " over there are so
numerous tiiat in t)ie majority of eases nothing,' could be recovered.
Also, .a jud;;n.ent obtained in any of the courts in any of the provinces
of the l)ominiou of (."an.ad.'i may be sued u])on in an\' of the States, It
would be necessary 'ji obtain an exemjilitieation of the judj^'ment from the
court wheri' the same is cnti-ri'd, under the seal of that court, and then
sue up(ru it in thr ]iropi'r cnurt of the State where the delitor resides or is
ilomiciled.
."il."*. Al/est of Debtor The fiction \-< that no one in Canada can
be •irrcsted for debt, but it is mily true beciusi' other names are u.sed for
the cause of arrest — fraud. ab,sc<indin;; debtor, contempt of court, etc.
All the Provinces allow an abscnndin;; debtor to be arrested and held
for bail, also imprisonment for fraudulent assit^ummts, obtaining: ^'oods
under false [iretenses. and fnr contempt of eoin-t
In Ontario, Manitol a and Pritish Columbia al^sconclini; debtor can
only be arrested and held for biiil by a person haviiij,' a claim a<;ainst him
for ^100 or tipwards.
In Quebec, if abscondin<,' fnim <^)uel»c and Ontario ami debt is ^.'JO or
u]iward
In New P)runswick in lii|uidateil claims if over #20, writ for arrest
may Iw obtained from the Sufireme and County Court before jud;;ment,
but for a sum not certain an order from a jiidjje must be obtained
Nova Scotia's lowest sum allowing arrest is S20, when writ may
rni.i.KCTioN OK ArroCNTS. 1^3
issue from County Court, luid from Supreme Court if delt ih $80 and
ui)wanis.
Prince Edward Islami, if debt is ?32 writ may issue from the
Supreme Court.
Newfoundland, if delit is ?oO absconJin;^ debtor may be arrested.
1 to
aililfs
CHAPTEU XXI.
COLLECTION OF ACCOT^NTS.
r»IO. Entering Cases in Court. Merchants and others who have
accnunts th^'V find it necessary t<.i sue, can enter their own cases in the
Small l)el)ls' Courts, or the Divi.sion Court of Ontario as well as any
solicitor would do fur them, -i i i
The plrtintiti', when entering,' action, must leave with the C erk, by
post or otherwise, a simple statement in writing,' (with as many cop'es a,><
there are defendants) of the cause of acti.m. If an account, it may oe m
the usual form of an account : in case of a note, a copy ; and of any other
written instrument, a concise statement of it <,'ivin<: its purport. Must also
^'ive his jiost-otlice address, and ftiU name and jiost-oHice address of the
defendant. Where a layman is tlius entering' tlie eases for suit, the Clerk
of the eo'.irt will always i,'ive the information that may be nreded. As a,
matter of faet, there is nothing,' to do but to i)Ut in the accmnits as aliove
stated and [lav the fee for the summons.
In Ontario, if the account is under SIO, the cost ri^dit throuu'
jud<;ment will be only ?l,-2.) for clerks fees, or Sl.tio includinj,' the '
fees for service of summons, exclusive of his mileai;e
When the amount exceeds S^IO, the co.st inc-eases according' to the
amount of the bill, but in no case will exceed S2..i().
Actiims may be taken in the Division Court in followinj,' cases :
1 All persoiiiil actions where thi' amount claimed does not exceed
SCO ; and in per-^Dtiul .actions up to .'?100, if the parties C(in-.ent thereto in
writinj;.
2 In liijuidated money claims, that is ni Irs and written instruments,
up to S2()0.
3. In ualiijuidated claims and deni.an
breach of contract up to .*100.
4. Absconding debtors where claim is nut less thai
S200.
,"). P'or n-plevin if value does not exceed .^(SO.
The fees for the inferior or Small Debts Cuurts in all the provinces
are abotit the same aiid process of enterin<; siiiular. If the debtor puts
in a defence and the case comes to trial it would be better in the most
of ca,ses to employ a lawyer to conduct the CJise at court, but up to that
point there is nothing in 'these petty cases of debt for a lawyer to do.
Sll Defences. When .any person is serveii with a summons they
should not let the few Latin words in it scare them. The summons states
Is of debt as accounts, and for
4 nor more than
IS4
Cnl.I.K'TIOV (iK ACCf)rNT.S.
his part 111 cdiitract . or,
■rt'onii it. liiit tlmt tin- (ithrr paity n'l'usiMj
part ur tn t!ir wiidlr claim .jf th'j
t\ui number of days in whicli a, ■lefencu iniist lie t-ntered or ju(J;;in.iit may
be ^'ivcn by d.'fuult. If th.- d^feinliint has anytliin;; to jjaiii by duh'udin','
tl»e suit, lie has the rijjht to set uj) anyone or more of several ploas
a^^ainst the claim made aj,'ainst him :
1. He may claim tliat hi' ]v\y perfoinii
2. 'I'hat he lias offered t
to accept it ; or,
3. A counter-claim as an offset to
other : or,
4. Tliat the claim bad become outlawed : or,
."). That performance was impossible. (1^ Tbrou
as ii^ditnint,', tornadoes, inundations, or death
an invaiiini,' army.
The summons will always n.ame th.' numli")
the defence must lie tiled with the Clerk
The .statement of defenc is called a 'Dispiit.' vote," of which the
following; will serve as a _i,'uido to those unfamili.ir with tli'' I'oniis, th.-
name of court and Province, of course, may be ('h,in;;ed to suit It may
nt by p.ist, or delivered persoii.illy to the (Jlrrk."
;li tiie
(2) By imbli(
.f day.'
acts of God,
enemies, as
witl
nil which
be
No,
to the
."VIH Statement of Defence.
Divi-i IN ("mciit (iK [Name],
In thk [Ni
Between [;,nvL name], I'laintitr, and [;;ive name). Defendant.
Take notice, I dispute the Plaintiff's Claim in this cause. [Here may be
specitieil the "grounds of defence, statutor\' or .ithiTw ise.]
Dat.'d this day of A.I). i>^!).
[SiLTii.'itiire]
To the Clrrk n|' the said court and to the said Plaintitl'.
iilH. Judgment is the decree of a cjurt delivered afteraca.se has
been decided. In Ontario and ne.irly all the Pnjvinces e.\-ecutions may
is.sue any time after jud;,'ment within six years witiiout an order from the
court, but after that an order from a judi;e is neces.sary. (For time when
jud^jments outlaw, see Section 2.')7. ) For the number of days after jud^^nnent
before execution may issue fertile different courts in the Various provinces
see foilowini,' Section :
5'iO. Execution.^ If the jud;,'ineni or ;>mount of ilamajfe is not paid
within the time specified in the judgment, an execution may be obtained
to seize and sell the debtor's jjroperty to recover the amount of the
judgment anil costs The laws of each Province, however, exempt from
seizure under an execution sufficient property to i n.'ible the debtor to
continue his regular avocation. (See P^xemptions. ,
In Ontario, in the (ount}- and High courts ixecutions may i.s.sue
immediately upon Judgment, and bind both goods and lands from the df»te
of deliver}- of execution to the sheriff, ami any transfer or mortgage made
thi'reafter and before seizure would be void ; init executions" from the
Division Court do not bind the goods until after actual seizure. Executions
require to be renewed every three years.
In the North- West Territories tliey m.ay issue immediately after
COLLECTION OF ACCOr«-T,S.
ISA
'riii'v liinil till- L;')'>'i>t
xccpt tlcoso transt'i'i-ri'.l
i-suf forthwith .li'trr
juilgnuiit, ami i;x[iin' in two yi'iirs uiiK'hs rftiewi
from the timo thi- writ is licliveri''! to ihr shuritJ
to a l"'ihi-li'lf purchaser.
In 15ritish ("ohimhia exfciitious a;;aiiist u">'
judj^iiit'iit in the Suproniu ami County cuurts.
In Manitoba, in the Queen's Bench may issue fortliwitli after juil^-
ment, or any time witliin six years with(}ut an order from a judge, but
after six years leave must be obtaiutd. In County Court six days after
judj^nirnt, or forthwith on judj^e's orler. Sherirt' hoMs inori y for three
months to be ratably divided among execution creilitors.
In (^Juebec executions both against goods and lands cannot issue
sooner than 15 days after judgment, except in cases where attachment
is periiutte(l.
In New Ilrunswick, Nova Secjtia and Prince i'Mward Island, both in
Supreme and County Court.s may is.sue forthwith, unless an appeal is
pending, and any time thereafter for 20 years. They bind goons and
cliattels of tlie debtor from tlie time they are given to the sheriti", against
all ]iersons, e.xcept limvi-fitli purchasers.
In NeWi'oundland, in th'> District ( 'o\irts executions may issue
immediately after judgment ; in .'-iujireme Court, in cases for payment of
money or recovery of land may i.ssue fcirthwitb, tnit in all other cases in
14 days. Must be renewed every year.
.%'il Executions Binding Land. In all the Provinces execution.s
may bind the lands of the judgment debtor. Executions against good.s
cannot be tiled against lands until an atteinjit to recover against the goods
lias failed, and tin- execution been returned marked " No gooil."
In Ontario all executions issued from tlie County and High l"ourts
bind both gijods ami lands from the date of delivery of execution to tlie
Sheritf. Laml, however, cannot be sold bef(jre one year from time the
writ is delivered to the Sheriff. In the Division ( 'ourt executions of ?+()
aiin u|)\v,'ird may issue ilirected to the Slierifl'. in which case they al.so
birul lands of the debtor tlie same as those from the High and County
Courts.
Division Court judgments of S-IO ami upwaiils, that have been
returned marked " No good," and all County Court judgments may be
recorded in the Laii^l Titles Otlice, the same as other instruments allietiiig
land.
The Act saj's the sheriti' sh.ill not send certificates of executi(jn to
the Land Titles Office unless ujHin written rei|uest of the plaintiff or his
solicitor. Lands against which an execution has l)een rec')rded cannot be
sold until one year after the writ of execution has Ijeen tiled, ainl then
only by giving three months' notice of sale. These entries in the Land
Titles ( )tfice must be renewed every four years in order to continue to
bind the land.
In British Columbia judgments registered in any Registration Dis-
trict, that Registrar is reijuired to forwani notice in writing to all other
Registrars in the Province, and from the- delivery of such notict; the judg-
ment binds all the property of the judgment debtor in the Province.
Priority of registration creates priority of claim. To be kept good they
must be renewed every tlir.'e veai-s.
1R6
COI.I.KCTIMN (IK ACCOL'NTS.
Wlieii ill! iissigniiiL'iiL or ciinctllatii/ii of a judf^iiu'ut is ri'^'i stored,
notice is also sent by the Registrar to all the other Uej,nstrai-s of the
Province.
In Manitolui judgments issued from the County Court for a sum
exceeding ?+0 may l)e nconlod in the Land Titles Otfipe. 'i'liey mast be
renewed every twi years.
In the North-West 'I'erritories judgments for .^'jO and upwards may
be registered against lands. They bind from the lime of thr "'eceipt of
the writ bv the Slu-ritr, but the land cannot be sold within less tlian
twelve months theri'after.
In Nova Scotia judgments from the Su]>reme and County Court may
be recorded against lamls, and execution may issue any time within six
years without an or<ler from the court.
In New Brunswick jiidgments in the Supreme and County Courts
may be registered and biml lands in that county for live years, when they
may be renewe<l.
In I'rince Edward I^laml judgmrnts issuing from the Supreme Court
bind lands cjf the judgment d.'btor from time of entry of judgment pro-
viiliu" a minute lias breii tiled witli i,iie judgment, liut lands cannot be
sold until after six months from issue (if statute execuli'in. Those fri.m
the I'ounty Court <inly b'ind after a levy has been made.
tVi'i- Judgment Summons. In case there is not property found
with which to satisfy the judgment claim, most of the I'rovinces permit
the cre<litor in suits before thr small debts or inferior courts to ha\f the
debtor sinnmomMJ before the court to be examined on oath as to the
disposition he may have made of his property. Kvery such summons
should be obeyed, for the person not making liis ajipearanee, at such lime
as directed in his sununons, before the court, to be examineii on e'ath as to
the disposition he may have made of his prope-t;. , may be imprisoned for
contempt of Court.
Afti'r such hi;u-iiig before the .hidgi', thr latter may order a weekly
or monthly payment, an^l if this sum is not paid the debtor may also l)e
imprisoned for contempt of court. If circumstance's should arise after-
wards by which this aiuount cannot be paid, the debtor shouM go to a
lawyer "and have a statement prepared to bring the matter bebire the
iludge to have his first order set asicle or changed.
No other jutlgment will be enforced against .a debtor while lie is
paying off in tliis way one judgment.
The debtor may also be imprison, d if be refuses to answer ipiestions,
or to ]iro<iuce papers and books re<iuired by the court, or for a fraudulent
disposition of ills goods.
In Ontario the Division Court Act pro\ ides that in case of mort-
gages where the principal or interest is sued for .separately in the Division
Court the Judge cannot commit the debtor to gaol on a judgment sum-
mons in any ca.se where it could not be done on a judgment recovered in a
I'iglier court tliat is bir fraud only.
Tlie Act is further amended by taking from the Judge the authority
to commit to gafil for non-payment of tlie sum ordered to be ]iaiil alto-
gether, or by instalments, if it can be shown that sucli payments wouM
have dep.rived the debtor or his family of the means of living.
rOLI.E(.TIOK OF AfCOCNTS.
187
Tht' Act low virtually allows coiiiinitinciit to f,'a<il only in caHts
where there is some element of frauil. Commitment may then be for
40 ilays, instead of 30. as previously limited.
In Ontario jud},'ment summons only issue out of the Divi.sion Court,
cost of sununous ami luarint; the case is ?2..")0.
C^uehec, IVincc Edward Island and North-We.st Territories do not
use the judj,'ment suMiiiums j)ri)Coss except for examinatiim.
In .Manitolia the limit of iiii[irisonment is 40 days.
't'ili Garnishment. All the I'rovinees allow money due a debtor
while yi't in the hands of a third jiart}' to lie attached or ;;arnisheed, hut
they all exempt a certain ainoiiiit due wai;e earners.
Salaries of officials under Dominion (lovernment, salaries of judt;es,
pensions, and teachers' superannuation allowances, and moneys deposited
in Past-otfice Savings Hank are exempt from j^aridshment by creditors,
or .seizure in ca.se of insolvency.
Money due a mechanic as coitfract price of work instea<i of for waj;es
is not exempt.
In Ontario money in the hands of a third party due a mechanic,
workman, laborer, servant, clerk, or em[)loyee for wat,'es cannot be piriii-
sheed unless the sum due the mechanic, etc., exceds ?25, and then unly
to the extent of the excess. In case, however, where the debt wiis con-
tracted for board or lodjiiiif,^, and in the opinion of tiie .ludi,'e the exemp-
tion of S?25 is not necessary for the maintenance of the debtor's family,
then the amoiuit to be .secured by the ^janiishee will be in tlie option of
the .)uili,'e,
A single man with no one depending on him for suppi)rt has do
amount reserved to him by law against a garnishee. Neither have other
classes of people who are not wage-earners, nor Provincial ci\il servants.
In .Manitoba and North-West Territories the amount is S"2."),
In Nova Scotia. !*40, whether marrieil or single. New ISrunswick,
S20. also (iovennnent I'ificials. Prince Edward Island, one-half the wayes
due iir accruing due.
In British Columbia, S4() per month.
In Quebec if the amount claimed exceeds :*.^, may be attached before
or after judgnient
'*'i4- Exemptions. All the Provinces reserve a reasonable amount
of property exeinjit from seizure under any execution, a landlord's war-
rant in most ca.ses.
Where the deb*or has mure of any kiml of jiroperty or articles than
are exempt lie is entitled to make choice of the part he wishes to retain.
The bailiff" or officer making the seizure lias no legal authority to interfere
in the selection.
All the chattels so exempt fri>m seizure as against a debtor, after his
death, or in case he should abscond, leaving his familv behiml, the widow
or family, should there be no widow, are entitled to.
In Ontario the following chattels are exempt from seizure under
any writ or from distress by landlord, or for landlord's ta.x :
1. The bed, liedding and bedsteads, including a cradle, in ordinary
use by the debtor ,.iiii! his familv.
188
COLI.ECTInS (iK AiTorNTS.
2. 'J'he noci'Srtitry and nrdiiiary w.'jirm^ a|i|i.irrl of tin- .l.'litor aiul liis
family.
'.i. Onf cookiiifj NtdVf with jiiprs ami fiinii>(lii!i;^s, oiii' olluT luiiiiii^
stove with pipes, one crane ami its appeiiihi;;<'s, one pair of andirons, one
9ft of cookin;; utensils, one pair of toii^js, one shovel, one coal scuttle, one
lamp, one table, .six cliairs, one washstand with furnishinrfs, six towels,
one lookinj;-f,'lass, one hair bnish, one comh. om- bureau, one clothes press,
one clock, one carpet, oin' cuplH)ard, one linxMii, I'l knives, ]2 forks, 12
plntes, 12 teacups, 12 sauctTs, oiif su;^ar basin, one milk ju^', one tcajjot,
12 spoons, two pails, one washtub, one srrubbin;j brush, one Mackin;.;
brush, one wash board, threi' smoothing; irons, all spinnini; wlncls, one
weaving; l(K)m in ilomestic use. one scwin;^ machine and attachments, thirty
volumes of Ijooks, one axe, one saw, one i;un, six trajjs and such tishinjj
nets as an' in common use. The articles in this sub-division not exceed-
in;; ii\ value i*!.')!).
4. .Ml necessary fuel, meat, tisli, llour. and vej;etables actually pro-
vidril fi.r family use, not more than sutlicietit for the debtor .-md his
fiimilv lor SI) days anil not I'xci'eilini,' in value the sum of ^-K).
5 Due cow, six sheep, four hojfs. and 12 hens, in all not exceeding; in
value #7'T. ami foinl therefor for .SO days, and (Jiie dc>^',
('). Tools and implements of, or ch.ittels (jrdinarily iised m ihf delitor's
occu])atioii to the value of 8100.
7. Hees reared and kept in hives to the extent of I.') hives.
The debtor may, in lieu of keejiinii the tools and implements men-
tioned in .section (i, elect to receive the proceeds of their sale in cash u() to
?100, in which case the otticer exocutinjj the writ wo\dd pay over to the
di'btor ^<l00 if those gcxxls sold for th.-it mncli, net. and this amount the
creditor eeiuld not seize.
Nunc of the articles ennmi'rateil in snb-sectiwns H. 4, ."). t) and 7 are
exeiiijit from seizures in satisfaction of a di'bt contracted for that iilentical
article
In Manitoba. ■/) The beil an ; beildin:.' in eonunon use for
debtor and his family, .-md , also his household furnislii;i;;s, not exe.e
in v.ilue 8.')00.
(.)) The necessary an
his t'aniily.
('■) Twelve volunes i
axe, one saw. one fjun. six traps.
(d) The necessary food for tl
that may then be on hand.
(>') .Six cows, three oxen or three horses nr nudes, 10 sheep. 10 Jii;;.-),
•lO fowls, and food for the same for 11 months. The horses to 1 x.'Uipt
must be such as are used by the debtor in earninj; his living.
(/) The tixjls, ajjricultural implements and necessaries used by the
debtor in the practise of his trade, pr<.)fession or occupation to the value
of ^.■)00.
(g) The artich.'s and furniture necessary to the performance of
religious service.
(/() The land upon which tti.' <iebtor or his fannly .actually resides, or
cultivates, either wholly or in part, or which he uses for grazing or other
purposes to the extent of lOO aeri's.
or^lmarv wi.'arin
>f books, till
the
liiii'
ajiparel of the debtor au'i
books of ,1 professii mal man, one
tor and his familv for 11 months
COI.I.KCTIdN I'K AcrorNTS,
189
((■) Tlic 1k)iis<', Imrns, stiihlcs Hrid ffiics on tli< liebtor's fiirin
(/■) All t!i>' ii'Ci'ssury .sc('cln of viiiious varieties or rfx.ts for tin;
proper Heeiliiii,' mid cilltivillioii of HO .lel'es.
(/r) The actual nsidi.'iice or home lA any person other than a fanner,
provi.lin;; the same liots not exceed the value <if ^l.'iOO. If it is worth
more it may Iw sold providing; :*1.'){K) out of the ]iroeeeds is paid over to
the debtor.
None of tlie proper! V in this list is exempt if the deht is h.:' the
Banio article.
The ■■.\eniptions do not hold iii^'iiinst dehts due municipiilit ies for seed
;;iain.
Kverv aj,'reement, even in writing.', whereby a person waives or
abandons his ri;.'ht or privilege (jf e.\<'ni|ition is absolutely null and V(jid
(irowin^' cro])s cannot be seized and sold until they are harvestnl.
In British Columbia. No exempti.jiis a^^ainst sale for tax or
distress for rent, exe.pl lod;,'ei-H' {^Mods, and a limit of three montlis' rent
ai,'aiiist {.joods sold conilitionaliy to the tenant.
(iM The li(.>niestead, so re^jistered according.' to llie laws of the
Province, if not exceeding,' in value i?2,.')l)0, is absolutely exempt from
seizure or sale by any process at law or e(|uit3-.
If it exceeds in value S2 ')()(), iIk'U the excess only is subject to
seizui-e an<l sale.
Personal jiroperty to the value of #,'i<)() is exem[it. None of such
property is ex. nipt it tin; ilebt was contracted for that identical article.
The fee for the rej^istration of land as a ■'homestead" is .*5. This
does not iiichide the re^istirin;,' of the title but simjily the homestead.
In North-West Territories the following: property is exempt from
seizure vuider writ.s of exeeutiou ;
1. The necessary and ordinary elothini; of tin' debtor and his family.
•J The furniture and household furnishiuL^s helon;_dni; to the debtor
anil Ids family to the value of ?.')()0.
:!. The necessary food for the defeiuient's family durinjr six montlis,
which may include grain and tlour, or ve^'itables and meat, either ]irepare<l
for us(; or on foot.
4. Six cows, three oxen, horses (jr mules, or any three of them, six
she.'p, three pii;s and fifty domestic fowls, besiiles the animals the defend-
ant mav have cho.sen to keep for food purposes, and food for the same
for the inonths of November, Decendier, January, February, March and
April, or for such of those months as may follow the date of seizure,
j)rovidip^ such seizure be made between the 1st of Au;.'u.st and the :i(lth
d;iy of April next ensuin;;.
,5. The harness necessary for three' iinimals, one wair<;on or two carts,
one mower or cradle and scythe, one breaking' ])low, one cross plow, one
set harrow, one horse rake, one .sewinj,^ machine, one reaper or binder, one
set sleij^hs and one seed drill.
fi. The books of a profe.ssional man.
7. The tools and necessary instruments used by the defemlant in the
practise of his trade or profession to the value of ?"200.
iS. Seed r'rain suthcieiit to seed all his land under cultivation, not
190
coM-EfTios OK ArrnrSTs
t'xcpcditij; SO iicrps at thf niti' of twu I)U,sIi(>1h [ht iwr<\ clffi'iiilaiil tn liavu
choice <if .sceil. mni 14 IhisIicIm of p<)tiit(>i'.s.
!•. Tilt; hoiiiestoail of tlif clffeniiaiit, ])rovi<lfil tin- siiiiu' he not moro
than ItiO acres, in case it l»e more, the surphis may lie sulil suhji'(!t to any
lien or enoumhrance thereon.
10. riie house ami huildinjjs occii[iieil hy the ciefi'n.lant aiiil also the
lot or lots oti which tlie same are situate to the extent of #1, ."()()
No article is exemjit from seizure, except f<jr the food, clothin;; ami
iK-'dilint; of the defendant
article.
and his family, if tin' debt is for that .specitic
the exemptions from sei/ure under I'xecution
ieddin<r, kitchen uteusila and tuol.-i of trade or
In New Brunswick
are the foUowin;; ;
The wearinj; apparel,
calling to the value of ^100.
In Nova Scotia the following articles arc exempt from seizure
under any writ of e.xecution :
1. The neces,sary wi-arini; ap]iarel, beds, heddin;^ and bedsteads of the
debtor and his family.
2. Oie stove and pipes therefor, one crane and itn a[jpiiidai;e.s, one
pair of andiron.s. one set of cookinjj utensils, one pair of tonics, six knives,
six forks, six jilates, six teacups, six ,s;iucers, one shovel, one table, six
chairs, one milk ^w^. one tea])ot. six s[)oons, one spimiinj; whi'el and one
weavini; loom if in ordinary domestic use, 10 vohnnes of ri'lij,Mous books,
one water bucket, one a.xe, one saw, and such tishin;^ nets as an- in
common use, the value of such ncjt to exceed ^'20.
">. All necessary fuel, meat, ti'-h. tlour aivl vef^etables actually
provided for family use iuid not more than sutiicii'ut for the ordinary
consumption of the debtor ,ii\d his family for SO days and not exceeding
in value j?40.
4, One cow, two sheep and one hog and food therefor for 30 days.
■"). Tools and imjilements oi, or chattels ordinarily used in the debtiir's
occupation to the vah;e df :?:iO.
None (jf the articles enumerated in sections 2, H, 4 and .') art^ exempt
from seizure in satisfaction of a ilebt contracted for that identical article.
Quebec :
1. The beil, bedding and bedsteads in use by thi' di'btor and family.
2. The ordinary wearing apparel of the debtor and his family.
3. Two stoves, jiipe.s and other acces.sories, household effects to the
value of .*.')0, fifty volumes books, family )iortraits and sewing machine,
4. Fuel and fijod sutJicient for the debtor and his family for three
months
5. One span of plow horses, or one yoke of oxen ; one horse, one
summer vehicle and one winter vehicle, and the liarne,s.s used by ii carter
or driver for earning his livelihood; one cow, two pigs, four sheep and the
wool from such sheep, cloth manufactured from such wool, and hay and
other fcxlder for food for such animals, and the following agricultural
implements : One plow, one harrow, one working sleigh, one tumbrel, one
hay cart with its wheels, and the harness neces.saiy for farming p\irposes.
COLl.KCTION (>F ACCOUNTS.
1!)1
<i. Tools liiiil iiiiplctncnts u.seil in traile to the vhIuo of ?200, iind bees
to extent of fifteen hives, iiiid Uxik.s ri'latinjj to his profession, art or
triKle to value (,r »20()
7. Hooks of llCCoUIlt, litll'S of ilrlit Illl'l utlliT [jHJMr^ 111 ]><>-,Hl'SsiiiI| of
the debtor are exeiiipt. Al.so .sacred vessvls used for reli;;ioii.s worsliiti,
iJ.iiiuiiUiry allowances (granted by a court, sums of motiey tM-i|Ueatlied
upon condition of their beiii;^ exeiiiiit from seizure, money or pensions
given as alimony, wages and salaries not yet "lue, pay and pensions of
persons l)eloTiging to the army and navy, .siilaries of school teachers and
emoluments of clegynien due for actual services, salaries of public otKcers,
and provincial civil servants to thi' extent of two-thirds or four-tifths,
acc(jrding to salary ; wages of workmen and laborirs to tin' I'Vtint of
tliree-folirths.
."•"i."* Interest The legal rale ni interest in Canada at the last
ses,sion (jf Dominion I'arliameiit was rei'uced from six to five per cent.,
but we have n(j usury law. A notr drawn where nothing is .sail, about
intenst will not draw interest until maturity, but if not paid at matiiiity
it will then commence to <lraw fiv.' prr cent A note <lrawing a higleV
rate than five per cent,, if not jiaiil at maturity will dro|) to tive, and a
note drawing a lower rate than live, if n^t jiaid at maturity will rise to
tivc per Cent.
It the rate is over or under tive per cent., and it is ilesired that it.
should remain at that rate after maturity al.so, a clause' must be adiied
like the following: "With interest at the rate desin-d) until maturity,
and thereafter at the same rate until paid."
Any rate of interest that a man agrees to pay and is written in the
note, mortgagi' or other instrument, will l)e collected, jirovided, that if
the rate of interest agreed to be paid per day, week, montli, or any j>eri<id
less than a year, exceecj five per cent. /" r uinnnn no mori' than five jier
cent, can lie recovered, unless the contract states the yearly r.ite of interest
to which such other rate is ei|uiv,Tlent. This p;iragrapli does not a]iplv to
mortgages on real est.ate
Compound interest eannut lie eollectetl unles.s it is .-igreed in the
cdiitraet to be paid.
Hook Accounts differ from Notes. A book aec<jutit overdue will
not draw interest, unless the merchant Iia.s it jirinted on his invoices and
bills he gives with the goods that interest will be charge.l after a certain
date. Then it can only be five per cent., unless the debtor is willing to
pay iiKire. Simply iiaving eight or ten per cent., as the case might be,
printed on the invoices does not make tlie charge legal, and tli>' debtor
may refuse to pay anything over five.
.ludgments also draw five per cent, interest. Chartereil lianks are
allowed .seven per cent,, and collect it: but there is no penalty if they
charge more.
In Newfoundland the legal rate is still six per cent.
Ui-2
MEt'HANIOS AND WA<iK t:\KNKU.s' I.IKN A< T.
CHAITHH Wll
Mi:«"iiAMrs AM) w A(ii; i:.\i;Ni:i;s i,ii:.\ .\( t
H'Hi Nature of Lien Ai-coriiin^; to tlu' prDviniuiis of ilu- al)uvc
Ktntiu< unli>-. Ill' .si;.'iiN :iii ix|iri'.s« ii},'iVfiiii'iit to tlif cuiitrarv, uveiy |i».'r«on
»vlin ipii'toriiis any liilmr, ur wliu t'lirnislirs iiiiy iiiiitiTiiil to Im' iiscil in tlie
coiistriii'tion ot" any liiiiiiiiiii,'. !jriil;^i', fi-ufu or nnytliinf,' in I'ttct, t'roni a
c'istiTn to II riiiiroail. I'or any owniT. contnictor, or suh-contriu'tor, liiis n
lieu iijKUi tile jiropiTty tlius tTfctfil, und U|H)n llie land i>ccmjifd tliiTfljy
for tlu" price of sucli worlc or material.
In Xewfouiniiaini \vft;jes for twelve clays liave a lirn on hiiililin;^s,
etc., and for railways and niinett for thirty day.s.
.%'i« Limit of Lien The lien whether claimed hy the contractor,
siih-c( III tractor or uthir [urMin, cainiot make the owner liahle for more
than the sum justly owin;; by the owner to the contractor (which inclmle.s
the wiips or material for which that contractor is liaMe to tliosi> under
liini). In Manitoha the claim mi'.st not be les.s tlian ;*'J0 to ]»• a lirst
lien on til'' ]iro|Mrty
.ViH. What a Lien May Include- A claim for lien may include
cluiiiis ai^aiiist a.'iy nuinbir I't iirnjii'rties, and any number of persons
cliiiiiiin;; liens upon the samr property may unit'' ihtrrin. Kueh lien
must liowfver. be viritied by :irtidavit.
r»'il>. Protectinx Owners Kaeh of tln' rroMin''^ r<M|nin's tin- .lu i,or
as ihc wiirk |iiii;,'ri'ssis v> ri'Iaiii ,i certain lierciiitaj,'o of the iiiDUiy dur ihe
contractor lor thirty days aftc^r completion or abaudnnmitil of tlh' work,
with which to s.itisfy lien claims Hr is not liabK' for any ^^irati-r ,sun>
than this for any liens of wliieli In has not, bi'bjre makin^^ payment,
received notice in writin;,'.
In I )ntario anil .Manitoiia whiu contract dm's nut exceed lfl"',Ot)0 the
]i.r cent.
nt. if Contract doe.s
un lir gs.'j.OOO: and
percentage is 20 per cut., when it exceeds that sum
North-West Territories. 10 per cent.
In New lirunswick and Nova Scotia, 1 '> p<r i
not exceed .'51,000; 12i percent, if over ;? 1,000 an
10 per cent, on all other sums.
In Hritish Columbia on contracts of over ^'>00 tlie owner is rerjuired
to be furnished with the receipted pay-njll, jjivin;; names of laliorers,
amount due and paid. Ilr must rrtain amounts due laborers, au'l no pay-
ment made in the absence of such pay-roll is valid aj^aintit li.n holders.
A copv of the payroll must also be ])osted up in the works on tin' first
lei,'a! day after pay day from twelve noon to one o'clock ji iii.
In NewfiiUiidlaiid owner \u:iy ri'tain 10 ]ier cent, for thirty days.
't'.Ut Registration of Liens. A claim for a Hen may be recorded
in tie- Ki';,'isti-_\- Oiiiei', i >i- Laii'l Titles Oltice for the district in which tlu'
land is situated, and in Hritish (."olunibia may also }»- in othce of the
Government ai'ent. It shall state :
MECHANICS AND WAOI-EiRNEIIs' MEX ACT.
• 'i:i
1. The naint) iiiul residence ( 1 ) of the person rhiiniin;; the li , » of
tlic "wnt-r of tlic [irn|icrty to lie elmr;,'c(i, ^;f) of the perKoii for whom the
Work wan {xrfoiiiiiil. or iiiiiteriiil fiiriiiHheil ; uImi, the time within whicli
tin- Work WHS to 1m- cloii,'. or materiiiN furri •(.■ tl.
2. A short ileHeription of the work done. <ir umteriiils fumiHhi'd
•i. Till' HUni eliiilin d to he due, or to Ijeconie due.
4. A description of the land (nunit>er of lot, etc.), tu he 'har^^rd Miilli
cient for thi- purjKwe of reifistration.
3. The date of e.xpiry of tlw' period of creijit (if any, a^treed for
payment of work or inaturial.
Every claitn must he veritied hy allidavit.
A lien, when re^istep'd, U'coines an encnnhranei' ajjain.st the pro-
ferty. Tlie fee for rr;^isterini; ii lien for wiip's i.s aiioiit twenty-Hve cetitM.
f Ht'veral persons join in oiif plaiin, a furtli'T fee of ten cents is ehar^jeij for
every ])erson after fhf tiist In Niwrnun j' in.i t u cnty-tivr eeiits f(jr ijich
person lifter the tirst.
in ( Inturio and .Manitoha the Act states that for waj^es up to thiily
days it is not necessary to rei;is*er the lien, and third parties must inquire
conerniiii;,' wages due if they would he wife.
."»:U. Time for Registering Liens A claim for a lien hy a con-
tru'tor or suli eoiilractMi- may In- rei^istciiil li,-fore or durin;,' the contract,
or within thirty days after its completion.
A claim for lien for m.Urrials may '.le re>;istereil hefore or durin;^ the
furnishinj,' thereof, or within thirty days after furnishing; or piiicini; tiie
lust <if the niati rial.
A elaiiii for lien lur services, wai;es or work may 1m- n';;i,^terrd any
time durin;; the |n-rforiiiaiu'e of the service or work, or within thirty days
after the completion of the M-rvice or tin- last day's work for which the
lien is claiinL-il
K\-(-ry lien not ri-L,'istrr.-d within the timi- im ntioiKd here ceases at
tin- e.xpiration of that time, unless action has lui-n liripiiirl,t to realize th(-
claini and a ci-rtitie.ite thereof duly re;;istere(i.
Thirty days is the time allowi-d within which to re;_'i''ter tin- lit-n for
Ontario, Manitoha and North-We.^t Tcrriturics ; .-ind thirty-om- days h r
Hritish (-'olundiia.
rt'.i'i. When Liens Cease. Kvery lim which has been duly
rei,nstercd ahsolutely ceases to e.\ist after ninety days from the time when
the work or .service ended, or the materials were furnished, or tin- i-xjiiry
of the period of credit, uidess in the meantime an action to realize the
claim under the pro\isions of this Act has hteii instituted an<l a certificate
thereof duly rejjisten-d.
y.tH. Priority of Lienholders. Liens hav.- priority overall judf;-
ments, exceutions. u.ssiirnnients, or j;arnisliiiu'nts issued after such lien
ari.ses, and over all payments maile on account of the .sale of the proiierty
or a morti,'ai;e thereon after notice in writini^' of such lien to the jieison
maKin;; sueli payments, or after the n-j^istratiou of the lien.
Amoiii,' till.' lienholders themselves each cliiss sli.-dl share the proceeds
reco\ cn-d /,rii r<it<i accordiu;,' to their srveral classi'.s and rii:;ht.s.
13
v.n
\n:ru\Sirs AMI WAUE-KARVKKS LIK.V A'T.
•'>tt4. Prirrity for Wriges. Kvitv incolmnic or lnhoror whose lien
is for wu<,'i'^ --IihII. to till' rxiciit 111' tliirty ilays' wajjfs, luivc priorit" over
all other cliissi's ol' liens to the extent of tlie aniouiit of the pereentatje
reserved from the contraet price. Ail niich ineehaiiies or lahorers share
]>rt) lutfii in the sum recovereil, \Va;,'i'-e,'uiiei-s iiny aUo enforce a lien
before the contract is comyileteil
In case of a contractor or sub-contractor makint; defariit in finishing
liis contract, the percentay;e <iue such contraetor ir sub-contractor for
work (lone or materials furnished at the time when the lien is claimed
by \vj);^e-earnei-^ cannot be u^ed for any other j)ur|io--e, or for |iayiiient of
daiiiaejes for the non-l'ullilment of the contract to the prejudice ol' the
wa;;e earners.
Every devic by ■■my owner, C'-niractor, or --ub-eontr.ictor to defeat
th'- priority tliii-- ^'iveii to waLje-eariier-- I'ot th 'ir wa;,'es i^ null and void.
."»;{."»■ Transfer of Lien. .\ lienhoM'!- may as--ij;n his right of a lien
b\' ,111 instrument in writing. .\ li'iihol''. r dying, his right of lien passes
to hi'- Ji'T-oIiid i-epre>"iitativ.-,
r»'.Hi Discharge of Lien. A lien may lie discharged by a reci'ipt
signed by the claimant or his agent, duly .luthorixed in writing acknow-
ledj;ing payment and verified by atiiiiavit •' ' registered. The fee for
registering the discharge is tlie sanie as for registering the claim.
•WJ. Vacating a Lien. I'pou payment into Court or receiving
.su:licient sei/inity. i 'i' upmi ntln.'r grounds, the (.'mirt or Judge may vacate
the registration of the lien,
53H Lienholders Deir.anding Terms of Contract, etc If the
owner or his a^ent refuse to '/\\i' iuf irmation t'unei-rning the terms of the
contract, or knowingly falsely state the terms, or the amount due and
unpaid till "eon when dem;inded by a lieiiholder who sutlers any los.s
th'f'hx' sli.all b,' lialil'' to liim in an action to the .•miount of such loss.
."»;{!> Mode of Enforcing a Lien. It is not necessary to issue a
writ of --nniinons but iiier.ly iii tile in tie- proper otiiee a statement of the
claim \erilied by allidavit.
Any nuniber of lienholder^ h.aving ,iehum on the s.-mie property may
j(.iiii in tie- .-letion.
An action brought by any lieiiholder is deemed to be brought on be-
lialf of all the other lii'iiholders on the property in ipiestion.
In Ontario an action to enforce a lien may be trie<l by a judge of the
High ('(jurt, or by the Master in i 'rdin uy, a Local Master of the High
Coiu't. or Otiieial Referee, or :i .ludge of the ( 'ounty Court
In Iiritisli Columbia the iiroceedings are in the County Court.
In .M.miloba, in C)ueeii's liench
Iti North-West Territories, in .Siipi-eme C'ouri,
In New Brunswick, County Cmut,
In Nova .Scotia, undi-r J*200 m,iy be in County Court, over tliat in
Supreme Court,
.'»40 Cost :. entering Action In (Ontario and most of the Prov-
inces, wa^e-eariiers li.ive nothing to pay, and the cost to Others is only
nominal
MKiHANH
AND \VA(;K-EAl!\EliS lAV.S ACT.
195
.■»41 Payments to Defeat Lien Claims. No iiaynicnts madr tnr
tin; purpoM: ul' licltatiiii,' :i claiiii liir a lien :irr lfj;al.
!*■*'(. Contracts to Waive Remedies Void Kvciy a^^'minrnt,
vt-rhal or writtoii, fxpnssfii or iiiipiii'il, liy which any workiiian, lab"i-(T,
Mcrvaiit, mechanic, or other pi-rson fiiiployiMJ in any kin<l of tnamial lalK)r
uiiivo« thi^' applicati()n of the various Acts which pro\iilcs rumciiies for
the recovery of wa^es hy such employee, is void.
This section in Ontario, Mauitoha ami most of the other Provinces
Would not ap]4y to any I'orenian. nianai^er, officer or other person whose
waives are more than #15 a day.
.'»4^ Removing Property Affected by Lien Durin;,' the continu-
ance of a lien none of th'' [iropcrty atii.-eted ly the lien can he removed to
the prejudice of the lien ; and the attempt at such removal may he re-
strained on application to the Hij,di Court, or to a Judjje or other officer
havinj^ power to try an action to realize a lien, the amount of costs to be
at the discretion of the Court or .lud^'e.
544. Form foi' Claim of Lien. A. H. iname •>f claimant), of resi-
dence of claimant I, under the Mechanics and \\'ai,'e-earners' Lien Act,
claims a lien upon tlu' estate of (name and n sidince of owner of the land
upon which the lien is claimed), in the unilernientioned lan'l in respect to
the following' work service or matei'ials); that is to say, (j^ive a short
description of the work d(Mie or materials furnislied) which work 'or
ser\ iee) was (or is to \iv done (or materials were furnished; for (name and
resi(Jence of person upon whose cndit the work was done or materials
furnished) on or before the day of
The amount claimed as due (oi- to liecome due) is the sum of S . . . .
The followini; is the description of the land to lie char;,'e(l (;^ive
numlier of lot, street, or concession etc., sufficient f(jr the purpose of
reffistration).
When criilit Ims liii'ii i/iri'ii, (/(.•</;•/.■ The said work was dou'' (or
materials furnished) on credit, and the perioil .if eridit aj;ieed to expired
(or will exjiire) on the dav of 1!J. . . .
Dated at this "day of A.l). 19
fSif,'nature of claimant.)
i>4.'». Laborers on Public Works. In Ontario in ca.se any con-
tractor or suti-contriictor for any pul.'lic work makes default in jiavment
of waives of any foreman, workman, or laborer, or for a team employed on
the work, the claim for wa^'es must be tiled in the otlicM of the member of
the K.\ecutiv.' Council who let the contract not later than two month.s
after the claim becanx' due, and payment will be made to the extent of
any securities or moneys for securin;,' perfc)rmance of the contract in the
haniK of the t.^-own at the time of HIinj; the claim.
.'»4tt. Lien on Articles Repaired. Every meclianic or other ner.son
who has bestowed laboi, money oi' material upon any chattel, as a wa;,'on,
origan, etc , has a lien upon it for the .■imount of his claim and holds it
until it is paid. He nnist keep the article in his possession to retjiin tho
lien. The property must also be cared for as thouLdi it were in a ware-
house. In cas«> the amount due is not pai<l within three months from the
time it --houM have bei'n jiaid, he may sell it liy auction uu ^ivini,' one
1f)(!
MKi'HVNirs AND \V.\( ;E-EM{Nf:its l.IK\ ACT
wi'ck'.s notice in ,i l<ic'nl ni'\vs]iii]i.'r stiitiiin tlu' imiue i)t' the persD!! iii-
tlrhtcij, the aiiioimt of the di'ht, a di-cription of tin- artipli- to lie soM, tinie
aii'l place of sale, name of atictionerr A like notic<' in uritiiif,' niu.st Ke
left at the last known place of residence of the owner, if a resident of that
nninicipality. After payinnit of deKt, costs, etc., the balance of jirocoeds
of sale must Ipi' paid over to the delitor if api)lied for.
In British Colninliia, two weeks' notice must l,e irivrn in the ni'Ws-
|),i|ii'r, .ind a notice of the resnlts of the sah- .sent to the debtor.
In New Hi-iiiiswick, the udvertisin^r is to he done hy postei-s put up
in thri T or four public jilaees insti'ad <if by tie- urwspaprrs.
•"•47. Copyright In ("anaila a co])yri;4lit may be obtained by the
author or jiulilisln-r of any Unok. picture, drawini^' map, chart, etc., which
hoMs for 28 yi'ars fruni date of copy ri;,dit. and renew,il for 14 j-ears by
author, the widow or children. The fei' is :<1 for re;;istr,ition and .')() cents
for a certificate of reu'istration, which is f. irwanleil to the .author. Three
coj)ii's of the work must be forw.triled to the Department of .\i;riculture,
except in case of a paintiiiic or sculjiture. etc., a writtiMi description will
do insteacl of the three copies. Kver\- article copyri^dited must contain :i
notice o{ the copyri^'lit. Any person who inserts such notice without
havinj; a copyri;,'ht, is liable to a penalty of .*:iOO. An infrini,'enient of a
eopyri^jht incurs a heavy penalty and the confiscation of the works. To
secure a c i[)yri;;ht write to
Till- Hiiiiiir'iUr till Minister of A'jriruJturf
(I'lipifl-i./lif lirmir/,), nttmni,
who will forwanl ;i copy (]f the Copyri^rht Act .and full information, so
th.it any person of ordinary intelli<jenc>' may do all the C(jrrespondence.
No jiostage is rei|uired, as the letters '^o free.
In N'ewfounilland onl}- two copie-s are rei|uired, and correspondence
is with the Olouiai .-' eretary, St. John. Fee, §1.
.'•4S Trade Marks. A '/'nfml trade-mark, -uch as " Pure (lold,"
whieii a merchant or manuf,actuit;r uses to < list in;4uish his ;,n)o<ls of various
kinds from those of others. m;iy be reijistered for #.'50. There is no limit
to its duration.
A s/tfriiir trade-mark, which i.> only used for one kind of i;ood.s, as
" li.H.H." (Burdock Blood Bitters), may be rejjistered for S^"), and stands
for 2.'i years, and renewable.
Industrial desi;;ns, as h-iter heads. Labels, etc., may \>o re^'istered for
85, wliich .secures it exclusively for five years, and an extension of five
ye.irs :?'2. A copy of the Act may be obtained from the Minister of
Ajjriculture (Trade-mark Branch) In Xewfoundland the fee is :*20.
54!). Patentright. Nearly any article or machine that is new ami
useful may be patented For full itiformation write to Th'- ('mnmisnioni'r
(if I'liti-nfs^ (Jtt'nrii, Ciinmln, who wiii forward a copy of the Act.
Tlie fees for the various periods areas follows: IS years, ?()0 ; \1
years, i!;40; G yearn, 820 ; fee for a further term of 12 years, !?40 . fort!
years, 820; for lodjjinj; a rnvent. 8"); fees to n';,dster'a jud^'inent, 84 ;
to rejrister an .assi^nimeiit, ,"*2 : attachin<^ a disclaimer to a patent, 82.
For Xewfoundland the fee is 82'>, and the period 14 year.s. Address
the Culiiniiil Secntarij.
INDEX
SVCTION I
At)9t'iiniliri)i ili'litors 509 51")
Wiifii >;o'm1s iiiiiy l»« !*fizy<i r)I4
Wlicrt ilelitor nmy ^tv arreste'l. . olii. r)2'J
Acceptame of Ciintnii t» 'M 'M
Hv mail iir tcli'>;rtt|)li 37
Of . [rafts Isw .Iraftsl lti'2, 17:t. 174
(If cviTihif Kills Itlit
(i.-iRMal, ami (lualitied 16;t, ItU
t'oiiiiitifnial, partial IB."), ItiH UiT
Ai'rommiiilatuin iinti" Kit
AiiMmiits, iiitrrcsl uri Si")
Collr. ling "ill)
Uutlawiiig -")K
Atiriiitiistrattir fiiKt
A^^cMiv, I rcatii)!) of 221, 224
Ternunatitin of 2.1.')
A),'i'nt,a|ip(iiiitiiii'iitof 223. 22.')
( Icniral. spwial 228, 22!», 234
l.iiiiit ■ f autiuirity of 227
I'lTsnna! I.ialiility of ... 231
I'litilic. ilraliiig with (oautioiii. . .23:), 23t;
Implied iliiti«'s of 2.30
Notic cs an. I t.-ii'li-rs to 2:W
Agreement, by ninlual as.sfnt .30
Not to i-n^a>;B in Imsineas 19
To sell personal property 9, 31t)
To sell real estate 3.32
Verbal a)ul written agreements 11
To hire, form of 2.39. 240
Assent, to pi'opf)siti4)n 32
Time to l)f given .3.3
Obtained liy frauil, or force 34, 3,'j
Obtained by mutual mistake 36
(Jiven by post ...... 38
Assignment, see insolvent debtor .509
Au. tioneer, who ean aet 3.30
Au.tion saleH 329
Und.riiidd-rs at 27
Barter 313
Kills uf ex. hariiie (see drafts) I.j9 174
l!dl ..f -ale. lorm .>f 319, .32(1
Hoartlers" and lodgers' goo<la 422
Monil for lost note, form of i.')l, 32.1
liuying st(,len g')<)d8 324
Certificate of deposit HI'A
("liangiiigof wills 4.S7
Chattel mortgages, how to write. . . .265, 267
Korm of , 270
Registration of 26S
Reniovalof gooils 269
M iturity. . 271
.Mortgagee may sue or seize 271
Keiiewal, forni of 273, 274
.Assignment of 27.')
Oisehargi'. form of 276, 277
.Moitgagee taking possession 272
Iiiipoit.int <'autions 279
K'-Iieung an art iele destroys lien .. 279
Mspi'tise m foreelosing 278
Outlawing of '^61
Cheoues, full form of 198, 199
Vlesentment of 2(KI
Certified, forged 2(11, 202
Codieil to wills 4H.S
Colleetion of notes, .Irafts 1.S6196
Cluarantv for eolleetion 96, 18.')
flKCTIOH
OiUeetiotiof Accounts (see entering suits) 516
( 'oiiijironuse Ill
(,'oiiilitional sales, lien note 348, li"4
When registration is necessary .■!49
(.'opy of lien left with vendee, ..... 3.54
KetakiiiL' posst.ssion .350
Time for I t.demption goixls 3.') 1
Notice .if sale, form of 352
Thill parties asking information. . . 'io3
( 'onsiderAtion in contracts ... .3!*-45
In iiegolialile p.iper 46
In ciintracts under seal 1.5
Sufhcient, good, valuable 39, 40, 41
Impossible, illegal 48, 49
Insiiriicient, failure of 47, 51
( 'ontracts 7-84
Verbal, and written 8-11
Kxpres.^ed ami implied 12, 13
Kxeciitcd, executory 14, 15
V.iid. void.ible ■ 17, 24
>imph', under seal S
lUe.;,il, fraudulent, immoral . 16, 25, 23
In restraint of trade 19
In restraint iif marriage 20
.•\gainst public pilicy. 18, 22
Who may contract .52
By minora, idiots, insane ,54, 60-t).5
Reipiisites of binding contract .... 68
l>r;i«ing of ()'.( 7()
.Signing and sealing 70. 7!
."signing by mark 72, 73
Interpretation of 77
Kepudiating 79
Urea, h of, Penalties for 8". 81
The " c onsideration "in 39 51
Contract for building a house S4
Co-partnership (see partnership) . . . .426 453
Copyrijjht .547
1 )a\ s of grace 122
Ueiits, collection of 516
(Jii.iranteeing payment of 93
Oulliwing of. .." 254-2t)4
How to pri'vent outlawing. .255, 2.56 258
What revives them 263
Deeds, warranty deed 334, .335
Deed |ioll. T.ust .leed 337, 338
t.iuit claim form of 336, 347
Forni w an anty deed 340
l>eed subject to morgage 342
Ueed of gift, comjiosition deed. 343. 112
Writing iUv>y 344, 34."
.Securing giMsl title 345
Registration of 346
Ciiib'i Torrens system .3.55, 360
Defence c.f suit, form'of 518
Dissolution of partnershij) 448-452
Dividends of stock companies 472
Division Court, entering leases 516
Double lialiility, in bank shares 476
Dower, widow^s right of .")(*5
Outlawing of right of 260
Drafts 159 174
Foreign and domestic 159
Parties to a draft 160
Rayalile to bearer or onler 161
Acceptance of 16*2-172, 173
198
INDEX.
Draft" — ' 'ontiiiunl.
Mistakr in drawer's name-
Tiim-, sinlit liiKl ileniiiii'l "liiift» IT_1. 174
l'ln>tiieiit!ravtil fiirnis of i'-i, 174
Collectinii of "*'J
I'laie of prt'scntatiiin for paynient. . 1S<
W'liiit frees endorwis IW
DniiikHnls, 1 (intra, ts of ... Bjp
Due lulls, forms of ***' '2^;
A»s,>:nm.m of 'f^
Kvictiiin of tenant . . y^
Kxeeiilions
I<in>ling lanils
Kxeinplions, from seizure for <Ula
Kidclity IkiihI. for elerk
Frauil, in eontnietrt ■
\i\ insolventH '-**»
Statute of frauds
Selling IjfiKMln obtained l«y.
Notes oTitained liy
•si-rioii Insolvent debtors - Coutimuit. '"'T^
108 l.'id Arrest of lU'btor, when 515,822
Interest, le^al rate 523
After maturity, compound 526, l.t^
Intestate, heirs of •'^-> *'J
' .Joint slock c-onipany
4.">4, 4 Si
".J i
VJ4
98 1
25 i
fil'.'
-.;',»
•JH
i:is
oa.
5j;t
'.16 j
96!
94
<J.'.
.. ICHl
Hit
SH-KH
sn
iltl
92
91
111)
ii7
mi
i.-it)
■J.'i'i
Cnrnislinient, exemptions for wages
(luuranteeing payment of note
Collection of note
Debts of third party
Soundness of a horse . . •
(iuaraiiteeiiig machinery
(iuarantor, disiharge of
Creditors obligations to
Uuaraiitv and suretyship
Kind of verbal guarantte that luniis
When it nnist l>e in writing
The " consideration "in ■ ■ ■ .
Letters of recommenilat'on. laution.
Rights lietween sureties .
(iuarantee insvirame
Form iif tiilelity Iwnd
Guariling against fraud
Korni of swuidling note
Note that is proof against fraud
Heirs
Holidays, legal
Kiiiplovees and holidays
Idiots, insane, Indians •>•-> •'«
Imlorsenients ,li''' --
Purposes and meth(«ls of lib, lii
Fourteen forms of
In blank, in full . 17^,
Restrictive
Without recourse
Of guarantee
Indorsers, contract of
Relation between 1S4,
How tohoM ....1H9,
Discharge of
Waiving presentment and protest . .
liili.-i itiini'e, laws of
Injunction
Innocent holder for value
Instalment note ^ .n em
Insolved debtors ■J**9 .MS
Assignment of J*™
F.irni of notice of assignment . .510, 511
Fraudulent preference, what 512
Fraud in purchasing g.Kjil-. 26
lUiyirig goo.ls on eve of assignment . .512
What is fraudulent transfer . 512, 279
I'rioritv of claims 513
Absconding debtors, gooils seized . .)14
Adva'itages of "incorporation 455
How to 1. 11 ni .. I onipaiiy 457, 458
Ailvertismg in ollicial dazettt.
The petition, lorporate name 4.")9.
(Jovirnraent fee
U..ar.l of ilireitors
It.ioks to be kept
Capital stock 4fi«, 469
L'mxii.l stock, transfer of stock 4Ki, 4fiH
Sharehold.MS, rights an.l obligations
Voting, .li\i. lends 4,1,
l.innti-.l liability of ..jiareholders .
Double li.ibilily'oii bank shares
l's(. of the w.jiil " l.imite.; "
IViialtiesif " 1-iiiiiled " is omitted. .
.\miual statem.nt to liovernment .
I.i.ibilitv "f directors
Joint sto.k c.inipaiiies f.ir British Colum-
bia and .Vi'W foumlland
Meinoranduni of .a-.sociation
Liability limited to unjaiil shares
Mining cimiuniits
Liability limited by guarantee . ,
I'Mlimiteil liability
Artults of assiiciation ... .... .
Fcatuies same as other provinces
ludgmenl
When judgmciits .lUtlaw -87
.Iiidiimeiit suimiions ___ ^^--
l.aii'dl..rd ami Iciai.t ^3,, 4-.j.
rbcl.-asc, term of 3,S, .1^9
When verbal leases bind •}'y
Written aii.l uikUt teal •'. 9
Wh( n to be i egistercil ''J
Lease by minors 3S.1
■ 42.1
4.58
460
461
464
465
4711
472
475
476
477
477
474
473
478
479
4 SO
4«1
482
483
484
485
.^.19
is.-.
IT'J
ISO
181 i
182 i
ISj.
IWj
191
190 1
185 j
.V)7 \
82 1
121 I
15S \
Forms of leise 4'-4,
Short form blanks, caution
Fio/.en water pipes
Kipairs, who makes them, . .. 395
Contract t.i lese, contract to repair
Lamllord's covenant
LaiLlloril's inisi. -presentations
Tenant and mortgagee
Tenant's privileges
T.'iianl's liabilities
Tenant ami taxes
Tenant .l.imaging iirojwrty
Tenant removing bis tixtures
Pedant lioliUng over, etiecl of . .
New tenancy by implication, when. .
When rent is payabli'
Tenant ni..\ mg liefore rent is due . .
Kent in arrears, lan.U.ad's remedies.
Lamlloril retaking possession, wh.'n
Ijin.llord iinl cri><litors, executions _
Farm rent, on shares 38.),
Raising tile rent by notice, how .. , .
D.aibliiii; the lint, evicting
Form of notice . ......
Notice to vacate, legal time
Form by landlord
Form bv tenant
S89
3!t.'!
WM
;i9ti
:!9i
392
387
388
389
390
394
398
399
4IKI
, 382
. 397
. 402
4113
401
38H
4t)4
409
410
405
41 K5
407
IVDKX.
IDit
..408
.. 411
. .. 412
413
414
41.'.
4IU
417
4IH
LaniUonl ami U-tmnt—Conliiiwil.
Notice not act<«l upon, it* effect
Distraiiiiii^; fiT rent
Kinrii iif wiiiTJiiit
Korin ..( iiivcM'.ory left with tenant..
TiMiaiitu ri'iioi'st for ili-liiy
lU-»i«ling l«iilitr» entr»iiw
I'.nalty fi.r ill.-pil >..-iziir<>
K.\i-miiti"iiR fnun .tci/uif
Montlilv tonaiit ami I'xeniptions
Si'iziiin"exeniptc<l (i;oiiils, wlien 4'JO
K.\iaMisu» of 8ii/,un-, li'gal 4'J3
Tenant inovin>; out with eximptions. 419
HoariliT-' anil liKlgerw' j;ooil9 422
Law. ilivision of ' ^|J
Laws of inlii-iitanic 50'
Loaw ("w Ijindloiil ami Tenant) 378
l^^al lioliclays '■'J!)
Lf^al tender "'• "•
Le;!atee. devisee ■'•'•
Lette^Mof reromniendtttion »"
Lien notes ]"*
Lien sales • ■ ■ •»"
Luiiafies, idiots "■'' "^^J
Main. me, restraint of 2<_'. ■-!
Man iid woinen< pro|H_'rtv rights «)1 .i,!>
Holding separate estate , . .3(52, M'i :tt>H
Selling anil willing her estate ■!•)')
(iifts to and liy husband . ■ 3(>4
Kandngs "f ^ • „' il^jl
Kngaging in tmsiness JO". •"''
l.ialiilities for her aet» and debts. 3«S
Not liable for debts for family.. 370, 371
HHsband's liability for wife 369
What she cannot mortgage 372
Order of protect ion ■■_■_• 3 1 3
.\limonv, dower 37), 3n
Civil rc'latioiis towards husband .... 37H
Husiness relations towards husliaml . 377
Dving intestate 376, .'i(l7
Miiiiira, ( ontracts of 53-(iO
Note of ■'■;'
K;ititvMi;;orri'iiiidiatingcontract8..)9, W>
l.ialiiUly of I arents fir fil
Master and servant 238 2o3
Contract for service 239, 2411, 241
Agreement for one ye.ir 239
Contract with near relatives '-39
.Mechanics l.ons Conlinued.
.Mi»le of enforcing lien
I'rioi It V for wages
I'aymeiits to defeat lieiw illegal
Agreement to waive remii
lies void
SUTIOK
539
. 5:m
. .i4l
. ,-142
.138
.^43
&4.'>
546
llight to demand terms of contract
Removing' property covered by lien
Laborers on public works
Lieis on arti.les re|)aired
.Sale of repaired artiides if not jMiid.. .546
t;arnishee of wages 523
Merging securities 'lo
' I i^digation ,"♦
^ 280, 281. 2.88
286
Moral iibligation
Mort Images .
torui of
Registration, Torrons system
Covenantso,'
Person. d covenant
I'lvmiMit of, when
Hischarge, form of
Assii;iinunt, form for
Assignment by indorsement.
.Sale, notice of
Interest on, distraining for .
I'repayinent after oyeai-s...
Mortgagee taking [Kissession .
Koreclosure of
.283
29<
282
284
29!)
2S"
289
291
2'.*2
294, 295
. . 296
.... 297
. . . . 298
299, 301
KedemptiiMi, ispiity 300, :J01
Seizing other proiK-rty •^'*"-
( lutlawing of .>'_••»
Under Torrens system 3'>.i, .».)<), 3o8
Negotialde piil>er "**"?,„
See piomissorv notes 1 '9
^'"■Y'^ ■■'■ l;is
^.•■. cheques i-'^
various forms 2'*
Orde
Outlawing of debts
Reviving of
Overdue paper
r
1'
.254 2t)4
.... 263
.... 1«9
61
... 427
443
+29
429,
irents liability for minor chi'dren.
11 tners, three classes
Liability of ■•■• ■*-'*■
Limiteif partner
Powers and limitation of 411
What partners niust not do 442
I'.utn.r eaiiniit sue the lirrn 444
Pari n.-r selling his interest ■'^•;
l^mkruptcy or death of . . . . 44li
.Master liable to servant for injuries.
Servant's liability 249
Termination of service -^^
Servant and liolid.ays '-•■>2
Process f,,r collecting wages 'i-W
ehanics' Liens o-iB-.HH i
Limit of owner's liability .i27, ■''29
Liens on several properties .128
Lienliolders uniting c'aims .""'i'^
R.^Llislvation of liens, time for. . .•"i30, .j31
Form of lien claim •_'44
\Vh 11 liens expire •''^■-
llow discliarged S^'i. ^^i
Transfer of lien •'•"'5
The firm name 4.!S
Noll trading Hrms 439. 440
l),s~i.b.tion -t+S. «»
Kc'i-tciing dissolution, form of . . . 4.nl
NoTiee of ■ issolution to p iblic ... >._''^
Business after dissolution . 4'i3
I'atent riudus •'■JJ*
Patent riuht notes - '49
I'avmenls. in "inoney "•■-. I"
In propertv. in notes 104, Ui-^
l!y forged paper, counterfeit nioiicv h*>
To whom, where 107, 108
I'aynieii; presumed ... '"■'
•200
ISDKX.
I'.ijn.tnt8— CoiKinw*'/
•KTioa I
1141
•.'19, •Wl
Kelea^i'K, form of
Ki'iho'Imi', 1<kii
Ki'tit (see IuiiiHokI and ten»iit) •'j^'
vinent 115 i K.m.»>.1m», LkhI >*"
Del.tor mak.-. a .plication of payment lU) lU'nt (see lun Uor.l an.i ""••"-;■ ' ' '
(■omi.romiBe ^..111. ll'J Rentriclmn plaru of payment m not« . , l.>.|
( onipromiBt H..vivin« oullawcl .lel.m •-«•'
'■■"■" ' ,'" Lrn..v -'S' •"« Sal,- of ,,.r«..ml property 31'-' :««'
.'".r. ll ",„nt -J-Jl Jrl \\l,-,>,aUM»r,„„plHe.l ..IS
I'riiii ipal and a^ent '--' '-■}
I'limipal liouiid hv utiieral aiifiit ..'^'-S, '..t-
W'lifii U>iinil I'V »p.-. lal a|<<iit •.••2«, •J.'t^
IViiiii.l bv acci'iiliiig btiietits •-'•"^
liound by ratifymg agent'i acts 'i'-i>
I'romiwH. gratuitous ■ -j*
Mutual, conditional 4'_. 4.4
Promissory notf« 11», P-'", I'-il. 14"
Kormiof 140, l-jj
Maturity, reiii'wal ^'^^t '*'
Matunn); on SuiiiUy I"-*:
Ac'oniiiiodation
:!is
II .
310. .•Ml
:vii, :)•-»:!
liiU of sjilf. foiin of
On (rial, liv sample
Uv order, by auetio
L'nder ^;uaranty
(If l)f»>k aixounlH -"
Of slob'ii lioodH .... ;'-''.
WIh'ii verbal aiireumcnt binds jUti
Urea, h of verl.al ayrwnienl iJlT
(;o(Mis stopped in transit ■ . '^'-^
Contlilional sales 34'*. '5;*
'nV,V(jfi is:! Sale under lien (see eon.lilional sale^t) •}*'i
- - i;t,s Sale of real estate (see real estate) ..XU-.Mj
... J 1
W4 •2ti4
1H7,
U9,
141,
.147
.'is':
14-2
14:t
14S
144
149
134
138
H6
Minors, fraudulent
Kor^je.l, b«t
iMdeiiiiuty bund for lost note
ludu idual, liartnership. .
Joint and several
Joint note, full form .
Noil negotiable, full form...
Cliattel, patent right
Lien notes, full form
Cc.lluteral, instalment
Swindling note, form of
Note preventing fraii'l, form of **' ' .
Place of payii.ei.l, restri. ting. . Ti'i, l.'):* Su^
t'olleetions'of, legal holidays . . . ISfi,
liiilorsers. to hobl, wlien free
Signature by mark
Signature, marrieil women
Alterations, defects l'-i9,
.•^iirrly. how lost l.''J>
(bitlawing .- ;''-l'
Inleiei-t after maturity b>'-, o-a
Property, divisions of •*"4, :*"o
Owners authoritv lioii, .'illT
.luim and life owners in SDH, :i(l9
Held in trust
Owiierslnp by possession
Sale of personal property
l.ll .Seal
3'J5 ' Statute of Limitations
■.'.■>6
Applying to notes
Applvini; to aicounta _
Applying to judL'iiients '-^I
Applying to mortgages -00
Applving to legacies aiiil d..wer im, •-bO
Applying to i ittel mortgage
Apidying to (.wnershin by jwssession
Keviving outlawed debts
Kxceptions to outlawing
L'ession duties
\M .Suing, entering cases in court
IM9
14«|
l.-.t)
i:il I
Method, cost
Defences
Slalenieiit of defence
.hidgnieiit, exeiulion
Kxeeutions bimling land ....
,ludgnieiit suniraons
(iariiisbnient
Kxemptions from seizure ...
Sureties (see indorsers)
Things that free the sureties
:64i 33H -Swindling note, form of
*26— Tiix sale
;il-J ;«0 Tenant (see liiiidl..r.l and tenant) ...377 -J^iS
1 14
X-.^ 361)
3,5H, S.")!)
•261
■J6-2
•2fi:!
•2«4
eo8
.... 516
516
.517
. ... 518
.519, 5!20
.V21
. 522
523
.'■.•24
8S, 17*. HI--'
IH9, IWI
... 86
. ,'{39
's-,1,. ,,f reil estate " 331 Tender of payment
"verbal agreement to buy 316, 33^2 i Torrens system of lands transfer
Widows dower in 311, .50.5 MortL'ag.s under
IV,,,,,,.,,,,,,,, 31 I Lease under ' oan
' ilv „."l. when close,! 37 ('aveal forbid.ling registration 360
\Vii lidrawal of, when too late 3« | Tra.le mark
19l>
194 1
193
Time for aeieplaiice of
Protest, form of "11.
N,.ti>e ,.f. fees for i^^
Noting for proti'St
liy magistrate, form for 195, 196
Kijrm for N<'«foundlan,l 1W6
Keal estate (.ee pr.iperty , -^^ 30.5
S.ile of •'■*'. ■'•"
liiniling agreement for sale . . .33'2, 333
1 )ei'ds for (see deeds) 334
Mortgages (see mortgages) ^^ 280
Owu'Tship of
Ownership by possession
.Signing by nmrk
Receipts, evi.ry form
(ir i.rope'rty liebl in trust
Kor iiaymenl
.306-310
.. 310
7'2. 73
207 '21S
•21H
,. , form of
K,.,iuisil.s .if v.iliii will. . . .
Who may draw wills
Preventing litigation
Changing ,.f, residuary clause
(•,,,11. il t.i
Wlieii wills lake effect
Devise, legatee
Probating and registering
.'xi'eutor, Rilministrator
Kxeeiitors notii-e to creilitors
llenuineration of execuU.rs ..
Distributing the estate
Wiib.w's , lower
Inte
.548
48«, 306
. . 4"J3
191, 49^2
490
194, 4s7
488
.... 496
.... 497
.496
.VI3
499
old
.104
.505
.5(f2
49.S,
(^ui^Ihi', threi
helil in trust -'o .,,,.,r.- • , ■...^- ......
of legacy •.^'3 Without pr<'ju,iiee, legal force ot.
• forms ^^-^
... 197