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Lorsque le document est trop grand pour etre reproduit en un seul cliche, il est filmd d partir de Tangle supSrieur gauche, de gauche d droite, et de haut en bas, en prenant le nombre d'images n^cessaire. Les diagrammes suivants illustrent la m^thode. 1 2 3 32X 1 2 3 4 5 6 'heB / 'he Bills of Exchange Act, 1890, Jill LllS Dj WI A M*;kk;ijk An a DK autiiok of Pnomisso w }^*^- ^^ THK / BILLS OF EIGEWE ACT, 1890 AN ACT TO rOOrFT THE I,AWS KKLATING TO ills oi Exchange, Cheques andprDiniBSDryt^DtES I'iiSKtid by tin' I'urliiinu'iit of Gitnixiu, h'.i Vic, ch. 33 WITH notf:s and comments A r,so Rkkkiiknck t»» iHK Enui.ish, Amkkicak and Fkknch Dk 1891 the year l-SlM Ayrifult.nrp. hv Bills of tfteshorte: tfce CO mm them have c^nt autht but even i courts hav thouj^ht w of these d, to tJie tim unimporta less than t Canadian icciidiiii: u* rltf Art oi r.ln Parliament of ('anada, : thousand c Jos. M. V\i,.ii-. in ihi- iifficf of Lfie MiniHt^T fcfent prox means on English, A taking into in the neig Add to the the numbe some 125 v the subject therefore n upon the p tury will 1 Codihcatio tens lawye labyrinths ( bills of ex codified, fir secondly ar C^nmerce, tl fifteen hund 5^' 1 Chiilmei 1|]V 'J Daniel li INTRODUCTION. •Bills of exchange, cheques and promissory notes are oid luws ami tlie shortest; and most concise legal instruments of which ""■'•?""*«"''•'• t||e commercial world makes use. Yet each and all of ;m have been prolific of judicial controversies. A re- it author, ' who has not only exhaustively reviewed, even counted all the English cases, finds that the COlUrts have pronounced no less than 2,500 judgments titought worthy of being reported. Although the first of these dates back as far as 1603, the decisions are, up tO\the time of Lord Mansfield, comparatively few and Itipiimportant. In some of the later American works,'^ no less than eleven thousand jjrecedents appear, while the Clinadian jurisprudence is i-epresented b)' some two t^usand cases scattered through the reports of the dif- fiSfent provinces. The reporting of two hundred cases ntians on an average a volume in space, so that the English, American and Canadian reports alone, without taking intcj account the arrets of France, would form in the neighborhood of 75 volumes already published. Add to these formidable figures, digests and treaties to the number of 25 or 30, and the result is an array of some 125 volumes written in the English language upon the subject of negotiable instruments. It is impossible therefore not to look forward with some discouragement upon the ponderous volumes which the next half cen- tury will heap upon the groaning shelves of jurists. Codification alone can avert the calamity which threa- tens lawyers and judges of being buried alive in the labyrinths of the law. In France, where the laws on bills of exchange and promissory notes have been codified, first in 1673 by the Colbert Ordonnance, and ^©Condly and more perfectly in 1807, by the Code de '' tmcrccthe number of reported cases does not exceed \en hundred. 1 Chuliners, on Bills of Kxuhuiigp, xxxvi. 2 Dauicl and Handolpb. VI iNTFODUCTrON. In England, the work of codification has only begin but seems to be going on in earnest. In 1882, the Hr tish Parliament adopted "An Act to codify the hiM relating to Hills of Exchange, Cheques and Promissot Notes," 45 and 46 Vic, c. 61. During the last sessio of Parliament, the laws relating to Partnerships wci codified. A criminal code and a code on Joint Sto( companies are promised in the near future, and befo many years, it is stated England will have a comi)le code of laws. Her colonies will not be slow in folio ing the example of the mother country. Until the Civil Code came into force in 1866, unce tainty of derivation was, in the Province of Quebec, a ded to uncertainty of jurisprudence. Our courts were fi quently puzzled and ciivided as to the sources of 1 to which they had to turn for inspiration. Their gui in some instances, was the rules of the old French la as it existed at the time of the cession in 1763. Ho ever, it was contended that the ordonnanceof 1673 \v not always a safe guide, as it was not in force in C nada for want of registration bj- the Superior Coun of Quebec. Therefore, the old text books had to carefully looked into, to ascertain to what extent t ordon nance had altered the law. Modem commen tors had also to be consulted as far as they were deem the exponents of the old law. Finally the Ei^lish 1 was introduced in 1849, to be .ipplicd in all cases wh the existing law was silent.' The Canadian statu had likewise to be the object of careful considerati Hence the confusion which existed in the provii until the codification. These elements of controversy were largely remov by the (^ivil Code of Lower Canada, which came ii force on the 1st August 1866. Art. 2340 says: " In '* matters relating to bills of exchange not provided '■ in this Code, recourse must be had to the laws of Ii " gland in force on the 30th day of May, one thousa " eight hundred and forty-nine." See also art. 23, To the business man, for whom this work is principa intended, anv further reference to this once cont (1) 12 Vic , C.22, 8. 26. versial subje( rind student, IS always int the authoriti( published by \e change et IW the Coi )f C~anada w )I) " the reg ■" and coin.igi issue of pap " sory notes, " insolvency.' ')y urgent j)u passed the A( ,)Ose of this w were consolid 'aws relating articles of th sive, wholly \ iealing with i the authority tdded, howev the Code have The Bill, as sessions of iSi. v'ision : " Tlie "eluding the 1 ■' inconsistent ' shall contini; " sory notes ai not to be foun in the Senate, The effect of tl IS the bill is a lire subject of 1 notes. In the Pi ful cases, recoi the event of tl c^land in force tation Act, Ca Introduction'. VII versial subject would be without value. The lawyer and student, however, to whom le^al historical research IS always interesting and often essential, will find all the authorities collected and discussed in a little work published by the author in i860 : " Kssai sur les I-ettres le chani^e et les Jiillets proinis^oires." iV the Confederation y\ct of 1S67, the Parliament j^i^f'S"^^"*" )f Canada was given exclusive jurisdiction over (see. .)l) "the regulation of trade and connnerce, currency ■"and coinage, banking, banks and savings banks, the issue of paper money, bills of exchange and promis- " sory notes, interest, legal tender, bankruptcy and " insolvency." In the exercise of this power and moved '^)y urgent public need. Parliament, at its last session, passed the Act, the discussion of which forms the pur- pose of this work, whereby tiie then existing statutes were consolidated, a few importanl. changes made in the 'aws relating to negotiable instruments, and all the articles of the Code from 2279 to 2354, boHi inclu- sive, wholly rei^ealed, save in so far as any of them, Jealing with matters relating to evidence, came within the authority of the Provincial Legislature. It must be idded, however, that the most important provisions of 'he Code have been embodied in the Act. The Bill, as introduced in the Commons during both sessions of 1889 and 1890, contained the following j)ro- >/ision : "The rules of the common law of Kngland, in- " eluding the law merchant, save in so far as tiiey are not "' inconsistent with the express provisions of this Act, 'shall continue to apply to bills of exchange, promis- ' sory notes and cheques. " (Sec. 97.) This section is not to be found in the Act as passed. It was struck out in the Senate, without any discussion. Pages 461, 511. The effect of this elimination will not be very much felt, is the bill is a complete code in itself, co\ering the en- tire subject of bills of exchange, cheques and promissory notes.Inthe Province of Quebec,in unprovided ordoubt- ful cases, recourse must be had to the Civil Code, and in the event of the silence of the latter, to the laws of En- c^land in force on the 30th of May, 1849. See Interpre- tation Act, Ca. Rev. St., ch. I, s. 48 and seq. ii and vrritcth May i such cases, Ross, Tho will comnii Lord Eshei •'very able ijlarke, i^ai in 1875, sh The nev books on 1 inissory n sion of on Toronto, ' members o Such an o anticipated constantly consequen( literature, when the p last, its pn Coming frc principles ( hoped, helj by Parliam (1) Vagliano Introduction. IX ^.it respectively under the presidency of Lord Bramwcll,. Sir Farrer Herschell and Sir John Lubbock. Our own) statute was also, (hwini^ two sessions, considered with ^Teat care by both Houses of Parliament, under the di- rection of two of our abliest hiwyers. Sir Joiin Thomp- son, in the Commons, and the Honorable J. J. C. Abbott,. in the Senate. In consulting text books and referring to cases based on the Imperial Act, it must be borne in mind that its. language has been in many instances modified and in others wholly displaced by local laws and usages, pre- ferred by the Canadian i*arli.iment. Whenever our legislation is doubtful or silent, it is not to the English statute, but in Ouebec to the Civil Code, and in the event of its silence, to the JCnglish laws in force on the ^Cth May 1 849, that we must adhere to for guidance. I n such cases, therefore, tiie works of Byles,13aylcy, Chitt)-, Ross, Thompson, Thorburn and espacially Chalmers, will commend themselves to the attention of counsel. L.ord Esher recently referred to Chalmer's book as being ■'very able and useful" (i). The little manual of ?vlr. tjlarke, J^arrister of Osgoode Hall, Toronto, published in 1875, should not be overlooked. The new Act has given rise to a large number o( books on the subject of bills of exchange and pro- missory notes. The public is already in posses- sion of one, by Thomas Hodgins, M. A. Q. C, of Toronto, whilst two or three others by prominent members of the Ontario Bar have been announced. Such an outcome of the Act could hardly have been anticipated so soon, in a communiiy where lawyers are constantly engaged in active practice, and cannot in consequence contribute extensively to legal works and literature. Had it been possible to foresee the future, when the prospectus of this book was published in June last, its preparation might not have been undertaken. Coming from the Province of Quebec, from which many principles of the Act have been borrowed, it may, it is hoped, help to explain the work of codification intended by Parliament. (l)V.'igUanov. Bank of England, 1889, L. R.,28y. R. D.,247. X Introduction. 3P»em!h wnu^ri.. it iiuist inclcc'd not be ini;igiiictl that French autho- rities are to be wholly ij^nored, even in a province f>o- veined by the English . common law. In coniniercial ])ur>uits, the rules prevailinj^ among mercliants in the world will Conmiissii upon a ui paper. V^ Intion, it British Va Zealand, done so, a ex.imple. English la '1 he orij a subject c There is r creation is France, in back as i: ment, De i 1253, pres law of 1 2d refer to the says I hat a Europe." year 1255, bills upon £jranted th that king change, in to his ager Promi-s( negotiable Queen I\.\^ came into trary, they France sin bility of bi It may I essential t^ (ij See '. Introduction. XI grave questions as to the constitutional power of Con- giess in the matter. It is to be hoped that the day is not far distant when all the commercial nations of the world will act upon the report of the International Commission, appointed at the Hague in 1875, and agree upon a univer>al code of laws respecting negotiable paper. Without waiting for this most desirable legis- lation, it will be advisab'e that every portion of the British l^mpire should adopt the British Code. New Zealand, New South Wales and Canada have already done so, and every British colony should follow their example. India has also its code based upon the English law. 'i he origin of bills of exchange, in Europe, has been oriwiu ofbiiis. a subject of hot discussion among legal antiquarians. There is now a pretty well settled opinion that their creation is due to the Jews after their expulsion from France, in i 186. A statute of Avignon, dating so far back as 1243, devotes a whole chapter to this instru- ment, /)e Litieris Cambii, and one of Marseilles, dated 1253, presents evident traces of them. A Venetian law of 1272 and a charter of Hamburg, in 1189, also refer to them. Anderson, on Commerce, vol. I, p. 17 1, snys that at the latter period they were "very new in Europe." Hume (Hist. Engl., ch. 12) states that in the year 1255, the bishop <,f Hereford, while in Rome, drew bills upon the bishops and abbots of the kingdom and t^^ranted them to Italian merchants. It is even supposed that king John used letters of credit and bills of ex- change, in 1202 and before that year, to remit money to his agents at Rome ( ). Promi-sory notes, being "choses in action," were not negotiable in England until made so by a statute of Queen Anne, in 1705. liills payable to bearer only came into use in 1765 ; but spite of laws to the con- trary, they have belonged to the conmiercial life of Fnmce since 1630. According to Savary, the negotia- bility of bills and notes in France dates from 1620. It may be interesting to re mark that it was fprmerly esseniial to the validity of a bill of exchange to be (O See Fursons, Bedurridc aud Alauzet. XII Introduction. drawn in one place and payable in another, ur that what is termed /t7 reviise de place en place should be observed. The Encyctopcsdia Britaunica, 8th eel., 1861, vo. Exchange, still defines a bill of exchange " an order addressed tosome person residing at a distance, direct- ing to pay, etc." But this rule is now universally obsolete, although still to be found in several conuner- cial codes of Europe. A bill of exchange has come to have more of the nature of currency than of a trade operation. La rcjiiisc dc place en place is now no longer required in German}', Russia and Italy; and most eminent jurists, such as Asser, Rolin-Jacquemyns, Namur, Lyon- Cacn and Renault adopt the views entertained by Einert, the framer of the celebrated German Exchange Law of 1 848, nnd by Vidari, in his treatise, " La Littera di Cavibio,'' and express the hope that a revision of the codes will obliterate altogether this relic of the French law. '' Ce sera,'' observes M. Asser, " un pas important dans la vote dt I' nniforniitc du droit concer- nant la lettre dc change, si desi table dans I'intcrct an inonde covinierciaiy 2 Revue de Droit international, 507; Hid., 470; Hid., 353; 16 id., 532. It may be useful to briefly note some of the special features of the new Canadian Act. A note not imply- ing a promise to pay, for instance I. O U., is not a pro- missory note. s. 82. Where a bill was payable to bearer, its negotiability under the old law was not affected by a subsequent restrictive indorsement, but it will be otherwise under sections 8 (3) and 34, 35. A bill is no longer invalid by reason onl)- that it bears date on a Sunday, s. 13 (2). A bill, payable to a particular person, but not con- taining words prohibiting transfer, is now negotiable, s. 8 (4). The holder of a bill, containing the nameofa referee in case of need, was bound to present himself to the latter, but now this formality is optional, s. 15. Under the old law, a forged bill was wholly inope- rative, but by an amendment offered by the Senate and asse to order mentout no right the amo of such acquiring Herea nient or as dish on Under acceptan formerly be on th Hereto Island, ai a general ble there Act, an ac with or \v is not con The pn CCS and s.' .1 bill or place, wit may be pt ■ to the ; bill or not mcnt at tl the drawe 86. If a bill presented may have acceptor c provision that parti( Heretof in the aft made "at Whei e Introduction. xm and assented to by the Commons, if a cheque payable to order be paid by the drawee upon a forged indorse- ment out of the funds of the drawer, the latter shall have no right of action against the drawee to recover back the amount so paid, unless he gives notice in writing of such forgery to the drawee within one year of his icquiring notice of such forgery, s. 24. Hereafter, a bill, not accepted on the day of present- ment or within two days thereafter, must be treated as dishonored for non-acceptance, s. 42. Under the laws of some of the provinces, a written acceptance was not necessary. Under the new Act, as formerly in most of the provinces, the acceptance must be on the bill itself, ss. 17 and 64. Heretofore in Ontario, Manitoba and Prince Edward Island, an acceptance to pay at a particular place was a general acceptance, unless it stated that it was paya- ble there "only and not elsewhere." Lender the new Act, an acceptance to pay at a particular specified place, with or without the words "there and not elsewhere," is not conditional or qualified, ss 19 (cr) and 52 (2). The practice prevailing > Ontario and other provin- ces and sanctioned by a wc.l settled jurisprudence that a bill or note payable at a bank or other particular place, without the words " there and not elsewhere," may be presented for payment at the particular place ■'<■' to the acceptor or maker, cannot be continued ; the bill or note, in such a case, must be presented for pay- ment at the bank or other particular place ; otherwise the drawer and indorser will be discharged, ss. 45' (^/), 86. If a bill be payable at a particular place, it must be presented for payment at that place, else the holder may have to pay the costs of suit taketi against the acceptor or maker, if for instance the latter show that ])rovision for the payment of the bill had been made at that particular place, ss. 52 and 56. Heretofore a protest could be made after one o'clock in the afternoon, but under section 51 (d) it must be made "at any time after three o'clock in the afternoon." Where authorized by agreement or usage, a present XIV Introduction. ment for acceptance or payment through the post office is sufficient, ss. 41 {(/) and 45 (d). Under the old law, at le.ist in Quebec, notice of dis- honor was given, at the same time, by the holder to all the parties entitled to it, but under section 49 [2] the pr.ictice of giving notice in turn, which prevailed in England and United States, has been sanctioned. Until now, presentment for payment by the holder had to be made on the afternoon of the last day of gr.ice, but under the Act, it can be made at any rea sonable hour of the last day of grace, whether in the forenoon or the afternoon, s. 45 [d] and [c]. Present- ment by the notary must be made after 3 o'clock, s. An acceptance for honor cannot be offered after pro- test for non-payment, but only after protest for non- acceptance or for better security, and before maturity of the bill. s. 64. The acceptor for honor must receive notice of the protest for non-payment, s. 65. The protest for better security is a novelty. An acceptor for honor or under protest is no longer boimd to give notice of his acceptance. A drawer or indorser, receiving notice of a qualified acceptance, must express his dissent to the holder within a reasonable time, if he does not wish to be deemed to assent to the same. s. 44 [3]. In the future, a person signing a bill otherwise than as a drawer or acceptor, for instance as a guarantor or donueur d'aval, shall be treated as an indorser and as such entitled to protest, s. 56. Formerly a donncur a'aval was liable in the same manner and to the same extent as the person on whose behalf he became a guarantor, and was not entitled to any protest apart from the latter. Heretofore, a bill payable on demand could be pro- tested at any time before the statute of limitations was acquired, but under the Act, it must be protested within a reasonable time. ss. 45 \b\ and 85. Under the new Act, a bill signed under the seal of a corporation, is negotiable, s. 90 [i], and a bill payable accord in place, to af excha otherwis It is n dishonoi icceptan Under diether be made Ja}- of gr later thai rised in ( A noti •jost ofhc( -ame in The pre ifter t]ire( ."race. ss. protest, ill ■^\ 5^ 'ind Under 'value rec .eived on ivords "vj 3ill or not Under ■ :akcs it su which it w whether th but under >inder the , ^uch collat \\^ Que b IS an assig ■^■53. The prac ^iand for S( fraudulent sanctioned The dam )e pro- is was )tfsted Iseal of layable Introduction. XV according to the current rate of exchange of a certain place, to be ascertained as directed by the bill, is a bill of exchange, s. 9 [d]. The law seems to have been otherwise, at least in some of the provinces. It is no longer necessary for a notary to write on a dishonored bill the words '"protested or noted for non- icccptance or non-payment," as the case may be. Under the Code, service of the notice of protest, whether for non-acceptance or for non-payment, could be made at any time within three days after the last jay of grace, but under the Act, it must be given not later than the next following business day, as is prac- tised in Ontario under the present law. s. 49 [4]. A notice of protest had to be mailed " in the nearest •jost office," but now it will be sufiicient to deposit the >ame " in any post office." s. 49 [4]. The protest or noting for non-payment must be made after three o'clock in the afternoon of the last dav of 7race. ss. 51 (/>). Noting is to be a preliminary step to protest, instead of being a distinct formality or deed. ^s. 5 1 and 92. Under the Code, when a bill contains the words value received," value is presumed to have been re- :eived on the bill ; but under the Act, whether the words "value received" appear upon the face of the bill or not, that presumption exists, s. 30. Under the Code, the indorsee of an overdue bill :akcs it subject to all the objections and equities to which it was liable while in the hands of the endorser, whether they attach to the bill or some collateral matter; but under the English law prevailing in Ontario and Jiider the Act, such endorsee will not be affected by ^iich collateral matter, like a set-off. s. ^6 (2). In Qui bee a cheque or bill does no longer operate IS an assignment of funds in the hands of the drawee. 53- The practice of crossing cheques prevailing in En- gland for some years to guard against loss, larceny or fraudulent negotiation by an agent or clerk, has been sanctioned by sections 75 and following. The damages of two or four per cent, allowed by the B XVI Introduction. Civil Code and also by provincial statutes upon bill^ returned under protest from Europe or the West Indies, or any British province of North America, or the United States, have not been re-enacted by the Act. s. 57. The statute discloses other changes in our existin^ laws and usages, but these as being of lesser impor- tance, are sufficiently noticed in the body of the book. The plan pursued in the preparation of the piesent work is that adopted by the statute. The text of each clause will be first given to be followed by a digest ot all Canadian reported cases and of the leading English, American and r>ench decisions, and also such note:> and comments as may be deemed appropriate. I hu references to be found under the articles of the Civi: Code of Lowci Canada, wil' be reproduced in an appen- dix, together Mith the articles of the Code and th repealed Canadian and provincial statute^, in order t show to what extent the old decisions continue to applj , The Appendix also contains the debates of the Canadian Commons and Senate when the Act \va.> under their consideration. The decisions upon actions on bills and Hotes anc all matters of procedure, coming within the exclusive jurisdiction of the provincial legislatures, have gene- rally been omitted, as being matters of local interest aud frequently at variance according to the rules ol practice particular to each province. The Act, which contains 97 sections and 295 sub' sections, came into force on the first day of Septembei 1890. Montreal, 2nd. January, 1891. D. GiROUARD, D. H. GiROUARU. The first figure r Abfll V. Morriso Abrey v. Orux. . Adiuiis V. Forbet Aiiams V. 'I'lioni; Ai.%'() V. Nicholso A!{i;i Hank v. \a Aliib^iiiia Coal M Alexander v. Siz Aii'xander v. Taj Alexander v. Tho Ailain v. Lazarus Allan V. Mawson Icii V. Ednnind! Alli'H V. Kemble. Allen V McNan;?! Alien V. Hi,!,Mitnet Allen V. Sea, Fire Allen V. Snydani. Allison V. ("'entral Aives V. Ilddg.son, Allison V. McDou: leii V Woldgrov Alhvood V. llaselt Alinon V. Cock.. . Alsaixer v. Close . . Amazon Ins Co. v American Hank v. imory v Merryw( iiieher v. Bank oj iicona V. Marks, iiiderson v. Park, *iierbach v. Le Su *ii?ers V. Ernia.tin, iii,i,'le V. Northvves irclier v. Lonie Irciiibald v. Hrovv: irmonr v. Gates Iriiistrong v. Chri Armstrong v. Gibs( ^n .trong v. liars irmslrong v. Kirk] mold V. Caldwell mold V. Cheque Iraold V. Sprague. (»l Thi8 list does n date of their ducisic INDEX OF CASES (') iThe first figure refers to the page, and the others hetwi en brackots, to the number. iglish,! note^ 'Ik Civil ipper,- id tk •der to appl}. of the .ct \va> ;s am: elusive gcne- tcrest, les ol 15 sub- :embei JAbcll V. Morrison ' 242 (0) lAbrcy v. ("rux i)2 ( 18> Ailaiiis V. Forbes 52 (17) lAtiaiiis V. 'rhoniiis 5:^ (17) A!;:j;o v. Nicholson tC] ( l!») Asiiii Hank v. Lfii^hton 80 (2), 12 1 (6» JAIab^nna Coal Milling Co. v. Brainard 2U (4) l.\ltxander v. iSizen 75 (;i7 ) lAk'xaiuler v. Taylor !)■{ ( 12) lAlt'xaader v. Tlionias "iC) (10) Vilaiii V. Lazarus KJS (H*) Alhui V. Maw.son V.)_\l) (i! V. luhnundson 147 i4, 7, 0) Alh'i! V. Keuible 2l)0, 200, 25:1, l'55 Allen V McNaughton. . . 140 (80) , 249 (5> Alien V. Uightneere lOl Alien V. Sea, Fire & Life Assurance Co 10 (4> Allen V. Snydani 1-10 (28> Mlison V. Central Bank 0:-J (12) Aives V. Hodgson 251 Allison V. .McDougall 85 (51) Allen V Woldgrove 75 (oO) Allwood V. Ha.seidon 25 (7) Aliuoii V. Cock 74 (2(>) kk^'ser V. Close 51 (14) Amazon ins Co. v. Quebec & (Julf Forts Steamship Co 118 (8) taiiiean Bank v. Blanchard 8 (oo) iiiiory V Mei'ry weather .110 (10) iiieher v. Bank of England 1 Km 0> iiicona V. Marks 122 (10) Anderson v. Fark 0;> (2> Auerbach v. Le Sueur Mill Co 58 i!)) Angers v. Erma.tinger 208 (57) iiille V. Northwestern Ins. Co 47 (1), 02 (2) iclier V. Lorue 134 (4), 102 ( 1 ) Irchibald v. Brown 74 24) Smionr v. Gates 52 (17), 72 (0, 15) Imistrong v. Christiani 147 ( 15) Iriiistrong v. Gibson 80 (liO) 'rong V. Harshman 47 (1) Iruislrong v. Kirkpatrick 75 (38) iriiold V. "Caldwell 61 (10), 80 (01) mold V. Cheque Bank.; . . . 50 (4), 70 (18) V. Sprague 72(9) (11 This list does not comprise the French cases which are generally quoted hy ke 'late of their decision and not by tho name of the parties. I '■a •ii XVIII INDEX or CASES. Arpin v. roulin 81 (40 Arthur v. Tacr 214 ( 14 Artisans I'rov. Bdg. Soc. v. Leinicnx Tjd ("Jl), !)7 (la Ariiott V. Uedl'ern '25: Ashpital V. Hryan <)7 Astor V. Ucnii ' VM ( 12) Att(Mil)orouirli V. Clarke S7 (74 Attt'iilioroii'^h V. Mackenzie 120 (2 , 201 (d Atkins V. \\'ard]e 7n (21 AtWDod V. Crodie 87 (7;); Attwood V. Maiinini,'s 71 Attwood y. h'atterbury 121 (ft), 122 (14 Anj^UKte V. Henard 1 11 (7 Aiildjo V. McDousail 71 (5), 114 (!) Austin V. Burns 7 (.SO AusI in V, Farn.ier 1 1 f) (i Austin V. jMead 80 |H Austin V. Latham lf)2 ((W Awde V. Dixon 48 (15), 8() (r.2), !I2 (1 Ayrev v. Kearnnidos 24 (0 Aytoii V. Bolt 221 (6(i; B Baker v. Bake- v. Baker v Bacchus V. Morcan (5 Badeau v. Brault , 55 (19ii) Bailey v. Bidwell •, 09 (21) Bailey v. Bodenham 1 40 (26) Bailey v. Porter 136 (20), 147 (14) Baillie v. Dickson 150 (4" Bain v. Gre-ory 48 (18), 148 (21 Bain v. Whitehaven, etc. llailway Company. . , 255 Baker v. I'.irch " i:)7 (10) D.Miini: (lii (2) "Aliiutgoniery , 3S (2:' , Bead " 80 r3) Baldwin v. Hitchcock 135(14 Baltour v. Sea Assur. Co 82 (24) Ball V. (libson 215 (19) liallantine v. cloldiny: 25 Ballock V. Binney... 160 (11) Balmer v. Bate 83 (X4) Banbury v. Lissett 42 (4 Banco de Lima v. Anglo Peruvian Bank IfiS (2) Bank v. Cook , 71 (9) Bank of Alexandria v. Swann 147(11,12; Bank of B. N. A. v. Jones 151 (53 " •' '• Harvey 204 (3i': Bank of B. N. A. v. Bosk. ,. 140(36), 151 (5: Bank of iingland v. Newman 64 (10) Bank of Genessee v. Pateline Bank 230 (It' Bank of Hamilton v. Harvey 72 (U; Bank of Hindustan v. Smith 23 Bank of Ireland v. Ferry 1 70 (7 Bank of Kentucky v. Godale 63 (5 !;iii!v ol' Louisian iiiul: ol' houisiaii iiiuk ol' Mi( hi<;jii lank of Montn-iil Jaiik of Montreal lank of Montreal Sank . ^) iank of U. C. v. P. lank of II. S. v. i ' lank of Upper Cai lank of li. C. v. J: liink of U. C.V.J lank of U. C. v. 0( lank of U. C. V. P{ lank of U. C v. Ri lank of U. C. v. Si lank of U. C. v. S' lank of U. C. v. T lank of U. C. V SI Ilk ot U. S. V. Sn Ilk of Van Dienn l;inn;ityne v. Barri laninr v. Johnstoi) lauqiie Jacques-Cii 11 laiiqiie Nationalc a Jinriuti Nutionale ^ lanqiie Niiti^inale ■ anqiK' VJllc-Mari( !am|ik- Ville-Maii€ larber v. h'.iehards larker v. Mechanic larker v. Parker. . larkcr v. Valentini arriure v. Gladdin arthe v. Armstroi lartlett v. Howley .81 (40) 214(14) , U7 (la) ....25:; ..(i7C.') 105 (I'J) .87 (74) , '201 ((!] .7:!CJl| .87 (7;i) 71' 12ii (14) 111 (( , 114 (1 ...7 (.'!() .lir)('.» . .80 18 152 ((ill) i),!'-^(l . ..t>4(9) 2'2\ ((iii) INDEX OI-' CASKS. Xl.\ . . y (54) 55 (19n) •.09 (21) Mi) (26) 147 (14) 150 (47 148 (21) 255 r,7(IO) (lo (2 3S (2;! .80 f 3) 35 (141 82 (24) 15 (19) . . . 25t 60 (11 83 (H4) . 42 (4 ir,8 (2 . 71 (9 (11, 12 151 (53) 204 (3t' 151 (52 64 (10 230 (ll^ i.iiik (if Louisiariii v. lUmk ol" New Orlcuns 163 (3 > iiuii; of l.oiiisiiimi v. Dcjean , 7X. (23 , iuiik of MioliifVfU' V. Gray 140 (29), '-'03 (30- iaiik of Montreal v. Ainiour Jo"J (18 > i,uik (it Alontn.iil v. Audette 8 t (30 : Iftiik of .Montreal v Cameron 97(1/ iiuik of Montreiil v. Giovcr 117 (3), 148 (10), 140 (32 » iiUik of Montreal v. llarriHou 1 94, 1 95 (6 , lank of ^[ontreal v. do Latre 7J (14), IHO (I , iiiiik of Montreal v. I'agt.' 55(19^ iiiiik of Montreal v. Hankin f> (14) iaiik of .Montreal v. Reynold.s SO (1 i kiiik of Montreal v. Ruston 131 (2'!) 139 (1, 2, 3, 4) iiuik of Montreal v. Scott Ml (4 1). l'*4 (4 i iiiik of Montreal v. Smart .73 (20, kink of .Montreal v. Snydor 21 I (12), 24 2 (5 i iimk of Montreal v. 'i'homas. 37 (20) lank of N. H. V. Kn()wle.s Ml (41 » liiiik of New Brunswick v. Millican 152 (01 > i;iiik of Ottawa v. Iiarrinp;ton 74 (34.> iiuik of St. Albans v. Farmers Bank 182 lidik of Tennessee v. llobert.soa 137 (2 t liiiik of 'i'oronto v. Maedoiigall Wo (61 > kiiik of Tomnto v. Perkins 56 (21; kiiik of U. C. V. Bloor 1 .'i I (51 ) ink of II. S. V. Corneal , i:!8 (I'.M iank of Upper Canada v. Dartlett 83 (20 i kmkof li. C. V. Jardine 215 (10, limkof U. C.V..T nes 51 (17,, lank of U. C. v. Ochernian 2 1 5 (1 7> lank of Q. C. V. Parsons 135 (t5> lank of U. G v. Ruttan O-l (O'l mk of U. C. V. Sniitli 151 (52 i lank of U. C. v. Street ■ 147 (3) ankof U. C. v. Thomas.,.. 215 (17) lank of U. C. V Sherwood 135 (15, lank of U. S. v. Smith 13.S (10> mk of Van Diemen's Land v. Bank of Victoria 50 (7), 12!' miui tyne v. Harrington 252 laniur v. Johnston 6 (22), 108 (;'.), 170 (1, 7) 171 (7) lauqui; JaC(]nes-C'artier v. Strachan 241 (1 r ■■• - Lcb'nnc S(>, 103(rtl> .23' I 70 (7 . . 63 (5' Lescard . ,86, 103(61; lai (lue Nationals v. Betonrnay 212 (H, 215 (.lb; smqui- Nationale v. City Bank .".'i (U ), 93 (13) lanqiie Natiaiale v. Ross 12- amine Villc-Mario v. Mallette 214 (14- uiqiu- Ville-Marie v. J'rimeau 229 (2> larber V, l!,i(;hards 51 (14), 87 (68) larker v. Mechanics Ins. Co 7 2(17) larkev V. pMrker 8(53) 72 (1^ larker v. Valentine 8 (53) •miiii-v. V. Gladding 80 (5) lartlie V. Armstrong 110 (2 > aitlett V. Howley , ' 1 C'> 1 XX INDKX l)K CASKS. MarMoy v. Hodffos . . 2S) JJ.iskrr\ illc V MarriR 2r' (7) Kuti'lu lor V. Liivviciioo 184 Batenian v. M id Wales Uy. Co 54 (9) IJatKoii V. King 184 iiaUn V. Leolair 2G (.t) Hawd, u V. Howell 121(11) liiixm ;ile v. Hciinctt 48 (13), t'.' (1), r,u (5) iJaxter v. Uilodcaii '•''!' ('^) liaxtiT V. I'.rciinan i)1 (2) i^axtiT V. Ivoliiiisoii I'.il (I) Barti liiii V. ( 'oddy 20^' ('.'I) Hay lev v. I'abiT 28 (4) P'azitt V M. yor , , 2ril JJi'ak V. Vniik .... , 80 (7) lirHidsloy V Mill 24 (2 Bo.'iiidry v. liUtlamnn- 7 (4;i) Mean lien v. lu'iiiors 12 I'l'iiubioii V. Huston 5fi (24) i:!caniiioid V. Gicatlioad 201(5) lieauiiiuiit V. (ireatliead 203 (2i Beanine v. Hurti 24 PiObce V. MoDR; ] ||, Bechervaise v. Lewis i 2 1 ( ">), 1 7:; (8), 20:! (3 i Jii fUett V. Cornish 141 (4'j Bcddell V. Katoii 214(14) Bi'dtord [iisuranco Co. v. (.'arell 72 ( .'Icicher V. Gowcr Id (iig) Beechini;; v. Gowor. .... 135 (l^ BtHMiiai) V. Diiek 6-: (7 iJoeston V. Be. ston 1 01 , 85 (,')2 Be,u;lii(r v. Levi 28 (S Beique V. Bury 01(1' Behuifri'i- V. Haxter ;)T (2 Belfast BanUini;- Co. v. l.)oherty ; 99 (2' J'.ell V. Lord liigestre 51 (l : B.'ll V. iMoftatt 18(; (fi (!ell V. Manning 21;'. (?! liell V. Morrison 2 Boll V. lliddell 83(36 Bellamy v. Marjoribankf- 2'! I'leniis V. JL Kenzie 25 (7 Ik'nnett V. Bromfitt (>:! \:\ lienoist v. ileyl'urn 1 25 (4 lUmthall V. ,)udkin8 l!i( r'eiiton y. Gibson 'lH (' i'.eary v. Alderman <3\- (2". ['■erry v. Bobinson . , 2r> { I!i;rton v. < Central B:ink 41 (4 l!c's-(!tte V. La Lanque c\n Peniib' 2o4 (,S9 r.ettis V. Weller 2,'! (1 Biugs V. Wood 134 (12 Hi.tfgs V. Wood 1G2 (4), 228 (1 Jiilbie V. Liimley ..18 Bilderb."i(;k v. BurlinganiL- 2.") (3 ,;illing V. SoutI iiird V. Doyal . iliroieau v. Dero .iinliop V. Dextt llii*lHi|) V. lla\ w; !liKsell V. Fo\ .\; illllck V. (iesiicr ■Hack V. Strieki; llliukford V I'n liiiiekloek v Be] Dlaeknian v L' iiliickwood V. CI Blako V. Walsh ijjakey v. .Jolmso Hain V. Olijthan lliiitio V. lionrno iilarduMihagen v oHiin V. Dizon .-lloek V. Lawren .liiim V. Bidwcdl Blid' an v. Guntli .Miihlin.i^ton v. Se Biiisvert V. San re S(ilt"n V. nns(ilal ■ionth V. Bareiay ioiicher v. uiran :l()iioher v. Laton lion her v La\vs( L'.onllhoe V. Burl- Boidton V .lonrs Boiirdia v. Gnon' .'idlivier V. Collett ;!ove V. Macdonal 'owes V. Howe., ilowen V. Viel 'ii)wi(i V. Skinner -iinfker v. Kenn. owlini; V. Harris jownian v. MeCh jiiyee v. Kdwardf ioves V. Joseph. . ?>radbnry v. Bailli ^r.idbiny v. Olive Iradbnry v. Pooh ii'idlongh V. |i(! I rlnimah v. iiobert iirander v. Cobb. :iiaiidon V. Barno 3iay V. Had wen . .iinzelton v. McM ireeze v. Baldwir .^-rettilot V Sandc .Hi-ott V. Lovett . . . '.rett V. Ming. .. , M'ew.ster v. Chaj)! INDKX OK CASES. XXI .lillinK V. Soiithce 80 (2) Bird V. Doyiil .. H'l (4) rfiroltftii v! Doroiiiii 86, 100 (57) iishi.p V. Iirxtcr 25 (7) Dishcp V. Hinwan) 120 (4) I'.iKsdl V. Kox A; Co '268 llliick V. Cicsiur 81 (19) Jlack V. Stiidx 1(111(1 •228 (4) lilat kfoi .1 V Fiostoii 8:5 (34) Ulacklotk V I'tpin 205 Ulaikiimii V Liliiimii 2ti ( I 1 ) r;liickw Blakc) V. Wiilsli 83 (31) ulakcy V. .loiinson 47(1) iilaiii V. Oliplmiit 1 I .: (1 ), 151) (f.) IlUiiio V. lionriif 116 (12) I'.laiiUoiiliii^'on V. I'.Iiimioll '20 (4) :;iii)ii V. Dizun .... 14G (1), 1 18 (19) Block V. Liiwnnici' i 2;: JInm V. I'.idwcli 13!) (22), 141 (43) Bliit' ail V. Gautliirr 56 (27) Miildinuton v. Scliloiuki-M'. ... 135 (l'.>) yiiisvi'it V. SiMirctte dit Larost 21 7 ( Ht) Milt'ii V. 'Iiiijiiali- 24 (S) iiooth V. Barclay Ill (8), 1 S5 (I) iOiich(!r V. uiiard 56 (27) .loiiciuT V. Latour 194 (1 1) . 1 (1 0''9) ''"" ^"''' ^' Lawsoii 251 ]35 (IS) Boil 11 hoc V. iiiirku 220 (55) Boiilton V Jours 8(48) Boiirdiu v. (Inonwood 219 (15) •ioiivicr V. Collcttc 56 (29) ;!ovc V. Macdonald 203, 2()6 ( 29) -'owes V. Mowo 1 39 (22), 154 ■lowcn V. Viol 97 (P lowie V. Skinnor 57 rlov^kcr V. Foiin 2 1 s, 223 (34) owliiii;- V. Harrison 152 (58) jowiiian V. McCht'sncy 2 '> (2) ;]i)yce v. Kdwards 195(14) ioy<'s V. jDscpli 127 (2) ;iradbiiiy v. Baillic 220 (UO), 222 (82) Iiadhiiry v. Oliver , 51 (17) Iradbmy v. i'oolo 135 (15) iiiidloiigli V. He Kill 251 riramab v. Uolicrts 55 (I 7) Blunder v. Cobl 134 (12) Brandon v. liarnett- 87 (71) Bray v. Hadwen 149 (28) Brazelton v. McMurry f* ( ' 0) '.r(^ezo V. Baldwin ''1(10 Ircttilot V Sandos 254 Brett V. Lovett 7 (34), 1 41 (39) 'rett V. MinK.... - 25(6) Brewster V. Chapman 214(10) . . . . 254 2r- (7) ....184 . 54 (9) . . . 184 26 (,i) 21 (11) I, 5(1 (5) . 97 C>) , . 97 (2) 191(1) 10-? (21 . . 28 (4) ... 2r,! ..80(7) .24 (2) ..7(4;!) . . . 1 2:i . 5f! (24) . 201 (5) 203 (2)) 24! 1!10 203 (3i 141 (4J) 214 (14) .V2(l«) 6^ i 85 (5 .28(8 ,91 ( .97(2^ 99 (23 51 (P ) BC (('. 21:: (3 2'.' S3 (36 ....'2(5 .25 (" 125(4 .. ..Ifll |.'2f (" 9v cr. ,.25 {' 41 (4 !(>4 (.S9 .2:'. (1 34 (12 228 (1 . ..IB .25(2 xxir INDEX Oh CASES. IJrigistotk V. Sniitlj 221 («6 liriiul V. Ilaiiisphiiti 'lO (3 liristow V. Si iiii''villis 26 Brittori v. Fioher I lrt^(») bri'jHli Linen Co. v. ('ali'doiiiun Ins. Co U (56 liritisli LiiKtn (lo. v. I)i nniiuond 25'' Brockwuy V. Alh'H 72(14' I'.ioniUKi; v. Lloyd aO (I), f)l (9 . Bioiiiii^'' V. ViUiKixitn 14K (21 , Biomlny V. Ihiinton 80 (7 Bran Icy v. The Houth Hasttrii lly. <'<) 25 1 Bioodic V, .Jdliuson 221 (64) Brook V. I look *>** W, 7o ( I !» , Brooke v. Arnold 92 (6> Brook." V Clcf,'-; 118 (If), BroiiKlitoii V. Manchester Watet Works Co 6;i (I), 64 (7, Brown v Btitchcrs jJank , ^3 ( > Brown v. CurHs.s 10' Brown v. (Jarrett 7t) (I . Brown v. (iordon 214 (12. Brown v. Harris 202 (14 Bn.wn V. I lowland 47 ( Brown inft v, Bruneuu v. Barnor! 50 (22) Brunei v. Lalondc OS (">) Brncc v. Lyttle 141 (3!») Brntf V Picard 230 (16; Buard v. Lemee 22V Butler V. Alorri.son 141 (43^ Burke v. Elliott 141 (4.^, Burgo V. I iVjX'^ti .... 1 4 1 (3!» . Burj,oss V Northern Bank 180 (2 Burnhani v. Watts 6 (25. Burns v. Snow l.'^G (8), is: Burinester v. Hogarth 180 (7 , Biirehtield v. ]\loore • 1 0'J (5 • Burgess v. Uieliavdson 252 BnrrowK v. .Teniinio 25i Butl'alo Bank v. TruseotI 24w Buxton V. Jones i:!C (24i Burnett v. Jlonaghan 1 34 (3, Buckley v. .Jackson 116 (20. Burtht! V. Donaldson 111(7; Binr V. :\rarsh ,^0 (OO i Bunion v. Benton 82 C23), 80 (06) Hull V. Cuvillier ! 82 (23i Burke v. Bishop SO (6 > Burber v. Morton 80 (2 ; Kuoklej V. BriMK rturson V. Hiintii iiinth'! V. Arnisli Kurthe v. Donali liiilt V. Morrell Hmiington v Crt •{yrne v (Jroyson livrnes v. 'I'rudta I'iddwell V. Natioi O'lillow V. La wren rumidge V. Allenl iJiimphell V. B(dr( Cum I the II V. Dent Ciirnpheirs Estate finiphi II V. Kren( iimphell V. (iill. Caniph(dl v. M( Ki ,'aniphell V. Steinc 'anadii Karniers .^ 'luiada Investnien itnadiai) Bank of ( 'itnadian Baidv id' .'aiiadian Bank ot i 'Jiiiial Bank v IInl ,'iir V. National I'.ai iirden v. Fin ley , Jarden v. Iluiter. iiriss V. Tiittersall ^iirlit(»n V. Ki neall arlon v. Ireland . . 'arlon v. Kenealy :'!irlos V. Fancourt irpenter v. Fansw 'arpenicr v. -McLai Jarrington v. Uoots .'arslake v. Wyatt .'artier v. Pelletier .'arvick v. Viekery .'ashonrne v Duttoi 'asgrain v. Chapais isli V. Kennion. . , .'armena v Mix . . , 'astrigut! v. Buttin! ary v. La (Jie de Pi .'aton V. Caton Jawley v. Furnell.. •azet V. Kirk 'halmers v. liUnion Ihambers v. Ga' Im Jhambers v. Miller, 'hanoine v. Fowlei 'hapdelain(; v. Vail tNDEX OF CASES. XXIll (7 (5. I 253 25] 24> (21 1 (3. (20. (7; 160) |(;6i |23i (6. (2 lillcklrj V. IJlllIlcllr .It; (21 7 rtiiiMon V. IIiiiitiiiKdf 17 (I), lU (1) liiirtlx! V. AiinKtroiin 1 '228 (I) ItintlH! V. DoiialdKoii i.^ (13) Unit V. Morrcll. .'M (4) iiiii iinntoii V CroHS 7 {'Sd) ■iynio V (J loyHon HO (2) liynifrt V. 'rni 'lunula Karmors Mut. ln«. Co. v. Watson 83 (36) Canada Invostniunt Co. v. Brown .^29 (2) 'anadiaii Bunk of Cotninorct; v. (Jroon 204 (.18) .'aniulian Bank of ( loinint'ixt! v. Gnrlcy H3 ( 29) .'anadian Bank of (/'oinnicrct.' v. Woodward,,.. 214 (13) iJanal Bank v Holland , Ill (tl) ;ar V. National Bank 1 GH (3) ardon v. b'inloy 201 (7) Jardcn v. lluitcr 241 (2) ariss V. 'rattorsall , 230 (IG) Carliton v. K. uoally 24 (13) ,'arlon v. Jrtiland 26:'. .'arlon v. Ktncaly 24 (16) Jarlos V. Fanconrt i) ((iO), 26 (6) 'arpcntor v. Fanswortli 7;'. (22) 'arpcnicr v. McLatii^hlin 18ii (6) 'arrington v. Koots . , , 255 Jarslake v. Wyatt 2)4 (14) .'arlior v. HcUetier 56 (27) arvick v. Vickory 114(11) asbonrno v Dutton 7 (4 3) 'asfirain v. Chapais . . .56 (26) asn V. Konniou 253 ?armena v Mix 142 (50) .'astrignci v. Bnttii)L,neg 34 (1) 'ary v. La (Jio de Papier dn Canad.i 1 7:'. 'aton V. Caton 63(3) Jawk-y V. Kurnell 221 (65 68) :r/A'.t V. Kirk 7 (42) halmer.s v. Lanion 119 (19) Ihambcr.s v. Ga' land 22 1 (63 Ihambers v. MilU-r 200 (1), 201 (9) hanoine v. Fowler i 148 (22) hapdelaine v. Vallee 56 (21) I i XXIV INDEX OI CASES (Jliiif)rl V. llickes 80 (2) ('lia|iiniiii V. Hisliop 151 (")2) ('hai)inan v. Ktanc. , -., 148 (22) Cliapnmii v McFoe 249 (3) Gli,i|)t)iiau V. ilohc 50 (4) Child V. Fox 150 (3S) (Jha les V. IJI.ickw. II. 70 (IS) i'hasemoro v. 1 unur 219 (iri) C^haiider v. Biokwitli lO'i (2) (MKJinmiin.ij Canul Bank v. Bra (nor 'V ('«)) Oiiosiiijy V St. John . , , 6 (li>) (!hiihoster v. Hill lOH Cliiropoi; Bank v. Phihuldphia Bank i:!4 (2) (.'hilds V Moiiins 715 (2-!), 7» (27) (Jhinu- V.J, tl\;ry 118 (7) < 'hishoitn V Nuniplu , 21^! ( .ii) Clioirt V. Diiph'.ssis ... 56 (22) ( 'hristii; v Fousinth 22o (;■>()) i,!itizt!ii.^ Bank v. Imkiuc 214 il4) < 'itizt n.s 15ank of Loiiisiana v. New Oih'ans Bank 169 (2) ( 'itizi'Hs Bank v. Walker 1 52 (5J) City Bank v. Choiu'V 72 (P) ('ity Bank v. First Nat. Bank 181 I'iiy Bank v. (Jcrrard 230 (14) t'ily Biink v Hunter 140 (::5<;)) 214 (14) • :ity r.anl; v. l.alieur 50 (28) •'ity Baidi. V. Ley 248 <'ity Bank v. L'lckie 170 (7), 17 1 (7) City ■ f Fiederickton v. l.nca.s 82 (22) City of (Jliisjiow Bank v. Mnrdock 55 (15), 91 (1") Chi|>|. V. liiie 186 (f>) Chirk V. City of Dcs Moines 54 (11) Chirk V. Exeiiange '.)ank „ 64 (7) <.'laike V. Ash.... 7!) (i) I'hiyton V. Uoslins; 26 (8) < 'I'KK V. Levy 23l Clerk V. Pigot 121 (12) Cloroux V l'i}i;(!OU ]9:i (Jloveland v. The Exchange Bank 201 (11), 20G (15) < 'hide V. Bayley .' 149 (29) Clongh V. Davis 28 (9) • 'oates V. The Glen Briek Co 54 (10) Coden v. Hide 201 (4) < ;ole V. Cole 8;?, 89 (33) Cole V. Hills 231 (21) (.'olehan v. Cooke 26 ((!) Coleman v. Dunlop 82 (21) Colling V. Hey wood 220 (52) Collins V. Bradshaw 63 (2) •'ollius V. Trist 185 (4) • Collins V. Lineoln 7 (38) Collins V. Martin 87 (72) < Mollis V. Emmett 24 (2:t) Collis V. Slack.. 222 (77) 0 I'onway v. Wil i'ook v. Ijister look V. Satterl •ooK V. Wright i.'doke V. State ''ooley V. Donii I'dolidge V. I'ai •'ooly V. Lawrii '■■loper V. Blaek I'doper V. LeBli| I'ooper V Meve •'<(>per V. The 1 I'oiiciitt V. MeJl I'opley V. M'jF. I'orheit V. State I'orheft V. Stoii' I orkerry v. Jioy ''M'lioration of ] 'orp. dcs Chute ''orpuration >i 'orporation of ( ''i)r|)oratiou of I ''orporation of '.irrabey v. Na' i':nr.)lton Bank 'iirrntli v. Baigi i'osio V. DelSerr I osgra^e V. Boy '''>te V. ficmieu: '-'ote V, Morriss< '-"oiinty of Pertl I'ourso V. Shacl •'ourt V. riionii ''o'u-tehray v. B ''"Mrt and v. Sa; ''ousinean v. Lt )4 (10) 'A)\ f-M 59 r;!3j lU (21) . 26 (fi) ^2 (2n 20 (52) (i3 (2) 185 (4) . 7 (38) ii (72) >A (2:i) 22 (77) .90 (2) INDEX OF CASES. XXV .Vjlson V. Arnot ... 92 (2) OoltiT V. Lee V'-' 0) Col villi; V. Fiiinagaii 80 (»)) Coimn rciiil liaiik v. .Tohnstou 214 (1 ♦) (Niinmcriial Hank v. (Jul vert 135 (15) ('oniiiuTcial Jtank v. Kcclcs 1.^2 ',59) (Joimiuircial IJank v. Harris i94 (4) Citmimnial 15ank v Newport Mfg (!« 7.0(38 i'oiiim' rcial Hank v. Paffo .S3 (32) I 'ot))in), 22 (2), 54 (6), 75 (35) :irrah(^y v. Navarre 225 4ir.)lton Bank v. Taylor :!7 (17) ' urrutli V. Paige 221 (07) I'osio V. Deliernales 250 ' osgra"!^ V. Boyle 151 (4 9) 'ote V. Lemieiix 1 (33) 28, 29 (7) 'ote V. Morrisson 217 (25) ' 'oiinty of Perth v. Mc(i regor i^ (4 4) 'oiir.se V. Shacleford 25 (7) I'ourt V. riionipson 218, 226 (35) 'o'utidiray v. Ivils 226 'omt and v. Sandars 72 (13) ''ouHineau v. Lecours 162 XXVI INDEX OK CASES. Cowiui V. Tni-:^t(»ii 147 (4 Coward v. Hnglics 81(15) Cowic V. Ilii!l 230 (3; Ciinliffe V. Whitehead 1 1 1 (10), 1 13 (7 Cniiiiiiigham v. Lysttrr 18'. Ciiirie V. AJi.- Cushiny \-. Diipdis iTJ Ciivillier v. Fraser. 1 18 (5). 214 (10 . D Da Costa v. Coir 2:' (4 i Dalt(Hi V. Laki- 7!) (1 1 Daly V. « i raham , 249 (Hi Dana v. Ihadley 1 39 (27 ), 141 (37 ; Dana v. Sawyer ! 33 (2 > Dandtuaiid v. iloiitier 1 34 (5j IJaiizigcr v. Ritcliie 55 ( 1 Ha) Daonst V. Ceotlrioii 2^8 (60) IJaiah V. Cliiirch 217 (29) Dariig v. Hrown 218 (37; i)arlinp; v. Gillies 132, 14: Darn 11 v. Williams 80 (21 Dasylva v. Diifour 7 (32) Dannais v. Cote. i>ii (28) Davidson v. Bartlett 215 (IS) Davidson v. Cooper 230 (13) Davis V Dunn 1 3 t it^) Davis V. Kear 56 ( 20) Davis V. Mui r S5 (5*^; 1 aavis V. West Dawkes v. Lot Say v. Sendth Day v. Stnart. Deacon v. Sioi Deeaiy v. Foin Jueelh! V. K:i Deeelle v. T. Deevint,'- v. Ha; Dt' La Chaiiim Dr la Courtier De la Vega v. Dehiney v. Ha Dciito:! v. Pete Dtrljy v. Thra Oesharats v. DiKchamps v. .')csiiets V. Tra DtSoIa V. A.scl Despard v. Klg Dcsrosiers v. G D'KKlimaiivilh' Devaney v. P.ro Diek v. Lever! ■Jickensoii v. 1 Dickenson v. ». Dickenson v. V Dickins v. Heal Di.\on V. Xiiita L)i\on V. Pail I . Doman v. Dilic Don V. Lippma Oooley V. Ky.ii Dorais v. (Miali Dorion v. Dorii Dorwin v. Tho: Douglas v. I'.Ik Doutre v. La i>! Howling V. Kas Downs v. .McNi Doyle V. Carrol Doyle v. Prevo Dressor v. Miss Drew V. Rolx-rt Dnunin v. Brad Duclijiine v. Mi Di'eliusnay v. li Dufresne v. Gu Dufrusiie V. Jac Dutresnu v. St. Dimham v. Cloj Dulley V. Hum Dumas v. Baxt Duncan v Can Duncan v. McC INDKX OF CASE.-:; xxvir Jiivis V. Wt'st Saratoga lUiilding Union 53 (4) 3awkes v. Lfird Ueloiaiiir 9 (59 , Day V. Sendthorpe 1 1 H 1 1 ) Day V. Stuiirt 85 (52) Dfacon v. Siodhart 'J(i2 (-.'2) Dctary v. PotninvilU: 208 ^5^>) ■)t'(;elle V. Kainoisclle 52 (17) Oucidli! V. 15 rtiaiid ,S4 (39) Deeviiii,'- v. Hayden '■ (1 •"'). ' 10 (36) Do [ai Chaiimi'tto v. Bank of England 121, 252 (6) Di- la ("omtiiT v. Bellamy 9 (65) Do ia V> fia v. Vianna 252, 255 Dflanoy v. Hall 15'J (10) Denton V. Pftcns ." 1 (i 5), 8G ((14) Dfrby v. Tliviill ...231 (21) Dusbarats v. Hamilton 123 185 Drschamp.s v. LCyin- " -3 (1) .')csik't.s V. Tralian 64 (7) D( Sola V. Asclji'i- •"'(!; Dt'siijird V. I']l,i,^ie 97(7) Dcfiiosicrs V. Gnurin .'14 (I4> D'Kstimaiivillc v. Touyignant. 57 (29) Di'vanoy v. I'.rownlcc 47 (3), 214 (14) Dick V. Levcrich 69 (10) ')ickc'nson v liowos 15-1 Dickt-nson v. <,'U:inow S2 (24) Dicki'n.son v. Valpy '.'i (1 7, 1 7a) Dicl ( If)) Dill uis V. KviUiB 16;{ (5) Dnr V. F.rrari 184 Dniand v. Scevenson ^y- (17) Dino( her v. Lapalme 121?. Diitton V Lake 82 (27) Dntton V. Mar.sh 72 (i:^), 73 (I9i Div ly V. City of Cedar Falls 54 1) Dv.iijiit V. Kllswortli 83 (.•}7^ Dwight V. Emerson 25 (7 1 E East V. Smith 1 .'lO (^s ; Fasterly v. I'lillen •J21 (Tb K.a.stcrn Townships Bank v. Municipality of Compkon ."» (6,1 Ea twooci V. Westley 181 (2; Kcfort V Des Coudres -5 (7, Ed<,'ar v. McGee 22o (.-.4 1 Ed^re V. Bumford Ill (10), I 13 . 7) Kdi • V. hast India Co 11« (s- Edis V. Bury 5 (lo), JO (2i Edm-'iuis V. Goater 22'i (7i:; Kdwad,s v. Dick 8.') (.51; Ekins V. biast India Company 25:'. (J) Ehler V. Kelly I I". (1) Klford V Teed 13:'. (ihi Elliott V lieach. .. 6 0'^) Elliott V. Cliestnut 47(1; Elliot' V. Crrenier 56 (.2. Ellison V. Collingridge 5 (7 > Elsom V Diuny 203 (31 ) Elsworth V. HrrtWer. 2 'l ( ■.2; Emm tt V. lottenham r.'2 ( 1 7) Engel V. Stourton 91 (8), 21'.* (2) Ennlisli Credit Co. v. Ardouin l',;4 (7) Ennis v. Hastings 11' ( 1) E|iosit<> V. (".owden 25' Ernst V. Steckman 26 (0) Esdaile v. La Nauze 7 " (20. Esdaile v. Severly i;;7 (11), 139 (22) E tabrooks v. McK''n/.ie 1 1 8 (6), 202 ( 7) Este V Smyth 2 VJ Etheridge v. Ladd 131(11) Ethier v. Thomas 74 (29) Etting V Commercial JJank (i9 (13,i Evans v. Cramlingti)n 1 16 (6) Evans V. Foster 135(13; Evans V Murley 83 (29), 85 (."in) Evera'd v. Watson 147 (3, 15} Ewart V. Walker 52 (17) Ewin V. Lancaster 52 (18> Ewing V. Cameron ' 1 59 (tt Kxchange Ban Exchange H n F'chanKe Banl ..xehaiige ban Exchange Han Exchange Ban ^2 (23) hx|.;irte Cairick 169 (4, 6) Exp .rt ■ Chalnier.s 1 0? ( I ) Ex arte Cote 50 (5) Expartc Dcver 167 (2), 172 (7) hxparte l>cver lie Siise 26S (3), 1 70 (4), 121 (7) Lxparte Dcwhurst 170 (7), 177 (5) Ex|iartc Dickin 168 (2) Kxpartc I' dwards 70 ( 1 'J) Expaite i'hnopean Bank 91 (7), 2u4 (41 Ex parte Gent nd South American Co 172 (2 Exparte Gibson 26 (II Kspnte Gomez 167 (1), 168 (1), 172 (2) Expartr Harrison 113 (!) Exp.irte Hay w od 48 ( , 7) Expart'- Inibert. , IVJ 6) hxparte Imerson 7 (41) Expartr Joint Slock Discount Co I7u (7) hx|.arte Kelly & Co 168 (4) Exiurte Kin^'ston 8!S (83) hxi>arte Lauiliton 167 (1), 170 (7), 171 (6) Ex arte liOwcntlial 147(3) Kxparte Manchester Bank 171 (">) Expa te Maxandotf .... 2(5 (43) hxparte iMawbray III (12) Exparte Newt n .'*0 (2) 87 (76) hxpirte Oriental Bank 119 (21), 167 (3) Ex|iart- I'r nge. 1^7 (8) Ixpaite Pnri 170 (7) Exparte Khodes 11 1 (12) hxparte Robarts 195 (. 4) Exparte Rumball 172 (2) Expaite Schotield 87 (78) Exparte Snuiit 168 (4), 172 (2) Expane Stephens 171 (3) Exparte Swan 90 (4), 119 (20) Exparte Taylor 205 (43) Exparie 'J'ootell 20 (14) Exparte Twogood .• 51 (16), 8 i (78) Exparte Waring 171 (1, 7), 170 (7), 172 (2> \xx INDEX Ol' OASES. Kahiustock v. rainier 7 (12) Fairbanks v. J'.irlow • ■ . .178 Faircliild v. OfjikaiKburi; Jtailway ('o 19 (2) Paircloiigh v. Pfivia..... 1 10 (10), 185 (I) KaiiKliaw V I'cet 42 (1), 4:5 (I G) FarnuT v. liand 23" (5) FarnitTK «fc M. Bank v. Horsey '" G) Farrcill v. Oshawa Mannractiiiiny Co 'JM (14) Farrasworth v. (iarrarci 80 ('Jl Fearn v. iicwis 221 (tj6) Fee V. GoneL'al 85 (54) Fenton v. Bkiekwood 2 1 3 (8) Fenwiek v. Ansell 85 (51) Feaiinfr v. Chirk 47 (1) FerKiisou v. Fyfe 25'.', 25:<, 'J55 FeririisDH V. Stewart 118 (.s), 202 (18) Ferrie v. Mouse of Industry 182, 201 (l(') Fesenmyer v. AiUoek 7 (43) Field V. Wood 28 (4) Fife V. Hound 252 First National Bank v. Ilioker 183 First National Bank v. Strong; 49(1) First National Bank v. Ward 172 (8), 203 (33) Firth V. Forbes IGO (4) Firth V. Trnsli 149 (28), 150 (-15) Fiset V. Fournitr 218 (liO), 22(; Fisher v. Arehihald SO (2) Fishers v. L'alvert (ti2) Fisher V. J(;wett 56 (26) Fisher v. Leslie 7 (\?.) Fisher v. Meelian 1 84 Fitcii V. Jones 8;i (3:;), 85, 101 (52) Fitch V. Kelly 231 (22) Fitclihuro: Savings Bank v. llice 8 (5!) Fitzrandolph v. Slianly ''*^ (4) Flack V. Holm 2ri4 Fletcher v. Noble 82 (27) Fletcher v. 'i'hc Hank of U. S 63 (5) Flower v. Sadler 86 ((ill) Flower v Swift 74(23) Fogg V. Virgin 72 (!2) Foley V. Hill 164 (Ti Foote V. Bragg 230 ( 19) Foote V. ISrowu 19i Ford V. Auger 220 (I) Foreman v. Walker 1 25 (6) Forster v. ]\Iaikretii 261 Forsy til v. Forsyth 81(16) Forsyth v. Lawrence Ill (3) Forward v. Thompson 7 (:i:'>) Foster v. Bower , 110(1) Foster V. Farewell , 113(1) Foster v. Geddes 64 (6), 73 (I'-^j Foster v. Mael Fowl.T V. Bia Freak ley v. F( Kreer v. Brelia Fry V. Dudley Fiiclis V. Lega Fuller V. Sniit FuUeitou V. C Gae^non v. Syl\ Gile V. Kempt (iiillery v. Frm Uiillon V. Math (ill se V. City Garden v. Bi uc GiOiliner v. IL Giinlner v. Wal Garland v Jact Gurn^ley v. Clu GfUiard v. Lew Oilskin V. Davis Gt'di'gn V. Surre Gorgen v. McC Georgian I5ay L Glmow v Holt G -rviiis v. Dubt Giiinl v. Giard GuimI v. Lamuii Gilib V. Matner Gibbs v. Fr»moi Gihsoii V. Giiisv Gibson v. liiiie. Gibsotie v. Lee Gi 'dings v (Jid Gilbert v. Coopt Gill) rt v. Denn Gilbert v. Liona Gillii'it V. McAu Giles V. Bowri Gill V Cubitt. . . (iiik'spie V. Matl Gillet <■. Uaclial Gillin V. Cutter (iilniour V. I'hoi Giliiioiir V. Whi Ga"i)d V. Credito Girouard v. Guii G roiiard v. Lad Girvan v. Piice. Giackmcy> r v. 1 Glad-toue v. De (I'lilfray v. Cnuli Goggerley v. Cu INDEX OP OASES. XXX£ Foster v. Mackinnon 57 (31), G9 (13a), 103, 104, 105 Fowli-r V. Biantly i>8 (9) Fn-akli'y v. Fox 21'.* KreiT V. Hrehaiit 10 (iil)> Fry V. Dudit-y 23 (2> Fiichs V. Legare 2 1 'J (38> FulkT V. Smith 199 (G) FuUeiton v. Chapinau 9 (57> G (lasiion V. Sylva .56 (27y Gilt! V. Kcmpt-r 152 (62) Giiilfiy V. Fniullo . ..4J (3). G.'J (:>) GiiUoii V. Matheitu' 57 (34) (ill m- V. City ufClark.sviilo 54 (11> Gulden V. Biuce 220 (53) Gardiiier v. Houghton 254 Gardner v. Walsh 2.50 (12) Garland v Jaooinb 1 8o 2) Gmn-lty v. Ciiapman 81 (13) Gimud V. Lewis 24 (18), 48 (I'l), 23:! Gaskin v. Davis 24 (16) Gcoiiiri V. Surrey 6:i (2> G oi fiun V. McCarthy 5T Gior^dan Bay Lumber Co. v. Tliompson 79 (1) Geiow V Holt 74(28) G .rvais V. Diibo 84 (3'.», 42) Giard v. Giard 2iS (33) Giani V. Lamoiireiix 218(35) Gilib V. Matiier 126 (22), i:'.5 (6) Oibbs V. Fremont 253 Giiison V. Grosvonor 222 (79) Gib-on V. Hine 1 1 1 (4 ) Gibsono V. Lee 208 (.■)4) (ii 'dings V (Jiddings 51 (9) Gilboit V. Cooper 185 (4) Gilb rt V. Dennis 14i5 (2), 147 (4) Gilbert V. Lionais. 2o8 (5'J> Gillii'it V. MeAnnany 54 (9j Giles V. Bown . ." 9(65) Gill V Cubitt 94 Gillespie v. Matlior 27 (21) Giliet V. Radial <4 (2:5) Gillin V. Cutter 6 (25) (iilinour v. Ihorapson 84 (41, 42) Gilinoiir V. Wliishaw 2!8 (32) Giiod V. Creiiitors 222 (81) Giioiiard v. Guindon 84 42) G roiiard v Lacbapelle 56 i 24) Giivtin V. Piice 93 '^12), 150 (40) Giackmcy> r v. P^-rraiilt .\ . . . 2 i 7 (24) Glad -tone v. Dew 229 (2) (iiidfray V. Cuulman 1 8(7; Go;,'gerley v. Cuthbert 51 (14 ). C -\XXIl INDEX OK GASES. 'ioldio V. Maxwell 191 iJoldHinid V. Hampton 48 (17) Good V Martin 19i' Goodei ham v. Hutcheson 83 (29) Ooodall V. Pollull Hit (30) Oodhall V. rolley HO (:, 22 i (44 Hays V. David 28 (1), fil (17), 20(J (41), 217 (2 H aly V. Dobson 21 1 (n Ii)rnl)lowrr v. I'ro liiriH- V. Uoiiqiiclt ]iir|)liani v ('liild Iiiitsinan v. Htiiisl Iiiiillon V. I'arsoiu ](iUM!coinl)t' V. ()(> H< Hrn> y V. Kim h 2S (I Imisfgo v. Cowoii H (ivisidr V. Miinn I IM (8 Ht'jitli V. Sanl^(ln fif) ( i H-ilbnt V. Nixil 69^17), 113 (. IN 1 H<'lwt'<;i! V lliliornia National Bank 23 Henitiilt V. 'Ihornas 81 il Hciidtiisi.n V. C Iter 7n { Hi ndeison v Coi vt. t.t 55 (II HfiU'v V. Fiini an 2 15 cJla HiMiuin V. Bouigi-anlt ri7 ( 2 Hrwitl V. Kiiye 80 (I H'-nry v. Little >•} Hfiald V. Cuiinaii' 73 Hot Hijjlinoss lUukntiaboya v. Mottichiind 25 H utres V. FitroN ii; 7t 2t Hewitt V. Wiitirinan 201 (8 Hilboai V. Alfoid i;:)(.' Hiikic'.s Case 170 (7), 17 ■ il Hidd.ii V. CozKons 219 (3 Kill V. Heap 137 (9), 140 {in Hil! V. Halfurd. i' (H Hill V. Mai till 2G (7), 83 {M), M5 (5J Hill V. McL-iod 79 (I), ii3(6 Hillv.Ryan 7 ■ (1 11 ill v. Wilson 80 ( Hilsbn g V. Muycr ..'5 Him- v. Allfly 136(23 Hii>th(iold V. .Smith 23 (1,4), 24 (15), 114 (2), 195 (16), 230 (4), 5 Hiisi hniaii v. B id.l. ... , 22li (2 Hit hc(Kk V. Buaidy. ili)>*land V. Kdmoi ilnwiand V Jtnniii Hiiwlcy V "Bcveilc. 3'ilil>aid V. (Jill ni. Biililiard v. Jaek^n Hnlihard » . Mosely Hii er V. Steini r. Hiuinn V. Gimtiard tiawkos V. Salter Hunt V. Adiims. Hunt V. Lee . Hunt V. Stone . . . . Hunter V. Ligraiiai Hunter v. Potts . . . Hutch ins v. Cohen Hyper v. Griffin. .. imlay v. Kllefsen lra|n;rial ISank v. 1 Injthim V. Frimroi Innlis V. Allen . . . nmiin v. Claiv.. . . iin"s V. Mnnro. . , In re Lemav & al. ! k re McDougall . /" re Uobinson . . . , in re Siiminerfliddl Ireland v. Livings rviiie V. Lowry . Irwin v, Ciooshanl irwin V. Freeman. inrael v. Izrael . . . h INDEX OF 0ASE8. XXXV .,99(1!. . . . H (52 ..98(1 ..-IH (I . 164 (12 . . 6(19 ), Hf) (52 221 ( 22 I (44 , 217 (21 . 21 I (n . ..2H(I . I UA (8 .r)f) (19 114 II 23 ..81 (1 . . 79 ( . .55(U 2IS CJli ..r.7(: . ..80( . .>3 i,.i ..7.^ ) 25 ..7t 21 ,.201 (8 . ..'!:(( I, 17'(; 219 (3;i 140 (Jll .. il (H , 85 (54 ), 113 (fi ..7 ..80C, . ...■!', 1 36 (23 . 22it (2 . 73 (22 .. .9 ,48(U , 99 ('.") .. ..2 99 (28 .19(i XO (f ,, ..25 .26(4 ), ^1 r 219 ( fi lll'(l . 186fi) 1.0(1 V. Hiilletibeck 73 (19) lodkiT V. Lc lie 135 (l.'i), 2 i9 (-t) o|i(! V (Jiildwcll 80 (4) ii kiiiKoii V. Forstor f63 (3), l';9 (•''') Ltriimr V. St-dc 202 (21) Idiiililow.r V. Proud 82 (2:^) iiriH- V. Ilonqiiflte 2.")3 in|)liiim V <;iiil(l • 148 (21) iiit.-iiniin V. Hoiishaw 68 (7), 181 (1), 184 [..niton V. I'lirrtoiis , . 28 (7, 1 0), 30 ImiMKonihi! V. Cotton ■il (7) ](.iis(jr(. V. Cowon 147 (4, 6), I no (36) iov.y V. Nolin M9 (1) i..war(l V Godiird 92 (4), 93 ( I 2 > 3iiW)ii d V. .JoH'K 1 9(» iJiiWiii-d V. Sjiboiirin 150 (46), l.")2 (.'iT) ■iiiw V. Bowes 151 fLiwkins v. (jiiidy 113 (9) ijii* land V. Kdmonds 25 (3; •jiiwliind V JtnninRS 194 (3) Hiiwi.y v-lievfiloy 202 (19) 3'ililiaid V. Guirn.-y , .'■.2 (18) anliliiird V. .Ia3) cr V. Stfin.r 257, 2.")8 Hiidon V. Girnnard 242 (5) Hawke.s v. Salter l.'')0 (l2) Hunt V. .Adams 186 (6) .^iiiit V. 1,00 97(1) Hunt V. Htono 148 (.'5) Hunter v. Intiralian) 42 ("i) HiiiiKm- v. Pottrt 254 3utclilns V. Ciihen 27 Byptir v.Griffln 72 (12) imlfiy V. Kllefsen 251 Imporial I'.ank v. Biydon 52 (17) k'him V. Primrose 51 (11), 92 (2), 10-5 228 (3) Injilis V. Allen 51 M 7) .ninan v. Clare (i (2") 169 jm"s V. Miiiiro 213 (7) In re L(;raav & al. Insolvents 17'! k re MrDoupall 194 (1) .'') re Ilobinso" 254 in re Simiinerflddt v. Worts 86 (58) Ireland v. Livin/ston 167 (1) rviiic V. Lowry " (^8) rwiii V, Crooshank 131, 134 (9) rwin V. Freeman 214 (12) Israel v. Izrael 7 (43) XXXVI INDEX OF CASES. Jjuk V. Jack '20! (lo Jiitki-on V. (Jonimnn iiil IJiiiik (!;» ( i ij Jackso!! V. Jliidson 8(5 (2) JiictiliH V. It* iiKon 21 ^6) .lanu's V. Wutic , 141 (lit) laiis n V. I'axton 1 1:» (I, 2) loIT ricrt v. Austin M (12) Ifft V. York 75 (HM Jenkins v. IJosson 51 (17) Jenkins v. Muckcnzi«! 21! Jenkins v Tcngui' 122 (18) Jennev v. lltile 9 (58) Jennintrs v. llolierts IM) (38 Jewell V. I'urr 2U-1 (H) lex V. Ii'i'lanil !37 (1) lardine v. Uawloy 72 (11; Jodoin V. Dufn sne 55 (21) Johnson S( hool Townshii) v. Citizens Bank 75 (^8 (olmson V. (! colli ion 140 (H4, 36) Johnson v. Koliarts 88 (H2, Johnson v U indie 09 (15' Johnston v. May 2:fO (12| Joiiiiston V. Scott 5;') (20), 71 (.' Joii' s V. I'toadhurst 120 (I!)) 204 ('i'l Jones V. (}()rdon 03 (10) 9!> (27) 84, h(5 (li) Jones V. Hart G'.i (2) Jones V. liock ^^" (T) Jones V. Miildleton 25 (7 1 Jon's V. Alutual Insurance Co. of East Town 54 (5) Jones V. P('|)|)erc(irn 88 (84) Jon« s V. Hyde . . loii (5) Jones V. Simpson 24 (6) Jones V. Sun Mutual Insurance (>> 218 (HCj Jones V. Hank ot Sluntr>al 160 (6) Jones V. Wliithy 120 (I Jordan v. Coatcjs 133 (la), 16': Joseph V. Delisie I5'.> (!• Jos.|)h V. Hntton ..8 (50), 74 (29i Joslyn V. CoUinsoii 1!K Journey v. IMerct; 147(11, Judson V. GiiflSn 105 (It) Judson V Itaynes 248 Julian V. Sliobrooke 42 (3, Jump V. i'eltier 23 (.h K Kealy v. Dobson , 2l.i (9i Kearney v. K'rieh 21' Kelly V. H miiigway 7 (3ii Kellogg yatt • 80 (2 Kelly V. ^ Jonnull (H (7),98 (l.'') Kendall v. Wood . ;8 ^.ltliri( )i V. lioma> liiiineily V. Adams Miinedy v. Kxcinii Ki'ii-^ington Hank urr V. I'arsons. . . ii rr V. Siraat.. . . liiteheli V. Hums, \illiy V. itoehnssen Ailioy V. Simkins. Kmiliali V. i'lnnt. Aiiiihro V. iJuliitt. Kiiieaiti v iliggin.- Miig V IMekley. . . King V. Smith . . ,. King V. /iimmermi "iingliury v. Muticr Kiiinear v. Fergus Kinucav v. (ioddarc \iiiyon V. Wohlfoi ,\l(iek V. (.'luimberl Kiuiishaw V. Collie \iiii;iit V. (.'rooeklV Miights V. Whiffeii iaoK V. Wiiite. . (ymer v. Laurie i,al>adisl(; v. Liindr ,'Ablie V. Normanc Uborde v. Consoli Liit'iiste V. Cliauvin Liidonecur v. Moia: Ijiifaille V. Lai til It; Ij'fiueux V Casaul Lainoureux v. iloy :,ii!i( tot V. (lundlui Landry v. lieaucha Uiiifeav V. Blossm [iiiig V. Taylor.. . Ui lorte V. I^andry iiiirkin v. Wiavd . . Uilvniuo V. Andre. L:iroe(iue v. Fraidv uirthet V. Ilogan. Uiiiie V. I'Waiiture !jii. State Bank v. Li. State Insuranc Ijiitli'im V. Cliartei iiiitouehe v. Latoi liiitoiir V. (lauthie Litter V. White. . l^HUi-nt V. Merciei Ijiivoie V. Crevier. Law V. Owen. . . . ("^ i;j (9) 7 (im 80 (2: INDKX OF CASES. XXX vn ^ tiiliirh V, Loniax 2l:i(H> KiiiiK ily V. AiliiinH 8 (45 > MiiiHidy V. ExchiinK<' Hunk oJ'CauiuIji 5(11) KiiisiiiKtDii liiuik V. I'littoii 2'2-> urr V. I'iirsonH 74 (2r); v n V. Si mat 1 1 ;'. (2), J ' H (8; MtiJuill V. IluiriH 191 ■iillty V. litichiisHfii . I K) (30), 1 2 (4(5 1 .{ilioy V. Siiiikins 71) (1 » Kiinliiill V. IMiuit 1 n (4> Ailiibro V. Ihiliitt 5.1 (17 > Kiiicaid V Ili^^iriH 2«i (12 j Miif,' V Mickloy 147 (13) KiiiK V. Smith 55 (r.»i KiriK V. Zitiiiiicnnun 24'-' \in«liiny v. liutlcr 25 (I > KiiiiiLitr V. Kortrn.soii lt!4 (1 1) fc;iiiiuar V. (JoddanI {■{•J (2;, 134 (8, 10> Kiiiyon V. Wolillord 51 (11 > sidck V. (.'huiiibiTlin u(! (;?1 ) MK LaLDHtc V. C'liauvin (k! (5), 217 (31 ) Lii(i(>iu;eur v. Moiassu 81 (4;!), 8(1 (57) iiiifiiiih; V. Laf lillo '2riV, lj'l,'iienx V Casuiilt !;.'{ (2 ) Liiinoiirciix v. Koy li»;. Liiiit tot V. (iiindlack 2 If. Liiiidry v. Heaucliamp 201 (4), 21.'! |6a) Liitdl-ai- V IJlosamun 125 (2) liiii;,' V. Taylor.. "3(18,) Ui lortii V. Landry Ml (41 ) iiiirkin V. Wiavd '17 (I) Uli'Kluo V. AndiT 25 (5), 1(52 (1), 217 (^2) LiKKcpie V. Fiankliu County Hank 10 ('>7 i Liiithcfc V. Hojjjiin 222 (81) Uiriic V. Kvaiitiirel 67(1) 'ill. .state Kind; v. FL'nneu 141 (28 j Ui. Statt! liisiiiance Co. v. Shambuig i:!8 (13) iifitliam V. Cliartered Bank of India 170, 214 (14; iiiitoiicho V. Latoucht- 83 (29 1 Liilour V. Qiintiiier IS'j (3) Uttir V. White ....5>) (2) lifiiui nt V. Morcicr 113 (I) liiivoie V. Crevier 217 (26 ) Law V. Owen 147 ( I'i •. XXXV III INDEX OF CASES. , \'.i'2 (15) ..86 (5!») .. 185 (4) ,149 (28) . . 23(1 (9) 255 2ii4 CM) Lffuh V. 13ui liaium 68 (t!) i>(!ailbiltoi- V Kiirro* 71 (7) Lrii er V. 'f'atton.... 221 (7") Loiivilt V. Putiiiim 2() (7) Lenuui V. Kirku)iin 142(46) fie C non, 'U;., Road Co. v. Adair 54(7) Law V Panufll Lawrence v. Hearn Lawrence v. Oakoy Law-i)(i V. Farni' r's Bank of Salem, Lawton v Millidpe Layth'iirp v. Bryant Laziirus v. Cowie Leilii , 84 (3H) Ledoux V. ricdtte 54 (11) Lcdwich V. McKiin.. 47 (1) Lee V. McDcnald 74 (32) Lee V. Z:ignrv 119 (2 1), 121 (5) L.ftley V. Mills 118 (I!) L.jigett V IVet 83 (36) L.nii iix V. Bonrassa 82 (27) Leith V. O'Neil 151 (52) Lroiiard v. Masson 5 (it) Leonard V. Vredenburg I'JO Lt'oii'ird V. Wilson 34 Lepage v. Ihuuel 2(>S (6 .) T^eriiix V. Briiwn 255 Letelii r v. The School Commissioners of Ouatchoiian 54 (6, 12) Leveille v. Dai^le H^MU Lever V. Fletclier 251 Lev. &Co.',sCase 1.0, I7l (4) Levy V. Or w 25(7) Levi, son V. Lane 54 ( 1 3) Lewis vs. Lyster 2 I .'! (8) L<' is v. Owen 254 Lewis v K.illey 55(19) Lewis V. Walters 241 (4) Lifjlit V. Kingshiiry 25 (7) Li ley vs. Itankiti 85 (52), 100 Lind-ay v. Z wicker 81 (19) Lind'is V. Brailwell 36 (!>) Little V. Blossinan 125 (3) Liltl • V T)i;^'anard , 55 (21) uittle V Pliunix Bank 7 (.iS) Liverpool Bank v. Walker 73 (23) Livin;;Iston v. Roosevelt ,')4 (13) Lloyd V. Ashley 20 ("5) l.loyd V Howard , 51 (14), 119(17) Lloyd V. Oliver ■> (]0) Lloyd v. Sigdiiriiay 115 (:'.) Loder'8 Case 170(7) London and Boinbav Bank v. Narraway 121 (8) London Mild Prov P.aiik v. llolierts .. 230(la LOW V. Copestake Lowe V. I eskett. Lovel) V Hill ... LDVell V. Meikle. :.iiniley v. Miisgra Lusk v. Smith . biitli v. Stewart. Liitschi r v. Compti Lyman v. Boulton ;,ynian v. Chamarc L\iiian V. Dion . Lyon V. Maxwell. .ysa.uht v Brjant, I'acAiilay v. McFa Hiub th V. Halditn Macdonald v. Mntrr ilacdonald v. Whit )ia' farlanc v. Dewy H:icfarlane v Norri Mackay v. Judkins Mill kiimon v. Kero Madden v. Cex . . . , Malionev Mining C( ilaillanl v. Page... Mair v. Mt Leatr. .., ^lakin v. Watkinso ale v. Roberts, ■lalliiot v. Brnnellc Mdliiot V. Tessier. ^laloney v, Fitzpat Haiin V Chandler. )!;in"facturers Banl ^iaivotte V. Falardi Hare V. Charles . . , Maritime Baid< v. I Maiks V. Wbalis. . 'larler v. Mo! son's 'la ler v. Stewart. . ^larsb V. Masterma Mar.diall v. Baltinu 'larston v. Petit. . , Martin v. City of H Maitin v. Drake. . .'laitiii V. Oiiyot . . Martin v. Macfarla Martin v. Morgan. *'artin v. Poulin. , INDEX OF CASES, XXXI X ,oiiiaK V. Bradshaw , 86 ((57) ,ord V. lliintcsr 260(1) ,()id V. l;iimin. . 64 (8) i,orl Ward v. Oxford RailwHy Co 137 (6) oiiisiariii Statu Hank v. Orleans Navigation Co 97 ( I ) LOW V. Copi^stakc 121(13) Lowe V. I jsktftt '. . . . 2 2 LovclJ V Hill 5 (7) m-vU V. Mcikle 142 (3), 205 :jiimley v. Miisgrave 213 (8) iisk V. Smith f)5(lit) ;.iitli V. Stewart 230 (5) .iitsclii r V. Comptoir d'Escomple 167 (3) Lyman v. Boulton IS'.i (3) .ynian v. Chamard 213 (\>) l^uiian V. Dion , 91 (9) yon V. Maxwell 203 (23) .ysa.uht V Br) ant 50 ^8), 14S<22, 25) M ^liicAnlay v. McFarlan« 162 (3) lacb th V. Haldiinand 75 (39) Miudonald v. Mngruder 113 (2) iIac-t (U) Martin v. Drake 57 (32) -Martin v. Gnyot 5(1 (21) Martin v. Macfarlane 81 (39) 'lartin v. Morgan 183, 201 (8) *'artin v. Poulin 84 (40) XL INDEX OP CASES. MasBii; v. lielford 26 (2 • Massoii V. Lfiko 13:i (1; Miissiif V. ('rcl)assii .... 214 (14h Masters v. ^tiibl)s . 141 {AH, MatlK^r V. Muidstimi: 90 (25) Mathri- V. .Marchstout,' SI (15; Matliows V. Biaxomo 185 (6( Mathiavet v. Jioach (19) Mayor, cic , of Wetumpka v. Wetiimpka Wharf Co 54(11.> MiArihur v. McMillan 186 (8> McCall V. CorninK 68 (S, McCaUum v. Chureh 97 (2| McCall V. Wilkoii.>;ink ^ Men hantt. B^nk i Merchants Hank ' Merchants Haid^ ^ Merchants B;>nk •Merchants Bank Merchants Mank Merchants Bank ^ Merdiants Banu Merchants Bank i Meredith v. Cnlvi Merriani v. Walci Merriek v. Sherw Merritt v. (.'ole . , Merritt v. Lynch Mtnritt v. .Maxw( Metayer v. JlcVe Metcalfi; v. Richa Metropolitan I5ar M. yt r v. Hnt' hii Michijian Baidx \ Mil higan Ins. Co Mick V. Frevctt INDEX OF CASES. XM VfcKowti V. Kiitland 2G C*) ^IiKinncy v. ('rawford 25 (7 ) VIcKinnon v. Campbell 8 (49> Hc'Kinnon v. KOroack ISf; UcL'iin V. Gamier N7 (iO), 186 (7) UcLciin V. Ross 6 (24; Jk'Lt'an v. Shields 4;! (I7j lIcLemore v. Powell 214(15) McLennan v. McMonies 1 1 r (4) MeLaren v. Watson Ex'rs 190,191 UuLeod V. Caniran 181 (2; Mel,eod v. Snee <>('6) ^K MasU"!! M V. Reed 54 (7 > Mc urray v. Talbot 186 (8) MeMiirrich v. I'oweas 141 (13), 15() (43) McQueen v. ISlcIntyn; 230 (3) McQueen v. McQueen 51 (17) McQuinn v. Soirell 118 (10) McKobliie V. Torrance 8 (52), 138 (16) Ueaoher v. Fort <'8 (7) .^fead V. Youn Means V. Hwormsted , 73 (19) Mecianes Bank v. Bank of Columbia 73 (22) Mechanics Bank v. Walton 135 (20) Melan v. Duke; de Kitzjames 254 Melltn V. Moore 72 (I0> Mclleasli v. Rippen 1 48 (21) Mellish V. Rawdon 128 (5) M llish V. Simeon 195 (I5> Melville v. Rcdall 6 (25) M,ndizabel v. Machado 42 (9) Merchants Rank v. Bell 56 (25), 151 (50) Merchants I'.;ink v. Exchange Bank 69 ( i 2) MenhanLs Bank v. Henson 116 (15, 18) Merchants Hank v. Robinson 214 (14) Merciiiints Bank v. Soicer 6:i ('! ) Merchants B;'nk V. S|)ijincy 159(6) Merchants Bank v. State Bank 36 (•14) Merchants Bank v. Stirling 28 (G). 219 ( 1 ) Merchants Bank v. U. K. Clnb 181 (5> Merchants I'.anu v. Whittield 13-1 (5 > Mrrchants BanU of Halifax v. McNutt 152 (5-<) Meredith v. Cidvfir 230 (3) Merriaui v. Walcott 199 ('<) Merric k v. Sherwood 56 (25) Merritt V. (Jole 64 (6) Merritt v. Lynch 185 (2) Merritt v. Maxw,]] 75 (35) Meti McVey 57 (29) iy< Metcalfe V. Richardson 15 (37> Metropolitan Bank v. Snnre 214(12) M.ytr V. Hut. hinson 135 (15) Michif^an Bank v. Eldred 47 (I) Mil hi}j;an Ins. (Jo. V. Leavenworth 9(65) Mick V. Kievett 72(17). XLII INDEX OP CASES. Miller v. Austen 5 (8) Miller V. Fcrriur 'Jl (0) Miller v. Miller 88 (8) Miller V. Kace HO (!) Mill.r V. Stree(3(r '. 118 (8) Miller V. Thomson 19 (-J) Millo) V. Fiirmer ti4 (7) MilliLian v. Lyle 71 ( ') Mills V. Hiink ot US 147 (3) Mills V. Barber !>7 (2), I'D (20) Mi Ms V. FaluM- 221 (02) M Us V. Philbiu. 9.^(12) Ml In.! V. Prest -.42 (8) Millies V. Dawson HO (5), 86 (64) Mi net v. Gibson 21 Miranda V. City Bank 140 (2H) M in 'an It v Mit, hell V. Mitchell V. Mitchell V, Mitchell V Mitchell V Mitchell V Ml- er V. Cobiirii MMfVatt V. Bnrland Liijnit' 1(12 (1) Brown 149 (35) Kn^lish 1H4 Holland 198 (1), 213 (5), 217 (29) SuUman 221 (62, Of)) Smith 113(4) Young 141 (43) 80 (2) . . I t:-. M.ftatt V. Duplissay 8! (9) Mutiatt V. idwards 24 (Id) Mollatt V. Murray 97(2) Moff.itt V. Kees il3 (1), 186 (8) Molloy V. Delves 24 (23) Molsoiis Bank v. Seymour 37 (18) Moiityroinery v. Bud re 253 Montgom. ry v McNair 222 (H3) Montague v. Poikius 2^< (I) Moodie V. Jones 163 (5) Moodie V. K'owatt 71 (3) Mooiiy V. Ma h '-^5 (') Moor V. Wilson 75 (38) Moore V. Sullivan 52 (17) Mor^'an v Knox 83 (36) Morgan v. Larivi^re 9 (5"') Morgan v. Rowlands 220 (58) Morgan v. Towjes 130 Morgan v. Yarborough 97(2) Morin v Lirenier 97 (2) Morin v. Legaiilt 63, 64 (5) MorUy V. Culvervvell 201 (6) Morris v. Bethell 70 (23) Morris v. Cude 228 (1) Mon is v. Lee 107 Morris v. Walker .. 120 (5), 186 (7) Morrison v. Kyle 204 (35), 215 (19) Monison v. Spinr 71 (6) Morton v Campbells 186 (8) Morton v. Nayior 9 (63) Mos8 V. Averel. Mott V. Hicks. Mouchet v. Cas( Monle v Brown Mount v. D.inn. Muir v. Camero Mnir v. Crawfor Miilhr V Pondi Mullholland v Mullich V. Uadii M linger V Sh n Munio V. Cox Mnnroe v. Bordi Murray v Ka>t Murray v. Kin^ Murrow v. Stuar Mm lord v. VVaU Muttylnll Seal \ ;^lu ual Saf ty 1 My 1 tie V. Beave Napi r v. St lint Niirbonnc v. 'I'e Nash V. Gibson, N. B Assnnince National Bank < National Park t National Penibe Newborn v Lav Newborn v. Stei N' wtin V. Allei Nichols V. L>iair Nichols V Uytii Nicbolson V. Go Ni holson v. Pa Nisbet V. Galbni Nightingal • v i Noad V. lioucha Noad V. Chat a Nolle V. Iieditc Norris v. rtyletl Norris v. Condo North V. Kish r North Stafford 1 North W.-tem Norton V. Kllar Norwich Bank Nowli V. Roac N. Y. Bank v C 0' Prion v.Stevi O'Brien v. Kkh INDEX Oy CASES. xi.iir Moss V. Averol 54 (9) Mott V. Hicks 53(3) Mouchet V. Cason 2:^1 ('J I) Moiilo V Brown i;i9 (3) Mount V. D.inn 139 (22), 154, 162 (1) Miiir V. CamiMon 91 (9) Miiir V. Crawford 215 (1<)) Mrill.r V I'ondir 50 (3) JIullholland v Morley 242 (8) Mullich V. lladak sfien 128 (9) Mnni,'Lr v Sb nnou 9 (64) Munro v. Cox H6 (1) Monroe v. Bordier 87 ( 9) Murray v Ka>t India Co 220 (56) Murray v. Kin^ 191 Murrow v. Stuart 116(19) Mutlord V. Waloot 33 (8), ^1 (1) Muttylnj] Seal v Dent 51 (14) ^1 u ual Saf ty Ins. Co v. Porter. . 4T (5) My 1 tie V. Btaver 75 (39) N Naj)i r v. Si hnoider UJ.'i Niirltunnc v. 'lotr au 185 (3) Nash V. Gibson 7 (-J2) N. H Assunincn (.'o. V. Ansley 82(7) I^ational BaTik of Coinnnrce v. National Mfcb. Bk As 18 , 182 iSational Park P.ank v. Ninth East. Bank H2 National Pt-uibirton Bank v. Longee 18i> ('!) Newborn v Lawrence 8 (^6, 49) ^ewb"rn v. Stevenson ^6 (5<;) N' wtin V. Allen 71(h) Nichols V. Diamond 36 (8) Nichols V l>yan 99(18) Nicbolson v. Gouthit 1 3v» (9) Ni holson V. Patton 98 (10) Nisbct V. Galbraith 37 (i 7> Ni}ihtin;.i2 (15) Noad V. Bouchard 21 < (J) Noad V. Chat a ivi-rt ii3 (2) N.illev. irtMJitors 11 -MO Norris v. rtylett 213 (S) Noriis V. Condon 55 (19a), 57 (33), 71 (2) Nortli V. Kish r 255 North Stafford Loan Co. v. Wythies 142 (46) North Wv-tein Nati nal Bank v. Jarvis 5 (5), 13' (15) Norton V. Kllam 220 (:)I) Norwich Bank v. Hyde 24 (22) Nowli V. Roach 139 (25), 1 10 (3:!) N. y. Bank V Gib-on 164(7) O O'Brien v. Stevenson Ifi2 (I) O'Brien v. Kicht 80 (2) XLIV INDEX OF CASES. O'Connor v. Clark 194 (3) O'Connor v. VVailace 51 (f 7) O'Dimahuo v. Swain 80 (2) O'Kcll V. Charles 75 (,'56) O'Leary v Martin 142 (50) 0( kurnian v. Blacklock <> (56) Offdrn V. Benns 69 (14) Olcott V. Kathbone 122(17) Oicott V. TioKa Uailway Co 54 (8) Olivier v. Aiulry 68 (9) Ontario Bank v. Fost(!r 1 42 ( I ), '207 (52) Ontario Bank v. (Jibson '. . 86 (62) Ontario Bank v McArtbur 42 (11) Ord V. Poital 121 (13) (Oriental Financial Corporation v. Ovcrend 90 (3), 91 (7) Orridf-e v. iSlu-rborne 2 4 (16), 33 (2) Orstr V. Mourteny 79 (n Onlda V. Harrison 119 (20) Overt nd v. Mid Wales Railway Co ...54 (8) Owen V, rionian 215 (16) Owen V. Quebec Bank 1 60 (f ) Owen V. Von lister. , 36 (6) Pacanl v. Corporation of South Halilax 54 (1 1 ) PacUani v. Hye 72 (12) Pap;an v. Wylie 231'. Paige V. Ponton ... ... 04 (7) .Paillette v. Carr 72 (lla) Palmer v. Baker 1 90 Palmer v. Fahne.^tock 7 (42) Palmer v. McLennan . . . ; 7 (43) Palmer v. Pratt 26(1,'-)) Pariseau v. Ouellette 185 (2) Pariseau v. Trndcau 56 (21) Parker v. Gordon , 1 ;;3 (lb) Parr v. Jewell 204 (37 ) Passmore v. North 28(5) Patience v. 'J'ownley 1 37 (2, 5 ) Patersou v. Paine (j3 (2), 185 (;'. ) Patterson v. Todd ........26(7) Patterson v. To|)ley 133 (2), 135 (2(i), 139 (20) Paul V. Joel 146 (3), 147 (16) Peacock v. Purssell 87 (Hl) Pearl v. Deacon 173 (8), 203 (33 ) Pearson v. Coalbin 149 (27) Pearson v. Garret. . 26 (13) I'ease v. Hirst 121 (9) J'cck v. Thipon •• • -68 (4) Pecquet v Mager 130 Peel V. Kingsmill 92 (2), 228 (2) Peers v. Hall 186(6) Pellecat v. Angell 251 Penn v. Lord Baltimore 251 Pennington v. Ba( Peninsular and Oi Penny v. Parbam Pinny v. Lines., 'lople V. Mercba Pepper v. Peytavii Perky v. Howard Perraidt v. Berge •"errault v. Herm.- 'urrault v. Laurin Perry v. Krilot. Perry v Milne.. Perry v. Kodden . . Peter v. Beverly Peters v Waterbi Petit V Benson . Petitpiin \. Palmt Peto V. Fieynolds. Piyronx v. Did)er Phelps v. Stewart Fhel|)s V. ^^■illianl Phil'ips V. Allan. I'h'lips V. Astling Phi I pot V. Briant. Phipps V. Tanner Phison v. Kellaer Picb. tte V. Lajoie Picken v. Gr;iban Pier V. Heinricbsi Pierce v. Cole . . . . Pierson v. Dnnlop Pigeon V. ]3ai;ena Pirie v. Smith. . . Pitman v. Kintnei PlanehO v. Flctcln Plimley v. Westk Poiriir v. ^lorris. Pollard V. Bank o Pollard V. Herries Pallard v. Yoder. Pooley V. Brown rorte(ms v. Muir, Porter v Kembal Pott V. CI egg Potter V. Brown . Potter V. Taylor. . Potts V. kieed Powers V. Briggs Powles V. Haigre; Pratt V. Drake.. Pratt V. Macdongi Prescott V. Flinn. Preston v. Dunha Prevost V. Pickcll Price V. Neal . . . . INDEX OP OASES. XLV Pennington v. Baehr 63 (4) Poninstilar unci Oriental Steam Niivigation Co. v. Shand 251' Penny v. Parhain 185 (4) Penny v. liincs 185 (6) Piopie V. Merchants Bank 1 'i:^ (3) Pepi)er v. Peytavin (27) Perky v. Howard 135 (20) Porranlt v. Bergi; vin 12:; -•erranit v. Herman 208 (58) 'errault v. Laurin 84 (3J) Perry v. Krilot 83 (30) Perry v Milne , 82, ISr. (24) Perry v. Kodden 81 (12) Peter v. Beverly 73 (23) Peters v Waterbury 203 (34) i'elit V Benson -13(14) ■'etitpiin v. Palmer 57 (32) Peto V. Pieynolds 1^(1) ■*iyroiix V. Dubertraud • 119 (28) Piu'lps V. Stewart 'Jlil ((57) Plu'lpK V. AViJliainsoii 'J21 (72) Phii'ips V. Allan 254 I'lrlips V. Aslling 137 (7) i'liilpot V. Briant 135 (21) i'hipps V. Tanner 24 (20) Phisoii V. Keliacr 141 (.(9) Pich. tte V. Lajoie 9> (16) t'icken v. (iniham 140 (36), 141 (45) I'icr V. ITeinricbschoflVr i 37 (4) Pierce v. Cute 1 39 (23) Pierson v. Dunlop 42 (7) Pigeon V. Dagenuis. 63 (5), 2 1 7 (31 ) Pirie v. Smith (53 (2) Pitman v. Kintner 73 (19) Planche v. Fletcher 251 Plimley v. Westley 22 (2), 186 (8) Poiricr v. TMorris 87 (70) Pollard V. Bank of England 208, 211 (61) Pollard V. Herries 10 (68). '.'3 (|), 135 (IS) Pallard v. Yoder 25 (26) Pooh-y V. Hrown 1 99 (!• ) i\)rteon.s V. Miiir 52 (17) Porter v Kemball 110 (.!0) Pott V. Clegg J 64 (7) Potto 1 B 254 I'otter V. Tavlor 42 (12) Potts V. Keed 116 (lit) Powers V. Brigus 72 (17) .Powles V. Haigreavcs 170 (7). 171 (2, 7), 172 (2) Pratt V. Drake 68 (4) Pratt V. Macdongall 185, l.s7 (2), 260 (3) Proscott V. Flinn.. 182 Preston v. Dunham '•^6(1) Prevost V. Pickell 84 (39) Price V. Neal 180 (3) XLVI INDEX OP OASES. Price V. Taylor 2fi (lO; | Prico V. Wyl I ilS (9; Piiiici! V. Orinnlal Bank 149 (2!/) I Piovitu'ial liank of Ireland v. DaiiiiL- 20.") (4'2) Prvor V. Bowman '■^•^* (7) Pullcn V. Sant'ord 131(1'.;) Piipir V. iM.Kfty ll^ (12) Putnam v. ISiil ivan 47 (Ij Q Qnarricr v. Colston 25: yntliti V. Moisson . . 2ri4 QiioIhc Kank v. Millor 55 (H) Qiiobic I tank v Molson 2(i6 (44) Q\ buc Bank v. O'Gilvy 139 (24), 22.) (2) Qnin v. Kit f\; 2;' I Quintal V. Aubin 207 (o!) R It. V. Baitlett 19(1) K. V illintt ..2t(Ii<) U V. Hnnt.r , lit (1) Riilu'au V. LiToux 56 (21) llhvy V. Gilb. rt 142 (J V) Kali IV Dtnniston .. 2(14(37) liani' luirn Mill lick v. lladakisgen 128 (7) li>.in.-d' 1 V Toifcr ., .111 (!»), 18 (1) llanken v. Alfani 37 (20), 163 (4), I'.D (6) Bapfi- V. Birkbuck -29 (7j Raphael v. Bank of Kngland 80, 94 (<13), 99 (24, 27), IflR Ratchf .rd v. (Mffi h Iti2 (2) Kathhon V. Bndlong V 1 (9) Rayniond v. Middlet n 22 (-') lie Atjra Bank 164 (7 ]fe Anj^lo Greek Na\ igation Co . . 121 (5) t,e Bainard .^ 36 (5) lie Barr' ngton , 1 1 3 («) lie Boy.so 6 (23), 5 1 16) Jie Knropc an Bank H7 ( 5) lie Estate Iv<-8 212, 213 (9) Kc General South American Company. . I9r ie« Gom-r^all Ii9(-'l) Re Gothenburg Commercial Co I'S (4) A-eJarob.s 204 (39), 2ii5 (lii 7?e .lames ...,57 (.10) Rr .loint Stock Di.^^count Co 204 (3'J) Re \\mn !*1 (6) Re Oriental Bank 20 J (37) Re i'avy's I'al.^nt Kabric Co.. 167 (3). 1 "iH (2) y/e Peruvian llailway Co 53(2) .ff'! Kiver Stianer Co 21; (45) Re The West Limdon Bank 97 (n Keade v. Lambe 25'' Rrad v. Havana Hcdmayne v. l! liti (I V Reed. . l-lecd V. VVig.ijii Riy V. Craig , . KtHd V. Furniva Ruid V. Ilumphi lifid V. .Mc(Jhesi iRt'ld V. Morriso! JReid V. Koark. Uennie v. .larvit lirnwick V. I igl lliew V. Petet . Iicx V Kevett. livi'vnolds V. Che I Reynolds v. Dag llcynolils V. Wh< lihiiaimie v, Cail KJKuies V. Smeth IR ci; V ]5owker lliir V Stearns. iRidiin-ds V. rran JKicliai-ds V. Rieji, JRh liar son v. \ii llUchiinison v. M< iRklier V. Voyer. jRichier V. Selin . |Ri(i(lell V. Goold. JRicii'leau V. Turn |Ri::liter v. .Alema iRivet >^ . Leonard . iRli tt V. Roe iRiilu'rt V. Ramber JKobfils V. Hethell ■RoU'rtson v. Cald piibi'nsoii V. Fun BiolnTtson V. Glasi fiobui'tson V. Ken piolicy V, Oilier.. iibins V. May . . . , [lidbinson v. Blanc^ Rubiuson V. Duff. pjobi'ison V. Tayk niibiiison V. Yarr( piobitailie v. Dene Koliiu-ts v. Tucker Robson V. Oliver.. 5"tbu v. Campb ! RiitiVy v. Grei nwe ioj,'ers V. Langfon ill Is V. Pearce.. iaii' ill lo-h V. Cha loriiii>nz V. Lea h loLbiier V. Knickt ioscue V. Hale . . . INDEX OF CASES. Xl.\ tl Read V. Kavfinagli 139 (21), 141 (40) licdmaync v. Burton 50 ((5), 92 (2) |K,; (1 V Reud 20 (4), 52 (IT) I Meed V. Wig,-;ins H4 (40), 8' (55) RrV V. L'niiji 229(2) Rciii V. Fiirniviil S7 (^0) Uid V. Ilmnphroy 230 (10) nil V. .Mc(;liosnuy 71 ('.') iRfid V. Morrison 138 (1:5) Held V. Koark. 230 (If)) |l!i'iini(' V. .Jarvis 80 (2) I invick V. I igbt; 150 (41) I Kew V. I'etet 72(14; l!cx V li.vctt 107 Ktvnolds V. Chettle 13.'* (Hi) Heyiiukis V. Dagle : • 220 ("i2) la'ViiolWs V. VVherlor li'!. 184 (2) RhcaiinK! V. Caillo .!)G(21) luiiddes V. Smrthurst 220 (tin > |Rc«v. Bowker 140,154(35) ;!4 (1) 116 (10) Stt L-arns Richitnls V. f'rankuni 1 13 (3) Kicliards v. Richards 25 (25) Rh hiir son v. Daniels i2'i ( 1 ) Kichaidson v. Mellish .^3 (3 RiiluT V. Voycr 5 (8) RichitT V. Solin 9 (ii6) Riiidcll V. Goold 207 (47) iRIi'iidiMui V. 'I'urncr 57 (29) Ri-lit.r V. Alenaui "9(1) iRivet V . Lfonard 55 ( 1 9ii ) Kh tt V. ]{oe , 13' (22) RdlHMt V. Rainbert 56 (22) Kok'rts V. IVftlioll 41 (:;) IRolxMtson V. Caldwell 8- (4) {iib.Tison V. Fiirness 84 (3.S), 93 (12) voliertson v. Glass 75 (35) obertson v. Kensington 114 iibcy V, Oilier 37 (20). 163 (4), 1(39 (4), 170 (2) "bins V. May 8(52) "binson v. Bland. 252, 25:"> ubiusun V. Duff 152 (60) obinson v. Taylor 138, 144 (15), 147 (i 1) obiiison V. Yarrow I ^^2 ubitaille v. Deuechaud. . . 213 (4), 217 (2 7) uliarts V. Tucker 09 (16), 70 (21 ;, 180. 182 (2), 203, 205 (27) obson V. Oliver 199 (3) iciiu V. Canipb 11 151 itlVy V. Gre, nwel! 25 (25), 26 (9) o^'trs V. Langford... 199(3) Poiiroe 80 (S) liaii' la i^h V. Champante 2i ^ Roniii.nz V. Lea h 121 (13) Tioihiicr V. Knickerbocker Life Ass. Co 33 ( I ) fioscue V. Hale 219 (3;t) XliVlU INDEX 01' CASKS. UoMe V. McLcod 264 RoHo V. Sims iVl (22) Kosher v. KicMim H8 (10) Hoss V. |{iunot '.'OH (50) KfiSK V. Codil 71 (4) Koss V. Dixii- i :!0, 181 (2) IvOMs V. Moistin'rt Bank 17.; lloKS V. Wi Ison HO (:tG) llosHin V. McCiuty 47 (7) Rotchschiid v. Currii: 137, 243(1) RoiKlui'tte V. Ovcnnaiin 23 (4), 137 (5) li'Usson V. Uauviu 66 (22} Kowo V. Young \:\, 14, IIU, 154 (14) Royal ISank of Scotland v. Conimcriial UanU 1 7'J, 254 (7^ Royco V iiariies 121(5) Ruir V, Wobb G (2), ) Kvan V. iMulo •(4(11 Kyun V. McKerrall 81 (!)), I8(! (f^), -14 (14) S Sackett v. Palmer 27 1 ...80 rs), 38 112,, i), 83,:!: Sandidge v. San lerson Sands V. Clarke 138 (12 1, 139 123 ?-auds V. Kealor 22^ Sandford v. Jones 4(j 1 St. Aubiu V. Fortin 214 1 14 St . Aniand v. Bonnet . 50 !2J >t. .Fohn V. Rykerl 1 94 '2 St. Louis V. Senecal 84 |4 Saint Stephen Branch R. R. v. Black '-'3 1 1 1, 140 i3 Me. Marie v. Stone 217 (2Hi, 218 i3 Saul V. Jones 135 (i7i. i:?6 (2; Sawyer v. Wisewell . . . ii3 ' Saxton V. Stevenson 7 |42 Scales V. .Jacob 221 Scantlin v. St. Pierre 5") i21 Schneider v. Norris 63(1 Schoiey v. Uamsbottom 92.2, 98 ^ lOu, 22s Schroeder v . Central Bank 169 Schultz V. Astley 48 il: Schurchardt v. Hall 164 8 Scarpellini v. Atcheson. 2'_'0 i5' Scott V. Douglass.. Ill 18), 185 Scott V. Liftbrd 86 ('.i,'ond V. I, an Si^'ond V. Thoi '^ei.'iiin de la Si ■'•liu'man v. Hi Niiiple V. Tun: "^I'rle V. Norton s il,. V. Water' "iryniour v. Wi 5li'Uid V. Dulin ^liarp V. 'I'jij loi Shaw V. Carter. >lmw V. Salmon sluarer v. Com| Slitldon V. ]I(,r '^luplu^rd V. Hai ^^liijiiay V. Hur, Hiillito V. 'J'Jiee, MMniiuelpenniej ^liioeder 'v. Cen ''i'lite V. J^)l,ins ■milliter V. Pa.xtoi ^liiittle worth v. "•ifliol V. Borch*. "■it'ton V. Anders ^i;,'ourncy v. Lh ''iineon v Bazet ■iiriclair v. Llohm 'Jiiiclair V. Hend Sioconib V. Lizai "ittig V. Barkest. ^iiillieck V. Garl "^kilheck v. VotU ^1' iuli V. Slei<;|i ^"iall V. Riddel I ''"'ith V. Abbo't ^m.th V. Bellamj ^■"itli V. iiuchani '"'itli V. Clarke. ':"itii V. Kastma Naitli V. Flemiu! "•mith V. Gord(,ii' i^i'iitli V. Hall... ^mi h V. Hill.,., ■^'iiitli V. Johnson Miiitli V. Kendall ■''raith V. Leaper. "'mitii V. Mansack •^mith V. Mcliaclii ''mith V. .Men er ^'uitli V. Mutidy. 'iiiith V. Nightim; 'mith V. Robinsol INDEX OF CASES. XLIX 139 I'iS . ... 22- . 40 1 1 •2U .N . 50 {■!: .194 •■! ..84 |4; 140 i;'.' •J 18 is: Hit) (2; . . 93 '■< .. 7,42 .2'21 :<>'■ . .5.". i'2ll 63 i4 .169 51 48 il:| . 164 .2-'0 i5'l K 185 1 113 ,113 jiiitli V. Hagat 219 (39) SciivtT V. Colbtirii 72 (12) >i(m1 v. Court nay ....,., ISU (7) >r\:,'(incl V. Liindry 22.^ Sijrond V. TliDinas ;;7 (18| 3 [2) Shiitu V. Piobiu.s 1 28 (' I ■^liiitDr V. I'axton 134 -I , l(i2 (li ^liiittlc worth V. Stephens 19(1) Sii'tiol V. Dorch 50 (5) "^it'ton V. Andcr.son 212(1) >i,iroura('y v. Lloyd. 116, i:! (IG, "^iini'dn V I^iizftt 251 Sinclair v. ilohyon 142 (2i, 220 (54) Niiclair V. HendcrHou 84 i39) "iiotonib V. Lizardi 151 (50ai Nttig V. Barkostock 47 (1) "^killiuck V. Garhett 150 (42) "^killu'ck V. Porter 186 181 SMuli V. Sioij,'ii 90 (5, Nuall V. Uiddell 1 13 ■ I., 118, (13, 15) 184, 201 (12, "^iiiith V. Abbo't -12 ((>) Smith V. Bellamy 19 (3) Smith V. lUu'lianan 254 "^mith V. Clarke 22 (1| Smith V. Kastman 221 !65| Siiiitli V. Fleming '••7 (2) Smith V. Conhm 185 (4) Smith V. Hal I 248 %i h V. Hill i86 (8) ■^mith V. Johnson 55 (17) Smith V. Kendall 33 |4) Smith V. Leaper 221 (74) ■^mith V. Marsack 186 (7) Smith V. Mcliacluvn SO (2 1, 84 (46) Smith V. .Mener 180 (4) Smith V. MunHy 5« (6) Niiitli V. Nightingale 24 (5) %ith V. llobinson 1 38 (IS) L INDEX OF UA8ES. Smith V. SlitM>paroi.ssitr 57 {'A Stanlon v. Blossom l-i9 (2r.i Star Kichiey Pad Co. v. (ire.nwood 80 (2), 92 it: Stat.' Bank v. Slan';ht(!r 149 (H,i. Stfi) ner v Howatt 1 ;{9 (22 1 Steel.' V. MeKinlay '{« (31. 167, 180 (7), 187, 1S3, 18!t, 190, l!i2, ly:; Steele v. 'I'owne 222 (7^ Steer v. Adams 11 1 (Hi Steer V. MeM rray 186 (») Stein V. Xjrlesius 119 (22 St.inhatt V. Tne Merchants Bank 151 (50 Stephens v. McFariand 25(' Stevens V. Lyman 10 (GT Stevenson v. Ni wham H6 (56i Stewart v. K iinoit 148 (22 Stocken v. Collin 14!) (27 Sto( kett V. Sasscer 221 (62i Sto. kman v. Pai r 1 4H 1 2 1 1 Stodaid V. Loane 219(3" St (issiger v. S. E. Railway C i8 ((8i Stones v. Butt ".. 121 (12 Sloiy v. Maekay 249 (2 Siraas v. Gilhert .,.!•■< (15 Straker v. Graham 128 (6, t^ Sliathy V Nichols 80 (2). 91 (10) Street v. Beckworth , 52 ilT, Street v Qiiinton 82 (241, 212 il: Streit V. Walsh 2-'l 23i Strong V. Bird 21- Stronij: v. Foster 204 (37 Strong V. Biker 18(; i'h Strnthers v. Kendall 230 (2(' Sluddy V. Beesty , ,140(30 -^iiirdiv.int v. II Sturdy V. llend "iiidlow V. Tlie I "iMmniers v.Ci(\ ^iiilicrland v. I' ^ilZi' V. Pompe ^waisland v. l>a ^iiaith V. iMIn^fa Swartz V. Kedtie Sweeiioy V. Kast >wan V. (N)sc, ^wan V N. B. A ^wansey v. Bi.'ci \vuies V. Karnici .''ail Ion V. Perry I'al ley rand v B( i'anatt v. Wilnx I'atam v. Jjasiar ite V. Ilijbert.. lavior V. Buike I'iiylor V. Biishon. ay lor V. Curry.. Taylor v. Dobbin Taylor v. Grier. . Taylor v. .McKari Taylor v. Newma Taylor v. Ko-s . . Tiu lor V. Snyder Ta' lor V. Spiney. Taylor v. William riiacker v. Hardy Thi bandeau v Ue Thomas v. Fentoi Thomas v. Gra e . I'homas v. Marsii. Thomas v. MeI.eo( Thompson v. Cott Thomp.son v. Farr Tlumipson v. Gilei Tlumipson v. ftlac Thompson v. Moj^ Thomi)son v. Simp Thompson v. Sloai Thorn v. San ford, riiorne v. Sc()vell. Thorne v. Ycntz . . Tiiorntoii v. Alayna Thornton v. Wynn i'liorpe V. Booth. . 'hurbcr v. DeSive "hurgar v. Clarke . Iiurgar v. Travis. INDEX OF OASES. LI Sturdiv.int v. Hull 72 (lOj ^tunly V. Ilindt iki -mlii'iidiKl V. I'attfrrioa H i ;")'.', ItJ) (17; -uzr V. IViinpe 5 i4i, 10 ii>«,, 19f> MViiisland v. Diividsoii. 8 (40, fi'ii, It'-' !3), '2'AO (8i, -'31, li't (25> ^-imith V. Aliii;;iiy 2.'i2 ^wllrtz V. Ki'dtitiUI 26 (7) Swi'ciioy V. liuHtor 116(15) •^wuii V. (^osc 12 (I (1; ^waii V N. a, Austr.d.isiiiu Co 1 10 (I > ^ wiitisey V. Bi ook 42 (2) \viues V. Karnier 56 ('I'J, !6 (bi ) (22- 150' 2rjc 18> (12 19(2 (15 (<5, ^- (10) (If. l2 tl; .21- 4 (37 8('. I'l (20 (30 raillou V. I'erry I5'J (2> tallnyiiind v Hdiilaiiger 254 i'ariatt v. VVilniot KJO (12) I'atam v. I laslar t>8 (II) ate V. Uilbt^rt HO (S), 8S (5) liiyioi- V. Buiki 201 (H) Taylor v. Hiislionj; 1G3 ( 1; ay lor v. ('nny s (5:!), t<2 (17; Taylor v. Dobbi/is '^'^ ( I ) raylor v. Uv'wr 152 (59) Taylor v. .McFarluiic 51 ( 1 7>, '."B (;^) Taylor v. Newman 10 5) Taylor v. llo-s HU Ta>lor V. Snyder i;!8 (14) Ta-lor V. S|:iney 221 (75) Faylor v. Williams 21.< (8> riiacUer v. Hardy fs5 (52; Tlubaiideaii v iJenniu^i; 201(40) Thomas v. Feiiton , . . .202 (22) Thoma.s v. Gra e 82 (27a), ] 23 riiomas V. Marsh i:5:i (2), l.<8 ( 0) Thomas v. Mcl.eod MS (8), 80 (5) riiomi)S()n V. L'ottrrell 147 (12) Thompson v. Farr '^''' ( ' ) rhom|>soii V. Giles 87 (77> Thompson v. Mac Donald 214(15; rhumpson v. Molson's B^'ik , 164 (0) Tliomp.son v. Simps(>ii 160 (.">; Thompson v. Sloan 7 (37) Thorn v. Sanford I4" (12) Thorne v. Seovell 134 (7) Tliorne v. Yi utz 8 ! (44) Thornton v. Maynanl 121 (7) Tliornton v. Wynn 140 (M) Thorpe v. Booth 220 (49) 'tiurhcr v. DeSive 63 (2) Tliurgar v. Clarke 20 (3) 'liurgar v. Travis , 214 ^14) LII INDEX OF CASES. TiedeiTiiin v. GoMsmidt S7 [lb Timmins v. Gibbins 199 (■), Tissot V. Bowles 80 2 Tomkins v. Aslily 7 (4:; Tooko V. lIolliiiKWorlh 168 1 1 TopoiKjf V. Martin 8H (30 Topping V. BiiUalu •"''^ (S) 'rorranoo v. Bank of British North An)crica . 8 (37i 1>\ '■<'■ 12) 1G3 (5, 107 (3i, 1208 (53;, 213 i7, Torrance v Philbin. "217 (3u Towu V. Morgan -li' Town V. Kico 72 Ml' Townscnd v. Franco 47 1 1 1 Trecotliick v. Edwin 15^ Trenttcl v. Harandou 1 1 13, '.»7 L!nion Bank of Canada, v. Colo 9 ( Union Bank of Canada v. Farnswortii .68 Union Bank v. (Jagnon '<'' 21 ), 'J7 i Union Bank v. (Jila'aidt 194 i Union Bank v. Grimsliaw 140 (: Union Bank v llydr 1 ,0 (30, Union i5ank v. ^MrKilii.uaa 151 ' Union Bank v. Ont.nio Bank -"M.23iJi Union Bank v. Byan 97 United Slates v.\Viiite 22 Usher V. Danntey 2.'< 5), ■[■■* la 10 36) 54 26 .2", 21, -.^. U 08, 100 Va;;Iiano v. liank of England l.-^O, 182, 205, 201 (2| Van All<-n v. American >'atioi!al Bank IG!'. 4 Van Dozer v. Howe • 47 il Van Ktl.i \ EvensoM 17 |1 Van Gnitten v Dighy 2^'l Van Leewan v. l^'irst Nalidoal Banii of Kini;>liin 73 22 Vandusen \-. Vanlnst^n 1*^5 t2 Viinwait V. Boberls 224 Vanwart v. Wlioo'ey l','',' 2 Vjiiighiin V. llalliday 10.< .;, ITo 7. 171. 172 . Vaiiglian v. Boss 1 50 .4-: Veal V. Veal.. 80 f. Veiinor v Fiuvoye 13:-! 1 1 Vernier v. Lorti? 50 2" Viale V. Mi.ha Viiial V Riciiui Vincent v. Har Vincent v. Hoy Voyer V. Kicliei Von Pluil V. Si( Vy.sc V. Wakeiii Waddell V. .Jayi Wagner v. Kent Waiiiniau v. Ky Walkrr V. Bank Wakei V. CU-m Walker v. Creljii Walker V. DMUg Walker v Ddtiti Walker V. Ma Wi'^tloli V Bi'owi Whaiton v. Wriijl Wiiistler V. Forst( INDEX OF C\SES. Llli Vialii V, >Ii U; Walker V. Sweet 218 (37., 22::, 22 1, •J2o. -'2ti Wallace v. A'^vy 1 28 i9, Walliiee v. Gwinn , ]?■?. 2 Wiilliice V. Souther 2:! 2,l;!i 12 Wall V. Bry 1 42 i5tO WiJIb i(U lieeket. JO Wakeiiiun v. Sherman 22.'. Walter V. James 201' '2 Walters v. Mohan !» .' 1 Wallers \ . Haft'enstein .... 1 :-!.". : b Walton V. Maxall 191 Walton V. Watson 13i> (24 Watite V. Robinson 24 1 Waiizer V. Stontenbnrgli PV 5, Wart V. K lt).s ll \Varinuiu;ton v. Karlv 24 Wane 1 1 \ . Rris'oe 13:i iVarien v Hai,i;h 11 it ' A'arwick v. lio«ers 208, 211 til ,, 229 i 7 . - Ul Waterous lin/jjine Works Co. v. (Miristie I 10 Waterons Kn;;ine VVorks Co. v. ilcLenii 2:;i , -.".4 Waters V. M.ihon. '•)7 Watkins \. Manle Ill Watson v. Kvans 21 4 , 114 Wiil.soii V. Porter 204 ' Wnt.son V . Russell . .■.' lOi, 87 ; Watlers V. Lordiv 140 i W,(il;,ke V. Hnrley 11(] i|4, Wclhnan v. Sontliard 21 'J ■ Wi'.si V. P.owii ! 86 Wt'st V. Maclnnes i 18 W.stluh V Unswn •• 08 Wlmrton v. Wri.^ht 14" ,4 Whistler v. Forster IK; (li 21 1 Kii .ft-; 24 i:; .■6 (il' 31. 17i ;!9i iSi 14 5) . O'l h LIV INDEX OF CASES. M liitiikor V. Bank of England lyr. ,lh Ui'ito V. Baker 195 ,16 ^VIlIte V. Continciilal J^ational Uauk 181 ■VVhitd V. (Jaidiu 86 Sii Wliitoheaii v. Walker 219 i40, 4S Wliitehouse v. Bedell , 140i3fi U hitman v. Parker 7l> 'I Wliiteniore v. Nitkerson 47 (1 ^N'liitney v. .Snydtr 50 (4 Whitney v. Stov, 75 (3N Wliytc V Hcyliuan 22 |2 Wiffen V. Iloberts 33 |7 "VVijrirjn V. Flower : 2iif; Vi'^giiiKK V. Vaugiit 27 i2'.' \V I'oeks V. Tinuiug Ill 8 , 186 (8 Wilcox V. Beal 125(5 Wiiders v. Stevens 120 (4 Wiley V Lednard 21:; "» >awes 110 Ml WilU ins 1) Wilkins V. (idlis 142 TiO Wiikins V. Jadis 135 (21 Wilkinson v. Johnson 11 5 t , 220 ,7 Wilkinson v. linwin 120 (6 W'ilks V. Hornby 90 (4 Wdlans v Avers 10 ' 2 WilK-tt V. C.inrt 113 il Willett V. DeGrosbois 84 |46 W'illiiims V. Williiuiis V. Williiims V. Williams v. WiiliMms V. Williams v. Williams v. Williiiuis V. Williaius V. Bavley 70 (19 Gerinaine 34 ill' Uriliiih 225 Marsiiall --'l.: |6 N oxon 20 i 1 Ivobltins 71 :' Iiohinsoii . . . I 'M' Wheeler 25.- Williams VA :4 Williard V. Kiiman Willis V. Barrett 21 . 1 1 1 1" WillLs V. D 1 Castro -'1' ^^ illoiighby V. Aloultou «3 '.' Wiison V. Atkin 135 15 VVii8(.> V. Brown 1^2'" Wilson V. City of Shre\ eport "14 1 1 Wilson V. Demers 2i5 Wilson V. Gates 64 I'i Wiison V. Holmes 1 16 ill WiUdii V. McQueen 117!-' W'ilson V. PiinKle 14o .2M . 152 (5i: Wiiuiham Bank v. Norton 137 I Winternuite v. Post 12 2 VVismer v Wismer ' '• "i U'ilhail V. Huston ...''7 I. - Witte V. Williams 1'.' -1 Uolfe V. J.wett 138 13 W.iod V, Brett J 1 •"> JO Wood V. Connop. Wi)od V. Higpinb Wood V. Hntt., Wood V. Boss. , Wo< d V. Sha\s- , Wood V. Stephen Woodbury v. CJar Woodcock V. Hoi Woodlord V. Dor Woodland v. F. ai Woodrufl" V. Moor Woods V. Dean . . Woolsey v. Crawl Wookey v. Pole. Worden v. Dodge Wordsworth v. M (Workman v. MeK Works V. Hershey Worlcy V. Harriso Wurtele v. Giroua Wright V. Wright Wylde V. Wetmor Wynn v. Alden. . Wfnne v. Kaikes Y.iit'ti V. Dal ton Vatts V. flopi>er., Vatc-s y. Thompso: Yates V. Nash Y^esias v. River 1 Yocnm V. Smith .. Young V. Fluke , . Young V. Urote. . . Young V. (Hover. . i'lks V. Wales .. INDKX OF (\\SKS. rv Wood V. Connop 122 (U| Wood V. Higpinbotliom 7 (28) Wood V. Hutt 159 (4) Wood V. Ross !'3 ilOi, 118 (8) Wed V. Shfw 82 (23) Wood V. Stopheiison 160 (5) Woodbury v. tiartli 214 (11) Woodcock V. lloul.lswortb 150 (41) Woodlord V. Dorwin 28 (3) Woodland v. tV ar 199 (4) Woodruff V. Mooiv 219 (40) Woods V. iJeaii 141 (46) Woolsey v. Cruwt'ord . . 195 Wookey v. Pole HO (1) Worden v. Dodgo 9 (03) Wordswortb v. Macdou-uil 113(1) Workman v. McKinsti y 55 1 i^ Works V. Hcrslu'v 26 (12) Worley v. Harrison 24 (11) Wurttslc V. Girouard 218 (32) Wright V. Wright 83 (29) Wylde V. Wetmoro 128 (3) Wynn v. Alden 146 (2) Wtnne v. Haikes 41 (2) Y.iifs V. Vat«K V. Yitcs V. Yates V. Y§lesias Yocnm V YoDDg V. Young V. Young V. ^■iks V. Dai toil fiS (17) ElopptT 165 Tliompsoii 255 Nasi) 21 (5) V. Riv<-r i^Liti- iJank -^05 (42) . Hmitli 47 (1) Flul pnits, Kngli-1; laiiui-, etc., in 2 vi i: 1880. B. iV C or Bani. .v Cres. — iUuiiewdl t\i (Jrcsswill Reports, Englitsi. Bonllenois — l)c la Personiialiti ut . — llrodrrip and Bingham liijairt B. or C. B. — Common IUmk h lieports, Englisli. B. N. P.—Bullcr's Nisi I'riiis. Knglisli. B. &. P. or Bos it Pul.— Barh. — Barbour Kcports, U. S. Bedarride, 2nd cil., 1877 — Do la, Lrttre ilr (. Bigelow — Till' Ijaw of Bills, .N'otis and Clicck.^, Jiui ed Bing. — Baigliam Uepnrls, English. Bing., N. C. — P.'ngham Now Cases, Englisli. Bli.— Pdigh's llopoits, Knulish. Bli., N. S.— Bligh's Now K. ports. Bornier.— Common tairis. Barge. — Colonial and Foreign Laws, od. 18;;S. Burr. — Burrow's Reports, English. Byles. — 1st od. is:!!t. Am. od. of |84« and 1 )ili lire used in this hook. c Cass. — A decision of thf * Court de Cassation ' of France, (pm-n ing a decision of an inferior < 'ourt. C. C. — Civil Code of liowcr Canada. C. C. — County Court, Ontario. C. B., N. S. — Common Bench itojiorts, New Sorii >, Enulish C. B. — Common 5'onch Uoports, lOnglish. C. L. T. — Cana. — C Chy. D. — mean.s Q. B. D.— " C. P — Conn. — Connecti Cowp.— Cowper'f Cow. or Cowen.— 1). A. -A, 566, moa D. C— Di\ i.-ion ( U. or D. P. S. 2S. part 1, page 289. Daniel. — On negi Deuio — Reports, Dra.— Draper's K Dnpuy or Dnpuis K. I). A. r?, 566, means DaHnz, Collection Alpliabetique, vol. o, \k .")i;6« D. C. — Di\ i^ion Court, Ontario. I), or D. P. S. 2S, 1, 289. — Moans Dalloz. INcueil Pcriodique. vol. part 1, page 289. Daniel. — On negotiahlo instruments, e(i. 1S76, 2 vols. Deuio — Reports, U. S. Bra. — Draper's Reports, Ontario. Dupuy orDupuis (le la Sorra. — L'an . Kla. — Kli>rida Jieport.-;. hremery. — Etudesde Droit Coniiiieri iid.cd. 183:;. G (ia. — Georgia Reports. (Jilhort snr Sirey.— Les C>H\f< Annotes, !ilh imI. |S70. (i. .fe O. — (leldert and (KJ.y Reports, Nova Scotia, liray Rejioits, U. S. LVIII ABBREVIAXrONS EXPLAINED. H H. & C. — Hnrlstono and Coltmaii's Ilcports, English. H. & N. — Ilurlstonc imd Norman's U«potts, Eiiglisli. Hau. — Hannu IlcpDits New Brunswick. Hawthorne — What Instruments are negotiable, 1st ed. 1S89. Hill KeportK, U. S. Holt N. P. or N". P. C— Holt Nisi Priiis Cases, English. Horson. — Questions sur Ic Code de Commerce, ed. 182'J. How. — Howard's Ilcports, U. S. I H. — Illinois Keports, U. S. Ind — Indiiina Keports. Iowa. — Iowa Keports. J James Reports, Nova S(;otia. Johns. — Johnson lieiiorts. li. S. Jousse. — Comuitntiiins. J. P. or P., :i9, 2, 5:-l2.— Means .louinul dii Palais, yi ar 1839, | .', page 532. J. P. — Justice of the Pcaco lleports. English. Jur. N. S. — Jurist, New Heries, Enf,'lish. K Kan. — Kansas Reports. Kerr. — Kerr's Reports, New iSrunswiek. L L. C. L J. — Lower Cuniiia Law .lournal. L. C. C. C. - Civil Codf of Lower Canada. L. C. R. — Lower (Canada '^rports. L. C J. — Lower C'anada .Inrist. Locre.--Es|)rit du Code (h < '.minu ive, ed. 18^9. L. J. or li. J. N. S. Chy. — l.;nv .iDiunal Cliancery, New ISeries, " " '■ Q. H.— Queens Bench " L.N L. R. Chv '< >■■ c. P.— " ■Tlie Legal News. Queliti . Law Reports Cliancerv, English. Common Pleas " H I. (. L.J. Eq.- Cnv. D.— C. P.— C. P D— Q. B.— y. B. D.— P. C- E(|uity, " •^hfUK.try Division, English, dnnnion Pleas ■' " <' Di\. " Queen's I'.ench '• " •' Div. " I'ri\ V Council, " Law Journal, English. Ld. Ray. — Lord Uavniond's iJeports, English. Louis. — Louisiana Reports. L. R.--Law Reporter, Qn.lMv . L. T., N. S— Law Tinie.s, New Series, Lnulish. L. T— Law Times. English. :>! M. C R. — Montreal Ct)nd(iised Reports. M. L. R., 1 S. (' , 200.— Montreal L^iw Reports, 1 Superior Co page 200. AI5RJ M. L. R., 1 Q. n. M. & M or Moo. M. & R. or Mad. A M. & S. or Moo. & M. & W. or Mee. & M. A W.— Meeson Ma((}. — MacQneen Ma. R.— .Manitoba Mare.schal, 1625. — Mar.sh.— Marshall' Martin — Martin's Martin N. 8.— Mar. Merlin.—Rcpertoir. Mass. — Mas.saehuse Md.— Maryland Re, Mich. — Michigan li Minn — Minnesota Miss.— Mississipi R. Mo. — Missoini Ri p( Mod — Modern Kep. Moo. P. C— Moore'i Moo. & S._ Moore a Mood. & M — Muodi Morawetz, 2nd ed. l" itions, in 2 vols. N'amur. — Cours de I N. B., 4. A. or 4. Al N. B. — New Brnnsw N. H.— New Hamspl Nouguier, 2nd ed. 18 res de change, etc." N'ouguier, ith cd. 18 ade toed. 1851 or 18 J^. S. D. — Nova Seoti N. S. R — Nova Scot -V. B. Stevens.— stev •V. Y.— New- York Ri ■"Id.— Oldright's Rep, '. S. —Means old .seri !-». R. 3 Chy L). 320 — 'J- R. i c. P. I). r,ii.sh. Ma( q. — MacQiieen Ap()tal Cases, Scotch. Mrt. U. — Manitoba K'ports. Manschal, 16'2ii. — Traite dts (Ihanpes. Marsh.— Marshall's Ki ports, U. s. Martin. — Murtm's Ji ports, Louisiana. Martin N. h. — ^Martin, Now Series, Louisiana. Merlin. — Kcportoire. 1812, 1S2(). Mass. — Massaehus'^tt' Reports. .M(l. — Maryland Ro ports. Mich. — Michifian Hcports. Minn — Minnesota Reports. Miss.— Mississipi Reports. Mo. — Missouri Reiiorts Mod. — Modern Iie{)'>rt8, Knji;Iish. Moo. P. C. — Moore's Privy Council Cases, English. Moo. & S. — Moore and Scott's R ports, English. Mood. & M— Moody and Malkin's Report.s, English. Morawetz, 2nd ed. 188ench Division, 200. (> iiidessu.s, ed. 1809. — Contrat de Change. " ed. 1811. — Droit Commercial, vol. 2 arsons, Ist ed 18(;7 — A Treatise on the Law of Promissory Notes Bills of Exchange, in 2 volumes P. (,'., 4 App. Cas. JOO. — Privy Council 1 App-al Cases, 200, Engl LX ABBKLVIATIONS KXPLAINED. Ponu. St. — Pi'iinsylvaiiia State Reports. Pcrsil, ed. is 57. — Do la Lcttre de (.:hange. Pft. or Peter's Ruport.s, U. S. PhilliiTjore. — Cointu ii|)(iii International Law, Philadelphia eil. 1854-57 and the law <>t '.omicile, Fjoridon ed. 18-17. Pothier. — ('outrat de C'hange, 1763. P. U. — Practice Reports, Ontario. P. Kep. — Pyke's lleports, Queliec. Pugsloy. — Reports. Xew !iruns\viil>. Pugsloy and liiirl>iilge, " Q ■J.'i Q. P). D., 24;i. — Law Reports, Queen's Bench Division, vol. 'ij,^ jiage 24;!, English. ictte, year 182<:, part 2, p. 368. AnBREVIATIONS EXPLAINED. LXI Sho'w. — Shower's Reports, Knglisli. Siroy. — Soo Gilbert siirSiay. Story on Dills of lixthiiiii^c. 184;;. '< Promisrtory Noti's. 1S47. T Taunt or 'IViun. — Taunton's iJi ports. T. 11.— Term Urports, EnLcli.sii. Tex, — Texas Ucports. Thompson, on iiills ol Exchange. Thom|). — Thompson's Ueports, No\a Scotia. Thorburn. — Bills ut li-MJiangc Act, Scoteh. Tiedeman.— On Comniereial Paper, ed. 188[». Toubeuu. — Institutes. Tranchart. — Petit Discours des Cliiiiit!( s, I6"i'.i. Tudor.— Leading Cases, e.l. 1SS4. u U. C. 2, C. P. 2(10.— U|>i>ei' Canada, J Coinmon I'leas, page 20». " 2, Q. B. -JOO. — Upi)er Canada, 'J Queen's Beueii, page 200. U. C. t;, L. J. 5S. — Upper (Janada <:, Jiaw Journal, page 58. " 1, L. J. N.S., 58.— • I. iiaw .lournal.New Series,page 58. VtA. — Vesey sr's Reports, EnglLsli. Vinetn.s. ed. 1821. — De la Legislation Commereiale. Yt. — Vermont Reports, L. S. w \V. R.— Weeklv lup"rts. En-lisli. Wal.— Wallace's Ke[.ort.s, ( . S. Wharton— Contlict ol L;iw, 1872. Wend.— Wendell's U.4)orts, U. S. Westlake.— Conflict ot Laws, Hth ed., 1880. Wheaton. — Elements of International Law. I>ana's>!tli ed. 18(56. Wheat. — Wheaton Iteports, U. S. Wis. — Wisconsin Reports. THE BI [// Act relati TlKJi Mnjest 1* the Senate IS follows : — 1. This Ac Milnmge Act, a. Ill this Wjuires : — [a] The ex W'eptjince con (/') The exp !>im and set-< (') The expi 'ted bank or Ciinadii : THE BILLS OF EXCHANGE ACT, 1890. 53 Vict., c. 33. |.l/( Act relailuij to Billfi of ExeJuuit/e, CJieques, and Protnlssorij Notes. lAssented to Uih Mai/, is'JO.] HYAl Mnjesty, by and with tho advice and consent of tlie Senate and House of Commons of Canada, enacts h follows : — VMIT I. r R E L 1 M I N A R Y. 1. This Act may be cited as " The Bills o/^h,,rt jinc. p:(hc|.'an- [weptance completed by delivery or notification ;'''" [h) The expression " Action" includes counter-,. .^^.,1^,^^ ,, lliiini and set-off ; ('■) The expression "Bank" means an incorpo-,.j,,^^,^„ ated bank or savings bank carrying on business Canada j ' Itill ; ' N'ltc. TiiK JWlls of Exchanck Act, 18'JU. cmr." ((f) riio i'X})i'('ssi()n '' RcarcM' " luciuis tlic pcM'soii ill possession of u bill or nok' wliicli is payablo to be. rcr ; («) The expression ''Bill" mciins bill of ex- clijinge, jiiul " Note " ineans promissory nolc ; luiivury." (/') Tlie expression *' Delivery " ineans traiisti'r of possession, aetnal or constrnctive, from one person to another ; (//) The ex])ressicn " Holder" means the t)ayoe or indorsee of a bill or note who is in possession of it, (tr the bearer thereof ; {h) The exi)ression " Indorsement " means ;iii indorsement completed by delivery ; (/) The expression "Issue" means the (ir>t delivery of a bill or note, complete in form, to a person who takes it as a holder ; (J) The expression ••Valine" ineans valuablo consideration ; (/•) The expression '• Defence " inchules counter claim. Ilnldcr. " Ii ilor.so llUMlt." I.- IK'." V.iliic." DoCence." frdns/ttror ; trniK'il tlu; im uccejtt'ir. 'I iU!wl is tlic (Ir acceptor ) a statement of the transiiction which givei< rise to the bill, is unconditiomil ; (4) A bill is not invalid by reason : — (ti) That it is not dated ; (/>) That it does not specify the value given. ur that any value has been given therefor; When ini=trn men! is not such bill. Uneonilitinn- al order de- tiucd. Bin not in- valid for roii- sons ."pi'citied (r) Tha is drawn ^'(7' .ii'c/ it) II.' All iiiiciiiii/ Sff ilcliiiiiiiiti Tlic fnllowi 1. "Utvciv Slf|.ll(M, IS '■ Kcccivcii tV( !"■ rt'tiiriu'il w .'11."). St (• iiiiv '2. •' Mr. 15. Hull r. Weld., ■">• A pnnni; iIi'Miand the 1; l.c.'ul. Cii^cs 2( I. A MM ,,.r ^■•/■^' r. J'oiii|" •">• A note <>. .Miinici|i 7./- ('relit ( Ciiliiii;:rii|;,r(', !) ''^- A ccrlilicii IllCSt ill till' cv V-y..r. -) 1{. I,, Miller r. .Viistci '.' Thr n,l|,,v ■■ I.cv i .MilSull, iiii' ill (iiir sett 1". A [irodiis i'' iuldresscd to '' I5;ini. tfe ('. j 'l"l|'ii 2(i2; l.lo; ixiliiui'.'i' Tin ■M;iv. |v2>i S V IH.;, ,1. I', li, : II. The full.n " .Vaili!ui Kciiiic |^'t".I..M.'S|ij,rii., " nil the .<|i;ic(' fl " I'iiu' Slcaiii,.n " id' iiililii>nnl order in wnthiij to pay a sum certain in money. Sir ilflinitidii cf pHHiiissory ;iotes iti sentiuii S2. Tlic folltiwiii;^ liiivi' Im'cii licld tu lie vuliil bills oy imtt's : — 1. " Received fmni V. i'lJO paviilile on (leinatiil." Meduhliin r. Stcplitii, IS I). Is24; Chaliriers' l!l. Hut the fnllowinj.' recri|pt, '• licceived Troni Mrs. Racliei Aselier loan ut'ei;.'lit liuinlreti ddlliir-^, tu lie returned when re(|uired, "is not a note. DeSola c. Aseher, 17 U. L. .'!l.'i. Su' infra, nn. 7, 21) and ."51. See notes. 2. *' Mr. B. will inneh olilige Mr. A. hv pavinir to the order (if ('." \[n[\ r. Wel.h, 1 Ks|.. 121». ■». A promise to pav in ea'^h oi' ixoods, if the huMei' (dimxes to licMiand the latter. McDonnell r. llolgate, 2 li. de L. 2!); Higelow, head. Cases 20. •I. A hill pavalile in Paris or Londnn, !it the clioice of the holder. S,./.e r. Ponipe. S ('. P. X. S. .-)I2, "). A note payahle " in icial tender money." North-Western National Hank r. Jar\ is, 2 Ma. H. f).'?. (i. Mnnieipa! dehentiires. Ea-^tern 'l'i)wnships Hank r. Mnniei- pality of ('(imptiiii, 7 li. L. 4t(i. Hnt see Randolph V(d. I, p. 10'.). § Dl. 7. "Creilit ('. or onk-r in e.a^h "' instead of " Pav." Elli.son u. Collingridge, <) C. H. r)70; Lovdl r. Hill, C. k P. 2:ls. S. A certilicate of deposit payahh' '* 1.") days after notice with in Icrest in tiie event of the dep()sii lasting three months. " Riclier c. Vover. .") R. L. .")!)| ; P. C. a App. Cas. 401 ; 1 Randuli»h IOC, § S'J ; Miller r. Austen, i:i How. 21S. '.'. '{"he following ofiier written at the foot of a promissory note, ■' Levi Mason, Ksip, please pay the above note an I hold it a'_'ainhip owners." (Signed) N. Kknxkdy. — Kennedv k E.xchange Hank of Canada, .U) fi. C. J-, 2l)G. § 3. s 6 TiiH Bills of Exchange Act, 1890. ?^ 3. \'l. "Due .Iiimos (iray, or hearer, f«mr Imiilre'l ami ciirlity-two dollars, payalile in foiirtet'ii days after date," the word payable anioiiiitiiij^ to a promise to pay. Gray v. Warden, IJ. C, 2'J Q. J{. 5'Mi. 1.!. " Seveiiteci) months after (hite, I promise to pay to Mr. James " lIoiTL', or onler, i.'.")0 without interest, or tiiree years and five " months after dati- with two vears interest." Hojrj; v. Marsh, U. C, 5 g. H. ;ni». Sce intVa, n. 52." 14. Every ordi'r in writin;:ona hatdc, where tlie 'e on demand at said haids." Elliott r. IJeaeh, 'A Ma. K. 'll'A. See als.i Deerinn r. llaydeii, l] Ma. li. 21;). l(i. A note ])ayalile to (', lU' hearer, addiiiLT : " wliich, when paid, is to lie endorsed mi the inortiiaije, hearing even ilate with this note." (,'iiesney r. St. .lolm, 4 A. li.'loO. 17. A liill orexchamre on the I^ink of Enu'land for i"7,OnO, " which sum is on account of the dividends and interest tine on tlie capital and deeds i"ei.nstereil in the liodks of the hank .... which you will iilease chariie t'l my account and credit, accordiuir to a rei^istered letter I have addressed to vou." Crofton r. Crofton, .'{:{ Cli. 1). 1112; 5t; L. .1. ch. i;j:. ; .V) e. t. :'!!»i ; :{"> w. it. 247. Are likfti'isc. rali'il the folio ir in ij liills jxii/ahlc: — is. " As my ()uarterly half-pay due 1st Fehruaiy liy advance." Mc Eeod r. Snee,"2 Stra. 7ti2. I'.t. Heinix a portion ot' a value as under, depositeij m security for the piynient hetiof. Ilaussoullier r. Hartsinek, 7 T. II. ~'.\A 20. .X'iain-'t cotton, per" Swallow." [nmaii r. Clare, Johns. 7t)ll' 21. On acc(uuit of inonevs a Ivanced hy me for tlu' X. Companv. Griliin r. Weatlu rhy, E. [{.', l] Q. K 15:i 22. Airainst credit Xo. 20, and place it to account, as advised per X liariner r. .lohnston, E. li., ."> IE E. l.')7. 2'?. Which voii will please chari^e to my account, and credit ac" cordini: to a rei:istered letter addressed to vou. Ju: JJovse, X\ Ch. !)• G12. The folldiriiiij arc inntliil : — 2t. A <'ertificnte hy an otlicer of the <.'overnment, certit'yiu'j a hal- ancc due to another and directiii;; a third ollicer to \m\ the amount. McEean r. Koss, 2 U. de E. 2!), See infra, n. .Ti. 2.'). A promise to pa\' " half in cash and half in irrain." Kus-ell r. Phillip-. 11 Q H. soT; (iillin r. Cutler. 1 E. C. J. 277 ; Biunham r. Walls, 2 Kerr :i77 ; Melville r. Bedall, X. B. Stev. ti5. 2f). " III casli or mortgage upon real estate." Goring r. Barwick, U. C, It; Q. B. 45. 27. " Fii carpenter's or join, .'■ill. \ pronii' liiiiiiningway, ;)!. A letter leiiii. " -uhjeii (il.. c. J. ;';ii), :!2. \ v-nti,., !i (■■'I'liiin sum Mi|''ii, n. 2E .'f.i. A writiei j iVhliiialioii. Cot( .'U. An oi'der LiM'ii, 2 :■«. s. ■i"i. .\n lU'dei' I.e.. 12 Q. 1!. ■111. An (U'der ,*l"'', '■ .111(1 lal III-: .\ustiii c. J I'll/.llllr ill 1)1(1 Ai'. aNo inval ii". .\ promise n'!i (•■ Sloan, 2.'{ ■>-• Or in curr liMiu' r. Eowry, •■]'•'. Or'- payah !:ii'j:'in /■. C'msSj 411. I'ayahle'-i o.'iJ ; l)uiin r. .\\ 41. "In cash o .'i:..s,. 22t;. ri. lV:il»le"v ■'I'i lo exceed one •Na-li r. Ciihsi.u, il Eiiii,;'sto(dc r. Pa f"ii r. Stevenson, An I. (). r.or ■l::. An E O. P., I' M. Leiinan, P. I'l'ii'l r. I/rael, 1 Fi-lier r. Eeslie, 1 "'lier\vis(>, if the i |':i.v, r.,/. " Due J. Jate.'" C.rav \ ''"'•■Iwyii X. i . -tOl "''lie .Vmericau S (Vidiford r. Bulni, l-C.J. ;{07; Hall I'. ^*ii, 2, 2;{0. ]{ig( Form and Inteupketation. five C. : an unk OCT- IKltf [.ay- See 'te.' liicli pitul ercii (;i'2 2*^. A Irnfl pavulilc " tlin'edavs after sailiii;.' nt'a ve-^sel. " Dooley r. § 3. Rvi.r-nii, I (l L.'U. :iH); WimmI V. Hi^'j^iiil>ulliain, 2 1{. de L. 2f< ; bii- cliuiiie I'. Miijinire, h Q. L. 11. 2!I5. •.':i. " Due t(» Mr. U..liert lliissell .£')()(», etc, jtayatile at tlie sal- of liii liiMilier iiiarkeil I'. A-, in Ciiichec or elsewliere." lliis.-ell r. Wells, ('. S, liiiii A pruiiiise to pav " when K. shall arrive at age." Kelley r. iiiiigway, 1."! III. (>04. See section 11 (/*)• .•\ letter acknnwleilgini: the reeeipt of a sum of money as a -nlijert to he 1' cturneii when (U'lnaiuled." W'hishawc. (iilinuur, 1.. ('. .1. .Ml) ; i;; L. C. H. 'M. Supra, n. I. See i loie.' VI. A v'TitiiiLT eertifyiiig that a per-un is inilei)iei| unto another in iiin sum of money. Dasylva r, l)nfour, hi L. C. it. 2'J4. See ■1 r.'I'l Mc for lianv. Innt . II t: Im r. •iei\, |a. •> U'lill n. 24. . A writfiMi ))ro'uise eontaining a eon'litii>n to jiass a notarial ;alion. I'oti' r. i,eniieii\, !• L (". R. 221. . .\ii onlcr drawn for amount of freii:ht to he earned. Brett «. Li\rii. 2 :v. S. 1). 472. A I I oi'iler not directed to any persi F orward /•• 1 hnmp-on, ('.. 12 Q. 1!. 10;i. S' supra No. 'J, HI and sect. C, n, 1. : |M i^ ,\n iirdei' lo pay |ila:ntiir, or hearer, nini'ty days after dat' md take up tlu ir note, etc." Oouk c. Satterlee, ti Cowen I-: Austin c. Hums, It; iJarii 048. i' nj-lhli ill IIIDIH'I/. .\r. al-o invalid : — See sect. '.I, n. I to 4. juii r .\ ])romi-e to pay in .Vew York " in Canada money." 'J'homp- Sloan, 2;} Wend. 71. See section \K ii.s'. Or in current haid< notes. Little v. Pho'nix 1 >ani\. t Hill ;{.■.;•; Irvine/-, liowry, 14 I'eters 2;>;{ ; Coll'iis r. Lincln. II Vl. 2GH. ,"'.'. Oi'" payable in money or in the Imnds of a corporation." liur nil'.'.' Ill r. C-oss, If) llan. 71. 411. I'avahle'Mn Canada hills." Crrav r. Warden, U. C, 2'.) Q. H. .Ki; Ihiiin r. Allen, 24 N 15. 1. 1 per ■ 41. " In cash or notes of the Maidc of iMiL'laud." I'Jx jidrtc Iineson, ^llo-e 22t;. 42. Payable " with e.xcdianue on Xew York," or "with e.xcdiaiiire !i"l hi exceed one half jier cent." Ca/.et r. Kirk, X. ]>., 4 A.ol.l; .V:i !ir. (iil.s,,n,iliid. 47'.t; Palmer r. Kaliiiesto(d<, C. C, !» C. P. 172; r;iiii,;'-tock V. Palmer, V. C.,2() Q. P.. ;{07; C. C, 23 Q. 1?. .'{87; Sa.x- loii ,-. Stevenson, V. C, 23 C. P. CMi. All I. (). r. Ill- lion. 4:;. An r. (). r or a B ; Irii-I r. l/rael, 1 Caniph. 4!)'.): Tcmkins /'. Ashly. t; H. A" C. T.ll .er r. licslie 1 Ksn. 42-.; F esfiiuiever i\ Adi I'tlnrwise, if the instrument contain.s words expressmji a promi.so to li; M. iV W. 44!». /. " Diie.l. Ct., or hearer, !|4S2, payable ii\ fourteen days after lav, r.i !air" '(Jriiv Warden, V . C, 2!> Q.'H. f):!") ; Ca T/ieJolhicing insfruments arc also invalid: — 44. *' PIfiiso )iay K;;i'rt(pii C\ Rvrrson, uttdnicy fur pliiiiifKT in tliis ciiMSf (title (if till- ciiii-r lii'iii;^ L'ivcn iii-tlit' iiiiifi:iii)i 'lit' ■■^niii n: one Iniiidfcil and twoiity-lisc luniiid--, on account of tlic plaint itl'- claim in this .-^uit. County of I'ertli r. Mc(irc>,'ur, IJ. C, 21 Q. li. l,V,i 4'). B, lieinji a creditor of A, drew upon liini a written oidir piestiiiL' liiin to pav K " tlie amount of my account furnishcij, " re( and delivered it to On presentment, A wrote on it " Cor for, sav, i^TT)," signinir the initials of his name. IleM, that this pa] was n, t a liill of exchaiitie. Keiuiedv v. Adams, 2, N. .!}., 1G2 red M, mnufiiiK la .— 4t). A note with the following iiu'inorandum on the back is invalid; It is uL'reed that this note is to lic paid hy a lawful mortgage.'' Kwliorn r. Lawreiue, U . C, 5 (^. B. .'{5!). 47. (J (du'iiue icrre, wtu-tlier th tl lis m emorandum on the marL'in of a I) '• Pavalil' wittiin ell rht di urion r. Dorion, .{ g. B. U, .{91. lys, IS par t of the instruii U'llt, 48. The f oIloW ini: memorandum at the foot of the note ntad e U void : " 'J"he ahove note is to he i)aid in inerchantaiile lumlier, to l>i delivered in Toronto, at cash price, and an additiimal tiuantity ir liimher sutlicient to pay the freight is to he sent in. If not so | within tile time, tlu-n the same to h Jones, U. C, 19 Q. B. 517. )e paid in casii ijii OUlloIl C. 49. A written memorandum, endorsed on a note at or heforo tin tune of signing, is considered as part of such iioti-. If mach' after idered onlv as a memorandum to iileiitifv the n will McK lie con; in noil (' C iimiilie L'. C.,(; L. .). icwliorn r L iwrence ite. I'. C, i") Q. B. 359 ; Swaisland c. Davidson, Q. K., 3 Chv. 1). 320. m no 50. A memorandum at tiie foot imlic'ating the consiileration duo- •t invalidate it. .loscpji r. Hnttoii, 9 L. C. R. 2'.I9. .So in Framea te (lontainin'' a memorandum made hv tlie maker, that it is *"tr liiissiiilc s'.'' Tlie memorandum only is nii 11. P vri.- Au-Mist, 1.SS4, and 23rd Auirust, 1S49, J. P. 49, 2, 5, 17, 2t;0. il. A \ L. Bonds as t iiKMiiorandum on a note signeil liy a pri!ici|ia 1 and Miretv, III- 'F, aleial snot notice to the payee ofany agreriiieiii lietween the principal and surt'ty that the former would pledge t Itouds referred to; nor does it amount to a condition preceiU'iit tot! liability of the surely that the i)ayee should receive the bond.s i securitv. KitchhurL' Sav. Bank R ice 124 Mass. 72. 52. But if an instruinerit -tate that it is " to he held as collat enu V.I'' : Hecurity for the i)ayment of" a certain debt, il cannot be negotialilo nor is it a promissory note. IIa»kell r. Lambert, lf> (Jray Rollins r. .Mav, 11 I);'v...s..n,:i (). R. 75; Hale r. Mcrrit 11 Ad.cV K. 213; M( Robbie r. Torrance, 5 'Ma. 1! .Sutherlaml r. Patterstm, (). R.. I V. 1*. D. 5(i5 ; Sweeiisland r k, I'. ('., II) g, B. ;')i;n J. Dominion Building Society, 24 L. V. J. Ill ; I L. N. 496. See sec- tion 82 (3) of the Act. 53. An insurance note doe,'* not become uncertain or conditional y contaiiiinLT the wonls " On JlollCV 33,38t; thoiiir h th 1' liic'V referred to provides fur a set-oil of notes due the company in ca-e .'il. \ memor lit a hill of e.\(d ilie lull, Paris, l.MiiisiaMa thai •• it-eives to hi (iu'v- Mot invali A hitrr ofcrci .V). A letter. Id place a certai iliiy, i'^ not a h ciiiu'elled at aiiv i,;!li!»; Story, " Ciiiiiula r. Cole, l.:2: liritish I.u .''>iT infra, sect, 1 Dill iifit /niiii T!ii' following a |iai'ticnlar fiim :'iti. '-Mr, Ock ■lay, l.'ith Febrii; Ml .'>((i\iirs mom ."i7. •' Out of t Kiillerton r. Clia .■>«^. Out of th( I'.iiiv. .Fcnney r. •V.t. Out of tin Diiwkes r. Lord '10. Ont of th (';u!m» r. Katicoii •li. On tli," sal IIiiHiird. 2 B, A- I •12. Out of the inf under the wil I ■ nil thereout. *<:>. Out of the cfriaiii ore bed. 1 IIill5s3; (lall,. lib " And dedr annership." M •ii',;li-li and Ann (") Thilt if is II '..■• If a bill l» i:iii" It was made 422: Hague r. Fi MirJii'jiin ins. Co. 1 iV'iarri.le, 82. fit). A fal.-e dat- loss. Taylor c Ciirrv, 109 Ma 3li >ee B ar COIIIIIUMV Ml l^il-t: "1 Hi) , ker ».. Valentine. 10 | p''}"' ""■J"M"''' (rrav 341; Barker r. Parker, lb. 339. it would be otherwise if the note were Mil iject to the policy Amorican iSatd< r. Iilanchai'< Allen 333. See als-o Hubbard c Mosely, 11 Gray 170. KiclitiT r. Selin, 8 ('') Tlidf if lilies '»". riie Words ' tiff in UIll nf llltillV i. t.V.I. oI'iliT (lITCcI valid; 'll"0.'' IllU'llt. lade it to i. titv o: |iai'i tdii I'. iro tlio ft or, ii note. CO, r. 1 (loos ill let' a trans- is, Dili y, "F. ClllOIlI :t" the totiie mis a- iilrrai F(JIIM AND InTKIII'UETATION. ')l. A inciiinrjviiilnin. iiiiuli' \>y tlic (li'fiucr nfaii oi'ilcr' in tho (nrm ol ii hill (pf «'.\c-liiiiij:c, iliat he can renew it at matnntv, invaliiiatcM ihcl.ill, I'ari.s 2nil Fel.., ls:5(l, S. :{(l, 2, 17.". Hut it was lield iti Louisiana tliat the inenKii'antluni inaile liy the maker, that he " feseivcs ti( liini-^elr the ti;:ht to ])o. A letter, in wiiicii a bankei- reqiiests another hankiiiLT house III |ihiee a certain sum of mo.iey to the creilit of tiie In aier on a jiiveii diiy, i< not a hill ofexchanj^e, hut a letter of eieilit which may he (■iiiiciileil at anv time hefort' Tiialurity. Cass., 1 |th .lime, ISSO, .S. )-!(), \ ia iK'. 1') '- 1 la. |{. Ill Ir 'ooll'V c sec- ti. iial "' U'V a- .' Ill le. 111 if the ar 1, ' l..'!iill; Storv, Hills (if Kxchaiijze, §§ 4.VJ el sni.; Iniou Hank of ( iiiiaila r. Cole, 17 L. .1. C. H. lO'J ; iMoiM.'aii r. Lariviere, Ii. H., 7 H. J.. rxi: Hritish Linen Co. v. Caledonian In-. Co., I Mani. U II. L. lO'J. Sir infra, sect. 17, u. 17. Dill uf'eil and sold from a cfiluiii ore hed. Wordeii ('. Dm I ire, I Deiiio l.VJ ; Morton r. X'avkir, 1 Hill .'.s.!; (lallery r. Hrindle. 11 Harh. isC. 'il. •' .And (leiluct the same from my sjiare of tlie profits of ilio iiartiier-^hip." MiiiiL'er r. Shannon, ill N. Y. 2')I, whe- ill the Kn^disli iind American authorities are collected anil reviewe.. C") Tlnit if is iii>( ifiifi'il. See ayee. " Thereupon Lord Ksher rernarks: '' I aji'ree to this, except to the phrase in /xiiiif o/ f'.-rm,. I think that there must b^ three real parties, althouL.h the same jtarty may be the drawer and the payee. " Vaiiliano c. Bank of 3^:n-land,"2:} Q. B. I). 24!} ; L. J. Q. B. :i'u. Section 5, sub suc- tion (2), says that where the drawer and drawee an' thv^ same person, the holder may treat tlie instrument eitlu'r as a bill of exchauue or a promissory note. When; the l)ill is drawn pay- able to the order of the drawer or to tlie order of the drawee, it was ami. It is not theref( in 15. the Jlrovi^ v witli these co; 'ill of txchaime. The definition ( QiK'bec, seems the Act and tii "kI in Kngland. ritten order by on •nlutely and at ; It may be said [nvn in section '. iiiremelits of th A hill in the foil i: I'f the Act :— Tay to niysi'If. "Peter F^rown. ]• ij 8t. James Sti Tliis instrument, "'■'lUe. if the drav ''looanuii:' of tin; ction S. I he words /};/• o' ft perfectly useles; rlirinu' no longer 29tli lIMli dv I. '(■- (le ("u.S;i. Il'l' J lolt, lie in 1 5 re. ,o tlio I'll ill order Sllfi'l- unl or lition, lity (if awi'o, ))(■ the )i!it of uive? iM- i? n'ller irk>: I saiuo Ilk of i^ec- suuio ill of 1 |);iy ,v.'e, it (if ex- ■ction llllellt I pay niii Iw Form and Intf,kpui:tation. ruder si-ction 8, a bill of oxclmnn'o in supposed to he payiililo ,1 tln! order of a specitied person or to bearer; but uu(b'r section .sub-section 1, a bill tboULib not neu(ttial)le is valid ; and under lubsection 4, a bill payiiblo to a particular person, witli<»ut the Rords or order, or /itan-r, is still negotiable. Fiider section .'5, a bill is to be made payable on demand, or at certain future time ; but under section 10, it is not nece.ss iry to xprcss any time lor jiayment, and then the bill is payable on de- 111111(1. It is not therefore sur[)rising to notici' in sub section lJ of sec- inii 8, tlu' i»roviso that " an instrument which doi's not com- liv with these conditions is not, (xcrpt us ken iiiaf/er provided, liill of 1 xchanji'c. " Tliedetinition of a bill of cxchauLije. uiven in the Civil Code if Quebec, seems to be more in accordance with the provisions f the Act and the principles of the l^aw .Merchant as under- tixxl ill Hiiiilaiid. Art. -279 says: '" A bill of exchange is a •ritteii order by one person to another ibr the payment of money bsnlutely ami at all events. " It iii;iy b(! said that the definition of a bill of exchange, as ■vn in section ',>, is in the usual form, but it exc^'eds the .|iiirements of the Act. V hill in the i'ollowinii' ibrm is a bill strictly within the mcan- t (if the Act ; — MoNTHEAl,, 1st September, 1890. "Pay to myself one hundred dollars. c Peter Brown, Es(l., p5 IIenry .T()NE.s. 15 8t, James Street, Montreal. 11 '■J § 3. This instrument, wliiidi may be called a draft, or order, or a i<'i|ue. if the drawee be a ba"V. is a bill of I'xchanue within I' iiK iiiiiii^' of the Act. It is moreover negotiable. Si'C infra, ction S. file words /or mdiui received are no lonti'cr necessary, and in For viiluo ft perfectly useless, even from the ])oint ol" \ iew of [irocediire, "''^'^''^'•^" f Ijeiiiu no longer a materiaf part of the instrument, the di'fen- 12 TlIK P.ILLS OK KxcH.vxt;K AcT, 1S90. * S« diint caim ■ he call' d upon to ilciiy ii li_y an allidavit, as rfi|ui. n-il by till! Cddi! of l*rocfilun' ol' tln' l'roviiii;t' of Qiu'k-c. Tbtj wonls/or nr/id! nrelviif arc of.solittli! cousin pu'iuv, tliat Mc- Lcod, in liis Tr^'atisc on Haiikiiit:. \) 1(H^, di't'laivs tlicir iiifaiiiD,! tu he no urt'atiT than sueli words as '" Your .iltinlk'nt siTvant etc., " w i itt n at the foot of tlu' bill. Foreign l.ill.-. J^iHs dia wn upon N.-w York, and issued l.y our cliartiT': banks, assume Liviu'rally the form of ehe((Ues upon the liaiil; correspondents. Bills u|ion liondon and Kiirnpe generally are • composed of three parts. See .section 70. The foUowiii- i.s t: form now in use : — Ko. L'(H). Jvxehan-e for .€100 stj--. Montreal, iJrd October, IS'.MI. NiiK ty days after siuht of tliis first oi" Hxehanij,'e (secniiil and third of same tenor and date unpaid), pay to the onk of flnhn Smith, one hundred jxtunds sterlini,', valu" receivciL and eliari:v the same with or without further advice to accouut of To Henry Jones. John Peters. 1 1'J Chancery Ijane, London, Km:'. A ))ill of exehanii'e is an inufonditioiial order, ami a proiiiissoi note an unconditional promise to jiay. Si'ctions )> and 8li. Ti.j e.sseii'ial characti'r of both these instruments is therefore the sauirl and hence it is not surprisini:' that the rules of the one apply tniLj other. Seetion SS says that the provisions of the Act relatiiiL':] liills of exchaiiLTi' shall apply, with the ni't-i'ssary modilieatiniis.l promissory notes. The maker is u;enerallv deemed to correspunl with the aeeep'or, for a note is not susceptible of an acceptaiic Conseijuently tlu' jimvisions relatinuto accej)taiuH', presentment tj accej)taiice, and acceptance suj>ra pnttest, do not apply to mm and there lies the chief distinction between a bill and a iietc the one is an order and the other a ])romise to )»ay. In ticiieriil any expression of a promise or order to pay will l)e suflieiniij but a men; acknowledgment of a debt is not a note, aiidaiiaulij •ity to jtay is r iiiiinj,'. '■ Plea.* 10," was invali ise where tJU' d pay.' II ami] It would seem lotc within the i, iiplyiiii;' a pron k'Uiiuid." See ^ It must he obs jb iKi. 4;^, with vru rendered b irmuissory note : It all events, and In Hall V. JJia the order, etc.,"' i'iouiposed of lleid fctitinir; but in ; ■ ;C, J,. Pane and 111 ('rid i ford i hnw "(lood or four thousand fiv( T annum." Tl ind the (|uestion lad been given fo asiiotcvcn allud 'W as well as ii I'* a note. Thisi iithoriiy uitoii tli The sam.' niaso '"inv: a promise iWeived of A. ] lii!* hei'ii held to t'. l.^ti; Oreen Tiuniu.y," to ber Natt. it McC. 5 rweipt int'ndoL i"t a note, inasmi \ promise to pay.' f. Tenia. 40 Tex. Form and iNTEHPiu-yrATioN. 13 rci itv to pay is not a bill. So it has been held that an iiistrmnont § 3. IMcasL'k't boaror have Cl(M», and you will imich oltli^o ''l'"i f M ^111'. was invalid. Jjittli! v. Slackt'ord, 1 M. iSi 31. 171. liike- i «iv' wlioiv tho doi'Uiuent reads as follows : " Wc authorize vou iii'aniii,| .J ^ •' fopay." Hamilton v. Sjxittiswoode, 4 Kxch. 'HH). \'V\M lartiT ' liiiiik in ;i > 11^ IS t SO(t. SOCUll'l e oi'ilr icfivi'd, IfCOUIlI iters It would seem that an I. (.). U. or a bon is not a promissory I. 0. U. *(iU' within the meaning of the Statute, unless it contains words iuiplviiiu' a prnmise to pay, t'. g. : — " I. (). U. §100 payable ou dtiii;oul." See sujjra n. 41^ ; 1 Uai h)lph, ^ 9.0. It must be observed thai I'le Qiieoee decisions mentioned above ! in 110. 41^, with the exce[)tion of that of 'Jridiford v. Jiulmer, fere niulered before tlu; Code, which, like the Act, detines a piiimi>snry imte : "A written promise for the {layment of money It all events, and without any condition." In Hall V. Bradbury, the followin an imlioriiy upnii the point. The same reasoning is applicable to rcolpts for moin'V con- Hecciitts. laiiiiiiL'; a promise of repayment. Thus the following document: Received of A. B. £1U0, which I promise tu pay on demand," as heiM held to be a good note. Ashby v. Asliby, !} Moo. 1'. iS(i; Green r. Davies, 4 B. & C. 2;^5. Jiikewise a receipt irmniiey." to ben-turned when called for." Uoodfolk v. licslie, Natt. i^ MeC. 585, 1 Randolph ^ !>0. But a m -re staten.ent |t receipt int 'uded for evidence of moneys to be accounted for is ifit a note, inasmuch as it does not contain an}' words implying an :iui-^/(rom/.se to pay.' Tomkins v. Ashby, 6 B. & C. 541 ; Komau I Tenia, 40 Tex. 306. iniisso e saiii' y I"!': iitiu': ti(iii\ ri'i'^l"' fptaiiH tniriiti to in't I liotf. itVieiiiii 14 TiiK Hills ok Exchange Act, 18U0. 1 ^ 3. The Conn of Appi-als of tho Provinco of Quoboc lias reccnti' (li;cidi!(l tliivt tho fol lowing receipt wiis not a note : •' llecciv from Mrs. Rachel Aseher, loan of isiglit hundred dollars, to returned when refiuired." 1) .Sola i>. Asclun*, supra, u, 1. similar decision was rendered before the Code by Mr. Jiistic_ ]\[onk in the case of Wliisliaw u. (jiilmnur, supra, n. .51, wluri the receijit was in the form of a lett/r, with the words '' bein^ to u loan, subject to hAwj; returned when demanded " The groim taken by Mr. Justice Monk was that tho instrauii nt, altliou.-l signed by a trader, was payable to a non-trader, and appi-'aivdi. him to partake more of the character of a civil loan tinui ol'i promissory note. The learneil judge added, however, that h arrived at that conclusion '' with considerable hesitation." The report in DeSola i>. Asclier is so meagre that it is iiiipdji slble to make out upon what grounds the judges in appeal ha: their decision ; it nii-rely states the naked i'act that the judgiuiD of the court below was continued. Tlie text, however, of tli latter is fully set forth in the reptu't, and shows that the pica jirescription applicable to promissory notes was dismissiul, " que la dette dont il s'agit est d'une nature civile." But it not essen ial to the validity of a note that it should be m ide b; twecn traders or for a commiircial consideration. Tlu! di: tinction between traders and non-tradt;rs, which is to be foinul several of the Codes of Europe, has long ago ceased to exist i Quebec. It is not reproduced in the Code ; but even if it li;i been, it is entirely removed by section 22 of the Act : " Capacii to incur liability as a party to a bill is co-extensive with capacit to contract." Chalmers, p. 55. Kxchnnge. By section 3, a bill must be drawn for a sum certaiu money. The courts of several of the provinces have held tli;i bills made and payable in Cmada, " with exchange on N York " or "• on Boston," are invalid, the amount being rendeii; uncertain by the uncertainty of exchange. 8upra, n. 42. Tli term " exchange " is used to designate the market value of luoiif in one country to be delivered in another, and exchaniie c1kiiil'4i '■■"^' v-»ci. 1-17 , , / , , • 11 • c. !■ "'^ ''-^P-''^^! ot tran V \. 1 1 11 • T^- . /^ . « • , 1 "!-' to actually mak or a note made and payable in Kingston, Out., "with exeliaii^ on New York, " Chief Justice Draper said in Paliiur Farnestock, U. C, 9 C. P. 174: "I rather read the nolo i a pmnnse to pa as will be e(|uiv k' the trill' rca( ill aiiiniiiit, fur I laiiitv six moiitli! nil a given d.iy in 'li, provides a nm in case o IPs or hut lliat jipplies oi I a|ipieheiid, on I iliis decision will < I'liiuimreial men w iiij- notes dt' hand iiHiiiiiiiig it, consi( cuiild be maintaiiK til',' American dee niN' iiad arisen the l;ki' til pi'eseiit ca^ lialile promissory i Tiiis doctrine is Wfirk (111 the law of ;iiid cnii are to be rati' of exciianiio b tive demand for mi liV any mie desirii Till' praetieal effei current e\c!iange o tiiiitiveness of hi and payable in ano( rdiaweci must pa_ and tiierefore he pa Kpiaise 111' securing or drawee, and the the firmer case •lat whatever uncer n such a bill or n fights of the artic!: Form and Intkhi-uktation. a pnmiiso to j)ay in KiiijxstfMi, Out., »ucli a sum of nmnoy as will l)t' ((|uivalcMit to £12 17s. in Ni-w York ; and if this li,' till' tnn' !•( adiiiij;. tin; instrument ctniscs to have certainty ill amount, tor 1 know no rule hy which it can he said with cir- laiiity six Uionths hd'orchand what will he the rate ot'exch iii^o nil 11 '_:ivin >'t» ami con are to be found collected. At 2S(f, l\e says : " The rati' of exchaniie between two places is tletermined by the rela- tive demand for money in those places, and it can be ascertained Ia' any one desiriui;' to know, by inipiirinn' in banking;' circles- The practical effect of a bill or ntite, payabh; in one place with current e\c!ianji'e on another place, is the same at least as to the jilrtinitivene.ss of he sum, as a m)te or bill drawn in one })lace and payable in another place. For, in the latter case, the maker rilrawee nm.st pay the full sum mentioned in the latter place, and therefore he pays the current exclianj,e. In both ca.ses, the spi'iise oi' securing money in the latter place falls on the maker (T drawee, at'.d the only difference between the two cases is that ill the former case the maki'r or drawee is only obliued to pay llio t!xp>!nse of transferrinu; it to another place, instead of hav- '^'^ "" ill'.' to actually make payment in the latter place. It would seem ^^ that whatever uncertainty as to the amount to be paid did exist "'^"^ ill such a bill or not^', it would not be sufficient to affect the Kite ■figiifj. ^ij- ^^Ij^, arties to any material deeree. " 16 cent ccivi , to) 1. I ustiei wlltTt iig t'oi iroiiti' lidU'i ircd I' in of hat li iiii|i 1 l.ib. d^^'Uli'D of til pica ■d, "V •ut it I ido 1) he d juiul exist II ■ it hi iiiciri )ai'it| liii 1 tJKl •iidcre ' moiii' laii: §3. 16 TlIK l^ILLS OF ExciLVNdK AcT, 1890. J^ 3. Tlio Eiiiilif li jurisprudftioi^ hcciiis to ^ upport this view, and at pajj;i! 2'A, Cliiilmcrs (jiiotcs with appnthatioii a case wliero a IjIH, '' p;iyabU! in Paris or liondon, at the ehoiee of the holder, accord- inj; t(» the course of cxclianm' ujion I'aris, " was deehired valid. Tcdlard r. Ilcrri.'s, 3 M. 6i V. '.Hi'). See also 1 Rand(dpii. J^ 200. The Aet has settled the point in favor of the valiility of tlic instriinient. Section 1) says that " the sum payahlt! by a hill i.i a sum certain within tiie meaninr European Codes, a bill of exchange must be payable in a place diffrent to that in which it is made, or that what is t 'rmtnl A/, remise de />/(ice en pin cc ha strictly observed. Such was undoubtedly the old law of Franco, which prevailed for a long time in the Province of Quebec. The law of England is difl'erent, and in all countries goveriiiil by that law, a bill drawn and payable in the same place is viilii From tinje immemorial before the promulgation of the QuebcCj Code, our merchants had adopted and followed the Englis custom, which was sanctioned by the Civil Code, la nmi> de place en place not being mentioned as an essential to a bil of exchange. (\ C, Art. 2280. The only practical distinction between a bill payable at the place where drawn and a bil pjiyable at another is, that the bank discounting it may charp' in addition to the usual discount, an extra commission specilic in sections 82 and 88 of the Hank Act. Lnngunge. A bill may be drawn in any language. In New Zealuml, where the English Act was adopted in 1883, section 90 provide that a bill signed by an aboriginal native, not in his own hiii " Rouiisc do lilacc." .nage called " >' lire b(! thereon ;"ul duly interprc Special provisi iiiopey, or to be i the new Hanking iiaiuent of Caniid Viit., c. 31, Su( |i;iiik is not liowe' •;ime incurs a pei The intention >iime(l, if it is MKi iiijlars, and is p;i_^ ss than thirty di r a note, or hill, liiite creditor, j)r(i ras a substitute A chartered bai ;iiid intended for ( 'iim less than live ftive dollars, and :u any time shall ) capital of the t tus in circulatioi A bank shall not I advance or loan Hall be recoverabl The payment of Idiarge upon the a Action 53. flection 55 says: a> are necessary tc fUry part of Cam itiiuled for circu all establish a^e ii'itis at the cities c T'lronto, Winnipeg 'i'', from time to ti Section 57: "'J Ill at I bill, cord- Villiil. : 2011, >t' tlio Mil is I it is iti' of taiiii'ij u\ the action 1 tho nyr to I'lit on . Si'i' 88. bill of lichit ce be aiico, vcrnt'il vali'l, iicbcc .n.-lis! rrnii' n lii u'tion a lariro irc'iliii a hint' villi' ■11 Ian FoKM AND InTEKI'KETATION. :nai;(* calk'tl " ^loori, " is null and voiil as ii'jainst him, uiiIchs § 3. 'lull' b(i tluTcdii a traii,«latioii (tt'tlit- in.'^fruint'iit in tliiit laii^ua;;'c, :m(1 'liily iutirprctrd. ■>|irt'ial provisions rosprctinLi; noti'S intontlcd to rcnlatc asHmk notesi. mop 'V, or to bo ii.si'd us a substitute formoncy, will bo round in _ili(' iH'W Mankind; Act passod durinii; the last session of the J'ar- iauu'iit of Canada, to conio into force on the 1st July, 1^91, ").'{ Vict., c. ii\. Such noti! issuo«um less than twenty iiijliirs, and is jiayable to l)earer, at si<^ht or on di'iuand, or at Issthan thirty days, llowi'ver, a che(iue on a chartered bank, r a note, or bill, may be delivered by tiie maker to his iinme- liate creditor, jirovided it is not designed to circulate as money ras a substitute for money. Section (»((, jiar. 2. A chartered bank may issue notes payable to bearer on demand aiul intendeil for circulation; but such notes shall not be for a nm less than five dollars, or for any sum which is not a multiple flive dollars, and the total amount of such notes in circulation it any time shall not ''.\(;eed the amount of the unimjtaired ))aid (Capital of the bank. Section 51. The toial aniniint of bank tes in circulation at the present time is ^.■•2,71Sj;{(»;>. A bank shall not pledi;e, assign, or hypotliecate its notes ; and I advance or loan made on the security of the notes of a bank >L;ill be recoverable from the bank or its assets. Section 52. The payment of liank notes in circulation constitutes the first aruo upon the as.sets of the bank in ca,sc of its insolvency. Sition ihl. Stetion 55 says: — "The bank shall make such arrangements :> are necessary to ensure the circulation at par, in any and vtry part of Canada, (d' all notes issued or re-issued by it and iitfiided for circulation ; and towards this purpose the bank 'iiall establish agencies for the redemption and payment of its !i"t;s at the cities of Halifax, St. John, ( 'harlottetown, Montreal, Tonmto, Winnipeg and Victoria, and at sucli other jilaces as iv, from time to time, designated by the Treasury Board. " Section 57 : — " The bank, when making any payment, shall, 17 18 >i 4. Ji(iiiiiiiiiiii ■II W Inl 111 1 a I'l tVirciLi-i liill.-'. If i.ff n"tL'il ;i> Inn iifll. If.lillVrcnt )i!ir'ii'- to liil iir<' ! ln' .<1I1I10 ]H'l>Ol.. (>|ition fif liiiMi'i' in eii.* .«ju'i'ilioil. The r.ii.i-s OF ExciiANued l>y the (jovernmeiit oi' (':inada, under '" An Ai Eespeetinf;- J)ouiinion Notes," Can. !iev. Stat., e. 111. 'i'h redeiiiption of these notes is i:uaranteed hy a deposit made wit the Minister of Fi.anee, in unld and Canada securities i:u;ii' toed by the (Jnvernment nf (he I nited Kiiiiidom, e(|ual to m than twenty-ti .' > percent, of tiie amount. At least, tiftiei cvnt. of this percentage must he held in liitld. The remainiiii 8eventy-tive per cent, are .secured hy J)ominion delx-ntiires, is>u hy authority of Parliament. These notes coustituti' legal teiulct So far the iVmiinion Cioverniiient have issued notes tiir one, t\ and four doUais, and also fur tifty, one iiandred. and one ilm sand dollar;' and also fractional notes for li.'iets. and 5(tct-. enm nioidy calleil " shinjihvster.s. " The total issui- ontsiandiim i si.'j.T.'UJ.rx;;. 4. All inland bill is a bill wiiicli is or on lli tat'C of it pnrpovts to l)e, (a) l)otli drawp. iiiul [),iv able within Canada, or (//) drawn within Canad; upon .some person resident therein. Any otlu' bill is a ibreign bill. 0) (^2) Unless tiie contrary appears on the lac*' n the bill, the holder may treat it as an inhiiid liil ♦">. A bill niav be tlrawn i)a\able to. or to tli order oi', the drawer oi' it may be drawn payaM to, or to the order of, the drawee ; (2) Whore in a bill drawer and drawee are lli same person, or where the drawee is a (ictitioii person or u person not having capacity to contract the holder may treat the iiistriiinent. at his option See section 71. either tis a b note. See section s. 1. Wiien the -ai ■irauer and ili'aivet iruiiMiit i.» iKii a I liie two I'apn ' i--. Williams, '1> .\\i\. ■]M: Kiini- r. lla- !, 17."); Ximes, 2;! ii!i ciled in IJcilarri 2 .\ linn ciMcit Li'iilnii liouM' lira IMI it as ii note n it' it lie iioi p Liliiloii lioii-e i- i FaiivlnM/'. (»,i:deii ', t'., :! A pp. Ca.-^. .: A.dnin-a liill ■'■-'111. 'fiie hclije i|iiiive preseiitnu Niirk. 2-J:! 4. Tlie direeldi's ( ilie I'oiiipany, ad ii'^ a ip't" liv the ( ■., :i c.l!. .Vt(. '>. Hills drawn liv li ■fi'. Ill' (III I nc imi'i "iliT, as 1 111 Is ur IK ;i. (»• The dra^ tidicated in a (2; A bill n niwees, whet 11 oi'dcr ad Ire ivo. or to tw(j ut a bill ofe.K ■'>' ' -■' 'linns .'!, ') id 1. Iii-triitneiit in t Mtr- an ueeeptaiii'e :iii aeeeptiir. He vii. Ills, '.) Kxeh. I I'll' ii'^. 1 I'linipii. ". cV U.C.C. jl' uiiilni \i, tWii All A,' . 'i'h dt' wit Li'uiiran I 'I'll pL'l iiainiii! ti'iulfl nit', t\v (_' tin 111 t-. I'l'iii Kliiii:' )il III iiu;i(l;l otlu' .1 l)il to til LVilij! FOKM AND iNTKUriJETATION. eitlior iis a l)ill of exchange or as a promissory note, Sff section S. I, Wiicii llif -ainc pcr-iin n'prt'«('iits iwo j)!U'ti('< to ii iiill, r. //..iis ;;iu('r and ilraui'c, iliawci' aiiu iiavcc, ur drawn' and payi'c, ihc m-- riiiiM'Mt i> mil a hill of cxchanjic until it. is >iLrn('d and ili'livercd in llii' two capa ■ '('.-. ll\V(irlh r. Hunter, Id H. iV (". ll!i; Wiile c. \Villiinns,-2> Am. U.'JIU; 11. r. I!a.llelt,'2 M. cV K.i'.CL'; I l!aml..l|.h 11; I'lnni- /•. llas. 1st Mav, ls(l!t. S. Isiilt, .i:,'); Nimes, 2:ird June, i^i'J!*; T.Mil..u. immaterial. MiHer r. Thomson, .'> .Nl. A: (Ir. .'iTti; Fiiinhild c Oi^deii-hiirLr itailwav Co., l.'i X.V . .'>.'!7 ; Willaiis r. A\ ers I v., ■:, App. Vil^. l;;:!; Uoueii,'2(»th Au-u.M, is If), ,1. I'. ISlC, p.".||!l. :i. A. ilniw- a liill on l>. imd ne^idiinies it away; 1!. is n lirtitioiis r-cin. 'I'he holder may treat the hill a- a note made hy A. lie neeij ii|irove pit seiitment or give notice ot'tlishoiitii'. Smith r. lUllamv, iSliirk. 'li:\ 4. The ilireetors of a Joint stoclc company tjraw a hill in the iiiiiiiO liie company, iiddre-^seil '* 'J'o the ("a>liier."' The holder may treat ;i- a not" hv the coiiipanv. Allen r. Sen, Fire and liife Assurance ..,:i ('.!!. .V: I. 19 § e. .'i. Hills ilrawii hy an iii^i'iit or otHcer of a corpoi'iition on another li'iT.oi' tni the corporation itself, may he treated, at I he opt ion ip| the .Kr, as lulls or notes. 'J'aylur c. N'ewman, 77 Mo. 'I'u ; I llandoiph, (»• The (IrtiAvee must he named or otli'TW ise Dmwoo t.. iie dicated in ;i hill with rctisonahle eei'tainty ; "•""''• (2; A hill ma}' l)e iuhlre.sseil to two or niore ||-,|„,r,. .,,,,. Iiiwvces, whether they are partners or not ; hut'"" "'•'""»»•'• iioith'r ad Iressed lo two drawees in the alternti- ive. or to two or more diawees in succession, is -e till itid tl'iU't ptioii A a hill of exchaui'e. ^•r .-'ft inns '.'}, 5 (lild iil. 1. Instrument in the fiinn of a hill, hut addressed tti no laie, B, 'ill'- an acceptaiuH' tlu'i'oon Thi- is init a lull, and 15. is not liahle ■iiii acceptor, lie is perhap- liiihle a- the maker of a note. I'eltt r. viii l,|s, il \']\vh. H(l. and 11 I'^xch. lis, \]\. Ch.; Siiult leworth /•. •|ilirn-, 1 ("aniph 4(17 ; .Vllan r. .Mawson, I ihiil. 1 i," ; it. r. Hunter. >". A R-CCal' See su(ira section ;{, nil. II, 10, and ilJ. Inluij 20 § 7. Tin; Bills of Exchange Act, 1890. 2. [ri>tnuii(iit ill the form of a bill jiayable to drawer's order, nf L'oiilaiiiiiii: tlic naiiif of a draut'i', but t'.\j)resscil to be |iav„ "at No. 1 I'nion Strt'i't, LoihloM." 1}., wlio live- tbrrc, acceiii- it. T is a bill, and H. is liabio as ari'ejttor. Ibid. ; Edi> r. Hurv, (i 15 C. -i;;:!. Sw supra, n. 1. ;!. Jii'-triiiuciit in tln' form of a bill. Wlit'rc tlic address toll, drawee should In', are the words " ((l to IJ. iV Co. Gray r. Mdner, <^ Tamil. 731). 4. A bill addre-seil to" Steamer norrance and owners "lieldsiitl cieiil. .Mabama ("oal Mining Co. r. IJralnard, .W) Ala., 17*!. o. All aeceiilanee by a tirm in its right name of a bill drawn uii in a w loiiir name is good. Lloyd r. Asliby, 2 IL tit A. -.'L (1. A bill directeil to A., " or in his abseiiee to H., *' and accciiii* j , by A., is valid. 1 Kandolph 202. Ulherwi.-e under section (I, siii,-,-J "^ "''^'^'r to giVi; lA Q B.:_|7r.; w ye section 7, sub-- ."). A bill payable -vdiil for uneerlaii r N'iish,2'JL. J. t (i. E.Ktrinsic ev i[ii-iiiinied, or wliei (I, H. 21. Kx Cli .liiiri'ell, 2 .Slarlv 7. Thii-, a note :••.!. S. .V Co.," niileiico that tliev I; :• Ca. S.C.K: 1 lion Cortniiity r"- quiri'J a.< lo If ]i:iy,ili|i' to two iir iiioro jiiiyt'i's, iir to liiililer of oflko. If piyco is 110li-c.\i;-tiii;'. '' "'■ ''"■ '^'•' %LMit* fictitious J) T. Whoro ji bill is not p.avable to bearer, i],*""'"' ' '^ •' '•" ^ " , . l('"Uiitru's imnish ; payee niiist be named or otherwise indicate therein with reasona'ole certainty ; (2j A bill may be made pay a .» to two or iiior l)ayees jointly, or it may be mtide payabh? in altei'iiiitive to one ol two. or one or some of seve ral p;iyees. A bill nniy also j)e made payable t the holder of an olliee ibr the time beinu"; (.')) Where the ])a\ ee is a (ictitions or non e.\i^ ing person, the bill may be treated as jjiiyab to bearer. See >eelioii 20. 1. The faet that a note is payidile to a (ietitioiis jiorsori do<- i render it negoliable any more than if the payee were a real pei-i Williams c' \o.\on, L'.'C, log. 15. 2:)',t. liy" seetion 7, .-i;b. .;, ,: jiayabli' lo bearer. 2. Held, that by " lietilioiis " is meant "etitioiis to the KiimuN. of the jiail\' Min;:ht lo be eharired upon a bill. \'agl;ano r. l!;iiik England, 2;i g. li.l». 2b'l ; .")S'L. .1. Q. 15. :\;r,. .'{. A promissory note made lo C. ami I), jointly was indoi-ol C. alone to J), and by 1>. lo A. Held, ihal 15. wa< liabb a- ii. ii ; i i.;i eouldnot set upasu det'ence to an action by .A. that D. had iioi j.i in the indorsement. Tlinrgar i\ Clarke, 2 Kerr .'570. Sf:nil>l". — That A. could not liave maintained an action again-i maker of ihe nolo witlioiii proving that C. had authority to indiTH, 4. A promise payable " to Klia-^ S. l{eed or John Eraser, hi- •: liian." was held not to be a note. Heed r. l\eed, C ("., II Q. 15. 2ii; iilsoljlaiikcnhagcn c- Uliiiideil, 2 B. A Aid. 417 ; Holmes f. Jacijiu- V Djiiy lie a oriiiic u iavaliilati; the bill i Bi'thirridc, p. ITS' .titious payee w lit the hit T cases lU'iits as far as jk k'ted ill .Millet z,'. C ni. Ml')!); ant J.Q. \i. :\:u issii ! • iTiilised, when Eicliiiid, bills bca til'.' amount ofiieai ■iii'l 7 id" the Act, f 10 validity oT tin (I'urse ; their jirest' i" tar as lie is com 'I'llislioiior ill cert; \ liill payable to a i> payable to bi-aiv aceonliiig to Clia [«'i'Iia]»s new law. The signature o be (list- iguislied IV tiiiiii the forged s "IjjiTtion in the m ptlVci it. 'Tl, ■« to I - is a hi fill sntli WIl Ull SuIj-n- r, tl iciiK'i jiior ill t " sevel ble t exi- i\ abl . .;, .1 liiwllil l>:iiik : -ri.:i! i.t j.'i;.' liii-l ll liliiM-. lis i;i: 2ii; line-. Form and Inteupretation. 1. 1 Q 1?. ;]7(i ; Watson v. Evuns, :V2 L. J. Ex. i;5T i 1 Raiidulpli 2.'!"). ^ 7. 21 Srt' scriid!! 7, siili-seot. 2. "). A liili |>iiyulile to tlie " troii-urcr f'orllie tiiiio lioitiii '" nt' a ;i''ty •, ti H. ; j.viiiil i'(ir unci'i'taiutv. Cowio c Stcrliiiu', (> K. A B. ll.'!.'!, Iv\. Cli.; Yuli'S i X;ish, 2'J L. J. C. 'P. :U)(;. UlluTwisi' l.y ~fctii.ii 7, .-uh-seot. 2. (i. E.Ktriiisic cvicltMuti' is a'lims.-iiik' to iiictitifv the payi'c when 'iihiiaiiioil, oi' wlu'ii iloscribc'd iiv iIcsct' ptioii oiilv. Snares r. (ihii, II, 1^. 21. Ex Ch.; II. -lines r." .huMiues, I.. II., 'l Q. 15. ;{7i; ; Wi'llis r. liairett, 2 SlarU 21» ; Jaeul.s r. IJeiis.-n, ;i!t Maine l;!2. Sect. .■{2. . Thus, a note niaije |)ayal>le i-y mistaUe to ".I.S.it Son," insteail .1. S. iV: Co.," may lie sneil npon iiy .1. S. A' Co., liiere iiein^ ■nee that th(>v were the pavees. Souther o. Wallace, 21) X.S.It. W; :> Ca. S.C.U." 210; 12 L. N. II C. 'Ml 111 order to i^'ivo a fietitious cvilit, re: far as lit; is concerned, than to dispense with protest and notice 'ifilisiionor in certain cases nuntioned in .sections 41, 4() and ')<•. A liill payable to .i fictitituis or non existing person may be treated i'^ payable to bearer. Section 7, sub sect. ?>. Tiiis sub-section, lueording to Chalmers, p. 11), was added in coiumittoo and i*^ lH'iiia])s lu'w law. Tlie signature of a real '(lersoii using a fictitious name must 1)1' (list" iguished from the signature of a fictitious person, and :e!ike -Jii.p; Clialiiiers 21. ('liate.:i'l liy section s, siii) (;!i. ; -cet. .'!,'i. 2. Het'ore till' .\et, the wor^l- "or orJer." " m lieiiiei-," nr tlii'ir (•<|iiiviileiil. were e->eiitial to iieLrotiiihilily ('oi|Mpriitioii ntthe Touii- shin ot Toronto /• .Meitride, fC. 2!M,>. |{. l.",; Iliiyniondr .Mi.Mleinii. 2:t I'eiiii. St r)2'.>; Whvte /• llrviinaii, ;!l id- 1 I.'! ; Tniidl Siale- r While. 2 Hill .".'.•: i'liliihy r. \VeMley.2 Uilr.'. N.C. 2.-.I. Sum p.ivMi.ie. !>. The sum payable by a bill is a sum certain within the meaning of this Act, altiiouiih it i^ re(p;iri'd to be paid : — 0)itii>n (if I>:Oee. (a) With (A) ]]y si ('■) ny s tli.M up,)U (I the whnh' s ('/) Ace M- cliiUige or ; iiscertaineil (J) AVhen words and dvpancy l)e tlu' words is (:;) Wher with intcre? |'r()\ ides, in ;;ll(l if the hi Si'i' -ei't ioli ;i. Mil yV/i .Sinn inii/iili 1. A hill pavul Kr.iiiJi U.K. /•. I I' r. .;:.2; Somhei ^ C. U. .V.IS; i',,1 L 11.. 1 ('. IV :ii '.'Vcnilled. ■1. I':iyahl.' '-in ' icviile II. i!es ciiri ;•'■ li'.l -iilli.'leiit. '.'.' ii 'te 1- |i;iy;ili ^^lillare r. .Solltlirl' ;; Where hank .'"M or silver. :in< F'l'niiiry, IsT.'i. I>. Mar-eiiles, 7th No' !:'•!: Ilej. 2<'. L'friii. I ;. ii II ; see ruiil I. When a lull '"■' es <|iie mil ■■!'< : lilfsclllielil f. *K;iiii.'r, 272, and Till J'lilli.. ini/ i t'l'liiin : — Form and iNrioui'UET.vTioN. 23 ('( With interest; ^ 9- {!>) By stilted instalineiits ; (r) ]]\ stilted iiisiidiiKMits, with a ])rovisi()n tli.M lip.)!! det'jiult of p.'wnieiit of any iiistalnieiit tlir wliole sliall become due; ('/) Ace H'diiig to an indicated rate ol' ex- cliaiiv*' or aecordinji' to a rate of cxchapgc to be a^certaincil as directed by the bill; (J) Wlien the snin |tayablc is expressed in Kis.r.'i.mK-y woi'ds and al"^o in liLiures, aiid thei-e is a dis n'.;,,,,'.!, .',,„i civpnncy between the t wo. the sum denoted by '^'"^ '' llic WiU'ds is theamoini^ payabh'; (:l) Where a l)ill is expn*ssed to be payabh* lat.rest. wiih intert'st, nnless tlie instrnment otherwise jii'e\ides. interest rnns Irom the (Late ol'tht' bill, ;in(l il' the bill is nndated. from the issne thereoi". Scr ^ecliiili .'i, nil. .17 In I'J. Scr ;i|mi lioti'- lll|.|cl' -ri'dnli '!, |i. 1 I. T." ■■^inii jKii/dlili, iril/i iitlmsl. In/ iiis/ii/nn ii/s, ilr, 1. .\ liill |);iviilili' ill " I . S. cmi-cin-v " i- miIhI. Saint StcplicM l!!;ii;rli IM{. /•. Mliiik. 2 Ihiii. l.;'.l: (iivcrin \ r Fnlrv. I'. ('.. •J2 I' !'. :;.".j; S.Millicr r. Wallurr. 2 \l aii.l ( V T. I- ; 1 C I ,. T. .".liii ; l! Ca. ^(•. 11. .V.i-^; !'Mllai-.I <•. Ilarn-. :; I!. A- IV .: l.'. ; 1 l.-.lilirl.| /•, Sniitli, 1. II,. 1 (". I'. .".lU. Thu^ M,.|li.- r. Weill . C. C., :!(! <^ M. 2.!, ua-i '\( I'llllcij. 2. I'avalilc "ill rlll'I'iiirN " liii'.lli- " !f'j.ll riiri'i'iiry " ail'l I'lih : ici.itc note- riiriTiii ai liif liiiic of ijic i«, 12'' ; .I'lnipc I'eliier, Is An. IM: \Uj. 2t; irerni. An. lit, S 7.2, Hull ; (nllH-rl -nr Sirey, ('. C, .\rl. ;i:;. ii.'.l; s.'e .■ulilia, Me(i 1 C. S||ii|< , ."i I lll.-|(IS. I \\ hen a I'lll i-^ |>a\alilc in li'ici-j;!! enri'eiiry . il- \aliii' mi ihe ilav It. (is (llic niii»l l:<>\ cin. Ii"iic|iie|ie r. Ovrti.i.mii, I.. i{ , 111 (i.\i. yi:<: IhrselilieM c. Sinitli. I,.K.. 1 C.I'. ;{.-.:!; seeal-n Da Ccsta r. Cole, ."•kiMii.T, '2T2, aii'l .•Jeeliiiii ")7, -iili-«ei'. (/»). aiil -iri. 71. -nl' (lii|iim'iil df ;:ii(iil- viiliie JL.'2,0(.HI, cuMsi^.MR'd l)V nic to vmi. "' Jdiu's r. Siinp-'dn, 2 15. it C. :!1,S. 7. Or an unK'i' td jiay C. " tlii' lialancc duo Id nu- f'di- Imililing the BapUst C'dlli'La' Cliiipi'l." Crowfudt i\ Giirncy, !» Uinn'. :!72, Oraprnini-c to pay C. " X'KK) and lluMli'MiandsdfllioSick Club." Bdltun r. Uii-dak', 1 15. k Ad. (il!) 1). Or " i'ldO, and all tinos accurdin'' td riili'." Avrcv r. Fcarnsiiit- 4 M. A; W. Kis. " ' 10. Hill fdr ilOO payalilc liy " instalnii ,ts," nut spccit'yinjr date oranidniits. Mdllati c.Kdward^, C. A: M. ;>7 I. 11. Mill fur t'KKI payaiilc *' liy ten cipiai instaltncnts pavaMc, ct all insialniunts lu ct-'a.-c on he 'dial h ut' X." Wurlcv i\ \\ irrisun, ( >ii r. A. A: K. (lill). T/n- Jiil/iiiriiiij arc rulid : — 12. i?ill fdr XlOd. paval.lc " with law rulinlerc'st." W'urinini!! Kiuly 2;; L. .1. 0. |{. 17. 1."!. liill t'dr X'KMI, payalilc liy lud ('(pial inst;dni( iits due l-i January and 1st July. CarlitdU r. Ki'Ui'ally, 12 .M. k W. l.'!!!. II. Hill f'(jr llod, dr 1,(100 t'rancs, payable at "exchange us per lii-t inildr.-emcnl."' ('Iialiner<, 211. l."». Hill fdr L'lOO, '' ]iayalil(' in Pari- dr I-dnddn.at the elidico if the lidlder, aeedrdini:' td ihe edui'~e df e.\( haiiiie n|idn I'aris." llirscL field /•. Smith, L. i;.'. 1 (". 1'. ;!l(l. l(i. A iidle payalile liy instulments isyet nei.Mtiahle. Days of graO'' ai'c alldwed nn eaeli instalment Orridge r. Sherhnrne, 11 M. A W. :{71i Carlun v. Keneuly, 12 ilii.l. li'.i); Oaskin i\ l)a\is, 2 Farid V. 2"Jl. 17. A hill is draw n, " Pay to the drtlerof (". twdhundi'ed pdunds." In the margin is snpi.'rscrlh(Ml l.'2oO. This i> a hill fdr .t'200 only. feanndersdii v- Pipers, .") Hin.'. X. (". I IS. Hill oil sutlieient stamp fdi'^diic hundred ponnds," w ith i' I II in tiie maririii. The sum payahle is fldO. Gai lard r. I.fw is, 10 Q. H. D. .•JO, :{4, :i.j. ID. A hill i- drawn," Pav (d thedi'derdf(\ one hundred." Iiitlie margin is inserted i. 100. 'This is a hill fdriJlOO. It. l\ Ellidt, 1 L.'ueh, ('. (\ 17.-.. 20. Hill in the fcirin, " Pay td my order twenty-live pound-, ten sliilliie. .'i C. iV^P. 4S8. This is sullirient as a hill tor 1'2"). lUs. Phipps v. Tun lUT, 21 . The wdrd '' ddllars " iiiiiy lie supplied hy pai'dl if it lie clear tliat such wa- rill' wdiil intended, and that it was omitted hv mistake. H.urdsley r Hill, (il III. W'yh Ti. If a hill ran simply," Pay to my order t' ,'' evidence woiiMbe inadmissihle to show the siiin for which it was intended ic. lie dr.iwn. Aorwicli X. C.4;!l. Hank r. Ilvde, l;{ Con. 271); Sannd er.-on r. Pi| •r, J) liiii Hin: 2:{. But in the latter case the hiank mav he HUcd. Seo section 20; Collisr. Kinniett,l II.Hl.;ii;{; Russell /•'. l.amrsiair. 2 Dong.")!!; Mulloy c. Delves, 7 Hing, N. C. 42s ; 1 Uandul[)h l.'iGlIi'J. 21 Hill for L". iTiie -^11111 payahh' R 2'). 15. make Kvciii' alter his dea '(■. (iieeliwell, Kt ,Str also lte(p, otl y,. hill payuhl Ithfliist day dfiht 10. A hi {n) Wliic (k'liiiuul, or {!>) Ill V [expressed ; (2) Wliei lit is overdue, so accepts, or IdaMiied a ))il TId' I'lilloiriiiij II I. •• When den 1 '• When cal iBi)\viMan (.', AIcClu :i. '• On recjiie-: 1. '• .\t Mle.h ti [.''iMiit iiietz, l.'> W'i .1. •• i'ayuhle - La llueque I'. Alldl li. Pavahle dii fFIa. 117.' 7. Iiidorsemeni >f'\t'r;il States td 'ii'inanii, and I'ea lil |iie-ente(l for i ['iiii\plaine etc,, is(.)ii, 11 lit I 111 r. lie l-l lir-cli \- w. •\ 294. ind.'^." I (iiily. £10 in 15. D. Tn tlie lint, 1 ', ten iiiiifr, lir tliat .ayalik' diiriri'j; a j^ivfii moiitii will drau- iiilcrc) III whicli no time lor payment is expressed ; (2' Wiiere a bill is accepted or indorsed when ■\<''''^i'''"'c it is overdue, it shall, as rci^-ards the acceptor who "^'"''^'"i-'- ,s) accepts, or an iudorser who so indorses it, be (k'eiiicd a bill ])ayable on demand. Tlir J'lil/iiiriiii/ /nirr Ix^cn liehl to be puyidtle on (Icmand : — 1. '• Wlifii lomaudcd." Kiii^'lmry r. I5uth'r, 1 Vt. !.>"<. 1 '• When caili'd for." ISildcihaidv c. i5urliu;^aiiK', 27 III ). Bowman r. McChcsiwy, 22 (iratt, (lOl). :!. '• On ri'(iuc~t." Ilowland i;. Ivlmoiids, 24 M. V. ."JOT. I. " .\t siii-.h tinu~ as A. may iircd for her suji|port. " Curhctt c- .'^iMiimicl/,, 1.') Wi.«. 187. .■>. '• I'ayalile on demand within day and year after date." La llnri|iU' c Andre, 2 L. C. li.;!;)5. (i. Payable on drmiuid the lir.-^t of .lauuar • it. 15rett r. Mimx, Fla. 117.' 7. Iiidor.^emciit after maturity has hcfii >., Id by the eonrts of .•PMT.'il States to he ei|uivaleiit to drawiiiL' a new hill payable on 'Itinand, and rt'a-onalile ililiiretiei' should be ixereised to lia\e il intseiited for oaymeiit. An intei'xal of two and a half montiis 'I'll \|ilaiiiei| disehaiLLi's the indorser. Lijrht i\ Kinirsbur\', .")0 .M.I. ;;.;!; Hishop r.' De.vter, 2 Conn. I ill ; Moody /•'. Mae'k, [W .\|.i. 21(1; IJerry r. Rohinsc.n, It Johns. 121 ; ' McKiimey /'. CrMufunl, S Serjr. it R. ■■>'>1 ; 15emis t'. MeKen/ie, l.'! Fla. •■■x'l r.askerville r. Harris. II Miss. 'y\\7); l)wi;j;lit r. Fmersuu, :! X, II. l.V,»; Kcfert (;. i)es Cou Iowa ISS ; (1; In FiiLiIand a bill •• at siL'ht. "is payalile on demand, sect. 10. llie Canadian Parliament would not ut'i;ej)l the change. 2G i^ll. I'lill llMVillllt' lit 11 luliire tiiuu. As to ("(intiii- genek'!'. The Bills of Exciiangi: Act, isno. McKcwcr r. Kirlhind, .">.". I(i\\!i:!l~:; Suiii't/ r. U^ I •! I, I.'! I\;imv o.'iO; lifiivilt r. I'litiiiuii, I S.in.lr. \W ; I'lillcr^dii /•. T.i.M. I ~< \'v\\u St. I-I) ; Hill c. Miii'tiii, rj .Mailiii 177. Sir >i'cli(iiis III. siii'l -1."j. ■ !• A hill is pnviiltlc nt ii (IctiTiniiiMlilc riitiiie tiiiii', within ihc luea'.iiii.u' of this Act, which is exprt'ssod to ])e ])uyiihl(' : — {a) At ji lixcd period id'tcr d;) On or Mt :i lixcd period iiltor t' ; ocriirreiiOf ol ji spei'ilied o\ cut wliioh is certain to happLMi. though the time of happening is nncerttiin ; (2) An instrnnient exi)i-e • ed to he i);iyid)h-' on a contingency is pot ;» hill, and the iia[)[)eniiig ut the event does not cure the delect. Sci' spitidii ,'!. Thi I'll/'iii'liiij jiriiiiii^ti a iirr p ri/i(li/i .-ic r. llclfunl. (is 111. •j'.Ml. :;. ••On nr hcluiv" siicli a .lav. Ilatc^ r. L.'clair. I!) \'l. ■J'J'.I. I. '•On nr 111 lure ilir'ci' vtar.- t'ldm ilalc." ildlnicr r. Krnliik. .I'l M,rli ;;7i. ."i. Oi| it I lav naiucil " 111- liifurc. it'niailc lint iifilif -ale ■' ola niarliii,. l']rn-i r. .Siccknian, 71 I'liin I^i . !."«. II Twii MumilisaClc!' II. .M. -lii|i "Su alliiu " i> paid nil'. < 'nlchaii i: CiM-ki, Will-, ;i!i:t; <"arliH r. Fan<:.iurl, .". T. R. I-J. 7. On ilir Nt .lannaiy, w lien X. cnnics uf a_'c. (Id-- r- Xtl-iii, 1 ISiirr. lilili. Sic .-I'ctiiiii ii, n. 2sti. S One year at'tiT nntici'. ClaUnn r. (!ii-lin'_', •'> l>. AC ••*'<*^. !l. One yrar ai'tcr my il«;illi. |{Mirry r. (Jnrnwcll. lO A. iV V. 'I'll Tun 1 1. 1 Tuuliin-'', lilli .Ian nary, 1h;{7,".I. 1'. :>'> , 2. Il.'>. 1(1. Two inlai:kniaii r. Lrlini.in, .'>.") .\iu>c. 11. ■')" 12. W'lien (•■iiiveiiient. WnrUs r. ller.-htv, .'!.") InwalJlO ; Kiiiciliilr lii,i;nin-, 1 llilili. :!'.ii;. 'J'/ic /'ii/l,,iriiii/ (ir< '■niiilllliiii'il 'till} iiirnliil : — l;i. WImii I marry X. I'i;ir-un r. (Jurret, 4 M.iii. '212. II. Wlirn I am in Lrnml eirriim-tam;!'.-;. lv\ parte 'J'outel!, I \ v: ;>72: S.ilinas r- Wri.L'lil, H Tex. 572. l.V Ti i'-tv i|av.« after tlie arriviil nl' >liip " SwaHow " at CaKiii'a. Piiliuer r. r'rall/2 IJiny;. IS;"). It;. Xiiirtv ilavs after .-^iglit, or wlien reali/.eil. Ale.Nainlei' (■ Thuma-, Hi' Q. li. ^ii^. 17. Ninety days ii ft;.\ ilic .■-elilili;.' (if 1- I'avalile nn i:i;.Mii->. i.">i. lit. I'ayaiile nn ! 'Jil, •' Ti> lie paid i' i> iinl til lie paid. 21. •• When in fi J'J. ".V.x Kiiun II- \V:::'.':ii'.'-' '"■ N'anL'li 'J. '• When the liMrj:ia.2l (!a. 2S7 '1\ One year ai ;.< Ill, l.-t .lime, l> 12. Where i.xrd period ;k u' iicceptiincc il'ti'r siiiiit i.' herein the tr lu'l.il! .shall I Provided th aitli and hy ii II t-'very case e liill suhsc( mlder in due ln'rchy, hut t lu' (l;ite so in Sn x,,7;„/,,v i;',, 20 I5*« WIkm'C iiilorsenient o iiiless the con lie true dat^ iidtjrsenient, i ") Iliilcliiiis c. (Joliui iViii, lit lire icli is •C'llCl' • Ill a ILT ul iiiii' :— liilli r. Iv i2-l ■) II. A- iili-iill. I. .h. ciiiilc. Ilia, lid' r. FoKM AND iNTEUrUETATlON. 27 i^ 12. 17. N'iintv iliivs lifter tlicilissiilniidii i4'iiiirtn('rslii|i licfwooii C. niiil X. [i:nl llic Ml'tliiiji of till' 1 k>. Siicktit /•. I'silmcr, 2") N. V. IT".). 1- I'avalilc (III lU'iiiiiinl ur in ilii'cc vfar-s. Maluiii^v r. Fitzpiitriok, ;;:!.\Ia^.<. l.')!. 111. I'ayalili' mi a ilay cci'taiii ''or at any titiic liifurc iiiatiii'ity." 2il, " To lie paiil as waiilcii \\>v Ik rvi||i|„iit ; ainl it'iio part is waiitcil, J! i< not til lie |)aiil." (innlmi r. Jiiiinllctt, 'JS X. II. I,"."). ::i. •• Wiicii ill fiiiMls." (iiik'spic V. Matin r. 10 I'din. St. 2S. '.'.'. ".Vs Hiinn a~ I !iiii ill pns^(.^si. 4s, 'J, ;!;;;!. !-• WluM'e it l>ill oxproHst'd to be paA'ablc at a oiai-^-;'''" "f ixed period al'tor date is issued undated, or where pm.viiIjIl- afiur lie aceeptiiiice of a hill [);u';d)h' at a fixed period iIUt siuht is iiii(hited, any hohler may insert lu'ivin the true di>te of issue or aeee[)tance, and liL' liil! shall he [tayahlo aeeoi'dingly ; Piovidcd tlnit (o) where the holder in jrood a< to wron;; iiitli and hy mistake inserts a wrongdate, and (/>) u'vci-y eiise where a \* rong date is inserted, if II' Kill suhsetiuently comes into the Inindsoi'a itiltlcr in due eourse, the l)ill shall not he voi(U'd it'rchy, hut shall operate iind he payable as if K' (late so inserted had been the true date. *•*• Where a l)ill or an aeceptaneo, or any n.iic /-r^/»,7 ,1 , ,.,,. 1,1.1 I, 111 A't'/v uvidoiicc. iKlor.sement on a hill, is dated, the date shall? lili'ss the contrary is })r()ved,(') be deemed to be it^' true date of the drawing, acceptance, or iidorscment, as the case may be; 'h lluuhiiis r. Coliuii, H L. C. J. 85. 28 TlIK r.lI.I.S OF KXfllANGE AcT, 1890. Y Ccrtiiiii (lilt- iiiK" not to validiitf. (2) A hill Ih not iiiviilid by reason only tliat it|i,iiior iint{),Unn;:',. ' " linD sllllll SOll or 1 1 'iM • /• • • • .■ .11. ,l>ui>''"y-" I'^'v. > 1. J he pniiiii /iiin- |nvsniii|ilinM iin-^iiiL' num Ini' date iiiiiv M i i i rclmttcl, r. I/., inilcfcat tin- Staiuic of Liniitniioii^.iir to fsiitlili^li'thnBeiinetod by tho 4i) a imrtv to the liill wa- a iiiiimr nr ullicrwi-c iiicaiialilc. Mniita:_Mii' «(,.|.tu 1 unA »> ■ uou iVikihs. -JJ L. .I.(M'. 1S7; llavs r. Davi,!,.! I., C. K. II.-). ■' \" ., ,.., 111.' u , \ ■}\ , ■ . ■ I .iBOtiflifC (-tatuto 11 2. \\ licii iiii iiii|in>sililc ilatf, r. y the oiilL-niii* . ' ^ liartiicr. Woodford r. IVirwiii, !! Vl. S'i. " ■iuiUicdi.-ite parties. I. \ fraiidiilrnl aiitcilaiih'.: ur |)(pstilatiii'_', ''. ,'/., tofvadca pmliiiiBf Ivericli siiprn tiMV law , rciidiTs the liill invalid. Fitdd r, Wcmd, (I Duwl. P. C. 2JB, . , ' . /, ' Serif r. Xnrtun. :» M. Si W. :{(MI ; Mayley r. TaI.er, 2-(l. P'^' ^'"'''^*' '"^ ^'l' "). Il'a hill he |)osl-.latcd, and one of the parlic-' to it die heforc tlmiade on a Siiiidj day iif its date arrive, it will still he valid m the hands of a '"'"". /'''■tliat in tlii.s ca.sc tl holder for vidue. Tassmore r. North, lit Mast, ."ilT ; I'sher r. hiiuiiB,. , cey. 7 Canih. it". P"^ ''i^'t •'^ ""t «'Xli t>. Defendant, a N'ova Scolian re-^ident in i'aris, ^'avean aeconiiiKHiiB In C'ote v. Lei dated on a .*^iiiidaj heinir Sniiilay, M., on reiteipt of the note, altered the (i to s, mi inserted at the top the woi'il ".lime." whieh had iieen omitud. //('/(/. that, as the liahility of the maUer was not increa-ed, the n"t heiiijr payahle on demand, and the alteration wa< made to eorn manitV>t mistake on the part of the maUer, tin' note wa-^ i;ood. Tl Merehaius 15anl< r. SlirliiiL', 1 U. A' (!. l.'iH. See section 2(). Hut ll alteration is material under section (i.'5. .See note-* under that sntit 7. A note dateil on Sunday in payment ola horse piiridia-cl > that day is invalid in (Jiiehec hetweeii the ori;,nnal jiai'ties. d'li' liemieux, '.> \j. V 1!.. '221 ; a-^ to Ontario see ('romliie c. Overiiojtzc IT. ('.. I I Q. 15. ,j.-, ; I[,,iiUton r. Parsons, l'. ('., '.J Q. Js. OSl. .S,r a! Ilearney r. Kineii,7 L, C. .I.;U. .See notes. rt. Where a hill was dated on Sunday, it was held that there \v;i no presumplioii of the aeceptanee haviii;^- heen made on that 'la) lU'irhie r. licvi, 1 ('romp. Si J. l>^th !). It may he shown that a hill date(l on Sunday \\as really dil; ered on another dav. Clouirh (". Davis, !) N. ll.T)!); I llandolpli, ' n. '.). 10. A note dated on Monday is ij;ood in the hands of a Imini I'l' liolder, altliouirh reallv executeil and delivered on Sundav. Iloiili-t' r. I'ar-ons, V. (\, ;i Q. H. CSl ; Cromhie r. Ov •' Izer, ^^ V., H B. r^h; Cransun r. Goss, 107 Mass. 4A\) ; and sevi oilier cases cit in Ilandoliih, vtd. 1 , p. 'Jl, n. t. Under section 13, sub-sec. 2, it is no objcotion to the validity a bill or a note that it bears a date on a Sunday. But will (in the same day. w The learned jud'j;e refore, it i.s p 'rl actiniis of a eoniiii e Sunday." Su iiiro. hut is it to ]k indicated in the s almost a !i\::al nia aline under a pi i!li'u;il and void at II Statutes, i^J^ 4." liii'-. it woulil .>-e( on a Sunday, for i vuiil in (Quebec beti It ii.ay be oli.-ei a deed of ni(irt<:aL;'i Mierally all t-oiitrti ixcepl deeds of Jni In Ontario, the t Weed. Tiiellevis lilt it (lute iiiiiy \i l-ll'tli;i| iigiii' r •>Vi\, til IIIIUT f 'iillltii'I 111 ill 'in iriiliil'i . c. a folT til mil Jhl . hiiuii llliuu:l ,, M niM i s, all d. Ill' l|H'. iirri'it 1. Tl Hiitil ifctil'l ('(ill' I imltzt' Sec a! ■ ri' \v;i ml 'l;i' V I Id; ml fv iiili'-i' fs cil idity t wil FoilM AND TnTEUI.CKTATIoN. or iioto iiiailo ami dated on a Sunday, for a transaction also luadi' till tliut da}, Ik; valid ? Ill Qut'bic, '" no slioj)-kt!C'por, pedlar, liawkt-r, or otlicr jii-r- m (*hall sell or retail any ^oods, wares or uiereliandise dnrini^ Suinlay." Iiev. St. Que., art. 3498. This })rovi.sion wn.s fir.st eiiiicted by the 45 Georj:e Hi., e. 10, ». 1; C. S. li. C. e. 2:5, sets. 1 and 2 ; .see also 43 Viet., e. 4, s. 5 ; 45 Vic., c. !>, s. 2. The (jmhec statute merely enacts a penalty aiiainst the otlender, ainl is altogether silent us to the ell't et ujmhi eontiaets. A hill a note, therefore, made on a Sunday in the I'mvince of Quebec M'.iro the Hills of Kxcliangc Act, was held valid lH;tween the immediate parties. Mr. Justice Monk said in the ease of Kearney r, Kerieh, siiprn, u. 1 : "The Court does not know of any jaw, either in Canada or i'lnnliind, which dcel.ires that a notei made on a Sunday, is a nullity ami void.'' It would seem lat in this ca.se the i»laintifl" was a hoMer in due course, although lis fact is not expressly stated in the report. Ill Cute V. Jii'inirux, Mr. Justice Stuart held that a note dated on a Sunday, and j^iven in payment of a hortte purchased the s;ime day, wasnulland void, under the 45 Geo. HI., e. 10. The learm'd judi^e observed: "The object of the legislature, urefnre, it is perfectly evident, is to prevent all sales or traus- actiims of a couunercial or trading nature iroui taking place on Sunday." Sueli was undoubtedly the object of the Kgisla- iiiro. but is it to be carried out in any other manner than the one imiicated in the statute, viz., the imposition of a fine ? It i.s iliuost a legal maxim that where any thing is prohibiteil by >iaiu:e uittlrr a jxim/ti/, a eontr.ict founded upon such thing is illeiial and void at le.ist between the immediate parties. Kndlich I'll I^tatutes, ii>^ 450, 451, where all the authorities are collected. ihii-. it would seem that befoie the Act, a n te made or dated on a Sunday, l()r a trade transaction closed the same day, was vuiil in (^ui'bec between the immediate parties. It ii.ay be ob>erved that notaries can validly })ass in Quebec I deed of mortgage, a lease, a sale of real or personal estate, and :i'iu'rally all euntiaets, on a Sunday as well as any other day> xoepi deeds oi' Jiiii' o A // / -^^ Photographic Sciences Corporation 23 WEST MAIN STREET WEBSTER, NY 14580 ( 716) 872-4503 #' iV iV \ \ .^ O \ a^ # .0 Q' w. 30 The Bills of Exchange Act, 1890. §13 enacts: "It is not lawful for any mercliaut, tradesman, aiti, " ticcr, nieclianic, workman, laborer or other per>on wliatsocver, on the Lord's Day to sell or jiublicly show forth, or expose, or offer for sale, or to purchase, any goods, chattels, or other per- gonal property, or any real estate whatsoever, or to do or txer- clse (till/ WDvldlij l(ihoi\ business or work of his ordliviry calling (conveying travellers or Her Majesty's mail, by laud or by water, selling drugs and medicines, and other works of neces-^ity, and works of chariiy, only excepted). " Section 8:" All sales and purchases, and all contracts and agreements for sale or purchase of any real or personal property whatsoever, made by any jiersou or persons on ttie Lord's Day, siiall be utterly null and void.'' These two sections were first enacted by the 8 Viet,, c. 45, ss. 1 and 2, and have ever since been in force in Ontario. In liouliston o. Far.-^ous, and in Crombie v. Overholtzer, supra, n. 7, the Court of Queen's Bench hold on a demurrer, that a note made on a Sunday for goods sold on that day, alliiough void between the immediate pai ties, was valid in the liands of an in- nocent holder for value. Chief Justice Robinson, in Crombio V. Ovcrholtzrr, said : " The statute 8 Vic, c. 45, makes void all contracts of sale made on a Sunday ; but that affect^ merely the consideration for this note itself. (') This plea relies on the bare fact that the transaction out of which this note arose was illegal as between the original parlies, without averring anything that might make such a defence available against this plaintiff, an in- nocent holdrr, for all that appears for value. " 'J'hese p: oviucial statutes evidently come into conflict with section 13 of the Bills of Exchange Act. This section says that " tlie bill is not invalid by reason nuly that itbears date on a Sunday." Il'it can bear date on a Sunday, it can be dafeil on that day. So far, the Act repeals the local statutes passed before Confed- eration ; but it seems doubtful whether it authorises a bill to be made and dated on a Sunday for a transaction effected and closed that day. It may be said that the Parliament of Canada which, alone, has exclusive jurisdiction in matters of trade and (i) It seems that it atlbcts more the capacity to contract. See Bcctioii 22, n. 34. Form and Intkkpretation. 31 commerce, has not repealed the provisions of the old local statutes v^ 14. prohibiting trade transactions on the Sabbath, beyond the dating ami perhaps the making of the note on that day. At all events the bill Wduld be valid in the hands of a holder in due course. l-l- Where a bill is not payable on demand computation the day on which it lalls due is determined asi>iiymunt. follows : — (d) Three days, called days of grace, are, in r)"y3 of every case where the bill itself does not other-" wise provide, added to the time of payment ns fixed i)y the bill, and the bill is due and payable oil the last day of grace ; Provided that : — (1) Whenever the hist d;iy of grace falls on a ^^on -juridical legal holiday or non-juridical day in the Province where any such bill is payable, then the day next following, not being a legal holiday or non-juri- dical d;iy in such Province, shall be the last day of grace ; (2) In all matters relating to bills of exchange, wimt shaii be the following and no other shall be observed as legal holidays or non juridical days, that is to say :— ((() In all the Provinces of Canada, except the ^" »•• I'^o- ^ ^ ^ •"• viiiccs except Province of Quebec — Quebec. Sundays ; New Year's Day ; Good Friday ; Easter Mondav ; Christmas Day ; The birthday (or the day fixed by proclama- tion for the celebration of the birthday) of the reigning sovereign ; and if such birthday is a Sunday, then the following day ; '■:l '; 32 The Bills of Exchange Act, 1890. U4, II > In Quebec, In every Province. Days to bo computed when time begins to run. When time begins to run. The first day of July (Dominion Day), and if that day is a Sunady, then the second day of July as the same holiday ; any day appointed by proclamation for a public holiday, or for a gener- al fast, or a general thanksgiving throughout Canada; and the day next following New Year's Day and Cliristmas Day, when those days res- pectively fall on Sunday ; (h) And in the Province of Quebec the said days, and also — The Epiphany ; The Annunciation ; The Ascension ; Corpus Christi ; St. Peter and St. Paul's Day ; All Saints' Day ; Conception Day ; (c) And also, in any one of the Provinces of Canada, any day appointed by proclamation of the Lieutenant-Governor of such Province for a public holiday, or for a fast or thanksgiving within the same, or being a non-juridical day by virtue r" i statute of such Province ; (3) Where a bill is payable at sight, or at a fixed period after date, after sight, or after the hap- pening of a specilied event, the time of payment is determined by excluding the day from which the time is to begin to run and by including the day of payment ; (4) Where a bill is payable at sight or a fixed period after sight, the time begins to run from the date of the acceptanc3 if the bill is accepted, and fron is noted iiundeli^ (5) Tl) calendar (G) Ev or montl mnnberci pa}' able { there is i made pa the last in all cas( Days of gi 1. A note itioiitli after d January 1st, bocker Life i 2. A note Jiuniury 1st t 4ili and Febi ;!. A bill (1 K line oi» Fel 4. A non-n days of grace 5. A bill (1 a liill dated 8 (late, all fall Iwenty-eiglit i I, p. 409. Se C. A note n one month at grace. Wagi 7. Days of Roberts, 1 Es 8. A bill dr London at do cot, 1 Ld. Raj day following i). A bill •' 1 f'f ixrace. Di> 22, 8. 0. Con 10. The ho Form and Interpretation. 33 and from the date of noting or protest if the bill § 14. is noted or protested for non-acceptance, or for nun- delivery ; (5) The term " month " in a bill means the"^io"t'>-" calendar month ; (G) Every bill which is made payable at a mouth J||'^^^!'°"'"s of or months after date becomes due on the same numbered day of the month in which it is made payable as the day on which it is dated — unless there is no such day in the month in which it is made payable, in which case it becomes due on the last day of that month — with the addition, in all cases, of the days of grace. Dmjs of grace : — 1. A note dated 81st Jannarv is payable " vvitliont grace " one moil til after date. It is due on Bcliruary 2Hth. A similar note, dated Jiuuiary 1st, would be due on February 1st. lloehner r. Knicker- bucker'Life Ass. Co., 68 N. Y. KiO. '2. A note forJGlOO is made payable by two equal instalments, on Jiimiary 1st and February 1st. The instalments fall due on January 4ih and February 4th. Oridge i\ Sherburne, 11 M. & W. 874. 8. A bill dated January 1st is payable thirty days after date. It is due on February 8rd. Chalmers, 82. 4. A non-negotiable note, not payable on demand, is entitled to days of grace. Smith v. Kendall, {\ T. R. 128. T). A bill dated 2Hth November, a bill dated 29th November, and a bill dated 80th November, each being jiaytibk' three months after ilate, all fall due on March 8rd, inasmuch as February lias but twenty-eight days. Cass. 18th August, 1817, cited in Bedarride, vol. I, p. 409. See also Chalmers, 37. G. A note made on the 28tli, 29th, 30th or 81st of January, ))ayab]e one month after date, is due on the 28th of February with ilays of {.'race. Wagner i\ Kenner, 2 Kobinson, 120. 7. Days of grace are a matter of right and not of favor, Witi'en t". Roberts, 1 Esp. 2G2. 8. A bill drawn in Amsterdam, dated 1st January, and payable in London at double usance, falls due on 4th March. Mutfonl v. Wal- I'ot, 1 Ld. Raym. 574. A usance is of thirty days running from the (lay following the date of the bill. 4 Alauzet, 1G5 ; 2 Nougiiier, 89. 9. A bill ■* at sight," or " on demand at siirht," is entitled to days of.rrace. Dixon i\ Nuttall, 1 Cromp. M. een liv me," is '- t'()uivalent to an intlorsement without recourse. Hailcy r. I'^alconer, 82 Ala. ')M\. ;i. C., tlie holder of a hill, indorses it to D., adding the words ''notice of dishonor waived," " protest waived," "return witho.it ]ii'otest," " retoiir sans J'rais,^' " retour sans proiei." No snhse- (|tK'nt party is oliiiired to give notice of dishonor to C. Cass. 22nd .lanuary, IHT!), S. 7!», 1, 177; Cass. !)tli Novemlior, 1H70, D. 70, 1, ;;,)(); Ke(i. lOth Ajiril, lS7t), I). 70, 1, HU. According to Alau/.et, vol. 4, p. .'UO, and others, notice in tliat case is not necessary against any party siihsequent to C, unless a contrary request is made. It is prudent to give him notice. Chalmers, ;i6. See section 46, nn. 50, ;-,I,n2. 4. But the words ,s«».s_/>'«/.s' on reinur scdis f'rais were held to waive only presentment and ))rotest, but not notice of dishonor. Lvon, 22ih1 August, I8(i7, D. 07, 2, 225. See also section 40, n. 51. 17« The acceptance of a bill is the signification pofinition of by the drawee of his assent to the order of the '^'"'"^i'"'"'^®' drawer. (2) An acceptance is invalid unless it complies Requisites of with the following conditions, namely : — {. jiersonally. Jic Harnard, ;)2 Ch. 1). 1 17, C A. See Tndor, iicad. C. .'5rd. ed., p. 47 I, and sections 22, 25, 2(1 and ,')lj, 6. JJill addressed to B. and X. B. alone accepts. B. is liable as acceptor. Owen v. Von Uster, 10 C. B. .'US. 7. Bill addressed to B. & Co. for iiartnership purposes. X., a partner in that tii'm, accepts it in his own name. He is liable, lint the tirm i? not under section 2:5 of the Act. See Tndor, .'5rd ed. -174 ; Chalmers, ;{ll, S. Hill addressed to H,, who is a partner in the tlrmofX. tfe Co,. B. accejits in the tirm name. B- is ]iersonally liable as acceptor NichoUs L\ Diamond, t) K.xch. 154. Mare r. Ciiarles, 5 K. & B. U7.'^; sect. 2:5. 9. ]?ill addressed to William I?. Ilis wife accepts it, signing the accejitaiice ■• Mary B."" If lie authorizes her so to accept, or after- wards promises to jiav the bill, he is liable as acceptcir. Liiiilus V. JJradwell, 5 C B. 5cS;;. 10. The accejitance of a ciiecpie, by the pre-^ident and manager nt' the bank iijion which it i.-diiuvn, at a future dati', is good and valiil. Exchange Bank r. HaiKiue dn I'enple, 10 L. N. ;{G2 ; M. L. li., ! Q. B. 2.'J2. The chcipie is then a bill. See section 72. 11. Cherpie-: fraudulently initialed as accepted iiy the manager of ;i bank cannot be repudiated liy the bank, when they are held hv a lioiKt /iile holder for value. Banqne Xationale f. Citv Bank, II L.C. .1. 11)7. Section 21. 12. The drawee of a bill writes an acceptanc" on the back of it. Tlii- is sullicient Young r. (Jlovi'r, .'i .lur. N. S. i)'M. I',]. A. draws a bill on B. B. writes therefin the word " Acceptcil," but does not sIlmi it. li was proved that he wa~ in the haiiil of thu- makiii'.: his aiH'epiiinccs. This is not an acceptance. Tunn, 1 lili, Mav,I^!lO, S. II, 2,.")0.rtei.2Sthl)ec., 1824, S. 25, 1, 2H() ; 4 Alaiizet,ii l;{()7 ; Chalmers, ;59. 1 I. The aci'eptance or eei'tificiition of a chei^ue by a bank i< ii- bindinu' as it> notes of circtilatic.n. Merchants Bank t\ State Bank, 10 Wall. (104 ; Cooke r. State 15ank, 52 N. Y. !)G. A jii'oDiisc til tic''(pf : — 15. A, draws a bill on B. B. writes a letter to A. accepting or pnm.iv ingtoaice)! the bjl and shows the let er to the holder. This is not an accrpiaiice. Brussels, 2;?rd Dec, ISO!), S. 10, 2, 27:5; Rej. 15th .Miiv, 1H5(), S. V. .50. 1, 444 ; Paris, 20th Feb., IH.-iO, S. :?0, 2, \W} ; Cass. Kith Ai)riK 1S2:5, S. 21!. 1. 211 ; I, von, 21st Auirust, 1827, S. 2H, 2.'': Pans. 22nd March. 18 M, S. V ;{(;. 2, 460 ; Caen, 5th March, 184!), S. V. 41), 2, 403; Lvon. 'Jih August, 1848, S. V. 49,2, 164; Paris, I8th Jiilv 1S|!),S. V. iners, :(!) ; id. But 1 Rej. Itlth A 2^i ; Siimm 17. Undi to the hold or lins is.-uc r fhilbraitl Von I'hul I' I'. M05; ViX< ls:i7 : iliid. 1 Bedarridc is. A (in telegram fi'( jiri'vioiis t\vi draft was re nccdi'dance L.C.J. 185 The Molsoii 2:i L. C. J. i I!). A lian the absen(;e ]iriiiripal bai ilnit of the ] fiiinN are at (Icpiisitor on siirli telegi'a hank' toward ]iiiyiiient, if liithlrance t( Canada, M. ' 211. On tl thillk'illg tll< lUiillile to pi till' lelegraii of ii discoiii uitli the )ir( iy annther ' Il'hJ, th inducing pe 25, ll» J. I'. ;5l),"i; Cass. .')th April, hH;{7, T. P. 1, 1h;!7; I>iin(m'es, 22nd June, Ls:;7 ; iliid. 1, IS.'iS, 212 ; Rouen, i;)th March, Isdi; J. P., (;2, 2, 11 ; 1 licdarride, n. UK; ; 4 Alaii/.et, n. 1:514 to Klli). See sect. rj.'J. H. A linn in Montreal drew on a lirin in Toronto on the faith of a teli'Lirani {'vu\\\ the drawees that tlu'V ini^ht do so in (jrder to rctiri' a previous draft coniinjr due. The plaintilfs discounteil it, the first draft was retired, and the drawees then refused to acc^ept.— //(.7'/, in iicciinlance with Torrance & \h\\\k of Hritish North America (17 L. (". J. IS') it 1 Diir., p. 1.V2, art. HH), that the drawees were liable. The Molsons Hiink'c. Sevmoiir et al., 21 L. C. J. 82, S. C 1877, & 2:i b. C. J. 57, Q. H. 1H78; see also Seo;oiul r. Thomas, 10 Louis. 2i)i). lit. A banlc acting as airent for another baidc, is not authorized, in the absence of express agreement, t(j cash a cheijiie drawn upon the principal bank, but not accepted by it. A telcj;rain from the presi- (lent of the ]U'iiu'ipal baidc to a depositor thereui, stating that certain ('mills are at liis credit, is not an acceptance of a cheipie drawn bv the ilcpiisitor on receij)t of such telegram for the amount of the funds, such telegram adding nothing to the legal obligation of the principal liaiik towards the deiKisitor to pay the cheque when duly i)resenteil for iiiyiiicnt, if there were then funds at his credit to meet it, and no Ici^'al litidrance to its payment existed. Maritime Hank c. Union Hank of Ciinaiia, M. L. R., 4 S. C. 244. See f-ection 5;». ' 2(1. On the maturity of a bill of exchange, the drawer^i thereof, tliiiiking the acccjitor would be unalilc to meet it, tcK'graphcd him if uiialile to ]'ay it to draw on them for the amount. Tlieacceptor took the telegram to the manager of the plaintilfs' bank, who on the faith iif it discounted a ,«ight bill drawn by the acceptor on the drawer-^, with the ])roceed.s of which he retired his acceptan<:e which was held Iv another bank. I'he drawers refused fo accept the bill so re-drawn. lltbl, tliat the telegram liaving been sent for the ])nrpose of inihicing jiersons to advance money on it, and to take the bill so ilrawii in jmrsuance of it, a privity wascreateil lietween the plaintifis ami the defendants, senders of the telegram, entitling the tormer to iiiiiintain an action against the latter for the money so advanced. 7/(7'/, also, that no time being mentioned in the telegram, an author- ity todiaw at sight would be imjilied. Hank of Monti'cil r. 'I'homas, ICi (>. \\. .'iO."-! ; see also Coolidge v. Parson^, 2 Wheaton, ;i(i ; HiL^elow, .•|(i; Robey V. Oilier, L. R., 7 Ch. (I!)"); Ranken r. Alfaro, 5 Ch. D. Ti^Ci ; Shininieljx'nnich v. Hayard, 1 Peter.'', 2t)4. 21. The drawee of a bill of exchange who has refused to accept iiiav nevertheless he condemned to pay the amount thereof to the linldcr, when the facts of the case and the dociimeiits ]>roduced ])rove that said bill was made upon the demand of the drawee and in his interest, the latter binding himself to rejiay the amount, and tliat the drawer provided the funds and handed the same to the drawee, only 38 The Bills of Exchange Act, 1890. S 17. ill view of the oiignfiPiiiciit ontcrcd into bv the latter. Cass., 2 Doc — ^ \f d in a S' t ; 3. That it be signed by the drawee ; 4. That it be payable in money only. Section 1 7, sub. 2, declares that an acceptance is invalid un- less it complies with these conditions. The English Act contains similar provisions in sections 17 and 65. Previous to the Act of 1849, tliere was no law in Quebec regu- lating the foim of an acceptance. The latter could be made, as before the ordinance of 1673, by separate deed, simple corres- pondence, or even verbally. 1 Rev. de Leg. 510 ; 2 ib. 334. The custom of verbal acceptance was done away with by the ordinance o auce shoui 1 the ])Utting tended that of registr.iti rci;istered o and enfor(!e( it Dcliherat As a nec( cannot be ii possci-sion t( acccjitance. Nevertheless part de celui jongtemps le atin de I'emp piir hii donn ti'Uips Ic tin tiree, qui a a IVut acc( j)tec ii'y en ayant tntendre I'an Chmtje, n. 4( Writing is ment of an nc is iiiadmissib ordinance of to be in writi other accepta Therefore, acceptance, tl oath or scrmc Qui'hec. All acce))ta fcen, or its ec pa I/, followed is that of acct of the drawee aud the Unite 39 Form and iNTEiiruETATioN. ordinances of 1(573, tit. 5, art. 2, which roquired that the accept- § 17. auci- slidulil bt! in writini:', although not (wactiuLi,', like our statute, tJR' ])Utting of such acceptance up'n the b:ll itself. It is con- tended that this ordinance was not in force in Quebec for w mt of resristr ition by the Superior Council of Quebec. Whether registered or not, it stems bojond dispute that it was followed and enforced as law, during the French riijiine. See '' Jugeiuents it Delib(5rations " (just published), vol. 4, p. 9:}5. As a neci ssary consicjuence of section 17, a tacit acceptance Tiicit cannot be inferred Irow the drawee's retaining the bill in his '"^''^'''''""^^''' pos^session for an undue length of time, without writing any aece|itance, and without returning the instrument to the holder. Xevertbeless, Pothier remarks that : " SM paraissait du dol do la part de celui sur qui la lettre est tiree, qui auiait express amus«5 Innutcmps le porteur, sous le faux pretexte ({u'il a adire la lettre atiii de rempOchir de se pourvoir contre le tireur, pour so fairo p!ir lui donner caution faute d'accepiation, et que pendant ce tiuijjs le tireur cut fait !. nqueroute, cidui sur qui la lettre est tirt'e, qui a amusd le porteur, seiait tenude I'acejuitter comme s'il IVut acct ptee ; ma is cette obligation ne nait pas d'une acceptation, 11 V on ayaiit jias eu ; cllc nait de son dol ; c'est ainsi (ju'on doit (iitindrc I'arret rapporle par de la Serra, ch. 10." Cou rat de Chanije, n. 46. Writing is required by the statute as being an essential ele- ment of an acceptance, and parol evidence to establish the latter is inadmissible. The statute, in this respect, goes beyond the ordinance of 1673, art. 2, which simply required the acceptance to bo in writing, without pronouncing as to the validity of any other acceptance. Therefore, Poihier's opinion, n. 43, tliat in the case of a verbal aoioptance, the holder should be allowed to demand thedecisory oath or servient diclsoire of the defendant, cannot be followed iu Quebec. An acceptance is generally expressed by the word accepted or " AcceptciJ." WH, or its equivalent, such as, I will acquit, I will honor, I will jiiii/. followed by signature. The expression sanctioned by trade is that of accepted, followed by signature. The simple signature of tlie drawee ent lils an acceptance, and in the United States» and the United Kingdom, before the Act, the word accepted 40 The Rills of Exchange Act, 1890. § 18. without siiiPiituro, wjis perhaps sufficient. Chitty on Bills, ch. 7, . ^^^^ ,^^^^^ :}21,:{2:J. :{24, Sth ed. 18;;3 ; Buyhy en iiills. c. (I, s. 1 . p, 182, r)th ed. IH'Ml; Stcry on Hills, s. 24:J ; liyks on Bills, 2 Am, od. 1848, nn. i;^l>, 1(14. llowivcr, liyles r< marks that it was tlu'U ii question for the jury whetlier the aeceptauee was Complete and perfect. Byles on Bills, n. i:i!), p. 1(14, ed. 184H. The cd»lit:atioiiH of the acceptor are of so extensive and pn^cisc a nature, that liis intention to undergo tlieui must necessarily jippear cleaily upt)n the instrument, in accordance with the statute. Sec supra, n. 18. Jt would he difficult to he satisfied with the more word (ivapfal, which at the utmost (tonstitutes hut a presumption of acceptance. Pothier and all t French writers hohl tliat the si;:nature is recessury. As to what constitutes a signature, see sections 28 and 90. The acceptance need not bo dated, except when the bill is at sijiht, or at so many days or months after sight, ivnisoil An erased or crossed out accepiance is of no effect under the luct'i.tance. „ij p,.^,„(.l, in^y and under that of England. J)e la Serra (juotes an arret to this effict. L'Artdes Let. de Chan., p. 88, c. 10. " La raison est," says I'othier, (junted by Byles, n. 148, and in Cox, V. Troy, in 1822, 7 Kng. Com. Law K. 1(j8, ''que le concours de volont(;s qui forme un contrat, est un concours de volontes que les parties se sont reciproquemtnt declarees; sins cela la volonte d'uue partie ne pout acquerir de droit a I'autre pnrtii', ni par C(in>e(|uent etre irrevocable, suivant ces principes. Wour que le contrat entre \v proprii-taire d<' la letiro it celui sur qui elle et-t tirec soit parfait, il ne suffit pas que celui ci ait cu pendant quelque temps la volonte d'accepter la lettre, et qu'il ait ecrit au bas (ju'il I'acceptait ; tant ((u'il n'a pas declare cotte yolonie au porteur, le contrat n'est pas parfait; il pent changer de volonte, et rayer son acceptation. " Pour que cette acceptation barrec fdt valable, il faudrait que ]e porteur put prouver (ju'elie n'a ete rayee quo depuis (jue la lettre lui a die rendue, et qu'on la lui a ravio ou voice." Contrat de change, n. 44, p. 114. See section 21, sub. 8, and n. 8, soctiou 62, n. 8. Time f ( r ac- cei)t)iii3e. 1^- A bill may be accepted : — (a) Before it bas been signed by the drawer, or while otherwise incomplete ; (/>) Wl ilishoiKJiM iion-i)ayii (2) ivi orcd by i (|iii'iitly { iiiiy diir*'; hill accei; to the dr See spctioi 1. A. (irav iliUc. Tiie li As ivLranU li Milt ton I r. W 2. 'i'iie hn the (li'awee t' i- ic iiresoiiti llaiko, 5 Ka I!. M. at'ecp iliitc. lie at '\> jiriiiK'i I'm- 1 c. i5ct he'll, 1 4. A hill u Wli n lilt' fii liaiik, u here mill rcliiriicil " I'aiil on till tlu' I'emairiii N. B. Stev. iiink'i' scetid 1«. A (It) qiialif qnalilicat liL'd acce] ^'i the bi (2) In wliich is {a) Coi payment ment of cu FOUM AND iNTKUrRKTATlON. 41 (h) When it Ih overdue, or ultei' it Iims l)eeii ^19. dishonored by a previous rel'usiil to accept, or by iioii-payuieiit ; (2) When a bill payable after wi''lit is dislion- "j^^''- '"«'"'« ored by iioii-accei)taiK'e, niid the drawee subse- ''''^'f'^'''- •^ ^ *^ ^ ^ honor. ([lU'iitly accepts it, the holder, in the sibseiice of any (lill'<'rent agreement, is entitled to have the bill accepted as of the date of lirst presentment to the drawee for acceptance. Set' section 17. 1. A. draws iibiU on J}., dati'il .Iiuiiiary 1st, itayaMc one month aftci^ (luic. Till' lioldt'i" prost'nts it for iicccptivncc in Mai'cii. J}. accepts. As ic'. Central Bank, II il. T. 18G3. X. H. Stev. Dig. It seems (huibtfnl that this decision will ludd good under sections 17 and IH of the Act. H>. An acceptance is either (a) general, or uonorai and . i(ualitiod ac- (//) q nail lied : a general acceptance assents without ouptance. (iualilication to the order of the drawer ; a quali- fied acceptance in express terms varies the efl'ect of the bill as drawn : (2) In ptirticular, an acceptance is qualified Qualified . acceptance. ■winch is : — («) Conditional, that is to say, which makes payment by the acceptor dependent on the fulfil- ment of a condition therein stated ; but an 42 •The Bills of Exchange Act, 1890. ^19. acceptance to pay at a |)articiilar sped lied })lace is not conditional or (lualilied ; (/>) ' artial, that is to say, an acceptance to pay part only of the amount for wliicli tlie bill is drawn ; ((■) Quidilied as to time ; {(f) The acceptance of some one or more of the drawees, l)ut not of all. General or qiKiJified : — 1. An ii('i't.'|itaiici', vvlu'iioviT po-isihlc, is to lie ('(mstrui'il ii^ goiu'ral aiul not (iiialilifiL Faiishawi' r. IN'ct, 2li I.. J. .SI L 2. An ac>('|)tiinci' " when in t'lunl- " means wIkmi tlie afct'ptur 's in tlio j)oss(.'.->ion of t'a-h whicii tlu' ilrawi'c ha-^ a i'i,:;iit i o ilcmanil an 1 receive or to a|i]U'o|iiMate. Winterniute r. I'ost, \ Za'ir. 4;j0 ; Swansey r. Hreck, 10 Ala.,"):'..'!; Julian r. Shol.rooke, 2 WiN. 1). ;i Availalile socni'ities are not t'liivl- until conNcrit' ■ into money Hunter r. Inirrahain, 1 Stroii. 271 ; Gallery c Pun lie. 1 I iJarli. ISO. Tlie f(ill:iicin[i h(in:l>i:t, t Camp. H9;5. 9. " Wju'ii lie would ohtain those funds from France.'" Mcmli/abel V- Machado, '^ Moore k S. Sll. 10. If a certain liou-^e should he jriven up to the drawee htf' e a named day. Swan r. Cose, I March, 177. 11. A che(|ueaccp}>ted conditionally docs not bind the acceptor till the condition is fullilled. nufresne r. Jac(|nes Cartier Muiiilinii: Societv, 5 R. L. 235. Ontario Hank (. McArthur, 5 Ma. R. ;W1 ; Paris, JLst March, 1S8S, J. P. 40, 2, 40 ; 1 Hedarride, M'.K 12. The defendant accepted an order : " Accented, payable when in funds as a first preference out of the estate of C. F. it Co." Held, that the evidence diil not show siudi a fultilnu'nt of the condition upon which the acceptance was niade as to make the defendant liable upon it to the plaintiU's ; that the trnstct's, under the a-sionment, had a first lien for the aiuoiuu of the advances nuide by them, and mi,irht have interfered to prevent defendant from treatinjf moiu'ys received, a« received by him as assi ii 111 TlieJ'ollowi)i[/ acceptances are nhn qualified or coiulitional : — S 19, 111. Exti'iidiiii: tlio time of paviiictit. Ilii.s.-^ell y. I'liillips, 14 Q. B. 891 ; IJiirthe r/Donaldson, 15 \m\w. ;5R2. 14. " Paviihlo in iiionov, luilf in rroods." Petitr. BoiiPoii, Comborb. 4')2; Howe f. Yoiiiij,', 2 Hliirli H. L. 401). 15. " Acccptoil, payable on giviiii.^ up bills of hniinii for clover per «lii]i ' Amazon.''' Smitb y. Vertue, HO L. J. C P. 5G, Id. " On condition that it be renewed." Russell i". Pbillips, 14 y. H. S91 ; Fan.-hawe r. Peet, 2G L. J. Ex. HI 4. 17. Defendants acce])ted two drafts in the following words : — " We will Ueep the sums of .$(!05 and $40."). 25 from the iirst estimate of McLe.tii and Moran & Co., as reipiested above, provided they have (lone ^lllii<■i(■llt work to earn that sum." The c;oiiditi(jn liaving been t'ullilled, lield, that they were liable. McLean v. Shields, 1 Ma. 11.278 Sec. supra n. 11. 1>!. In Eii.dand and, before the Act, in Ontario, Prince Edward Isluml, Manitoba, an iicceptaiice " payable at the I'nion Hank and not elsewhere "' was qnalilied accei>ti;nce. llalstead r. Skelton,5 Q B.,.SG Ex. Ch. Otherwise under clause ly, par. (r/) of the Caiuidian Act. See al.-^o section 45, n. 15. An acooptance may bo either general or qualified. A general Ccneral accejitanec i.s an engagement to pay the bill absolutely according '"^'-'^'P''^" ^ to its tenor. Section 19. The holder may refuse any accept- !inc ■ whicli i.s not general ; for the drawee, as mandatory to the drawer, is requested to accept in the form and tenor adopted by the drawer. Indeed the payee receives the bill only on that condition. The taking of any other acceptance would expo.se him to the loss of his recourse against the drawer and indorser Section 44. A qualified acceptance varies the tenor of the bill, either by Qualifiefl being made tor a smaller sum or by changing the date of matu- "^'^'^^J"""""' rity ov the place of payment, or otherwise modifying the terms of the engagejucnt of the drawer. In all ca.ses of a qualifii'd ac'Oeptance, the holder should at once notify the prior parties, and if they fail to express their dissent within a reasonable time, they are deemed to have a.«sented to it. Section 44. An acceptance for a less sum constitutes a refusal for the sur- plus, and the hoider may reject it. He may take this partial acceptance and protest for the balance, and the prior parties will I'oruain liable, provided due notice of this partial acceptance be given to them. Section 44. If the owner of a bill allow the acceptance to be made for a loiigir term, he cannot demand payment before the expiration of the delay granted. Such exten.siou cannot prejudice the drawer 44 The Bills of Exchange Act, 1890 § 19. " Not elsewliere." or the indorsiTS who are discharged, unless they liave expressly or impliedly authorized the same. Section 44 ; 2 Eevuede Legis- lation, 171. The bill is then held at the risk and peril of tlio holder, who has no other recourse than that against the acceptor. Tlio drawer is not, however, discharged, unless it is proved that at the time of maturity upon the face of tlie bill he had forwarded the necessary funds to the drawee. 8ect. 4G, sub-sect. (lj. It sometimes happens that the drawee, without changing the term of maturity, sti[)ulates in his acceptance, that the bill, origi- nally payable at his domicile or someotiier place, shall be payable at some particular ])lace, for instance, at a bank where he has an account. 'J'he advantatrc of this aeceptance is evident, ^flie acceptance of a bill payable at a banker's is tantamount to an order to the banker to pay the bill. Vagliano o. Bank of Eng- land, 5S L. .1. Q. B. 357. Section 24, u. 8. About 1820, there arose in England serious doubt and diffi- culty as to whether an acceptance, which simply expresses a bill to be payable at a banker's, was general or (jualified. The ques- tion was finally brought up before the House of l.ords in Kowe V. Young, 2 Bligh II. L. 391, where it was held that such an acceptance was (jualitied. In 1821, the British Parliament pro- mulgated the 1 and 2 GvO. IV., c. 78, which declared •'general" every acceptance specifying a place of payment, unless it con- tained the words "o///y mid not otlierwlse nor elseichcre." This provision was introduced in Lower Canada by s. 7, of the 12 Viet., c. 22, 1849. The mercantile community of Montreal, beirig more or less unac(juainted with the J'higlish practice, failed to comply with the re((uirements of section 7 of the Act of 1849, and in 1850 the legislature re-established the old custom, aaJ declared, so far as Lower Canada was concerned : 1st, That the words onli/ inul not otherwise, nor ehenhere were nut and woulil not be necessary ; and 2ud, that the indication of a particular place would be sufficient to make the acceptance "([ualitied. " 13 and 14 Vict., c. 23, s. 4. The law remained unaltered in Ontario, and in 1864 was extended to Prince Edward Island by a statute of the Assembly of that province. 27 Vict., c. 6, art. I. See Ca. Rev. St.. ch. 123, ss. 9 and 16. The English Bills of Exchange Act, sect. 19 (c), has re-enact- ed 1 and 2 Geo. III., ch. 78. Form and Interpretation. 45 When the Act was under consideration both in the Commons § 19. and the Senate, the provision of the Englisl Act j/ave rise to a ~~ i;00(l deal of discussion. Ontario meiubt'rs stood for the main- tenance of the Englisli rule, vhile Quebec, Nova Scotia and New Brunswick were unfavorable to any change. Finally, section 19 was suggested by the Senate, and adopted as a compromise. Now, an acceptance payable " at a particular place " must every- where be treated as general and not qualitied, so that this stipula- tion may be made by the acci ptor, without his thereby causing any loss or danger to the holder. The use of the words " there only and not elsewhere " having no practical meaning should be discontinued. Whether they are used or not, the bill must he jiresented at the particular f^pecified place. Section 40 (1) ; and the drawer and indorsers are not discharged by their inser- tion in the acceptance. Sections 19, 44 and 52. The aeei'ptance maybe comlitunud. Sect. 19 ('»). Article Conditional 124 t(f the Code de Commerce prohibits any conditional accept. '^''"^'l''^'^"*^®' auce. The ordinance of 1GT3, title 5, art. 2, declares that all bills of exchange are accepted purely and simjtli/, in this sense, that the holder need not be satisfied therewith, and might have the bill protested, just ai ■ the same had not been accepted. Pothier, du Ciiange, n. 47 and n. 94. Tlu' English and American juris- pruilenee contains similar provisions. A c-onditioiial acceptance is a qualified acceptance, and, conse- quently, what was already said on this subject need not be repeated hi're. Can the drawee, who is the creditor of the holder of a bill pay- able on demand, sit off his claim and accept payable to himself? Can tlie holder refuso this ([Ualified acceptance or jtaymeut, for a bill payable on demand does ndt re(juire acct'ptance ? Pothier says that tlu; holder cannot refuse this acceptance, payment or compensation. " Le refus que je lui fais par cette espece d'ac- ceptation, de lui faire nn paiement re'el, etant un refus (jui pro- cede de ce (jiiilest mon debiteur, et par conse(iuent (jui procedc de son fait, ne pent doinier lieu a aucun recours de sa part. Pareillement, si un creancier du proprietaire de la lettre de change, avant que je I'lU-se acce])tee, avait fait saisir entre mes mains ce (jue je dois ou devrai par la suite a ce propridtairc, 46 The Bills of Excilvnge Act, 1890. 4? 20. Inchoate in .struuieuts. When to be filled up. As to subse- quent holder. j'ftcccpterai en ce cas la Icttre pour payer d, qui sera par jnsflce ordoniU avt3c un tel salsissant, sans quo Ic propriutairo do la Kttre puisso so plaindro de cette acceptation, puisque c'es^t sou lait qui donnc lieu ii la restriction (|uV'lle renierme. " Du Clian ; Sanford v. Jones, 6 0. S. 104 ] Lark in r. 3:W; Wlui t?. Slowrll. I'utlliUII ('. HIT; SiUi,i2 Elliiilt r. " 0J4 ; J.edw N. Y. 531 ^uu,'S ' A\'i.' send r- I'ri Gutlinipl r Kiuiii, --III Is'jS.citeil 1, ')7, and Seine, l!(itli p. :i~(i, !!• 1- Tlirjillh 2. '■ Tore .'!. A note Siviitord r. \ 4. Fillin«z I). 7:., 2, 2 Xiive nber, 0. ISilldra insert his i Ins. Co. (». J (■), Ibll si. the nani<' of been left in pt'i-fecled. lli:U a bill signed, was 7. It is nc indorsed, it up of the nil will 1)1' treai L'. C. 7 Q. J 8. A pers( lilunk, \\',\-> I ciitili^:- any tit. Ilo-arii: 9. Any on was iic('t'|.tt'( his peril ; ai in the firm i bolder must acceptance a it >lionld lic J. And if holder, the 1 111. Cheniu I', Buhner, 2 section 30. Form and Interpretation. 47 Liirk'm r. Wiani, 5 O. S. GGl ; Aii<;le i'. Xurtlnvestcrn Ins. Co., 92 U. S. 3'{i); Wliitiiioi'f t?. Nickcrsuii, 25 Mass. 400; Gri'Oiilit'ld Siiv. Hunk. V. StuWfU, 12;^ Mass. 19(j, I'J!), 20;! ; Fearing i'. Clark, Ui Grav 74; Piitiiani ('. Sullivan, 4 Mass. 45, 54; JJlakey i\ Johnson, 1,'{ linsli. 197; Sittiii' r. Birki.vslacU, .'is .Md. 15>S ; Dunliam v. Clugg, .'tU Md. 2f<4 ; Elliott t'.'Clii'snnt, ;{() Md. 51)2 ; Micliigan ]}ank i\ Eldrt'd, 9 Wall. 654; Ledwick v. AlcKiin, 5;5 N. Y. 3U7 ; Van Dnzcr v. Ikiwo, 21 N. Y. 5.S1 ; Jinrson p. Ihintinj^doii, 21 Mich. 415; Van Etiac. Even- son,^' Wis. .">;>; FarniorsW M. Haid< r. llorsc}', 2 liuust. liH5 ; Tuwti- soikI !•■ !• rancf, 2 lloust. 411 ; Ai'in.-ti'onji; c. Har-lank indorsement in France. Agen, 1st April, 187.'?, 1). 75, 2, 210; Uc(i. Utli January, 1878, D. 78, 1, 285 ; iteq. 5tli N,ive nhcr, 1872, D. 74, 1,87. 5. ISili drawn jiayahle " to or order. " Any bond fide Iiolder may insert his name. Crutclilv c Mann, 5 Taunt. 529 ; Mutual Safety Ins. Cu. i\ Porter, N. B. 2"Allen 280. 0. Bdl signed " Per 0. A. llowland, AVilliam Stockdale, manager," the name of the Company on whose helialf they intend to sign having lieen left in hiaidi and never tilled, lleid, that the note wa.s never |ierfeeteti. Brt)wn v. llowland, 15 A. K. 780. But held in Franco that a hill payable to the drawer's order, indorsed in full, hut not fiigned, was perfect and valid. Ca-s., 10th June, 1840, 1). 40, 2, 117. 7. It is no (.dejection to the validity of a note that, at the time it was imlorsed, it had not been signed by the maker ; the subse(pu'nt tilling up (if tlie maker's name, or of the amount, or of the payee's name, will be treated as if made before the indorsement. Rossin i\ McCarty, U. C. 7 Q. B. 100; llan.scome i\ Cotton, U. C. 15 Q. B. 42. 8. A person hlank fiitill*. who takes an acceptance, with the drawer's name in ha" no right to say that he may assume that that aec('i)tanco any hokler to insert any name as drawer which he ihink.s tit. Hogarih v. Latham, Law Rep. 8 Q. B. Div. 048, 052. 9. Anyone who takes such an instrument, knowing that when it was accepted the bill had no drawer's mime signed to it, takes it at his ]ieril ; and where the acceptance is made by a pcartner of a tirm, ill liie tirm name, in a matter not connected with the partnersldp, the holder must sliow that, in fact, the partner who tiid not write the arce|itance authorized the signing of the tirm name, with intent that it .-honid I/e tilled up by any person who took it. lb-, J5ramwell, L. .1. And if an unautliorized name be filled in as drawer, by the Imlder, the latter cannot recover even against the accepting partner. ill. Chemimj' Canal Bank v. ]?radner, 44 N. Y. 680; Union Bank /'. Hulmer, 2 Ma. R. 880. See section 22, n. 18 and following and section 80. I! 48 The Bills of Exchange Act, 1890. §21. S Contract not eoinpli'te until delivery. Chalmers, at p. 4(i, (jives the following illustratiuns oj inch oak 'instruments : 10. li., luivinu: autliorily to do so, .ij;ivos a blank .acoo|)tan(ic for 100/. in the 11111110 ut' liis lirm. It is tilled up after IJ's death. The sur\ iv- inj^ partners are liable. Usber v. Dauncey (1H14), 4 Camp. 97. 11 J}. i:;ivcs C. a idank aeceptaiice tn aci^oiiuiiodate]iiin,aiid without roceiviti;;; value, .\fter 15. 's dealh it is filled up and disciouiited witli D., who sees it tilled up. 1). rannot recover the auKHiut from U.'a estate. Hatch v. Searle.s (LS5t), 2 Sm. & G. 147; 24 L. J. Cli, 22. 12. B. gives a blank accejilance to a money-lender, who fills it up as a bill piiyable lo drawei's order, iiisei'tinji a fictitious si^natuic as that of drawer an. signs on condition that the note shall only be issued if Y. also will join as maker. Y. refuses to join. X., who is in jiossession of the note, represents to plainiitt' that lie has authority to issue it. lie fills in plaintifl's iiame as payee, and transfers the note to him for value. Plaintitl' cannot recover from B. Awde v. Dixon (1851), (! Exch. 8(i!). See .-upra, 11. 8. 10. B signs as acceptor a bill on a OcZ. stamp, with the amouiii left blank. In the margin is At. This is fraudulently altered to 4(.)Z., and the bill is filled up for forty pounds. A holder in due course can recover 40Z. from B. Garraril i\ Lewis (1882), 10 Q. B. D. 30. See sections 21, 24 and 03. 17. B., a bankrupt, gives a blank acceptance. It is filled up anl negotiated after his discharge. The holder can recover, for it diil not constitute a p'.'oviible del)t. Goldsmid ;>. Hampton (185^), 5 C. B. N. S. 1)4; 27 L. J. C. P. 280 ; Cf. Ex parte Havward (1871), L. K. 6 Ch. 540. 18. An incomplete bill (no drawer's signature) which is sent ly railwjiy and lost, is not a security for the pfiyment of money within the meaniuL'' of the Carriers Act. Stoessiger v. S. E. Railway Co. (1854), 3 E.&B. 549. 21. Every contnict on a bill, whether it is the drawer's, the acceptor's or an in dorse r's, is incom- plete and revocable, until delivery of the instru- ment in order to give effect thereto ; Form and Interpretation. 40 Provided, tluit wliore iin iicoGptance is written ^^ 2^- _ on a bill, and tlie drawc? gives iiotiee to, or -'''■''i''^""'- iiccordiiig to the direetions of, the person entitled to the bill, tliat he has accepted it, the acceptance then becomes complete and irrevocable ; (2) As between innnediate i)arties, and as n<<,"isitcs as regards a remote party, otlier than a holder in due course, the deliverv : — {(() In order to be eflectual must be made either by or under the authority of the party drawing, accepting or indorsing, as the case nuiy be ; (A) May be shown to have been ctuditional or for a special purpose only, and not for purpose of tiausferring the property in the bill ; I]ut if the bill is in the hands of a holder in due "wiR-nvMiia course, a valid delivery of the Ijill ]»y all pjirtiespieMuntd. prior to him, so as to make them liable to him, is conclusively presumed ; (o) Where a bill is no longer in the possession -'^''■''""''■'^'^'''* of a party who has signed it as drawer, acceptor or indorser, a valid and unconditional delivery by him is presumed until the contrary is proved. Sec 8('ctiuns 2 (li), 21* uml iintcs lunlt-'r section oO- Jleliveri/ actual or coHstrucfice. Sftden bill. 1. There must be a deliverv of the jiiiper, either aetnul or con" structive. First National Hank r. Strang', 72 111. 55!); Burson r- riuiitinj:ton, 21 Mich. 115 ; IJuxendale c. 13.'iiiittt, l^aw lie])., o Q. \i. Div. 525. 2. A constructive delivery is made wlien tlie pajier is intrusted to aiidther, and put in circulation by the custudian contrary to the orders uf the defendant. Jjursmi r. Iluntingtuii, ,s'(/yy;v/. ii. 'The acceptor cannot cancel his acceptance after lie has notified the drawer that he is holdim: the itill accepteil fur the bcnetit of the holder. Rej., 2()th April, 1837, iS, V. IM , 1, H2. But lie can do so at liiiy time whether within or after the two days allowed to accei)t, so linijj; as he has not signilied his acceptance. Liene, 2(itli Marcdi, isll ; LyoiijDth August, 1848, J. P., 48, 2,457; iMontpellier, 2i)th July, l!^:i(), J. p. 87, 1, (j8 ; 4 Alauzet 157. See also notes under isection 17 mill section 62, n. 8. Tin: J'.iij-s OF Exchange Act, 1890. 21, I. Tliirc is i'(in--lructi\t' ildivcry, ulicn the dcrrnilanl has [ivon ^Miilty uf 11(1^1 i<.'ein'c, in tailing to asciTtnin ihc nui iiiv i.i' lln' ciniinicl wliicli lie lui- siuiicd in t'livdi" of aiinliicr. Cliapniun r, Idtsc, i'l) N. V. I'M ; WhiliRV c. Siivdcr, 2 I/ui.-^. 177. Sec ncilcs under .: 11. l;ut see 1 lulls Till J'dUou'inci i/hislrdliniis ari'/'iinii C/nihncrs, p. 1> 1 . I!., who owes C. 10(1/., niake> a note lor tjie anioiii C. ]}. die.- am Itl I' note IS al'li'rwai'ds t'oiind anioiiLr his lit j)a\'ahli' to iiiiers. (' no riLiiit to this note, an 1 if it he'ii\eiiti) mill, he t;aniioi eiifoive it. Bi oiiiaLie V. •I Liovd, 1 E.\ch. :V1. I), makes a note in favour of (" holder (r. (/.. trustee iinde r ei iiniiosit h III ilci'i no [ivojierty iii the in ite. J.alter /•. While, L. It., ;") II. L lelivers It to a >lake- a.;i|iiii'i.< ). C. thereliy C, the holder of a hill, speeially ll)i|or^e< 1 ;)(S. t to I)., and ir in-iniii it hy post to X., lii> own aiicnt. X. in form- I), lliat he ha- reei i\ei| liie hill, hut does not Li'ivi' it to him, or iimlertake to hold il on his necouiit. (". (prohahlv) can revoke the Iransaetion and eaiicel hi- indor-eihcnt to D. I'.iind r. Hampshire, M. A- W. :!(l."i ; Muller r. I'omlir (Iv;;;), [)') Xi'W York It !'J."). .See mfra, nii. I, ."). 1. C, tl >U e iioiui-r o! a hill. in a letter ad>^l. i). li V liu' re::'iilation- ( d'lheKieili.-h To.-I ()lll> eaiiiio in t he e, a letter once p reclaim ed. If, then, the indorsee (jf a hill ;iuthori/(' t||,. loi'^i'i' to tiaiisniit it to him hy jxi-l, the property in the hill p to the iiii|or.-ee and the iiidor-emeiit heeoi; letter which contains the lull is po-te ]•: coiiipli te a-- -(Kill a- III' \ pai 7 : Sinrtoii 2 ]. ^■iidth r. ^ X. S. ;!2d. I nil' ■nful, V. 2[i 7. A hill is left with the drawee for accep'anci'. The drawee uvite.= an accejitanre on il. d'he next day the holder calls for the hill ; jn'i- merely informed iliat it is mi-laid, and is requested to call tli e next (lav 11. ■ In 1 1 the meantime the drawee hears that the drawer has failo ai'cordiiiirly cancels his acceptance. and the next dav d eliver.- iln' (lislioiioreil hill h to the holiler. hi< IS no acceptance; tl rawee was I'lililled to cancel it. han k of V 111 Dienu'ii Bank of Victoria, L. R., 'A P. C. .')2(). See ante, j), 31). H. A firm is indehted tei 1). X., who is a partner in tlie firm, m.^l also iiient lor 1). \\iite> the firmV indursement on a bill held I IV tiie lirm,and puts tiie hill with some other pa])ers of 0.'.'', of which lie ],;\< the custody. 1'his is a \alid indorsement hy the linn, and the pruncrtv in the hill'passes to D. Lysiiiht v. Bryant,";) C. B. 4(J. Sect. 17.ii.j. 9. The h (li'liverimj; it iiiiliir-^ement tislalcr. I) Giililiiiiis /•. 10. X., hy he (joes not (i('li\( r< it t(j !i iTi'i"! title, aL'ciit. Wilt S.%^; Arm 11. A. dra Il is sfi,/cii 1 iii'L'dliated (o jirrliap- ac.ni 7C. i;. X. .s. Aiiiir. U. Id.'} 12. i;. mak ilfl'elid liim--e lii'M liial if \\; to it ci'i'iain ol till, 1 Sira. ()7 l;!. ('., the till' expre-s c( llii'ivw.ih. II iici'('|iiur, the 11. ('., the lie iiiMv tret It ( thfhiil to E. aguml title, at it, lie eaiiiiot s lip llial the h IJiciiiuds li Iv' lU'uvrr the hil IMTi': .\l-a-; il'Aire P. c. :;i ,1.'. ('.,ihe|. ('. iiKiy >iiow I ill' iirlorsed li IVl.T-, I.. B. :, _ hi. II. ma.ki Kvi'li!ii'i' i.-- a' .-i'i:unt\ for a y Kx imrie Twoij AV.ry r,iiil,(t 17. Oral evid( iviii'w notes, p inailiiii->i|,],.; ( !!!. A (I. -.10; N' S. I) nil : 'I -'11, I'. ('., 1 I ( "tT. ('. r. .Ion I'liiaml c. Stevi Form a\ j I.NTKuriuyrATioN. 51 l-n'- - ^ lie 1 Ch. cv lu - I'lll' . 1111.1 1 111 ;.. .1, llfXt iiica. ,- I ho : I he n.l c. II. !l!lil IV tlie ic \a-^ i[n'rty . n. 0. 9. Tlic lidldcr tpf 11 liill sjic'ciiilly iii(!(irs('s it tu D., iitul dies bofoi'o g 21 (iciivcriii'i' it, Init his I'Xfciitoi' .-uli.-i((iU'Mtly iiiiiids tiic liill to I). 'J'lu' * '- iiiiliii'^t'iin'Nt Id I), is iiiMiliiJ, I'di' an cxciMittir is not thi' a;:('nt of liis tc'.-lalor. I), cannot s\i(' on tiic iiill. I'l'oniauc' r. IJoyd, I Exch. .'52; Giildiiiizs r. («iddin ri.-t.iri.il .li.tliwi.'C j. Vii^- >■ I ild'ind hi Illllllhal II *>.1^17I11» !.'., MHI.IH II I1\.-|HM1I'I |lll»\, tip 11 ei'i'iain ollice, and thai !>. wa-^ not >o resturei lill, 1 Si I'll. tiT 1. .lelleries r. An- 1.1, ('., the hdhU'r of a hill, indorses it In iilaiik' and hands it to j). du the e\|ii'c-.s cdiiditidn tiiiit he -hall fdrlhwilh retire cei'liiin nlher hills thci'fw ,ih. lie does not (id sd. 1). caiiiidt sue ('., and if he sue the iii;fc|iiiii', the latter mav set up ihe ///.s' lirtii. Hell v. Lord Inu'cstrc, l2t,». I!. :U7; Seliiiman v. ILutli, .i? L. T. N'. S. Iss. 11. ('., the hdlder df a hill, indnr-es it specially td 1). in order that he niiiy -ici ii ili^cdunted for him. I)., in hreiudi df trust, neii'dtiates ihe hill Id I'l. If he take the hill lioita Jvh; and fdr value, he acquii'cs II L'liii 1 mil', and can sue all the parties theretd. If he dd nut sn take it, lirtaiindl sue C; and if he sue the acceptor, thi' latter ma\' set up lliai the hill is C.'s. Lhiyd /•. lldward. If) Q. H. '.I'.l.") ; I'.arher r. Riclianl-, () lv\ch. (iH. Further, (". can hi'iu;! im aclii'ii aiiiiin-t Iv to neuMi'the lull or the proceed-. (Jniiu'erh'V r. Culhliert, 2 I!. iV ]'. X. K. llii; Al-a-'cr r. Close, U» M. k \V.'.')Til ;' Miitiyloll Seal r. l)ent, S iliiiire I'. C. :!i;». See ni)te< under sec. .">(l. ('..the payee of a hill, inihnses it in I). I), sue-i ('. a- indcirser. \ -iii'Wihat ho and D. wen.' jointly iniere-^ted in the bill, and that liii->ei| Id the latter to cdllcct dii joint account. DentdU r. - I.. R. .-, O. 15. .I7n. I . mil he 111 . . IVi.'i-, L. K. .' Q. 15. -17"). 111. II. makes a iidte fir 100/. jiiiyahli' td (", or order. ('. .-ues 15 Kvi'li'iice is admissihle to -hnw that the note was o'ivi'ii a-; cnllaleia -eenriu fur a runniui:' account, and what the state of that lU'count is K.viiiiMc Twd-ddd, I'J Ves.227 ; Ue JS.iys, L. K. 10 Kq. 107. /•,'('.)// fiiiilidct nil a hill liill In he rnntnulicU'd. — IT. Oral evidence to vary or coniradict tei-msdretlecttifa hill, '".,'/., to 52 The Bills of Exchange Act, 1890. ^ 21. V. C, !) Q. B. ChW ; Reed r. Rood, U. C, 11 Q. B. 2(i ; Hurt v. Daw, U. C, 1 Q. 13. 21H; AdiiihH i'. Tliunias, IJ. C, 7 Q. ]{. 2lt»; Hair,., Fnu.aif, II. C.,4C. 1'. 210; Ewiirl r. Wulkor, U. C.,r> Q. U. tllO; i\nnour c. fTiitoH, H. C, H (1. P. iVIS; Stroot c. Rookworlli, U. ('., 2ll Q Ji. i); llarvcvr. (Joarv, i:.('., 1 Q.B. t^iJ ; AdmiiH r. F..rli(_'H, ('.(J., l;Ui. li. iHi') ; 'I'urtouiis c Muir, U. Ji., H C. P. iJ. 127; Cliiilincr.,, 12, IH, [)2; Muoro jj. Sullivan, V. C, 21 Q. B. 445 ; llaimiiuii(| c. Siiiitii, U. C, l(i Q. B. ;ni ; Imperial Bank c. Brydoii, Ma. U. vol.2. p 117 ; Dccollo /; Kaniuisolio, .'!2 L. C. .1. 2;{(i. Seo Loiii-^iaiia IIciukh's ])i.'ost ; vol. 1., p. 230 ; Taylor V. Curry, lOD Mass. ;Ui ; Bylos, Mih ed! 112. IH. But it is adiiii.'^sible to show tiiat wliat purports to lie acoiujtlete contract lias never come into opoiative existence, or to inipeacii th coiisiik'iation, or to show that Mie contract has been dischai';j;('ii hv pavrnent, compensation, release, or otherwise. Ahrey c. Crn.\, L. il„,j V. r. 45; Ewin r. Lancaster, ti B. A; S.571 ; lliildiard r. (jluernev,Gl N. Y. 457 ; Maillard v. Page, L. R., 5 Ex. 312 ; Ciialmers, 52. Capacity and Authouity. 5;j >^ 22. Capacity arid AatJioriti/ of Parties. 2ti. Capacity to incur lialjility aw a party to aC"piicityof bill is co-extensive with capacity to contract; Piovided, that nothini!; in thi« section shall As t.. corpora- oiiiil)le a corporation to make itself hahle as (liiiwer, acceptor or indorser of a bill, unless it is competent to it so to do under the law for the time being in force relating to such corporation ; (2) Where a bill is drawn or indorsed by an in- '>''nv'ngor iiiii[H;teiit. faiit, mil jr, or corporation having no ca[)acity or I'lrson not, power to incur liability on a bill, the drawing or indorsement entitles the holder to receive pay- ment of the bill, and to enforce it against any other party thereto, Sn' si'ctioii 17. Cio-pordtiijiis : — Soe A j)|)Oii(li.\. rill t'nlluwin;^ corpomtiuiis have been held competent tu liecmne larlit: tu 11 1 111! or note : — 1. All tnuliiiL' corponitiuiis in the conr-^cMiftlieir trade. J^roiij^ht Manciu'stor Water WurUs Co., .'5 \i. k Aid. I. Si'e also Joint Stock on luiii|ian ics' Act, K. S. ch. 118, 8. 35 ; ch. 11 'J, 7(5. 2. A Joint .-^tock company is incorporated for the piirpo-i of t'oiiiiiiiji; ii .si)ci6t6 ano)i!/ine abroad for the con.«truction of railways. Till' directors are empowered by the memorandnm and articles of as- ft.K'iation to do whatever they may from time to time think incidental Ml' iiiiidncive to the main oiiject of the com] lanv, These ter ms Cli ver the issue of liills, and such a company is lialile on its accept- tiiice. . ./i*c Peruvian Railway Co., L. it., 2 Ch. 017. MaiinfaeturinLf comiiatiies. Mott r- Hicks, 1 Co' (IW. ,') LUCI bach I', l.e Sueur Mill Co., 2H Minn. 2'Jl ; Joint Stuck Cos' Act, Ca. Rev. St. ch. lis, s. :k); ch. li;), 8.7(5. t. ]5uildin;j: societies. Cooley v. Dominion Building Society, 24 L- C. J. Ill ; Societe de Construction dii Canada r. La BaiKpie Natio- niilc, 2t L. C. J. 22(i ; Snarr i\ Toronto P. B Soeiety, (J. C. 21) Q. B. iilT; Davis c. West Saratoga Bldg. Union, IVl Md. 285. 54 TiiK r.iu.s or 7<:xni\NGE Act. 18'.»0. 22. '), A iniitiuil insiirtii ICC ctiiiiiiiiiiv III scltl cihclll nf Ji II— C\ ell It Hijriicd liy tlic |irc-lii|) ol' 'I McMridc, U. ('.. 2lt (). H. I,'!. Sec iil-n Lrtcllu r r .^rli,M,l (', ni I irmiln i\ iii> inicr<, ct<'., I(! I!.. Ij. I 111. Sec cii>i'f< ciU'il in Mikhic, I.iiw (if ('ur|Mir- .'^i ft'lnn.<, ■? :{2-. ics Sec iilxi The l!niil< A<'i, n;! Vi<'i. c. :!i, ss. r.i, do, kki. The t'(ill(>\vinL't;iii|iuiiitions lia\ f hccn held inciiimlilc nf licint!' |)iirt f(i u liill or note : — 7. In Kii.ulmiil, u ccir|mriili(»ri iii';Liiiiiize cliiiilcr. lirrii'jiiinii r. iMiinchcstcr Wntcr Winks (',.., ,'! |!. ^ A 1.1. I The niic IS (l:llcri III III the rnilcil St lie iMcMi.>i CIS r lleiil, 1 (liani ("as. .'Id j I.c Cai lull, cle., linad (\). r. Ailaii*, f^.'i Iml. "ill. See sii|ira, n. ,^. A railway cnviiuratmn, unless ihc |Mi\ver lie c.\|ire^sly u'lveii, Ovcrcnil r. Mi,l\Valc< Uy. t'.i.. I,. U. I ('. 1>. lill): T..|.piii-' r. Hiillii 11- Mile IS iMalily he nimlilieil m Canaila ii HMiiiricli *• mlcr V Act, Ca. Kev. Sl..eii. Kill, s. (1, siil III. SllIM |ira, II. :;. II. A niininu' cdiiniaiiv (I ilhcrt /• McAiiiiaiiv. r. ('. 'JS O i{. I ; r.alcnian r. Mid Wales Uv. Co., L. H. 1 C I'. IHH ; Cliali iici'.-,;)i, Contra ill the I'liitcil Slates. Malioiiev M in inn' Co. r. Aic^lo Cnhtciiiuii ]{anl<, .\iii. L. liej:. l^s-j, j,. Km ; Mo^s r. Avcirl, Id N. Y. I IH. Id. Coiii|ianies iiu:oi'|)oialcd iindei' llic Ciiih|iaiiie-' .\i'l of (^iiehec, .'il \'ict. c. '2.'), niile-s the |i(iwer he 'iivcii hy the hy-laws of the coin- han V. Coalcs 0. The (Ken Jirick Co., 1 It. C. 121. 1 1 . Mniiici|iiil Cor|ioralions, unless e.\|ires>ly autlioriz(d hy staliilc I'acaud i\ Coriioraliiin of South Halifax, In licvicw, 17 L. "C. K. .")(K Martin i\ Ciiv of Hull, III II. L. 2:12. lliii held valid I Hole sionei hy till' mayor and .-cerclary-lreasnri'r, when it is neither allci^cd iku ]iro\ed thai the Hole was i:i\cn wilhont authority and without lawful consideration. In a]i|ical, Cor|ioralion ^i\. 12. The iircsideiil and secrelary-tr'a-urcr of s(diool eoiiiiiiis>i(in- ci's, wilhont a special aiitliori/.atioii iroin ihccorporalion. Lclcllii'i' r. The Sclioid Coiiiinissicjiicrs of ( Inialohouan, Id Ii. L. I lH, rart IKU'-f . Si'i' also section 17, n. '>, ami section !I. wi L">. A ]iartnei' cannot use tic nam col the linn oiitsiiU' of its hiis lioiit the consent of his copartners. I'liion Hank r. IJnlmcr, 2 .M IIIC-S Ii. HSO ; Graves i\ KcUeuberircr, T)! Ind. (id ; Livinjj;ston r. Roosevelt, 4 John-. 251 ; Lcvicson v. Lane, .S2 L. J. C. P. lO'; Tudor, ;!rd cd. p. 484, where all the .authorities are collected. 14. If one partner in trade hei^omcs a party to a hill hy nsinir tlic finiry name, the act will render all the purtiicr.s liable to a bona Jidc lielder for VI ili.ir CO pani skecii. ;i I L. CaI'ACITY and AlTIKiIMTV. ii.) \l„l\ry \\,V Villllr, llllllnlljli llir nllirf | i.'ll'l ricl'- lllliy I M' c li tVilll'l" I 1 1 V ill. ;|- iM jai'Mu r. lli'lnlir-Mii C, ('(Mvi'ltf, ('.('. Id*,. It.il'JI; lln.j:y;t'. sk.-h. :;i I,. .1. c. I', i:.:. ; Tmlnr, ;;ni ci. 4f<:>. Sia- -(•.•t, 'j:!. On. \'i. Tiir law ini'^iiinc-' liiiil cacli imrlni'i' in inilr i- i iiti ii-icil Willi ii u>'iu'ill i.i -i^iii'l liy one, tlu' ii'^-t'iil tiT llic Iliiii i> |iri'~iiiii(i| ami I lu' vini.\- of |iru\iiiu' till' I'uiitrury i'c-m un tliu-i' M'cUiii'j: to rclnil lliis |ir('siiiii|i- iK.ii. Cily uf (ila-j:n\v Hank r. .Miii'iltMili, [J. ('. 11 (', I'. .."iS; TikIdt, l.i.i'l. Va-., ',Ud f(|. |i. IT I. Ill' may cviMi liiml tlic tirm liy a ;:uiiiiiiilfi.' witliiii till' -f'i|a' (iT till' |iarliit'r"iili..-^i'rl. .'!. Sec >i'ii. X'l. IT. S|M'i'iiil iiartiiiT-'liiiw t'lir otlicr iinrjui^c- than ti'aili' caniint i-ii.' anics iiiilc-'s -|icciallv aiil III iri /.I'll hv all llic iiarliK'r.-^. (irccn-laiU' /•. ii.iucr, 7 H. iVC. tii!.") ; l)i<-ki'nii I li'WCM'i', tlif imliif'^atioii nf a luitc ly a nu'inluT of .^ncli u |iai'tn(i'-lii|i fm' a liriii ililit will ]ia.-> tin' |.rii|iiTiy Id till' iiii|i)i'scc, I'vi'ii if dcint' uiilidiit ilu' kniiwlfilgc ol hi-t r I parliiiTs. Smith c .li>liii-tiii, .'1 II. iV I'.'l'l'l. ITa. If it he .■^lidwi' in llii' ca-r i>\' |iailiici'-hi|is wliicli arc iidt uf u iiiti'iiuitiU' i;hai'iii't('f that the |iii\vfr of tmi' iiaitnci' In ili'aw uf ai'iu'|if, h.ll- I'f i'.\('liaii;j.v fdi' the iiai'tin'r-lii|) is thcr iici.'C-^ai'y in that iiai'ti- 'uliir instance, or is umihI in -iinilar |iarlncr-hi|is. it will lie im|ilicil liv law. Dickinsmi r. Valpv, 111 I!. A C I'l'^ \ iJidwii r. Kiili;cr, I) lliiiliit X. s.',;!. 1"^. One parlnci' nt'u (liiii iij'aiini'ncys ami -ulicilnrs ha- im iiiitlini'iiy In ii-r the name (if till' lii'in in imlui'-in^j: iidtes. Aiithdi'ity, lidweviT, inay lie pi'csiimcil from the fad thai mi dtlici' ncciisidM- he had imldrscil 11 tlic same inaiimT. Wm kman /'. .MeKinsiry. I'. ('. 'Jl (}. I!. (I'J.'l. !'.>■ After (lissdliitinn mmle piililicly known, a partiui' has no lii!i'/ti'|)()wei' Id hind hi- liiiii. I It alli '•. Sam-dii.l I', k .\d. \~'l : Mayijr r. .\lkiiis, 'j'.M.a. .\n.."i--ii; Lii-k /•. Sniii h, S liarh. ."iTO ; Itaiik of Mdii- i.val r. I'a;.'e, i)S Hj. jii'.l. Itui he i-aii tran-fer lulls [laxalile to the 1111.1. Kin- r. Smith, I C. ^ I'. l()f< ; J.ewis /•. Reilky, l' g. IJ. ;!l',t. Miirricil iranicii : — Ai*e likewi-e iiiea|ialili' : I'.ia. In (^ueliee, mari'ii'il Wdinen wilhdut the authdri/atidii uf llirir liii-liands. e\ en for thfii' nwii dehts. I)aii/.ijer r. IJiteliit . ."^ L. (". .1. Ii'^i: IJadeaii r. Hraiilt, 1 L. ('. .1. 171 , nverinlin,;.; Kivct r. Lcdiiard, I I.. ('. .1. 172. 1)111 a mairit'd Wdinaii aetinji' as the a.iicnl i'\' her liiis- land may si^ii •,\\i>uv per /irac. Xdri'is r. (\imldn, l."> Q ]j. '•'■ HI. Ii I- -iillicit'iit fdi' her to siiiii, " piT prdeiiralidn df my hits d, "' ».ili"Ul u'iviii,!!' his name. ISnissc Is. I.-Hh Fehi'iiary, l.'^i-'s;^ aiiu I 1 1 h JiiiH.l.^sD; Angers, 2Tth Fehniaiy. I.^'l'.t.all cited in I Uodarride, i')'l'.K 2l). The iiKM'c siiiiiatiii't' of the hiisliaml is suHicieiit, J(.i|iiist(iii r. Sio;i,:!L. N. 171.' 21. In (Juelicc, a marrii'd woman separated as td |ir(i]iorty caiiiidt I'liid herself fur thcdidit of,dr as suretv for, her hiishand. Scantlin r. Si. I'lerre, 10 U. L. r.2 ; .Idddiii r. DnlVesne, i^ L. C. K. l.^!l; Little /■. i»i'-'aiiard, 12 1,. C. If. 17.^ ; I5vrnes r. Triideaii. II L. ('. U. 17 ; Shearer (■.Cunii,ain,.j L. CI. 47; llamel f. Panel, i'. C. 2, App. Cas. 121 ; J^ 22. 56 The Rills vif Fxchange Act, 1890. ii 22. Wiilker v. Crolmssa, I) L. C J. 7(; ; Pari-caii i: I'riidcaii, l.T R jMart ii\(i t.M.L. 1{., IS. C.lf^l iKlockc.rhaiubcT 111,.; IL. C.J. 2'J, 11 L. N.'l.")2: If) Ca. S. C. 1^ .iZ;) Cli laiidclaiue r Valli'o, It; L. 51 ; Union IJaiik r. Ga.ijiion, 17 U. L. 11.^, I') Q. L. R. 'M ; Artis ■iiir V ruv, IxlU'. but:. (• 1 .('llllCU X, (}. L, li H5 : lilR'amuo r. Caillc, 1 L. X. 'MO: Iialieaii /■. Ijcruiix, 1.'! R. L. ;57riineai It'. ] iariR s, 2.3L. C. J. 2R w) W slie lias I it'llell Ited liv tlie transactiiin and \o the extent rif tliat lienelit. Mai no! c. Rrnnelle, 15 L.C.J, i 1)7 ; Artisans Rrov. R x'Miieux, 15 (). R. L ;io. 24. If she he a tiiKi-c/ifiiuh- pvhliijiic i>v tradrr in tlie course of lier liiisiness, even witluMit ti ■ irnua rd V. I. C. R, 47. Rut ih lachape -ignaturcdr ant' u'lzatiou of her hushain 7 I.. C. J. 2S;); Reaiihien r. lluts.m, 12 h hill is |uainteil with the fact igned !iy a married Wdiiian, nnirchniKlcjniliUqite, must u' lioMer 111 due course, act 1 that huw that the note was ixiven in t n. [la. \v course o f her business. See .sect. 25. In Out irio and the otlier pro\inces, uiarried women cannot iiiiid themselves miles- they have separate property, and to the extent ot such estate McH enrv r. Davis, R. R. 10, E .-i : M errick p. Slier- Iv r. C, 22 C P. 41)7. Thev can likewise endorse as surety wool heir iiushani t(jr I! Is to the extent of their private estate. ^lercluint.s Rank 2'.t Chv. 413. Jfinors : — 2(1. Minors and infants incur no liahility hy drawine, accept 1112 or endorsiiiii, unless the transaction he ratitied in writin'r after majoritv or for necossaric )f lite. l< isiier i\ Jewett, N. B. Bert. ;{5 : Cas-' ram v. Chapais, 2 R. de L., 2tl(; ; Yules r. Wales, 12 L. 0. R. 21)2 ; Davi Kerr, 17 R. L. 020; Tiede man, j §48. In Quebec the miu or must also alleixe and prove that he lia< been injured, and in what manner ami to what extent, and he can relieved onlv to tl e extent of his injurv. Cartier v. Pellettiei 1 R h I, 20 h 4(i ; Rluteau r. Gauthier, 1 Q. L. R. 1S7 ; Roiudier c. (^iran C. J. l.'!4 : Ga .11. I)., an (dd man with enfeehleil sight, is induced to sign jii.s iiiiine on the hack of a l)iil, hy heing told that it is a railway guaran- tir which he had jironiised t(j sign. The bill is negotiated to a holder ill due course. I), is not liiihle as an indorsei'. Foster c. Mac- kiiiiii'ii, \j. R., -I C. P. 701. See notes umler sec. ;>0. Til eiifun-i: ai/fdiisf diiu uilicr pdrty. See also sections 54 and 55 as tu c>to])])els. '.VI. The incapacity of one or more of the jiarties to a hill in no way iliiniiiishes the liahility of ; e other ])ai'ties thereto. (Jrey r. C'.\. .So the iiicapaeily of the married woman cannot he pleaded hy hci' indorser or iiuarantor, ilouneur d'di'ul. Xorris i: Condon, 14 Q. L. H. IS4. I'll. The nullity resultingfrom incapacity to contract may be oppoa- od to a hoidei' m ii'ood faitli for value. Orleans, 3rd .lulv, IH35, S. V. .'i.'), 2,417; 1 Pedarride, ;!04; Sjirigg r. Pois>icr, 5 Martin N. S. 50 ; Oiillon r. Matherne, l^a. An. lyO ; Clialmers, 54, 55 ; Tiedeman, § 4H ; 4 Aiiuizet, n. 1270. See infra sect. 27, 2'J aiul 30, and especially notes umler section .'!0. The Act has disposed of the subject of capacity of parties to a Capacity, bill in the few words contained in section 22 : " Capacity to incur lialiility as a party to a bill is ca-extensive with capacity to con- tract. " Questions of capacity luu.st therefore be determined according to liie laws in force in each province. In all the provinces, as well as in England, any per.'^on may be a party to a bill, except married women, minors, and persons insane or interdicted. Other disabilities exist under Sduie continental codes, as to clergymen, military men, prothono- taries, judges, singli! women, exchange brokers and non-tradi'rs, but they liave no application in Canada. Georgen v. McCarthy, Stuait's R. Oil; Bowie V. Skinner, ibid. 54. in France, a party to a bill is amenab o to the exceptional jurisdiction of the Trihunaux de Commerce, and is also subject to iin]irisonment or confrainte par corps. And for that reason, v a]., women are incapacitated from becoming par ies to a bill. But 58 TlIK r>lLLS OV EXCIIANGH AcT, IS'.K). ^ 22. Mnrricd women. in Canada, as well as in England, tlion- is no •' 'rribuini! do Coiumi'ii-'c " and no iui|tris(inniiiit tnr drl)t, civil or <'(iiiiui(rcial ; and altliouiih in souu' of tlu' ])i()vin(\ s, in (^mbic Ini' instant', a snniniary jurisdiction or procedure lias been ])rovidi'd liu- the recovery of bills, all persons cajiable of coiitractinLi'. wli ther tra- ders or non traders, of either sex, may be parties to a bill. The only limit is that HximI by tiie laws particular to each jiro- vince, with regard to the cajiacity to ('ontraet. and ;il,-(i by the laws of the Dominion with regard to coipoiMtioiis. The disabilities affecting married women, infant^ and minors, insane persons, etc., are not th same \\\ every jirovinc Quebec, no married woman can ent^r into a contract without the authorization of her busbaml. 8.'e supra, n. l!l(/. and also C. C. arts. 170, -!!)(; and \)^{\. If si'p irated as tol)eilaud board, scjiiiree e merely sejiarated as to property, C. C. art. 1422. If se])arate(l as to property, whether a trader or not, she cannot bind hei self for the debt of, or as surety for her husband, n. lil ; but with that authorizatioi i, slie may nicur a it or l»econie surety liir t bind himself toLi ther wit) a third l)arty. The iiusband caimo lier. ami must ai)pear only to authoriz.' his wif' : ot'ierwise art. 1I5U1 of the Civil Code would apply: "A wil' annot hiiiil lierself either with or for lu'r husband others tl lan as heinu' common as to property ; any such obligation c 'Utiaeted by her in any other (|uality is void and of no effect ;" and the old statute 4 Vict., c. 30, s. 3(5, upon which this article of the Coile ba.sed, declares that any such obligation '• shall be absolutely and void to all int/ntsand [lurposes whatsoever." If she be a trader, a married woman can biml lierself in th was mil course ■tl of icr Dusincss, ( ven without the knowledge of her husbaml. ar.tliorization ni sucli a case being presuiueu. ^npra, n 24. if.l denies that the bill was given in the ccmrse of her business, the holder willbebouml to prove that fact ; and I'veii if the bill be held by a third l)arty in good faith and for value, it seems that he will be bound to make such proof, whemvi'r it appears upon the foe of the bill or otherwise, that a married woman is a party to it, Sections 29 and oO of the Act will not protect hiui in such casi^, Capacity and Authority. 59 iiiasi iiuch :is the bill is iK)t '''o(iiiH)lrti' aiicl ri'iiulur (Hi the t';ve,' of S 22. it, " Cl'.alimTs, p. 81, says : " It'tlu^ bill itsi'lt'cdiivoys a waniiiiir, ciircit ( in/itor, tiu'lioMcr, lidWt'Vcr Imiust, can af([uiri3 no bi'tter titli' tliaii (lie ji.Tsoii from wlioni he tdok it had. " The fact that iih:ll is signed by a uiarrii'd woman is a warning to him, and be- fore' takinti' or discounting her jiapcr, he should en(|uire I'rom 111 r or lu r representative as to the true facts of the case. Even if her dLchiration be in favor of the validity of the bill, it IS do con I ubtful indeed Avhether a hohhr in due coursi' would suc- iiiain>t lh;r, wl len she afterwards establislies that her dechiratiiin was false, and that tlu' bill really was for a debt of lur hu-band, fur t lie princijile of the (Quebec laws, applying to the iiica]iacity oi'married wiiuu'U tn contract, has always been lirld to be of public order and public policy. Jjikewise. ior the same reason, art. KlOi) of tlie Civil Code jirovides that the sini- iclaration made by a minor that lU' IS o t" a lie f (irms no dar to ills obtaining' relief for cause of lesion. Soe section o<>. b Th ila intiff must prove not only his d I'aitli. and thai he has L^iven value for the bill, but that the married woman sii:iied it for her own debt, or, if she be a trader, Inr an obliga- tion contracted in tlie ceurse of her trade. Where a bill is complete and regular ujion its face and cou- tuiiis no warning whativer as to the incapacity of any party to it, it would seem thatevtu in that case the holder in due course ca iiiidt recovc r from nia rried W(in,an. wlu n the ])ill has 1 >een uivrn for tlu' debt of her husband. It would not be sutHciiiit uiidi r .section 'AO. for the plaintiff to jn'ovc that "subse(|uent to the alleged fraud or illegal ty," value has in good faith been liiscn for the bill. The bill is net j;uu'ut be obtamed, it can only be enforced against her sei)arate estate. Chalmers, p. 5G. When the wife has no separate estat(>, under the comin ii law of PiUiiland, she cannot bind herself by a bill or note, without tlie consent of her husband , and so completely void is her obliiiation, thathcr promise to pay it, made after the death of her husband, is not binding upon her, unless it be based upon a new consid- eration. Where tlie husljand is an alien, or civilly dead, or where tlie wife is divorced, slie is on tln^ same footing as a single woman, which is likewise the case in Enuland when she is judicially separ- ati'd as to bed and board. 20 and 21 Viet , c. 85. But at com- mon law, a judicial separation has no such effect. Chalmers, p, 50 ; Tiedeman, s. (il. Minors and infants incur no lial)ility on a bill, unless it bo uiven for necessaries of life, or be ratified after majority, n. 2(). This I'atification must be in writing, signed by the debtor. Out. IJev. St , c. 117, s. y ; C. C. L. C. Art. 12::}5. This is the law in all the provinces. See also Tied* man, s. 46. In Quebec a minor can be relieved only to the extent of his injury. Supra, n. 27. But if he be a banker, trader or nv chanic, lie is not relii'Vable for cause of lesion from contracts made fir the purposes of his business or trade. C.C. Art. 1005 , but this rule does not apply to the other provinces. Tiedeman, s. 41); Chalmers, p. 5(). interdicted persons, lunatics, persons intoxicaUd, like minors, cannot be pa'ties to a bill, except when given for necessaries of life; and with^ that exception and otlu'rs noted in the Quebec cases above, a bill or note given by these persons is absolutely null and void even in the hands of a holder in due course. As in the case of a married woman, the bill is not only affected with illegality, but has no existence so far as these incapacitated par- ties are concerned, Tiedeman. s, 48, says: — " It has been very generally held, that an infant cannot make a note or bill which will be valid for any purpose. It is held to be absolutely void. " Id. s. 53 : — " It would seem to be abetter ruU;, that a lunatic's contract is voidable, whether the other party is ignorant of or ac(iuainted with his mental condition." Tiedeman cites many Capacity and Authoritv. 61 casos ill support (if tliis rule. Id. s. 57 : — " Tlio l(\i:iil oflFrct of § 22. coutracts, mado by one in a state of iiitoxic-atiou, is affectt'd in the yame way by the intoxication of tin; coutiaotor a.s tlu-y aro by bis insanity." A corporation incurs no liability by drawini:^, indorsing or Corporation?. ac'Ct-'ptiiiLr a bill, uidoss expressly or iniplicilly empowered by its act o[ incorporation so to do. The mere i'aet of incorporation fur the purposes of trade would imply caj)aeity to contract by bill. In the case tif non trading corporations, the p^wt'r must be expressly given, or there must be terms in the cliarter wide enough to include it. Si'e Joint Stock Companies Act, U. S., eh. 118, s. 35; ch. 119, s. 70. Canada Joint tStock Companies Act 1877, sect. Gtj; Stephens' "Joint Stock Companies," p. 207. See Aiipendix. It is contended, and apparently with reason, that provincial legislatures cannot grant to corporations the power to become par- ties to bills or notes, the subject of bills of exchange and promis- sory notes belonging to the Dominion Parliament exclusively ; but if ineorporated I'or purposes of trade, the power m.iy be exercised under the by-laws di'the Company. Supra, n. 10. Finally, seetiim 22 of the Bills of J^]xchan<;e Act, sub. Tnclorsomont sec. 2, provides tluit wlien a bill is drawn or indorsed by an tated imrsons. infant, minor or corporation, the drawing or indorsement entitles the holder to receive payment of the bill and to inforce it against any other party thereto, though from want of capacity these per sous may not be liable as di awer or indorser. See also Civil Code, Art. 987. Can a married woman endorse a bill payable to herself, whether the paper be executed before or after her marriage? Will an indorsement pass the property in the bill? Section 22 is silent as to this point, and also as to indorsement by insane or inter dieted persons, and having provided for the case of an indorse- ment by a minor, infant or curporation, it would seem that the rule therein laid down does not apply to the indorsement of the otlier incapacitated parties, according to the maxim ^^ expressio inn'us cxclufio est olterins." Tiedeman, s. 63, who examini's this question carefully under the common 1 iw, says that it is certainly true that she cannot recover or exact payment of the maker, drawer or accep- tor nor will payment to her discharge thi; persons liable on the paper. Only the husband can receive pnyment. " The married I I, I.Ik G2 TiiK Bills of Exchange Act, 1800. S 23. o.-S(iiti;il to Hit woman,'' atlds Ticdoniun, " thorofoiv, wlio is the )tay>'(' 'u a JK\i:()tiablt' instruuuMit, cannot pass a logal title: to tlir iiislrnniiiit, nor l)in(l liorsilt' in any way by an intlorsi.'mi'nt, witliont tiic con- sent of till' hus!)and." J5nt it si'i-nis tliat under tlii' iMairird Wom.'n's Property Act, the wile's inihirscnient of her owi paper would hi' valid, and would make hei" liable to the extent ol her private (state. Snpra, paij;e (10. Whethi-r the indorsement be valid or not, tlie bolder may maintain an action on the bill auainst the draw( r, acceptor or maker, on the irround that the niakiT or drawer is estojiped from di'uyint:' the capacity of the payee;. l^o al.-o li the indorsee of the marrii'd woman himself ind(»rses the in>ti anient to anotlier, his indorsement warrants the legality of tiu' nianied woman's indorsement, and lie is estopjied from denying i(. It sei'msthat no other conclusion can be drawn from sections 54 and 55 of tile Act. These rules will also ajijily in Qui'bee to bills and not' ; pay- able to a married woman, and in all the provinces to inuvrsements by lunatics, insane or inti'rdicti'd persons. See Tiediinan, s. 5(1. In Quebec a bill is persoinil property, and when payable to a married woman, the husband alone can collect and sue upon it, if there be community of propt-rty. Where tiie wife is separated as to property, it forms part of her separate estate, and a [layment made to her is valid, but she cannot endorse it or sue upiMi it without the authorisation of Ikt husband. Tf the note be jsay- in tl le course ot her al)leto a marrieu woman, nKirvlnuKlc piihl kjhi trade, she may t'lidorse it alone, but a suit I'or its recovery must be taken in her name a-sist' d by lier husbaiul. It may In' mentioned lure that under the Bank Act, s. SI. at'y marrii'd womnn, minor or other pi'rson dis((ualitied by law to enter into ordinary contracts, may make deposits Aviih a ba ik and withdraw the same, provided it be in sums not exccedint,' at any time the sum >f Mve hundred dollars. See also as to dc lOSl ts in Savings JJanks, 53 Vict., c. o2, s. If! Tl tntal ;imountof such deposits in a SavinLis Bank caimot exceed $2()(h'. sijrniiturc i>J{. No person is lial)le as drawer, indorser, or biii'y- acceptor of a bill who has not signed it as such Provided that: — CArACITY AND AUTIIOIUTY. (^/) AVliei'c ji person signs ji bill in a tnule or § 23. 1 1 • !• • 1 il •(•111 KXLUllliuUb, assuiueil niinie, lie is Iniule tlicreon as it ne liad siLLiR'il it in li's own nauie: (A) Tlio signature ol' the name of a linn is eijui- valeiit to the signature by tlie person so signing of the names of all [)ersons lia!)le as partners in that linn. Sc'l' Hl'cMlcMl- 17,21 )>, ,)i), .).^ aiK 1 DO. Si'/iiulnrcs : — A.- Ill siii-iiiii iires ulitaiiicil liy Iraii'l, ~('t' imtc's iiinlci' si'ctioii 30. TliC rulli.wiiiL'- si;:ii;itMivs hiivf hi'on hcM suiHcieut : — 1. -iirnalure of tlio iiiii!\iT (If iliawcr at tin- lic>tti>m nf tlio iii>:- Inniii'iii . at llu' tujt or in tlu' iiiii KiiiLtlit r. Crm; litnnl 1 i<: ;i(l ; ^alllllk'^.-lln r. .lack- ^(.iii 2 IWms. a 1'. 2;;s; Tavlur c. Du\>h 'V Sua. :i'.lli; 1 Uaiid. (Wl A oi'ii-> or iiiark in the iuh'scik'c of oiif or 1 wo witnesses. C I I'll l~liaw er>nn (• I'ai Amli rsoii c. I' (liiiii- I.. 2211 1 1(1 L. C. II. ;!(l(i ; Xoail r. Cliateauvert, 1 1{ tin, 1 L. ('. K. 21',t; Tliiirher r. I)e>6ve, M. J.. 1{. 125; 'ark, H L. C. U. 4"".) ; overruling Jjaiiueiix r. Casaiilt, 2 .I(ines r. Hart, ibid, 58. The |n(-en 1 ; (ieoroe i-. Surrev, 1 Mooil A -M . Alt' onl ')■) )lil: WillouL'-hhy r. Moiilton, 17 X. Jl.2().'); llilhorn /'. (ai. t-2 : 1 llanduliih 01 ; Pirie r. Smith, Ucss, i Tead. Cas. 4S. See 'A. A peneil siLiiiature or mei'e initials or a siaMi]i, il' intended as sig- iialiu'i'- It. C. 1 r. Spirci'. ti ('alon ('. Caton, L. II. 2 11. L. 1 l.i ; ISennelt r. J>ranilitt, \j '. 2s ; Sauiiderson r. dark- 2 \i. A 1'. 2.".S; Mciehants ]5ank Brown i\ Hutehers" IJaidi, Hill 41:!. I'irie W efii 4:5 r. SuiUli, supra. Chaluiors, 257. ■I. 0*((r/T a^ to a signature priutt'd in the ordinary way. Saunder- son '". .Iaid Cli. Ai>i). (;54. See section DO. 5. I'ut in Quchec, liil d niite- signed hel'or" a nniarv in the nota- rial ic! a.\ 1.1 it valid. (ira\elle r. \U audnin, 7 l.A\.\. 2SD; L iieosto Clia\ivi: I.. C. .1. ;{:iD; Sooiiiu de la Salle r. iJerueviu, 15 L. V IL 4:1^ : i'iu'eoii r. Dancnais 1 7 L. C. .1. 21 ; drntra Murin i\ Pi'Lrault, L.C. ,1. 0.) ( revier r. auriole. (> L. C. J. 2.- S I'e al-^o Hr uiiet r ,lond( . Iti L. C. li. :il7 ; Cass 15th March, 1S25, lOth Aunust, ISIil. bth Nnvei nher lS;i;i, 21st Fehi'v., iSiJS ; (rreiiol)le, 17tli Xovenil ler ls:!(;; 2Sih .ianuarv, IS.'M; 2s:th .January and 2Dth .liine, 1S.S5: Bor- ili'aiiN. auuarv ISltD, c\ t(([ in I Bedarride, (I 2 id. un. Ilai;, »;(.2; Aliier, 7th Mav, 1S70, I). 71, 2, 1, liej. iiOtli Julv, ls;is, cited Ml 2 Pardes\\\< iindtT seal arc iKit valid. Wilson r. (lalos, 1(1 Q. B. ; Fostor r. (icddrs, 1 J.. (^. 1!. 2;!;) ; Cn.ucli r. Credit Fmu'ier, L, 1!. S il |i. :iS2, ;}p;; ; Jierritt i\ Cole,!) linn. R. 1)S ; 1 Itandolpli, 04; 'J'iodeiiian, § Via. See Ca. liaidc Art, ,')'.) VwA. c. .'U, ss. ;j8, 51). 8ee svction !)ll. 7. Every sijinature or material |nu't of a liill or note is presuinfl gennine till denied (in (^neliee at least) liy iitHilavit; 2(1 Viet, e, I I,-, H7; Code of Civil Procedure, art. 1-15; I'lvan c. Maio, 12 L. C. 1!. ,>< ; Keilv r. U'Conncl. l(i L. C. 11. IIU; Dorwin r. Tlionii)son, 8 C. L. .1, IMOT Milloy r. Farmer, 2 L. N. 1^<2 ; Clark c Kxelian,L'c_15aiik, I! L.N. 15 ; I'ai'a' v. Ponton, 2(j L.C.J. 155; Dcsilets r. Traliaii, 5 K. L. 52. H. As to j)roof of sirrnatures in Quebec, see 17 L. C. U. 4So ; Lurd V. Laurui, !) L. C. J. 71. y. The third party for whoso account a hill is drawn, called >e (liiiincur (rorilr(','i!i not liaiile on the hill. Paris, '.)th March, l!^;i2, S. V. ;V2, 2, :!;)S; Cass., 27th Au,unst, 18;52, S. V. :{2, 1. 5(il; 2 Pardessiis, 2S2 ; 4 Alauzet, Hi ; \nu;iuier, n. 170; and he has no riirht of actinn ajzamst tiie acceptor. Lank of V . C., Rnttan22 Q. P. 451 ; Corjioratiuii of Perth I). McCregor, U. (\, 21 Q. 15.45'J. 10. The indorser of a hill iinlorsed in hiank discounts it with ii hanker, without indor>inii' it. lie is not liahli'. Newman, 1 Ld. liavm. 412. Lank of England c. A question of sonic practical importance to illiterate persons in Quebec presents itself under this section. Can a bill or note be made and signed before a notary in the notarial form? In the first edition of this work, in 1800, the statement was made, upon the authority of Morin v, Lejzault, supra, n. f), that such a bill is valid. (') Soon after in 1865, the point cauic directly before the Court of Appeals, where it was thoroughly discussed before Puval, C. J., Aylwin, Meredith, Drummond anil Mondelet, eT.J., in tlie case of Seguin de la Salle v. Bergevin. Mondelet, J., for the Court, said : " We are all of opinion that such a document is not a note or bll/et ali'ected by our Statute, It is in no wise a promissory note such as included in the cate- gory of notes afFected by our Statute." The motive of tlie judg- ment is that "le document n'est pas un billet dans le sens de la loi d(( CO pays." In 1872, the question came up again before the Court of Appeals, Duval, C. J., and Drummond, Badgley, and Monk, JJ., and the decision in Seguin de la Salle v. Bergevin was re-affiruicd. Drummond, J., dissenting, believing " it to be incorrect in prin- ciple." Badgh'y and Monk, JJ., were inclined to the same opin- ion, but woidd not depart from the views first laid down by the (1) Girouardj Lettrcs de Change, p. 43. CArACITY AND AUTHORITY. 65 Cnurt of Appeals. Cliiof Ju.stieo Duval and Caron, J., bolloved the caHi' '' to iuivo been correctly decid. d." Ill France, under the Code, the question was for a longtime debated ; Merlin, DuviTgier and Masse boldini'tbattiie bill could be made in notarial form, and Troplong and Dalloz maintaining the contrary, Pardessus suppoite'l both sides, — the one in liis " Coiitrat de Change, " and the other in his " Cours do Droit Ciiiiiineieial. " See 15 L. C. 11., p. 4!>0. Hut it is now a well fii'ttled rule in Friince, that a bill or note may be in tlie notarial form, and that even it may contain the stipulation of a mortgage as security for its piyment. Bedarride, vol. 2, p. 383, says . " Dans I'usage le plus generid, le plus rt'paiidu, le billet a ordre t'L-;t fait sous seing prive ; mais comme la lettre (K change elle- nif'Uie, il peut etre rcdigd par-devant notaire et dans la forme aiithcnti(iue. Cette regie tie rencontre plus aucun contradicteur en doctrine et en jurisprudence ; .seulemeiit on admet que I'acte est alors rt^gi par les lois notariales et soumis aux raenies formalites (|m! les autres actes authentiijues; que notamment il doit etre eiiregistre dans le delai ordinaire. " Is not the meaning of the words Bill, Nute, Endorsement, Acceptance, Maker, Indorskr and Hearek, which have been cnnsccrated by both usage ;ind statutes, that of a writing under hand, destined to circulate from hand to hand like a piece of silver or a bank note? According to Pothier, Jousse, do la Serra, Savary and all tlic old commentators, such was the mean- ing of a bill or note under the old French law. 15 L. C. R. 44('. Whatever may be the prevailing opinion in France to-day, the jurisprudence seems to be well settled in England, the United States and Canada, that a bill or note is an instrument under liand only, and that when made otherwise, for instance under seal, it is not a bill. Parsons, I3ills and Notes, vol. 1, p. 26. This is an old maxim of tlie English law, which section 90 of the Act lias sanctioned. By sub-section 2, corporations are allowed to u.se their seal upon bills and notes ; and by sub-section 1 , " where, by this Act, any instrument or writing is required to be signed by liny person, it is not necessary that he should sign it with his own hand, but it is sufficient if his signature is written thereon by some other person by or under his authority." The clear infer- ence to be drawn from this provision is that a bill or note, and ii 23. 60 TiiK IjILLs of Exchange Act, 1890. M..r'j;iigo, Fiir-ocl or un- :iiitl!Ori/od sigiiiiture. ^ 24 every contract upon it, arc private writings. Sue also C.C.P. ^ - - art. 89. 11' it seem evident tliat a mortj^a : ns to 1 • (• r -1 1 *1 1 ^ • •" ' |':..vm..|.t on and lu casi' ol tailure by the drawer to give such r"iK"'i in- notice within tlic said period, such chc([ue sliall be held to have been paid in due course as re- t*pccts every other party thereto or named therein, who has not previously instituted proceedings ibr the protection of his rights. See sections 12, 20,2l),^30, 54,55 and (I.'!, and CHpocially Mutes under pactions :!0iuid ().'{. F'irifi I'll iiml ratifii'atinii : — 1. A t'lirjiid indui'senient is wliolly inoperative oven in tlie liandn tifa Ixiiid fide holder for value. Larue v. Evanturel, 2 L. C. .1. 1 12. 2. Qiiivri' as to wiictlicr an accH'ptor wjio has acecpled a l"(irj.'t'i| liilj, paviililt' to tiie ordiT of the di'awer, after it has liei'ii discounted liy tlie liiini\ iiini 'ias paid tlie same at maturity, is preclnde(| from alle^inj^ the forirery of the sijinatiire of the drawer and payee, and can recover lack the amount he has so paid. Ilvan v. liank of Montreal, 14 A. W !)\\:\. See Asiipital i\ liryan, ;{"]}. it S. 4S1) ; 5 15. and S. 72;{ . (.VMiper r. Meyer, Ul \^. A: Cr. 477. See sect. 54. ' .1. In an action iiy the j)laintit!for a declaration that the defendants, his iiiud to disiMilille ajrliano c. Hank of Kn^ilan.l, 2:\ Q. U. D. 2i:i; T.M L. Iiini to rccovt-r, \ .1. Q. n. ;{')7; (11 I.. T. Ill) ; ;i; W. U. HIK ; M .I. I*. r.tll v.. a. allim ini: 22 g. U. I). iO,! ; M L. .1. g. ){. 27 ; f)!) L. T. Mill. ■I. TIh' ili'ii'iiijanl Farri^wortli \va^ miciI as maker of two |ironii<- Horv notes wliieli pni'ported t(j have iieen made li Furnsworth inn! indorsed hy ono(iraves, wlio was joined as eiwlefendaiit. Attiielr.al defendant swore that lie liad neitiiei' sii:neil (lie nolt's in (ineslion ikjp autiiori/.ed anyone to sijrii lliem for liini. This faet was adiiiiltid ami was toll ml in ids t'avoiu', hut it appeared liiat previous to th<' tiiiil, when |)aymeiil of the notes was di'iiiainled, L'arnsworth stated tiiai lie had sijined tin notes for theacconiniiMlation of his co-defendant (Jravps nd made an oliei' of piiyment pro\ ided time was ^'iveii, and thai eoiist'qiiciiee of the admission plip itill refrained from taking |)roere(l- iiijrs a;L!ainst (Jraves for forgery ; Ilrlil, that defendant's (Fariisworth's) eondnet »moniite, tiial witlmut ntlinil knowledge of the alter- ation the promise to pay aiiKMinled to nothing, the mean-- of khuw ledge alone heing iiisuliicieiit. Weslloh r. Hrown, l'. ('. I.S (^ I5. \»'l. (i. iV forgery cannot heraliliid, hut ih" acceptor may he estoppcil floll I setting up the forgery ot Ins signatuK hv 1 mill similar accepli IJrook i\ Hook, L. ]{.,() Ex, tr wild hiis iiuid ill error to 11 IkiIiUt wIki liiul no i^ 24. r'v:\i{ I" rci'civr, inuy recover iiiu'k tlieiiinuiiiil (liiis puid. Dick v. '- |,(\(li(ll, 11 li. !')"(!. 11. Wlicrt' H liill ii- iiHsij:iialili' iiv iii(ii)i>i incut, cmc wiio iditiiiiiM jiofHi'MHioii of It liy a t'orjicd iiKloixiiicnt ac(|iiireH no iiiterent, tlioiijjii iLriKii'imt of till' to !■;:(• IT ; and llic orij;inal lioldrr iniiy recover of tlio mceptor, llioiiirii tlie hitler have |iaid tlie liill to tlie perxm in ponse?^- ^idh under mhIi iinloi>eiiieiii, iihl(,-s <[ lie sjiowii that, ,'^neli pavnient wii- made tliroiinji llie tuiilt oftii ori;:inni iiolder ; Imt tlie t'anlt iiiii-l lie -liown, ami tl.e lnirden of p, lof is iipiui the party who jiinti- ties till' piiyinent. Jaidvson t". (.'oiniiierciai Uaiiii, li R. \'.\k. \'l Where one piindiascH a clieids litter it iiad heen forj.'ed, and hy iiplni-iii;:' L'ives credit lo it, and it is at'teru ard-^ paid on pre-eiiliheiil, he will he liiilile tu the party piivinn' it. Merehants Uank r. K\cliaii;:e iliiiik, K; I-. 457. l.'i. Where u depositary of money to he drawn upon cheidis nr iinlei's pay-* a fir;:ed (dieidi, he will he liatiK' for the aiiioiiiit with lc;.'al interest from Jiidiidal demand. I.ahnrde r. Coiisoliiiated Asho- ciiiiioii, d U. I!H); Ktlinj; r. Commereial Jhiiik, 7 It. 4")!) hla. A. writes his name on a sheet of paper for the purpose of frank- iiiL' a letter, or in a lady's allium, or on tlie lly leaf of a hook, and Mili and following. hi. A hill i.s payahle to C.'s order. Ilis indorsement is forged. I)., a siihseipieiit holder, presents the hill for ai'ceptaiicc. The dnnvce arccpts it jiayahle at his hankers'. The hankers pay D. They ciimiut dchit the acieptor with this iiavment. Uoharts c. '1 iicker (1S51), It; Q. H. TitiO, Ex. Ch. See supra, n'. :!. 17. A hill i.i Jiayahle to the order of a tirm. X., one of the iiartners, fruiidiileiitly indorses it in the firm name to D. in payment of a jiri- vaudeht. The acceptor pays 1). X. hecomes tiaiik iipt. X.'s co- jiaitner and trustee can recover from D. the inoiiev i :■ received on tiie hill. Heilhut r. Nevil (11^70), L. K., 5 C. P. 478," Ex. Ch. IH. C. specially Indorse.^ a hill to D. It is stolen hefore delivery to 1>., and l>.'s indorsement in hiank is forged on it. It comes into X.'s hands, and he gets his hankers to present it k>r payment. They receive jiiiyment, and credit X. with tlie amount. X. suhseiiuentlv draws out the whole sum. C. can recover the amount of the hill 70 The Bills of Exchange Act, 1890. ^ 25. i^ i "' Procuration signature:'. Person sign- iiij? lis iijrent or in r('|)re- .«entiitive ca- jxicity. from tlic bankers. Arnold r. Ghi'une IJank (187(;), 1 C. V. D. 578 ; "Cf. (Mmrk's r. Blackwoll (1S77),2 C. P. I), at p. 157. 19. NotP t'rtr X'lOO. X "iru'cx B.'s siL'iiatiu'c to it as maker. JJcfore the note matures the holder finds out tliat 15. "s signature is a furi^erv and threatens to prosecute A. In order to prevent this, ){. give> tlio holder a memorandum, whicdi says, " I liold myself resjionsiliio tor tJie note for £100, hearinj: my sjirnature." Tlie ratilication is inviilid. ]i. is not lialile on the note. " jirook r. Ho(d< (i"i71), L. li. C. Ex. S'J ; Ex parte E Iwards (IsH). 2 Mon. I). cV D. 2U ; and cf. Williams c. Buyley (18GG), L. U. 1 II. L. 200, at p. 221. 20. A. draws a hill payahle tt) ('."s order. As between A. and C. the consideralion is fraudulent. X. foro;es C.'s indurscmeiit, and nejiiotiates the iiill lo I)., who takes it in irood faith. D. liuds out that C.'s indorsement has been forj;ed, and after the lull is due he obtains a genuine indorsement from C, giving him half the value of tlu' bill. I), cannot sue A. Esdaile (-. La Xau/.e (H:55), 1 Y. A: C. 31)1. 21. B.'s aoccptanee to a bill is forged. X holder who takes it hain't Jidc is afterwards informed that the signature is not B.'s, and aci'ordingly urites to en(;uire. B. writes to say the signature is his. B. i< liable on thi-; acceptance. Brook i\ Hook, L. U., IJ Ex. 100 ; llobarts V. Tucker, IG Q. ]J. 577. 22. The acceptor ofa lull forges ,\."s name thereon as drawer, then •liscounts it with a iianiv. Tlie bill is (lishonore(l, and notice sent to A. The acceptor gets the hill renewed for a smaller sum, paying the ditlerence in cash to the bank, and (Ui the renewal again ftu'ges A.'s name as drawer. The renewed bill is disli(uiored, an 1 notice sent to A. A. iloes not rejiudiate the ti'ansaction fiU' tourleen days. He is iiot estopped from setting up that his signature was forged. McKen/.ie i". British Linen Co. (ISHl), G App. Cas., S2, 11. L. 23. X. forges B.'s acceptance. B. pM\ the hoMer. Afterwards .\. again forges B's acceptance which, unknown to B., gets into the hands of the same liohler. B. may set np that his siL'iiature was forged. Morris V. Bethell (IHG!);, L.' R , 5 C. P. 47. 2»"5. A signature by procuration operates as notice that the agent has but a limited authority to sign, and the principal is bound by such signa- ture only, if the agent in so signing was acting within the actual limits of his authority. *2ii. Where a pe.son signs a bill as drawer, indorser or acceptor, and adds words to his sig- nature indicating that he signs for or on behalf of a principal, or in a representative character, he is not personally liable thereon ; but the mere addition to his signature of words describing him Capacity and Authority. 71 as nn agent, or as filling a representative cliarac- ^ 26. ter, does not exempt hiin from personal lia])ility ; (2) In determining whether a signature on a Rule for .ic- bill is that of the principal or that of the agent sigmit teriiiiniit ion of uie. 1)V whose hand it is written, the construction must favorable to the validity of the instrument shidl be adopted. -c'ctidiis IT, 'I'l .) illKl :il. Aiicnls : — A iH'te sijiiuM iUKl 1)V W. who IS not a partner prima Jiirif, in»]Mirts tliut H. siirns the iiutc for the linn and not as uwv of tlie ii'iii. Ddwling V. Kast\V(.od, U. C, ;5 Q. li. 37(i 2. M UTU'd women ami ninio rs niav be a^rents for others. Tl ins, if ii iiiiiii makes a note pavalile to his wife, or order, lie thereby jiives V aiitlinrilv to enddrst' It a-< aL^eiit, and her eiK dors ee \vi 11 nave ri::iit In recover a^'aiiist the hii>liand, the maker of the note. Melver c. Deiinison, i;. (.1 IS, Q. B. {',[[>. See also Cooper r. l^laeklock and ick,5 A. R.fjiS;") ; Norris r. CoiKhm, 15 Q. L.U. 181 ; Johnstun U'Kli Bl c. Seott, L. N. 171. See sect ion 22, n. I'Ja. ;on. 1- llie IM'. A note payable to A.," or to his wife and to no other jier' >anie as if made payalile to A. alone. Moodie r. Jlowutt, l'. C. I, Wliere an airent indorses, tlie prineipal cannot be held liable on the hill a- an imlor rser where Ins name does not appear in any sliape uiinii it. Ross c. Codd, I'. C, 7 Q. n.CA. i"). A L^eneral power of attorney to an a^rent to sii;;n bill,' notes, etc. iimi to superintend, maiiaj. and direct all the all'airs of the or principal, inn Dill >ei' Tied I a ]iower to endor.~e. Anldjo c, McDoiigall, I! (). S. l!)",). email, >} i 111 an action on a bill of exehanire expressed to be accepted per \ii'iii-iirt(H()ti b tlu' defendant s clerk, eNidence was u'ueii ot a eon- vuMilion with the defeiuianl, in which he staled that A- oiijrht to pay il lieeaiise it was dnnvn for his benelit. !!• Id sntlicient proof to liiive to the jnrv of a recojiiiition of the clerk's authoritv to accejit. .Muvri>on c. Spiir'r, N. H. H, A. 2SS. Wlicn (ificiitH or cfficers are permtnalli/ li(tl>h': — The following.' ajrents or representatives were held per fur want of contract iiiir in the name of their iirinciiials : liiih '1' -onallv lia hU iH the irsmjr by 7nistake m Ins own name wiien intending to sign attorney of another. Sevmonr w. WriL'ht. .S L. C. K. I')4 : diiitt er (• ¥ irrow, 5 M. S. 395 ; S oweriev r But cner, C. M. ;iiis. s. s igning " pour le compte de "' or'' on account of B. '' Newton jj. All.ii. 2 ]{. 1). L. 2!», ibid. :i(); I Bedarride, 521). !'. Sinning " M. C. Bros , Agts. " Keid r. McChesnev, V. C, 8 C. P. 50; Barllettr. JIawley, 120 Mass. !I2 ; Bank r. Cook, :i8 Ohio 412 ; W iiliams V. ]{()iibins, 1(1 (Jray 77. Qiarrf, if thi' |)rineipal be disclosed ur known. Milliiian c. IjvIc, 21 La. An. 144, 'J Barb. 528: Kathboii c. V2 The Bills of Exchange Act, 1890. § 26, Bndloiij:, 15 Jolins. 1 ; Conroo p. Purt Henry Tmn Co., 12 Barli. 27. See .-pc'(!iallv Arinimi'c. Gate.", U. C, HC. P.54S; Anuilil r. Spra^no, M Vt. 402 ;'l}i'(] ford Ins. Co. v. Covell, 8 Met. 444; 1 llamlolph, 179, 822. 10. I)ni\vin;r a bill " J. J. Johti-oiKcoiiuiiissioner, " witlumt staliii!' the naino <» f lii> corporation N B.,4A. 5(;i ; Mellon r. Moore, th Maine im ; Sturdivant r. Hull, 59 iliid. 172 ; Town v. Rice, 122 Mas>. 07. 11. Tmlorsinjr by president and a secretary of a company not incor- piirated at the time (jf indorsement. Jaidine v. Rowley, 3 R. &, (r. 244. See infra. M. 11a. In signing ar< parLsh judge. Paillette v. Carr, 3 Mi^rtin 49G. 12. By merely naming or describing the ])rincii)al, either in the body (if the instrument or in the signature after the name or sigiiature of the agent or (iflic'ial, r. //., " We, the Triistees of the Methoilist I<]pisc(ipal Church of A., [iromise," and signed A.H.C ; or, '' I., J. F., resident of the Mechanics' Insurance Company, promise," sigtieil J' F (ir, We, the Trustees of the Presbyterian Church, prom i-e, Hiirned merelv A. B. C, t rustce.- Hype.s V. GrilHn, S!) 111. 1:U icKan M 1 /•. Hve, 2 Mete. 47; Fo^g o. Virgin, 1!) Me. ;552 ; Barktr cchamcf 15 In , Co., ■^ Wend. '.t4 ; M iCiv /', Frevett, 20 Me. 4ii2; owei's r. \)\'\'Sii 1» 111. 4',);} ; Seaver r. Colburn, 10 Cush. :V24 ; 1 lii dolph, 11)1. Byles, 1 kh ed. H3. See infra, n. ;!(>. See also notes. Ill- tl 13. Therefore, where money is lent to the X. Company, a note for le amount is jfiveii m this forn W e promise to pay, et cat. yijined J. B. } r S ' ( '^"'P*^t'5''"* *'f t'"^' -^^ Company, Limited. J. T., Ml Tl maii'er, le persons wiio sign are personally liaiile as maKer Ih ibk Courthind V. Sanders, K; L. T. N. S. 502. ; Diitton r. Marsji, 1,. li. (5 Q. B. Gray c. Raper, L. R. I C. P. 01)4 ; Chalmers, 37 and <>!). 14. [. iKewise where a nil IS drawn upon P. C. de Latre, Esq., presiileiit Niagara I)o(dv and Harbor Comiiany, Niagara, C. W. ; ami ■ Vccepted, P. C. de Liitri', president N. H. k, ted was thus accep 1). Co." Held that de Latre was per-onallv liable. l)ank of M( treal r. de Latre, U. C. Q. B. 302. See also lie w /', Petet, 1 Ad. k El. 1%; Madden v. Cox, 5 A. R. 473; Brown r. Howlanil,(). R., !• C. P. I). 4s!; Biiiih of Hamilton r. Harvev, ibid. 055; Tucker Ml'.'- 'airbanks, !)■< Mass. 101 ; Brockwav r. Allen, 17 Wend. 40: 1 o. r C Randolph 101. Hut see Walker c. Bank of the State of N. Y N. Y. 5H2; Mann r. U. C, 15 Q. B. 400. Chandler, l) Mass. 335 ; City Bank v. Cheney, 15. G., being the secretary of an insurance company, gave tlii> notp for a loss : — " £1000 currency. — Sixty days after date I promise to pay to the order of W. JCIOOO, value received by the Ontario Maiini' and Fire Insurance Company, payalile at the Gore Bank in Haiiiil ton." Signed, '" C.lLjratio Gates, Secretary 0. M. and F. Company." Held, tliat he was personallv liable thereon. Armour v. Gates, {'. C, 8 C. P. 548. IG. " !};S75. To the Beaver and Toronto Fire Insurance Company, Toronto, November 0, 1^70. Three months after date pay to tlio or( m lerof.lohn Haizartv, at the Ontario B ml here. $S75, being pay- ent in full of his claim under policy No. 71,514, for loss and daniii'j by lire on the 27th of October last. (Signed,; A. Squier, Inspcc- Capacity and Authority. 73 tor," Squier i.i persoiuiUy liiibU'. llugartv v. Sqiiier, L'. C, 42 Q. li. Ui.J. 17, A I'ill i,« addressed to" J. J?.,frpneral ajrent of 'lie X. coiiipaiiy." He iicccpls,"' Accepted on lielialt' of the Ciiinjiaiiy, •! . H." J.l>. is per- suimlly lialile as acceptor. Herald v. Cotiiiale, M L. T. N. S. i*H'o. \f<. Again, accepting; a MI! drawn on "M. II. Tavlor, trea-iirer C S, Rv. Co.jSt.Tlionias," in the name of " M.H. Taylor, Tr,"' Lang r.Taylur, U. C , 2ti C. P. 41(1. l!l. hiUewise the acceptor is ])ersonally liaMe in acce|)tin!Z a ' ■" ' ni upon " V/. A. Geddes, treasurer of tiie Wolfe Island Kail- hy writing, " Accepted, W. A. (leddes, treas. wiiv iuii I Canal Ci \V,"I, K. & C. C am 1 add ng the company seal Fost er (' Ced- ,les, U. C, 14 Q. 15. 2;{1); Dntton r. Marsji, L. R., (! Q. H. IMW. Hut see Hood f". Ilallenheck, 7 tl nn. H(I'2 ; PitTnan r. Kintiier, 5 Blackf. '25(1; Aggo r. Nicholson, 25 L. J. E.k. MS; Means y. Swormsted ; 32 hid. 87. See sec. DO. 2(1. A hill was drawn hy " W. Lynn Smart, secretary of the N. & Ii. IN. Ky. Co.," on the president of the couifiany : " To George MacU'lh, Esq., president, Lomhui, C. \V.," and the hill was accep- 1(4 iis fullows : " Accejited, George Macheth, jiresideiit. " Held tiiat ImiiIi the pl■e^ident and secretary were personally iiahle, the cnmiiaiiy ■esi- iL'' authorized hy its chartei' to draw iir accept hills hy its pr |.('ii iK'iit, iir vice president, counter-signed hv the secretary. Bank of Muiitreal r. Smart, U. C, 10 C. P. 15. ' 21. A company wa.s registered hy the title of " Tlie South Shields "Suit Water Haths Company (Limited),'' The plaintitVs drew the fiilKiwiiig hill of exchange : ''Six months after date )iay to our order ''the sum of Jt!125 for value received. Salt Water Hath Company " (hiniited), South Shields," which was acce])ted as follows : " Accep- " led I avahle Messi's. Hodgkin, Harnett A: Co.'s Bank, So. Shields. ,1. "P, W.; Cliairman, T. S. H. ct .1. S. P., Directors, South Shields Salt ''Water Hatlis Co." An action having heen hrought upon the hill hy the phiintilfs against the chairman and directors, Held, that the two viiniitions from the proper designation of the company were suflicient tu hriiig the defendaiit.s within the jirovisions of .«. 42 of the Compa- nies Act, IS()2. the intention of which was to insure extreme strict- ness ill regard to the use of the registered name of the ciniipany, not only in enforcing the n.«e of the word " Limited," hut in all other it'.-pects, and that the ))laintitis were entitled to judginent. Atkins v. Wardle, 58 L. .1. Q. B. 377 ; 01 L. T. 23. Sect. 'l7, p . 3, sect. 23, and .■\]ilifiidix. See notes. 22, Qiio're as to hill.s signed hy otHcers hut made on paper stamped, iir otherwise mai paiiv's olhce. Mechai \ ' 1(111 »^i^ii;ii\. ked,with tl Ciih'l lie B we I (•.National .Mohawk V e connianv's name, or dated at the com- an1c of Columhia, 5 Wheat. 32(! ; Hank, (!4 Harh. 333: Van Lee- uik (• "( iillev an ('. First National Hank (jf Kini^ston, ■)4 N. Y. ('.71; L an^ Carpenter r. Fansworth, !0G Ma^s, 5(11 ; Hitchcock v. Buchanan, 15 Uttd. 41(i. See " The Bank Act" Ca. 53 Vict., cli. 31, ss. 58, 5'J. Exeriiiors, IVitsfecs ; — 2.'i. All executor, or the agent of an executor, is jjcrsoiially liahleon noL'otiahie instruments, unless he clearly describes himself as .such, and i^dulv authorized to do .so. Gore Batik v. Crotdcs, V. C, 2() Q. B. 2;^;('liihls r Moi iiii> 2 B.it B. 4(10 ; Serle v. Waterworth, 4 iM. it W. 'J; Liverpofd Hank r. Walker, 4 De G. & .1. 24; Peterr. Beverly, 10. Pet. 532 J llu.s,sell c. Carle, 2 Louis. 188 ; Bank of Louisiana d, Dejeaii, § 26. i i I \ 74 The Bills of Exchange Act, 1890. i^ 26. 12 ii()biiis_iii IG ; (Jillot i\ liiichiil, !l i.l. 'JTO ; Fluuer r. Swift, T) Miir- tin N. S. 5;U). And tlie holtlrr is not l«iunil t(i wiiil lur payiiicut in till' unliniirv cuiirsc of ailiiiinisti'iition, for instance foran in\ ontni'v. llostre.s c. I'etruvie, 1 iioliiiisun, il'.) ; Hylcs, Utii v< h^' adds some such words as " without recourse against me pi'r^onallv,' Chillis r. Monins, 2 Hrod. k H. -HIO. 28. The widow of an indorsee ., 1 A, 2;!5.' 32. Authority will be presume(l, when the agent is in the habit of Riszniiii; to the kiiowledue oftlie jirincipiil. Lee c. McDonald, 0. S. 130. 33. A com])any was authorizeil to make notes by and thi'ough its pr esn lent aclinir uiion a resolution of the director.- hrectors hail not bei'ii appointed as reipiired by the idiarter. Held, that authority would be presumed, and that the note so signed by the president was good in thehandsof a holder in L'ood faith who had given value totliP comiianv. Currier r. Ottawa Gas Co , U. C, IH C. P. 202. Sei also corporation i )f Grantham v. Couture, 24 L. C. J. 105, 2 L. N. 350. 34. The president and secretary of an incorporated club are m^t per nallv liable for the notes thev have siirned in the name of the club, altliou'.xh the latter was not authorized bv its charter to issue uote.~ Bank of Ottawa r. Harrington, U. C, 2S C. P. 488. ?' In an of I'xcliangi date pay t Montreal, game to ac •■■oil (luld (Iciiiiirrer, i )icrsonally (drpoi'aiioi Maxwell, [■ ;ili. A bil the director 1!, Co., bin V. ('liarle>, 37. Mone aiiiuuiit is g "For the Minally liab r. liajier, b. 3S. \ proi the latter o promises, '' i agent or ollii a^ " au'ciit " Vork.'l Cus Co..l B. Mo 111 Ma-s. ; Scliool ToWl tu 2:!. ;i:i. .V pub ill Ills publi )iai'ty. Is not ik'sigmifion. Ea2. See supra, n.* 12 and following. 'M. Money is lent to the X. Railway Comi)any. A note for the ainount is given in tliis form, " I promise to jiay, et cef. " (signed) ••Fur the X. Railway Co. ,T. B., Secretary. " J. B. is not i)er- Miiiallv liable. Alexander r. Sizen, L. R., 4 Ex. 102. But see Grav r. Jiaper, L. R.,1 C. P. (j!»4. ,'iS. A promise to pay in the full and true name of the principal bind.s till' latter only ; r. ;/., " The Newport Manufacturing Company proniises, '' etc, is the note of the corporation, and does not I'endei' the UL'eiit or oflicer jiei'sonally ri'sponsible, although he has .^igneil merely a- '•aiicnt " or " treasurer" or "• trustee " or " president." .lefts c. York.t Cush. 371 ; 10 ibid. :?!»2 ; Commerciiil Bardv r. Newport Mfg. Co.. 1 I!. Mon. i;5; Moor c Wil.son, 2(1 N. H. 8:i2 ; Whitney v. Stow, 111 Ma-s. .'{OS; Armstrong v. Kirkpatrick, 71) Lid, 527; Johnson SrIiiMil Township c. Citizens Bank, ction 59 says: — " All bank notes and bills of the banlcwlicre- on the name of any person intrusted or authorized to si<'n such notes or bills on bi-lialf of the bank is impressed by luacliiuery provided for that i)urp()se, by or with the authority of the bank shall be good and valid to all intents and purposes as if such notes and bills had been subscribed in the proper handwritiiiii; of the person intrusted or authorized by the bank to si*. 18 liOlllS. 2!); BilliiiLr ('. S.mtiu'o, 1(1 K. L. it 10. li- ;i7 ; Gin.uard, Lettnw Jt Change, 70. Total failure <>/' coiisidrnifiini : — :{. A mere mural oliliiiaiiiin i\i>on not constitntc value. Baker r. Read, 1 N. S. 1). l',)'J; Sonthall r. HiiTg, II C. J}. IHl. 4. Kiiluro serviecs to lie rendered liv an attornev-atdaw are Piitlieient ('((ii-ideiiitiiiii. \l IIU) iliert-^on r II Diie (' Cai 1 1 w e a retainer wonlil he van I h i:. C.,21 C I'. 241. ]( -^ Caldwell, V. C, ;U Q. H. 4(1^ eems that a note given a.'? See Tied email, s § 17: Uandulj m,i § 4,> 5. A Vdluntarv 'j:il"t or gratuilv, or ihnidlio ninrtis cauxn, is not val aide consideration. J'homas ii. M. 1 II llll.aS.-^ MeC arr )li r . Re doll, N. B.,4 A. 2(il ; llill /•. Wilson, L. R.,8 Cii. s;)J; lloliid.n Atkinson, 5 D. it C "'lU ; Millies c. Dawson, o Kxeh !) is ; Tat( Hilbert, 4 Uro. U. C. 2.s(i ; Harrieie r. Gladding, 17 Louis. 144. 1. (1. Rut in Qiiehee it has heen :l>t lllne: of tiie donor, and deli\('ied tliat (dieiines signcl during (ho as [larting gift- were valid, and could he recovered after his death out of his e-tate. Colville V. Flana''aii, 8 L. ('.,1.22;-); 14 L. C. R. ;!28. See ah ' over V. ns Kiclier, P. C, 5 App. (Jas. 4(il ; 5 R. L. 'iDl. In Vvanwjwns'of/i or services rendered, or a donation iitlcr rims or i/iartis caii.sa are valiiaiile coii-ideratioii. Cass. l;{ Vent. An. XII 12th IK 1815, 25tli .laiiiiiirv, ls:!2, 2lst August, ls;i7 ; .1. P. .'{7, 2, 2ls. Likewise in Louisiana, liurke c Rishup, 27 An. 4(i.") ; Tiedeiiian,§ UiU. 7. In England the contrary has been held in Hewitt r. Kave, L.R., 6 E(j. 11»8; Beak r. Peak, L.' 11., l.'i Kq., 48'.); Jones r. Lock, L. li., 1 Ch. 2'«, where it was decided that the cheque although valid as a donatio iiiortin causa, imist he jireseiited for payment I ly theduiiee het ore thed rawer s i leath. Put in astill more recent case the doet nne laid down in Colvil e r Flaiiiiiiiiii was iiiaintained. Promlev i\ Pnii ton (lisOa), L. R,, (i Va\. 'IT'}. Py section 74, sub-sect. {!»), thecliei| lie should lie jiresenled before the drawer's death. Py les, 14th 201' 8. In England the holder of a bill inav validly transfer the same 1 way of gift in contemplation of deatli ; but his estate will not be lia J lie as indorser, except to an indorsee for value and without notice. M iller V. Miller, 3 P. Wins. ;{5(i ; Veal r. Veal, 27 Peav.MU:} ; Austin v. Mead, 15 Ch. I). CSl ; Tate r. Hilbert, 4 Pro. C. C. 2.«(; ; Ilollidav ;,', Atkin- pon, 5 P. & C. 50,! ; Rolls r. Pearce,5 Ch. D. 730 ; Williams on Execu- tors, 7th ed. 778-780. 1). When A.& R make their joint note on demand to plairititfs. ami at their iHHpiestjfjr ailebt due by P., there being no extension of time; Held, that there IS no consideration. Merchants Bank, 8 P. li. 11". \\. h. k, 'I Q. H. 2t);<; Ciiss. illst.M'iiv, iHdl, .1. ]'. IsiM, (ID'J. See also Jni). See infra, ii. 21. 12. liiUewi^e where a note was jriven to piirtdia-'e stock which was nevi'r purcha-ed. Perrv r. Rodden, o R li.-177; Cridifordr. Milliner, M. L. R., "■'•■ ''^ B \:\. Wh.'ii ln'iiigiiiade to the loj^<, '' which that there was no consideration •m. 14. Likewise, where a bill is given for a delit repre.-^ented to be due, liiii nut really due. Soiithall v. Rigg, 11 C. B. 481. 1."). Or when a void note is given up. Cowanl c. Hiiglies, 1 K. & J. 4i;i. See also Mather c. Marchstone, 18 C. \^. 27;i. Id. A deed of land was male by a farmer to one of his sons, who, at the father's reipiest, gave his promissoiy note to his father pay- 111 lie to his other brothers respectively, the arrangeinent being made fur the purpose of distributing the estate of the father without a will. Tlie notes were lodgeel by the father with aiiotiier person. Held, that the payees could not recover on the notes, for want of cuiisideration moving from them to the maker. Forsyth c. For.0'.). Atlirmed in appeal to the Supreme Court of Canada. U L. C. T. 210. I'J. Where a note was given to jjlaintitf in part jiayment of purchase iiioiU'V of lands under an agreement for sale and purchase not reduc- ed to writing. Held, that the evidence could not be given of the con- sidi'ratiou, and that plaintitf could not recover the amount of the nute. Black y. CJesner et al., 2 Tlioni. lo? ; Lindsay y. Zwicker, 2 N.S. D. 100. 20. But where the conaideration of a promissory note was the pur- clia-c of land of which the maker took possessiuii, though there was iid written agreeme'it for the sale of the land, and the consideration was not expressed on the face of the note, the maker cannot set up as a defence the want of consideration. Gray c. Whitman, 2 Tliom. 157. G 81 §27. 82 The Bills of Exchange Act, 1800. ?i27. 21. Aclioii oil II |»r(iiiiissti- ces was trnnst'erred to the iHirporation of Fredericton, who ai;rccd lo lease the land lo A., Imt ik) k'a-e was executed, and A. died owIht rent ; the land was aflcrwai'ds advertised al auction, hut upon thesiilr, the defendant a^ireed to take a lease on the same terms that A. held the land, and pay the arrears of rent, for which he j^ave hi.s note to the plaintitl". ll dd, that they had no authority to lease the liiml except hy auction, and that the di'fendant was not liahle uii the iiutf. City of Fredericton c. Lucas, N. H., ."> All. 5S;i. IV/idf is V(.'iiuhle miisiderdfinn f — The consideration has heen held suHicienl in the followini^ cases:— 2.'!. An e.xchaiiL'eof ne^rotiahlc paper. Wood (•• Shaw, ;{ L. V. J, llil); Bull V. Cuvillier, 5 L, C. J. 127; Rose r. Sims, I ]i. Si Ad. ,V2(1 ; Hiirdou r. Heiiton, 'J Q. 15. H Li ; Horiihlower i\ Proud, 2 15. & Aid. 327 ; Ex jMirte Cama, L. U., !) Ch. 687. 21. A deht due to a third partv. Perrv c. Milne, 5 L. C.J. 121; Dickenson r. Clemow, U. C, 7 i^. H. 421". liiit see jMcGillivrav r, Keefer, U. C, 4 Q. r Balfi mr c. Sea A> See section 27, 2'). A deht 20N. S. K,i Street y. Quinton, N. H., 2P. &li.h\' 3 C. B., N. S. ;{0(); 27 L.J. C. P. 17. .0). le of the joint makers. Sjiinney y. Matthew.^, G. lO;: 2(). A compromise of a disputed liahility. Cook v. Wright, 30 L.J. Q. B. 321 ; Tuttle c. Smith, 3 Kerr, 643. 27. Any advantajre conferred. Duttoii r. Lake, 4 0. S. 15 ; Leniieiix r. Boiirassa, 1 Q. B. U. iidf) ; Fletcher r. Nohle, 0. R., H C. P. D. 122; N. B. Assur. Co. v. Ansley, 2 Kerr 196. For instance the prospect uf profit:^, although not reaJized. Corkerry v. Buyle, H Martin, N. S. 131. 27(/. The liuildiiig of a church and rectory. Thoiiia.s v. Grace, U. C, 15C. P. 462. CONSIPERATinx. 8 2S. A in'nnii^c to j^ivc ii|i II lull tli(iiij.'lit to lio luvuliil. Smith c. Sinilli, \:> (•• H. N. S. .ilM. '211. A iltiil liiirrcd liv llic Sldtntc of liiiiiiliitiuiiM. Uiuik nf riipcr Cuiiii.hi r. Diiitlcli, r; ('., I2(\ !'. U;iS; I';\iin,- r. M.,rK'v, I'.C'., 21 (I 11. ."il" ; (innillirriiiini r. 11 iili'ln-(iii, l'. ('., ') C. 1'. 2 U j \Vri;:lil i\ \Vii!:lit,(> !'. H. 21.''); (.'aiiailiuii UiinU of Cdiniiii'i'i'c v. (imlcv, l". C, ;iU C. I'. rjs;i i l,at>"' I"! iiiiiiK'iliali' |iarl\', Imt iml a^iain.-l a Imlilci in iliif cuiii'sc. li'iiv y. Aylin.Lr, 1(1 Q. !'>. -i'M, ("halmcrs '.Id; Ddiai^ r. ("lialilnnx, li R. L. i!2.')j' CdinnicnMai ItanU r. \';i;j.i\ .Sicv. I)i!; ('die r. (.%de, 7 Martin, '\. .S. 12;!; Chahiiers, DO. Tlir j'ltUini'iinj hare hatii litbf In he illegal considerations mui lo he a (Jill) I defence mjainst (iml 'ntimediate parlij, but not (U/idiisI a hut lev in ibii eiiiirsc : — :il. 'I'd procnre a puhlic; dlllee, iJlaehl'drd /'. TM'estdM, S T. l{. !(.'{; liulnierc. Hate, 2 M. A: H. t;7;!,(i7S ; Itichardsun r. Mellish, 2 ]5iriL'. 22!». '.]'), I'nder threats of havin;:; son arrested. Maefarlane i\ Dewv, IJ L.C. J. S;-); Doyle r. farioll, l'. C, 2.S C. \\ 218. lii'i. Td stilile a prdseciitidn fdr a crime. Hell i\ Kiddell, (). U., 2 Q. 1].1).2."); lOA. U..')I4; llenrv r. Little, tl.(\,ll Q. H.21»(;; Tupdnco i: Miirtin, l". C, ;{S Q. H. 411, 2 Handdlph S2. See also Canada Far- iiuT- Mut. Ins, Co. r. Watsdn, V. C.,2.") C. l\ I ; Morj^an r. Kno.x, 15 An. 17(i ; Perry v. Frildt, G Martin, N. S. 220; J.eL'irett c. I'eet, I l.uui-. 2'J7. ;i", Xdt Id proceed in a prdsee\ition for i.^rmittinu- unlawful j.oim- liliie.' in a tavern. Dwij^iil c. Fllsworth, V . C, i) il JJ. 5.S0. ;>. The defemlant C. heiiiL.' in prison in due c(tiirse of law on ii ('liiU'L'e df a^sanltiuiij the plaintilK, for whitdi an indictment was laid aiiaiiiM liini (diarLMU^ him with an assault occasioning act\uil hoi' hecause defendant had made compensation to the plaiii- titf. To an action on tlie note, tlie defendant set u fraud, duress, ami illegality uf consideration. Held, that the plaintilf was entitled i^27. s 84 The Bills of Exchange Act, 1890. S 2T. to recover ; that tliere wa« no evirleiice of framl ; nor under the cir- J ciiiii-^tiniccs I'liulii there he deemed to he duress ; and, further, tliat tl WW was no illejiality of consiileration, for tliesettk'nient was meri'lv for tlie |ilaintill"s private danuiiic, and iti no way atfected tlie imlilfc intf'M'st, the hiw liavin;: heen vintheated h_v tlie iin]»isition nf suhsian- tial |iiinishinent, Kneesliaw v. Culher, U. C, itO C. 1'. 2(i,j. Sec also U (iIk rl^oii (". urne: U. C.,4;] Q. n. Mii. t. The consideration is also illegal as lieing ajrainst puhlic | .... . .,V ...............v.... ,,.VJ., ^..._,.^, wlicn to induce a creditor to siun a deeil of disid loncv, larire, or a (lee(| i,( isitioii and discharirc, in tavorofan insolvent, in frand of conipo olhir cre(iitors. W III! iird r. Killinan, 1 Kerr 105: Mc( lie ct aU'iont ('. ]iaiilie,N. B., 1 A ;j7;J ; IJlackwood c. Chinie, 2 11. de L. 27 ; Prcvost r. rickell, 17 L.C.J. 114; Sinclair r. Henderson,") L. C..I.;iO(l: 1) ovh' r. I'rev( isl, 17 L.C.J. !()( •Donald i\ Senez, 21 L. (\ J. 2111 ; 1-eclair r. Ca-grain,M. L. 11., .. S. C. I!.').') ; (iervais c. Duhe, M. L. U., i; S. C. 1)1 ; Dccelk- r. J',ertrand, 21 L. C. J. 21)1 ; contra Cireen>liields r. Plainondon, 10 L. C. K. 201 ; Perrault r. Lanrin, 14 L. C. 11. S5, 8 L. C. J. ll)(i; Martii, r. .Macfarlane, 1 L. ('. J. ;-),•,■ Bank of >lontreal r- Audette, 4 Q. L. U. 204. Se 5U,^ : ]]vles, 14th ed, 1;)4, IC.l. e also 2 llaiii l"l[|li,i^ 40. The indorsers uf such coini)osition notep are not liaide. Arj r. Poiilin, 22 L. C.J.3;}1: Martin r. Poiilin 4 L. X. 2t in lint M'O Reed r. WitiLHiis, i;! C. B. N. S. 220, Chalmers, Dl. See section 22 (2), n.;52. "^ Gd 41. If paid, the maker may r(iM)ver the amount from the pav monr r. riiompson •ID 1! Pr. 200 ; levies, 14th ed ; 150. CO. 42. Siu'h composition notes are valid in the \\nni\< oi n Ik mil fiJe 2 L. N. 270; Cil lioldcr for value. (Jiroiiard c. (Jnindon, .: i.. .n. ziVi (uimoiir r. Tliompson, 41) How. Pr. 2(10. Sec also CJervais r. Duhe, M. L. H., ;) S. C. 1)1 : Byles, 14th ed, 1511. 4,'{. A het or wajrer, respectinir the result of an election, is not a le^inl consideration fora note. Dnfre-ne r. (iue\remont, 5 L. ('.J. 27 it cannot he opposed aj:ainst a IkukI fiih \\tt\i\vv for value. Lac V. Morasse, 2 l^ L. I). 1^-J >. Hut oliceiir i^ee infra, ii. 57. 1 O. R. R., 1(111 oW. .-il TliefoUon-iiKj C(iiisitocks or nierclian- di.-c, uithout anv intention of deiiverv, ai'e illc;i;al considerations for a hill. C. C. 11)27 ; IJank of Toronto' r. MacDoii-all. L'. C, 15 C. 1'. ni,"); Fenwiok e. Anseil, 5 L.N. 2;)(l ; Shaw r. Carter, 2(1 !.. C. J. l.'il ; .Allison /•. McI)oui:all, 27 I.. C.J. ;;.")'); .\[cl)ougall r. Demers, ;^(i L C. .1. Ki.-i; l{n>se!i r. Fen\vi(d<, 17 U. J.. (175. 't'l. In ]'-nij;land, where "all contracts or a'.neements hy wiiy of iriiiiiini: '" are null and void hy statute, S and '.I Vict., c. 1()'.>, s, is, the h'lix'i Ji(h' lioldi'r for \alue of note jziveii in respect of iiainhlin;:' trans- urtioii~ on the Stoidv ivKchan^e inav recover from the maker. Das' r. Smart, (i IJiiig. lot) ; Hay v. Haylin>, lO Q. 15. 42;{ ; 20 !.. .1. Q. H. 171 ; iiiid the holder for value nuiy recover, althoujrh he had notice (jf the iiiiU' havinii heen so jiiveii, the consiilcration not hein;i declared " ille- L';il" hvth(' statute. Lilev r. Raiddn, ">»; L. ,1. (i. 15. 2 IS; Thacker v. !l;iidv,lS L. ,1. g. ]{. 2'j;{; IJeeston c. Beeston, I') L.J., K\. 2:;0 ; Filch'/-. Jones, 5 Iv k H. 2;iS. IJut see Tie.leman, §4ti). See Byles, Mill ed 1(12 and section 'M). nn. II ami 2;!, and notes. .■).). In France the ille,<::ality of c(jnsidcration of a note, for instance, fir '.'aniiilinji speculations cannot hi' iipposecl to a hain'i /ii/c holder fdi' \alue, /',' tiers jxirfciir dn Ixtinii' /'ui. Ca-^s. ,12th .Vjiril, IS") I, I». ;') 1, 1, HO ; Cass., 4lh Dec, IS.VI ; ihid. II.'! ; Antrcrs, 21th AuL'Ust, ISO.-) ; I). 00, 2, 211; Rouen, 14th Julv, ls,-)t; I). -)(;, 2, 10; Douai. Stli Aii.L'U-^t, lS-)7 ; I). oS, 2, 40; Orlean-^, 24th June, iSliS ; 1). (is, 2, li).") ; Aj:ih, 1-^t April, 1S7;{; I). 75, 2, 210. See also cases cited in 4 Alauzet, 0,1, and 1 Hedarride, 17i). See infra, n. 01. ">l. When a hill is j^iven for ;i considoriition which is not oidy ille- L'iil, hut which by statute expri -sly maU'es the hill voiil, it is,a-^a:rainst the parly who i:ave it, void in the liand-^ of all parties, whether imme- (liiiic or remote. Kdwards r. l)ick,4 H. A' Aid. 212; Shillito r. 'Iheed, 7 liiii-'. 411;"); Fee /•. (loneiral, II) An. 20.'!, iiOS, 4;i;). 44',l; 21 An. lii.'i ; Clove- r. Clarke, 21 An. ')iil, 0:55; See Ilillr. Martin, 12 Martin, IS!!. See note- undi-r section ."id, ').'i. For instance, A. draws a bill on B. pavable to his own oriler . H. pts it tor a consK leratiun which bv statute ab-obitelv a\oii|< it. A. indorses it to C, who takes it for value ami without notice. C. can sue A . hut he cannot sue B. Kilward> c. Dick, 4 B. t^: Aid. 212; Id ed r. Wi-L'ins, i:; V. li. N. S. 220. The Canadian Insolvent Act IstU (now repealei "Ct. CI 'lit Ibl, .). el d). :». See also" Flower c. Sadler, lU Q. B. Si D. o72 : Armstrong r. Oib.!. A note obtaiiied from the maker by framl is void in the hands of a />o»^7 //r/t' holder for value. Lii Ban(|Ue tlac(|ue Cartier r. Les- card. !.■) R. L. 14; Ij'Abbe v. Normanilin, .'i2 L. C. J. .n'A ; La Biuiqiie .lae(|ues Cartier r. Leblanc, M. L. R., ti S. C. 217 ; Contra Arnold v, Caldw; Persil,(;8; Chalmers, 89; Byles, I4tii ed, I5(i, See notes nnder section 30. ()2. B. iiid(M'ses upon the condition that A. should also indorse. A. did not indorse. Held, that B. was not liable even in the hamls of a holder for value but with notice, Ontario Bank r. Gibson, ."} Ma. H. 40(1. Awde t\ Dixon, fi Ex. 801), approved. See .section 21), n. I and notes under section 'M. A /miller for value : — ().'{. A holder for value may or not be a holder in due course. Raphael r. Bank of England, 17 C B, 174. See sect. I'J of the Act. See also section Oli, n. 24. (14. C, the payee of a bill, holds it for value. lie indorses it to P> without value, e. ;/., by way ot gift or for cidlection. D. is. as regards the drawer and acceptor, a bidder for value. Milnes v, Dawsi.ui, 5 Excli. 1)48; Denton r. Peters, L. R., 5 Q. B., 477. The following illustrations are from C/ialmei't^, 74 : — 65. B. owes C. £50. In oriler to pay C, A. at B.'s request draws a bill on B for £50 in favor of C C. is a holder for value, and can sue A., though A. lias received no value. Scott c. Lillord, 1 Camp. 240. ()(). A. draws a bill on 15. payal)le to his own order. B. to acconi- niodate A. accepts it. Subsecpiently A. gives value to B. A. is a Judder for value. Bunion r. JJenton, 9 Q. B. 84!?. 07. B. makes a note in favor ofC. C. is the treasurer of a loan society, and the eonsiileration f(jr the note is money advanced by the societv to B. C. is a holder for value. Lomas v. ]5radshaw, 19 L. J. C. P. '273. OS. C. ( Vidlie. D value. 15 (11). A. arrount w It i~ immi tiiut the ci V. llu-sel 34 L. J. Q 70. S., pay him, tlici'cupon jiiivalde tt- jiiiys A. fi Ciin sue A Wiicn 71. A 72. D. nli'dges it he ad vane can retain 1 li. A- P 73. C, I! Consideration. OH. C. the lioKU'i' of ii bill, iiulorsc'S it in blank to I)., receiving no value. D. for value transfers it by delivery to E. E. is a holder for - value. Barber v. Kiehurds, (1 Exeh. (ui. (ill. A. at the recinest of X. draws a bill payable to C. for X.'s iu'cimnt with C. X. remits tiie bill to C. C. is a holder for value. It is iinniaterial that there is no eonsidi'ration between A. and X., or tiiai the consKlcration faiN. Muni'oe r. IJnnlier, 8 C. IJ. S()2 ; Watson r. llu-sell, ;i 15. it S. M ; ;il L. J. Q. H. ;U)t ; 5 B. & S. Oiis, Ex. Ch. . 34L. J. Q. B. i»;5. 70. S., in the West Indies, is indebted to C. in Paris. In order to pay him, S remits money to X., his correspondent in I^ondiui, who tlicicupon obtains a bill for the amount, drawn by A. upon Paris, ]iiiyaiile to C.'s order. X. remits the bill to C, but fails before he pays A. for it. S. sul)se(|U"ntly pays C. (\ is a holder for value and fail sue A. Puirier r. Morris,' 2 E & B. i^il W/icn the liojiltr /las a lien. See sections '^?> and S2 (.''>). 71. A lien is an implied pled^ije. Brandon i\ Barnett, 3 C. B. ").'51. 11. L). holiis a bill indorsed in blank as agent forC. ; D. w-^ngfully plt'ilges it to E. E. is a holder for vaUu' to the extent of tne sum he advanced, and if he took tiie bill without notice of the fraud, ho can retain the bill as against C, the true owner. CVllins y. Martin, 1 B. ct P. (i48. ".'}. C, the holder of a bill for £100, deposits it with D. as security fer a running account. At the time the bill matures the balance is ill C."s favor, but subse(]uently the balance turns against him to the extent of £oO. D. is a holder for value as to X'oO. Atwood r. Crow- dio, 1 Stark 483 ; Gray v. Seckham, L. R., 7 Ch. 483. 74. C, the holder of a bill for .£100, indorses it to I)., as a pK'dge forl'oO. D. is a holder for value as to £50, and this is the sum he can recover if he sues C. Atteidjorough r. Clarke, 27 L. J. Ex. 138. 7.). C. keeps with his banker-^ a loan account and a general account- C. indorses to the bank, as collateral security for his loan account, a bill for £1,000, an<. The "discount '' of a Viill must be distinguished from the plcdg*^ or ileposit ot a bi II ei'urity. Ex parte Twogood, 11) \'cs, 22'.); Re (b.Miersall, 1 Ch. 1). 142. Ex parte Scbolield, 12 Ch. D. 337 7!'. A " discounter" is a bidder for full value. Ibid.; Tiedeman )'• Goldsmidt,! DeG. F. & J. 11. BO. The ))osition of a })ledgee is this : If he sue a third party he i-iios as trustee for the pledgor, as regards the ditt'erence between the amount he has ailvanced and the amount of the bill. Reid v. Furni- val, 1 Cr. k M. 538. 87 § 27. 88 The Bills of Exchange Act, 1890. § 27. ^1- I'iIra, II. G, as to Quebec. It has been fre({ueiitly hi il, however, that a note, given for the furtherance of some chavitable object, to found a college or hospital, to support a chureli or its pastor, and the like, is binding upon the maker. Tiedi'nian, ^ l(il. It is hardly necessary to add that the purchase of ail kinds of property, both real and personal, will form a sufficient consideration. For instance, the sale of land, although subject til a mortgage, or even a promise of sale, the understanding being that the absolute title is to pass when the last instalment of tlie purchase money is paid ; likewise tlie transfi'r of incorporel rights, sui'li as the good will of a business, the rights of ciirporate mem- lit-Tship, a policy nf life insurance, a franchise, a patent although ultiuiuti.ly declari'd nltni vires, agreements to render services, or the actual performance of them, the release of legal liabilities, arc all valualile considerations. Tiedeman, >^ 172, 173. Total failure or illegality of consideration avoids tlie bill bc- twocn the immediate parties, but not in the hands of a holder in Jue course. See notes under section 30, It was atone time considered, that where part of the consider- Parti}' illegal, ation is illegal, the entire instrument is void ; but it is now well settled that only the invalid part is void if it can be severed from tbe lest, and if it cannot, the whole is void. Endlich, § 4()0 ; Tioacnian. § 1 79 ; 2 Pothier, Evans, ed. 17 ; Cole v. Cole, 9 I-a. An., 33, .339; 11 Wheatou 258; 2 Peters, 527; 11 How. 3t5i IG id. 3U; 17 id. 232. 90 The Bills of Exchange Act, 1800. Acpommndn- tidti ]iiirty to a bill. ^ 28. It often liappcMis tliat a iiu'rcliaut deposits bills as " LM»llator- al." The person to whom tliey ai'c transleri-etl becoiuf> the holder iu a uc course, but only to the extjut of the sum fur wiiiuli the bill is pledged. Tlie ^rmm_/"'ciV presumption is always that the collateral is only for the balance due at the time it is .^ivon, but this presumption may be rebutted by evidence of an inten- tion to cover all future ])alances. Section 27 sub-sec. 8 ami src. oil See notes under section 30, as to the rights nf a holder in due course and sec. 29, n, 11. 2<**» An accommodation party to a bill is a per- son who has signed a bill as drawer, acceptor, or indorser, without receiving value therefor, and for the purpose of lending his name to some other person ; His liability. (2) An accommodation party is liable on the bill to a holder for value; and it is immaterial whe ther, when such holder took the bill, he knew such party tolte an accommodtition party or not, (1) See st'ctiuDs 27, 'M], .'18, '),"., 54, 5'.), (11, (i2. 1. As to tlie pruL'tico in Ciuiada of taUiup: iKitos fdr (liscouiit, frnm the maker who brings tliL'in indorsed, thus suggesting acconinidlii- tion enilursements. See Bank of Montrral c. licviiulds, I'. C, 25 Q. B. 352. 2. Bill accepted for tho accoinnioilation of the drawer. Tliis !■< an accomniodution liill.and the acceptor is an aecoiuiiiodatiun acceptor. Collott r. Ilaigh, 'A Cam]). 2Sl. 8. Bill (h'awn, indorsed, and accepted for tlie aceommodatioH of X., wlio is not a party tiiereto. Tlie di'awer and acceptor receive a edii:. missifui for so doing. This is an accommodatiun bill. Oriental Finan- cial Corporation i\ Overend, L. K., 7 Ch. 142. 4. liill drawn against a running aeeount, and aecepteij. Tlii>. it •seems, is not an accjommodation iiill, tliougii the aeeount may havi' been .against tlie drawer wiien the bill was drawn, or accepted or pav- alile. Ex i)arte Swan, L. U., (I Ei], at p. .'{.")(); Wilks r. Horidiv, 10 W. 11.742. T). Bill drawn payable to the order of C, ami accented. It ap|ieiirs that the acceptor was indebted to C, but that the drawer signal tii accommodate (lie acceptor. This is not an accommodation bill, tli(ins.'li thediawer is an accommodation drawer. Scott v. Litford,! Cam]). '-Ki ; Sleigh i\ Sleigh, a E.xcli. .OU. 6. Bill payable to drawer's order is accepted for value. C. , who've name is well known, imlorses the bill to give currency. This i.s not (1) The Halifax Banking Co. 0. Gillis/20 N. S. 11. 40G. If; Consideration. 91 nn ai'i'oniiii(i(liition bill, but C. is an uccDimiKMlatuui iinbirscr. Ro ^ 29, Niinn, Hiu'k, 113. Suciete Geiioriile v. Metrupolitaii BuiiU, 27 L. T. *- N. S t^l'J. 7. An accoinnnxlutinn bill is a bill wlicreuf tbc prini;ipul debtor, acwnliiij; to the terms ot'tlie instrument, is in substance a more surety fill' siinic other person, who may or may not be a jjarty thereto. Oriental Fiiiiimial (^irporation r. Overeiid, L. R., 7 Ch. 1 Iti ; Ex j)arte Kuru- pi'im Hank, L. U., 7 Ch. !)l). 8. An aecommoilation bill is not issued within the meanini; of sect, tU of llie Hills of H.\chanjj:e Act, 1.SH2 ((;(jrresi)ondin<; to section (J3 ufllK' Canadian Act), until it has jieen delivered to someone who can ■;iU' ujinii it. Kiigel r. Stourton, ;">;{ J. V. y.W). 1). A person who indorses for the accommodation of the maker is liiiMc lo the holder for valiu', althouec Bank, 7L. X.:!i:<; livman r. Dion, i:"{ L. C. J. llK); Sontham r. IJanton, 11 A. 11. 17; Miller r.^Ferrier, V.C., 7 Q. B. aid; Muir r. Cameron, U. C, 111 Q. B. :{")(). Evenif tlie bid be transt'erred to him after matu- ritv. Grant r. Winstaidey, U. C, 21 C. P. 2,j7. 111. As the payee of an accommodation note cannot himself sue the iiiiikcr upon it, so neither can his indorsee without value ; and if the hitter (iiily pays or only lends a small sum on the note, he can only eiit'uive it for the sum lent. Strathy e. XichoUs, U. C, 1 Q. B. iU. 11. A second accommodation indorser who has paid a note after its licininiiii: due mav sue the maker or any prior paitv. Breeze v. Baldwin, ;■) 0. S. 444. 12. If a person indorses a note for the maker, for the ])urp(>se of oiiiililiiiL; the latter to obtain an advance of money frcnn a third per- son, who knows that the indorsement has been so obtained, the latter caiiiiiil fipjily the note to a pree.xistinn: debt ajrainst the maker, or as Ptriuity for some new arianjiement to which the iiidorser was not a [lailv. (ireeiiwood r. I'errv, V . C, I'.l C. P. 4015; Torrance (,'. Bank uflb \. A., P. C, 5 App.Ca<. 24(1. bl The holder of a bill for value, thoujih havini: subsequently k'ciiine aware of its beinj: an accommodation bill, mayrehase the tlniucr without relea-^in^' the acceptor. City of Glasirow Bank r. .Muia,.rk, r. c, 11 c. P. i;i8. 21>. A holder in due course is a holder who has Tii.iiior in ,iue taken a bill, complete and regular on the face of it, nil or the following conditions, namely: — [ii] Thiit he became the holder of it before it was overdue and without notice that it had been previously dishonored, if such was the fact ; (/') Tiiat he took the bill in good ftiith and for lino, and that at the time the bill was negotiated to him he had no notice of any defect in the title of tlioa person who negotiated itj 92 TiiK Bills of Exchangr Act, 1890. § 29. (2) In particular, the title of a person who ne<><)tiat('S a bill is defective vvitliin the uieaninjr Title dcfi; tive ill ciisu.s speciiied. (jf i\^\^ ^(.j. ^vhen he obtained the bill, or tiie acceptance thereof, by fr;iud, duress, or force and fear, or other unlawful means, or for an illciial consideration, or whe-i he ne<2;otiate.s it in breach of faith, or under such circumstances as amuiuit to a fraud. (1) (o) A holder, whether for value or not, who derives his title to a bill tiirougha holder in due Riiht of siib- s('i|iu'nt holder. course, and who is not himself a party to any fraud or illegality affecting it, has all the rigiits of th'it holder in due course as regards the accep- tor and all ptirties to the bill prior to that holder. See section .'!, 20, iio iiiul .iH. Complete ami rci/nlar upon its face : — 1. 'IMius, if tlic Imlilcr tiikcs a lilaiik acooptaiioe, or a hill wiuiting in any material particular, he takes it at iiis peril. Awde c. Ui.\i>ii,i] Exch. 8G!). See section 27, n. ()2. 2. So also if tlie holder take> a 1 III! w iiich has been torn ami jiieces pasted toiret her, if the tearinti' appear to siiow an intenlimi to cancel it. In.s^ham r. I'rinirose, 7 C. \i. N. S. 82 ; 2S L. J. C. P. 21)4; Scliolev '•. llaiiislpottfiin, 2 Camp. 4S5 : iieiimavno o. Bnrtoti, 2 L T. N. S. ;524. Peel r. Kin.L'smil v. Ariiut, 5 N. Y. 2.3;! ; C, 7 Q. H. ;it;4. See alsu Col.-uii An-le ;;. N. W. Itis. Co., 2 Otto. :U2. lorseeofan altered liill, iiearin.; mark« of inrtrniity aii'l indeed ui' kna^'erv, cannot he considered an innocent holder. S\vai>laiKi V. Davidson, U. li., :5 Ciiv. :{2(). See section M. :i Ti le iiic T/ui( he took f/ie bill in tjDOil faith and far ralite : — 4. PHmn Jaeic i\ person who ha< the possession of a note in ilor.-'fti in hlaidc is the le;:al holder. Howard r. Godard, N. B., 4 AH, l.'t^. ■'). H. eiidorsed a jiromissory note made liy C. for the pnrpu-^eof retirin; and H'l of the Act. VI. The Indder for collection. Mills r. Philhin, S U. deL. 255; Alfxiuider r. Tavlor, Step. Di^'. 117, n. 8"); liohertson r. Furness, U. C, 1:;Q. r.. li;<'; Sheplav r. Kurd, ;{ A. li. olH ; Allison r. Central Bank, \. H., 4 A. 270; (Jirvan r. Price, N. H., 4 A. ;5()!) ; Howard v. Guilard, N. H., 4 A. 452 ; Ilej. 2(ith April, lS2(i, L). 2C., 1, 24S. hi. C!ie pies frail lulentlv " initialed " cannot he repudiateil hy a bank when held hv a holder in L'ood faith and for value. Baiuiue Natiuiiale /•. City Bank, 17 L. C. J. Ii>7. A well-known principle applyint; to all contracts and transac- Good faith, lions of life is that good faith is always presumed, and that he who alleges liad faith must prove it. C. C. L. C. Arts. 993 and 2202 ; and such is also the principle of the Act, subject to the exceptions contained in section 30. But will neuligenee destroy good faith within the meaning of the Act? The doctrine of the Roman law, wigti'i ncjih'ijcntlii. cit/p i eat, has b^en adopte I by all civilized Datinnsj hut not as regards negotiable paper. " Gross negligence" said Lord Denman, may be evidence of mnh( fides, but it is not the same thing. We have shaken oft' the last remnant of the contrary doctrine. Goodman v. Harvey, 4 A. & E. 870. The rule now well settled in England and in the United States i". that although gross negligence only ought to be cc^nsidercd as evidence of fraud, it is not conclusive of it, and this principle lias been sanetioned by section 89 of the Act: ''A thing is deemed to be done in good faith within the meaning of this act, where it is in fact done honestly, whether it is done negligintly or not." 94 The Bills of Exchange Act, 1890. §29. In Raphael v. The Bank of Kngland, 17 C. B. IGl, Crcswell, J., said : " It sociiis to me that the oIui^sion of St. Paul, who is substantially the plaintiff here, to avail liiiuself of the uieans of knowledge of the ;dlej;ed felony (the larceny of the bill) that were at his disposal was not the point on whieh the decision of the case could properly be rested. A person who takes a negotiable iiistru. mcnt bona fide for value has undoubtedly a good title and is not affected by the want of title of the party from whom he takes. His liaving tlic means that the security had been lost or stolen, ;iinl negieeting to avail himself thereof, may amount to nej/ligence, and Lord Tcnderden at one time thought negliu'ence was an answer to the action. But the doctrine in Gill v. Cubitt, 3 B. & C. 4(j0', is not now approved of." See several decisions quoted iu Tudor, Liad. Cas., 3rd ed., 1884, p. 300. Lord Blackburn, in the House of Lords, thus sums up thclaw on the subject in the case of Jones v. Gordon, 1877, H.L., 2 App. Cas. G29 :— " I consider it to be fully established that if value be given for a bill of exchange, it is not enough to show that there was c ire lessness, ncglig< nee, or foolishness in not suspecting that the bill was wrong, when there were circumstances that migiithave led a man to suspect that. All these are matters which tend to show that there was dishonesty in not doing it, but they do not in thoui- selves make a defence to an action upon a bill of exchange. I take it that in order to maUe such a defence, whether in the case of a party who is solvent and sal Juris, or wlicn the bill is sought to be proved against the estate of a bankrupt, it is necessary to show that the person who gave value for the bill, whether the, cilite he great or small, was aff"ected with notice that there was something wrong about it when he took it. I do not think it is necessary that he should have notice of what the particular wrong was. If a man, knowing that a bill was in the hands of a j)er>0Q who had no right tt» it, should happen to think that per- haps the man had stolen it, when, if ho had known the real truth, he would have found, not that the man had stolen it, but that he had obtained it by false pretences, I think that would not make any difference if he knew there was something wrong about it, ;iud took it. If he take it iu that way he takes it at his peril. J3ut then, I think, such evidence of carelessness or blindness as I have referred to may, with other evidence, be good evidence upon the question, whetiier he did know there was something wrong iu it. Consideration. 95 §30. [fill! was (if I may use tlio pliraso) honestly blundorinj^ and careless, and »o tooU a bill of exclian<|c or a hank note when ho oui,'litnnt to have taUen it, still he is entitled to recover. JJut if tlio tacts and ciruunistanccs are such that the jury, or whoever has to try tlK'niiestioii,eouies to thceonclusioii that he was not honestly bluMilcriML;', hut that he must liavi had a suspicion that there was soiiirtliinu vvroni;, and he relramed from asking (juestions, not becaus(^ he wa-' an honest blunilerer, but because he thought in his own socrrt mind — I suspuet there is something wrong, and, if I iiiaki! further in([uiry it will be no longer my suspecting it, but uiy knowing it, and then I shall not be able to recover, — I think that is dishonesty." hord (Gordon said in tlie same case : " If the appellant wil- fully abstain from making himself eognizunt of the facts, it may properly be said that if a man wil/ul/j/ shuts his eyes so as to avoid inriuiring into the circumstances connected with such a history as this, the only impression widch can be produced upon any unbiased mind is, that he did so because he was afraid that ifhfc in([iiired into the circumstances he would ascertain what would be e(|uivalent to notice destructive of any claim he might atterw.irds make." SO. Every party whose signature jippears on aPn-HumpUon bill is prima facie deemed to have become a party go-.a tauh. thereto for value ; (2) And every holder of a bill is prima /(^r/e*^" whombur- deeiiied to be a holder in due course; but if, in aniitv*. action on a bill, it is admitted or proved that the acceptance, issue or subs'j(pient negotiation of the Ijill is alfected with fraud, duress, or force and fear, or illegality, the burden of proof that he is such holder in due course shtiU be on him, unless and until he proves that, subsequent to the alleg- ed iVaiid or illegality, value has in good faith been given tor the bill by some other holder in due cuiu'se ; (3) No bill, although given for a usurious con- ^'^^wnous con- sideration.. 96 Thk Bills of Exchangk Act, 1890. § 30. sidcration or upon a usurious contract, is void in the liaiulfs of a holder, uuIcsh hucIi holder had iit tiuio of itH transfer to him actual kuowled'^c that it was originally <:?iven for a usurious considera- tion, or upon a usurious contract ; (I) ronsiderntion (4) Evcrv 1)111 or uotc tlic Consideration of which i.urcimt.0 consists, iu wliolc or in i)art,of the purchase inout'v money ol ^ ' ^ , . , . " patent right, of a })atent right, or of a i)artial interest, liinitctl geographically or otherwise, in a })atent right, shall have written or printed prominently and legibly across the face thereof, before the same i.s issued, the words " given for a patent right;" and without such words thereon such instrument and any renewal thereof shall be void, except in the hands t)f a holder in due course without notice of such consideration; (5) The indorsee or other transferee of any such instrument, having the words aforesaid so printed or written thereon, shall take the same subject to any defence or set-off in respect of the whole or any [)art thereof which would have existed be- tween the original parties; (6) Every one who issues, sells or transfers, by ind(jrsement or delivery, any such instrument not having the words "givx'n for a patent right" printed or written in manner albresaid across the face thereof, knowing the consideration of such instrument to have consisted, in whole or in part, of the purchase money of a patent right, or of a partial interest, limited geographically or other- wise, in a patent right, is guilty of a misde- meanor, and liable to imprisonment for any term Liiibility of triinst'erce. Penalty. not e.\ ceedin< fit. See HOC I Tltc plu ftiUiiwinij 1. Wlu-r R. di' l>. 2) IIIL. C. J Ciiiiicnin, 212; Mowt (I) See also Ca. 2'J & 30 Vict., c 10, s. 5 ; 34 Vict., c 5, 8.52. CONSIUERATION. 97 not exceeding one year, or to such fine, not ex- §30. ceediiig two hundred dolhirs, us the court thiuks fit. See nectionfl 22, 27, 29, 30 and 38. The }>liiinti/r must prove that he in a holder in due course, in the fiilliiiriiin (•(iscs :^ 1. Wlirii tliciv is rmiid ill tlu' iiiakiiiij; of tlio note. Hunt v, liCc, 2 \l,\i' I.. 2^; Withail v. Jiiiston, 7 I.. 0. I{. :!'.»!); Convi-rsc ,\ Ihnwu, lilL.('..l. i'Jii; Wallers r. M(.liaM, ti L. N. itlC; Hank of Mutitival r. Ciiiiicroii, I'. C, 17 Q. n. (i.'M; Waddcil o. Jayiii's, 11. C, 22 C. P. '^12; Hducii v. Vie!, t5 Martin N. S. .'iOlj ; Louisiumi State I5aiik y. t)rk'iiiis N'avi<,'atiijii Co., 3 Iax. Aii. 21)1. la. WIkii a note in nijined by a married woman separated as to pro- perty, tlie liulder must prove tliat lie jfave iier value. Tiie .\rti>aiH Ijuilling Society c. Leiniou.x, 1') (i. L. R. 3.') ; The Union liunk «. GiiL'ii'iii, 15 Q. h. R. 31. Sec .section 22, n. 21. 2. When tiie note has lu'eii olitaiiicd liv fraud. Baxter i\ Bilodean, i) (^t.L. IL 2i;S; JJciangerr. Ha.xter, 12 R. L. ");{2 ; The KxclianL'e Hardc c. C'iirl.', !.■> 11. L.2r)l»; 31 L.C.J. DO; Morin c. (}renier,de Reliefeuille'.s Coilf. u. (iil2, n.2'); Dumas v. liaxter, 11 R. L. ll>(i; Waters/ Malian, HL. N..'!l(;; haxterr. 15ri'nnan, 17 U. !...'l(it); Maulson t). An ''.C, \\{^. II, si ;McCollum V. Church, 3(). S. 3')(;; Smith c. Fi.'i,,ii,iii,ir, 2 Hum. 117; ('nion Hank v. Ryan, 21 La. .\n. fjol ; Moliatt c. Murray, H Liiuifi. 3,")7 ; Copley v. McFarlaud, 'J Rolmison 1M3; Morgan V. VarluirnuL'li, Id Louis. 70; Mollatl i\ Murrav, IS id. 357; Witliall v. Ku>t(iii,7 L. C. R. 3'.)l); Mills c. Harl.er, 1 lloss 100, IliG. 3. Where an individiuvl takes a note made or indorsed hy a partner- ship, kiKPwinjj; that it was not made or indorsed for thepur]H)>esof the piininr-liip, the onus is cast upon the holder of proving; that the liartiici-liip siirnature was given with the knowledge or assi-tit of cviTv nii-mher of the firm. Cnion liaidv r. IJulmcr, 2 Ma. R. 3S(); Uarri-nii r. I'ooie, 4 Rohinson I'J.'i. See all the cases collected in Tiiikir, iird ed. 4.S5. See infra, n. 2(i. 4. WIktc the indorser places his name u])on a note in Mank, &- the maker, payee, and it appears that the name of the maker was iit'ierwards signed without authority. Hanscome v. Cotton, U. C, 1;. Q. H. 42. 5. Where a note is payable to bearer, and before it becomes due, tWplaiiititr, for a valuabh consideration, delivers it to certain persons, who luse tlie note, arul the .'•ame then comes into the hands of the I'laiiitill' by llnding, and not by assignment or delivery, and for con.-i- •ItTiiiitiii, the plaintifV cannot recover thereon. Wanzer i\ Stouten- l'ur.'li,U. C.,13 Q. B. 184. fi. Whore the indorsee is merely the pr?fe-no7n of the indorser who liasolitained the note by fraud. 7tV '1 he West London Baidv, Cass., I'Hh March. Is7s, S. 79, 1, 76 ; Exchange Bank of Canada o. Carle, M.L. li., 3Q. B. 61. I. Where the plaintiff's husband knows the frand and the whole liNtorj of the note. De.spurd t?. Elgie, Toronto, 20tL Auguet, 1890, ralouiibridge, J . 98 The Bills of Exchange Act, 1890. ?^ 30. S. Tlic maker or acceptor cannot plead in an action liy a lioldorin — due coiu^e of lulls Lriven as collateral necurily tor llie price ind, tlitit he lias just cause to tear evictiun ur tliat lie lias paid niorij.'ai.'tr' 2ii(l May, iHiitJ, D. 36, 1, 1G;{; Mawrin r. Cliauilers,6 KoImij.-od, 9. A note made juivablo to the cashier of a hank, anil drawn in a particular form to he within its usages, was sent loan a<.'ent to procure a discount at the hank ; the haidv havinjj; retused the discount, the ajrent sold tiie note, and applied the jiroceeds to his own use. liclil, that the note, on its face, showeil the jiarticular iiurjKise for wliicli it was made, and put a taker on inquiry, and he could not recover, thouj'h in fact he iiad not knowled^re ot the fraud. Fowler v- Jh'antlv, 14 I'et er.- :i^i. 10. When a note is taken hy a holder, under circuniPtances afl'urd- ing reasduahle ground of Husjiicion, he should empiire if the paitv came hy it hduestly, and if he take ii under these circumsiiuirei', without proper enquiry, with a view to his profit, it is at his own risk. Niclidlsou r. Patton, l.'J Louis. '21(i. See Mawrin r. Chambers, IG id, 207 ; ihrnes v. Cordon, H. L., 2 Apj). Cas. (JIG. l(l(/. Where a cheipie is torn into four pieces, and afterwards jiastpil toirelher, and much soiled, it was iieid to carrv notice on its fi -iitti- cieiil to put a pui'chaser upon iiKpiiry, and the hank jiayini: lhecli(i|iie witliout iiHiuirv w IS held liahle for the amount. Schoiev c H UllS- bottoiii, 2 Oampb. 4b5. Supra, iin. D, 10 and section 21>, i.ii. 1.2,3. 11. lleM, under the Enjrlish Act, that when fraud is jiroved, tlielnir- den ot ]iroof is on the holder to prove hoth that value has hcfn jziven, and liiat it has heen given in good faith without notice of the fraud. La am l f. llaslar, 58 L. J. Q. B. 4:52 ; MH W. K. 10!». 12. Defendant nave a note to (}-, who agreed to hold it as sectritv, n vitilation of this agreemen t,(i im lorsed it to C, in order t o raise money for G. C. got the note discounted, and had to takeitiqiat maturity, and two years afterwards he transferred to II. Held, that Ulllc; (" nv the circumstances under which he got the not c, or was impliratcdin (l.'s fraud, he would have a right to recover the aiiKHint from the defi'udant, and tli.it II.. clainiiiiL' under C, liad the .suiie right. Hastings c. O'Maloney, X. 15., 4 A.' 305. 1.'}. A holder wlio has accepted a note given for the price of a vessel transfcricd hv a hill of sale,ilulv siL'ne(l and registered, hut seized in execution hefore actual possession was td it allied, is entitled to reiiiuT, aker shows that he was induced to make the note Iv unlei th m fraud. Taylor i: McFarlane, .'? li. A: G. 10. II. If a note he fraudulently ohtained from the holder hy nuan-of n misrepresentation, he will not thcrehy lose his rights against llie ty who has committed the fraud. Urover i', Watson, Steven's N.B. ig. GO. T/it' phihiiijf ia not bound to prove that he gave value in theJoUow- part I)ig 15. In Quebec, when the note is cxpresseil for " value received, ""anil the drt'eiidiint iloes not accomjiany his plea of want of consideratiuii bv the atlidavit rcipiired hv art. 1-15 of the Code of Civil rrnccdiire. K.dly r. O'Connell, K; L". C. U.IK); Straas r. (Tilhert, 15<,». h. R. 6'Jl. Otherwise by section 30 (2). Sec notes under sections 3 and i', 10. Wheue tlie defendant has only proved that lie received no value, richette r. Lajoie, 10 L. N. 206 ; ilair f. McLean, U. C, 1 Q. H. 45J. Consideration. 99 17. Wliero tlie (Icfonduiit ha^ not iinpoaclictl the con^sidoration. Sutlicilaiid v. Patterson, 1 Out. \)\<:. ')12. l"^. Wiure mMHi till' face ot'tlio liill tliciv is a prosuiiiptitjii that tlu' ild'cinlaiit, tho ilrawtT of a i'lu'i|ue, liaii im iiiniii'V in tlic hands of the iiniuoe, r. g., where the defendant wmte to iilaintill's : " I'k-ase pay to the liearor $HiJ(), a:id I will see von later." Nichols v. Kvan, 2 it. L. 111. lit. Held, tliat as tlie defendant liad put hi.« defence on thejiroundof I'.irjery, the plaintiti'was not calh'd npoti to prove tlie considei'ation, iiof \va> the jndize to leave to the jury whethei' he iiad ;^iven anye siileiation fof the note (see Harvcv r. Towei-i, G Exch. 05G). Matl. vi't i\ liuach, Mich. T. ls;{:!; N. "H., 8tev. Di;:. Cli'iliners iif i)it;fey\ li(ii< Uie foUowiiuf il/usfrdtiouft : — 2(1. A. draws a hill on B. and indt.rses it to C. C. sue.« R. It is sliowii that |{. accepted it for A.'s aecoinnioilation. C. is not called on to imive that he L'ave value, he can recover without so doing. Mills r. l!arlier(ls;}';),'l M. Si W. 125. '21. H. makes a note pavahle to C. C. indorses it to D., who sues ]?. If it apjiears that B. made the note for an illejial consideration, D. iiiii>t jiruve that he gave value. Bailev r. Bitlwell (1844), lo M. »fe \y. ::\. 'I'l. The holder of a hill indorses it to I), to get it discounte(l. 1). fniinlulenily negotiates it to Iv, who negotiates it to F. F. sues the aii'e|itor. Evidence is given of D.'s fraud. F. must prove that he i«ii holder for value, (^f. Smith i\ Ih-aine (1S;M), 16 Q. IJ. 214; li.iiT r. Alderman (IS.').'}), 14 C. JJ. '.lo 2.!. li. makes a note payahle U) C , the consideration for which i.s a wii'.'er, /. ('., a consideration void hy statute, Imt not prohihited under ainiially. C. indorses it to D., who sues the maker, h^videm-e i.s ■i\\v]\ cif these facts. I), is not called on to prove that he irave value. I'it.li r. .lones (IS.^)')), i". E. A: B. 2:is ; Belfast i}aidving Uu. v. Ddherty (1879), 4 Ir. L. K. Q. B. D. 124. 24. Action against the maker of a iu)te ]iayahle to hearer. It is A\»\yu to have heen stnlen from the true (jwner. It lies on the ImMer to prove that he gave value. Raphael r. Bank of England (Inm), 17 C. 1!. IC.l. .'■>. \u acceiitance is given in renewal of a hill which turns out to I'l- ii I'orgery. The genuine hill is nego'iated, and the holder sue-; the aLrt|itnr. Evidence is given of these facts. It lies on the holder to iniive that he is a holiier for value. Mather v. Maidstone (IS.j(i). 18 r. I!. 27;!; 25 L. J. C. P. .'UO. 2tl. A ]iartner accepts a l)ill in tlie firm's name for a private deht aiiil in fraud of his copartners. Tiie hill is negotiated. The holder 'IK'- the lirm as acceptors. As soon a-^ it appears that the hi'I was livi'ii fur a private deht, the holder is called upon to pmve liial he is a Iml.ier f..r value. Hogg i-. Skeen (18i;5), IS C. B. N. S. 420 ; ;{4 L. .1. ('. P. 15:i. 27. If the holder show that he is a holder for full value, it is strong pviilciiceof /^o/if? //(/('.v, and was fornierlv iield to re-shit't t'- • 'nnk'nof jTenf. Haphael' r. Bank of England (1855), 17 C B. Itii ; hut Cf. J<'Me< V. (iorih.n (1877), 2 App. ('as. at p. t'.28. 2^. But what if the holder did not give full value ? In America it lias heen held that if the holder ha« in irood faith given partial value, 111' tiiiw recover pro fnnfu. Holconih r. Wvckotr(1870), 10 Amer. U. 2U' ; Dresser c. Mis.sunri Co. (187G), 3 Otto 92, Sup. Ct. U. S. 100 The Bills of Exchange Act, 1890. ii 30. RIGHTS OP HOLDER IN DDK COURSE. Bills mon- void. y AVant or illcf^ality of consiileration has f!;ivcn rise to fow con- fliots between the immediate' parties, compared with the number oi' cases recorded, where the plaiutiflf is a remote party and a holder in good iaith and for value. Chalmers, pp. 89, 90 ;iud 91, lays down the following rules : — lo. " Fraud is a dcfitice against an immediate party and ag.iinst a remote party who is nov a holder in due course ; 2o. " Illegality of C(»nsideration, totid or partial, is a diifenco against an immediate party, but not against a holder in due course ; 3o. " When a bill is given for a consideration, which by statute expressly makes it void, it is, as against the party who gave it, void in the hands of all parties, whether immediate or remote." Yet the decisions, even in England, do not seem to agree entirely as to the correctness of these propositions. In the luitesj under section 13, will be found two Ontario cases, where the Courts held that notes given on a Sunday contrary to the Provin- cial Statute which declares '' utterly null and void " all contracts made on that day, were however valid in the hands of a Imlder for value and in good faith. In England, where all contracts or agreements ** by way of gaming " are " null and V(nil " by statute, the hond Jidc holder for value may likewise recover although he be aware of tlie circumstances under which the bill was originally given. In Lilley c. Uaiikin, which originated since the })asi-ing of the Bill of Exchange Act, the Court of Queen's Bench so held in 1887. See sect. 27, ii. 52. IIuildlestOD B., said in this case: "As regards the other point, namely, that the judge should have asked the jury whether Lilley hinl knowledge of the circumstances under which the notes were given — that point wiuild have been a good one, if the transaction between the two had been illegal and not void only. The Statute 9 Aime, c. 14, avoided bills and notes given for certain purposes, and by 5 and G Will. 4, c. 41, s. 15, such notes were to bo deemed not merely void, but as given for an illegal consiileration, Tiierefore, if these notes had come within the provisions i'* Auue, c. 14, the statute 5 and G Will. 4, c. 41, would have Consideration, 101 made them illegal ; but they do not, and 8 and 9 Vict., c. 109, s. 18, merely enacts that cotitracts by way of gaming or wager- ing shall be void and not recoverable by legal process. It is not necessary to go through the various authorities. Fitch v. Jones is supported by lieeston v. Beestou, and the former expressly decides that it is no defence to an action of this kind to shew that Lilley was aware of the circumstances under which the notes were given if consideration was given f'>r them. Tlu're is no doubt that my brother Manisty declined to put this question to the jury, and I think he was right in his refusal to do so; but even if lie were wrong, his omission would not prejudice tiie defendant having regard to all the circumstances. This motion must therefore be refused witli costs. "Smith, J. — -This was an action by Lilley, brought on two promissory notes made by Rankin in Baird's favor, and indorsed by Hiiifd over to Lilliiy. In the cross action Baird was joined is a defendant, but Rankin was rightly non-suited in this action, Now,wi.s there any misdirection ? I thought at one time that the second question mentioned by Mr. llorne Payne ought to Imve been left to the jury ; but my brother Manisty was clearly right when the various statutes are looked at, the consideration for lliose notes being not illegal, but void only, under 8 and 9 Vict., c. 109. It might have been that the notes were given without consideration as between Rankin and Baird; still, if they were emlorsed over l()r value to LiUi'y, the latter could recover on them. Mr. Daniel has satisfied me that the question, whether Lilley received the notes with notice of their having been given to Baird in respect of gambling transactions, is quite immaterial as iiffoetlng Lilley's right to recover upon them. As regards the qiv'stion of consideration for the imlorsement of the note from Baird to Lilley, my brother Iluddleston has dealt with that point, and i do not desire to add anything to what he has said." It seems diificult to reconcile this decision with section 29, sub- section (/>), which deiines a holder in due course to be a person who took tlie bill in good faith and for value, and that at the time the bill was negotiated to him he had no notice of any defect in the title of a person who negotiated it. No allusio*^ was miKle to the Act. It seems that a distinction must be made. §30. If the bill be Absolutely void. ij.li 102 The Bills of Exchange Act, 1890. i^ 30- _ merely voidable or void, or for an illegal consideration, the liokler in due course is entitled to recover ; but if it is absulutfly void by statute, he cannot. This distinction is clearly defined by Tiedeman, s. 178 : " Where the consideration is declared by decisions of the Courts or by statutory enactments to be siiujily void on account of illegality, it does not affect the v.ilidity of the contract any more than the mere absence of a consideration ■would affect it ; and the bond fide holder of a commercial ins- trument would nevertheless be able to maintain his action upon it. But where the statute, making the consideration iliegnl declares a contract founded on such a consideration to be abm- lutdy void, the language of the statute must be given its proper effef', and so the Courts have held that the commercial p^ipor founded on such considerations is void even in the hands o^ bund fidv holders." See also Hawthorne, 77. Such is the clear policy of the Bills of Exchange Act. By sec- titrument, or unable to read with or without his glasses, is called ujton to sign a p;iper, commercial or other, he should re- quest the assistance of some third party in whose charaeti r ho has confidence, in order to ascertain the true nature of the instru- ment, hef ire affixing his signature to it. And if he fail to do so, orre((uest tlie assistance of a man unworthy of his contit ."uffer, and it is highly importuHt, if not indispensable to the uegotia- Consideration. 107 tion ;ui(l Viiluc of couimcrcial paper, tlint the loss should bo sus- § 30. taimd by the ptirty who has occasioned it, however innocLUt a victim he iii:iy be. Tliis (Idctrine does not seem to be ni'w in the Eiiiilisli Law, and evtii ill Hyles on Bills, cd. 1884, p. 15(1, sevi'ral oUUK'cisions arc (|Uiiti'd I'lilly supp()rtin>j; the same: — " IJut where a iVaud has lit til ])raetised on the maker or acceptor, an indorsee tor value without notice may, nevertheless, recover a<^ainst him... So, in an autioii by tlie indorsee against the maker of a note thirteen vcars old, the elendant obtained a rule nisi to set aside a jiuli:iiK:i- by default, on an affidavit that he, the; defendant, was »iiiinllI). This (h'eision was hased upon the follow ing provision of the luipi-riiil Lareeny Act, 'Il-'l't Viet., c. !)!), see. 100. introduecd into Canada in ISC.K by tlu; '.Vl-'Xi Viet.,c. 21, sec. 113 : "Provided that if it appear... that the valiiahlo security, beinj^ a neuiotiable inst' •.nu'i't, has bond Jidf hnii taken or received by transfer or delivery, by some person or hoily corporate for a just and valuable consideration, without any notice or without any reasonable cause to suspect that the siuiu! had by any felony or misdemeanor been stolen, taken, obtained, extorted, embezzled, converted or disposi'd of, in such case the Court shall not award or order the restitution of sucli security," Field, J., observed in Chichester 7'. Hill : " I think that the proviso in tlie section we are construing is not merely applieable to the words that it immediately follows, so as only to prevent a summary (U'der beinjj:; made against bona fide holders of iiei;o- tiable instrunnuits. I think it is intended to cut down the jreneral rii;ht of property given by the first part of the section, and to protect the bond fide holder ai^ainst all proccedinus. la so deciding;, it seems to me that we are deciding both aceonlinj.' to law. and according to what is just between the parties, tlioudi. no doubt, it is a hard case on both sides." Williauis, J. : ''I am of the same opinion. It sei'ms to me that by this section the title of the bond fide\\o\Ac\' of a stoli-n instrument is protected against that of the person from whom it was stolen. As to the construction that has been put upon the statute of Hen. S., 1 may say tliat I do not think it ever was the intention of that statute to art'ect the title accjuired by a purchaser in market overt. And, upon searching, I find that that was the oiiinion of all the judges when the act was first ])assed. But r practice sprang up at the Old Bailey of disregarding that title, anil the practice became too inveterate to be disrey;iirded by the judges. So that I am not at all pressed by the construction that has been put upon the statute of Hen. 8. I think it is clear that the title of the bond fide holder for value was intended to be protected in the public interest." Consideration. Tlii.-" coiiclusion is in accdrduiico with the goncriil principles of tlio Civil Code of Quobi'c. Art. 14^7 says: " Tiie .sale of a tiling wliicli does uot brloiiij; to tiie seller i« null, subject to tlio txc'iiitioiis declared iu the three next following articles : — "Art. 1488 ; The sale is valid if it he a couiun'rcial matter, or it' the seller afterwards become owner of the thing. " Art. 1489 : If a thinu; lost or stolen be bought in good faith in a fair or market, or at a public sale, or from a trader dealing in siiiiihir iirtieles, the owner cannot reel dm it without reimburs- intr to the purchaser the price he has paid for it. "Art. 14tM): If the thing lost or stolen be sold under the authority of law, it cannot be reclaimed. '• Art. 2208 : Prescription of corporeal moveables takes place nftor the lapse of three years, reckoning from the loss of po>.ses- sion in favor of possessors in good i'aith, even when the loss of po?f*e!>sion liaH been occasioned by thei't. " This prescription is not, however, necessary to prevent revcn- dieatii>ii. if the thing have been bought in good faith in a i'air or umrktt, (ir at a public sale, or from a trader dealing in similar iUtiflt's, nor in commercial matters generally, .saving the exception contained in the following paragraph. " Nevertheless, so long as prescription has not been acquired, the tliiii'-' lost or stolen may be riivendicated, althouu'h it have botn hiiught in good faith in the cases of tlio preceding para- graph ; but the revendication in such cases can only take place upon reimbursing the purchaser for the price which he has paid. '•Ir the tiling have been sold under the authority of law, it cauiMit in any case be reveudicated. '■ Tiie stealer or other violent or clandestine possessor of a tiling, and his succe.>anie principles to a great extent will be found laid down in Tudiir, Lead. Cas., 3rded., 1884, pp. 270 and following, under the heading, "The case of I^Iarket Overt." 109 §30. ■ I no TlIK P)ILLS OF EXCIIANOE ACT, 1890. §31. Il Kt'ijotlatlon of Bills. NoRotiation of 31. A bill is lu'ffotijited when it is tniiislVMied bills. Irom one person to anotiier m sueh a niiiniier us to constitute the transi'eree the holder oi'the I)ill; To bearer. (2) A hill payable to bearer is negotiated l»y del iver y To order. (.")) A bill payable to order is negotiated by the indorsement of the holder completed by del iverv J J dordemeiit Without in- (4) Where the holder of a bill payable to his order transfers it for value without indorsiui: it. the transfer gives the transferee such title as the transferror had in the bill, and the transferee iii addition ac<{uires the right to have the indorso- ment of the transferror; (') Personal lia- (ij) Where auy person is under obligation to indorse a bill in a re[)resentative cai)aeity, ln' niav indorse the bill in such terms as to negative per.sonal liability. Si'o sections S, 25, 2(1, M\ ami 75. 1. TIk' tt'nii " Mi'irotiiitc " ill rcftTonce to hills of cxoliaiisjre iiioaii'* bi av rson iiy n oiiled \y be to traii>t'rr tni' a valiialilf (■oii-idtTalioii l-ost \U cr r. liuwi'i li. 2j(;. Si'f also Wookcv V. Pole, 4 B. ,V Aid. 10; S r.c wan r. N. IS. Australasian Co., 2 11. Ac C. IH-I; Crouch r. Civdit Foncicr. L. U., "< Q. J}. :{SI; MiikT r. llaiu-, 1 Sinitii Lead. Cas. 47!); Whistler r. l\.rsti-r, 14 C. 15. N. S. 257. 2. A note hearing tlie .-taiiijiof a hank, that the note is its iiniperly, is .still negotiable. Jiarthe r. Arinstrung, 5 li. L. 21.'{. See seetioii 75 of the Act. ."5. A hill of e.xcliange was thus indor.«ed : " Pay to the order nf the Bank of Nova Scotia, Amherst," and bv the agent of the iianivat (1) See infra, aeotion 38, nn. 1 to 3. NudOTIATION OF BiLLS. Ill AhiIkm'-I, " Pnv tc. the order nf the llmik nf Ndvii Scdtiu, Hulifiix, ^ 31. fur cnlli'dinti.' Till' liill was ilisliuiKucd for nuii-paviiu'iit ami riiiuiK'ii In till' airciicy at AmliiTst, wIki tniiiHit'iTcd it loA. witlidnt IlIlV iiidoi'scitii'Ml liciiiL' made otlitT than tliixc alrcadv' on llic liill. lli'id. iliiii till' l:ill, liaviii;: Ihcii spfcially indorrcri'rd ('.\cc|pt liv i •orsciiKMit. For.-vtli r. LawiTuci', 7 U. iV ll ; IJedarridf, art. IS7. Tiiesanie rnle prevails in all the Stales of the i'liioii. Kandoiph, § 7i'>l, 7.'>2, l(i7r(. But in Kn;:laiid. C^nehec and llic utiier provinces, it would seem that a sepaiale Iran-^fer or assij.Mi- iiii'iil uoiild lie iieeexary. See section 2'.\, n. ."), anil notes under that si'i'tioii. Si'c also notes uinU'r section 5.'{. M, Where a note is uiade piiyahle to A. or hearer, and A. indoi'se.s it,llion;;li the indoisemenl is not nei'es>ary for liie purpose of transfer, vci A. will he liahle on his indorsement. Hooih r. Jiandav, I'. V., (J ■Q.H.21:); Wilcocks r. I iiminjr. r.C.,7 Q. J}.;{72; Scott r. Doujriass, b 0. S. 207 ; Sti'cr r. Adams, (i O. S. (iO. 9, When a note made payahlo to A. or hearer was afterwards iiiilurs((| hy C. iind ih'livered hy I lie latter to A., C. was held liahle iis aiiiiidor-er. Vaiil endeii r. Vandiisen, U. C, 7 Q. B. 17G ; liamsdcll r. Telfr, I'. ('., ■) (). n. 50S. See section 5(i. 111. The holder of a hill payahle to order transfers it to D. for value witlioiit indorsing.' it. I>. cannot sue the acceptor in his own name, iir iK'L'otiale the hill hv iiidorsiiiveill<'' ('. Dai^iie, 2 Q. li. H. 121); Scott i\ Tunil.nll, »". L. N. :{'J7 ; Liiiircut r. Mcrcier, 8 (I. \^. R. Ha; Desclianips r. Lcjrer, M. Ij. R , '^ S. ('. 1 ; Wiilctt r Court, (1 I.. N. 2(»4 ; KMrr r. Keilv, U. V.,X Q. H. ■Jill; Mutralt r. Uees, V. C, 15 Q. 15. ;V27 ; lan.<\p\ tills drafi and all henetit of the money secured therehy to D." This is an iiulorsenient by C. Ricliards i\ Fraiikuni (1840), 9 C. & I' lit M •)•>•. I. 11.). lit] 4. (' , the holder of a note, signs it and writes thereon, "I beqiieath — I'liv the within to 1) , or his order, at mv death." and '^ive-^ it to I). Tl lis 1^ mv V.tii. not an indorsement, but an attempted te-tamentarv gift, ahd under the Wills Act. Mitchell c. Smith (18()4), M L. J. Ch. 5. .\ii express promise in writitisx to indorse a bill is not an indorse- ment, ("f. Ihii rop L\ Fisher (18(U), 10 C, B. N. S. at p. 204 ; ;iO 1-. J. C. 1 ) •) •^(1 mi ri-(i i. The a-si<:niiieiit of a note bv a separate writinir is not an indorse- ■iit, lie Harriiiirtoii (1804), 2 Scho. .k l-ef. 112 ;'Cf. K\ parte liar- u(17". A partial indorseinei.t, purporting to split the right of action on i* bill, 1.- invalid as u uegotiution, but may operate as an authority to 114 The Bills of Exchange Act, 1890. §33. Conditional iadorst'uii.'nt. roccivo payment of the amount tijoreby specified. Willis i\ Barrett, 2Stiirl<,'2'j'. 11. Uill payalilo " to the order uf C. and D." F alone indorses ii to E. Tiiis is insullicient. E. cannot sue the acceptor. Cavickr Vickerv (Hf^l), 1 Doiijrl. <;r.2 ; Vi. lleilbut o. Nevill (ISIW), L. K.,4 C. 1'. at PI). ;{o(!, ;i;')H, per W'illes, J. 12. ]{ill payable " to the order of C. and D." C. with D.'s autho- rity indorses it '■ for self and 1)." This is .sutlioient. 111. Bill payable to " C. and D., or the order of either of them." C. alone indorses it. Thin is siitHcient. Watson i>. Evans (iHGi!), 32 L. .1. E.\. 1:57. :s:s. Where a bill purports to be indorsed coii- ditioiitdly, the condition may be disregarded by the payer, and payment to the indorsee is vulid, whether the condition l>as been fuHilled or not. See section 11 (2). It\vas formerly held that if a bill was indorsed conditionally, the acceptor paid it at his iievil if the condition was not fuhilled. Unlnrt- Son ('. Kensinjftun, 4 Taunt. IJO. Settled otherwise by the above a-c- tion. Indorsement in blank. iM. An indorsement in blank specifies nu in- dorsee, and a bill so indorsed becomes payable to bearer ; (2) A special indorsement specifies the person to whom, or to whose order, the bill is to be pay- able ; (3) The provisi(ms of this Act relating to a payee apply, with the necessary modifications, to an indorsee under a special indorsement; Conversion of (4) Where a bill has been indorsed in blank, any blank uidor- ^ ' ^ . holder may convert the blank indorsement into a special indorsement by writing above tlit; in- doi'ser's signature a direction to pay the bill to or to the order of himself or some other person. See section G. 1. An indorsement to pay the trustees of an insolvent firm, without naniinj^ them, is snlJiciently certain, on showimr who tiiey are ami that they act in that caj)acity. Auldjo w McDoujrall, ;{ O. S. .'J'J- 2. The holder of a bill indorsed by C. in blank writes over C's. sigua- ture the words, " Pay 10 the order of D." This is a special iiuiorBe- Special m- dorsemunt. Application of Act to in- dorsee. sement. Negotiation of Bills. 115 nxMit from C. to D. ViiK^ont v. Horlock, I Camp. •142, HirschfielJ S 35 r. Smith, L. R., 1 C. P. ;U(). — ^ 3. Tlie lioldor miiy iit any time strike out any iinlorsement which is not necessary to his tith', ami tlie imlc;rsir and all suhseijueiit imlor- (iersaredischarj^ed. Mayer t>. .Jadis, 1 M. i[, Huh. 247. See section (5;}. •1. Aliter if tlie indorsement be struck out hv mistake. Wilkinson r. Juiiiisun, 3 \i. k C. 428. 85. An indorsement is restrictive which pro- f^pstrictive . . indorsemeat hibits the further negotiation of the bill, or which expresses tbat it is a mere authority to deal with the bill as tliereby directed, and not a transfer of the owuersliip thereof, as, for example, if a bill is indorsed '^ Pay D. only," or " Pay D. for the account of X.," or *' Pay D., or order, for collec- tion ; " (2) A restrictive indorsement gives the indorsee iiinrutof in- the right to receive payment of the bill and touuder. sue any party thereto that his indorser could have sued, but gives him no power to transfer his rights as indorsee unless it expressly authorizes him to do so ; (o) Where a restrictive indorsement authorizes iffurthpr further transfer, all subsequent indorsees take the authorized, bill with the same rights and subject to the same liabilities as the first indorsee under the restric- tive indorsement. See section 'S'l. 1. When a liil! is drawn payable to the order of A. for the use of B., it liiiiiiot be traiisferrei; ;'or the benefit of any other than B., and the imlursee is bound to '-ee that the money he pavs is applied aceoivliiig to the trust stated in the bill. Munro c. Cox, U. C, M) Q. B. :3G3. Sue crossed cheques, section 75. 2. But if the trust or restriction does not appear upon tlie face of ilie instrument, it would bo no defence as ajxamst a holder bond jiile for value, without notice. Kerr v. Straat, U. C, 8 Q. B. S'S>; Austin o. Farp.er, U. C, ;]0 Q. B. 10. 3 ]{ill indorsed " Pay D. for my account." D. cannot by indors- iiVi: it lo M authorize E. to collect it. . lifer if the indorsement ran, " Pay D. or order for my account." Lloyd f. l3igournay,5 Bing.532. 116 The Bills of Exchange Act, 1890. 4. A cheque payaMe to a certmn perfon or hearer is equivalent to ^— a clie. or order for my use." The bill is dishonored, and I), such A. the drawer. If A. have any defence airaiiist C. he nuiy set it up against D. Buckley r. Jackson, L. R., ii l^x. 135. m When ne^O- ti»hle till ceases to be 60 a«. Where a bill is negotiable in its origin, it Negotiation of Bills. 117 coiitimies to be negotiable until it has been (a) | 36. re.sti'ictively indorsed, or (h) discliarged hy pay- ment or otlierwise ; (2) Where an overdue bill is negotiated, it can Nepotiatioa be negotiated only subject to any defect of title wii. affecting it at its maturity, and thencetbrward no person who takes it oin acijuire or give a better title than that which had the person Iroin whom be took it; (^) (o) A bill payable on demand is deemed to be when mh 1 • i 1 • , 1 • 1 <■ , 1 tleenied over- overdue witlun the meaning and tor the purposes due. of this secti(m, when it appears on the lace of it to have been in circulation for an unreasonable k'ligth of time ; what is an unreasonable length of time for this purpose is a question of fact ; {^) (4) Excei)t where an indorsement bears date Pre?=nrnn';nn after the maturity of the bill, every negotiation tion. is prhrul facie deemed to have been eifected before the ])ill was overdue ; (0) Where a bill which is not overdue has been Taking bin d' 1 1 ^ 1 i. 1 "i. 'i.! i.* siibsiMiiieiit to islionored, any person who takes it witli notice uishouor. of the dishonor takes it subject to any defect of title attaching thereto at the time of dishonor ; but nothing in this sub-section shall alfect the rights of a holder in due course. 8tT sections 10, 28, 29, 3H, 45 unci 59. 1. A liill (if cxclianjic is noirutialilo nd inirnitmn \\x^\\] \[\\a^ lioon \xw\ liv, (ir (liscluum'd on hcliall' uf, the acceptor. Callow v. Lawrence, C. 15.N. 8.597. 2. A note liavinur at the time of its issue an indorsement tliat it was iiii •191. t to 1)0 hold cannot be indor.sed. Wil.son v. McQueen, 1 Out. 1' lil. (1) See .section 38 and art. 2287 of the Quebec Code. (2) See section 85. fl 1 118 The Bills of Exchange Act, 1890. *^ 36. Where an overdue billis negotiated: — 3. A liill jmyalilc dlliciwiso tlian on doinand is ovonluo af»"v tlie C'xpiratiiiii of the last day of grace. Cf. ijeftley v. Mills (IT'Jh, 4 T. R. 170. 4. It is 110 (iefeiico to an action by indorsee ajrainst tlie maker of a note, that a |)rior indorsee, while the holder, and tiefore the |ilaiiiiiif took it, recovered a judgment against the defenihmt and payee, and tlmt tiie note was indor.-ed to the plaintilf when it was ovenlae. McLen- nan V. McMonies, U. C, 28 Q. B. 114. 5. Wiiere an overdue note has been retired b}' the Pubstitiition of a renewal note, it is cancelled and cannot be put in circulation again even by the j)avee, who has taken up the renewal note out of his own funds. Cuvillier v. Fraser, U. C, 5 Q. B. 152. 6. If a promissory note is indorsed over as a aocnrity for advance,? only, the holder is subject to the same equities as the j yee. Esta- broiiks 0. McKenzie, Steven's Digest, N. B. lleports, 78. 7. Where after maturity the maker supplied the liolder and others with board, etc., the valne of which it was agreed shonlil be applied in payment or reduction of the note. Held (reversing the judgment of the County Judge), that a subsequent transfer of the note coiild only be made subject to the claim of the Tiiaker for such board, etc., ainl that such claim was an equity which attached to the note in theplain- ' ' Chingi-.Jetleiy, 12 A. R. 4:52. tiffs handf Semlde.- and refusal, to be treateil as overdue. Donj^an v. Small of pavnien , 2 KJrr 8S 89. Semlde. — A note payable on demand is, after demand of payment id refusal, to be treateil as overdue. D See also McCalmont v. Clarke, 2 Kerr 98. 8. Tlie indorsee of an overdue note takes it subject only to such equities as attach to the liill itself in the hands of the holder, when it falls due, and such indorsee would not be atlected by a collateral matter like a set-otf, due from the endorser to the maker. Wood v. Ross, U. C, 8 C. P. 2'Jl) ; Kerr r. Straat, U. C, 8 Q B. 82 ; Ferguson v. Stewart, U. C, 2 L. J. IIG ; Tliomas v. McLeod, 1 Han. 588; Amazon Ins. Co, V. Quebec and Gulf Ports Steamshii) Co., 2 Q. L. R. 'MO. Req. '."th July, 18(i7, D. (i8, 1, 72; Miller v. Streeder, 18 An. 5G ; Req. 12th January, 1869, D. 72, 1, 125. The following objection.s have been held to be defects of title: — 9. An agreement to give time to the maker. Britton v. Fisher, U. C, 2tiQ. B.:5:{8. 10. An agreement not to be liable. McQuinn v. Sorrel!, N. B., 2 A. 140. 11. An airreement not to netrotiate a note after maturity. Grant v. Win,stanley^U.C.,21 C. P. 257. 12. A payment after maturity by the payee of a note signed for his accommodation. Pyper v. McKay, U. C, IG C. P. G7. 1.3. A payment after maturity by the payees of a note signed ftor ha-^ no riirlit of set-oil" aL'ainst 1). Oulds r. Ifarrisun (1854), 10 Hxch. 572; E.\ parte Swan (iH(iH), L. II., (i Eq. Ml. 21. The manajrerof the" X. Rank" abstracts moneys belonginj: to tlie bank, and purchases therewith an overdue bill of exchartL'e, wjiich lie iieu'otiates to I). The " X. Bank," and not D., is entitled to the lill. and can ))rove au'tiinst the acceptor's estate if he become bank- rupt. K\ parte Oriental Hank (IS70), L. . ., 5 Ch. 35S ; Cf. Lee r. ZiiL'ury (Isl7), H Taunt. 114; and, l)y analoiry, He Gomersall (1875), 1 Cli. I). 137. As to the limits of tlie pri' ' rhat the ri;rht-< of n ]iei'-(in not a party to the liill may const! u .n eipiity attaching to It. See Warren v. Ilaigli (1H75),' Go Nev, , rk R. 171." 22. A bill payalile three months afterdate is accepted to accommo- (liite llie drawer. After the bill is overdue the drawer indorses it to C. fer value. C. can recover from the acceptor. Stein v. Yglesias (1834), 1 C. M. k R. 5(i5. ;57. Where a bill is negotiated back to the Negotiation of • T i XI . liill to party drawer, or to a p: .i* indor.ser, or to the acceptor, already Uubie such party may, »abject to the provisions of tliis Act, re-issne juid further negotiate the bill, Imt he is not entitled to enforce the payment of the bill against any intervening party to whom he was previously liable. See section 59. 1- .\ bill was paid after maturity by the drawer, who waived iiro- te«t. etc., and who iiumediiitely indorsed it. Held, tliat he wa< litiblc to the iiiiliirsee jointly and severally with the acceptor. Hovey v. Nolin, IS K. L. 4.3«). I J , The following digest of cases is from Chalmer.s, at )>age 109 : — 2. Bill payable three months after date is indorsed by the holder to 120 The Bills of Exchange Act, 1890. i^ 38. Rights of the holder the acceptor. At any time befuro maturity thcaoce|)t()r may reissue tlie liill ami indorBC it uwav. Atteiihurough v. MucKciizie (IMti), 25 L. J. Ex. 24i. 3. The drawer of a bill payalih' to drawer's order iiidnrscs it lo C, wIri iiidiirsc's it to 1)., wiioiiKhirst's it hack to the drawer. 'I'he drawer, either l)efore or after its maluiitv, iiiav re-issue the hill and indnfM' it to K. Cf. Ilul.hard r. .laciisnii "(ls27), 4 HiuL'. ityo ; .Innes /-. Uviml hurst (IKJO), y C. H. 17;{. Tiiis is suhject to seel. 5'J (2), (:5). 4. The drawer of a hill payable to drawer's order indorses it for value to {'., who indorses it to D., who indorses it hacU to the drawer. I'he lirawer cannot recover from C. or I)., for they in tni'n cuuM recover from him as drawer. Cf. His'op r. Ilavward (17'Jl), I T. U. 470; Wilders v. Stevens (1S4(;), 1") ' . .t W. at p. 21'2. 5. The payee of a l)ill indorses it "without recourse" to 1)., who indorses it »o K., who inihirses it hack to the jiayee. 'J'he payee, in liis character of third indorsee, can sue I), and E , for they have no claim ai,'ainst him as a prior irxlorser. Cf. Morris r. Walker (1850), 15 Q. 1>. at |). !'>\)\. l .'re is here no circuity of action. (). Tlie drawer of a bill indorses it tt>C., who has previously under- taken to be resjionsible for the price of floods supplied to the acceptor. C. indorse- the hill back to the drawer. The (irawer, in his charac- ter (if mdorsee, can sue C, for ('. has no remedy over againsi iuui. Wilkinson )'. I'nwin (ISSI), 7 Q. H. 1). GliO, C. A. See sections 21), 27, ;!0 and ;U. liH. The rights and powers of the hohlerofa bill are as follows : — (a) He may sue on the bill in his own name ; (/>) Where he is a holder in due course, he holds the bill free from any defect of title of prior parties, as well as from mere personal defences available to prior parties among themselves, iiiul may enforce payment against all parties liable on the bill ; (r) Where his title is defective, (1) if he nego- tiates the ])ill lo a holder in due course, tiiat holder obtains a good and complete title to the bill, and (2) if he obtains payment of the bill the person who pays him in duo course gets a vidid discharge for the bill. See section.^ 28, 27, 30 and 31. 1. The holder of a non-negotiable bill indorsed twice has his recourse aL'ainst his imlorser, but not against anterior partie.-!. Jones v. Whitby, I) L. C. ii. lyi. Negotiation of Bills. 121 2. He has no better title tlia;i the original holder. Marks t>. Whalis, S 38. 21 l.u. An. 110. -—^ ;i. AliliuM^'li the note was not ncfiotiable, the hank, inequity, was entilk'il to reeiiver, it hciii;: sIidwii that the note was intciuled liy the iiiiilor- to have heeii niaile negotiable nni) was iss\ioi| liy tiieni as fiirh, hilt by mistake or inailverlenee it was not expresseij to lie jiay- alilc III liie order of the payees, llars'ey r Hank ot'llaniilton, Ca. 115, S. C, 711 ; !> A. II. (Ju;"). Kee supra, section ',U . 4. The hlly or in part for the benetlt of another person, any (Kt'ciKc or set-otr available against that person is available y>/v/ tunlo aiTiiiiist the lioltler. J.ee r. Zagnry (lhl7), S 1'aMnl. 114; Uoyee r. liuniis Cl.sl(i), ,')2 Ma^saclnis. 27(r; Agi'a l{ard< r. Leighton ((Mlltl), L. 1!.. 2 lv\. M ; \l' Anglo-Greek Navigation Co. (iHdit), L. 11., 4 Ch. 174; I'othier, No. 41 ; Hechervaise v. Lewiti (1872), L. R., 7 C. P. ;i72. (i. C, the holder of a bill, indorce.s it to D. for collection. D. can ."Mc oil it, but any defence available against C. is available against D. I)i' l.a Chauniette v. Hank (.f Kii'dand (1821)), !) H. k C. 2(is, a.s f.\|ilaiii.(l by Currie v. Misa (1H75), L. ii., 10 Ex. at p. 1(J4, Ex. Ch. 7, I), is the holder of a dishonored bill for i-'lOO indorsed by C» C. jiiiys I). .jftiO. D. sues the acceptor. As to XOO D. sues as trustee for t.'., and only as to i.'40 on his own account. As regards i.'t!0, any I'etiiir which the acceptor mav have against C. is e(inallv available ajiuiiiM 1). Thornton r. Mayi'iard (187-)), i^. U., 10 C. I*. (JVj. f'. Where a person holds a bill as agent or trustee for another, he OHiiiiot use it as a set-ofl' against a elaini made against him Individ- iiiillv. huiidon 6i Ijombav liank v. Narrawav (1872), L. li., 15 E(|. iiil ' . V . . 1 1). Subject to the rules as to transmission by act of law, when a bill i^|i:i. ih'e to a particular person or person-, or to his or their orilcr, iiiianiiiii thereon must be brought in the name of such person or )Hr~iiii<. Att\\ood r. Kattenbury (i822), ti iMoore, at ji. 583; I'easc 0. Hirst (1S210, 10 H. k C. 122. 10. A bill is specially indorsed to the tirm of " D. ii Co.'' An a-'tion oil it must be brought in the name; of the linn. The managing ]>artiier cannot .-uc on it in his own name. 11. A bill is specially indorsed to D., a partner in the firm of X. it t'li.. ill payment of a ilebt due to the firm. An action (jii it must bt'lmiiiglit in l).',s name, and not in the name of the firm. iJawdeu r.lb.uell (1841), ;JM.."t Gr. 638. !-■ C the holder of a bill, indorses it in blank to D. to collect it tiir liiin. Eitlicr C. or D. may sue the acceptor. Clerk r. Pigot (liil'lO. 12 M,m1. 1'J;{ ; Cf. Stones v. liutt (18;{4), 2 Cr. & M. iUI. hi- A bill accepted bv H. is indorsed in blank by C. I). E. and P. 'ii'iiiL' an action on ilie \iill against H Tiny can recover, although tlicrc is 111, evidence to show that tliev are partners or what the !!:i!iiiv of their joint interest is. Ord i\ Portal (1812), 3 Camp. 23!) ; U. l!,,i,lasi,z V. Leach (181G), 1 Stark. 44G ; Low r. Copestake (1828), " C. A: P. 300. 122 The Rills of Exchange Act, 18!»(). ^ 38. Action liy liuKler. 1 I. A lull is iiiii(irsi'(| in iilunk ton firm. Anv unc nl'lln' inirtncri' mil V III iiii; iiii acliiiii <>ii it in iiis own niunc. I jikIIcv, ■iiil • |:i), f) Q. H. '2112, as tu joiiit lioi.ltTs; ("oin.vrr /-. Kurl (IHIIH), 2(1 luwii Jl. ItiH, us tu hoMoi's in troiiiiiioii. 1'). A liill indorsed in liluiik is liftiiilcd to the iiijiiiii;.'('r <>!' u ciiin. jpiiny ill |iii\ iiicnt ofiidi'lit due to llic niMi|iiiiiy. Tlic niiiniijicr iniiv mumpm it in liis own iimno. liiiw i\ I'urncll (l^a'.l), 7 ('. W N. S. 2.^2. I'i. A liill indorsed in liliuiU is ^iven to \).'-> ntlnrncy, wlm ciiin. iiiences an actitui i/ii it iiLrain-t llie airreptur in D.'s name. I), knows iintliinj: of tiie matter, liut after tiie aetiun lias prnceeded sunn wav lie is tuld of it, and tlien jrives his cunseni. |). can maintain liii' uetiun. Amuna r. Marks (1S(;2). .'U L. J. Ivn. i(!;t. 17. I)., tlie holder ot' a hill iiidursed in hlank,due-' nut \vi«'li to sue on it in his own name, lie aecordin^rly asks E. to sue un it. E. eun-eiits, E L'ets a eupy uf the hill, and it is aLTieed that he shall have the ori;;inal when wanted. E. ttummenees an aelion a;:aiiist tliu aeeeplor, ami afti'r aetimi liruii;.'lit he t^ets the hill. E. <'iiiiiiul muiii- tain this aelion, fur at the time he hcL'an it he had neilher the acliiul nur the euii^truetive i»os- Q. B. 027; sec also Thomas v. Grace, U. C, 15 C. \\ 4(;2. By section 84 of the Act, a note m idi; by two or more is not jniii; and several, unless expressly declared to be so ; but where a imtc runs, *' I promise to pay," and is signed by two or uioic ptrsnns, it is deemed to be their joint and several note. Thua, the law of Quebec has been cliant;;ed, and cure should be taken here. alter tliut the note be expressed to be joint and several. Ill actions founded upon bills of exchani^e, whether tho (leliiilaiits are traders or not, recourse must be had iu matt<.'r3 of ovidcnce to the laws of Kniiland, in force on the 30th of May, 184!t. See .section 95, C. C. L. C, Art. 2341.. See Appendix. Ill Queb'-c, the dishonor of a bill not only gives the holder a " Action en riL'ht of action against all parties, but the indor.ser and all parties S^'^*"*'*'' who stiiiid as sureties or ((uasi-suretiesmay, even before paying, pro- cwj airainst the principal debtor to be indemnitied. This action is u't'iit' rally called an action en gantntif, and is expressly given by article 1953 of tho Qutibeo Civil Code. Tt is roeognized by wbat inav bo considered a well settled jurisprudence. I>esbarat.s r. Hamilton. 2 L. N. 27: ; Macdonald (;. WhitHeld, P. C, 8 App. tasi's, 733 ; MacKinnon i'. Keroack, 15 Can. Sup. Ct. 111. But the exercise of this right of ac^toH cngantntie must cause no delay til the holder in his own recourse. Durocher v. Lapalme, M. L. K., 1 S. C. 494 ; Block v. Lawrence, M. L. II., 2 S. C. 279 ; Ban(|uo Rationale v. lloss, 11 Q. L. II. 109, overruling Beau- li«u I'. Deiners, 5 R. L. 244. Such is also the law of France K.j. 24 floreal, an. 13, D. 5, 1, 371 ; 2 P.ird. 333 ; 1 Bt^darrido', ->'0 ; Dalloz, Table de dix a 3, Vo. Lcttro do Change, nn. 140 and following ; Code do Coa..uerce, arts. 118, 165 and 167. IMAGE EVALUATION TEST TARGET (MT.3) V - W. [/ ^ WJ.. 1 ( 1.0 m 1 1 ^-^ 2.2 2.0 1.8 1.6 1 I.I 1.25 1.4 ^ i .'/ J — ► Photographic Sciences Corporation 23 WEST MAIN STREET WEBSTER, N.Y. M580 (716) 872-4503 4^ iV :\ \ ^9) ■V 6^ 124 The Bills of Exchange Act, 1890. 1.39. General Duties of the Holder. When pre- sentment for acceptance is necessary. Express stipu- lation as to presentment. No present- ment in any other case. Necessary de- lay for pre- sentment. 311. Where a bill is payable at sight or after sight, presentment for acceptance is necessary in order to fix the maturity of the instruineiit ; ^'^ (2) Where a bill expressly stipulates that it shall be presented for acceptance, or where a bill is drawn payable elsewhere than at the residence or place of business of the drawee, it must be pre- sented for acceptance before it can be presented for payment ; (3) In no other case is presentment for accept- ance necessary in order to render liable any party to the bill ; (■f) Where the holder of a bill, drawn payable elsewhere than at the place of business or resi- dence of the drawee, has not time, with the exercise of reasonable diligence, to present the bill for acceptance before presenting it for pay- ment on the day that it falls due, the delay caused by presenting the bill for acceptance before pre- senting it for payment is excused, and does not discharge the drawer and indorsers. 1. It is not necessary to present for acceptance a bill drawn payuhle after dale, before it 1)0 (iuo. liiciianisori v, Daiiieldj 5 0.S.tJ7l. CoinMiorcial Hank v. Perry, Ifi ll,jl)inson, GI. 2. Where a bill drawn on a shipment and payable a certain nunilier of davs after siiiht, is sold with the bill of lailini^ appended to it, tlio lioldor of tiie bill of extdianife caniiol, in tiio absence of proof of iiiiy local nsaijo to tiio contrary, or of the imminent insolvency of the drawee, renuire the latter to accept the bill of exchange b\it on the delivery of ibe bill of lading; and where, in consequence of the "efu- eal of the holler to deliver the bill of lading, acceptance is refu-eil (I) Cousineau v. Leoours, M. L. R., 4 S. C. 249. General Duties of the Holder. 125 § 39. anil tlio bill protested, tlieproteft will be considered as nmde witbrmt ciiuM', tlie drawee not having been in default, and tlie drawer will be dihciiarged. Lanfear r, Blot^sman, 1 J^a. An. 148. ;). Defendants authorized an agent to make certain purchases for (lieir account, in these words: " We authorize you to purchase for our account to the extent, tfcc. , and to ship to our order, and to for- ward to us the shiuping documents, when your drafts for the invoice aniuunt will meet witL due honor. " The agent, having purchased ill coiifurmity to his autliority, drew on his principals for the anuiunt of the invoice, anil sold the bill of exchange with the bill of lading atiaclied to it. Held, that the drawees weie bound to accept only on diinery of the bill of lading. Little v. Blossman, 1 La. An. 1(59. 4. Where the ludder of a bill of excliange, drawn on merchandise, at teiulays' sight, and accompanied by a bill of lading, does not present it for acceptance according to its tenor, although the drawers were willing to accept upon delivery of the bill of lading, but demands iiiiiiicdiate payment, and, on their refusal, transfers the merchandise reiiiif^ented by the bi 1 to another house, the drawer will be discharged. BlInli^t r. Keyliurn, 2 La. An. 137. 5. The object of the rule under which the drawee is entitled to twenty-four hours () to consider whether he will accept is not to en- able hnn to inquire as to the holder's title, but to ascertain whether he has t'llects of tlie drawer, or the prospect of them, or other reasons fur huiioring the bill ; and the accejitance of a bill at once, without takiiij; advantage of this delay, is not of itself evidence of negligence Of iiicauiiousness, in not enquirmg as to the titleof the holder. Wil- eo.x r. Heal, 3 La. An. 404. G. Where an agent is authorized to ship to his principal and to draw (ill him " with bill of lading attached, '" it is unimportant that the l&tter be fastened to the Ldl of excliange. It is sufhcient that the bill of lading be delivered with it to the purchaser. Foreman v. Walker, 4 La. An.40y. After a bill of excliange has been handed to the payee, or his Presentment indorsee, it is always in the interest of the holder, and at tiinos even indispensable, that it be presented for acceptance. When the bill is payable at sight, or at one or several usances or days after sight, its presentment to the drawee is absolutely necessary, in the former case in order to tix the last day of grace and that of presentment for payment, and in the latter to determine the time of maturity in accdrdance with the tenor of the instrument. The expression «/ sight does not, as a matter of fact, mean that the bill is pay. able on demand, as under the old French law and the English Act, but that it is payable three days after presentation, sections 10 and 39 ; and the expression, so many dai/s after sight, means that the bill is payable so many days after accept- ince, or after the refusal of the drawee to accept. (1) Uuder the act the drawee has two days to accept. Sect. 42, 126 The Bills of Exchange Act, 1890. §39. When and where. When the drawer stipulates that the bill be presented as soon as posaible, presentment for acceptance is necessary. Pothier remarks, that in the case of a bill being drawn under election of domicile, as where, for instance, A. of Nantes draws upon B. at Orleans, payable at Paris, the holder is bi)und to present it to the drawee, in order to be able to prc-ioiit himself at maturity at the domicile indicated. Du Chanijo, u. 128. Such is the express pr'tvision of section 39, sub-sect, 2, In no other case is presentment for acceptance necessary. It is in the interest of the holder to make it as soon as practicable, even before putting the bill in circulation, in order to secure the additional guarantee of the acceptor ; but he is not bound so to do, for maturity is settled by the bill, and the drawer and endorsers cainiot expect the instrument to be presented to the drawee before maturity. What is the nature of the diligence to be observed in pre- sentment for acceptance ? Thei'e is no delay strictly prescribed by law. The holder should observe reasonable diligence, and present himself as soon as practicable, that it is to say, within a reasonable time, — distance, accidents, and all other events excusing delay on his part considered. 2 Savary, Parere 17, 15i ; Byles on Bills, un. 131 and 132, p. 158; section 10 of the Act. With regard to the formalities to be complied with in pri sentmeut for acceptance, the latter must be made to the drawee, or his agent, at the address given, or at his dom , or his ordiuary business place, and during business hours. If the drawee be dead or bankrupt, presentment is excused, and thr bill may be treated as dishonored by non-acceptance, or it may bo made to his representative, sect. 41, subs. 1 (c) and 2 (o). If the drawee be absent, acceptance should then be requesteJ at his last known domicile or place of business, and if after dil:- gent research he cannot be found, the bill may be regarded as dishonored. A usage has crept into trade, allowing the drawee twenty- four hours to look into his accounts with the drawer, and to deliberate, — a custom which also prevails in England, France, and almost all countries. The bill is left in the hands of the drawee, to remain at his risk and peril until the day of accept auce ; upon the expiration of the twenty*four hours, or uude GENERA.L Duties of the Holder. 127 drawi If thii and till! )!• it uuiy id 2 ('<)■ the Act within two days after presentment, the holder must § 40. a'j;aiu present himsvdi' lo the drawee, to receive tlie accepted bill, or establisli the refusal to accept. The Caiuidian Act, sect. 42, has irrevocably fixed the delay within which the holder is biuiiul to treat the bill as dishonored by non-acceptance. It is within two days and no more after presentment ; it may be so treated on the very day of presentment. The protest should be made not later than on the second day after presentment. Accordiii''' to the English Act, it must be done '' within the customary time." Sect. 42. If the bill indicate to the holder a drawee au besoin, he may, "Besoia." if ho thinks fit, present himself to the latter, but only after nrotost, as prescribed by sections 15 and 04. Under article 2290 of the Quebec Code, and also in the United States, Fiance and Europe generally, presentment to the drawee au leSiHit is necessary. 4\K Subiect to the provisions of this Act, when Time for pre- *• . , . . seiiting bill a bill payable after sight is nen'otiated, the hold- payable after . , • f. '^ sight. er mu.st either present it tor acceptance or nego- tiate it within a reasonable time ; (2) If he does not do so, the drawer and alP^ "^^^ p'^'^'^' indursers prior to that holder are discharged ; (3) 111 determining what is a reasonable time a? to reason- within the meaning of this section, regard shall be ^ had to the naUire of the bill, the usage of trade with similar respect to bills, and the facts of the particular case. See st'ctioii IVd. Within a rcasnmihle time : — 1. A hill MKiik' uii iio 27th August, indorsed by the payee on the 28th, inT-onted \i\ tin' JRililer on the 1st 8ei)tenilii'f and jirutested on the '^lli Si'pti'Miber. This is not a reasonable time. Harris v. Sehwub, 3 K. L. l.-);!. 2. A liill drawn at sight in Toronto, on the 6th August, 1849 (wlien railway cdiuninnicatiuns wore few), by a party ilealiiig in bills, ujkhi a jiarty in New York, n favur of a party in Illinois, was juesented on the loth Xuveniber, 184i). This was not an unreasonable delay. Boyes r. Joseph, L'. C , 7 Q. B. 505. 3. On the Stli October, 18(58, in Halifax, tiie defendants indorsed a ill drawn by S. S. on E. & Co. uf Liverpool. On the 5th Nov- 128 The Bills of Exchange Act, 1890. 5 41. Rule? as to jd'i'seiitiiu'iit tor accujit- ance. eTiihor, tlie drawer sold the bill for full value to the plaintifV, who for- wfirilcMl it tiic same day. It wa^ aeceplwl, but the acceptors failetl before it matured. Held, that the time was reasonable. Wykle o, Wetinore, 1 N. S. D. 504. The followiiKj diijcst uf cases is from Chalmers, p. \2'.\ : — 4. A. iu Windsor draws a bill on B. in London, payaiile one inoiith after sij^ht. The holder keeps it for four days before presenting it for aecH'ptance. It is then dishonored. Tliis may not be an unrea-inti- able delay. Fry r. Hill (1S17), 7 Taunt. 397;' Cf. Shute v. Kuliins ( 182M), 2 C. tt P. 80. 5. A. in London draws a bill on B. in Rio, payable sixty days after piizht. The payee holds it back for four months, during which time Rio hills are at a discoiuit. lie then neirotiates it. This may not lie an unreasonable delay. Mellish v. Rawiion (18;52), 9 Binir. 411). fi. A. in Newfoundland draws a bill (//t a .seO on B. in London, payable ninety days after sigiit. The payee holds it back for two months, and then forwards it for presentment. N(j reason for hold- im: back is shown. This may be an unreasonable delay. Straken;. Graham (18;}'J), 4 M. & W. 721. 7. A. in Caloitta draws a bill on B. in Hong Kong, payable sixty days after sight. The holder retains it for five months, duriiii.' wliieh time China hills are at a discount. He then negotiates it. This may bean unreasonable delav. Ramohurn Mullick r Radakissen (1854), 9 Moore P. C. 4() ; Cf. Godfray v. Couhnan (185!)), 13 Moore P. C. 11. H. A. draws a bill on B., payable to C. three months after sight. C. holds it back for an unreasonable time. He then presents it, ami it is acce[)ted. Before it is due the acceptor fails. A. is ([jrohaiilv) discharged. Straker v. Graham (1839), 4 xM. k W. 721. 9. Reasonable time is a mixed question of law and fact, ami in determining it regard must be had to the interests of the holder as well as to the interests of the drawers and iinlorsers. ]{amclnirn Mullick V. Radakissen (1854), 9 Moore P. 0. 47 ; Wallace v. Agrv (1827), 4 Mason 330, Sup. Ct. U. S., per Story, J. 41. A bill is duly presented for acceptance which is presented in accordance with the follow- ing rules : — (a) The presentment must be made by or on behalf of the holder to the drawee or to some per- son authorized to accept or refuse acceptance on his behalf, at a reasonable hour on a business day and before the bill is overdue ; (h) Where a bill is addressed to two or more drawees, who are not partners, presentment mtist be made to them all, unless one has authority to accept for all, when presentment may be made to him only; Genkral Duties of the Holder. 129 ('■) Where tlic drawee i.s dead, presentment ^ 42. niav be made to his personal representative ; {) Where, after the exercise of reasonable dil- igence, such presentment cannot be effected ; (^) [(■) Where, although the [)resentment has been irreu'ular, acceptance has been refused on some other <2;round ; (3) The fact that the holder has reason to believe Whon tiu>re is tluit tiie bill, on presentment, will be dishonored does not excuse presentment. no excut-c. ance. 4ti, When a bill is duly presented for accept- Non-accept- ance and is not accepted on the day of present- ment or within two days ^thereafter, the person presenting it nnist treat it as dishonored by non- acceptance. If he does not, the holder shall lose his right of recourse against the drawer and in- dorsers. Within the two (lay>< after pieseiitmeiit, tlio ilraweo must rr turn the lull iiLTOptdl or iioiiac('ei>tPU. I5aiik of ^'all Dit'incii I.aiul r. Vi(jt) When presentment for acceptance is excused and the bill is not accepted •, (2) Subject to the provisions of this Act, when a bill is dishonored by non-acceptance, an inniie- diate right of recourse against the drawer and indorsers accrues to the holder, and no present- ment for payment is necessary. Ihe inilorscr, lil tlic (Iniwor of a liill of excliaiiji^e, is lialik' to tlie lioldor the inomfiit tlio ilrawce lias refustd accoptain'c, ami tin- luildcr is not forcitl to wait until tlie liill lias been jjicseiitcd t'orjiiiy- nioiit. Ross 0. Dixie, U. C, 7 Q. H. 114 ; iMorgaii r. 'i'owles, 8 ilur- tin, 735; Williams v- Koliiiisun, 1;> Liniis. 421 ; Pewiuet v, Mager, 14 id. 74. Astoquniified 44. Tlic lioldcr of a bill may refuse to take a qualihed acceptance, and it lie does not obtain an unqualiiied acceptance nuiy treat the bill as dis- honored by non-acceptance ; (2) Where a qualilied acceptance is taken, and the drawer or an indorser has not expressly or iiii. pliedly authorized the holder to take a qualilied acceptance, or does not subsequently assent there- to, such drawer or indorser is discharged from his liability on the bill ; Partial accept- The provlsious of this sub-section do not apply to a partial acceptance, whereof due notice litis been given. Where a foreign bill has been accept- ed as to part, it must be protested as to the bal- ance ; What shall be (3) Whcu tlic drawcr or Indorscr of a bill re- sent. ceives notice ot a qualihed acceptance, and does not within a reasonable time express his dissent If taken with- otil authority. I General Duties of tiik Holder. 131 and im- ilied icre- liis to tlie bolder, he shall bo deeinod to have assent- ^ 45. cd thereto. (0 4'>. Siil)ject to the provisions of this Act, a bill ,Jr''juiymelu. Tinist be duly presented tor payment. Kit is not so presented, the drawer and indorsers shall be discharged ; (2) 2. A. bill is duly presented for pay ment which f^"i«^ f*" '' ^ . . pruseiitmont. is presented in accordance with the following rules : — («) Where the bill is not payable on demand, presentment must be made on the day it falls due ; [h) Where the bill is payable on demand, then, subject to the provisions of this Act, presentment must be made within a reasonable time after its issue, in order to render the drawer liable, and within a reasonable time after its indorsement, in order to render the indorser liable ('^ In determining what is a reasonal)le time, regard shall be had to the nature of the bill, the usage of trade with regard to similar bills, and the tacts of the particular case ; ('^) (c) Presentment must be made by the holder or by some person authorized ; (5) To receive payment on his behalf at the proper place, as hereinafter defined, either to the person designated by the bill as payer or to his represen- (1) Irwin i\ CrooshanU, 2 Kerr, iiOl) ; Rune v. Young, 2 Biiigh, ;^91. See notes under section 19. ('-) Onl. of IfiTM, tit. 5, art. K? ; 2 Suvary, 34!?, :^4G ; The Bank , Montiviil i: Huston, 1 L. C. li. 252 ; C. C. art. 2522. (3) See section 86. (4) See section .'i6. (5) See section 29, sub-sect. 1. 132 The Bills of Exchange Act, 1890. § 45. tative or some person authorized to pay or refuse pavuuMit on his belialf, if, with the exercise of reasonable diligence, such person can there be found ; {rive them a hunt fur it. The plaintilV was J.'sson, livinj: in the house with him, and there was no proof of any actual tran-fer of the note hy . I. Held, tliiU it iniirht he inferred that the planititl'was only theaL'ent of J., and therefore that the jury were justilied in linding a verdict for the defen- dants. .Ionian v. Coates, N. B., 2 A. 107. («) hrscntmi'itf on the (hii/ if fulls (hie. : — The following have lieen held insulHi'ient : — \h. After the usual otlice hours of a haid<, if pavahle at thai haidc. Walters r. Rallenstein, IC. L. C. R. 2!17 ; Hlford' r. Teed, 1 M. di S. 2s ; Parker i\ Gordon, 7 East, 385 ; Whitaker c Jiank of Kn-iland, I C. & U. 750. 2. If made at an unreasonable hour. Patterson r. To|)lev, X. B. A. 292; Kinnearc Goddard, N. Ji., -1A.55!); Dana c. Saw'yer, 22 Me. 211; Wallace v. Gwinn, 15 Louis. 22.3 ; Thomas v. Marsh, 2 Jja. An. 3.W. 2a- Tn France, reasonable hour means anv liour when civil pro- cess can lie served. Cass. 23rd November, 1829, D. 30, 1, 118 ; 2 Par- dessus, 2'J6. 134 The Bills of Exchange Act, 1890. ^45. ^- frosentment and protest, Tiinde on the 2 Ith Filiiimi-y, iifJi note -^^ '- — maluriujj; on the lltli, tlio holder Imvinj^ received the following ijieinoriitiihim from the iiidor-er : " Mv note imitiiriny the lUth insiatil, p)od for ten thiys after diite. ' No other note existed. Tlie presentment vviissutlicient. JJiirnett v. Monivghiiti, 1 II, C. ITIJ. (6) Where the hill in payahlr on detnanil : — 4 Presentment not necessary as ajjaiiist the maker ; hut if defctidant tender tiie deht and interest in court, ijlaintill' will he condemned to Arclier v. Lortie, ;5 Q. li. 11. 15'J; Shuter o. Pa.xton, 5 L. pay costs. C. J. 55. 6. Indorsor of a note ]iayaiile on demand responsihle althoiii;li not presented within u reasonuhle time. The court of review held the Btatute of limitations to he the onlv limit. Dandurand c. lloulier. 33 L. C. J. 1(17 i Merchants Mank v. Whitlield, '.' Q. U. R. 157 ; .I.m.s.mp, Urd. de 1(173, tit. 5, art. 4. n. .'{ ; Piitliier, n. •! ;Savar\, i'ar. 17 ; 4 Alauzet, .'521. Otherwise hy s 'ction 45, suh- t.(/>). 6. Wiien a note is iiidiirscd after maturity, the holder siiould first call on the maker to pay and give notice of dishonor to the indorser before he can jjruceed a,i:ainst the latter. Davis o. Dunn, U. C.,G Q. B. 327. See section 10, sul. .section (2) and n. 7 7. A letter written hy the attorney of the indorsee to the maker, Btatini; that a note payalile on demand, together with other notes, liad been placed in his hands for collection, and re(iuiring him to pay the interest and give new security fur the principal, is not such a pre-cnt- nientofthe note as would authorize the holder to treat the hill us disiionored, and at once resort to the indorser. Tiiorne w. Scovell, 2 Kerr, 557. See section 45 of the Act. (c) Presented at the proper place. See peetion 46. 8. Presentment of a note at the maker's place of businesH is suffi- cient, altliiiugh there is no person in charge at the time. Kinnearp, Goddard, N. !{., 4 A. 55!). 9. Presentment is regular if made at the particular place specified in the acceptance, and also at the husiness place of the acceptor. Irwin V. Crooshank, 2 Kerr, ;W!) ; sec also Sussex Bank v. Baldwin, 2 llau. 487. 10. The maker of a note was proved to have occupied an ollice up to the 1st May, after which there was no direct evidence of occupa- tion, hut his desk remained there as hefnre. Held, in the absence of any proof (if his having changed his dfHce, that |)resentmeiit uf a note there after the 1st Mav was sutKcient. Ivinnear v. Goddard, N. B., 4A. 55'J. 11. A note made payable at the residence of D., at Strathroy, does not require any special form of presentment, it being proved to have been on the dav it matured with 1). at that place. Harris v. Perry, U. C, 8 C. P. 407 ; Etheridge v. Ladd, 44 Barb. G'J ; Bigelow, 241. 12. Helil, that as it was proved that the n(jtes were in plaintifT's oflice, where they were made payable at the time they became due, no other proof of presentation was rtvpiired. Souther i'. Wallace, 20 N. S. li. (8 11. & G.),50'J; Wallace v. Souther, 9 C. L. T. 210; 2 Ca. S. C. U, 5iH; Chicopee liank v. Philadelphia Bank, .S Wa" 241. " - . - - . 5ee also I'ullen r. Sanford, 4 R. Sc G. 242; Biggs d. Wood, 2 Ma. R. ; Brander u. Cobb, 2 La. Am. 31)0. See section 4G, a. 19. iJee n. 11 and also sect. 46, n. 19. General Duties of the Holder. 135 13. In lui rtcliiiri li)' tlic itnlorsi'c-j ii;:niii-'t tlic iiiilnrscr of a pnjtnis- ^ 46. Bory uott' tlie ilrft'iulaiit pU'iidcil, truvtTsinjx tlic iilU'^'iitinii of pri'sent- — — ■ iiiciit. The iiicvscn^rcr nf tlio liiuik tliiillifld tlic note .• wore tluil lie prei^ciited it iitdct'ciidiiMt'H ullicc, wlicrcit wii-' piiyivMc, liclwci ii A and 4 |). ni., when ,aid to have e-tahh-heil tiie fact of pre-enlnient as there was a contradiction. Evans r. Foster, 1 li. Ac G. 6(5. 14. A promissory note drawn on Boston, where hoth the maker ami [layee resided, was made payahle at any hank. Held, tiiat this ineaiil any hank in Boston. Baldwin r. Hitchcock, 1 Han. HIO. If). When a note is payahle at a piirticular place, hut the words "and not otherwise or elsew here " are omitted, it is payahle irenerally under the (Jntario statute and also the Kiiirlish Act. Cons. St- U C, ('. 4'J, and the note mii^ht he presented at the place named or lo the maker himself. Bradburv v. I'oole, U. C, 1 Q. B. 442; Commercial iJiink V. Culvert, li. C, '.i Q. B. ;WH ; Bank of U. C. v. Parsons, U.C, •i y. B. ;w;i ; VVilson o. Aitkin, C. C , 5 C. P. H7(i ; Bank of U- C r. Sherwood, U. C, 8 Q. B. llll ; Meyer v. Hutchinson, U. C, IG Q. B. 47(;; Hooker r. Leslie, U. C," 27 Q. B. 2;)'); North-Westeru National Bank r. .lai vis, 2 Ma. 11. o.'i ; Grant v. Heather, 2 Ihid. 201. Otherwise settled by section 45, nubsect. 1. See also sec ion lil. 10. The place of j)avment mav be specilied bv the dr.iwer. Qibb w. Miulier, 2 Cr. & J. 254; Walker v. Stetson, 2 'Amer. Ii. 405. 17. Or by the acceptor. Saul v. Jones, 28 L. J. Q. B. .'57. 18. If alternative places of payment are specified, presentment at either of such places is sullicient. Beechinii; v. Gower, Holt N. P. C.813; Cf, Pollard v. Herries, ;{ B. & P. AAd. 19. If a hill is imide payable at a bank in a town wliere tliere is a cleiirinir-house, presentment throuirh the eleariniidiouse is deemed to he a presentment at the bank. Reynolds «. Chettle, 2 Cam[). 5i)5 ; Hums V. Parker, 3 Tyr. 370; Bodtfiiii'ton v. Schleiicker, 4 B. & Ad, 752. (3) Reasonable diligence: — 20. Whether due Jilijrence has been used in the pre.sentnient of a bill of exchange to the drawee is a mixed (juestiou of law and fact ; and where the question has heen properly left to the jury, the court will not interfere with their venlict unless it clearly appears that they have come to a wrong conclusion. Perley r. Howard, 2 Kerr, 518. See also as to due diligence, Patterson i\ Topley, N B., 4 A. 529 ; Mechanics Bank v. Walton, 7 RobinJ^on, 451. The foUowiiKj illutitrations are fr) Where the drawee is a fictitious person ; (c) As regards the drawer, where the drawee or acceptor ^s not bound, as between himself and the drawer, to accept or pay the bill, and the di'iiwer has no reason to believe that the bill would be paid if presented ; ('0 As regards an indorser, where the bill Wlion suph jiriv-cntiuent is (lisjiciised with. General Duties of the Holder. 137 was accepted or made for the n-cconimodation of § 46. that indort^er, and he has no reason to expect that the bill would be paid if presented; (r) By waiver of presentment, express or implied. Excuses for not presenting bill, etc. : — 1. Tiu' Imliler of a hill dies suddenly just before it irmtures. The circuiiistiuices may he such as to excuse dehvy. Rotchschild i\ Currie, 1 Q. 15. 17. See also Jex r. Tureaud, 111 1-a. An. 04. 2. Hill (h'awn in Eii,;j:laiid, payable at Leirhnrn. At the time tlie bill iiiiituves Leghorn is besie<;;e(b Tiie holder is not in Le^rhnrn. This cxcu: ?s delay. Patience i'. Townley, 2 Smith, 2'J.'{. Irresistible (nuer iir fom- m<(jcitre is a irood ext:use. Hank of Teriue-see v. IMiertson,' lH La. An. 72 ; Labadisle v. Laiidrv, 20 i(b Ltl) ; itej. 2;5rd Fthniarv. Ls;51, D. \\\, 1, ;522 ; Cass. Ltth Dec.', 182 1, D. 24, 1," 77 ; 4 Aliui/.et", 8:W. o. Laws suspending the payment of bills in time of war apply to all jiarties and bills, whether forciirn or national. Knuen, \'h\\ )\:\vv\\, l>;7:;. 1). 74, 2, 60 ; Cass, (ith March, L'^72. D. 72, 2, 1 and 5 ; (^ass., 'hA .KyvW, \^'?,, D. 7:5, 1, W?,:^ ; Aix, Dth April, LS72, D. 72, 2, 202. 4. 15:11 presented for payment throuiih the post (see sect. 45 [S] ). It is sent (iff in time to reach the drawee on the day of maturity, but liy mistake of the post office is delayed some days. The delay is juo- liiiMv excused. Windham liaidc r. Norton, 22 Connecticut 11. 214; Piir •. Heinrichschoffer, 29 Amer. R. 501. ."). Hill drawn in England, jiayable in Paris, By a French niora- t('iy liiw, passed in consequence of war, the maturity of bills |)ayable ill Paris is postponed three montlis. Tlie delay in making ))resent- nunt is excused. Rou(piette v- Overmann, L. R., 10 Q. B. 525. See al>o i'iitieiice r. Townley, 2 Smith 220. fi. If |iresentmeiit is delayed at the request of the drawer or indor- por >(.iiLdil to be chariied, the delav is presumably excused. Lord Ward r. Oxford Railway Co., 2 De G. M. k Ct. 750. 7. Bill drawn on R. is accepted by an agent. At the tinie the bill n'atiuTs, I), isaiiroad. This is no excuse, presentment should be made to the agent. Philips v. Astling, 2 Taunt. 20(5. >!. 15. inidces a note " Payable at Gnilford." R. has no re-idenco tliirc. The bill is jiresented at two banks, and then ti'catcfl iis dis- li irod. Tbi; !• sutbcient. Hardy r. Woodroofe, 2 Stark. 811). 1 Tile drawer of a bill orders the acceptor not to pay it. The li'ililcr hears of this. Presentment i.s not dispensi',! with. Hill r. Heap, 1). k R. N. P. C. 57 ; Nicholson r. Gouthit, 2 H. HI. tlOlb 10. The acce]itor of a bill inform.s the holder that he cannot, or will lilt, pav it when due. Presentment is not dispensed witli. Raker i\ liinli.:; Camp. 107. 11. The acceptor of a bill becomes bankrupt before it matures. Pi'c-i'iitnient is not excused. Esdaile r. Severby, 11 East. 117; Rej. :i/'l Oir.. ISOIL 0. 7, 1, 15 ; Cass. 15th January, 1820, D. 20, 1, 52 See infra, ii. 24. 138 m 46. The Bills of Exchange Act, 1890. lla- Likewise the insolvency of the indorscr does not dispense with • notice of dislionor. Rouen, 14ih Novcniher, IHTi'i, S. 77, 2, 2j.'5. 12. U. mukes a note payable at " 1 X. Street, London." Before it becomes due he becomes insolvent and al)sconds. Presontniciit at 1 X. Street is not dispensed with. Sands v. Clarke, 1!) L. .J. C. P. f<4, IS. If the maker of a note payable "generally has absconded frum Canada, presentment is dispensed vvitli ; but if the maker has onlv removed from one place in Canada to another, it mu-^t be shown that application has been made at the place to which he is ent accurdingly, it proves tlio iivernient uf due notice in the declaration; but that it', in conse- quence lit' the holder beii'g unable to discover the indorser's residence, nu iiuticf uf dishonor is given, the excuse should be averred. Patter- son c. Tai)ley, X. B., 4 A. 529. 21. The holder of a note 8\vore that he went to the niakcr'.s .''tore for the i)iir])ose of presenting it for payment, but tinding the door loeketl inaile a formal presentment at the door. The maker of the note .-wuiv that he was at his store at the time stated, and that no presentment was made. The judge left to the jury the question whether the holder liad presented the note or not, and in answer to a question by the jury, told them that for the purposes of the suit such a presentment would be sutHcient, no objection on that ground having been made by the defendant. Held, that there was no misdirection, aii'i that the jury coidd not have been misled by the answer to their question. Keetl v. Kavanagh, N. J3., 4 A. 457. 22. Bill payable to drawer's order i.s accejited and indorsed to acconniiodate the drawer. The tlra\verdisci)unts it, but does not pro- vide the acceptor with funds to meet it at maturity. Presentment is not necessarv to charge the drawer. Grillin r>. Phillips, 2 R de L. .'^0 ; Stavner c ifowatt, ;{ \l. & (i. 267 ; Cred'ton r. Ci'ofton, ;};} Ch. I). Cl'l ; 5G L. J. Ch. l;io ; Dickins v. Beal, lt» Peters, 572 ; Blum v- Bidwell, 20 Lii. An. 48 ; llhett v. Roe, 2 How, 457 ; Cass. 25th August, LSI.'!, D. \i, l,(i2:!; l{(j. 2<)th August, 1H;5(], 1). H7, 1, 181 ; Potiuer, im. 147, 157; 1 Kogiie, 327 ; 2 Savary, Parore 20, p. lO'J ; Bank of Montreal !'. Huston, 1 L. C. li. 252 ; Mount v. Dunn, 4 L. C. R 354 CO , art. 2323. The law 's the same under section 46 (c). Presentment is necessary toch., the accommodation indorser. Esdaile p. Sowerby, U Eii.-t."at p. Hi , Bowes v. Howe, 5 Taunt. 30, Ex. Ch. 23. A cheipio is drawn on the Union Bank, the drawer not having furticient fluids there to meet it, and having no reason to expect that it will be honored. Presentment iis not necessary to charge the drawer. Sands r. Clarke, 19 L. J. C. P. 84; Pierce v. Cate, Gti. Thofiilhnri iKj facts have been held to be no excuse for icant of pre- mimvnt, protest, notice of dishonor : — 24. The ill-solvency of the drawee. Quebec Bank p. Ogiivy, 3 Q. B. K. 2nii ; Walton r. Watson, 1 Martin N. S. 347- See supra, n. 11. 25. The daiiiierous illness of the maker. Nowlin r. lioach, 2 Kerr. 337, 26. Irregularities or delay of the mail service which prevent a bill from arriving in time. Grant l\ Long, 12 Louis. 402. 2", The death of the drawee or acceptor. Dana r. Bradlev, N. B., Siev. Dig. 28. Held, that holders for collection were not dispensed witii pre- fentnient and notice of di>honor, and were liable to their principal fur the ilamages resulting from their neglect, notwithstanding a notice issiud liy them, and which the plaintitl's hail received, that all notes ddivered to them for cidlection should be wholly at the risk of the persons leaving them, and that tliev (the defendants) would be res- Wnsihle (inly for moneys actually reiteived in payment of siudi notes, hut nut fur aiivomissions, informalities or mistakes in respect of such notes, Browne et al. v. Commercial Bank, U. C, 10 Q. B. 129; 139 §46 140 The liiLLs OF Exchange Act, 1890. ^;: « 46 ^Vilson v: Prinjile, U. C, 14 Q. B. 'iSO. See also to tl:c .sun,. ,.|Foct Cii^s., Till Xnvi'iiilu'r, lS(;i», 1). 72, 1, lit; Cuss., Nf Mav, isTj, D, 72. 1. 112; Allen r. Siivdaiu, 20 Wfiiil. ;;2l : Cniwfonl r. I. Bank, 1 Martin N. S. 211, I5G5 : Miraiula i\ Citv Bank, G Lou 11. State CI laliner.. l;i:{. Mi: 29. Wheix' a note is payable to and imlorscil liy several povson.' tlmuirli nut in ]iartnersiiip, iidtire to one is ne by par. J. of sectiou 4d. By wdirer expra^s or ii»j)licil. See section oO (h). Cass. Utli Nov., 1870, D. 70, 1, .^50; lio(i. lOtli April, 187(i, D. "G 1, 341. .SO. Waiver of notice of dishonor does not of itself include a waiver of presentment. Hill r. Heap, D. A: 11. N. I'. 57; Wilkins (y. 1) i\ve«, 20 La. An.5;{8 ; Lvon, 22nd August, 18(17, 1). ()7, 2, 22,") ; Porter v. Keiii- ball, 5;! Barb. 407 ; (Jnion liank e. Hyde, G Wend. 572. ;^1. Held, under the Enirlish Act, tliat failure bv the holder of a Kill of e\(dian'j:e, after the e.xerci-^e of reasonal 1 licence at the tii IK' ilie )lll is ( lishuiiured, to tind the drawer of the bill at tiie address in- In given, doe.s not dispense with notice of dishonor, if an aiMres? at which the drawer is lo be found comes to the knowlodjze of the hold- er before action brouirht. Stnddv i\ Beestv, (50 L. 'J'. G47. H2. The foUowini; undertakini' of the indorser o f a pronu.^sory note, " I ill) request thai hereafter any notes that may fall due in the Union Bank, on which lam or may l)e indorser, shall not be protest- ed, as I wdl ci)nsiiler myself bound in the same niiinner as if the paid notes liad been or shoulrj be le^rally jirote-ted," held to be a waiver of demand and notice ; both parties havimi had a cimum^ of dealiiiiT founded on that construction. Union Bank o. Hyde, G Whea- ton, 572. 3.'5. A subse(]uent promise to pay by the indorser in ignorance of the defect v{ due ])resentment, though he wa< aware at the time that he was discharged for want of due notice, is a waiver oidy of the want of notice, not that of presentn)eiit. NowHn c, lloach, 2 Kerr, 337. 34. This promise mav be i)roved bv verbal eviilence. Johnson ». Geotlrion, 13 L. C. R. IGl. T/ie fnlldwiiuj have been held valid wairers of presentmeni, proM and mtt'ux of dishonor : — 35. A partial ]iaynient. Rice r. Bowker, 3 L. C. R. 305. 36. An unconditional promise (verlial or written) to pav if n. ale with the knowledge of the defect. Ro.«s v. Wil.-son, 2 R.'de L 'i-* Johnson r. (JeotlV ion, 13 L. C. R. IGl: Citv Bank r. Hi inter II. .le L. 171 ; Bank of B. N. A. r. Ros.s U. C, 1 Q. B. ll»!l ; McCartliv r. Phelps, IT. C, 30 Q. B. 57 ; Kilbv v. Uochussen, 13 V. B. N. S. .'Jji; Waterous Engine (Company r. Christie, G R. tt G. 10'.); G C. L. T. 441; 'tVatter.s v. liordlv, 2 Kerr 13; Saint Stephen Branch K. R Co. r. Black, 2 Han. 12!); Allen v. McNaughton, X. B., 4 A. 234; McDonald r. Everitt, 3 Kerr 5G!) ; Whitehon.se r. Bedell, IG N. H.R. 4G; Deeringi). Havden, 3 Ma. R. 21'.); Union Bank i\ Grinishaw, 15 Loui«. 321; Thornton v. Wvnn, 12 Wheat. 1S3; Goodlial lev, I T. R. 712; Pickc n (■ Gral lam. 1 Cr. & M, 721); llej. U November, 1H12, D. 13, 1, IIG ; Rej, 20th June, 1827, D. 27, 1,280 See Louisiana Hennen's Digest, vol- 1, p. 234. General Duties of the Holder. 141 luo effect, 1S72, D, liii. State OIUH. 7U; nerson?, Hunk of of secliuii 76, D. '(,, Ic a waiver D.iwcs 20 er 0. Kcm- ler of a bill le time the ix'-js 1k' has iiil'li'e>> at A' the holJ- ]M'Oiiii>?ory [ iliu' in the lie i)rotest- • as if the M tu be a a ('.I HUM' uf le, G Whea- orance of the lime nly of the , 2 Kerr, ell Juhiisoni'. en t, pnkd av I ma'le e L.2^1 ,.r/2R.ae I'Cartbv r. N. S. 3Jli (i C. L. T, meh K.R. 1 A. 234; KiN.H.R. Grinishaw, hall f. P^'l- Kej. llHli 27,1,280, 37. Rut a partial payment or promise to pay, made witliout the § aq ii,ivUMl"e (if the want uf i)reseiitineiit, is uu waiver of the present- 15 _ knuwledt'c (I ineni. Dana i\ Bradley, N. B., Stev. Dij,' 1^ 'A^. Tlie i)ayee uf a note indurscd it to the plaintiH'as security fo^' acli'ht ; (111 ilie day the nuto eamediie (tiie maker iiaviiig in liie mean- time left the cuiintrv) the plaiiititf went tu tiie indursc-r andgavi' iiun theimte, snviii;.' hesnp[i(ised it was uf nn use tu any . Ka vuiia: Lh, N, ]'.., 4 A. 457. 41. An oiler to give promi-ofory notes at three and" six months for tiie aiiionnt tine on the bill, nut dnly protested, which wa^ not accept ei llel. ti) lie no waiver u f tl le laciie Bank of N. B. v. Knuwies, 2 Kerr21'J; Laporte c. Landry, 4 Martin N. S. 125. 42. Wlienever the indorser writes to the hulder to make him believe it unnecessary tu give him notice of non-payment, especially wlien lie mainntv wi Cor -tales the maker to be insolvent, such letter written before 11 be cun-itrued as a waiver of notice. Beckett llisli U. C, 4 Q. B. KiS ; See supra, n. :50. 43. Where after the time for giving notice of dishonor, even pending euit.tli ere is an aiisolute promise to iiav -- ■: -■—- P(^' o deliberately made with full kiiuwleilge of the facts, this will prevent the defendant from setting up that a notice was not given. Shaw r. Salmon, U. C, 1".) Q. B. 512: Burke r. Elliott, U.C, 15 Q. li. (ill); McCunilfe r. Allen, l'. C, ; iMc.Murrich r. Powers, U.C, 10 Q. B. 4sl;-Blumu. Lii All. 4.'!: Butler r. Morrisun, 18 id. 803 ; Mitchell u. ti Q. B. liiaurii Y ouii;:, 44. :i id. 27'J: .lames r. Wade. 21 id. 54S. hit the promise to pay, in such a case, niust have direct refereiici' to tlie bi 1 in ipiestion. Therefore if there be more than une bill, llie proiiii>e must refer specifically tu the one in iiue-tiuii. Bank of Montreal r. Scott, i:. C, 24 Q. B. 115. 4.5. The drawer of a bill indorses it to C, who indorses it to D. Ot he iliiv of dishonor, but before the fact of dishonor could be k nown. le drawer. Kiiowiii'i tl le acceptor to 1 le insolvent, savs to C I PUD few [Hi^e 1 sjiall have to take uj) the bill. If you will call with it in a ilay~ 1 will jiay you." D. gives no notice of dishonor either to C. or the drawer. 1). cannot avail himself of the promi.-e to C, and Bue the drawer. Piidy cliUiscs-l.S and 48 of the Act. 2. Iiiijorser after niatnritv is entitled to notice of dishonor. Mc- Ciill r. Witkousld, I(i La. An. ITii. '.i Holder is hound only to notify tlie indorser he intends to hold liable. Crane v- Trndeau, 11) La. An. ."507. 4. Notice to the solicitor of the indorser is not sutlicient, unless ex- pic^.'ily authorized to receive notice. Bird o. Doyal, 20 La. An. 541. '*?>• Notice of dishonor, in order to be valid and ^"l^*^ "^^ *?. notice 01 dis- eifectual, must be given in accordance with the ho"or- following rules: — [a) The notice must be given by or on behalf of the holder, or by or on behalf of an indorser ^vbo, lit the time of giving it, is himself liable on the bill ; (1) Darling v. Gillies, 20 N. S. R. 423 ; liej. 21st June, 1810, D. 10, 1, :J2'j. 144 The Bills of Exchange Act, 1890. §49. I (A) Notice of dislionor may be given l)y jui aneiit either in his own name, or in the name of any party entitled to give notice, whether that party i« his principal or not; (c) Where notice is given by or on Ijelmlf of the holder, it enures lor the benefit of ail sub- sequent holders and all prior indorsers who liiive a right of recourse against the party to whom it IS given ; {. - (Jiovcr, U. C, :i Q. U. 27; Bunk of U. G. w. Street,! Unt. Dig. 497. See sectiuii 49 (e). 4. A verbiil notice is sufficient. Hou^^ego «. Cowne, 2 M. & W. .S48; Wimrton *'. Wri^'lit, 1 C k K. 58.') ; Alh-ii f. I'Miniiiiilsoii, 2 Ex<;li. 724; Visile r. Mic.luiel, IW L. T. N. S. l')!} ; GilluTt, /;. Dnitiis, ;$ Met. 4',)j, Cuiitrn Ci)\viin y. Tiirf^eoii, 2 li. ile L. 2i{0 See infra, nn. G, 7, 8. See Hoctiuns 49 ((■)» 51 (1) ami notes at paj^es 15:5. 5. C. i^i the indorser of a bill which is (liMli()nored. Verbal notice to his folioitor is not sutlicient. Cro.>J.s v. Smith, 1 M. k S. 654. 6. The drawer of a bill i.s a non trader. Verbal notice of dinlionor trivi'ii to his wife at hia house, in iiis absence, may be siillicient. !lousei,'o V. Cowne, 2 M. & W. 348 ; Wharton v. Wright, 10. & K. 585. 7. The indorser of a bill is a merchant. Notice of di.slionor, ver- liiil or written, j^iven to or left with a clerk at bis countinjrhouse, is siillicient. Allen v. Edmundson, 2 E.\ch.724; Viale v. Michael, 150 L.T. N. S. 453. 8. C. indorses a bill " In need at Messrs. X. & Co." Notice of dis- honor given to X. k Co. is not sulHcient to charge C. Ex parte Praii>;e, L. R., 1 Eq. 5. 9. Ii i. the duty of the drawer or tlie indorser of a bill, if lie be Hbseiit tV ,n his place of business or residence, to see that there is KOine person there to receive notice on liis behalf. Allen c, Edmund- sun, 2 Exch. 723. 10. A notice given by telegraph is sutHcient, but there must be proof of the receipt of the telegram. McLean v. Gamier, 3 U. »fe G 27G. Qiiivre as to notice by telephone. Bill must be suficienfly identified — 11. Notice is not voided by a mistake in its (Jnte or the description of the note, if its identity is well establislied. Robinson o. Taylor, i Kerr, I'J^; Bank of Alexandria «. Swanii, 9 Peters, 33 ; Journey v. Pierce, 2 Houst. 176. Handyside v. Courtney, 1 L. C. R. 250. 12. Where a notice of dishonor describes a bill for £28 instead of £25, it was held to be a question for the jury whetiier the defendant was misled by the notice. Thompson v. Cotterell, U. C, 11 Q. B. 1S5; Bank of Alexandria y. Swann, 9 Peters, 33. See aUi '.ow f. Uvven, U. C, 12 C. P. 101 ; Thorn .■■ Sanford, U. C, (5 C. P. 402. 13. " I give notice that a bill, etc- (description), indorsed by you, lies at 1 X. Street, dishonored." Sulticient. King i'. Bicklev, 2 Q. B. 419. 14. The holder's clerk wrote to an indorser that -'B.'s acceptance 'iue that ihiv was unpaid, and requested his immediate attention to it." Sutlicient. Bailey v. Porter, 14 M. k W. 44. 15 " Your draft which became due yesterday is unpaid. Unless •lie same is paid immediately I shall take proceedings. Noting 5s." Siitticieiit. Armstrong o. Christiani, 5 C. B. (J87 ; Everard v. Watson, 1 E. & B. 801. 16. The following notice left at the drawer's counting-house by the holder's clerk : " B.'s acceptance to A., £50, due January Is't, is unpaid. Pavment to D. is requested before 4 p. m." Suthcient. Paul I'. Joel, 27 L'. J. Ex. 380, affirmed 28 L. J. Ex. 143. §49. 148 The Bills of Exciianoe Act, 1890. §49. 17. " I). Hunk. I he>^ to intimate tliat B.'h ncccpliitice to vow ilue ■ IhI Jfui'^ivi'v i.s f-till uiipaitl, luid I have to ri'(j nest vmir iiiiin«liiite Bfrpiirum to tiic HHiiu'. " No HJifmi'iirL', Sulficieiit. Aliixwt'U *;. IJrum, lOL. T. N. S. ;{01. IH. Notice toilriuver of bill iicccptcil liy B. " Yoiirn and R.'h note of liaiid is now due, and your uttfiitioii to tlie huiiio will ohligi'," Sutlicitiit. iJaiii V. Gregory, It L. T. N. S. 601. 111. Tiic fiiiidwitij^ notice wan held to l)i' Huilieient, tlio note licing payaiilcat tlie Imnli : — " Sir: Tlienott'of A.H. tor XTjO, at ninety iiay<, fnnM liie 2()tii January, IHU, endorsi-d by yuii and due tliis duy, remains unpaid. Tlieret'ore tbe holders look to yon lor jmyninit thereof as such enilorwern." Wauk of Montri'nl o. Orover, U. C, 3 Q, B. 27 ; see also HIinii r. Dixon, U. C, 5 Q. B. 580- 20. A note sij^ned by Courtney, payable to his own order, was indor- fled by the latter and one Moore. No other note existed. The lollow- \Uj* notice, addressed to ihe maker and indorser conjointly, was iielil putlieient : — " Your (VV.V. Courtney's) promissory note for t'.'il) "c\irreney, dated at >'ontreal the 'ind September, IHati, imyablc three " month.; after date to you, or order, and endorsed hy you, was tliif "day, at the re(]uest of Messrs. Ilaiidyside, Sinclair iV Company, cf "this city, merchants, duly protested by me for non-payment." Handyside e, Courtney, 1 L. C. J. 250. 21. A notice to the drawer which describes the bill as paviilile at the "S. Baidi," when in fact it was pftyal)le at the " T. lUnlc," or wlii(J» liescribesa billof exchan^re as a note, or which transpose-* tlip names of drawer and acceptor, or which describes the acceptor liy a wrouf: name, niav l)e sutlicieiit. Bromajre i\ Vau^iian,l() L.J. Q li. 10; Stockman i\ Parr, 11 M & W. 800; Bain v. (Jrejrorv, II L. T. N. S. ('.01 ; Mellersli v. ilii)pen, 7 Exch. 578; llarpham o. Child, 1 F. & F. 052. The notice must be given by or on behalf of the holder- — 22. The notice must be ji;iven by the holder or some one Iiavint; authority to act on his behalf, or by any indorser who at the time nuiy be liable on the l)ill. Stewart r. Kennett. 15 M. it W. 2:55 ; Clianoiiie V. Fowler, 3 Wend. I7.'5 ; Chapman v. Keane, 3 Ad. & Kl. ID.) ; Har- rison V. Ituscoe, 15 M. & W. 2.51 ; Lysaj^ht v. Brj'ant, 9 C. B. 4(). 2.3. C. is tlie first indorser of a dishonored bill held by D. I), gives notice to C. one day late. C. on the ,9(/?Me day j^ives notice to the drawer, thus, as it were, makin. (I. indorses a bill to the Liverpool branch of the D. I?ank. The Liverpool branch sends it to the Alancbester branch, and tiie Man- oliester branch indorses it to the bead oflice in Jiondon, who presetita it tor pavmenf. The head ollice sends notice of dishonor to the Man- clii'.-ter iiraiich, the Manchester nranch sends notice to the Liverpool braiicii, who gives notice to C. lOach branch, as regards time, is to be considered adi.stinct party. Clode c. Bayley, 12 M. 5- A notice of a note protested on 7th December under the Oivil ■ '- ~ — Code of Qiu'liec, deponited on the lOth iiccordin<,' to the certificate iiud the tcsiiniony of the notary, is valid, altliough tlie notice bore tlie postollice mark of the 11th, and the postmaster and one of tlie clerlis swore that it must have been deposited only on the 11th. Dontre y. La Hiinqiie Jaciiues-Curtier, 4 L. N. 154. See sect. 51, nn. 1 to 5, 50. A notice, mailed on the day after maturity between eilial>ly he post years i;oiviii<5 rliat a iiMcnt, iiintitf natiiin efeinl- Tlie ed by lerally le rest, cither The provisions contained in the Act, concerning the general § 49. duties of tlie hoklcr as to presentment for acceptance wr pre- '^entment f»r payment and notice of dishonor, are so full and Presentment '^"' . . . "■"•1 notice complete, that explanations are almost unnecessary. Attention of dishonor. should however be called to sub-sections (c), (^d), 2 apd 3 of section 49, which will have the eft'ect of introducing into Canada a practice hitherto unknown to our merchants, although followed in England and tlie United States fur some years, luuuely. that of giving notice of dishonor in turn to each endorser, instead of to all of them at the same time. Thus, where a bill, when dishonored, is in the hands of an agent, he may himself give, on the next following juridical day, notice either to tlie parties liable on the bill or to his principal, and the prineipal. upon receipt of such notice, has also the next juri- dical day in wliicli to give notice. lie may give it to all the endorsers and the drawer, or only to such parties aS he intends to hold liable. Therefore, the Act further provides that where a party to a bill receives due notice of dishonor, he has, after the receipt of such notice, one clear juridical day for giving notice to antecedent parties he intends to hold liable. It is prudeat, there. fore, lor every endorser to give n(;tice of dishonor to the drawer and all previous endorsers, unless he can ascertain in due time tliat the holder has given notice to all. Notice given by the holder or any endorser inures to the benefit of all parties con- corntd; section 49(c), (d). This notice may be given in writing or by a personal communication, as provided for by sec- tion 49, sub, (e) and (g); but in the province of Quebec it must always be given by a notary. In the case of foreign bills or notes, notice should be given by a notary in every part of the Dom- inion. Sections 51 and 88. By the Englisli Act, it is provided that "where the drawer or indorser is bankrupt or insolvent, notice may be given either to the party himself or to the trustee." But as there is no insol- vency law in Canada, that provision was left out by the Cansidiaa Parliament;. Notice of dishonor, in such a case, should always ho given to the party himself and if a trustee be appointed to his estate under the provincial laws, it would be prudent to repeat it to the trustee. It may be well to notice here a slight difference between the 154 The Bills of Exchange Act, 1890. §49. AS to acoeptor. English and Canadian Act. The Eudish Act, section 45, sub. 4, says that a bill ispropufrly presented at the place of payuiont specified in the bill. 'l"he Canadian Act, sect' in 45, sub. (sited at the place indicated,— a bank, for instance, — in the event of the bank's iusolviucy between the day of maturity and the day of presoiit- ment or suit. Section 52 merely mentions the cost of the suit, which sliall be in the discretion of the court, and it would certainly seem very hard that the hi« of the provision or funds should fall upon a holder, who has used due diligence in presenting the bill at the bank or place indicated in the acceptance. If, on the contrary, the holder has been guilty of unnecessary delay in making the present iiient, the acceptor would perhaps be discharged to the extent of his damage. Such was undoubtedly the law before the Act. Saundcrson v. Bowes, 14 East. 500; Dickenson v. Bowes, 1(5 Kast, 110; Howe V. Bowes, 16 East. 112, and 5 Taunton 80 ; Bnwos ". Howe, 5 Taunt. 30 and 10, East. 112 ; Roche v. Campbell, 3 Campbell. 247 ; Trecothick v. Edwin, 1 Stark. 408 ; Kowe f. Young, 2 B. & B. 105 ; Mount v. Dunu, 4 L. C. K. H48; nice V. Bowker, 3 L. (\ 11. 305; Story on Bills, 350; Story on Prom, notes, § 228 ; Girouard, Let. de change, pp. H- et seq. By sections 86 and 88, the maker of a note payable at a General Duties of the Holder. 155 nartiouliir piace is deemed to correspond with the acceptor of § 50. a bill, and the profisions of section 52 would apply to hiui. Wluro tlie acceptor has made, in his acceptance, an express stipulation that he will be discharged by the omission to pre- sent the bill, V. g., where he has " accepted payable at the Bank of Montreal, otherwise discharged," his acceptance would then be qualilicd, and he would undoubtedly be discharged by such omission, at least to the extent of his injury, 5<>. Delay in giving notice of dishonor is ex- J|;;'';|'"|^^|^^J^'' cused where the dehiy is caused by circumstances '^"'^ '^•^I'^y- beyond the control of the party giving notice, and not imputable to his default, misconduct, or neg- ligence ; when the cause of dehiy ceases to operate, the notice must be given with reasonable dili- gence ; (2) Notice of dishonor is dispensed with : — ^^'i^n notice ' ^ IS dispensed (^0 When, after the exercise of reasonable dili- ^'*^' gence, notice as required by this Act cannot be given to or does not reach the drawer or iudorser sought to be charged ; {h) By waiver express or implied C) notice of dishonor may be waived before the time of giving notice li;is arrived, or after the omission to give due notice ; (c) As regards the drawer, in the following cases, namely, (1) where drawer and drawee iire the same person, (2) where the drawee is a ficti- tious person or a person not having capacity to contract, (3,) where the drawer is the person to whom theljill is presented for payment, (4) where the drawee or acceptor is, as between himself and the drawer, under no obligation to accept or pay (1) See section 40, sub-tJect. (e). 156 The Bills of Exchange Act, 1800. §51. Noting or pro- test of bill. the })ill, (5) where the drawer has couutermauded pay men t ; {(I) As regards the indorser in the following cases, namely, (1) where the drawee is a ficti- tious person (2)or a person not having capacity to contract, and the indorser was aware of the fact at the time he indorsed the bill, (2) where the indorser is the person to whom the bill is presen- ted for payment, (3) where the bill was accepted or made for his accommodation. 1. Want of fiindH in the hanfl:s of the drawee to ))av tlic bill dis- pon.«e-< witli protest ami notice of dislionor as ajrainst the drawer, The IJank of Montreal v. Kiiston, 1 L. C U. 2')!, CG. 2:Vi:\, 2. The funds niu.st be not only at tlie disposal of tlie drawer, but at the jjlaee of pavnient indicated hv the drawer in the hoilvofthe hill. The Hank ufMontreal v. Huston, 1 L. 0. 11. 2(il ; Arret of the 22Md .lanuary. KiOT, citcl in Iloj^ue, 2 .Tur. Cons. 835; perhaps other- wise hy sect. 50 (r), if the drawee is a debtor. .S. Want of funds dispenses with protest as ajiainst the drawer, even if the bill beacceple(h Bank of Montreal r. Huston, 1 L. C. R, 2(il ; Pothier, Cont. de Chanire, n. 157 ; lioiiue, 2 Jur. Cons. 321; Savary, Parf Neji;., vol. 1, p. l88, see supra, n.2. 4 Want of funds does not excuse protest as ajiiainst the indorser. Bank of Montreal r. Huston, 1 L. C. R. 2()3. Girouard, Lettro^de Change, p. 15.'?. By the Act and also the Code, absence uf funds can only affect the drawer. 51. Where an inland bill has been dishonored, it may, if the holder thinks fit, be noted and pro- tested for non-acceptance or non-payment, as the case may be ; but, subject to the provisions of this Act with respect to notice of dishonor, it shall not, except in the Province of Quebec, be neces' sary to note or protest any such bill in order to preserve the recourse against the drawer or indor- ser ; but in the case of a bill drawn upon any person in the Province of Quebec, or payable or accepted at any place therein, in defliult of pro- (2) See section 46 (b). General Duties of the Holder. 157 test for non-acceptance or non-payment, as the case § 61> inav be, and of notice thereof, the partieH liable on the bill other than the acceptor are discharged, subject, nevertheless, to the exceptions in this section hereinalter contained; (2) Where a forei<2;n bill, appearinjj^on the faccT'""-*'"',"!, \ / o 7 1 1 o tureigii bill. of it to be snch, has been dishonored by non- acceptance, it must be duly protested for non- acceptance, and where such a bill, which has not been previously dishonored by non-accei)tance, is dishonored by ncm-payment, it must be duly pro- tested for non-payment. If it is not so protested, the drawer and indorsers are discharged. Where a bill does not appear on the face of it to be a foreign bill, protest thereof in case of dishonor, except as in this section provided, is unnecessary ; (3) A bill which has been protested for non-S'''i*=f'q«ent acceptance, or a bill oi which protest lor non- acceptance has been waived, may be subsequently protested for non-payment; (4) Subiect to the provisions of this Act, when "^'•"^'"'^'^ a bill is protested, the protest must be made or noted on the day of its dishonor. When a bill has been duly noted, the protest may be subse- quently extended as of the date of the noting ; (5) Where the acceptor of a bill becomes bank-'f'^'^'^*^?*"'''^ ^ , insolvent. I'upt or suspends payment before it matures, the holder may cause the bill to be protested for bet- ter secu^ty against the drawer and indorsers; (6) A bill must be protested at the place where ^'^'^^cre bin ^ . luiisst be pro- it is dishonored, or at some other place in Canada *e»'«d. What protest shu'.I set forth 158 The Bills of Exchange Act, 1890. ^ "!• situate within five miles of the phicc of present- ment and dishonor of such bill ; Provided that:— {(f) When a bill is presented through the post office, and returned by post dishonored, it nmy be protested at the place to which it is returned, not later than on the day of its return or the next juridical day ; (/>) Every protest for dishonor, either for non- acceptance or non-payment, may be made on the day of such dishonor at any time after non-accept- ance, or in case of non-payment at any time after three o'clock in the afternoon ; (7) A protest must contain a copy of the bill, or the original bill may be annexed tht-rcto, and the protest must be signed by the notary making it, and must specify : — (a) The person at whose request the bill is protei*ted ; (/>) The place and date of protest, the cause or reason for protesting the bill, the demand niado, and the answer given, if any, or the fact that the drawee or acceptor could not be found ; (8) Where a bill is lost or destroyed, or is wrongly or accidentally detained from tiie per- son entitled to hold it, or is accidently retained in a place other than where payable, protest may be made on a copy or written particulars thereof; (9) Protest is dispensed with by any circum- stances which would dispense with notice of dis- honor. Delay in noting or protesting is excused when the delay is caused by circumstances beyond If bUl is lost, &c. Excuses for non-protest and delay. General Duties of the Holdek. 159 th(3 CGiitrol of tlio holder, and not imputiible to ii? 51. lii;< duiiiult, misconduct or iR'g licence. When the caiuse of delay ceases to operate, the bill must be iiuk'd or protested with reasonable diligence ; (lU) No clerk, teller or agent of any bank omcor of bank .shall act as a notary in the protesting of any bill notary."*" ur note payable at the bank, or at any of the branches of the bank in which he is employed. See seclioiis 45, 46 and 4!). What protest shall set forth : — 1. Under section 14 uf tlie Promi.ssory Note Act, 12 Vict. ch. 22, the uiiii:s.-iuii to !?tute in tlie protctit, that, it was imide in the al'teinoun (if the day uf protest, was fatal, and the Judorser discliarged. Joseph r. Dc.i le, 1 L. C li. 244. Qaocn; under section 51 (<•_), 7 and sec- tiuul,' (4j of the Act. Letter that protest .-^koiiid state tiiat it was made alter three u'clocli of the last da} of grace. Sect. 51, 7 (6;. 2. The ])rutest describes the maker as E. B. Perry, instead of Jcseph J{. I'eriy. Held, not fatal. Taillun v. Perry, i) L. C. J. 174. Th(. ccrtijicaie of the uotunj : — X The certificate of notice indorsed by the notary on the protest* iM>tiiid uf being written " on the foot of or embudmd in the protest, " .■.ulheieiuly complies with the Act. Lyman v. lioulton, U. C, S Q. B, 32.1. See section 50, n- 34. 4. Wlierea notarial certificate of protest of a note due 25th of June wa^duU'd on the 2()th of June, and certified that the notary had sent Hutiee io the mdu*"ser, not saying wlien it was sent. Held, that the notice was sufficiently proved. Wood V. Hult, U. C, i) l^. li. 344. u. A notarial certificate tliat a note has been duly presented is suHieienl. Plain v. Uliphant, U.C, i) Q. P.473. See section 93, p. 5. 6. In Nova Scotia, protest has to bear the seal of the notary. Tlie Merchants 'Pank v. Spinney, 1 li. «k G. 87 ; otherwise settled by section 'J3, snii. 5, and section 51. 7. The duplicate notice of protest must be produced, and the certi- ticate (if the notary that he has served the notice is insutticient, at least ill Quebec, before the Act. Seed ;;• Oourtenay, 3 L. C. K. 303. 8. But in Ontario it was recently held that the protest for non- payiiieiit was sufficient evideiice of notice of dislionor. Southam v. kuiituii. A. K. '30. Under the Act, section 93, sub. 5, tlie protest will be evidence ( , notice of dishonor, if so stated in it. 9. llelil in Ontario that the notarial certificate of the service of protest was insufhcient in caseof a foreign bill. Ewing v. Cameron, 6 U, S. 541 ; Grifiin v. Judson, U. C, 12 C. P. 430 ; otherwise settled by section 7i (/'). 10. Wiiere a notice of dishonor of a foreign bill does not state that ii has been protested, the indorser will not be liable. Delaney v. Uall, 2 Thorn. 401. Qucere under the Act. 160 The Bills of Exchange Act, 1890. il s ej 11. In lui action on n proniisnory note piiyaMo at a pnrticnifir placo, '- iiiiil ii liill of I'xcliiiii^e jirnlt'.-lt'd I'ur ii()iiU(H;i'|itiiin;c', the (flil_\ < •, i.i, in,'i: to jiruvc tlie pri'si'tittnifnt of tlii; note ami protrHt of tlic l)ill whh a settloil accuiint lii'twoon llic piirtics incliuling the Mute anil hill im,] n cliar^H' for " proti'Hl oxitliuiigi'." Held siillicicnt to ili.-peiisL' witli il^. j)r('liiMiiiary proof of presfntnu-nl and jiroti'Ht, and that it nii;;lit be inforrtHl tliat the pnjtestod excliaiii^c nuMitioiK'd in the accuiiiit n- ferrtni to the bill in (piestion, it hcin;,'oftlic' same amount and nduilur bill being shewn between the parlies. Balloch t'. Binnev, N. H I A. vn. 12, In an action against the drawer of a foreign bill, the protest is evidence of an acceptance piiyable at a particular place, ami of due presentment at that place. J'arratt r. Wilmut, N. 15., I A. ii.jU. 13. The certificate of the notary, that he left the notice of protest with the agent of the indorser, is not j:>;'?;/ia_/ac7e evidence of the agency. J)riinun /,'. liradfute, 18 La. An- (if^O. Protest. The "noting" mentioned in section 51, sub. 4, and section 1)2, is different from the " noting " provided for in the Act of 1849 ; it is not a deed complete in itself, but is a mere luinuto made hy a notary on a dishonored bill at the time of its dis- honor. The formal notarial protest may be extended at any time, by any notary, "as of the date of the nothing" sect 51, (4) and 92. This noting sliould tlierefore consist of the details necessary to the drafting of the deed of protest, when refjuircd, In the Province of Quebec, all bills and notes must be pm- tested by a notary, or by a justice of the peace when the notary is not accessible. The notice of protest must also be ginu by a notary, section 51. In the remainder of the .Dominimi, the office of a notary or justice of the peace is required only iu the case of a foreign bill or foreign note; sections 51 aud 88. The essentials of a protest are defined in section 51, subs. 4, G, 7, 8 and 9. Forms of noting, protest and notice of protest may also be found in the schedules annexed to the Act. Finally, sub section 10 reproduces the old Canadian law, which forbids the clerk, teller, or agent of any bank from acting as notary in the protesting of any bill payable at that bank. C. C. St. 1859, eh. 57, 1, 3; Ca. R. S. 188G, ch. 123, s. 11. Protest may be made '* at any time after three oclock in the afternoon," sec. 51 (6) ; although presentment may be made by the holder either in the forenoon or the afternoon of the last day of grace. Therefore banks must keep their doors open on Saturdays after three oclock as well as any other day to permit the protest of all bills in Quebec and of foreign bills in the remainder of the Dominion. General Duties of the Holder. 16 Sccliitii 51(5^ lias iiitr()Juct!il a new I'onu of protest, tliat which § 62. may In' made for bettor security when the acce])t()r hecomes l);iiikiu|it nr suspends payment before maturity of liu! bill. Uiulcv souu^ just as if I hi' priiu'ipal debtor had not b.'eoiUL; insolvent. of s to t. 52. When no ])liice of payment is specified in T-i^Liiity o! the bill or iicceptiiiiee, presentment for payment i""*""'"i''" is not necessary in order to render the acceptor liable ; (2; Wiien a place of payment is specified in the Ijillor acceptance, the accept(jr, in tiie absence of ail express sj:ipnhition to that elTect, is not dis- charged by tlie omission t(^ present the bill for payment on the day that it niattires ; but if any suit or action be institute i thereon before };resen- tatioii, the costs thereof shall be in the di.>-cretion of the court ; C) (3) In order to render the acceptor of a bill lia- xo protest or i)le it IS not necessary to protest it, or tliat notice sary. of dishonor should be given to him; (4) Where the holder of a bill presents it for Presentment payment, he shall exhibit the bill to the i^ar^am ''"' ^'■'^""''''^ Iroin whom he demands payment, and when a bill (1) Stu sfctiuiis 4o, 80 and 91. 11 162 The Bills of ExcnANGE Act, 1890. ^ 52. is paid the holder Hhall forthwith deliver it up to the party paying it. (') The ctints s/iiiU he in the tlisi-retion, etc. : — 1 . Ill Qin'lii'c, 11 imic piiviililc III ii [iiirtii'iiliir i)lii('o, miHf lio prcscnto,] lis iii^iiin^t lilt' riiiiker, utluTwisi' tlio liuldcr will iint ^vi. Iii-t c((-it> if I'uikIh III' pi'ovitlfd tVir it ut tliiil place ami tlicili'ltt l)i' tciiiici'i'il in cdurt. iMin'auit r. Jiajnic, 1) R. K. iJH'i ; ArcliiT l\ Lortit', .'5 Q. I,. i{. 15!> ;Crc|Kiiii r. Modir, « Q. Ii. 11. l'J7; La liuciiiu' c. Amln', 2 L. (I. It. .'{.')'); Mdiint r. Diiiiii, 4 L. C. li.'MH ; .SliiittT r. I'axtini,') L. C. .I.,'),"). ]U\{ sec O'Hric'ii r. Stcvi'iHuii, Ij L, C. R. 2(l'i. I'lnlcr tlic Ai;l, the iiiaUcr or acceptor i.s nut (lischar^^cd l)y waul of pi'i'st'iitinciit, iiiilcss tluro lie "an e.vpress sripiilatioii to tliatetlect. tiiid not elsewhere" will not cuiistitute niicli lat I lie wonlH •• there an cxjiresH sti|m- lOll. 2. In y. IJ., if a hill he ^ lyahle at a particular place, pri'-cnlnu'iit is necessary hefore hrinjjjiii;^ action aj^ainst maker. RalclilVml o, Grillith, 2 Iverr, 112 ; Chaiider v- Beckwith, Her. 2(18. {. In Ontario, pre-s. ISih May, 1808, D. 08, I, [VIA ; Torrance v. Bank of B. N. A., L. R.,5 P. C.24;"C. L. art. 1190 ; (Jirouari, Lett re.s de Change, p. 110. Dti|mi< V. Evans, 12 L. N. 251 ; Moodie, v. Jones, 19 R. L. 510. C. C. art. 1190. See section 59, n. 5;5. (1. Provision means that the drawee is, at the time of maturity, the debtor of the drawer or of some person for whose account the bill ha* heen drawn, called le donneur d ordre, or that the drawee at the time of maturity has funds, valuable securities or goods, out of which 164 The Bills of Exchange Act, 1890. 45 53. the Lill could bf paid. Ri'cj. 21st Miiy, l^^\ ; D. 81, 1, 2;)l ; Oilhcrt — "=• — *siir Sirry, art. .1(1, iiutes ; 2 I'link'.-.-ii.'^, 24;i ; Cufis. i,-il i'Ybruiuv, ■ l^'.'ili ; Ciiss. :50tli Miiy, l«4l ; Ca.'?.-*. iird Auguft, ls35 ; 1 iJrdarnUf, 20(1; 4 Ahiuzot, 87. 7. Tlif men' fact that the drawee i.-< Jiiileljt<'d to the drawer crialt^ no tihlij!atioii on his part to accept the hill, except in tne ease of bills on a baiiker where tlie drawer lla^^ funds tu draw a;i:aHist. (iraiit c. Au>tt'ii, .'5 Price, ;J8 ; N. Y. IJauk c- (iihsuii, f) Dutr, ;')74 ; 'jluuihviii o, U..i)urt>, L. li., 10 Kx. :m ; l\.tt r. Cleg-, 1(1 M. it W. ;i21 ; F..ley c. liill, 2 11. L. ('a.>. 28 ; Ke Agra iJaiiU, :>u L. .1. eii. iJi ; Kiigli>ii Civ- dit Co. V. Ardiuii, L. U., 5 11. L. ti4j Lyon, 2Uth Dec, 184;!, S. V. 48,2, 177. 8. If a bill of exehanj'e be drawn a'j;aiiist u bill uf lading, wli icll IH relaineil by the payee, the drawee wiil not be buuinl to aeeept (la' h Schiirchardt v. Hail, 3(J Md. oiiU. II. Tliedelivery of the bill of lading to the holder of a liill of exchange 0}Krates as a jiledge upon the good.- nieiUiHiicd in tlie bill of liidiiig tu Secure the payment of the hill of excnange and otiier liahdities ay- cording to agreemeiu uduch may be proved by verbal evideiici'. Ca-s. lolh Ih'cemiier, l85(l, L>. oG, 1, ibj ; Cass. 17tn August, l8.jii, |).5!l, 1, ;M7 ; Hois'el, •'•24 ; Tiiompsoii r. .MoNoiis Hunk, Ci. IG .S. C. U. ijiil; Watson V. JuUnson, iUJ L.O. J. 71. See i/i/'H, ". lik lO. Tlie loss of provision consisting of specie, goods or valual lie sei'll- rities deposited with tliediawee wiinout any lault on ni.-; part, lall.s njMMi tin' drawer. 2 I'ard. 24;{ : 1 lied. 214. 1 I . 'I'Ik' defendant placed timber m liie plaintill's hands as sectinty or toe payment of a promissory nuti . iiinK r an agieement that the timber was not to be sold before l-i Novfinlur w.inout defriuliiiit's coi gi\ ing i isent, hut after that day, tlie plamtill to |r' at liberty to .-ell, iificr notice ; ine plaint, If sold tiic lim- wr le deleii hint fourti.'en iffer the 1st N(jvemher, hut witiioiit giving tiu' notice, Held (Ritchie, >i., ilu/iitdute), inai iiunig,! tne defendant inigiit entitled lo daimi' in an action i.if troscr, or on llie agreement fii'ii .roiiiifiil sale ot the timber, he wa- .1 en illed ernlit as a pay- nieiil, in an aetion on the note, for iiiiue tliaii the jii'oeieds of tl tl lough [iniit. that was le-s than the higiiesi market value of llie tiiiiber ar r. Ferguson, N. lb, 4 A 11, 12. It is no defence to an action brought by the plamtill', a inei'eliaiit in veri )OOl a-' endorsee of a bill of fxenaiige drawn hv the delm- daiit (111 o \e .1. \V., at Liverpool, and remilled to tne plaintill'hy hi.'' agent at S.ant John, in paying for moneys cdllci'ied, that tne h.il wa-J diawn against a shij) ami cargo, whien tne o\\ ner.s liad consigned tu thf plaintiif instead of. -ending them to J W'., the ilefiiidant's agent, as had been originally mlended ; tne plamtill not having heeii jinvy U) tne arrangement, and having in fad applied tlii' proeeeils uf t ho Hhip and cargo to thi' payment of other deiiiand.- which lie liad agaiii.-t tl e owner Halt on r. \Vilmot, 2 Iviir, ;{2I. 1;!. On the 8tli (if August, 1888, W. . I made his promissory note fir $(7112. ()7, jiavable f nir months after date to the order of J. .1., fu the aeeoiiimodatioii of the latter, who agr(/)r(i, no. 4 and 5. It must be remarked that the interpretation given by (he French courts has not been adopted by the Btdgian courts, who seem to maintain the principle laid down in section 53. ^^aninr, Dr. Com., p. 248 et seq. ; Cass. B. ,29th Jan., 184(), 40, 1, 251 ; Brussels, 19th Jan., 1829, 21st Feb. and 2nd Aug., 166 The Bills of Exchange Act, 1890. § 53. 1839, 13th Aug., 1800, 01, 2, 5 ; Ghent, 4th April, 1855. Therefore Naiuur couclu les : " Aus.si loiigtemps que le tire ii'a " pas accepte, les creanciers du tireur peuvent saisir-arretcr la " provisiou entro ses mains. Apres cette saisie, le tir^ no ptut " plus, meme en acceptant, porter atteinte aux droits qu'ellc a "coiiferes aux creanciers, p. 250 1 - Si la provision consiste *' dans une creance du tireur sur le tire, le po:'teur n'aura vis-u- "vis du tire qu'un droit d'obligation. Kn consequence, il tie " pourra reclaiuer qu'un dividemlo dans la failliie, ii I'insiar des " autres creanciers. 2-* ll en sera de meme, si la pro- *' vision consiste dans le prix de marchandises dont la propri- " (5te a ete transferee au tire, car le porteur nc pourra encore *' invoquer qu'un droit de crt-ancc. 3 '^ Si le tireur a fait uii " di'pot entre les mains du tire, sans lui transferer la propriete, " et sous la condition que ce depot sera specialement atfccte au *' paiement de la lettre.le porteur pourra, en exergant les droits " du tireur dont il est le creancier, revendiquer les choses objits " du depot, et se faire payer sur le prix. Mais, dans cette hypo- *' these, les autres creanciers du tireur pourraient intervtuir " pour partaker avec le porteur le produit de Taction, puisque, *' commc! nous I'avons vu au paragraphe prt^cedent, le portiur " n'est pas proprietaire de la provision," p. 258, This discussion between the Courts of France and Belj:ium possesses no longer any practical value for the Province of Quebec, The parliament of Canada has settled it by section 53 of the Act. The question as to whether the drawer had provided for the bill or not becomes of importance, when he claims tnat he i.s discharged by want of presentment and notice of dishonor. See sections 45, 40, 47 and 50, especially 40 (c), n. 22. Chalmers, at the end of his admirable book, pp. 275 to 283 has condensed the English jurisprudence upon the subject of securities for bills of exchange, and his remarks are so concise and comprehensive, that it is thought advisable to reproduce them here verbatim : — Eights of Draicer. Utile 1 . Apart from special contract : (1) Wlierc goods are puM, to be j)aiil for by liuyer's acceptance of seller's draft, and tlie aiMH'ptor fads or dishonors the bill, the lien of the drawer as unpaid veinlor Liabilities of Parties. tlicronpon revives, if lie has not parteJ witi' tlie possession of the goods or can >lup tlieni in tnuisitii; and it is ininiiiteriul tiiat the drawer has - nciriniatt'd tiie hill, (hinii v. liolrkoir, Vauijlian A- (Ju (IH7">), L. ii., lo'cii. 491 ; Cf. /;.i' pavie C/ialinurs (iST.'i), I-- ii., « Cli. at p. 2D2 ; Ex vartc Laitihtoii. (1875), L. li., 10 Cli. at p. 415. (2) Where an aj^eiit hiiys i:(Kids for his princnpal, and draws on the priiu;ipal f. for ssilc, draw* on liiin for tlie jiricc, and ne^Mitiiitcs the l>ill of excliunjio witli hill of ladini,' iittuchoil. J}, accepts the hill, j)ayal)lo on delivery of hill of lading. This operates as a j)ledjre of J3.'8 interest in tlie i.mo(1s to the holder, who lieeonies, as rejrards W., a secured creditor. Ex parte Brett (I1S71), L. R., (I V\\. at p. S41. Lord Cairns j^joints out in Banner v. Johnston (1^71), L. R., ') H- L. at J). 174 : lliat where a lull is (udv allowed to he drawn aiiainst shipments or ajiainst hills of ladintr. the >tipulation is t\:ian Code, Ait. 2(). Huh- 4. Jf the acceptor fails durin;^ the currency of the hill, or dishonors it at maturity, his lien upon or riuht to the goods or Hecui'ities is thereby deteimined, and he holds them at the disposition of the drawer. 7r/o/.-e v. Jfolliin/n-ort/i (17'.).!), 5 T. li. 21;"); appiovod Ex parte Banner (lc^7<)), 2 Ch. D. at j.. 2si), C. A. ; E.v parte Kell,/ A Co. 'Is7!)). 11 Ch. I). iiOtl, C. A.; Be Cot/ietil»n, L. R.,8 Ch. A]., at p. 224. II.l.t'STIt.VTlOXS. to 15. hills of other parties which lie 15. accejits, faiN hefore ids accept- 1. A. draws on B., and remit liolds to )iro\ide B. with fund anees mature, and comp-ounds, jiaying the hill-holders O.s'. m the ptin the drawer, for the goods are the principaPs ahsolutclv. Ex jnirle Banner (lH7(i), 2 Ch. I). 27S, C. A.; see at p. 28"J; see Banco Liabilities of Parties. (18«:)), 20 Cli. D. 84S, C. A. ; Cf. PleJps v. Comber (1885), 29 Cli. D, 81.'1, C- A. Tlicy lioloiij: to the driiwei's trustee. The ease of Ihoini, Shipley & Co. v. Koxtnh (18S5), 2!' Cli. D. 84S, C. A., seems liiially to dispone of tlie often ilisereilited eiise of Frith V. Forbes (lS(i2), 4 I)e (r. F. tt J . 401). liy treutiiii: it as an erroneous finilinji' on a i|uestion of faet. As Mellisli, L,J., savs, in h'ohii/ v. Oilier (l^Vl), L. K.,7Cli. at p. (ilCJ :— " A mereantiie man wiio is intended to liave a lien on a cart^o e.xpeets to have the hill of ladinj:!; annexed (to the hdl of o.xchanjie) ; if there is no hill of ladim.' annexed hi (inlv exj)eets to <:et the security of the hill it>elf. Jn Frith v. furhts, the Court considered that, taking' all the letters tojrether, there «as an equitahlc assignment (in favor of the hill-holder)." Where remittance, are made to cover hills, and the drawer hy a collateral aL^'cemiMit has assiirned his riji'lits to a particular ludder, the accejitor holds ihe remittances for the henetit of that holder a.s equitable assignee. Ex j) arte Carrick (1858), 2 De G. k J. 208. lliijhts of Holder. Hi(h' 5. Where the drawee or acceptor of a bill is indebted to, or \vA< in iiis hands funds of the drawer sutHcient to meet it, the hill does nut o]ierale as an assignment of the debt or funds in favor of the lu.liler. See sect. 5:5, and Slnriid v. Dn linis.soii (ls74), ]j. R.,18 K(|. 2>:'.. hill; Jlopkinson v. Forster (1874), L. K., l!l E.|. 74, cIkmiuc ; Hehnndcr v. Cntrid Bank (1871!), ;^4 L. T. N. S. 735, che(|ue. Such an assignment can only he eflected by agreement extrane tie payee. Shand v. ])n Buisson (1«74), L. R., Is Hij. 2s;5. 2 The holder of a bill purchases it on the faith of a verbal repre- sentation made liy the drawer that funds sufHcient to meet it have been remitted to the ilrauee, that it is diawn aijainst those funds, and that it ctTtainly will lie paid. Thedrawcr fails, and thedrawec I'l fuses to aei'cnt the hill, tbouiih he has funds sulHcient to meet it. The bill- iioiiicr IS not entitled to tl lose funds, and the drawi'c is justiliei 111 iiiinliiig them over to the drawer's trustee. Citizens^ Bank of 'j'HIKiUIKl V. New Orleans Bank (187:5), L. li.,6 H. L. .{52. Thi< rule doe.« not a})ply to Scotland. See sect. 5,'?, L'ldvi). Subject to Rule 7 (double insolvency), where a hill of ex- laiiire is on change is on the face of it exj)ressed to be drawn against specitic guilds or securities, the h(dd<'r does not obtain thereby any charge iilKMi the tiodds or securities if the bill be dishonored, himan v. Clare (IsoS). .loluis. R. at p. 77(i ; Iil), I De (J. ct J. b'i2; Ex parte Carrick {\^')<), 2 De G. tt .1. 208; L'anken v. Alfaro (1S77), 5 Ch. D. 78(J, C. A., where the holder' .s charge haa been upheld ; ami Latham v. 170 The Bills of Exchange Act, 1890. 1 1 § 53. Chartered Bank (1871), L. U., 17 Eq. 205, fur llic coiisiiii.iion ofa K'ttcr uf liyputlieciUioii. 1. Unt crcilit, No. 20," receives the cotton, Imt fails before tiie liill niainres and dislionors it. The holder has no charge ui\ the cotton. Jiamicr v. Juhmton (1871), L. R., 5 11. L. 157. 2- A. consi(j;ns by ship Acacia a car'.\), 2:? L. J. Ch. 1, and one of those jiarties hold-, goods or securities of the others. Ex parte Laml>foii (IH")), L. R. 10 Ch. Ap. 405, see at pp. 41(i,4i7; Ex parte Haniwr (187(1), 2 Ch. 1). at p. 287, C. A.; ami see liaiiner v. Johnston (1871), L. R., 5 II. L. at p. 174, as cover for the bills, LeH & Co.'s C(we(18(i9), L. R., 7 i':(|. 449; Ex jKirk Alliance Bank (I8(i!)), L. li., 4 Ch. Aj). 42:5, the liolders are entitle.l to have the proceeds of those goods and securities applieii in payinent of (lie bill. Ex parte Uliring (1815), 1!) Ves. ;U5 ; Ex parfc Varr (1818), Buck. 191 ; Cilti Bank v. Luckie (IS70), L. R., 5 Ch. Ap. TT.!; Bank of Irelawl v. /'err;/ (1871), L. R., 7 E.\. 14; Ex parte Jkirhml (187;!)," L. R., 8 Ch. Ap. ;H)5, provided that the goods or securitL's remained unrealized at the time of the failure of the partv lieldiiig t\n}u\. Ex parte Dc-er, R. Suse (1885), U Q. ]}. I). (Ill, C. A.; aliter, if realized rightfully or wrongfully ; j)er Brett, M. R., at p. 622. If the proceeds of the goods and securities do not equal the anionn' of the bill, the liolders are entitled to jirove a* creditors for the hal' ance. Powles v. Ifan/renres (185,'?), 3 De G. M. & (i. 4;50 ; see at P' 452, and form of order at p. 445; also form of decree in C'iti/ Ihiiik^'' Lnckie (1870), L. R., 5 Ch. Ap. at 778 ; Ex parte Joint Stock ])isci>iint Co. (1875), L. R., 10 Ch. Ap. 198, reduction of proof. Qucere, i{ Lodefs Case (18C8), L. R., 6 Eq. 491, be right? Liabilities of Parties. 171 ILLUSTRATIONS. 1. Tlic (Iniwcr and iiccoj)tor of ii bill both become bankrupt. The arrcptor IiuMs short bills lielonf^inij to tlie drawer as cover for his aici'platu'e. The holder is entitled to the proceeds of these bills when riiilized. Kx parte Warhuj ClslS), 19 Ves. 315. 2. 'I'lie drawer of a bill becomes bankrupt. The acceptor dies insol- vent. By auireement with the ac(!eptor the drawer holds certain (T(Miils a-i security for the amount of the b'il. Tlie hoMer i-< entitled t(i the proiTcils of these gootls. Powles v. jlaryreaoes (1853), 3 De G. M.c\:G.430. :!. The drawer and acceptor of a bill become bankrupt. The accept- or iU'cepti'd under a jruaraiitee from a bank that the (Irawer should pruviile luiids to meet the liill and keep him out of ctash advance. The lioldcr is not entitled to the benefit of the guarantee. Ex parte Stephens (18()S), L. R., 3 Ch. Ap, 753. 4. The drawer ami acceptor of a bill become bankrupt. The aci'('|uor holds securities whicli were deposited by the drawer as secu- rity for his current account, before tlu' bill was drawn, and withnut reference to it. The holder is not entitled to the beiielit of those securities. Led ct Co.'.v Case (IHOD), L. 11 , 7 Eq, 449. h. The drawer ami acceptor of a bill, who are distinct firms in Imlia and England respectively, but engaged in a joint adventure, licciinie bankrupt. Thetjill is drawn specifically againsta consignment of goods from tlie drawer to the acceptor. The holder is entitled to the proceeds of the consignment, sulject to claims of the agirreirate L"ri'4itors of the two firms against the aii'iiregate assets. Ex parh; 1>< w- /!»r.s7 (1S7;;\ h. U., 8 Ch. Ap. 9lJ5; Cf. Ex parte Manc/iesier Bank (bl!)), VI Ch. D. at 779. G. The drawer and acceptor of a bill become bankrupt, the drawer having sold uroods to the acceptor and drawn on him fnr the price accdnling to agreement. The holder is not entitled to tiie jmjceeds of the goods. Ex parte Lavibton (1875), L. R., 10 Ch. Ap. 405. 7. The drawer and ac',ei)tor of a series of bills liecome bankrupt. k'coniiniz to the terms ot thee red it under wliic h tl M'ciinties are remitted as cover for sjiecilic bill.- 10 itil Tl are drawn. 10 lilt an Ider.s are entitled to the lienetit of the securities which remain unrealized in the hands of the acceptor at the time of liis failure. The securities must he appropriated for the benefit of the holder of the bill they were roinitteil to cover, and not for the benefit of the holders of other hills (1 rawn urn lor the same credit. Ex parte IJecer, lie Siise (1885), 14 Q. n. 1). (Ill, C. A. The rule above stated is generally known as the rule or doctrine of Ex parte ]Varing. It has been much misunderstood. The primupleou which it is founded is the necessity of working out the equities between the two insolvent estates, each of which ha-^ a claim on the guoiN or securities forming the cover for the bill, which can only be i*atisfied by the application of the proceeds to meet the bill. It is not fuundod tin, nor iloes it imply anv property or interest in. the goods or securities on tlie part of the billdiolder. Roe per Ii(U'd Cranworth, and Turner, L. J., I'dirles v. Hargrenres (1853), 3 De (J. M. Ch. Ap. at 5G8. ILM'STUAl ION'S. 1. A bill is drawn speeitieally against a consiuititnent of u'noil-!. Drawer and drawee both become liankru[)t, and the drawee refn-es to accept. Tiie holder is not entitled to the proceeds of the jrii,,il:j, Ibid 2. A. in Scotland employs S. as Ins correspondent at Ilavuiuiiili and B. as I lis corii ■')ondent m |joti>lon. bv .\. sends i£()ods to S arratiiiemeiit betwei'ii all [larties draws on 15. for the pri ce ilMij B. accepts. S. sends remittances in l)ills to H. to cover his acceptiviice. S. and H. become bankrupt A. is entitled to the proceeil- oF tiie remittances if he takes np the bill. E.c parte ^mart (1872), L. U., 8 Ch. Ap. 220. ExpldiKitiiin 2. — It is not necessary that tiie two insolvent estates pjioiild be administered in bankruptcy. It is sniHcient tiiat tlicy me both ailmiiiistered for the henelit of creditors under tiie coiitrtii nf a court of justice. PmrhiH v. Ifiir(/re(irt;s (1S5:}), H De (J. M. «t ! ; and see the status of a composition (list:ii in Ex parte, liiimboll (1871), L. R.,G Ch. Ap. H42,an(t Grat/ v. Mciindk (1871), L. R., 1) C. P. at 2;i0. By s. 10 of the Judicature Act, 1^15, the biinkruptcy rules as to jiroof, etc., are applied to the wimliii;: "p of insolvent companies and to the administration of the estates uf pti- sons w' hoi lavc died insolvent Rights of Surety on Bill. Rale 8. (1) Where a bill, which was accepted for value, is ili^lion' ored, and the drawer or an indorser is compelled to pav it, hen entitled to the benefit of any securities depositeil by the acceptor with the holder to secure the payment of the bill which the holder hiid ni liis possession at the time of the dishonor of the bill. Daiiemi. I'"^' & Co. V. iV. ,f- ,S. Wales Bank (1880), (> App. Cas., 1 H. L., ever- rulimz C. A.; see First National Bank v. Word (1H77), 71 New York R. 405. When a bill is accejjted for value, the drawer and indorsers are Liabilities of Parties. 173 'riil'nr to luiil il'ns ;/«/ Hunk lu'lliiiriic. 1»K' til the 110.H'<~lll'V Vdii'j.'iiui (it' '.'ihmIj .'L' ivt'u-e.s ;lu' IZciuils, hivaiiiiiili, to S , mill |)ru'c. H. (•A'.C|ltllllCO. ,1- iif me ), L. 11., 8 eiit estates at tlicy life ;untrcii of a .,\;(; U\ rte (liiinal arte (vma >S llltl-I lif .), II Q. B. iOi> with his siillificiitly [)\V till' il'il!" (If^T'i), li. 1 lli^^■llS-l■ll V. Mnirath Act,' 1^1.^, .viiidiii,;: lip iiW< of iit'i- IS ilislion' Jiv it, lie i< fcptor witti llcr liiiiH" I. !-.,"""'• 1 New York lor.sers are qvaal sureties fur the accentor, soc anfc, p. 172. See tlie limits of the § 53. rt'liitniiislii|nliscussc'il by Lunl Hluckimrn iuid Lord Watson. Duncan, — ' Fu.c .!■ Co. V. N. (t' S. WdlcN Bank xiipra, at pp. 11), 22. (1) Where an accoiDiiiodatioii jiai'ty iscuiiipclled to pay a lull, he is entithil lu the lienetit of any st'ciirities deposited by the person acconi- nioiliileil with the luilder as security for the iiayiiient of the bill. Ikrhiriuti.ie V. Jjcwis (1872), L. II., 7 C. P. at p. ;i77, per Willes. J., fi'ivi/ V ScrklKtm (1872), L. U., 7 Ch. (J!SO ; Cf. Ptarl v. Ueacoit (18.37); 1 iJeG. it J.4(;i. Quebec Code on CoLiiATEUAL Securitiks. It would not bo out of place to reproduce here the rules of the Quebec Code concerniug the pledging or pawning of goods or cither j)t!rsonal property. Article 19G6 says : "Pledge is a contract by whicli a tiling is placed in the hands of a creditor, or, being already in his possession, is retained by him with the owner's consent, in security for his debt." See also art. ll)i!8. It has been held under these articles that a debt may be given in pledge. Farmer v. Bell, Q. L. 11. 1 ; Leonard v. St. Aruiand, 13 Q. L. 11. 317. Alt. 1!)1>D. " The pawn of a thing gives to tlie creditor a right to be paiil fmni it by privilege and jireference before other creditors. '• Tiie privilege subsists only while the thing pawned remains in the haiuls uf the creditor or of the i)ersun appointed by the parlies to hoKlit.- All. 171.5. " Hills of lading, warehouse-keeper's or whartinger's iCLTipts tir urJer- for delivery of goods, bdls of insj)ection of ptilasli or |ieai;a-li, and all titlier docnineiits used in the ordinary cdurse of bibiii('>i<, as prcmf (if the possession or control of goods, or ptirjiort- iiiL' to iinthurize, either by endorsement or by delivery, the possi'ssor et any Muh dociiment to traii-fer or receive goods thereby represented, are (Irciiieil docuiiunis of title within the provisions of this ehajiier." C. S. C, eh. 51), see. 7. JIdil : — That to acquire a lien under articles 1745, 1960 and lOtlT of ilie C/ivil Code, there must be an actual delivery or possession of the property pledged or of some document in use in tlie ordinary course of business, entitling the bearer thereof to elaiiii possession of such property. l\oss 2>. Mol.son's liaiik, '- Q. B. U. 82; Cary 7>. La Compagnie de Papier do Canada, 10 11. L, .'jdl ; In re Lemay ct al.. Insolvents, G Q. L. II. 35; iinnloi, ;.. ilotte, 2 L.N. 348; Gushing z-. Diipuis, P. C, 5 Alt. <'•'>• -t<'9; Fairbanks ?/. liarlow, M. L. 11., 2 Q. B. 332; Ufa. S. C. R. 218; Moffat v. Burland, 4 Q. B. B. 5!). Art. IHTI. "Saving pawnbrokers, no creililor can, in default of liayiiH'iii i,t the debt, dispc-e of the thing j^iven in pawn. He may eaiia' it lu lie seized and sold in the usual course o law under the 174 The Bills of Exchange Act, 18i)0. Hi ^ 53. authority of a competent court, and obtain payment hy preference (ml '■ of tiie |)roce<'(ls. This p^ovi^i()n, however, (hies nut iijipiy to liinlicr whicii I' pledjicd umh'r tiie provisions of tiieAi't 2'J Victoria, cliii|)|fr ]!>, nor to hanks as regards iroods and nieroiiaiKhsf given in si'i;iuMly, unchr liic j)rovisions uf liie laws ri'speeting hanks and l)ani. Uauk Act ISDO, ch. iU, ss. 74 to 7'J ; Quebec Savings Bank Act l.S9(), Ca. St., ch. :V2, sh. 20, 22. As to the sale of articles pawned to licensed pawnbrokers, see U.S. Q. arts. 1*75 et si'(p As to tiie notice required by law to be given by banks before Holling goods jjlfilgrd to them, see K. S. C, cap. 120, s. 5S, replaced liy .. under the heading '• Busio' ss and Powers of the Bank." See ;,lso 52 Vict., c. 30, 1889, " An act rclatiug to bills of lading." Bank Act, 1890, 53 Vict., c. 31. In force on the 1st July 1891, BUSINESS ANU POWERS OF THE BANK. (i-t. Tiie bank may open branches, agencies and offices, and may Branches and „j,„,, ,, ;,, .„id carry' on business as a dealer in gold and silver coin agencies. '^ ' LuHiLiTiEs OF Parties. 175 §53. ami l)ullie bank, — which trans- c;ise of sale. fir sliiill vest in such piundiaser all the rights in or to such shares which were possessed by the holder thereof, witli the same obliga- tiun uf wananty on his part as if lie were the vendor tln-reof, but witliuiit any warranty from ilie bank or b tlie otlicer of the bank executing such transfer, 60. The stock, bonds, debentures or securities, acipiired and Indd r<>llatcrnl sc- by iiii' Lank as c(dlaleral security, may, in ca-e of default to pay the (inrities muy ili'bt, fur si'cnriim which they were so aopured and held, be dealt 'j"-' ■"'■"' ''"''y with, s(d(l and convevei either in like manner and suliject to t e licit with. fame restrictioiH as are herein provided in respect of stock of the bunk on which it has ac((uircd a hen under tlii-* Act, or in like man- ner a- ami siihject to the re^triction.- under wliudi a private im IV 1- and coiivev the same, dual might in like circumstances deal witl , bnt nithc It obligation to sell the same within twelve moiith-^. 2. The right so to deal with and dispose of such stock, boml-, Ki^rlit to do s( debi'iitures or securities in manner aforesaid may be waived or varied in.iy be waiv- by liny au'reement between the bank and the owner of such sto> k, ''d- bonds, deiientiires or securities, made at the time at wdiich such dt bt was iiicnrred, or if the time of payment of such debt has been exteinK'd, then by an agreement made at the time of such extension. 07. The bank mav acquire and hold real and immoveable pio- ]{^,.^[ estate peitv for its actual use and occupation and the management of its occupatiou bi ' .... ... ... for uusine- uid may sell or dispose of the same, and acquire o tber projierty in its stead for the same purpose. 176 TiiK Bills of Exciiangi-: Act, 1890. I j^ 53. ^^« The hntik iimy tiike, hold ntnJ • lave the same right of aciiuiring and hoidm diip or vessel, while building and wiien coin] leU'^ either lien the ; )iurpi mortgage, /ii/pat/thiiic, hypothecation, privilcizc or or purchase or tian ^fer tl lert'ol iinliviiliia ,. I ia\ e Hi :e wherein siicli ship ur vessel is being built, and toi' iliiit ise may a vail itself uf al -uch rights and means uf ublainiiiiiiiiiil enforcing such security, and shall be subjei.-t to all such obliL'atioiis limitalioii- and conditions as are, bv the lawofsm h r rovince, cuii* Warehouse re- ceipts may be taken as I'olli- teral security. feried or imposetl upon individuals making such advances. 7JJ. T\u' bank may acquire and hold any warehouse receipt niliill of laiiing as collateral security tVir the payment uf any debt iikmiiiviI in Its fa\ur m the cuurse o f Its bankini' 1 iiisine! am 1 ti le warcliiHise receipt »e recteiptor liill of liiditij;; When provi- in tlir imeiit of llie owner of the ^oods, wares and niereliandix' men- oih holder is tUMir (I tlierein, the lianU siiali lie vested with all the ri'dit and title of uu iiguat. the owner thereof, --uhjecl to iiis right to have the same re transferred to liiiii, if tilt' deht, aw wecurity fur wliicli they are held by the hank, is paid ; 3. Ill thiH Hcction the expression "agent" means any person interpretation intrusted with the possession of goods, wares and merehandise, or to of" Agout." wlieiii the same are consigned, or who is possessed of any liill of liuliML', reeeipt, onler or other doeument used in the course of Imsiness ari pi'cKif of the possession or control of goods, wares and merchandise, or aiitliorizing or purporting to authorize, either hy indorsement or bv ilt'livery, tiie possessor of such document to transferor receive the giMids, wares and merchandise therehy reiiresented ; and such per-'iiii shall he deemed the possessor of such goods, wares and mer- clmiHlise. hill of lading, receipt, order or other document as aforesaid, as uell if the same are held hy any person for him or sulject to his cuiiinil us if he is in actual possession thereof. 74. The hank may lend money to any person engaged in husiness Loans to whole a« a u liolesale manufacturer of any good<, wares and mertdiandise, sile luiuiu- iilinii tlie security of the gooils, wares and merchandise manufactured facturors. bv luiii or procured for siudi manufacture ; 2. The hank may also lend money to any wholesale purciiascr or sihipper of jiroducts of agriculture, the forest and mine, or the sea Loans to cer- ' tain wholosiilo lakr-^ and rivers, or to any wholesale purcdiastT or shipper of live j,„r(,i,„j,gr3 or Rtui'k or dead stock, and the product thereof, uixm the security of shippers, such products, or of such live slock ur dead stock, and tlie products thereof ; 3. Such security may he given hy the owner and may he taken in Form of the t'oiiii set forth in Schedule C to this Act, (l)or to the like ell'ect ; rity. secu- (1) SCHEDULE ':. FORM OF SECURITY UNDEH SECTION SEVENTY-FOUR. In consideration of an advance of dollars, maile hy the {name of batik) to A. B., for which the said hank holds the t'lilhnving bills or notes (describf/ulli/ the dilLs or note held ifauij) theirouds, wares and merchandise mentioned h'.dow are hereby assigned to the said bank as security for the payment, on or before the day of of the said advance, together with interest thereon at the rate of per cent, per annum from the day of {or, of the said bills and notes, or renewals thereof, or f^ubstitution therefor, and interest thereon, {or an the case may lie). This security is given under the provisions of section seventy-four of" The Bank Act," and is subject to all the provisions of th';said Act. Tiie said goods, wares and merchandise are now owned by and are now in possession, and are free from any mortgage, lion or charge thereon, {or as the case man ^^^> ^^'■^ "■'''' '"^ {place or fhcea inhere goods are), and are the following ; {particular descrip- t'm.'i ofqoods assigned). Dated at 12 178 The Bills of Exchange Act, 1890. jja When such se- curity may bi; acquired. Exclian;rc of wliiin'liotise lull uf liiilinj,' 111 ;, wares und nn'r- and by virtue of such security, the bank sliall acquire the same rights and powers in respect to t lie goods, wares and iiiercliandise, stuck or j Midnets covered thereby, as if it had acquired the same by virtue of a wareliouse receipt. 7/T. The l)ank sliall not acquire or hold any warehouse receipt or bill of lading or security under the ne.\t preceding section to secure the paymenluf any bill, note or debt, unless such bill, note or iJeU is negotiated or contracted at the time uf the acquisition theretif bvtlie bank, or upon the written proiiiise or agreement that such waieli'uii>e receipt or bill of lading or security would be given to the bank ; Imt such bill, iRite or debt may be reni'wed, or the time for the piiyincut thereof exti'uded, without i ''ctingany such security ; 2. The bank may, on sh,i)meiit of any goods, wares and merchan- dise for which it hold- a warehouse receijit, or security as afVircsanl, rooeijit for bill surrender such receipt or security, and receive a i)f lulling and c" change therefor, or, on the receipt of any good: vice versa. chandise tor wliicii it holds a bill of lading or security, as afure.siid, it may surrender such bill of lading or security, store such goods, wares and merchandise, and take a warehouse receipt theiei'ur, or may ship them, or part of them, and take another bill of lading therefor ; Pennlty for '■^- Everyone is guilty of a misdemeanor and liable to imprison- niuking fiiLso iiieiit for a term not exceeding two years, who wilfully makes any false stiitement. statement in any warehouse receipt, bill of lading or security, as aforesaid ; I'onalty for 4. Every one is guilty of a misdemeanor and liable to imprisomneiit alienating for a term not exceeding two years, who having possession or control uf goods so se- any goods, wares and merchandise covered by any warehouse recei|it, cured. bill of lading or security as aforesaid, and having knowledge of such receipt, bill of lading or security, and without consent of the hank m writing, and before the advance, bill note or debt tlu'reby secured has been fully jiaid, wilfully alienates or parts with any such good-, wares or merchaiulise, or wilfully withholds from the Lank possessim; thereof upon demand alter default in payment of .sucli advance, bill, note or debt. As to goods 7($. Ifgooiis, wares and merchandise are manufactured or pro- ni ;m u file tu red duced from the gooils, wares and merchandise, or any of then from articles pledged included in or covered by any warehouse receipt, or security. jrivfii under section ^eventy-four of this Act, while > holding such warehouse receipt or security shal () covered, the oanlc : hold or coiitiiiiic \o liold such gooils, wares and merchandise, during the process uiulat'tir the completion of sudi maiiufactur" or production, with the same right and title, and for tiie same purposes and ujion the same comli tions as it held or could liave held the original g(Jods, wares and nur- ciiandise. Prior claim of '^'^' '^" !^'l^"i"ccs made on the security of any bill of ladingiT the bank over warehouse receijitjor security given under section seventy-fonrof tlii- unpaid vendor. Act, shall gi\e to the bank making such advances a claim for the repayment of such advances on the goods, wares and merchanidis' therein mentioned, or into whi and by preference over the claim of any unpaid vendor; hut smli preference shall not be given over the claim of any unpaid vend"r who had a lien upon sucTi gooils, wares and merchandise at tli( time of the acquisition by the bank of such warehouse receijit, bill f' lading, or security, unless the same was ace .Ilk ; Init payiueiil nerchau- liVirt'sivnl, iiilmi: ill iUld llli'l'- ifuro^iiid, cvot'or, or of laJuig 78. Ill the event of the iioii-i)!iym(MU iit maturity of iiny debt HPOiireil l>y a Wivrehouso receipt (jr bill of liuliiij^, or sei.urity given uinior section seventy-four of tliis Act, tiie hiini< may sell the gooils, \vare< iunl merchamlise mentioned therein, or so mucli tliereof as will -nllii'o to pay .luch deht with interest and expenses, returning tiie overplus, if any, to the person from wliom sucli warehouse receipl, or bill of lading or security, or tlie jfood.s, wares and merchandise ineiitioiied therein, as tlie case may he, were ac(]uired ; hut such power of sale shall be subject to the following provisions, namely : 2. X(i sale without tlie coiisent in writing of the owner of any tiiiilier, board-;, deals, Htaves, saw logs or other lumber, shall be made iiiuler this Act until notice of the time and place of such sale iias heeii given by a registered letter, mailed in the post othce to the la-^t known aldi'e>s of the pledger thereof, at least thirty (hiys prior to the siiletliereiif; and no goods, wares an^ of his signature, and his capacity and autho- rity to draw the bill ; (2) In the case of a bill payable to drawer's order, the then capacity of the drawer to indorse, but not the genuineness or validity of hia indorsement ; (o) In the case of a bill payable to the order "fa third person the existence of the payee and Ms then capacity to inlorse, but not the genuine- ness or validity of his endorsement. §54 Sm|p of gooils oil iioii-piiy- uieiit of debt. Notice to be given boforo sale of goods pledged. Sale by unc- tion after notice. Liability of acccpcur. 180 § 55. Linbility of drawer. The Bills of Exchange Act, 18'J0. See sections 24, 26, 31, 55 and 59. 1. Wliere a bill is drawn l»y a person signing ns agent of a com- pany \\\m>u a defendant who accepts the bill, the acceptance admiif the signature of the agent and his authority fruni thecunipany toiiniw tiie bill. It also precludes the setting up id" any legal nljectiuiis to the (•(iinjH)sition or description of the company w tiii'ir abilit}" to draw the lull. iJank of Montreal i\ l)e Lalre, f. C, 5 Q. 15. 'M:i. See notes under seciion 55. If the drawee or accei)tur pays a forged cheque or hill, the lo.sH is his own and he cannot recover from the drawer. 2 Pard. 202, 268, 340, 341, 345. Paris, 15th March, 182G, cited in 1 ncdarride, 21)9. 2. Where the drawee has accepted, after it had been disconntcil, a bill payable to the drawer's urder, and forged lioth as to the si;:iiii- tiire of the drawer and his indi>rsemeiit. Held, that tiio acceptor was en tided to recover back the amount he had paid to the bank who discounted the bill. (). 11., 12 Q. B. 1). 3'J. In appeal the court was ecpuilly divided. Kvan /•. Jiank of Montreal, 14 A. U. 533; see uL-io A'agliano v. Bank of England, 2.3 Q. B. D. 243 Robarls p. Tucker, 16 Q.B. "){)(), E.\. ; Garland c. .lacomb, L. 11., , Ex. 216; Burge.-s i;. Northern Bank, 4 Bush. GOO. See section 2l, n. 3 and notes under section 55. 3. A bill purporting to be drawn by A. on B. i.« paid by B. Subse- quently B. discovers that A.'s signature was a forgery. B. cannot recover the money from the holder to wliom he paid it. Price i: Xeal, 3 Burr. 13,')5. 4. C, the holder of a bill, j)ur])orting to be aiicepted payable at a baidv, indorses it to D. for collection. D. obtains payment, and hand.- the mt)ney over to C. A week after the iiaynient the lank discovers that the acceptance was a forgt-ry. The bank cannot recover the monev from C. Smith i\ Mercer, 6 Taunt. 76. Liability of in' dorj't'r. ,!•>. The drawer of a bill, by drawing it: — [o) Engages that on due presentment it slmll be accepted and paid according to its tenor, and that if it is dishonored lie will compensate the holder or any indorser who is compelled to piiy it, provided that the requisite proceedings ou dis- honor are duly taken ; (A) Is precluded from denying to a holder in due course the existence of the payee and his tht'u capacity to indorse ; (2) The indorser of a bill, by indorsing it :— (a) Engages that on due presentment it shall be accepted and paid according to its tenor, and that if it is dishonored he will compensate the .j-^ Liabilities of Parties. 181 lioklcr or a subse(iuent indorser who is coin polled § 55. topuy it, provided that the requisite proceedings on dishonor are duly taken ; {l>} Is precluded IVom denying to ahokler in due course the genuineness and regularity in all res- pects of the drawer's signature and all previous indorsements ; {(■) Is precluded from denying to his imme- diate or a subsequent indorsee that the bill was, at the time of his indorsement, a valid and sub- sisting bill, and that he had then a good title thereto. See sections 5-I- iiii'l oO. 1. If tlic ilra'.ver of a liill puts it in circulation, hearing a for<:cil iii'ldixineiit of the nanicoftlie payee, and tiie drawee accepts ami ]iii\s t(i iihiittn jidc lioliler for value, lie catuiot recover liack the iimiiey paid ; his acceptance is conclusive acknowledjrnient that he iia-^ funds of tlie drawer, and against him he can charge the amount oflheliiil, heca\ise the drawer is estopped to deny tiie verity of the iii'linx'incnt, lloi'tsman r. Henshaw, 11 How. 177. See notes. 2. By indorsing a hill, the indorser admits the genuiiuMiess of the siirnatiu'eof all prior parties and also their competence to si<:n. Kast- \xlnn\ c. Wostley, () O. S. f)') ; Rossi.. Dixie, U. C, 7 Q. IJ. 414; Gritlin r. Latimer, UJ. C, \'.\ Q. H. 1S7 ; Hanscome v. Ci)tton, IT. C, 1(1 (^ H.'.tS; The Merchants Bank r. The N. E- Cluh, U. C, 44 Q. 15. 4t)^ ; McLeod c- Caruran, 1 Han. 592. This section and the previous one need no exphination except Kstoppeia with regiird to estoppels. Under section 54, the acceptor is ,„.^,e,,tor. precluded from denying to a liolder in due course the existence of the drawer, the genuineness of his signature, and his capacity and authority to draw the bill, but he is not bound to know the body ot the instrument. National Bank, of Connueree v. Nat. Mech. Bku'. .\.s., An. 55 N. Y. 211 ; City Bank v. First Nat. Bank, 45 Tex. 2(i;i; Wliite v. Continental Nat. Bank, G4 N. Y. ;\U. If payable to the drawer's order, the acceptance admits only the then capacity of the drawer to indorse. Therefore the acceptor is not precluded from denying to a holder in due course the genuineness or validity of the indorsement, and also the authority of tlu! drawer to indorse, for authority is not syno- U)mous with capacity, and authority to draw a bill does not ucces- 182 The Bills of Exchange Act, 1890. § 55. Parily include authority to indorse. Eobinson v. Yarrow, 7 Tuunt. 455; Preset tt v. Fiiun, 9 Bing. 19. Where the bill is payable to the order of a third person, the acceptance aduiits the existence of the payee and his then capa- city to indorse, but not his authority to do so, nor the gjuuiue- ness or validity of his indorsement. The Act does not sprcially define the estoppels bindinsj; the acceptor when the bill is payable to bearer or to a fictitious person, but it is presumed that they are to be determined by section 54, sub. (1). Where a bill is made payable to a fictitious person or to bearer, it would seem that the acceptor is responsible to a holder in due course, whether the bill be forged or not, stolen or not ; but he will not be liable for any alteration in the body of the instrument. National Bank of Commerce v. National Moch. Bku-. As., 55 N. Y. 211 ; Smith v. Sheppard, cited in Chitty on Bills, Kith ed.. p. 180; Robarts v. Tucker, IG Q. B. fjTlJ ; F rrie /'. House of Industry, 1 11. de L. 27 ; National Park Bank V. Ninth Nat. Bank, 4G N. Y. 77; Bank of St. Albans v. Farmers' Bank, 10 Vt. 1-41 ; Rej. 2 Nivose., An 12, D. 4, 1, 32(5 ; Rej. 10 Nov., 1829, D. 29, 1, 884. " The instruments in question," .said Lord Cotton, L. J. , in the case of Vagliano v. The Bank of England, " were not therefore payable to bearer, ami the bank, having paid upon forged indorsements, mast, in the absence of any other ground of defence, take the consequences." 23 Q. B. 1). 243. See notes under section 30. Section 54 seems to settle in favor of the acceptor the conflict which divided the Court of Appeals of Ontario in the case of Ryan v. The Bank of Montreal, for under sub-section (2) if a bill be payable to drawer's order, the acceptor is not pncludcd from denying tlie authority of the drawer to endorse, nor the genuineness or validity of liis indorsement. Seeti(m 54, sub. (1), also declares that the acceptor of a bill engages that he will pay it according to the tenor of his acceptance, whether he has funds in his hands or not. But what will bo the responsibility of the drawee who has accepted a diamvert, v. g., without funds, by the fraud of the holder who lias not disclosed to him at the time of his acceptance facts concerning tlie drawer, which, if known, would certainly have prevented his acceptance, for instance, the coming insolvency of the drawer ? Of course LiABiLii'iES OF Parties. 183 8 55. ho will be liable to a holder in due course ; but will he be respon- sible to the immediate holder by whom the fraud was praeticed ? Pothior, n. 118, does not hesitate hi answering that he will not. *' Neanmoins, si celui sur qui la lettre de change est tiree, ctill, qui les i'onds n'ont pas ete remis pour I'acquitter, avait ete engag(S a I'accopter par le dol du porteur ou du propriotaire de la lettre, il serait restituable coutre son acceptation et son engagement. Cost un dol de la part du porteur de la lettre, lorsque ayant coiinaissance de la procluiine f'aillite du tireur, il dissimule cette cimuiiissance acelui sur qui la lettre est tirde pour qu'iU'aecepte." Lucre and Persil are of opinion that the holder is not to be blamed for having thus looked to his own intiTest in preference to that of the drawee. Nouguier holds the contrary view. A'auzot and Hedarride make a distinction : if the holder is oni^ , uilty of suppression of facts, he must recover ; if he has made false representations, he should not. The poini has not received jiulicial determination in France, but in England the doctrine of Pdthier and Nouguier has been sanctioned. Martin v. Mor- gan, 1 Ross Lead. C'as. 457 ; Kendall v. Wood, L. R , 6 Ex. 2413. In Martin v. Morgan the question was whether the drawees who had paid a che(jue without funds, in iiiiioraiice of the insolvency of the drawers known to the bearer, could recover the amount back from the latter. Chief Justice Dallas said : " It is a well known rule of law that where a party pays money to another, voluntarily, with full knowledge, or even full means of knowledge, of all the circum- stances of the case, thi' part}'^ so paying cannot recover it back ; but if such payment be made without such knowledge, or such means of knowledge, or the party obtaining payment has sup. jiri'ssni critdin /i(('ts^ or nude frauthilcnt rcpriscntntiona^ the party paying shall recover back.' liilbie (•. Lumley, 2 Kast. 4(i9 ; First National Bank v. Ricker, 71 111.43!* ; 1 Ross, n. (J()3, p. 457; see also De La Serra, c. 10, n. 4 ; Rousseau de Laeoiube, Vo. Let. de Chan., n. 5, p. 407; Rogue, t. 2, c. U5, n. 2il, p. 3(10; Chalmers, p. 195; 1 Nouguier, nn 304, 3G2 ; 1 Bedarride, n. 203 ; 4 Alauzet, 123. With regard to estoppels binding tlie drawer, section 55, sub. Estoppels (I), declares that he is precluded from denying t">g J ' ^ J f^ ilrawer and due course the existence of the payee and his then capacity to indorsor. f im. 184 The Bills of Exchange Act, 1890. ^ 55. m Liability of iudorser. endorse. Thercfbro the drawer may deny the authority of the payee to indorse, and the genuineness or validity ot'his indorscuicut or the genuineness of the body of the instrument. The decision in lloi'tsnian v. Hensliaw, which holds that the drawer is estopped from denying the verity of the indorsement, is consequently uo longer law under the Aet. With regard to estoppels binding the indorser, he is precluded from denying to a holder in due course the genuineness and regularity in all respects of tlie drawer's signature and all previous indorsements. He is also precluded from denying to his immediate or a subsequent indorsee that the bill was, at tlie tiiuo of his indorsement, a valid and subsisting bill, and that he had then a good title thereto. Finally, the indorser engages that, on due presentment, the bill should be accepted and paid according to its tenor, at the time of the indorsement ; and if not paid, that he will pay the same as provided for in sub section n of section 55, Where two or more indorsers or other persons become parties to a bill merely to accommodate some third party, and as his sureties, and one of them pays the bill, their rights and liabilities between tlu'mselves are those of sureties, and must be determined irres- pective of the position of their names on the instrument. Bat- chclor /;, Lawrence, 9 C. B. N. S. 543 ; Small v. Riddell, U.C, 31 C. P. 373; Macdonald v. Whitfield, 27 L. C. J. 165; P. C, 8 App. Cas. 733; Reynolds v. Wheeler, 30 L. J. C. P. 350 ; Mitchell V. English. 17 Ch. 303. See section 38. Batson v. King, 4 II. & N. 741 ; Durac v. Ferrari, 25 La. An. 80 ; Ca.2G Vict , c. 45 ; C. C. arts. 1118, 1955. But the relationship of co-sureties must be understood by the parties either by agree- ment or by inference from facts and circumstances, Fisker v. Meehan, C. C, 40 Q. B. 140; Macdonald v. Whitfield, 5 App. Cas. 733. In Quebec, an indorser or other party cannot demand payment from the principal debtor before paying the bill. Maynard (■ llenaud, 12 L. C J, 293; but ho may demand from the latter to be indemnified even before paving, in the following ca.scs: 1, 2. wlien the debtor becomes when paymc bankrupt or insolvent ; 3, when the debtor has obligt'd himself to effect his discharge within a certain time : and 4, when the deb Liabilities of Parties. 185 -uivties, layraeut ^•nard v- ic lattor ■uses: 1, bt'COUH'S imsclf to the deb Ixcouics payable by the expiration of the stipiihited term, witliout § 56. nuard to the dehiy ^iven by the creditor. Perry i\ >Iihie, 5 L. (". J. 121 ; Desbarats v. Ilaiuilton, 2 L. N. 270 ; McKiiiiion v. Koroack, Ca. 15 S. C. Rep. 125. C. C. art. 195;}. See notes uikKt section 38, p. 1 23. In Ontario, accommodation indorse rs may, after the note on which they are liable has matured, tile a bill against the holder and maker to enforce payment by the latter. Cunningham v. Lystt'r, 13 Chy. 575. 5gal puzzle, not only to bankers and mercantile men, but also to many judges. The solution may not be in strict conformity with the principles of law on the subject of indorsement or andl and suretyship, as they are understoud at least in Quebec. But it must be con- fessed that its simplicity has a decided practical advantage. In Quebec, the (idhI, although familiar to the judges, was often mis- understood by business men, a fact which was ckarly established in the case of Pratt '". Macdougall, and in the Provinces governed hy the English law, the transaction will no longer be open to doubt and even miscarriage of justice. Everywhere in the Dom- inion, a person who signs otherwise tlian as a drawer or acceptor incurs the liabilities of an indorser to a holder in due course, and IS subject to all the provisions rcvspecting indorsers. Ill 188 i^ 56. Aval for in'i'i'|itnr or 111:1 ker. TllK r.ILLS OF EXCHANGK AcT, ISOU. Tho ill III II (11 r iFiiiud or j:;uur;int(ir Ih'Iiil;' only ri'spmisihlc as imlorscr, his iiidorscmcnt creates no dltli^'utioii in lii\ or uf prior parties to the bill, ami is solely for tho benefit of those who taki' it siibseijnently, as laiil down in Steele i\ McKinlay and otluT cases cited by Lord Blackburn, at pane 772. Therefore, if a third party, before delivery, indorse a bill payable to the order of the drawi'r, as in the ease of Stt'elo i\ .Mi-Kiiday. he will be held liabli- not to the drawer, but oidy to the partit's subse((uent to tho hitter. To hold hiui liable as the j^narantor of the acceptor would recjuire another operation entirely extrinsic of the bill The nviils or i;uarantors, being indorsers, will be responsible like ordinary indorsers to third parties interested in the bill ; but proof, when it is adniissible, may be adduced to show, that bet- ween themselves it was intended even to invert the jiosition and liabilities assigned to them by the bill. Macdonald v. Wliittiuid, 17 A pp. Cas.^7:};i Section 5G declares that if a person sujii a bill otherwise than as a drawiT or acceptor, he will thereby incur the liabilities of an indorser to a holder in due course. But will a third party to a bill, wlio merely signs his name innnrdiately below that of the acceptor, be held responsible as an indorser? By the law merchant of England which has been rejiroduced in the Act,(' a bill must be accepted by the drawee, or failing him, by some one for the honor of the drawer or indorser, and no one else can become a party quii acceptor except under these circumstaucos. It would seem, therefore, that under the iMiglish law and the Act. a third party who tiius signs his name immediately ))o low that of the acceptor cajuiotbe held liabh' as an acceptor. To hold him liable as a guarantcu' of the acceptor, it would be necessary to have some writing to that effect signed by himself for a separate consideration, a proposition which is fully recognized in Steele ij. McKinlay. But u!ider section 5G, can he be held liable as an indorser to a holder in due course? I'robably he may be, he being neitherau acceptor nor a drawer, and the Act making no distinction as to the other parties who sign the bills. The signature may be attached anywhere on the bill. Jiut will the guarantor or aval, who signs his name immediately (1) See sections 3, G, 17, 65, GO, LiAniLiTiP:s OF Parties, 180 below that of tlio drawt-r of a bill or tht! maker of a note, be § 56. trcaud art an imlorscr»»i' u.'^ a drawer or maker ? Lord Watson Slid ill Stei'le r. McKiiilay, that there is obviously no priiieij)le of the law niereliaiit whieli can prevent any numlKT of pi rsoiis bccouiiiiu' bou'id as promissor alonj^ with the original grantor of the nnto. Tilt! Act has emlx.died this doctrine in expri'ss terms in section S4, which declares that where a note runs "I j)romise to pay," and is sij^ned by two or more persons, it is deenuM] to be their joint and several note. Creighton v. Kretz, U. C, 2(i il. B. G27. It would seem clear thereby that the guarantor who merely signs his name at the foot of a note can be charged as a maker. But will the rule bo the same with regard to a bill of excliiuige ? The Act has no similar provision with ri'gard to this iii>truinent, and likely the maxim exprcasio unius v.ielusto (St utterlux would apply. Moreover, section 3 detines a bill of exchange an order, '' addressed by oue person to another, signed by the person giving it." Can it be argued that the guarantor who merely signs his name Aval for below that of the drawi'r, al'ter or even before the issue and deliv- ery of the bill, is the person who ('t^s'f.s, siyits and (jivi:s the order y Probably, tiierefore, the guarantor of the drawer does not occupy the ])osition of a drawer, and must be treated as aa iiiddi'scr. In the Province of Quebec, where the aval is fully recognized by the common law, can a third party, who signs on behalf of the acce[)tor or drawer, be treated as a guarantor or domicur d'av il, and as such entitled to no other diligence but that riMjuired airainst his principal, especially if he adds some woi'ds indicating that he is only a guarantor, v. (/., Bon pour aval. It seems at least doubtful whether the common law of Qui^boc has not been altogether repealed by the Act, with regard to the doniitiir il'dV'd. Section 5(J has created him an indorser, and woulil be prudent to treat liim as such, and give him notice of protest even when he ap[)ears to have signed tor the drawer or the aeeejitor. To avoid misunder.standing and surprises, therefore, it would be advisahh' that in all cases throughout the whole Dominion, every signature on a bill other than that of the drawer or acceptor should 100 Tllli hlLLH OF EXCHANGK AUT, 1890. ^60. Ill :' ITS (iiijirinitcM' of bill.-. stri(!tly be rojj;iir(l('(I as that of an iiulnrHcr entitled to iiotlco of tlislioiior and in Quebee to jjrotest and notiee of protest, uulcss the hitter are waivul by hitii, by writing over his si^fiiaturt', in Qnebec sueii words iis '' dilij^enee waived " or " protest wuivrd/' or '' withont protest/' and in tlic otiier provineew, " without pif. Bentuient '' or dilij,'euce waived." In all cases where a bill is indorsed by an aval, the lioKlur should be oarofiil to indorse it by putting iiia name nfter tint of the aviif. Section f))! apjilies only to a ln)ldi'r in due course. The law is D't chanjiid as between the iuiincdiiite partie.s. A.s to what is a holder in clue course, see seetions 29 and 30. Of guar nut ee of bills upon the instrument. — By a collateral and independent agreement, written and siniud in accordance with the Statute of Frauds, which is in force in all the pn»vinces, a third party may uiiarantee the jjaynient of a bill, either in i'avor of oni' or of all the parties who may become hold- ers. Steele y. MeKinlay, 5 App. Cas. 75; iMaedonald t'. Whit- field, 8 ibid. 73;J. This "jjuaranty may bo given upon a copy of the bill as well as upon the ori<;inal bill or a part of the set, if drawn in a set ; it may also be written on an (fllouijr, which under section ."^2 of the Act, is deemed to be on the bill. Mc- Laren V. Watson, Ex'rs., 20 Wend. -i3U ; Fell on Guarantees, 2ii(| Am. ed. 185J), p. 317 ; Story on notes, p. 317 ; Savary, vol. 2, Tariire 14, p. 9-4; Parcirc 37, p. 259; Pothier, Contrat de Change, n. 50, p. 1-44; Guyot, vo. Aval; 1 Nouyuier, 313; Pcrsil, 224 ; Locre, art. 142. In Ontario and the other provinces governed by the English law, some consideration for the guaranty, given after delivery of the instrunu'nt, must be expressed. Palmer /;. Baker, U. ('., 23 C. P. 302; Walker v. O'Reilly, U. C, 7 L.J 300; Goodc, Martin, 5 Otto, 90; Leonard v. Vredenburg, 8 Johns. 29; Hall V. Farmer, 5 Denio 484 ; Benthall v. Judkins, 13 )Ict. 265 ; Grossman v. May, 68 Ind. 242 ; Williams v. Williams, G7 Mo. 661 ; Bebee v. Moore, 3 McLean 387 ; Green v. Thorton, 4 ib. 230; Joslyn v. GoUinson, 20 111. .61; Howard w. Jones, 10 Mo. App. 81. It has generally been held in England and United States that a guarantee is a waiver of demand of payment and notice. McLaren LlAMlLITIKH OF rAHTIKS. 191 Ex'fh. ,'. Watson, 2<) Wind. 42.') ; Footc v. Hrowii, 2 McLi-an, ^ 56. 3(i!l; Truo r. Hanlini;. 12 Me. UKi; Ilitclicctck r. Iluiiiphify, (JSi-ottN. K. 540; Walt.m I'. iMuxall, KJ iM. it W. 72, -152 ; Tiivlor r. lloHS, 3 Ycrj;. 'MU); (jtrcciiu r. Thonipsoii, 3;i Iowa 2!);{i Hrowii '\ Oiirtisrt, 2 N. ¥.22.'); Allien i\ l^i^litiu'orc, 20 Johns. ;{G5; Murray c. King, 5 B. & Aid. 1()5; 2 Randolph, § SSO, 8iS() ; 3 itl. 1208-1210. Several precodcuts can however bo citi'd whero a ditt'orent rule was laid down, as, for iiihtanct!, in (j.'ldic V. Maxwell, U. C, 1 Q. B. 425. It is prudent, it' not alisoliitcly nece8.'5 484, anl opposed on autiior ty m 2 Parsons, 133, 134, and 1 Kdwards, i^ 314. Mr. Justice Story thus sums up tlie American jurisprml m;,; on this point : " In case of separate in.strument of j:,uaranty, at least wliere it is not expressly stated that the guarantee sli.ill be negotiable it seems clear that the guaranty is to bj limited to the very person to whom it is given, or with wikhu it is just contracted. The same doetritie has been applinj where the guaranty contains the name of no person on it. t) or with whom it is made, for then it will be coiistiued to bo- limited to the first person who takes the note and adv.incs money on the faith of the guaranty, and it will not be deeiihl to be negotiable." Story on notes, § 4S1-, G33; see also F/11 on Guaranties, 2ud Am. ed. 1851), p. 317. It would seem under the ruling of Steele v. McKinlay, 5 App. Cas. 75, that the law is the same in Englind. In France and througliout Kuropi', a differ Mit priiicijilo has been adopted. Article 142 of the Codede Commerce says: " Cette garautie est fournie par un tiers, sur la lettre memo ou par aete st^pard." Hut this was not permitted before ho promulgation of the modern codes. The ordinance of 1(573 has tlius laid down the old law of France, which is also the coiuiii m law of the Province of Quebec. Article 33 says : All who iiavo put their (/«f(^ upon bills of exchange, " .s«r dcs iHtro': d>- chaiuje," shall be liable jointly and severally, etc., etc. See Paris, l,)th March, 1872, D. 73, 2, 24 ; Cass. 18th May, 1813, D. 13 1, 324 ; Cass. 2 1th June, 181(5, D. 16, 1, 324 ; Cass. 26th Jum-, 1818, 1). 18, 1, 264; Rej. 30th March, 1819, J). 19, 1, 358; 1 lU-dar. ride, 543; Req. 22i.d Febry., 1869, I). 09, 1.515; Cass 21st April, 1869, D. 69, 1, 4(l7; Dunkerque, 17th November, 1874; Donai, Journ. dc Marseille, 1875, 2, 7. A guarantee on a separate paper is no portion of the bill, and is an agreement altogether outside of the same, and tlierefore not negotiable, though made payable to order or to bearer, unless perliaps in Qiiebec it would come within the meaning of article 1573 of the Civil Code: "Notes for the delivery of grain or other things, or for the payment n/moin'i/i and payable to order or to bearer, may be transferred by endorse Liabilities of Parties. 193 mont 01' Ji'livory, without iiiitioD, whothcr thoy are payable § 57. absoiutt'ly or subject to a couditlon," See ^2 llaiiJolpb, §.^sGO 801; Laiuoureux «. Hoy, 18 R. L. fiSO. Wliou the guarantee is on a separate paper, presentment for [layiULMit, protest or notiee of protest, are not necessary. A special consideration is also required by the law of all the provinces, except (Quebec. The guarantor is an ( •■try ciiitiHi or surety. 2 Randolph, i^Jj 8.5(), 8S0, 88G ; 2 id. 1 12il>!-1210. Steele v. McKiniay, 5 App. Gas. 75-4; Quebec Civil Code, art. 1929. 57. Where a bill is dishonored, the measure of ^^^'^''"""f damages dainau;es wliich shall be deemed to be liquidated •*«'0"stpa,rtiei o -^ to disbunoreu diuna^es, shall be as follows: — b>ii- ((() The holder may recover from any party liable on the bill, the drawer who has been com- pelled to pay the bill may recover from the acceptor, and an indorser who has been compelled to pay the bill may recover from the acceptor or from the drawer, or from a prior indorser — (1) The amount of the bill ; {'!) Interest thereon from the time of present- ment for payment, if the bill is payable on demand, and from the maturity of the bill in any other case ; ^'^ (3) The expenses of noting and protest ; {h) In the case of a bill which has been dis- honored abroad, in addition to the above damages, the holder may recover from the drav/er of any indorser, and the drawer or an indorser who has been compelled to pay the bill may recover from any party liable to him, the amount of the re- (1) Cleroux c. Pij'eon, 33 L. C. J. 23G. 13 194 The Bills of Exchange Act, 1890. 4^ 57. exchnn":e with interest thereon until the time of paynient.*^^ Si'e also sections 9 (d) and 71 (d). Interest thereon from the inuturitij of the hill. — 1. TlioiTtorc, the rule rocoiitly luiil down by the Court of AppoaL^ of Ontario, //( ;r McDougall, 12 A. li. 211"), tiiat an indurser wliu hail waived protest, was nut responsil)le for interest, tlie note nut iia\ iii.r been iirotcsted, is chiinged by the aljove section. 2. Interest made pavable by a note is j)art of tliedelit. Cnnise c Park, U. C, ;U,). 15. iris ; Cuiiira Kalley r. Ilnniphrt'y,!'. C, ;{7 Q. B. 514 ; St John v. l{,ykert,4 A. K. 21.'!. Sectiun iu lias aihjpted tlie ruliiii; of the first case, and has intentionally omitted snbsectiun (.">) lif section 57 of the Knglish Act, which jiractically leaves the (piu.-titin of interest to the discretion of the conrt. H. Interest is recoverable on a note at the rate specilied in it, Ikw- ever exorbitant it niav be. Rowland c. .Fenninizs, U. C, II C. I' 272; Young r. Flnke,'LI. C, 15 C. P. aOO ; O'Connor d. Clarlc, 18 Chy. 422. See notes. 4. A note discounted by a bank at a larger rate of interest than aliowi'd liy law, may, nevei'thelcss, be recovered on by thenr Ciiu- incrcial Baidc r. Harris. U. C, 2(i Q. B. AHf; Hank of Montreal i;, Scott, I'. C, 17 C. P. ;{5S; Ca. 2'J and ;U) Vict. c. lU, s. 5 ; ;!4 Vict. c. 5, ?. 52. See notes. 5. Corporations other than baidcs and loan societies, iroveriied hv Hpecial enactments, may charge the same I'ale of interest as pri'.iuo individuals. Curjiuratioii N. Gwillindmry c. Moure, U. C, 1.') C. 1\ 445. See notes. (!. The Con. Stats. T. C, cha[). 42, gives damages on the usual protest for //'i/*/»'/////i!''/(/ of bills of exchange, Itut damages caiumt Le claimed under the statute, by rca-on (jf the iion-uccrji/inicc f.>i' fwAi bills. I!aid< of Montreal f. Harrison, V. C, 4 C. P. ;5;!1. 7. A promise to pav with interest mean- interest from the dale of the nott". liaxter r. llobinson, 2 li. de L. lii'J. 8. Hut a prunuse to pay " jL'21I0 with six months interest " nieans oidv SIX months interest before service of process, lleaviside r. Munn, 2 It. de L. 4;i!». !). In di'l'ault cases, interest runs on notes payable on demand froni date. De Cliantal r. I'ominsille, (i L. C. J. 8>i. Otherwise by .-ac- tion 57. See aleitions 10 and 45. The 'xpt'ii.s'fn (ifnii/ini/ a in/ protest. — 10. The costs of notice of prote-^t to the nrals and to hrnn'r cannot be allowiii, as unnecessary. The I'idon Hank i'. Oibeault, 12 Q. L. II. 145. Otherwi-e by section 5(> a^ to (irals. 11. The indorser sued together with the drawer, but who lm« pleaded separately, though by the same attorney, is not respoUMbie tor the co( ri'-c\cli;in.:!'i', and not interest ;i- uli'wed liv t lie laws (if the count rv where the hill was drawn or i,unliii--any of .Siilney c. ('uinniercial I5ank of Siiutli Au-^triiha, .'!(! Ch. 1). 022; 5 L J'. .'59."); Boyce c. Jvlwards, 4 l\'ler~, 111. ^^'i' iil>o section 71. IJ. AciuMi iin sterliiiLr hill drawn hy ))laintitr~ in 1 . mlon, upon lict'i'ii'lanl-^ in L'pper ("ana la, ai'ceple I hy defendants iti ijonilon. (one oflliiMi hein;r al the time in Iit he calculated at the rale on ;he day of iimturiiv. without reference to the rale of exchan'j;o at the time of tli • trial. 'T It! aiiv other lime. .ludsoii c. (irilHn, l'. C. I'IC. i'. ;!.")(); Whiter. III. kii. r.(J., 1.") C. V 2112; Hircloeid r. Smith, 1.. U. C. P. :i.").!. i'lie pi'inciple liiis heen re/ojni/ed iu section 71. suhsect. (.1). S>raNo sectiou i) (./). See aNo 2 i»ardessus, :;2:! to ;;2'.t. ruder tlu' ( 'ontiiuMital Cocl's, r>'-e.Kclian,L;'e arises only on dis- Re-oxeli.ange liiinnr hy iioii-payin>'iiL ; but under tlic lOii^lisli law and section .")7 (il'tiio Act, it is duo on dishonor hy noii-aecoptanci! as well as (Ml dishonor Iiy non-payment. Suse i\ INiinpc, S (.'. B. X, S. fidli ; and c;oii.se(|uoutly tlii' Ontario decision in tlu' l>aiik of .^luiitrral r. l[arri.soii cannot ho coiisidi'rcd to uppty any longer, if it ivi r em'it ctly cxpres.sed the law. Foriiiirly, it was :>lso tliouiiht tliat an acceptor was not liahle fur re-exchaiiL;('. Napier o. Schneider. 12 East. 420 ; Woolsey r. Crawt'or 1. 2 ('omp. 415. Hut under more recent decisitms, tilt' contrary dootrint; lias prevailed in England. \]\ part^'. lloliarts, KKi. \i, 1). 702. IS Q. B. I). 2S(; ; re General South Am ric in Company, 7 Cii. D. ()."{7. In tlio United States 1 ke- «isi', tlie ace -ptor of a bill is not in iieiujral liahle tor re-e.\oiiaii:.ie, •^ Uaiululph, J^ 1714. Under section ;')", suhseoiion (/>), tlie ac'coiit'ir is not liahle for ro-oxciiange to the holder, hut he is to tlioilrawer ov an imhu'ser, who has been coiupellod by thv IioUI.t lii pay the bill with re-exchange and interest, for under the ''iimc section the holder is entitled to re-exchange and interest fi'om the drawer and any indorser. See (t »/«.', p.p. 14 15, 1(J, 23, 24. 106 57. Interci't ami usury laws. TiiK Bills of Exchange Act, 1890. The operation of " re-exchajige " is thus explaiiiod by CliiiD. cellor Keut, in his '' Commeutaries," vol. 3, p. 115. " The engagement of the drawer and indorser of ever\' liill is, that it shall lie jiaid at the pn>iicr time and place; and, if it he iml, the Imlder is entitled to indrMiiuty fjr tlie k)ss arising fnmi tiiis Iwciicli dl' ixuitract. Tliegeiifial law merehant of Kiirupe authorizes ihe liulder of a protested hill immediately to re-draw from tlie jilace where the liill was payahle, on tlie drawer or iiKKir.sfr, in order to reituhiirse himself for the principal of the hill protesteij, the emitiii- gent expenses iUteiitling it, and the new exchange winch lie pavs. His indemnity requires him to draw for such an amount as will luakt' good the face of the bill, together with interest from the time it uii^'ht to have been paid, and the necessary charges of protest, postage, iiml broker's commis.sion, and the current rate of exchange at the |ihicL' where the bill was to lie demantled or payahle, on the place when' it was drawn or negntiated. I'he law dues not insist upon an actual w- drawing, but it enables thelKilderto recover what would be theprii;e of another new bill at the place where the bill was dislionored, or the lo>s on tiie re-exchange; and this n does liy giving him the face ( f the protested hill, with interest and the necessary expenses, incliiJ- ing the amount or price of the re-exchange." But is section 57, sub-section {/>), with rej^ard to ro-oxch:iii,'c to be apl»lied to a promissory note Wiiieh has b •t!u dishniioivd abroad. For instance. A., in Montreal, gives his note to li., pavalije in ]*aris. Can the holder charge re-exchango ? In the time of Pothierand Dupuy de la Serra, such a note was called a hilirt de cki HI ge, and looked upon as equivalent to a bill of exriiaiii:t'. Under the modern French code, tiiis notJ is called l/i/ht a ilmul- ctV^", and is also held by the best authorities to b.; subji'cl n I no regulations applicable to bills of exchange, as far as pneticiihle. See Bt'darride, V(d. 2. |). X'l'l, where all the authorities are col- lected. Section 8S (U-elares that ihe Act shall appiy. w.lli i lo necessary luoditications, to promissory notes, with the vw p- tion of some provisions which are sjieeitied in subsection (!{).hat which do not comprise those relating to measur • id' daiiiiufs on foreign bills, and espeeiady re-exchange. It would se m, therefore, under both the common law and the Vet, tliat ro- exchange can be charged upon a ibrei^n dishonor/ I note; ami, as a rule, merchants do charge this ro-exeliaii:v in drif'ts which arc drawn to retire a note dishonored abroad. Usury laws have been aboli.shed in Canada, ex'-epi with riuarJ to banks and loan companies, ami even in respect of t lie la i;cr the old penal clauses have been repealed. Rev. St. (>an . c. 1-7, as amended in ISUO by 53 Vict., c. 34. Section 1st dftlie LlAIilLITIES OF PAltTlKS. 197 Ri vis'il St:it\itt^ says, tlvit U'ili>ss specially prc-rrilxMl l.y tli ■ ^ 57. saiil Act or any olhor Act (if the Parliaiii'iit of (y'anada. any pii't session ol' Parliament, certain restrictions were imposiM) u])on cor- piinitions in (Quebec and Ontario, which were removed by the aiiiriidnient Act, 53 Vict., c. 31 ; special rcL'ulations were also to biajiplieil to Nova Scotia. New Biimswick, liritish Citlu'nbia and riMce Kd\v;ird Island; but at the last session, they witc repealed, and except as to banks and loan companies upon real estate, which arc retiulated by special charters, tlu! usury laws wih nrii'd to bills and notes are summed up in the above first and seci'iul sections (if tlic llevised Statutes of Canada, c. 127. Sec fni^.pp. 23, 24. Duriin:' the last session of the l*arliamenf of Canada, a new Baiikiii''- Act was pas-i(Ml called '• The Hank Act." 'h\ Vict. ... ' c. ill. which comes into force on tho 1st July, 18'Jl. Section SI I says : " The li!iid\ slia'il net be lialile to incur any penaltv oi- rorfcitiirc fur u-ui\ , and may stipnlate fur, lake, re-^ci'vc or exact any I'aie nf inter- est er iliscuiiiil ndt o.\ce('iliii liiirlier I'ate nf iiitirc-i >liall lie recuveralile hy tlie hank ; and flic liank may allnw any rale nf niterest wlnitever upon money deposited with it." See|it)ii Si. " No iiromissorv note, hill ofe.xcliaiiirc orother ncirotiablo stvunlv (iis(;oiin ted 1 iv or nil lorsed, or otherwise as.-iiiine the li iiai iini\, iiri|~ -neh r anv maker, 1 1 rawci'. accentor, nnioiscr, or inijor'^ec tliei 1. nr held to lie xoid. nsnrioiis oi- laiiitcd l.v iisiirv. a-^ di I a Ilk etiici' parly tiici'clo, or /(o/^J /////^ Iioiilcr ihcreof, nor sliall any pii!i\' ■to lie siiliject to any peiiahy or forfeiture liv rea-on dt'any tlicr (it iiitcre-t taken, stinn laie ale.l or eiveil liv siicli haiiK', on.oi'uitli ri'-|nii to <\n'\\ promissovv note, nil of ('X(,'lianire, orother ncirotiati'c xriiriiy, nr |Faid or allowed liy .'iny party tiiereto to aiiotlier in com- Ji' ii-iitinn for, or in con-^iih'ralion of llic rate ct intere-^t tak'cn or to !■( tiikiii thereon liv sucli haidv ; Imt no oartv thereto, other than the >aiil' 0. S 58. Suction S2 authorizL'.s the bunks to cIuu'ltc certain ci ('turn ^■"i tt t Trnnpfcrrnr by delivery, Liability. f'^os Upon bills payable at any otluT ot* tbcir own places of busi- ness, brandies, or agencies. Tluse tW's, wbieh must be eliar^ed at llie time of tliseoiint, are tit lie ealeulated aecording tu the time tlial the bill has to run, " that is to say, \iniler thirty ihiys. one-eiuiith of one per eent. ; thirty days or over, but uiidersixty d lys, ont'-fourtli of one per c lit. ; si.\.ty days and ovrr. hut under ninety days, tliree-eiiihths of one per eait. ; niiuty days and over, one-half of one per e 'lit." Section 83 authorizes any bunk, in discountini:; any bill/;n)(,j //(/(• j»ayable at any place in Canada, not its own, different fmiu that at which it is discounted, to chariie, in addition to llie dis- eiiiint,an agency fee not exceediiiL;' one-half id' one p r cut. mi tliu aaiount (d the bill. Finally, section 103 enacts, that ''the Bank shall not ehariri' any discount or coniinission for cashiiiL;' any official clinjiie nf the Governiui'iit of Canada, or of any de|iarlnu'nt thiTeof, whether drawn on it.-clf or on another bank." Of eoiirsi; this section does not extend to any oHicial che(|ue of tiie Guvern- meiit of any of the provinces, or ol any de(iartment thereut', which is to be treated like an ordinary cheque. *t.s. Where the holder oCti l)ill pnyjible to hearer negotiates it Uy delivery without indorsing it, he is called a '' trtmslerror by delivery ; " (2) A trjuislerror hy dc'li\ery is not liable on the instrument ; (3) A trtmsferror by ;lelivery who negotiates a bill thereby warrants to his ininiedijite trans- I'eree, being a hohler lor value, tlnit the l)ill i^ whtit it purports to be, tluit he has a right to transfer it, and that at the time oi" transfer he is not aware of any fact wliich renders it valueless. See sect loll '2.'!. 1. Jt'ahill t)e given in resp(H't ot'an antecedent delit, andiiislionorcil. 'f. the traii.-lVrror bv (lehverv mav he sned on the uiiirinal dcht r. Kvans, 2 i.d. Uavn. ',»;{(»'; Candd^e i\ Alleid.v,(; 15. C.oH'l V. llulluiid, Ca. Iti'S. C. 11. G87. See pu-e 2uf, n. 4. Mitel Liabilities of Pauties. 2. Ill such a crtsc, tlio dclivcrv \vii>» not intomlcd to oporato a f V: an I liiiiil ili-i'liar;!;(' of tlie lialdlity ut' the iraii.xl'error. Van Wart o. " Wli.M,k'y,3 li. ik C.44(j. .S. IJiit tho transforw, in order to avail hinificlC of the al)ovo cxcop- tidii', iiiiHt \i.-(' rciisdiiiihlc iliiii.'cn('(' in onilcavoriii^ to uhtuin pay- iiniit ami in jrivin-j; notici' (if dish(jnor to the tran-^ffrror. Itoj^crs v. Liuiifonl, 1 Vr. & M. (i42 ; Moule i\ 13ro\vn,4 Hiiig. N. U. 'iOd ; RobHoii c (JliviT, 10 Q. B. 704. 4. Hilt 1). changes a banker's note or caches a cheque payable to lifnivr for the convenience of the h lidcr. If the bank ha-^ stopped nent, or the cheiiue l)e di-ihonored, I), can recover the nionev. 199 ?J 58. bllVli '\ Turner r. Stones, 1 I). & L. 122 ; W.M.dland v. Fear, 2(5 L. J. Q. IJ. 'l{yl: Tinnnins r. Oibbin-, IH Q. 15.722. TliefullowiiKj is from ('/Ktlincr.i, p. Is4 ; — 5. C. disconnt.M with D. a bill payable to bearer witliout indorsing il. li t urns t)iit that, unknown to C, the amount of the bill had been •aiMiUen tlv ult'red hv a previous lioldcr. D. can reiMver fron ilif 1 iioiiey he |)aid. .(ones r. Hyde (H14), 5 Taunt. 488 ; Cf. Hurch ticM i\ Moore (1854), 2:5 L. J. g. H. 2(il. (I. \ /*/// /(/•o/i-(-/' discounts with a bank a bill indorsc(I in blank bv tlic payee. Tl le iiiilorscr al)scoii( aiK I tl le siL'iiatures of the drawer acceptor turn out to be forLceries. Tlie bank can recover the inniny iliey paid from the bill broker. Fuller t\ Smith (1821), H- Si M. ID .Vii iiL'eiit gets a bank to di-jcoiiiit a bill drawn and indor-ed in liy his principal, and then pays over the money to his principal, nature of the acceptor was a forgery, but the agent did not laiilv lie Sl.r kii'iw it. The drawer fi The bank cannot recover from the airent. Ilrcc iarte Mini (bsf)!), 4 De (}. iV: S. 27;{. l\w honu thh holder of a bill |)iirporting to be drawn by A. pted by H., ami indorsed in blank by C, discoiints it with a Kcr. Itt urns o lit that the sii:natures of .V. an 1 IJ. were forifenes. aipl that C, whose indorsement was iienuine, is insolvent T l.;i!ik W er can recover from the holder the monev he I iai< 1. ( le ruriiev i\ nil ersley (18-)!), 24 L. J. Q. 15. 4ti ; Merriam v. Wolcott (If^til), s.j .Miivsicliiis. \\. 258 II. W len tho transferee discovers the defect in the bill, he mn-'t r"|iiidiate the tran-acti' m with reasonable diligence. Poolev c. Brown (Hi;2), ;;i L. J.C.1M34. 200 The Bills of Exchange Act, 1890. Di8«liarge by luiymont. Pnynieut in due eours^u. I'iiyincnt by (IniwiT or in- dorse r; its etieut. Accomtnoda- liuu bill. Discharge of Bill. 511. A bill is discharged by pnyment in due courje by or on behalf of the drawee or acceptor: "Payment in due course" means payuR'nt made at or after the maturity of tlie bill to the holder thereof in good laith, and without notice that his title to the bill is delective; (2) Subject to the provisions hereinafter con- tained, when a bill is paid by the drawer or jin indorser it is not discharged ; but (') ((() Where a bill payable to, or to tlie oruor of, a third party is \r,nd by the drawer, the drawer may enforce payment thereof against the acceptor, but may not re-issue the bill ; (h) Where a bill is paid by an indorser, or where a bill payable to drawer's order is paid by the drawer, the party paying it is remitted to his former rights as regards the acceptor or ante- cedent parties, and he may, if he thinks fit, strike out his own and subsequent indorsements, and again negotiate the bill ; (3) Where an accommodation bill is paid indue course by the party accommodated, the bill is dis- charged. See sections 28, 36, 54. See note?. PAVMKNT. ]. Payrnont liv a banker is complete when the money i.s laiil on tk counter. Chan{ber.s v. Miller, 32 L. J. C. P. 30. (1) See section 37, n. 3. DisciiAKGK OF Bill. 201 2. As towliiit constitutes piiviiiciit iK'twccn liankor-, uIiitc tliiTi' is ^ 59- a I'ltiiiiiij.' lio'i"''-'- Sec infra, ti. til , piiL'c 2IIH. ;i. Tin' lii'MiT is not olili^'cil to acci'iit piirt paynicnt ; Imt if he docs, till' liill will \x' (iiscliiiri:c<| pra titiito. (Jnules v. Key, C. li. it Ad. 3115 ; t\K,k V. I.istcr, I.. J., :{2 C. P. 125. I. I'avrncnt liv clic(|iic or hill is no |ijiyinciit, if dislionort'd. ID 11* 1„ i;(i;'('iirrii' /'. Misii, li. K., 10 K.\. li;:'{; CoIk'H c. llfilc, .'I Q. i!. !)• 371. Cliiilnicrs, '^(IS; Cor|). des Clniti-s dc Kiii. N. U\\). St'e s. ')S, ri. I. ;"). I'iivnicnt must he niiulc at or aftiT niaturity. l{urliridu;(' v. Man- 'J Can ). 194 ; Hi'anniont o. Gmitlioud, 2 C JJ.ID I. Section .')D, IlCf- siili->( SCL't. 1. I). I'avnu'nt liv tlic aci'0|(lor licforc maturity opciatfs as a nuTo ]inr cliit-f of till' instrument, and he nuiy a;:ain ne;:oliate the same at an time, hiU not at ur after maturity, .\torley v. Culverwell, 7 M. it V 171 ; Attenhorouj'li v. MacKen/ie, 25 Ij. "J. H.\. 214. Sec s. 'M\. I tii; III (Jiu'liec, payment must he jnoved aeeordiiijx to tli a us of illMl uml jiarol cviilenee i,- \ V mlev 10 ra. 1,. C, li. 255. E.\ecj)t to interrupt prescription. See inf H, Payment of a hill nuidt' in i'onsei|ueiiee of fraudulent repi'eseiila- tidiis III' even snppres.^ion of matt'i'ial farts hy holder i-^ invalid, and till' p; '.(•ai iirty jiaym Cas. 457 i: iiiav recover it haeU. Martii 1 ('. iM orvan. Ui isg lewitt r Wat ermaii, 3 L An. 71t); 'J'aylor limkc, 4 id. 10 ; Huldc v. Richer, 11) li. L. GO. See notes under i^cctiou ;").'). 11. A elieipie is presented and i)aid. Directly after the payment the biiiikors discover that the drawer's account was overdrawn. They I'luiiiiii recover the monev so paid from tiie holder of the cheipie. Chiuiihers r. Miller, ;}2 L.'J. C. P. ;5(t. Vnijmcnt 1)1/ the drawee, nccepfor or maker. — 10. In order to vitiate the paynu'iit made hy the maker of a note ll|i|nr-f|'i 1 in blank, had taith on his part mu tlicir iiitur- -1 , . ru'v-, who wrote Au;j;ii-l 27tli I'm' ii >i'iili'in('iil, imt .etiiii;r a-^iile a plcii (■oiiiiileij ii|ioii the aecepiaiiee of ihe n ic tliat tliere ha:ivon liy 10.. pavahle to the plainlill al tlie liank nf i|i.f( cn- eiiiii'<.'iM leii'. ,'uii| daiit-i, who were hankers foi' lioti; II an.l the plainlill'. Xot( to I'l.'s aceoiuil ami ereiliteil lo die |,iaintill. lleM, a pavm irrevocahle. Xi'ilitinu'ule /'. City I'.ank of .Montreal, C, ('., 2(i C. I'. 71. li'i. In an aelion hy the enilor.xco a^iain-'t the aeeeplor of a hill iint nppeariiiij to have heeii ai'icptc'l for the aeeoninindalion of ihe liawcr, n plea of payment hy the ilrawcr i-^ no ijefenre, Mnle-s -hown tu have been made on the ae(;eplor"s aeeoiml and adojded hy him at ilie iiine of payment or -JulHeipu'ritly. IJank of .Montreal r. .Armour, \'. ('.. 9 C. I'. •101 ;(. Tt turn-^ out that th ill wa-* ion Mllil asks to have the hill iriven up to him, when the holder has heeii j'iin This is done. The hill is not dischar^red. C. can sue the acc'|iter. Deacon r. Stodliart, 2 M. it Or. :5I7 ; Thomas y. Fenton,5 U. Si Walter ('..Fames, L. R., E.x. 124. ■'S: pay p. tlie amount and costs to C. in order to y;et the hill and sac on 2.'). C. is the holder of a dishonored bill indorseil in hla riK. DiRciiAUGK OF Bill. 203 It. I', piirt- vvilli till' liill tiii'kr llu' iiiiincssion tliiil I), liii-i |)iiiti it on ^ 59. bcluvlt'i't lilt- iKici'jilnr. The liill IS iiul dii^i^liiir^ri'il. I>. can hiu- tiie — - - (I rii\MT, ,v\\\\ Sinilli (ir (H'llcr. Atiotlior pcr-uii I'f llic -iiiiic iKiiiii' Lrct-* llif liill arni |iri'-ciits il. 'I'hc a.'ccptiir }«v«liini. TIji' liill i-^ lint iliscliar;;('i|. Tlic ai'i't'|itnr is slill liaMf to ihi' real John Smith. (jia\ I's jj. AinerimiM JJaiik, 17 Now Y'luk U. 211.".. ;!•;. A hill iiulorscil ill hlaiik is slolcti. The thief prc^ciit-^ it to till' iici'eptor at iiialnritv, ami ohtaiiis payinent. If the a<'ecptnr- j^ays iiii ill ;^oimI faith the hill is discliurL't'il, for the thief is tlu' ImUer Siiiilli r. Slieppanl, eited Chitty on Hills, lOtli eiL, p. IH(|. 'J7. The iiidi'r..('(' of a hill has uhtaiiied it hy fraud. He presents it at iiiiiliirilv to the iieee|ii(ir, who pav-^ him in ;.'ooti faith. The lull is di-i'hiuvcl. loil.art- r. TiieUer, I(! Q. li. 57(i. \yiii-re hill is jHiiil III/ Hk: ilntwi'r or iiiilnrscr. — 2"^. The acceptor of adraft imt paid at maturity, and remainiii'j: with till' liaiili uhi(di discounted it, iloes noteeaseto he responsilile to the Imiik. Hutu ilh-iaiidiiiL' the state of account hetween the drawer and tlii'liiiiik. l'a\ iiieiit he the acce|)toi' oiiU' can discliai;:^i' the hill. Goud- L:/il r. The KxcliaiijrelJanU, M. L. U./;{ Q. H. 4:50. 211. Iiidorser paying is not entitled and does not need conventional pnlii'11'.^atiuii au'ainst prior parlies. l>ove r. Macdonald, l(i L. C. U. IVI. ' !5(l. Where ft note is payahlc to and indorsed hy several per-tmi', til*" ]iiiyiiieiit to or disi'hariie hy one is the iiayment to or discliai'ire to all. Hicik of .MichiL'aii r.(jii:iv," I'.C. 1 Q. U. Vl'l. .^^aviiiL.' recour.-e for cuMtiilmiiuii anion.; them. Macdonald c Whitlii'ld, S Ap|). ('as. 7o4. HI. The iiidorser of a hill writes to tlie drawer proniisin^i to "ri'tire" it, and accoidiii>:ly takes it up licfore maturity. The hill is iiutdiscliiiriicd. El.-ain c' Denny, 15 C. li. .S7. ;i2. The aeceplor of a hill, ori<.'iiially payahle to drawer's order, dis- liOiuns It. 'J'lie drawer pays the holder and <:ets the hill. He may fillier sue the aeceptor himself, or he may strikeout his own and llic Mih-eipieiit indorsements, and ai:ain ne^'otiate the hill awa\ aclc~on, 4 15 m^ '.H» Ciiknw r. i.awrence, :! .M. S. ',!') ; Iliiiihard r. J Elsw.irtli r. lirewer, 2S Mass. ;U5. B!i. The drawer or indor.ser of a hill who pays it is a (piasi-suicty for the acceptor, and the aiialoju'y is sntliciently elo-eto entitle h'ln to the hi'iji'lit of any securities deposited hy the acceptor with the holer, liinl rciiiincd liv "the holder at the lime of the dishonor of the hill. Duiaaii I'. N, iV: S. Wales Hank, H. L., (> App. Cas. 1. See ('. ('. of L. C.,arls. IL^jG, 1157: First National Hank r. Ward, 71 N. Y. ,(i5; Re Cli. C; WIti liervaise r. Lewis, L. 11., 7 C. l\;{77; (Jrav v. Setdiham, L. li.,7 *earl c Deacon 1 De G. tt J. 4G1. See .section 53. u anaccoiriiuoddlion bill is paid. — .^4. Indorsee undertaking with })ayeo to pay a note signed by maker? 'or the accommodation of tiie payee, cannot recover from the 'linker. althoiiL'li no party to the agreement. Peterd v. Waierbury, 2^N.B. U. 154. ^ ^ ° 204 Tlir, I'.IM.S OF f]\'CIlANfJK .\( r, IS'.M). ^ 59. X). Otii- of llif ilct' ii'liiiii- ill ajnint mill -cMTiil imti' -i.'iii'l it ns r»nr»'ty lnr the dtlicr ; tlic |in?ii'i|ml iiftoiw.. ! , .; ,.,..,,,11. ,,1 the |)liiiiilill'- liiunl^ III Hvll iiii'l piiv the iidI)', Imi he ii|i|iImm1 ilu> luite jti'iH'ct'il^ Id tlic |iiiviii('iit lit' iiiiiiliicr ilrlil iliii' III liiiii riiiiii till' |iriiii.'i. pill. Ili'lil, tiiiil llii- \\u- 1111 ilifi'iiiM- 111 law, ImiiIi till iiiakiT- 111' the Hole ln'iii,' |)riiii'i|ijili. Miirii-iiii I'. Kvlc, Kti-i T. 1^72. N, li. Stuv ;!(». Hut if tilt" iinliir-i'o nf a liitl ii('i't'|it<'r<| tn Inin liy llie latli'i' al'icr liialiiriiv, aflrrwar'l-* rt'ceivi'^ piMperty fiMin llio pavei' I'nr the puijio^e of -iiii-t'yiii;itlii-' I 111 I aii'l iilliiT', mill proinis' •* tlic ilrffii'lunt tiMlf-tniv tlic liill. Ilcjil, lliat llic Jiiil;^!' was ri^lit in Icaviiij: it tn llic jury I II fav w ictlicr llic pliiiiitiir nil 1 nut rcinmiiccil lii^^ claiiii iiu'iiiiHt tlic ilifV diinl. \Vai-ii.ii p. I'lirtcr, ;i Kerr. Sec '•cc. til 'M- A liili is iici'cptcil fur the iiceiiiiiiiiinlalKiM of the .Irawer. The drawer iieudtiiilcs tlic liill, aiis it. 'I'lie ImMer caiiiiut sn,. t|ic areeptnr, fur the liill Hili<.'liarL'e,l. C.MiU r. I-i of the iiidorscr must deduct the r, •5.'5 L. C. J.. '51). 41. .'\ hill for 200/., drawn aliroad, is ai^copted for the aecoiii tion of llie lirst indorser. Acceptor and indorscr fail. The lioMiT gets lOO/.from the acceptor and 100/. from the indorscr. The iii'lor- ser'.s estate jiavs l.'i.y. in the i»ouiid. The acceptor, in provin.' on iIh' contract of indemnitv airainst the indorser, can tret "lO/., which niiiki''* the total amount paid liy the indorser on the hill (!')()/.) to 1 at the rate of l.').?.in the pound. Ex parte lOuropcan Mank, L. li," Cli.lOi 42. The hoi er of a bill for Ii.M)/. accejits a composition of UK', i" the jiou d fro the accejitor under Bankruptcy Act isii'J, §§ l-''- 12t). The drawer and imlorsers are only dischanred to the extent 01 tlie enm received by the holder, for the acceptor is dischai'gea by JJlSCMAnGE OF hll.L. 205 (Im.v. /.•-.. l.-.-nlH, I.. 11., 1(1 ("li. 211 ; I'ruvincial ItimU uf § 59. opprninn II Irilaii'l r. Dminc, if. L U., 2 <.i. H. U. 21 ; Vjilc^ius u. liivtr IMiilu Bun c. I'. I). <; 4,;. Wlii'ii till' iircc'ipliir of n liill Ipt'CuiiH's l>iiiiUni|il, any |iu_vinriit inailf I'V tlu' (Iniwt r iir tiit ii .irscr lo the linlilcr mu.-t bo (UiliuiU'il fruiii ili< iiiiiMiiiit t'i>r wliirli nil' ImMcr is cniiilfj, lu pnivf iiL'iiinst ihf iH'ii|ilni''- t'-liilc. h'r /)iirte'l\iyUiv,2{'i L. .1. Maiik, .")><; JJx iiarte Ma.v.iMl"il, I.. K.Jl Li|. 5fS2. Likr any (itluT di'bt u bill may 1k' (liscliiirirt'il l)y payiiiont, puyiaont. couiiniit^atitm, ii(»vuti(m, release, cout'usion iukI prescription. Siiliji ct to till' exceptions contained in this chapter, payment iJisiliiULies a hill like any other ohliuation, and in the name man- ner, if payment he ma(h' at maturity, the lull amount of tlio bill iiiii.-t he tei\dereil, C. C art. 11(1.'!; hut if made thereafter, it iiiii>t alMi cfiver the damafjeH spccilieil in section 57. No pay. uiriit ran he I'oreed before maturity, except at least in the l*ro- vini''' of Quebec, when the dehtor i^ insolvent, r« devoiijUnre. Lov.ll r. Meikle, 2 L. C. E. (J!» ; IMacklnck ('. I'apin, cited in (iiniiiaid, Letires de change, 170; C. C. art. lOKli. Sec sectinii ,')l. Ev( ry paynieiit presupposes a debt, and what has been paid by ennr may be recovered back. C.C. aits. 10-^7, 1()4S and pstiitP of ill-olvcllt L. ('..I. Ill Slock ; soe U' \v\\^ |iiiid on aiiiiiiiiil riTi'ivcil 1,1 V. Til- :ioiiininil!i- ,. llolil.T 111' iinloi- 111^ 1)11 tin' ii'li iiiiiki"' l,c:it the (Ml. 101 ,f lO.s'. ill ;», §§12.'. fXll'Ilt of .I'lri'd h' PuynitMit must be made at the place indicated in the bill in spotie or in legal tender. British Sovereigns, halt' British SovL'ivjgns and certain United States i'lagles, are lenal tender. CiiiKulian silver is also legal tender to the amount often dollars. Doi iniiHii 1 notes are also legal tender in every jiart of ( anada, I'.xci |il ;it the olVn,-c> at which they arc respectively ri'ileemablc, du wluiv y iiiii>l l» • piiil m SI neru' Uev. Stat.. CO. :{•», :u. The iiidieati'iii of a liank as a place of payin>'nt by one of its I'ustiiiiurs is a sullieieiil authority to the bank to pay the bill, altlinu-h not lioiiiid to do .so in the ab.sence of special agrecmmt. Kjiiirr r. i.auri. (ISHI), 18 L. J. Q. B. 2l.S; Kobarts y. Tuck, r ( 1S.-)1 ) k; Q. \i. 579; Vagliano v. The Bank of hhig- kn.l. (1SS9). ');> L. .i . Q. B. 27. Payiii'iit iiiiist b ■ mido to the holder at or after maturity; and if made bel'or maliirity, the payer should sc that the bill be delivered up. He may wait till maturity to recover from other part es primarily liable, or he may at once re-negotiato the hill. See su[ira. nn, 32, 37, 38, and section 37, un. 2 and 3. 20fi The Bills of Exchaxoe Act, IS'JO. 59. If tlic payuitMit be made by tlie principal (Icbtor, llu; liill js entirely iliscliarL^ed, saving his recourse for contribution apiiust any other co-debtor. If the bill be paid by an indorser or other parties secondarily liable, surh indorser and all sul)se(|uent parties are discliar^oj. The acct'])tor and maker and the other par(ies remain liali] >. This rule does not apply to every kind of diseliarge, — '-^r in- stance, an indorser may be discharui'd by want of dutMiilintincy o'' by proceedinii's in bankrufitcy, where the law provides tor the discharge of the bankrupt, or by tlu' signing of a d'cd of composition and discharge at common law. Section Gl, nn. 14, 15, 1(1 and 20. All the other parties to the Kill reujain liable to the holder. If a bill bo paid by an indorser, he is entitled lo the hcnffit of all s.'curities deposited with tlu' holder l)y the accejitor or any other party prior to himself See liove (•. >[e|)()nald. It! L.c;. 11.191; Allen I'. Kembh", P. C, :\^)ore yU- Such is undoubtedly the law in Quebec, and it appear-* also in Englaiid See supra n 'iV.i and srction ");}. Article Hot) of the (';vil Code says: " Siib'ogation i >.kes place by the sole op rutinii of law and without demand (8). in favor (d' a jtarty who ]»ays a debt for which he is held with (jtliers or for others, ami Iki.s an interest in paying it-" See also San! ''• Nicolet, 15 Louis. 2-J:tl ; Wiggin r. Flower, 5 Robinson -11 IG. If a bill be drawn in a set, tln' accvj)tor who pays it must sec that tli(! part bearing his acceptance be delivered up to liiin, otherwi.se he will not be disehar:;vd as retJ:ards a holder in due course- See section 70, p. U. ro.\ll'!:NS.VT10N OH SKT-oXl". See section ilti, nn. H, 20, sect. .'!->, ini. I, o, 1, an 1 section ')'^, a;id notes. 44. Ill Queliec, tiie indorser has tlie ri;:lit U) set-oil' anv money iue or paid l)V tlie in Ider to tlie maker oCa ii.iie since matMrilv. (Jii ln'C Bank r. Mols,..n, I i.. (!. U. llti ; Hays ,-. David, ;{ L. C. li. IIJ. 45. In >- its made ii. a l)ank ninst he cnnipnteil to the earliest ilelits ,it' liiedepo' 8itor. Ck'veland r. 'fhe Kxclianire H.ink, .'>1 L. C. J. I'Jt!. See iiilia, n. i") ). 4(). The maker ofa notecannot setoll'a.'aiiist ati indorsee, who i-' die holder in due course, anv dehl ilne liv tiie pavee or indorser. itej. 1 Idi Nov., 1S1;{;S. lo, 1, l'J7. Rej. lOtli Nov., IS2;), S. .'{(), 1,:U; airel "f the ;{i'd Se])icniber, 1700, reported in 5 Journal des Audiences, p. 0'j2 DiSCHAHGE OF BiLL. 47. On t!i('2')tli.Iiiiu', iSSrf, tlio (U'fcnilaiitiux'.eptt'J GV acconnuinla- tioii 'liiil'l t'lir ,'<2iy.7'), iU thna- iMoritli.-. Uii llic 2 Itli .Inly, lS,>.s, liie . ililciKiii.ii ijiiiciiiir-nl i:.M.)(|s from (>. tu tlic aiiunuit of :^'l[i). Uii the •jOih .liiiy, 188!^, G. iiiiiilu a jmliciiil aliimdumiieiit fur tlio benclit of lii^ , ivdiinrs. On llie 2Sth Sept., If^^is, tlffi'inliuit paid the aci'um- iiKiiliiliiiii (.Inifl. Ill II -uit !iy the ciinitdr to (i.'s cstati- for tlio recovery of tlic !?2I5, pncf iif H'ldds, (lefi'iidaiil p caded that lie was entitled to coinpcii.-ate liiis -mil with the amount lie had jtaid oti llie draft for G.'s aceum- IIIOilllli"ll. Ih'ld: 1. That tlK'judK;iai aliiuidonmeiit dofii)iteiy settles the rela- tive |i i-iiiiiiis of the insolvent and his debtors and creditors; i. TIkii from the date of the ahaiidonment, all the nnseciii'ed eicdi- t,ir- iii'iuire tlif iii^ht to he paid hy ei^nlnhution out of the procetdsof tlKMlciiioiV estate; 3. Tiiiit eompensation cannot take place to the prejudice of rii:lit3 aeiiiHii'l liy the insolvent's crcdiiors, liy rea-on of the aliandoniiKiit, mill thci'cliire that creditors are without rijjjht or compensation tor claim- niaturinii after the aiiandoiiment. Jtiddell c. Goold, ^M. L. U., 5S. ('. 170 ; ("ass. pjth Fel.ruarv, 1^2;{, cited in 2 Bedarride, "JJ.!, 414 llfj. iOiii.luly. IS;12, S. V.;!2, r, 42!). 4-'. riif creditor of a hank in insolvency, who, after proeeei linos in l',|Uiil;i!i"ii, realizes certain ne^'otialile securities dejiositcd with him by the hank as security for certain advances, cannot iiKct the ai'tien iif the liipiidators for the excess of such advances, hy the plea that ilif 1 link was indi'hted to him tor aiiothcr anterior ddii. w Inch ili^l net I'l'ini part of theahove advances. K\clian>:e iiaiik of Canada r. Tlir Ciiy i\; Di-trict Savings J^ank, II 11, L. 8. •I'.l. Whci'e (Irafts and notes are placed with a hank hy a debtor of thclniiik, not as collateral seciuity, hut for collection, compen-ation diii'!^ not take place until tiie tiaiiK has rciciviMl the amounts collected liv tlu'iiMiii such notes and in the present case, the debtor having Itrniiie iu olveiit before any amount was received on such notes, iMiii|icii-ation did not take jilace liet\\i'<'n tlii' junoiint collected iiy the l«iik !i!i.l the debt due to it. Ivvthange ihink of Canada iV ('aiia- (luiii liaiik (.f ("ommerce, M. L. K., 2 Q. B. 47(i, 10 1.. X. lit). .')ll. A dividend payable under a dividend sheet, under the Fn-ol- vcnt .\( I i.| 1^7,'), t'annot be retained by the assignee of the .■>taie, liv way ( f -et-oll'or I'onipcu-ation auaiiist a didit due to the a-'Mgnce by tie,' creditor collocated, as indoisi'i' of cei ; in notes given in pay- iiiiMit i>l a -ale of the stock-in-trade of the insolvent by the as^igiice to aiKillici- 1 ally. Walker iV Doiitre, 2.'! I.. ('. .1. ;)17. .')1, Tiie defendant was entitled to plead to an a( tion on a promis- s^ory iiete. that the plaintiti' was under an obligation to deliver to hiin !i iiiite lu;' a larger amount in payincnt of i;oods sold and delivered, Int lia.i made default, and to a-k that the note sued on be di'claieil I'liniH'ii-atid by so mnch of what was due bv plaintill. Quintal r. Ai.biii. M. ].. U., IS. ('. 140 iV ;it»7, H L. N. (1(1. ')'L A defendant sued upon note- cannot ojjpose in compensa;i( n iiiilii[iiid:iied damages. Untario liank r. Fo-ter l.'J 11. L. 48. 5:!. The drawee of a bill of e.xidiange cannot setoff against tiie ilraHcr fiiiids specially u<'|u)silcil and appropriated by him to the iiay- • •' ' •" ^ "" """ ^ " '- ' •■ '■•- • ' 't 207 § 59. nil llaii lilt of ihe bill. C. r". 1100, s^ 2 ; Is Laurent', 4(;:); Aubrv et 111, 2:r. ; Itouen, Gth .laniiary, ISPJ, S. 41), 2, 707; Kej. Dth July, V 208 TiiK Bills of Excuangk Act, 1800. § 59. If^l-''. S. 10,1, %l); Cas8. 1st Jniip, LS58, S. 58,1, S()7, ciled m 4 Alim/.tt ^i); Tniiiirun- v. Hunk of H. N. A., L It., .0 P. C.2I. Se pcctiuii ;■);{, 11. C). Hilt lie ciiii cumpc'Msate Jij;iiiiifst tlic liuliliT. Soe iiott'M iiiuk'r M'cliuii 1!). 5-1. Upuii ii r,(Jt(' not payalili' to onlcr, but assijrni'ii \i\ a m taiiiil deed at a time wik n a imicli larateii. (iilisoiie i". Lee, I ll.de L. .'547, ml elaiiii-* Were iiiiitu- con .')"). A delit need not he aiisolntely rlaire tl //(/«/(/« to he set u|i in pi'iisation a;:ainst a deht eertain, provided it lie easily pKivcil consi'(|ueiitly, an aeeoiint tor ^roods sold and dehv creij may he (ip|iii.(il to a delil due under a n-itaiial in>triiment. Hall r. Heamltt. (i L. C. K. 7.") ; linss r. Hriinet, 5 li. L. '1'1\), iJccarv v. Poinin ville, M. L. It , ; llos 6 s. c. ;i(i);. 5(i. Hilt in an action dii a promissory note, a plea settinj^ I'ortli that at the time the note heeame due, the plainliirs had in their pus>c,-.-i(iii <;ooi|s he|oiiLMn;i to the defendant^ of tlie value of the note, and ihit the deht was therefore compensated, is had, and the value (if^'H'il- cir merehandise cannot he pleadeil in oompi'iisatioii to a demand lira Mini ol nioiiev. llvan r. Hunt, 10 L. C. li. 474 T u an at tioii on a note, one of the endorsers j)leaded payimnt. [lie It aiijieared that he hsi'' furnished the plaintili' with for wliitdi wert ittd m the pa-^s hook to ha\e heeii ".-etilnl, liut it Hi not appear th... any money pas.-eij Th aintiti' liilMlij! gi\ en nnsali.-laetory rt'plies, w hen examined as to ins jiayineiits, it was held that the price of the j^oods must he detlucted from the Mull'. L level's r. Irmatinj'er, 2 L. C. Ii. J. l.")H. 5S. The defendant cannot oiler in compensation of a imte !iis Hhaif in the crtip tifa fiirm woiktd in common hy piainliUfor dc- I'endani, and iinaecountecl tc^r hy hiintill'. 'J'liis ileht i.- not eiiually clear and li(|iiidated. I'eriaiilt r. Ilerdman, ."> R. K. 2211. ',». r aintiHaiiswered to a plea of comjiensjition or set-otl', thai di'feiidiint owid liini another sum (.if money exceedm^i; the aiiiuiiiil of lii> sei oil', .\iis\ver held had. (iilhert c Lioiiais, 7 ii- L. .'{.'{'.*. (ilt. Compfiisation must he oU'ei'cd in ;.'o(id faith, and the litdiler ol'a note wilt) has kept tlu' maker all the time in ii:iioianrc of the tacl that lie hold >iich iHite cannot afterward.- run an account witli the iniiktr, with the \ lew of olleriii'j; the latter s iitite as a set -oil. I'ai ile.-sil.-, ii. 2.'{5 ; l»aiiiist r. (ieotirioii, 12 H. Ii 401. The .-oumliie.ssof thl^ declriiie is doiihtfiil, e-peciall • if the holder is a htilder for value and malu'S no I'epi'escnlation. (il. As to what coiist-tiites a settlement between bankers wlnre iidv r. K.i;rers, .^) M. .t G. iUll; tl lere IS a cieariiiji-iiou.-'e -ee W arw here there is no clearinj^diouse, Pollard i\ Hunk of Enjrland, L. K., 6 Q. H. tJ2r). See notes. (J2. When a plea of comjiensation was set up in answer to an aetini on a cheipie, ai th e cluiius oil winch coiiipeii>atioii was a^ ked due hcf.pi'e the cheiiiie wa-^ ^iven, it was held that the plea wii? D orioii r. Dorioii, 5 \vt re had. N. i:io 6."{. The transfer of a note held as collateral security will ojiorate as y X I'ompensation between the transferror and the debtors. Leja^^e f. llamel, I 'J H. L.m DiSCHARGR OF BlLL. 209 It'll in 4 ■I. N'f ■r. fjee lln' M'te iiiiHii lie V IlllltU- ■t u|i in JiriiVfil ; ■ tijijiii-i'il I, W 1-. C. a.L. U, "ortli that )U^M■^-i|'ll iimi tbu dt' ;Ji I'll" lUiiil ii'i' a pllVlMlUt. cni'-, i!ie •SHll.il," itl' liiiMii;! .■nif', it was the iKilf. in ill' !iis ll t'of ill'- iti ut I'liiially tliiit the IMOUIlt C'l' (iliU'rnt'a tart that \v niiihir, .h'^>ii-i »■ I- (hiftiiiii' iliul lllill<^'^ .t (i. :!^"! uiil, 1^. ii'. ) iiii action -Ucil woe I WHS ba'h ill oix'fiite 8. Lo^iiige Componsation is another mode of extinction of obligations on § 59. a bill. When two persons to a bill are mutually debtor and cnditor of each other for a certain sum of money, the compen Oomju-nsntion nation takes place by the sol,; operation of law, a nd both debts arooxtiii^'Uished pro taut'), and all parties subse(juently liabh- on the bill are discharged, but the two debts must be eqaully licjui- (latd and demandable. (J. C. Arts. 1187, 1188. Allen w. Kc ble, P. C, () Moore, 314. At or after maturity, if the maker of a n ite he the creditor of the owner for a like aiu unit, tlie two lebts are ficto ipso compensat/d, and the iua\ r ai»d n lorsers are all discharged. But the maker can lot S't up ill couipen-iation wiiat the holder owes tlie indorser. Likcwis, a joint and s 'Via'al maker, wiiat tht^ holder owes to 11 is co-iuuker, except for the share of the latter in the join and several debt. C ('.art. 1191, When tie two (libts are payable at ditlVrent places, compensation cannot b.' s t u|) without allowing for the expens s of remittance. ('. ! ir.).i. Til-! above provisions are b rn (Wed from tiie (.'ivil CikK, and iipply to the Provinci; of Quebec only. .11 the otiijr provinces of the Dominion a lefenda t sued for a li(jniilatcd money demand is permitt d, but not obligi;d byl.w, to set oif against tlie sum wuicli the plaintiff ciaiius, any fujuiilated money demand f om t!ie iJaintiff to the de- ten laiit. Sotujtimes, in Quiiboc, when compensation by th sole o|i rat on of law is prevented, comp nsation may likewi.se be (Icuitiidi'd by exct-ption or pie, .ding C. (! art. 1194. In all the provinces, the ilefeudant's set-otf i"<.y be of a less auioiiiitthan the plaintiff's claim. Ill Ontario, and the other provinc !S governed by the Eiulish law, iiisti ad of pleading a set-off, the defendant may, if he likes, bri :i a cross action, or he may do b itii ; but if he be succ .^sful on bis pleas of set off, the judgment in the cro.vs actinii will be proportionately reduced. In Quebec, no cro.ss action can be brou.bt, except for the excess, because coiiipi-n.sation takes place by luiTe operation of law outside of ihe consent of partits. In Ontario, a bill to hs set off must be due and unpaid in the dof ndant's hands when the action is commenced, and must remain in his hands at the trial. The debt-* must be mutual, that is, they must be due to the defendant, or defendants alone, from the plaintiff or plaintiffs alone. 14 210 The Bills of Exchange Act, 1890. .^ 55. THE CLEARlNQ-rioUSE. In tlio year 1889, the incouvoiiionce of dtiily sondin^ out tor sottlcinonts with other banks lod a nuiub.'r of the chartered banks of Montn-al to orj^anise an exohange aiaon^ themselves, on a soiuowliatsiiuihir plan to that ah'eady pructiscid in New York, London, and other larm? cities of the world. This exehuiiuo, which is commonly called CU'.drliKj- /louse, is an ancient institu- tion in bankinii business. It was establisiied in London in 1775, and was then already in existonce in Edinburgh. Mas-e, Dr. Com., vol. 4, p. 183, asserts that about the twelfth century tlw bank of Venice had organiziid one to adjust thi claims of mer- ciiants, brokers and bankers dealing at the celebrated fairs held iu the le iding commercial cities of Kurope Until reciMitly, the Clearing-House system seems to have been contiiu'd to Engli>h speaking tiiiaiu-ial centres. Establisiied iu New Yoik iu 1853, it has since been introduced into the leading ei.ies of the American Union. It is only within the last lew years, however, that it has been adopted in France, Germany, Austria, Italy, and he continent generally. The magnitude of the operations of elearimr-houses, and tluir practical importance, may be imagined from the following otlieiul returns : Mi)iitrctil Clear inij-1 louse- Clcaring-J. IJalaiiecs. Week ending Nov. 'VM\\ 1H90.. $12.(i'):!,27H! $l,j.W,4(i,8 Last \veek..l s.T'.iD.dlt l,2;{r),.sl() Cor. week last year ll,.'i;{;j,;>20 l,G:i-4,0iJl (clearings £ 177,38«;,000 £ 6,0(}5,0.-)2,l'tJO London Clearing Hoase, \ycr the year ending January Ist, 188G : The mo0. Wliori the acceptor of a bill is or becomes Acneptortho tlio hulder of it at or after it3 maturity, in his own h.Vit^.'^ light, the bill is discharged. i< ! 212 The Bills of Exchange Act, \8ii0. ^ 61. CONFUSION. In his own right. — Thcrofore, if tin- iiiiiUtT Ik'coimp tlif IioMiT ?s quality., I'.g., as execu- toi'. if till' liuldi'i', till' bill is md ili-i;liiii';;i'ii, fotitnirv to tin* n\U' of tlu' Imij^HhIi cuiniiiDii liiw. Froukli'V c. Fox,*.* H. ife iUV \M) \ liowc y. I'ckt'tt, K; C. |{. r)0(t; Stron-^ c. Hird, L. li., 18 I::(i. WVo ; Jeiikiii>^ e. MucktMizie, U. U., Gy. H. 514. In Quebec, when the qualities of creditor and dcbtoi' are unit''d in tlie same person, there arises a contusion, whieh extin- guishes tlie oblii>;atioM. C. C. art. 111)8. The conl'usion avails tlie sureties. Art. 1199. Thiiretbre, when the miker of a note or the acceptor of a bill becomes the holder of it at or after its niaturi'v, the bill is discharijred and the indorsers are released. Under the French C'»de, it has been held that contusion takes pi ice even when the acceptor become^ the holder bii'ore maturity of the bill. Cass, nth IX-c, 18:{2, S. V. 35, 1, 14U, Ruuea, 7th December, I84t), J. P. 47, 1, 285 ; 4 Alauzet, n. Ki.')!'. But this decisi(»n, if ever sound, caimot be followed under sec- tion 15(( of the Act, which refers only to the acceptor becoiuing the holder of a bill "at or after maturity." If this happen.s before maturity, the bill maybe again nej^otiated. Ante, p. 111). ttl. When the hukler of a hill at or after its maturity ahsoliitely and unconditional ly reiioiui- ces his rights against the acceptor, the bill is dis- charged ; the renunciation must be in writing, unless the bill is delivered up to the acce[)t()r ;*" Thesamo. (2) Tlic liabilities of any party to a bill ni;iy in like manner be renounced by the holder l)ef()re, at, or after its maturity ; but nothing m this sec- tion shall affect the rights of a holder iu due course without notice of renunciation. NOVATION AND RELKA3E. See note. 1. The maker of a note is not dischari:;ed in conserinpncp of the diseharjj;e ('ranted to the payee by the holder, who knew tliRt the maker hud sii^ned for the aeeotnun lutioii of tlie pavee. Siicetr, Qiiiiiton, N. B.,' 2 P. aii.l II. M^l ; Siftun i'. Anderson, iJ. C, 5 Q. B. ;H()f) ; IJuiHiue Nationalc v. Betournay, 18 II. L. 175. (1) He Estate Ives, 7 R. & G. 108, 7 C. L, T. 146. Express waiver. DisciiAKGE OF Bill. 213 ■iting, 2. Where the arrest and disohanjje of tlie acceptor nperates, «<^ the acceptance wa-* for liiHaccointno latmii. Haiuiltou V. Ntwcoini), u. c, 11 c. IV y;{, u. c, 12 c. v. ;jh. 3. The indorsee of a note indoiHed for the accommodation of tlie maker, liavinj;; obtained judj/ment aj^ain>; Ken.lrick v. L(una.x,"2 Cr. & J. 405; Fcnton r. Black- wuud. L. li, 5 B. C. 107; Tayh.r v. Williimis, L. li., 12'), 1^4. 9. The acceptance of a renewal note does not operate novation and discharjre, unless there isiui express intention to that etfect. lie Estate hv<, 7 li. ii (}.,7 (\ L. T. 14t;; Noad l'. Boucharl, 10 I.. (]. li. 4 7(5; lAiiian V. Chamard. 1 L. C. .1. 2H5 ; Ktaly i-. Dolwoii, Q. 11., S C. 1>. § 61. V rice V. Wvl. tii)l. See also Led -an I, 10 P. li. IS2 ; Cass 0. li., 11 C P. i). 122; Wilev i\ UUh June, IHIC, S. V. 4(1, 1, 440; Limojres, lilst January, 1857, S. V.58, 2, 90 ; liouen, 14th Nov., 1870, 8. 77,2,233. 10. This intentioD is presumed from the .surrender of the original n 214 45 61. The Bills of Exchangk Act, 1890. note. Rrpw.ator r. riiapiimn, 19 li. C. J. 301. Sco uIsd Cuvillicr r. -Fni-er, U C, 5 y. 15. l;.2. 11. Hcnpwiiifr with the iiKidrHcrs ilncs not iliscliarp- tlic liniwcr, ncfcplor or iniikcr. Wnodlmrv r. (lurtli, It L. ('. |{. HIS ; Lvmi, 21.'*i Fi-I.niiirv, 1^40 ; J. P. 40, 2, (i2(i ; Duiiiii, Jiid .Mav, lS4S • S.V. 4s, 2, 12. A. j^avc ]{. mid C. n note si^'iicd \>\ liiin-clf, wliicii llicv iiiil t'd. Wlu'ii it mutiirt'd H. and ('. delivered to tlie Inilder. "l IV wav of renewal, a note |)m|Kirtiiijr to lie made liv ,\., Iili!.'nei| liy A., lint by another person of the >an . i .une, unUnown in die hoMei', iiiid resident in a foreign country, Held, that A. eonld imi take advan- la;.'Cof this fraud ; that his lialiiiily in respei't ff tiie note still existed in ('(piity; and tiiat the holder ('oidd sne witiiin -i\ years frnni iho diM'oveiv of the fraud. Irwin r. Free?niiii, I.'i Cliv. 4li."). .Sec I'ank (if Montreal v Siiv( r. ('.,1S Q. H. .|! )ll ; I )lo\\ II V "orildii. r. C, I(! Q. K. :{42, .'J22 ; Cumphell r. IJelf.nir, HI ("liv. 1 OS, p .VU ; Metropolitan Hank v. Snnre. U. C.,IO 0. V. 24, .•..V2 ; (•"ainphell r. Mc- Kmnon, U. C, IH Q. B. G12, 483. See al.«u McDonald v. Eventt,3 lerr fxil). !.'{. The defendants made n note for $200, to one M., to assist h nil III iseoniitci retiriiiL' paper in which defeiidaiils were interested. M. d his own note for S*20(i with the plaintill's, dcpositiii;: uith them the defendant's note as eollateral, Uh( n M.'-iiote fell due, the defen- dant's note lieinji theti overdue, he paid !?2.") and ;.'ave a renewal for flT.'), leaving: (h'feiidants' note with the plaintitl". I'er WiUon, ('. ,1. — Del'eiii limit's note was not an aeeoniniodation note ; hut assmnin.j- it to he so: Held, that the jiroper infeivnee from the eviilciice wa- that it Wiis transferred to the plaintills as seeiirity for the ii( hi represtnted hy M.'s note, and not for that note specially ; and that theilefcn lants remained liable. The Canadian Hank of Commerce r. Woodward el al,, 8 A. K. 347. Giving time. See note.«. 14. Delav {jranted to tlie maker or indoi'ser, without the cunscnl express orlmplied nf subrsor?J, llio lattiT fire still liahlo. CiitKulian § Q\, Bank of Coiiiiiicroc', 11 0. R. 207 ; Hank of V. V,. p. Jimliiu', IJ. C, y V. V. :?;i2 ; Uwcii V. llmimii, 4 II. li. Ciis. !l!)7 ; Miiir n. ('niwfunl, L. R.,-''Sc. Ap. ■I')(i, II. L. ; Cass. Ifilli June, ISKI, S. V. -Ki, 1, 440. 17. Wlu'i'c till' hoMer iciiow, at the liiiu' lie takes tlic bill, that a party primarily liable i.'^ only fur tlie accommoiiatiou or as surety tor (illicV parties, ami lie ;;ives time to the latter, the surety is discliarired ; olhcrwisp if he luisaiHiuireil tiiat knn\vie>li;e after takiiii; the hill. Hank uf IJ. C. y. Tiionias, II. C, 11 U. V. SIT); Hank uf U. C. r. Ocker- inan, U. C, 15 C. P. 30.1. 18. One of the joint makers of a note cannot setup as a defence that lie sijfiK'd it only as surety for the other niiikcr, to the plainlitrH kiiiAvledm', and that the plain! ill' s^ave time to the latter witlmul his euinent or knowledge. David-^on v. Hartlett, U. C, 1 Q. B. 50. I'J. Unless there is an agreement with the lioMer that he will treat that maker as surety for the other. Hill c. (rih-ion, IJ. ("!., 7 C P. o:U. See also Morrisoiw. Kvle, Ka-t T. H72 ; N, H. Siev. \).r- Astootlier illustrations of discharge of surely hv dealings i)eft)re the lia'^sing of the Act with the principal, v. ff., by renewal or giving time, see Chalmers, 20(5. SlUXlXO A DKKD OF COMI'OSITION. See notes. 20. In lorser not dischar.'ed by deed of composition and discliarje eraiiled in insolvency liy the holder, the amieptor or drawer or a |)re- viuus in lorser, if he has reserved his remedy ai^ainst them. W 1 n. Hn'tt, U. C, y Chy. 4.V2 ; Commercial Bank r. Wilson, II. C, U C. P. oSl ; Poitiers, 24tli August, l8i;{; Cass. Utli February, 1817 ; 1 Hedar- riile, li.'iO. See notes. 21. FiVen if no reservation be made. Cas^. 11th Februarv, 1817,2 Redarride, 452 to 455; (lilbert sur Sirey, C. C, art. 127;{, n. 12; Paris, 22nd May, 1GH2, cited in 12 Duranton, 47G. iSee notes. 2b^ The creditor compounding with his debtor tnust reserve his n"ilateral securities, otherwise he cannot retain tbeni beyond the aniount of the composition, Ileiiey v. Primeau, 18 11. L. 271. 'l\h. Compounding with the iinior->er does not discharge the maker, ha Hunque Natioiiale o. Betournay, 18 R. L. 175. Several of the above decisions, especially under n. 14, niu.st be Xov,ifi<.n and acpeptcd with caution. r.Kasj. The principle laid down in .section 61 is that wlicn the holder of a hill, at or after maturity, renounces his rii:lits a'jainst any |mrty, his renunciation mu^t be iibsolute and unconditional. Otherwise, it will not operate as'a di.schargo. Chalmers, p. 199, say.s that this section alters the English law, and brings it in acoordunce with Scotch law. The special rule, he adds, seems to have been con.sciously imported into the law merchant from French law. It seems to go even beyond the French law. Sec- tmn 01 requires the renunciation to be in writinir, unless the bill be delivered up. The French Code as well as the Quebec Code 216 The Rills of Exchange Act, 1890. S 61. fiayp "tliat novation is not to be presumed, and tliat tlie int'-n tion to «ffoct it niii>«t be evidint." C. C. art. llTl . But this intention may renult as w«'ll I'rom writing's as I'mm facts and cir- cumstiinocs \Uy 14tli Mareb, IH'M, S. V. lU, 1, 257 ; Id. iHh July, IS.'U, S. V. 34, 1, 805; Houen, lOib June, 18;{5, S. V. 35, 2, ;{U1 ; CaH.H. 3lst May, 1854, S V. 55, 1, 44 ; CVss. iTth December, 18t)2, S. V. G3, 1, 247; Zacbaric, vol. 2, n. .{2,^; Gilbert siir Sirey, C. C. art. 127:i, n. 41 ; Luictot v. Oundluck, decided by Mr. Justice Ta.schert au in 18^0, ju^erviiii,' expre.ssly bis remedy auainst tlie other parties to tlie bill, tiie ori- ginal bill is not discharged. Tiiero is no room for doubt tliiit iu tho.se ca.ses there is neither novation, nor dischafL'C, if tlio holder retain the bill. The parties secondarily liable will probi- bly have the ri<:ht to plead the extension of time, and pray that the action be declared premature. C. C. art. 1938 ; Willis v. Del Castro, L. 11., 21 C. B. 37tJ. Likewise, when there is no reservation made, the holder is not presumed to renounce, if he has retained the bill, unle-s the defendant can show by writing that he intended to renounce "absolutely and unconditionally. " The practical lesson of this new law to business m(>n is to reserve expressly their rights and retain the original liil', whin they either si<:n a deed of composition or dis^iharge, or tike a renewal, or give time. Wi*h tliat precaution, the safety of their rights is beyond doubt, an ;e holder who has accepted coiupo- sitiou notes can sue for the full amount of tho original bill, if they be not paid. DisciiAUGE OF Bill. 217 TIIK STATUTE OF IJMITATIONS. Quebec Den'slovs. 12. A j)iT)iniH)'ory note, payalilc on ilcinaiid, is due from the diiy of ale, atiii prtscriittKni riiii> a^'uin''t it from that tiiiK L in>e'(pio r. Aiilri's 2 L. C. K. 'MH. Otlicrwisc \,y sections ;{(;, 45 ami H'> 2.!. Tiic maker of a promissory note may set up in compensation til till' payee ami liearer of sueli note anotlier note, made liy the same [luvcc iiioif than live years previous, hut endorsed to tiie maker of llic lit-^t Mule hi fore the expiration of tlie time recpiired for tiie jire- nri|itiiiii thereof. In sueh ease, prescription cannot he invoked. Such (:i.iii|i('ii~ation takes place without any notice of the endorseim'nt anj Iriiii-lrr of the note t*et up in compensation hein;: reijiiired. The date ft|i|ii'ariiiL' on such endorsement is siillicii'iit eviijence, in the altsence orrMiiiiiidiclorv proof, and when it i> imt specially denied. Hays i\ iiav:d,:{L. C.U. 112. 21. The prescription of tive years airain^'t a promis.sory note, no; .Mitchell c. Mollaml, Cm. 1(1 S. C. R. CM?. 2S. Prescript ion cuiiimences to run from the e.xpiration of the last ilav iifL'race. Ste. Marie r. Stone, 2 Q. R. R. im ; 5 L. N. :{22. 2'.'. Ill an action on a promissory note, it was held that the dcfen limit'- ah^eiice from the eoiinlrv for seven or eii; Laconic ir Cliaiivin, 7 L. C. J. 'S.VJ ; Contra Crevier v. Saiiriole, •ih. C.J. 257. ■i2. In an action hy a non-trailer to recover moneys loaned and advan- ce*! liy him to the defendants, luerchantH and co-partners, and for which § 61. IMAGE EVALUATION TEST TARGET (MT-3) 7 ^ / o / / wj- ''//% 1.0 I.I "' IIIIM IIIIM 32 ,:4 IIM 1 2.0 1.8 1.25 1.4 1.6 ^ 6" ► V] ^ // / e. e, S' e% ^ 'c£/ ^ / / o 7 Photographic Sciences Corporation 23 WEST MAIN STREET WEBSTER, N.Y. 14580 ( 716) 872-4503 i 0j &?■ fe ^ 218 TlIM 1>1LLS OF EXtllANGE ACT, 1890. § 61. ^^^^y r!^^'^ ^^ aoknowlodfrnient in writing by moans of a letter, it was '■ — - held that the acknouiedgnioiit contiiineil in the letter in (jnestion was not a promissory note aj^ainst which the prescription of five years conkl be pleaded, and tiiat the plea of limitation of six years, nmler C. S. L. C.jCap. (i7, sec. 1, wa-* not applicable, ami that such pleaiimst bedismissed on demurrer. Gilmour o. Wliishaw, 15 L. C. R. 177. See also Wurtele v. Girouard, G R. L. 7;i7. 33. On demurrer in an action on a promissory note, that a ploa which sets up simply that the defendant had not, within five years, undertaken or promised in manner and form a< plaintiffs have com- plained ajrainst him, is a good plea. Under the statute relating to promissory notes (C. S. L. C, cap. 64), every note must be held to be absolutely paid and discharged, if no suit has been instituted within five years from the time when it became due. Giard t". Giavd, 15 L. C. R. 494. 34 The prescription of five years under the Promissory Note Act, C. S. L. C, ch. 04, is so absolute that noacknowleilgment of indebteil- iiess or partial payment will take the ca^eout of the statute, and if no suit or action be actually brought on a note within live year-^ after its maturity, it will be held to be al)~olutelv j)aid and discharged. Bmv- ker w. Fenn, 10 L. C. J. 120. I(i L. C. R. Ti, 1 L. C. L. J. 83. But see infra, n. 35. See notes. 35. According to the provisions of C. S. L. C, ch. C4, a promissory note will be held to be absolutely paid and discharged five year-' after it has become due and payable, and no action can bo nuiintained npoii it, even against a defendant making default. Giard v. Ijamoureux, Ifi L. C. R. 201, 1 L. C. L. J. 86; Court v. Thompson, atlirmed in appeal, 1 L. N. 589. See notes 36. The prescription on claims of a commercial nature is so abso- lute, that a reserve of plaintiff's recourse, in a judgment rendered in aj)peal, after the lapse of the prescribing perioij, will not avail aL'ain«t puch pre-icription. Janes v. Sun Mutual Ins. Co., 7 R. L. 387, 20 L.C.J. 194. 37. The short prescriptions referred to in articles 2250, 2260, 22r)l and 2262 of the Civil Code are liable to be renounced and interrupteil, in the manner prescribed bv art. 2227. Walker v. Sweet, 21 L. C. J. 29. 36. A debt originally due under a promissory note, and which has been proscribed by the lapse of five years from the tviaking of such note, cannot be recovereii at law, although the defendant may have acknowledged in the preseinv," of a witness, after prescription accrued, thai he wa< still indebted to Plaintiff in the amount of the note and IkhI promised to pay, thus renouncing the benefit of the ])rescriptioii accrued. Fis.'t it. Fournier, 1 L N. 589. See supra, n. 27. 37. The five years ])re