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Date.

'Month.'

Consideration.

[Two] months after date [or on de

(Stamp) mand, or at sight, or at

days

after sight] I promise to pay to C. D. or order [or to C. D. or bearer, or to C. D., or to the order of C. D., or to bearer] One hundred pounds [for value received].

JOHN WOOD.

(Sm. Merc. Law, 212; Broom Com. 435, 467; 2 Ste. Com. 123; Byles, 68-80.)

A date is not essential to a bill or note. If omitted, the instrument will be considered as dated at the time it was made. (Byles, 69; Sm. Merc. Law, 215; Chit. B. 99.)

In the case of a bill or note, a month means a calendar month. (Byles, 188; Sm. Merc. Law, 215; Chit. B. 257.)

A bill or note is, primâ facie, presumed to have been given for a sufficient consideration, unless the defendant sets up, as a defence in toto, that he received no consideration, or, as a defence pro tanto, that he received no sufficient consideration, or makes out primâ facie case sufficient to put the plaintiff

But this de

PART III.

TIT. II.

upon proof of consideration.
fence will be of no avail, if the holder himself

or some intermediate holder took the bill
or note bonâ fide, and paid a valuable con-
sideration for it. (Sm. Merc. Law, 269-70;
Byles, 108-9, 112; Chit. B. 47, 50; Broom
Com. 433, 479-80; Sm. Cont. 143-4; 2 Ste.
Com. 122.)

Illegality of the consideration vitiates a bill or note in the hands of the original parties, and also in the hands of third persons who have not given value for it, or have taken the instrument after it was due, or have taken it with notice from a person who is not an innocent indorsee for value. (Sm. Merc. Law, 272; Chit. B. 55, 62; Broom Com. 480; Sm. Cont. 250.)

CAP. VI.

or notes.

Bills or notes are either inland or foreign. An inland bill or note is one drawn or Inland and foreign bills made in any part of the United Kingdom or adjacent islands, and made payable or drawn upon any person resident there. A foreign bill or note is one drawn or payable, or both drawn and payable, abroad.

(Sm.

Merc. Law, 211; Byles, 366; Chit. B. 5;
Broom Com. 461; 2 Ste. Com. 113.)

in parts.

Foreign bills are often drawn in three or Foreign bills more parts; all the parts together making

PART III. what is called a set, and the whole set conTIT. II.

CAP. VI. stituting but one bill. Each part contains

By what law bills are governed.

Transfer of bill or note.

Designation

a condition that it shall continue payable

so long only as the others remain unpaid. This practice is adopted in order that if one be lost, the party entitled may secure his money on the other. (Chit. B. 104; Sm. Merc. Law, 219; Byles, 362; Broom Com. 461.)

(Sm.

In the case of a bill drawn in England and payable abroad, the obligation of the acceptor will be governed by the law of the place where it is payable; but the obligation of the drawer by the English law. Merc. Law, 212; Byles, 371-3; Chit. B. 116.) If a bill or note is made payable simply to a particular individual, without the word bearer' or 'order,' it is not negotiable, though it is valid as between the original parties. If it is payable to a particular individual or his order or assigns, he may transfer his right to a third person, by indorsing his own name upon it and delivering it to him; if to bearer generally, or to a particular individual or bearer, it may be transferred by mere delivery. (Sm. Merc. Law, 216; Chit. B. 10, 150-1.)

The payee may be designated either by of payee. name or by description, as 'the trustee acting

under A.'s will:' or a blank may be left for the payee's name; in which case any bonâ fide holder may insert his own name. (Sm. Merc. Law, 217; Byles, 72; Chit. B. 90, 160-1.)

Part III.

TIT. II.

CAP. VI.

a note, when

bill.

If indorsed by the payee, a promissory Similarity of note becomes exactly similar to a bill of ex- indorsed, to a change; for then it is in effect an order by the indorser of the note upon the maker to pay to the indorsee: the indorser then stands in the situation of the drawer of a bill; the maker is in the position of the acceptor of a bill, as the person primarily liable; and the indorsee becomes the payee. (Sm. Merc. Law, 207; Chit. B. 6, 134; Broom Com. 468-9; 2 Ste. Com. 124.)

The law of bills is generally applicable to Application

of the law of

notes, except that, as there is no third party bills to notes. or drawee in a note, the points respecting

an acceptance have no application to a note.

(2 Ste. Com. 123.)

Indorsements are either in full or in blank. Indorse

A full or special indorsement is one mentions the name of a person in

ment and

which

transfer of

bills or notes.

whose

Full or

favour it is indorsed, as where it is made

special indorsement.

payable by the indorsement to C. D. or order.
An indorsement in blank is one which is Indorse-
effected by the holder merely writing his blank.

ment in

TIT. II.

CAP. VI.

PART III. name on the back of the bill, without making it payable to any one in particular. (Sm. Merc. Law, 229; Broom Com. 437, 450; 2 Ste. Com. 114; Byles, 136-7; Chit. B. 161, 163-4.)

A bill or note indorsed in blank passes by mere delivery, and becomes payable to any bonâ fide holder. But a bill or note indorsed in full will not pass from the person to whom it was so indorsed in full without being indorsed by him, either in full or in blank. Whether indorsed in full or in blank, the instrument is delivered over to the assignee, who is called the indorsee; and he also may indorse it, either in full or in blank, so as to transfer it to another; and so on in infinitum. (Sm. Merc. Law, 230; Broom Com. 432, 437, 450; Chit. B. 161; Byles, 136-7; 2 Ste. Com. 114.)

Bill indorsed. in blank, and

It will be seen from the foregoing paraafterwards in graph that a bill which has been indorsed

full.

in full may afterwards be indorsed in blank; and that a bill which has been indorsed in blank may afterwards be indorsed in full. In the latter case it will be payable to bearer, as against the drawer, the payee, the acceptor, and the blank indorsers, in the same way as if it had never been indorsed

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