Carriers. CH. XV. s. 4. ment or indorsement shall have transferred to and vested in him Shipowners as all rights of suit, and be subject to the same liabilities in respect of such goods, as if the contract contained in the bill of lading had been made with himself." Bills of Lading Judicial decisions. By s. 2 there is a saving for right for stoppage in transitu or claims for freight, and by s. 3 the bill of lading becomes conclusive evidence as against the master or other person signing it, unless the holder has had actual notice that the goods had not in fact been laden on board; but it is provided that the party signing may exonerate himself by showing that the misrepresentation was caused without default on his part, and wholly by the fraud of the shipper, the holder or some person under whom the holder claims. But the master, by signing, does not bind the owner to deliver the amount specified (w), nor is the owner estopped by the signature of the master from showing that the goods were not put on board (x). Only the party signing is bound (y); and the master may show a difference in weight from that signed for (z). Fire. Robbery, &c., of undeclared &c. (c) The Limitation of Liability under the Merchant Shipping Act. A common carrier is, as we have seen (ante, p. 410), liable for loss even by accidental fire, but this liability is, in the case of an owner of a British sea-going ship or any share therein, done away with by s. 502 of the Merchant Shipping Act, 1894, 57 & 58 Vict. c. 60 (reproducing part of s. 503 of the Merchant Shipping Act, 1854), which enacts that such owner shall not be liable to make good any loss or damage happening without his actual loss or privity, where any goods, merchandise or other things whatsoever taken in or put on board his ship are lost or damaged by reason of fire on board the ship. Another part of the same section (the Carriers Act (see ante, gold, jewels, p. 419) not applying to carriers by water) similarly exempts the owner from liability, "where any gold, silver, diamonds, watches, jewels, or precious stones taken in or put on board his ship, the true nature and value of which have not at the time of shipment been declared by the owner or shipper thereof to the owner or master of the ship in the bills of lading or otherwise in writing, are lost or damaged by reason of any robbery, embezzlement, making away with, or secreting thereof (a)." (w) McLean v. Fleming (1867), L. R., 2 H. L. Sc. App. 128. (x) Brown v. Powell Duffryn & Co. (1875), L. R., 10 C. P. 562. (y) Jessel v. Bath (1867), L. R., 2 Ex. 267. (z) Blanchet v. Powell's Llantivit Colliery Co. (1874), L. R., 9 Ex. 74. (a) See Acton v. Castle Mail Packets Co. (1895), 73 L. T. 158. CH. XV. s. 4. Shipowners as Carriers. Limitation of persons The 503rd section of the same Act limits the liability of the owners by a ship (b), British or foreign, if the occurrence take place without their actual fault or privity for loss of life or personal injury, to an aggregate amount not exceeding 157. for each ton of liability for loss of life or their ship's tonnage, and for damage to or loss of goods to an goods, or aggregate amount not exceeding 81. for each ton of their ship's damage to tonnage, and the 504th section prescribes a procedure by which per or goods. the owner may apply to the High Court to determine the amount Procedure by of his liability, and distribute that amount rateably amongst the owner. claimants thereto in cases where several claims are made or apprehended in respect of any liability alleged to have been incurred by the owner"in respect of loss of life, personal injury, or loss of or damage to vessels or goods." tation. The Andalusian (1878), 3 P. D. (b) The owner of an unregistered British ship is not entitled to the limi- 182. Bills of SECT. 1.-Generally. A BILL of exchange, or open letter of request from one man to another desiring him to pay a sum named therein to a third person on his account, a cheque or bill of exchange desiring a banker to pay a sum named therein to a third person on demand, and a promissory note or open promise by one man to another to pay him a certain sum of money therein specified, become each of them by delivery contracts differing from other contracts in the two essential particulars (1) that they are presumed to be made for a consideration, and (2) that they are assignable. The rules governing their form and the liabilities of the parties to them, though occasionally embodied in the statute law before 1882, were to a very much greater extent decided from a long succession of judicial decisions perpetually increasing with the increase of commerce and business, for the facilitating the transaction of which they were originally devised many hundred years ago. In 1882, however, the Bills of Exchange Act, 1882, 45 & 46 Vict. c. 61, was passed to "codify" the law "relating to Bills of Exchange and Promissory Notes," and this Act embodies in 100 sections the result of the previous judicial decisions and statutes (a), assimilating the Scotch and English law, clearing up many points theretofore doubtful, but as a general rule leaving the substance of the law unaltered. In the next three sections of this chapter will be given the main provisions of this important Act as they affect bills, cheques and notes respectively, but it will be first desirable to extract the two principal provisions of general application : (a) See McLean v. Clydesdale Bank- Blackburn, In re Bethell (1883), 34 Ch. ing Co. (1883), 9 App. Cas. 95, per Lord D. 561. S. 91.—(1) Where, by this Act, any instrument or writing is C. XVI. s. 1. required to be signed by any person, it is not necessary that he Generally. should sign it with his own hand, but it is sufficient if his Bills of Exchange signature is written thereon by some other person by or under his Act, 1882authority. contd. (2) In the case of a corporation, where, by this Act, any instru- Signature. ment or writing is required to be signed, it is sufficient if the instrument or writing be sealed with the corporate seal. But nothing in this section shall be construed as requiring the bill or note of a corporation to be under seal. bankruptcy, S. 97. (1) The rules in bankruptcy relating to bills of exchange, Savings for promissory notes, and cheques, shall continue to apply thereto not- law merchant, withstanding anything in this Act contained (b). (2) The rules of common law including the law merchant, save in so far as they are inconsistent with the express provisions of this Act, shall continue to apply to bills of exchange, promissory notes, and cheques. &c. (3) Nothing in this Act or in any repeal effected thereby shall Stamps. affect (a) The provisions of the Stamp Act, 1870 (c), or Acts amending it, or any law or enactment for the time being in force (b) The provisions of the Companies Act, 1862 (d), or Acts Companies. amending it, or any Act relating to joint stock banks or companies: (c) The provisions of any Act relating to or confirming the Bank of privileges of the Bank of England (e) or the Bank of England. Ireland respectively: (d) The validity of any usage relating to dividend warrants, or Dividend the indorsements thereof. warrants. SECT. 2.-Bills of Exchange. By the Bills of Exchange Act, 1882, change S. 3. (1) A bill of exchange is an unconditional order in writing, Bill of exaddressed by one person to another, signed by the person giving it, defined. requiring the person to whom it is addressed to pay on demand or (b) See Ex parte Robarts (1886), 18 Q. B. D. 286, C. A. (c) 33 & 34 Vict. c. 97, repealed and re-enacted, with its amending Acts, by the Stamp Act, 1891, 54 & 55 Vict. c. 39, Chit. Stat., tit. " Stamps." See ss. 32-39, and schedule, tit. "Bill of Exchange," and as to construction of s. 32, see Committee of London Clearing Bankers tit. " (e) See Bank Charter Act, 1844, 7 & 8 Vict. c. 32, and other Acts, Chit. Stat., tit. "Bank." CH. XVI. s. 2. at a fixed or determinable future time a sum certain in money to or to the order of a specified person (ƒ), or to bearer. Bills of Exchange (Act of 1882). Effect where different (2) An instrument which does not comply with these conditions, or which orders any act to be done in addition to the payment of money, is not a bill of exchange. (3) An order to pay out of a particular fund is not unconditional within the meaning of this section; but an unqualified order to pay, coupled with (a) an indication of a particular fund out of which the drawee is to reimburse himself or a particular account to be debited with the amount, or (b) a statement of the transaction which gives rise to the bill, is unconditional. (4) A bill is not invalid by reason— (a) That it is not dated; (b) That it does not specify the value given, or that any value has been given therefor; (c) That it does not specify the place where it is drawn or the place where it is payable. S. 4.—(1) An inland bill is a bill which is or on the face of it purports to be (a) both drawn and payable within the British Islands, or (b) drawn within the British Islands upon some person resident therein. Any other bill is a foreign bill. For the purposes of this Act "British Islands mean any part of the United Kingdom of Great Britain and Ireland, the islands of Man, Guernsey, Jersey, Alderney, and Sark, and the islands adjacent any of them being part of the dominions of her Majesty. to (2) Unless the contrary appear on the face of the bill the holder may treat it as an inland bill. S. 5.—(1) A bill may be drawn payable to, or to the order of, parties to bill the drawer; or it may be drawn payable to, or to the order of, the drawee. are the same person. Address to drawee. Certainty as to payee. (2) Where in a bill drawer and drawee are the same person, or where the drawee is a fictitious person or a person not having capacity to contract, the holder may treat the instrument, at his option, either as a bill of exchange or as a promissory note. S. 6.-(1) The drawee must be named or otherwise indicated in a bill with reasonable certainty. (2) A bill may be addressed to two or more drawees whether they are partners or not, but an order addressed to two drawees in the alternative or to two or more drawees in succession is not a bill of exchange. S. 7.-(1) Where a bill is not payable to bearer, the payee (f) An instrument made payable to - order" must be construed as payable to the order of the drawer, and when indorsed by him is a valid bill of exchange (Chamberlain v. Young, [1893] 2 Q. B. 206, C. A.). |