Computation of time of payment. Art. 20. In computing time, unless the contrary be expressed, three Days of Grace are added to the nominal time of payment in the case of all bills not payable on demand.1 If a bill be payable after date, after sight, or after the happening of some event, the nominal time of payment is determined by excluding the day from which time is to run, and including the day of payment.2 "Month" means calendar month.3 ILLUSTRATIONS. 1. A note dated 31st January is payable one month after date, "without grace." It is due on February 28. A similar note, dated January 1, would be payable on February 1.4 2. A note for 1007. is made payable by two equal instalments, on January 1 and February 1. The instalments fall due on January 4 and February 4.5 3. A bill dated January 1 is payable thirty days after date. It is due on February 3. 4. A. non-negotiable note, not payable on demand, is entitled to days of grace. NOTE. It is believed that all countries, except those where the Greek Church is the prevailing religion, use the New Style, or Gregorian Calendar. The number of days of grace allowed differs in different countries. By French Code, Art. 135, and German Exchange Law, Art. 33, days of grace are abolished. The Indian Draft Code proposed to do the same. The Bank of England pays its own bills without taking grace. "After sight" in a Bill of Exchange means after 1 Oridge v. Sherborne (1843), 11 M. & W. at 381, Bowen v. Newell (1853), 8 New York, 190; Cf. Art. 18. 2 Campbell v. French (1795), 6 T. R. at 212; Story, § 329; Rochner v. Knickerbocker Life Ass. Co. (1875), 63 New York, 160; and Cf. German Exchange Law, Art. 32. • Webb v. Fairmaner (1838), 3 M. & W. 473; Cf. German Exchange Law, Art. 32; French Code, Art. 132. 4 Cf. Rochner v. Knickerbocker Life Ass. Co. (1875), 63 New York, R. 160. 5 Oridge v. Sherborne (1843), 11 M. & W. 381. 6 Smith v. Kendal (1794), 6 T. R. 123. acceptance or protest for non-acceptance, ie., sight Computaevidenced on the bill.1 ILLUSTRATIONS. 1. The holder of a foreign bill, payable sixty days after sight, makes an agreement that if it be dishonoured by non-acceptance, he will re-present it for payment at maturity. Acceptance is refused. The time of payment must be calculated from the day the bill was protested, and not from the day of presentment to the drawee for acceptance.2 2. A bill is payable three months after sight. The acceptance bears date January 1. The bill is due on April 4. 3. Bill payable after sight is noted for non-acceptance on January 1. It is accepted supra protest on January 5. The time of payment (probably) must be calculated from January 1.3 NOTE. As a promissory note cannot be accepted, "after sight," in a note, means after mere exhibition to the maker. A bill presented for acceptance is usually left for twenty-four hours with the drawee, but the custom is for the acceptance to bear date the day of presentment, and not the day of return to the holder-e.g., a bill presented on a Saturday is accepted and returned on the Monday; the acceptance should bear date of the Saturday. The holder is probably entitled to this as a matter of right. "Usance" means customary time, i.e., the time for payment as fixed by custom, having regard to the place where a bill is drawn and the place where it is payable. ILLUSTRATION. The usance between London and Amsterdam is one month; therefore a bill drawn in Amsterdam, dated January 1, payable in London at double usance, falls due on March 4.5 NOTE. When the usance is a month, half usance means fifteen days: Cf. Pothier, No. 15. The existence of a usance will not be judicially noticed: it must be proved. 1 Campbell v. French (1795), 6 T. R. 200, Ex. Ch.; Cf. French Code, Art. 131; German Exchange Law, Art. 32. 2 Id. 3 Such is the practice: see contrà dicta in Williams v. Germaine (1827), 7 B. & C. 468 at 471. 4 Sturdy v. Henderson (1821), 4 B. & Ald. 592; and Cf. Dixon v. Nuttall (1834), 1 C. M. & R. 307, prior to 34 & 35 Vict. c. 74. 5 Cf. Mutford v. Walcot (1700); 1 Ld. Raym. 574. tion of time of payment. Computation of time of payment. Place of making. When a bill falls due on Sunday, Christmas Day, Good Friday, or on a day appointed by proclamation for a fast or thanksgiving, it is deemed to be due on the preceding day.1 When a bill falls due on a Bank holiday, it is deemed to be due on the succeeding day. ILLUSTRATION. A bill is payable three months after date. The last day of grace is the day after Christmas Day, a Bank holiday. It is due on the 27th December; but if the last day of grace was Christmas Day, it would be due on the 24th; and if the 24th was a Sunday, it would be due on the 23rd. NOTE.-By French Code, Art. 134, a bill which falls due on a dies non (ferié légal) is payable the day before. The computation of time is determined by the law of the place of payment.3 ILLUSTRATIONS. 1. A bill is drawn in England, payable in Paris three months after date. After it is drawn, but before it is due, a moratory law is passed in France postponing the maturity of all current bills for one month. The maturity of this bill is for all purposes to be determined by French law.* 2. By French law, days of grace are not allowed. A bill drawn in France, payable in England, is entitled to three days' grace; but a bill drawn in England, payable in France, is not entitled to grace." Place of Making and Payment. Art. 21. It is usual, but not necessary to state in a bill the place where it is drawn. NOTE.-By 9 Geo. 4, c. 65, a penalty is imposed on the issue or negotiation in England of bills or notes of less than 57., payable to bearer on demand, which are made or purport to be made in 139 & 40 Geo. 3, c. 42; 7 & 8 Geo. 4, c. 15. 34 & 35 Vict. c. 17, § 1 & 2; The Bank Holidays Act, 1871. 3 Rouquette v. Overman (1875), 10 L. R. Q. B. 525. 4 Id. Id. at 535-538. Scotland or Ireland: and see Art. 279. In France, the place where Place of a bill is drawn must be stated, for a bill cannot be drawn and making. payable in the same place. There must be a possible rate of exchange between the place where it is drawn and the place where it is payable French Code, Art. 110; Nouguier, § 93–105. In Germany the law is the same as in England. payment. Art. 22. The drawer of a Bill of Exchange may Place of or may not indicate a place of payment therein: he may also indicate an alternative place of payment.1 NOTE.-By French Code, Art. 110, and German Exchange Law, Art. 4, the place of payment must be stated. As to the effect of the drawer stating or not stating a place of payment, see Art. 166. Presentment for Payment. Explanation. The drawer of a bill may make it payable at the house or place of business of some person other than the drawee.2 ILLUSTRATION. A. may draw a bill on B., in Liverpool, payable at Messrs. X. & Co.'s, bankers, London. NOTE. The person at whose house or place of business a bill is drawn or accepted payable is sometimes called the "domiciliary," from the French term "domiciliaire," and the bill is said to be "domiciled" where payable. Inchoate Bills. 3 signatures. Art. 23. A mere signature on a blank stamped Blank paper is a prima facie authority to the person to whom it is given to fill it up as a bill for any amount the stamp will cover, using the signature at his option, either as the drawer's or the acceptor's;5 and if the bill when complete be negotiated to a holder for value without notice, the presumption of authority becomes absolute." 1 Bayley; Chitty; Story. Cf. Pollard v. Herries (1803), 3 B. & P. 335. 2 Cf. French Code, Art. 111. 3 Hatch v. Searles (1854), 2 Sm. & G. at 152, 153. 4 Cf. Baxendale v. Bennet (1878), 3 L. R. Q. B. D. 525, C. A. (stolen bill). 6 Hatch v. Searles, suprà; Foster v. Mackinnon (1869), 4 L. R. C. P. at 712. Blank ILLUSTRATIONS. signatures. 1. A. draws a bill on B. payable to or order. Any bonâ fide holder may write his own name in the blank, and sue on the bill.1 2. B., who is indebted to X., gives him an acceptance for 1007. on a blank paper. X. dies. His administrator fills up the paper as a bill payable to drawer's order, inserting his own name as drawer. He can sue B. on the bill. Explanation 1.-As between immediate parties (Art. 88) the bill must be filled up within a reasonable time. Reasonable time is a question of fact.* Explanation 2.-As between immediate parties the bill must be filled up and negotiated in accordance with the authority given." ILLUSTRATIONS. 1. B. and X. sign as makers a joint and several note, with blanks for the date and payee's name. B. signs on condition that the note shall only be issued if Y. also will join as maker. Y. refuses. X., who is in possession of the note, represents to C. that he has authority to issue it. He fills in C.'s name as payee, and transfers the note to him for value. C. cannot sue B.6 2. B. gives X. a blank acceptance for 500l., in order that he may get it discounted for him. X. has the bill filled up as payable to drawer's order, and gets A. to sign as drawer and indorser in a fictitious name. X. then negotiates the bill, and it gets into the hands of E., who takes it bonâ fide for value and without notice. None of the money reaches B.'s hands. E. can sue B.' Explanation 3.-The bill takes effect and the liabilities of the parties accrue from the time it is 1 Crutchley v. Mann (1814), 5 Taunt. 529; Cf. Art. 9. Scard v. Jackson (1876), 34 L. T. N. S. 65. 3 Mulhall v. Neville (1852), 8 Exch. 391; Montague v. Perkins (1853), 22 L. J. C. P. 187. Temple v. Pullen (1853), 8 Exch. 389. Awde v. Dixon (1851), 6 Exch. 869; Hatch v. Searles (1854), 2 Sm. & G. 147, at 152; Hanbury v. Lovett (1868), 18 L. T. N. S. 366. 6 Awde v. Dixon, ante. 7 Schultz v. Astley (1836), 2 Bing. N. C. 544. |