Bill of exchange defined.

Inland and foreign bills.

Effect where different

parties to a bill are the

same person.

"Person," includes a body of persons whether incor

porated or not.

"Value," means valuable consideration.

"Written," includes printed, and "writing" includes print.

Part II.-Bills of Exchange.

FORM AND INTERPRETATION.

3.-(1) A bill of exchange is an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a sum certain in money to or to the order of a specified person, or to bearer.

(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 re-imburse 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.

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 Colony, or (b) drawn within the Colony upon some person resident therein. Any other bill is a foreign bill.

(2) Unless the contrary appear on the face of the bill the holder may treat it as an inland bill.

5.-(1) A bill may be drawn payable to, or to the order of, the drawer; or it may be drawn payable to, or to the order of, the drawee.

(2) Where in a bill the drawer and the 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.

drawee.

6.—(1) The drawee must be named or otherwise indicated Address to 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.

7.-(1) Where a bill is not payable to bearer the payee Certainty must be named or otherwise indicated therein with reason- required as to able certainty.

(2) A bill may be made payable to two or more payees jointly, or it may be made payable in the alternative to one of two, or one or some of several payees. A bill may also be made payable to the holder of an office for the time being.

(3) Where the payee is a fictitious or non-existing person the bill may be treated as payable to bearer.

payee.

are negoti

8.-(1) When a bill contains words prohibiting transfer What bills or indicating an intention that it should not be transferable, aren it is valid as between the parties thereto, but is not negotiable.

(2) A negotiable bill may be payable either to order or to bearer.

(3) A bill is payable to bearer which is expressed to be so payable or on which the only or last indorsement is an indorsement in blank.

(4) A bill is payable to order which is expressed to be so payable or which is expressed to be payable to a particular person, and does not contain words prohibiting transfer or indicating an intention that it should not be transferable.

(5) Where a bill either originally or by indorsement is expressed to be payable to the order of a specified person, and not to him or his order, it is nevertheless payable to him or his order at his option.

9.-(1) The sum payable by a bill is a sum certain Sum payable.

Bill payable on demand.

Bill payable

at a future time.

Omission of date in bill

within the meaning of this Ordinance, although it is required to be paid

(a) With interest.

(b) By stated instalments.

By stated instalments, with a provision, that upon default in payment of any instalment the whole shall become due.

(d) According to an indicated rate of exchange or according to a rate of exchange to be ascertained as directed by the bill.

(2) Where the sum payable is expressed in words and also in figures, and there is a discrepancy between the two, the sum denoted by the words is the amount payable.

(3) Where a bill is expressed to be payable with interest, unless the instrument otherwise provides, interest runs from the date of the bill, and if the bill is undated from the issue thereof.

10.-(1) A bill is payable on demand

(a) Which is expressed to be payable on demand or at sight or on presentation; or

(6) In which no time for payment is expressed.

(2) Where a bill is accepted or indorsed when it is overdue it shall, as regards the acceptor who so accepts or any indorser who so indorses it be deemed a bill payable on demand.

11. A bill is payable at a determinable future time within the meaning of this Ordinance which is expressed to be payable

(1) At a fixed period after date or sight.

(2) On or at a fixed period after the occurrence of a

specified event which is certain to happen, though the time of happening may be uncer

tain.

An instrument expressed to be payable on a contingency is not a bill, and the happening of the event does not cure the defect.

12. Where a bill expressed to be payable at a fixed payable after period after date is issued undated, or where the acceptance

date.

of a bill payable at a fixed period after sight is undated, any holder may insert therein the true date of issue or acceptance, and the bill shall be payable accordingly.

Provided that—

(1) Where the holder in good faith and by mistake
inserts a wrong date, and

(2) In every case where a wrong date is inserted, if
the bill subsequently comes into the hands of a
holder in due course,

the bill shall not be avoided thereby, but shall operate and
be payable as if the date so inserted had been the true
date.

and post

13. (1) Where a bill or an acceptance or any indorse- Ante-dating ment on a bill is dated the date shall, unless the contrary dating. be proved, be deemed to be the true date of the drawing, acceptance or indorsement, as the case may be.

(2) A bill is not invalid by reason only that it is antedated or post-dated, or that it bears date on a Sunday.

14. Where a bill is not payable on demand, the day on Computation which it falls due is determined as follows:

(1) Three days called days of grace are, in every case
where the bill itself does not otherwise provide,
added to the time of payment as fixed by the
bill, and the bill is due and payable on the last
day of grace provided that

(a) When the last day of grace falls on
Sunday, Christmas Day, or Good Friday, the
bill is, except in the case hereinafter provided
for, due and payable on the preceding business
day;

(b) When the last day of grace is a day ap-
pointed by Ordinance, proclamation, notice or
order as a public holiday (other than Christmas
Day or Good Friday) or when the last day of
grace is a Sunday and the second day of grace
is a holiday, the bill is due and payable on the
succeeding business day.

(2) Where a bill is payable at a fixed period after date,
after sight, or after the happening of a specified
event, the time of payment is determined by

of time of payment.

Case of need.

Optional stipulations by drawer or indorser.

Definition and

requisites of acceptance.

Time for acceptance.

excluding the day from which the time is to begin to run and by including the day of payment. (3) Where a bill is payable at a fixed period after sight the time begins to run from the date of the acceptance if the bill be accepted and from the date of noting or protest if the bill be noted or protested for non-acceptance or for nondelivery.

(4) The term "month" in a bill means calendar month.

15. The drawer of a bill and any indorser may insert therein the name of a person to whom the holder may resort in case of need, that is to say, in case the bill is dishonoured by non-acceptance or non-payment. Such person is called the referee in case of need. It is in the option of the holder to resort to the referee in case of need or not as he may think fit.

16. The drawer of a bill and any indorser may insert therein an express stipulation:

(1) Negativing or limiting his own liability to the holder:

(2) Waving as regards himself some or all of the holder's duties.

17.-(1) The acceptance of a bill is the signification by the drawee of his assent to the order of the drawer.

(2) An acceptance is invalid unless it complies with the following conditions, namely:

(a) It must be written on the bill and be signed by the drawee. The mere signature of the drawee without additional words is sufficient.

(6) It must not express that the drawee will perform his promise by any other means than the payment of money.

18. A bill may be accepted

(1) before it has been signed by the drawer or while otherwise incomplete:

(2) when it is overdue or after it has been dishonoured by a previous refusal to accept or by nonpayment: