d. Effect of Failure to Verify [§ 1238] p 950 e. Objections and Waiver Thereof [ 1239] p 951 D. Replication and Subsequent Pleadings [§§ 1240-1243] p 951 a. Necessity for [§ 1240] p 951 b. Sufficiency [§ 1241] p 952 e. Verification [§ 1242] p 954 2. Rejoinder [§ 1243] p 954 E. Amendments [ 1244-1245] p 954 1. Of Complaint [§ 1244] p 954 2. Of Answer [§ 1245] p 956 F. Issues, Proof, and Variance [§§ 1246-1286] p 957 1. Issues [1246] p 957 2. What Must Be Proved [§§ 1247-1249] p 957 a. In General [§ 1247] p 957 b. Matters Admitted [1248] p 958 c. Surplusage [§ 1249] p 959 3. Admissibility of Evidence as Dependent on the Pleadings [§§ 1250-1263] p 960 a. In General [§ 1250] p 960 b. Evidence Admissible under Complaint [§§ 1251-1257] p 960 (1) In General [§ 1251] p 960 (2) Execution [§ 1252] p 960 (3) Ownership and Transfer [§ 1253] p 960 (4) Consideration [§ 1254] p 961 (5) Presentment, Protest, and Notice of Dishonor [§ 1255] p 961 (6) Amount Due [ 1256] p 961 (7) Attorney's Fees [ 1257] p 961 c. Evidence Admissible under Answer [§§ 1258-1262] p 961 (1) In General [§ 1258] p 961 (2) Fraud [§ 1259] p 962 (3) Plea of Nonexecution [§ 1260] p 963 (4) Plea of Want, Failure, or Illegality of Consideration [§ 1261] p 963 (5) Plea of Payment [§ 1262] p 964 d. Evidence Admissible under, or in Absence of, Reply [§ 1263] p 964 4. General Issue and What Defenses Must Be Specially Pleaded [§§ 1264-1270] p 965 a. In General [§ 1264] p 965 b. Want, Illegality, or Failure of Consideration [§ 1265] p 965 e. Fraud [§ 1266] p 966 d. Ownership and Right to Sue [§ 1267] p 966 e. Bona Fide Holder [ 1268] p 967 f. Protest and Notice [§ 1269] p 967 g. Payment [§ 1270] p 967 5. Variance [§§ 1271-1286] p 968 a. In General [§ 1271] p 968 b. Description of Instrument [§§ 1272–1282] p 968 (1) In General [§ 1272] p 968 (2) Pleading According to Legal Effect [§ 1273] p 969 (3) Words of Negotiability [§ 1274] p 970 (4) Time of Execution [§ 1275] p 970 (5) Place of Execution [§ 1276] p 971 (6) Description of Parties [§ 1277] p 971 (7) Amount [§ 1278] p 973 (8) Interest [§ 1279] p 974 (9) Time of Payment [§ 1280] p 974 (10) Place of Payment [§ 1281] p 975 (11) Mode and Form of Payment [§ 1282] p 975 c. Consideration [§ 1283] p 975 d. Indorsement or Transfer [§ 1284] p 976 e. Presentment, Protest, and Notice [§ 1285] p 977 f. Allegations in Answer [§ 1286] p 978 XXXI. EVIDENCE [§§ 1287-1365] p 979 A. Presumptions and Burden of Proof [ 1287-1332] p 979 1. In General [§ 1287] p 979 2. Attorney's Fees [§ 1288] p 980 3. Bona Fide Holder in Due Course [§§ 1289-1295] p 980 a. In General [§ 1289] p 980 b. Rebuttal of Presumption [§§ 1290-1294] p 982 (1) In General [§ 1290] p 982 (2) Negotiable Instruments Law [§ 1291] p 983 (3) Fraud or Illegality [§ 1292] p 984 (4) Illegal Consideration [§ 1293] p 987 (5) Want or Failure of Consideration [§ 1294] p 987 c. Burden as Shifted Back to Defendant to Show Notice [§ 1295] p 988 4. Consideration [§§ 1296-1299] p 990 a. Presumptions [§§ 1296-1298] p 990 (1) In General [§ 1296] p 990 (2) Nonnegotiable Paper [§ 1297] p 993 b. Burden of Proof [$ 1299] p 994 5. Discharge [§ 1300] p 997 6. Drawing and Acceptance of Bill [§ 1301] p 997 b. Place [1303] p 1000 c. Time [§ 1304] p 1000 d. Execution by Agent [§ 1305] p 1000 e. Delivery and Acceptance [§ 1306] p 1001 8. Foreign Law and What Law Governs [§ 1307] p 1002 9. Nature of Liability [§ 1308] p 1002 10. Ownership, Indorsement, and Transfer [§§ 1309-1316] p 1003 (1) In General [§ 1309] p 1003 (2) Note Payable to Order and Not Indorsed [§ 1310] p 1006 (4) Conclusiveness of Presumption [§ 1312] p 1007 b. Presumption as to Time of Transfer or Indorsement [§ 1313] p 1008 c. Presumption as to Place of Indorsement [§ 1314] p 1009 d. Presumption as to Order of Indorsements [§ 1315] p 1009 e. Burden of Proof [§ 1316] p 1010 11. Payment [§§ 1317-1323] p 1011 a. In General [§ 1317] p 1011 b. Presumption from Lapse of Time [§ 1318] p 1013 c. Effect of Possession [§§ 1319–1320] p 1014 (1) By Maker or Acceptor [§ 1319] p 1014 (2) By Payee or Plaintiff [§ 1320] p 1014 d. Receipt or Indorsement of Credits [ 1321] p 1015 e. Authority to Receive Payment [§ 1322]p 1015 f. Presumptions as Rebuttable [§ 1323] p 1016 12. Presentment, Protest, and Notice of Dishonor [§§ 1324-1332] p 1016 a. In General [§ 1324] p 1016 b. Time of Day When Demand Made [ý 1325] p 1017 c. Acts of Notary in General [§ 1326] p 1017 d. Notice by Mail [§ 1327] p 1017 e. Residence of Indorser [§ 1328] p 1018 f. Waiver [ 1329] p 1018 g. New Promise after Dishonor [§ 1330] p 1018 h. Excuse for Failure or Delay [§ 1331] p 1019 i. Effect of Delay [§ 1332] p 1019 B. Admissibility [§§ 1333-1356] p 1020 1. In General [§ 1333] p 1020 2. Acceptance [§§ 1334-1335] p 1021 a. In General [§ 1334] p 1021 b. Conditional Acceptance [§ 1335] p 1021 3. Authority of Agent [§ 1336] p 1022 4. Bona Fide Holder [§§ 1337-1338] p 1022 a. In General [§ 1337] p 1022 b. Good Faith and Knowledge of Defenses [§ 1338] p 1022 5. Consideration [§ 1339] p 1024 6. Date [§ 1340] p 1026 7. Duress, Undue Influence, and Mistake [§ 1341] p 1027 8. Execution and Delivery [§§ 1342-1344] p 1027 a. Proof of Execution [§ 1342] p 1027 b. Proof of Nonexecution or Forgery [§ 1343] p 1028 c. Delivery [ 1344] p 1030 9. Fraud [ 1345] p 1030 10. Indorsement [§ 1346] p 1031 11. Instrument Sued On [§ 1347] p 1031 12. Nature of Liability and Relation between Parties [§ 1348] p 1032 13. Ownership [§ 1349] p 1034 For later cases, developments and changes in the law see cumulative Annotations, same title, page and note number. 14. Presentment and Notice of Dishonor [§§ 1350-1354] p 1035 b. Certificate of Protest [§ 1351-1352] p 1036 (1) At Common Law [§ 1351] p 1036 (2) Under Statutes [§ 1352] p 1036 c. Secondary Evidence, and Records of Notary [§ 1353] p 1040 d. Waiver [ 1354] p 1041 15. Release or Payment [§ 1355] p 1041 16. Competency of Party to Instrument to Impeach Its Validity [§ 1356] p 1043 C. Weight and Sufficiency [§§ 1357-1365] p 1044 1. In General [§ 1357] p 1044 2. Bona Fide Purchaser in Due Course [§ 1358] p 1046 3. Consideration [§ 1359] p 1048 4. Execution and Delivery [§ 1360] p 1050 5. Fraud, Mistake, Duress, and Undue Influence [§ 1361] p 1052 6. Nature and Extent of Liability [§ 1362] p 1053 7. Ownership [§ 1363] p 1054 8. Presentment, Demand, Protest, and Notice [§ 1364] p 1055 9. Payment and Satisfaction [§ 1365] p 1056 XXXII. TRIAL, JUDGMENT, AND REVIEW [§§ 1366-1415] p 1058 1. In General [§ 1366] p 1058 2. Producing Instrument [§ 1367] p 1058 3. Order of Proof [ 1368] p 1059 4. Offer of Proof by Defendant [§ 1369] p 1060 5. Effect of Introducing Note in Evidence [§ 1370] p 1060 B. Province of Court and Jury [§ 1371-1393] p 1060 1. In General [§ 1371] p 1060 2. Acceptance [§ 1372]p 1061 3. Agreements and Conditions [§ 1373] p 1061 4. Alteration [§ 1374] p 1061 5. Attorney's Fees [ 1375] p 1061 6. Bona Fide Holder [§ 1376]p 1061 7. Cancellation, Revocation, and Discharge [§ 1377] p 1063 8. Consideration [§ 1378] p 1064 9. Diversion [§ 1379] p 1065 10. Execution and Delivery [§ 1380] p 1065 11. Exhaustion of Remedy against Maker [§ 1381] p 1065 12. Fraud [§ 1382] p 1065 13. Identification of Instrument Sued On [§ 1383] p 1066 15. Indorsement [§ 1385] p 1066 16. Interpretation of Instrument [§ 1386] p 1066 17. Liability of Irregular Indorser [§ 1387] p 1067 18. Notice of Dishonor [§ 1388] p 1067 19. Payment [§ 1389] p 1068 20. Presentment and Demand [§ 1390] p 1069 21. Reasonable Time before Dishonor of Demand Paper [§ 1391] p 1070 22. Title and Ownership [§ 1392] p 1071 23. Waiver of Demand or Notice [§ 1393] p 1071 C. Instructions [§§ 1394-1404] p 1071 1. In General [§ 1394] p 1071 2. Bona Fide Purchasers [§ 1395] p 1073 3. Burden of Proof and Sufficiency of Evidence [§ 1396] p 1075 4. Consideration [§ 1397] p 1077 5. Execution or Delivery [§ 1398] p 1078 6. Fraud [§ 1399] p 1079 7. Indorsement Other Than for Transfer [§ 1400] p 1080 8. Ownership [§ 1401] p 1080 9. Payment or Discharge [§ 1402] p 1081 10. Presentment, Demand, and Notice [§ 1403] p 1081 11. Ratification [§ 1404] p 1082 D. Verdict and Findings [§ 1405] p 1082 E. Judgment [§§ 1406-1413] p 1084 1. In General [§ 1406] p 1084 2. Judgment as Authorized by Verdict or Findings [§ 1407] p 1085 3. Joint or Separate [§ 1408] p 1085 4. Medium of Payment [§ 1409] p 1086 5. Including Interest and Damages for Nonpayment [§ 1410] p 1086 6. Against Principal and Surety [§ 1411] p 1086 7. By Default [§ 1412] p 1087 8. Enforcement [§ 1413] p 1088 F. Appeal and Error [§§ 1414-1415] p 1088 1. In General [§ 1414] p 1088 2. Objections Not Urged in Lower Court [§ 1415] p 1089 XXXIII. AMOUNT OF RECOVERY [§§ 1416-1450] p 1089 1. Rule Stated [§ 1416] p 1089 2. As Dependent on Amount Paid for Instrument [§§ 1417-1418] p 1090 b. In Action against Assignor or Indorser [§ 1418] p 1091 3. Effect of Credits [§ 1419] p 1092 4. Effect of Collateral Security [§ 1420] p 1092 5. After Judgment against Maker [§ 1421] p 1092 6. As Dependent on Currency Made Payable in [§ 1422] p 1092 B. Interest [§ 1423–1429] p 1093 1. General Rules [§ 1423] p 1093 2. Parties Liable [§ 1424] p 1094 3. Time from Which Interest Runs [§§ 1425-1426] p 1094 ![[ocr errors]](https://books.google.co.kr/books/content?id=8308AAAAIAAJ&hl=ko&output=html_text&pg=PA31&img=1&zoom=3&q=%22or+both,+according+to+its+tenor,+and+that+if+it+be+dishonored+and+the+necessary+proceedings+on+dishonor+be+duly%22&cds=1&sig=ACfU3U2EezjJFpOaZZEPASBgyfjz-xk0QA&edge=0&edge=stretch&ci=489,472,5,5){kind=small} b. Demand Notes [ 1426] p 1095 4. Rate [ 1427] p 1096 5. Mode of Computation [§ 1428] p 1096 C. Attorneys' Fees [ 1430-1439] p 1097 1. In General [§ 1430] p 1097 2. Who May Enforce [1431] p 1098 3. Persons Liable [§ 1432] p 1098 4. Conditions Precedent [§ 1433] p 1098 5. Defenses [§ 1434] p 1100 6. Amount [§§ 1435-1438] p 1101 a. In General [§ 1435] p 1101 b. Fee Fixed by Instrument as Conclusive [§ 1436] p 1101 e. Amount Which Is Basis for Computation [§ 1437] p 1102 7. Necessity for Separate Action to Collect [§ 1439] p 1103 D. Costs of Protest [§ 1440] p 1103 E. Costs of Another Suit [§ 1441] p 1104 F. Exchange and Reëxchange [§§ 1442-1446] p 1104 1. Definition [§ 1442] p 1104 2. Right to and Amount [§§ 1443-1445] p 1104 a. Foreign Bills [§ 1443] p 1104 b. Notes [ 1444] p 1106 c. Interstate Bills [§ 1445] p 1106 3. Liability of Acceptors [§ 1446] p 1107 ![[blocks in formation]](https://books.google.co.kr/books/content?id=8308AAAAIAAJ&hl=ko&output=html_text&pg=PA31&img=1&zoom=3&q=%22or+both,+according+to+its+tenor,+and+that+if+it+be+dishonored+and+the+necessary+proceedings+on+dishonor+be+duly%22&cds=1&sig=ACfU3U2EezjJFpOaZZEPASBgyfjz-xk0QA&edge=0&edge=stretch&ci=350,1026,219,16){kind=small} Accord and satisfaction, acceptance of as see Accord Arbitration notes see Arbitration and Award § 710. Attachment of see Attachment § 353. Banking, rules peculiar to see Banks and Banking [7 Bankruptcy of party to, effect of see Bankruptcy [7 Bills of lading see Carriers [6 Cyc 416, 424]; Shipping Bonds: In general see Bonds [5 Cyc 721]. Of corporations see Corporations [10 Cyc 1167-1181]. Of municipalities see Municipal Corporations [28 Building and loan bills and notes see Building and Cancellation of by court see Cancellation of Instru ments [6 Cyc 288]. Certificates: Of receiver see Receivers [34 Cyc 302]. Of school district see Schools and School Districts [35 Cyc 985]. Of stock see Corporations [10 Cyc 364-649]. Compromise notes as prima facie evidence of full set- Conversion of see Trover and Conversion [38 Cyc 2012, Corporations, power to execute and transfer, and validity of see Corporations [10 Cyc 1111, 1115, 1116, 1118. 1120]. Counties: Power to issue see Counties [11 Cyc 549]. Coupons see Bonds [5 Cyc 721, 780]. Customs and usages in regard to see Customs and For later cases, developments and changes in the law see cumulative Annotations, same title, page and note number. ![[blocks in formation]](https://books.google.co.kr/books/content?id=8308AAAAIAAJ&hl=ko&output=html_text&pg=PA32&img=1&zoom=3&q=%22or+both,+according+to+its+tenor,+and+that+if+it+be+dishonored+and+the+necessary+proceedings+on+dishonor+be+duly%22&cds=1&sig=ACfU3U1ETdhhgGkCMxdzo8hxTlLz6OMY_Q&edge=0&edge=stretch&ci=52,80,487,51){kind=small} As accord and satisfaction see Accord and Satisfaction [1 C. J. p 520]. As account stated see Accounts and Accounting As assignment of fund see Assignments §§ 81-87. As compromise and settlement see Compromise and As evidence in action other than action on instru- As gift see Gifts [20 Cyc 1205, 1240]. As payment see Payment [30 Cyc 1194, 1207, 1285]; and see §§ 793-797 in this article. As settlement of accounts see Accounts and Accounting [1 C. J. 588]. Erasures in see Alteration of Instruments [2 C. J. p 11681: effect of as defense see §§ 1010-1014 in this article. Executions against see Executions [17 Cyc 971]. Executors and administrators, power to make and transfer see Executors and Administrators [18 Cyc 252, 358, 1203]. False pretenses on giving see False Pretenses [19 Cyc 402, 410]. Forgery as subject of see Forgery [19 Cyc 1384]; as defense see § 1028-1030 in this article. Fraudulent conveyances see Fraudulent Conveyances [20 Cyc 353, 433, 493, 625]. Gambling debts see Gaming [20 Cyc 933, 935, 937]. Guaranty generally see Guaranty [20 Cyc 1403, 1413, 1432, 1466, 1467, 1470]. Illegality as affected by particular facts see Gaming [20 Cyc 933, 935, 937]; Sunday [37 Cyc 563]; Usury [39 Cyc 876]; and generally Contracts [9 Cyc 465]. Injunction against negotiation see Injunctions [22 Cyc 840]. Insurance notes see Fire Insurance [19 Cyc 611]; Life Insurance [25 Cyc 756]. Interest coupons see Bonds [5 Cyc 780]; Municipal Corporations [28 Cyc 1592]. Judgment notes, except as to negotiability see Judgments [23 Cyc 704]. Larceny of see Larceny [25 Cyc 14]. Letters of credit see Banks and Banking § 237. Liens, waiver of by accepting bill or note see Logging [25 Cyc 1591; Maritime Liens [26 Cyc 792]; Mechanics' Liens [27 Cyc 267]. Lost paper, actions on see Lost Instruments [25 Cyc 1607]. Merger in account stated see Accounts and Accounting § 331. Mortgage of see Chattel Mortgages [6 Cyc 1038]. Municipal warrants and bonds see Municipal Corporations [28 Cyc 1567-1572, 1575-1640]. National banks see Banks and Banking §§ 574-855. Notaries generally see Notaries [29 Cyc 1081, 1082, 1101]. ![[blocks in formation]](https://books.google.co.kr/books/content?id=8308AAAAIAAJ&hl=ko&output=html_text&pg=PA32&img=1&zoom=3&q=%22or+both,+according+to+its+tenor,+and+that+if+it+be+dishonored+and+the+necessary+proceedings+on+dishonor+be+duly%22&cds=1&sig=ACfU3U1ETdhhgGkCMxdzo8hxTlLz6OMY_Q&edge=0&edge=stretch&ci=52,862,492,146) Parol evidence as to see Evidence [17 Cyc 495, 589, 644, 655, 718]. Payable in goods, merchandise, or services, as simple contract see Contracts [9 Cyc 231]. Payment by see Payment [30 Cyc 1194]; and see 88 792-797 in this article. Pledges of see Pledges [21 Cyc 793, 807, 839, 863]; and see, as to making holder a holder in due course §§ 702, 703 in this article. Premium notes see Fire Insurance [19 Cyc 611]; Life Insurance [25 Cyc 756]. Receiver's certificates see Receivers [34 Cyc 302]. Shares of stock see Corporations [10 Cyc 589, 629]. Statute of frauds see Frauds, Statute of [20 Cyc 166, 169, 185, 244, 253, 257]. Statute of limitations see Limitations of Actions [25 Sureties generally see Principal and Surety [32 Cyc 1]. Tender see Tender [38 Cyc 154]. Time, general rules as to see Time [38 Cyc 306]. Trover to recover see Trover and Conversion [38 Cyc 2012]. United States as party to see United States [39 Cyc 742]. Usury see Usury [39 Cyc 903, 928, 956-969, 1009, 1081]. Venue of actions on see Venue [40 Cyc 104]. Warehouse receipts see Warehousemen [40 Cyc 414, 422]. Who may execute, transfer, etc.: Administrator see Executors and Administrators [18 Cyc 252, 358-1203]. Building and loan society see Building and Loan Societies [6 Cyc 156]. City or village see Municipal Corporations [28 Cyc 1570-1576]. Corporations see Corporations [10 Cyc 1111, 1115, 1116, 1118, 1120]. County see Counties [11 Cyc 549]. Executor see Executors and Administrators [18 Cyc 252, 358, 1203]. Infant see Infants [22 Cyc 587, 588]. Insane person see Insane Persons [22 Cyc 1196]. Married woman see Husband and Wife [21 Cyc 1175, 1178. 1280, 1283, 1316-1318, 1322, 1407, 1457, 1462, 1680]. Municipal corporations see Municipal Corporations [28 Cyc 1576]. Partnership see Partnership [30 Cyc 504, 509, 512, 513, 515, 668]. Railroad company see Railroads [33 Cyc 443]. School district see Schools and School Districts [35 Cyc 987]. Town see Towns [38 Cyc 647]. Unincorporated association see Associations § 55; Joint Stock Companies [23 Cyc 470, 471]. Witnesses, competency in general see Witnesses [40 Cyc 2287, 2324]. ARTICLE tion is called, however, to the fact that certain phases of the law of bills and notes are not included herein or at least only incidentally.2 DEFINITIONS 3 [2] A. Law Merchant.* The law merchant, which originated in the unwritten customs of merchants, and was at first confined to mercantile transactions between merchants residing in different 1. See supra p 31 et seq. 2. [a] The power of certain companies or persons to execute or indorse bills and notes is considered in the articles relating to such particular companies or persons, such as Agency, Corporations, Partnership, Executors and Administrators, Infants, etc. See cross references supra p 31. [b] Banking.-Matters relating to banking, although a bill or note is involved, are, for the most part, treated of under Banks and Banking 7 C. J. p 1. [c] Guarantors and sureties.-The general rights and liabilities of sureties on notes, other than regular indorsers, are included in Principal and Surety [32 Cyc 1], while the general places, is a body of law relating to certain mercantile transactions and instruments of widespread use, now incorporated into, and regarded by us as 3. Negotiability see infra § 51. 4. Judicial notice of see Evidence [16 Cyc 888]. rights and liabilities of guarantors on notes are considered in the article Guaranty [20 Cyc 1392]. However, certain phases of the law peculiar 5. Sarsfield v. Witherly, Carth._82, to commercial paper are considered 90 Reprint 652; Oaste v. Taylor, Cro. herein. Jac. 306, 307, 79 Reprint 262. See [d] Payment. The effect of giv-also Scrutton Merc. L. 12, 13, 29. ing a bill, check, or note, as consti- 6. Bromwich v. Loyd, 2 Lutw. 1582. tuting payment, is treated of under 1585, 125 Reprint 870 (where Treby, Payment [30 Cyc 1173]. C. J., said: "Bills of exchange at first extended only to merchant strangers trafficking with English merchants; and afterward to inland bills between merchants trafficking the one with the other in England; and afterward to all traders, and then to all persons whether traders or not; and there was then no need to allege any custom of merchants"). [e] Usury. Whether the instrument is usurious is considered in the topic Usury [39 Cyc 876]. [f] Waiver of lien. The acceptance of a bill or note as constituting a waiver of a lien is included in the articles relating to particular liens. See Logging [25 Cyc 1591]; Maritime Liens [26 Cyc 792]; Mechanics' Liens [27 Cyc 267]. 7. 3 Kent Comm. 2 (where in de |