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Inland and foreign bills.

Effect where ditterent parties to bill are the same person.

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.

As to filling in the date in the case of an undated bill or acceptance, see sect. 12. It is, of course, irregular not to date a bill.

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 to any of them being part of the dominions of Her Majesty.

This provision does not affect the Stamp Acts, which are saved by sect. 97 (3). See the provisions of the Stamp Acts as to foreign bills, and what are foreign bills for stamp purposes, post pp. 74, 75. By sect. 51 it is unnecessary to protest a bill which does not shew on the face of it that it is a foreign bill. Sub-sect. (2) is new law.

(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.

A bill is sometimes drawn in the form "pay to your own order," when the drawee acts in two different capacities.

(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 as a promissory

note.

See the definition of "person" in sect. 2. As an illustration, suppose a firm has two houses, one in London, the other in Liverpool. If the London house draws on the Liverpool house, and the bill is dishonoured, the holder need not give notice of dishonour.

6. (1.) The drawee must be named or otherwise indicated in a bill with reasonable certainty.

drawee.

(2.) A bill may be addressed to two or more Address to 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.

required as to

7. (1.) Where a bill is not payable to bearer, the Certainty payee must be named or otherwise indicated therein payee. with reasonable 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.

This section alters the law in so far as it allows a bill to be made payable to one of two persons in the alternative, or to the holder of an office for the time being. Previously a bill payable to "the treasurer "for the time being " of a society would have been invalid.

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

What bills are negotiable.

Sum payable.

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

This subsection adopts the Scotch rule, and a bill made payable to John Smith is now in legal effect payable to John Smith or order. If it be desired to make a bill not transferable, it should be drawn in the form "pay John Smith only."

As to when a bill negotiable in its origin ceases to be negotiable, see sect. 36.

(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.

This subsection brings the law into accordance with custom by making a special indorsement control a previous indorsement in blank, see too sect. 34.

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

(a.) With interest.

(b.) By stated instalments.

(c.) By stated instalments, with a provision that Sum payable. 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 amount payable.

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

(1.) A bill is payable on demand

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

) In which no time for payment is expressed.
..) Where a bill is accepted or indorsed when it is
due, it shall as regards the acceptor who so
pts, or any indorser who so indorses it, be
ned a bill payable on demand.

Bill payable on demand.

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A bill is payable at a determinable future time Bill payable at a

In the meaning of this Act which is expressed to
yable-

) At a fixed period after date or sight.

è sect. 14 (2) (3) and sect. 65 (5).

) 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
uncertain.

future time.

Omission of date in bill payable

after date or

sight.

Ante-dating and post-dating.

Computation of

time of payment.

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

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An instrument running "Pay C or order £100 on the arrival of the ship Sarah in London" would not be a bill.

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

The law on the subject dealt with by this section was previously very doubtful. See sect. 20 for the general rule as to omissions in a bill.

13. (1.) Where a bill or an acceptance or any indorsement on a bill is dated, the date shall, unless the contrary 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 ante-dated or post-dated, or that it bears date on a Sunday.

It has been held under the Stamp Act, 1870, which is saved by sect. 97, that a post-dated cheque is not invalid. Apart from the Stamp Acts it is for most purposes a bill payable after date.

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

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