Discharge

PART I.

Short title.

Interpretation of

terms.

An Act to codify the Law relating to Bills of Exchange,
Cheques, and Promissory Notes.

[Assented to, September 10th, 1884.]

HEREAS it is desirable to codify the law relating to bills of exchange, cheques, and promissory notes-Be it therefore Enacted by the Governor of South Australia, with the advice and consent of the Legislative Council and House of Assembly of the said Province, in this present Parliament assembled, and by the authority of the same, as follows:

PART I.
PRELIMINARY.

1. This Act may be cited as the Bills of Exchange Act, 1884.

2. In this Act unless the context otherwise requires

66

Acceptance means an acceptance completed by delivery or notification:

"Action" includes counter-claim and set-off:

"Banker"

The Bills of Exchange Act.-1884.

"Banker" includes a body of persons, whether incorporated or not, who carry on the business of banking:

"Bearer " means the person in possession of a bill or note which is payable to bearer:

"Bill" means bill of exchange, and "note" means promissory

note:

"Delivery" means transfer of possession, actual or constructive, from one person to another:

"Foreign Bill" means every bill of exchange which is not an inland bill:

"Holder" means the payee or indorsee of a bill or note who is
in possession of it, or the bearer thereof:

"Indorsement" means an indorsement completed by delivery:
"Insolvent " means any person whose estate is vested in a
trustee or assignee under the law for the time being in force
relating to insolvency, or by virtue of any assignment for the
benefit of creditors under the Statute No. 16 of 1860, or
other the law for the time being in that behalf:

"Issue" means the first delivery of a bill or note, complete in
form to a person who takes it as a holder:

"Person" includes a body of persons whether incorporated or

not:

"Province" means the Province of South Australia:

66 Value" means valuable consideration:

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

“Australia” shall include the whole of the Australian Continent, Tasmania, New Zealand, and Fiji, and all islands adjacent thereto which are portions of Her Majesty's dominions.

PART I.

PART II.

BILLS OF EXCHANGE.

Form and Interpretation.

defined.

PART II.

3. (1.) A bill of exchange is an unconditional order in writing, Bill of exchange 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.

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

PART II.

Inland and foreign bills.

Effect where different

The Bills of Exchange Act.-1884.

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
has been given therefor:

any

value

(c.) That it does not specify the place where it is drawn or the place where it is payable.

4. An inland bill is a bill which is or on the face of it purports to be (a.) both drawn and payable within Australia, or (b.) drawn within the province 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 parties to bill are the drawer; or it may be drawn payable to, or to the order of, the drawee.

same person.

Address to drawee.

Certainty required as to payee.

What bills are negotiable.

(2.) Where in a bill drawer and drawee are the same person, or where the drawee is a fictitious personor 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.

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.

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

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

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.

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

The Bills of Exchange Act.-1884.

(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.

PART II.

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

(b.) 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.

Bill payable on demand.

11. A bill is payable at a determinable future time within the Bill payable at a meaning of this Act 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 happen

ing may be uncertain.

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

future time.

12. Where a bill expressed to be payable at a fixed period after Omission of date in

date bill payable after date.