to be decided by a jury under instructions from the court;"" in determining the question, regard must be had to the interests of the parties." The question is ordinarily dependent on the facts of the case, and no fixed rule can be laid down as to what is reasonable time." In the absence of general usage fixing the time for presentment, the bill must be presented without unreasonable delay, or the drawer and indorsers will be discharged." 13. Place of Presentment for Acceptance. - The general rule is that presentment should be made at the residence (the domicil) of the drawee, unless a particular place be mentioned in the bill, then presentment should be made there." A presentment for acceptance made to the drawee at any place where he may be found, even if on the street, is valid, because the only purpose of such acceptance is to ascertain whether the drawee will assent to the order of the drawer by accepting the bill. Reasonable diligence must be used to find the drawee. If presentment be made at the drawee's place of business, it must be during business hours on a business day; if made at the drawee's residence, it must be made before the usual hour for retiring. 14. Acceptance Supraprotest. - Where a bill of exchange has been protested for dishonor by non-acceptance, or protested for better security, and is not overdue, any person, not being a party already liable thereon, may, with the consent of the holder, intervene and accept the bill supraprotest, for the honor of any party liable thereon, or for the honor of the person for whose account the bill is drawn." Acceptance for honor is an undertaking by a stranger to the bill to bind himself to pay it when due, if the drawee do not; it is equivalent to say to the holder of the bill "keep this bill, do not return it, and when the time arrives at which it ought to be paid, if it be not paid 629 Moo. P. C. Cas. (Eng.) 46 (1854). 634 Mas. (U. S.) 336 (1827). 647 Taunt. (Eng.) 397. 65 19 Conn. 136 (1818). 66 27 Pa. 219 (1856). 67 Eng. B. of E. Act, Sec. 65; Can. B. of E. Act, Sec. 64; N. Y. N. I. L., Sec. 280; Pa. N. I. L., Sec. 161. by the party on whom it was originally drawn, come to me, and you shall have the money.""" An acceptance for honor supraprotest must be written on the bill and indicate that it is such an acceptance, and it must be signed by the acceptor for honor. A bill may be accepted for honor for part only of the sum for which it is drawn," and where there has been an acceptance for honor for one party, there may be a further acceptance by a different person for the honor of another party." The holder may refuse to allow acceptance for honor, for he may wish to exercise his immediate right of recourse which arises on non-acceptance." Where an acceptance for honor does not expressly state for whose honor it is made, it is deemed to be acceptance for the honor of the drawer." Where a bill payable after sight is accepted for honor, its maturity is calculated from the date of the noting for non-acceptance and not from the date of the acceptance for honor." PROMISSORY NOTES COMMON FORM 15. The ordinary form of a promissory note is one of the simplest and best known of the simple contract instruments. No particular form of words is necessary to constitute a note, provided it contain a promise, or be such a form of words from which an intent of the maker to pay can be construed. The following is a common form of a negotiable promissory note: $100. SCRANTON, PA., January 1, 1902. Sixty days after date, I promise to pay John Jones, or order, One Hundred Dollars, value received. = (Signed) JOHN SMITH. In this form, John Smith is the maker and John Jones is = 687 B. & C. (Eng.) 468 (1827). 69 Eng. B. of E. Act, Sec. 65 (2); Can. B. of E. Act, Sec. 64. 70 N. Y. N. I. L., Sec. 280; Pa. N. I. L., Sec. 161. 11 Chal. Dig. B. of E. Act (5th Ed.), p. 226. 72 Eng. B. of E. Act, Sec. 65 (4); Can. B. of E. Act, Sec. 64 (4); N. Y. N. I. L., Sec. 282; Pa. N. I. L., Sec. 163. 73 Eng. B. of E. Act, Sec. 65 (5); N. Y. N. I. L., Sec. 285; Pa. N. I. L., Sec. 166. the payee of the note. If Jones were to indorse the note to James Robinson, the latter would be indorsee, or holder, and Jones would be the indorser.' If intended to be payable at a bank, the words "at the Traders National Bank, of Scranton, Pa." (or other bank), should be added after the words "value received" or the words "Payable at the Traders National Bank, of Scranton, Pa." (or other bank), written in the lower left corner of the paper. Generally, the form is immaterial, though in business the usual and common form of a note is used. Where a note omits the place where made and the place where payable, its negotiability is not affected; nor does the omission of "value received," or the date, affect its negotiable character.3 An instrument in these terms, "For value received of A. B., or order, $30 on demand," is a promissory note, for it contains an implied promise' and has the other requisites of a note. A bank-note, which is defined "a promissory note, payable to bearer on demand, issued by a bank under authority of law as a circulating medium," though like a promissory note in form, differs from the latter principally in being intended to circulate as money for an indefinite time, as its definition imports." A note is a promise to pay certain sum in money and cannot promise to do anything in addition; if it do, it is not a negotiable promissory note." But, by statute law in the United States,' the negotiable character of a promissory note, or any other instrument, is not affected, if it authorize the sale of collateral securities in case the instrument be not paid at maturity; or if it contain a confession of judgment; or waive the benefit of any law intended for the advantage or protection of the obligor; or if it give the holder an election to require something to be done in lieu of the payment of money.* 1 See subtitle Parties supra. 2 See subtitles Formal Essentials, Signature, supra. 3 N. Y. N. I. L., Sec. 25; Pa. N. I. L., Sec. 6. 4 19 Vt. 308 (1847). 5 See subtitles General Remarks, Definitions, supra. 64 Exch. (Eng.) 410 (1849). 7 N. Y. N. I. L., Sec. 24; Pa. N. I. L., Sec. 5. 8 Ibid., 57 N. Y. 573 (1874). An instrument in the form of a note payable to the maker's order is not a note, until indorsed by the maker. If the maker indorse it in blank, or if he indorse it to a person, naming the person, it will be a note." 10 By English and Canadian statute law, a promissory note, which on its face purports to be both made and payable within those countries, is an inland note; any other note is a foreign note." In England, protest is unnecessary on a foreign note; in Canada, protest is unnecessary on a foreign note, except for the preservation of the liabilities of indorsers. A note made in Upper Canada, payable at Montreal, is an inland note.13 12 The following formalities as to bills do not apply to notes: Presentment for acceptance; acceptance; acceptance supraprotest; bills in a set. A promissory note may be made by two or more makers, and they may be liable thereon jointly, or jointly and severally, according to its tenor." JUDGMENT NOTES 16. A judgment note is a promissory note with a confession of judgment added." The shortest form of a judgment note is that which simply includes, besides sufficient words to express a promissory note, words confessing judgment. Where a waiver of rights of inquisition, appeal, and the benefit of exemption laws be added, with also a warrant to a particular attorney, or any attorney, to appear and confess judgment, the form is one in the fullest extent. In most states, it is not necessary to empower an attorney to appear and confess judgment, as the holder of the note can cause it to be entered on application to the clerk of the court of record. Where a warrant of attorney to confess judgment is added to a promissory note, it should especially state its purpose; the grant of authority must be distinctly given. In the form 92 Exch. (Eng.) 13 (1848). 10 17 L. J. C. P. (Eng.) 286 (1848). 11 Eng. B. of E. Act, Sec. 83 (4); Can. B. of E. Act, Sec. 82 (4). 131 U. C. Q. B. 442 (1841). 14 See subtitle Liability supra. 15 See subtitles General Remarks, Definitions, supra. 12 Eng. B. of E. Act, Sec. 89 (4); Can. B. of E. Act, Sec. 88 (4). most used an attorney is often designated by name, and added are the words "or any attorney of any court of record," to appear and make the confession of judgment. A warrant of attorney need not be under seal; when attached to a promissory note, it is usually issued as an unsealed instrument.10 The capacity of persons to make, as well as the capacity to accept, a confession of judgment, is governed by the same rules which govern parties to ordinary commercial paper. Subject to the restrictions and regulations of statute law in the various states, a valid judgment by confession may be entered against a married woman, under a warrant of attorney made by her while single; the warrant being operative when made, it is not revoked by her subsequent marriage." A valid confession of judgment may be made by an agent, on the principle that whatever one may do for himself, he may do by another; and where an agent exceeds his authority by confessing for too great an amount, the judgment is void only as to the excess." An agent's authority to confess judgment must be absolute; the authority cannot be implied to the extent that it is in issuing ordinary instruments. Confession of judgment by one partner of a firm will not bind his copartners; the act will bind no one but the one confessing, even if the confession be under seal and in the name of the firm. To bind a corporation, confession of judgment must be made by one who has been expressly authorized to do it. 18 Where the Usually, confession of judgment is for a debt justly due and owing, when required by statute, but, in the case of a promissory note, judgment confessed would not be vacated on the ground that it was not due when taken." warrant in a promissory note, given in extension of others, authorized the confession of judgment "for such amount as may appear to be unpaid thereon," it was held, in a Pennsylvania case, to authorize judgment to be confessed for only the amount actually due.20 16 92 Pa. 428 (1880). 172 Pa. 234 (1845). 1851 Pa. 292 (1865). 20 164 Pa. 481 (1894). |