defendant accepted it by writing an acceptance upon the face of the bill in the usual manner. The bill was afterwards negotiated to the plaintiff. Can he hold the defendant as an acceptor?

$78. A consignor of goods drew a bill upon the consignee for the amount represented by the value of the goods. Upon the bill being presented to the drawee for acceptance he refused to make an unqualified acceptance, but offered to make an acceptance conditional upon the goods being sold, which the holder refused to take. Was the latter justified in treating the bill as dishonored?

§ 80. What is meant by negotiation of a bill or note?

§ 82. What is necessary for the negotiation of a bill or note payable to bearer?

Ashton was the holder of a note payable to bearer. He gave it to his agent, the plaintiff, for the purpose of collection, and the latter being unable to obtain payment from the maker, brought suit against him upon the note. Can the maker show as a defence, want of authority in the plaintiff to sue?

§§ 88-98. What is meant by a special indorsement? An indorsement in blank? A restrictive indorsement? A qualified indorsement? A conditional indorsement?

§ 100. What elements must concur to constitute one "a holder in due course" of a negotiable instrument?

§ 102. Defendant is sued upon a negotiable promissory note by a holder in due course. Can he defend upon the ground that he was an infant at the time he executed the note, this fact not having been known to plaintiff at the time that he took the note?

§§ 102, 103. A banker, in due course of business, is asked to discount a note, the note upon its face appearing regular in all respects, and he having no notice of any facts which might operate to invalidate the note, nor of any fact, which should put him on his guard. If he does not know the maker of the note nor the circumstances of its execution, of what facts should he satisfy himself before taking the note?

§ 108. What is meant by "constructive notice" of defects in a negotiable instrument?

§ 109. Suppose in the case under §§ 102-103, above, that the note had been offered to the banker in question for discount after

the date of its maturity. What further considerations should guide him in deciding whether or not to take the note?

§ 114. A swindler, by fraud, induced defendant to execute and deliver to him two negotiable promissory notes for $50 each. One he sold to plaintiff for $40, and the other he pledged to plaintiff to secure an advance of $25, plaintiff being without notice of the swindler's wrong, and acting bona fide in each case. For what amounts can plaintiff hold defendant liable on the two notes?

§ 117. Dodge was the holder in due course of a negotiable promissory note for $100 made by defendant. After he had obtained it, in due course of business, for value and without notice of defects, he learned that the consideration for which it had been given had failed. Thereupon, knowing that the note was valid in his hands, but not wishing to appear to be taking advantage of the misfortune of defendant, who was a friend of his, he sold and endorsed the note to plaintiff for $28, plaintiff being fully informed of all the facts. Is defendant liable to plaintiff upon the note, and if so, for how much?

§ 124. What is an aval?

§ § 132, 133. A bank which was sued as acceptor of three bills of exchange set up as a defense in one case that the drawer's signature was a forgery; in another that the body of the bill had been materially altered between the time of drawing and accepting; and in the third case that, between the time of drawing and accepting, the body of the bill had been materially altered and the drawer's name erased and re-written, without authority. Which, if any, of these defences is valid?

§ 136. What warranties are made by the seller of a negotiable bill or note?

§ 141. What is the importance of presentment for payment of a bill or note with indorsers?

§ 142. When must presentment be made?

§ 147. Where must presentment be made, when no place of presentment is specified?

§ 151. To whom must presentment be made when several persons, not partners, are primarily liable on the instrument, and no place of payment is specified?

§ 155. After presentment of a bill to the drawee for payment, and its dishonor, what is the next step which is necessary to fix the liability of the drawer (and indorsers, if any)?

§ 162. What is the time within which notice of dishonor must be given, in order to fix the liability of an indorser?

§§ 168-170. What is meant by a foreign bill of exchange?

In the case of a foreign bill of exchange, besides presentment and notice of dishonor, what further act must be performed in order to fix the liability of the drawer (and indorsers, if any)?

§ 172. What is the effect of certification of a check?

§ 173. Within what time must a check be presented for payment in order to preserve the right of recourse on the drawer in case of non-payment by the bank?

§§ 175-177. What is meant by discharge of a negotiable instrument?

What is the effect upon a negotiable instrument of its payment before maturity?

APPENDIX B.

GUARANTY AND SURETYSHIP.

§1. What is meant by a surety or guarantor? What are co-sureties?

§§3, 4. Wilkins makes a promissory note to the order of Mason for $1000. Wilkins' father writes upon the back of the note: "For value received, I hereby guarantee the payment of the within note," signing his name to the words quoted. What are the rights of Mason against the elder Wilkins?

Baker and Talmage executed a bond in form as follows: "Know all men by these presents tha: we, Lewis H. Baker, as principal, and D. W. Talmage, as surety, are firmly bound, etc.," to which they affixed their names and seals. Is Talmage's liability to the obligee direct or collateral?

§ 5. What was the effect of the fourth section of the old English statute of frauds, upon contracts of guaranty and suretyship?

§ 6. Defendant, in order that his son might have credit at plaintiff's store, stated to plaintiff, orally, that he (defendant) would pay for all goods which the son should fail to pay for. Is the defendant's promise within the statute of frauds?

§ 8. Defendant had been asked to preside at a political meeting which had been called for the purpose of aiding the campaign of a friend of his who was a candidate for alderman. Defendant on his own responsibility engaged a band to play at the meeting, agreeing with the band-master that, since there was no one else to whom the musicians could look for payment, he would see that they were paid. Was defendant's promise within the statute of frauds?

§ 9. Defendant was manager of an incorporated Grand Opera Company, for which he worked upon a fixed salary. The company being in failing circumstances and behind in the pay of its musicians, and they threatening to leave, defendant promised them that if they would play at the next performance, he would see that they were paid. Was his promise within the statute of frauds?

§ § 10-12. Plaintiff loaned money to Fielding, taking the latter's note signed also by the defendant as surety. On these facts, is want of consideration available to defendant as a defense to an action against him as surety?

Suppose in the preceding case that the defendant had added his name to the note as surety after the note had been executed and delivered by the principal debtor and the plaintiff had advanced his money. What would be the rights of the latter against the surety?

§§ 13, 14. Defendant agreed with one Lemon to be a surety on the latter's note, and in pursuance of their agreement, Lemon's agent made a promissory note which defendant signed and gave to the agent, authorizing him to negotiate it only upon first obtaining Lemon's signature to it. The agent, without obtaining Lemon's signature, transferred the note to the plaintiff. What are the plaintiff's rights against the defendant?

§ 15. Defendant signed as surety a note payable three months after its date. Afterwards the principal debtor, before negotiating the note, changed the wording so as to make the note payable two months after its date. Does this affect the liability of the surety?

§ 18. Defendant signed a note with another, the form of the note being: "For value received, we, each of us a principal, promise, etc." As against a holder in due course suing on the note, can the defendant show that he is a surety and not a principal?

§ 21. A railroad corporation took a lease of a dwelling house to be occupied by one of its employes, the act being unauthorized by the company's charter and ultra vires. Can the president of the company, who signed the lease individually as a surety, be held

liable for the rent?

§ 24. Defendant, a surety on a note, offered to show as a defence to a suit against him on the note that shortly after the note matured the principal debtor made preparations to leave the state with a large amount of property in his possession, and that the creditor might have begun attachment proceedings and thereby satisfied his claim in full out of the principal debtor's property, instead of which he had taken no steps against the principal debtor and had allowed him to remove his property from the state. Do these facts make a defence?

§§ 26, 27. Is the liability of a surety in anywise affected if the creditor agrees with the principal debtor, without consulting the surety, to extend the time of payment?

§ 31. The maker of a promissory note secured by a mortgage on realty and endorsed by the defendant as surety requested the holder of the note to release the realty, and the latter, thinking himself