within a reasonable time after issue. (Sec. 131.) What is or is not a reasonable time is difficult to determine. The law says that in determining it "regard is to be had to the nature of the instrument, the usage of the trade or business with respect to such instruments, and the facts of the particular case." The latter clause expresses it as best it can be expressed. The question will depend in every case upon the facts of that case. From one day to a month have been held reasonable, depending upon the facts in each case. Usage of trade or custom will usually guide. By some it has been held to be a question for a jury, by others a question for the court. Better opinion would seem to be that it is a question the determination of which both jury and court must take part in solving. The best advice upon the subject is to act promptly in all matters touching negotiable instruments, both as to negotiating them and in presenting them for acceptance or payment.

PART IX

NOTICE OF DISHONOR

As heretofore pointed out, the law construes the contract of the drawer or the indorser of a draft or note as a distinct promise to every subsequent party who takes the instrument to pay the instrument if the acceptor does not. They are not bound to pay until the instrument has been dishonored. When a draft or note has been presented for payment to the acceptor or maker, and demand for the payment made, and it is refused for any reason whatsoever, the instrument is dishonored. (Sec. 143.) This is true, also, where presentment is excused, and the instrument is overdue and unpaid. (Sec. 143.) See, also, when presentment is excused, in Part VIII.

When an instrument has been thus dishonored by non-payment by the parties primarily liable, the parties secondarily liable (drawer and indorsers) become immediately liable thereon, and must pay it, provided they have been duly notified of such dishonor. 144.)

(Sec.

Notice of dishonor. Notice of dishonor, then, is taking the necessary steps to notify the drawer or the indorser of an instrument that such instrument has not been accepted, or has not been paid, and the party notified

is expected to pay it. This notice may be either oral or in writing. (Sec. 167.)

What the notice must contain. There are three formal requisites which a valid notice of dishonor should contain: (1) A description of the dishonored bill or note which will fairly identify it to the mind of the party notified; (2) a statement that it was dishonored; (3) if the notice is written, it ought to contain the name of the party who gives the notice, or the name of the party by whose authority it is given; if oral, this fact ought to be contained in the statement made to the party notified. No particular form is necessary, however, so long as it contains these requirements. (Sec. 167.) Accordingly, a notice that a bill is due and unpaid is sufficient, without formally stating that it was presented for payment. It need not inform the party to be charged that he is looked to for payment; nor need it state where the instrument is-i.e., in whose hands; nor need it be accompanied by a copy of protest. If written, the notice need not be signed, and an insufficient written notice may be supplemented and validated by an oral communication. A misdescription of the instrument does not vitiate the notice, unless the party to whom the notice is given is misled thereby. (Sec. 166.)

Who may give notice. Notice may be given by the holder or by any prior holder or party to the instrument who may be legally liable

to take up the instrument, and who, upon taking it up, would have a right to reimbursement from the party to whom the notice is given. (Sec. 161.)

For instance: A. is the maker, B. the payee, C., D., E., and F. indorsers in their respective order, and G. holder. Upon the instrument's being presented to A. for payment, and dishonored, G., the holder, may give notice to F., and F. may give notice to E., and so on. It is usual for the party giving notice to notify all the parties, but it is not necessary, unless he wishes to hold them. On the other hand, C. may notify B., the payee, as he may become liable, as above stated. If he does notify B., then his notification inures to the benefit of D., E., F., and G., and none of these need notify. And this is true, even though C. had not taken up the note. In the language of the statute: 'Where notice is given by or on behalf of a party entitled to give notice, it inures for the benefit of the holder, and all parties subsequent (who follow) to the party to whom notice is given." (Sec. 164.) So, too, in the illustration given, if G., the holder, notifies B., the payee, C., D., E., and F. need not notify B., because the notice by the holder inures for the benefit of all subsequent holders, and all prior parties who have a right of recourse against the party to whom it is given. (Sec. 163.)

Notice by an agent.

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Notice of dishonor may be given by a duly authorized agent of any

party who might himself give notice. The agent may give this either in his own name or in the name of any of the parties entitled to give notice, whether that party be his principal or not. (Sec. 162.) This is commonly done by banks acting as agents for collection. Where the instrument has been dishonored in the hands of an agent, he (the agent) may give notice to the parties liable thereon, or he may give notice to his principal. If he give notice to his principal, he must do so within the same time as if he were the holder, and the principal, upon receipt of such notice, has himself the same time for giving notice as if the agent had been an independent holder. (Sec. 165.) Notice by a party who can not legally be called upon to take up the bill or note, or a drawee, or a maker, or a mere stranger, is a nullity.

To whom notice should be given. Generally, when an instrument has been dishonored by non-acceptance or non-payment, notice must be given to the drawer and to each indorser; and any drawer or indorser to whom such notice is not given is discharged. (Sec. 160.) Note the statement before made that the parties primarily liable-i.e., the acceptor of a draft, and the maker of a note-are liable, whether notice is sent to them or not.

Agent. Notice may be given to the agent of the party to be charged if the receipt of such notice is within the authority of the agent. (Sec. 168.)