giving reasonable notice of his electing not to use it, he is entitled to require repayment of the amount of the letter of credit, if he have paid money into his bankers for it, subject to the conditions already noticed, as to the production of the letter of credit, Conflans Quarry Co. v. Parker, L. R. 3, C. P. 1.

The correspondent to whom a special letter of credit is addressed is bound to cash the drafts made thereupon, if he have arranged with his principal that credits may be opened with him. If he fails to do so, and his principal is condemned in damages, he will be obliged to relieve his principal, on the same principle by which a drawee who has wrongfully refused to accept is bound to relieve a drawer of damages he may have had to pay to a payee in consequence of the non-payment. It is more difficult to say whether a correspondent could be sued by the payee of a letter of credit for payment. The law of England would refuse such a claim, Orr & Barber v. Union Bank, 1 M'Q. 513; but in the same case the Judges of the Court of Session expressed their opinion that a correspondent in Scotland could certainly be sued, if the money to meet the payee's drafts had been transmitted to him, and that he must be taken as holding it for the use of the payee. He would, however, not be liable to the payee, if there were no funds of the granter in his possession, unless he had engaged to the payee to cash his drafts under the letter of credit. The correspondent is entitled to look to the granter for reimbursement of his advances, and acceptance and payment of the drafts, which he has cashed in pursuance of the letter of credit, but he may deprive himself of this right by failing to observe the terms in which the credit is to be given. If he treat a document credit as if it were an open credit, and cash drafts without requiring the bill of lading to be endorsed to him, he has exceeded his mandate, and has no claim for reimbursement. On the other hand, he is not bound to inquire whether there are any other conditions than those set forth in the letter of credit. Thus where a foreign banker cashes drafts on a marginal credit, it is not

relevant to allege that he ought to have inquired whether it is not really a document credit, though expressed without any qualification. But if the banker know that the letter of credit is really a document credit, though not so expressed, he is bound to act on that knowledge and he cannot disregard it except at his peril, Maitland v. Chartered Mercantile Bank of India, London, and China, 2 Hem. and Mill, 440. Letters of credit require to be stamped, with the exception of such as pass between bankers directing the payment of any sum of money, the same not being payable to bearer or to order, and such letter not being sent or delivered to the person, to whom payment is to be made or to any person on his behalf, and letters ef credit authorising drafts to be drawn out of the United Kingdom payable in the United Kingdom. General, no less than special, letters of credit require to be stamped, Waterson v. Edinburgh & Glasgow Bank, 20 D. 642.

45 & 46 VICTORIA.

CHAPTER LXI.

An Act to codify the Law relating to Bills of Exchange, Cheques, and Promissory Notes.-[18th August, 1882.]

BE it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:

PART I.

A.D. 1882.

PRELIMINARY.

$ 1.

1. This Act may be cited as the Bills of Exchange Short title. Act, 1882.

This Act which came into operation on 18th August, 1882, applies to the United Kingdom of Great Britain and Ireland.

2. In this Act, unless the context otherwise Interpretation requires,

"Acceptance" means an acceptance completed by delivery or notification (a).

"Action" (b) includes counter claim and set off (c). "Banker" includes a body of persons whether

of terms.

§ 2.

incorporated or not who carry on the business of banking.

66

Bankrupt" includes any person whose estate is vested in a trustee or assignee under the law for the time being in force relating to bankruptcy.

"Bearer means the person in possession of a bill or note which is payable to bearer (d).

"Bill" means bill of exchange, and “note” means promissory note (e).

"Delivery" means transfer of possession, actual or constructive, from one person to another (ƒ).

"Holder" means the payee or endorsee of a bill or note who is in possession of it, or the bearer thereof (g). "Indorsement" means an indorsement completed by delivery.

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.

"Value" means valuable consideration (h). "Written" includes printed, and "writing" includes print.

(a.) Vide § 21.

(b.) A claim in a multiplepoinding is equivalent to an

action.

(c.) Compensation.

(d.) Vide § 8 (3).

(e.) Bill includes cheque, vide 73, and promissory note inIcludes bank note.

(f) Vide § 21. A deed is constructively delivered, when, though it remains in the actual possession of the granter, or

of a party selected by him, it is held so to remain for the behoof of the grantee, Anderson 7. Robertson, 21st Feb. 1867, 5 M. 503; Miller v. Miller, 27th June, 1874, 1 R. 1107.

(g.) A bearer is only a holder, when the bill of which he is in possession, is payable to bearer.

(h) Vide § 27.

§ 3.

PART II.

BILLS OF EXCHANGE.

Form and Interpretation.

change

3. (1.) A bill of exchange is an unconditional order Bill of exin writing, addressed by one person to another, signed defined. 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 (a).

(2.) 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 (b).

(3.) An order to pay out of a particular fund is not unconditional 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 (c).

(4) A bill is not invalid by reason(a.) That it is not dated; (d)