CHAPTER ΧΙ. Eighthly, as to the circumstances under which equity will restrain negotiation. A Court of Equity will interpose to restrain the negotiation of a bill unduly obtained; for the JURISDICTION defence at law may not be available as against an innocent OF COURT OF indorsee for value, or time may destroy the evidence (e); EQUITY IN and will, on equitable terms, decree a bill void in its cre- NEGOTIAation, or unduly obtained, to be delivered up to be can- TIONS. celled (ƒ). (e) Bromley v. Holland, 7 Ves. 20, 413; Bishop of Winchester v. Fournier, 2 Ves. jun. 483; 3 Ves. 757; 9 Ves. 355. As to the parties to the suit, see Toley v. Carlon, 1 Younge, 373. But the Court will not order a bill to be delivered up unless the plaintiff has a right to the possession, and the defendant's detention of the bill is inequitable. Jones v. Lane, 3 Y. & Č. 281. In Threlfall v. Lunt, 7 Sim. 627, a demurrer was allowed to a bill for the delivery up of a bill of exchange, the amount of which the defendant had recovered at law, and had received from the (f) 2 Ves. jun. 488; 7 Ves. RESTRAINING CHAPTER Advisable in all Necessary where When to be & note It is in all cases advisable for the holder of an unaccepted bill to present it for acceptance without delay; for, in case of acceptance, the holder obtains the additional security of the acceptor, and, if acceptance be refused, the antecedent parties become liable immediately. It is advisable, too, on account of the drawer, for, by receiving early advice of dishonour, he may be better able to get his effects out of the drawee's hands. But presentment for acceptance is not necessary in the case of a bill payable at a certain period after date. It is said, however, that it is incumbent on a holder who is a mere agent, and on the payee, when expressly directed by the drawer so to do, to present the bill for acceptance as soon as possible; and that, for loss arising from the neglect, the payee must be responsible, and the agent must answer to his principal (a). Presentment for acceptance is necessary, if the bill be drawn payable at sight, or at a certain period after sight. Till such presentment there is no right of action against any party and unless it be made within a reasonable time (b), the holder loses his remedy against the antecedent parties. What is a reasonable time depends on the circumstances of each particular case, and is a mixed question of law and (a) Chit. 9th ed. 237; Poth. 128; Marius, 46. (b) So also held in America; Byles on Bills, 5th American is now " a Prile payable as right is payable on demand 147 35 Viese 74) fact (c); although reasonable time in general, and reasonable time for giving notice of dishonour in particular, is clearly a question of law. Plaintiff, on Friday, the 9th, at Windsor, twenty miles from London, received a bill on London, at one month after sight, for 1007. There was no post on Saturday. It was presented on the Tuesday. The jury thought it was presented within a reasonable time, and the Court concurred (d). A bill drawn by bankers in the country on their corre spondents in London, payable after sight, was indorsed to the traveller of the plaintiffs. He transmitted it to the plaintiffs after the interval of a week, and they, two days afterwards, transmitted it for acceptance. Before it was presented to the drawees, the drawer had become bankrupt; the drawees, consequently, refused to accept. Had the bill been sent by the traveller to the plaintiffs, his employers, as soon as he received it, they would have been able to get it accepted before the bankruptcy. "This is," says Lord Tenterden, "a mixed question of law and fact; and, in expressing my own opinion, I do not wish at all to withdraw the case from the jury. Whatever strictness may be required with respect to common bills of exchange, payable after sight, it does not seem unreasonable to treat bills of this nature, drawn by bankers on their correspondents, as not requiring immédiate presentment, but as being retainable by the holders for the purpose of using them, within a moderate time (for indefinite delay, of course, cannot be allowed), as part of the circulating medium of the country." The jury concurred with his Lordship, that the delay was not unreasonable (e). Where the purchaser of a bill on Rio Janeiro, at sixty days' sight, the exchange being against him, kept it nearly five months, and the drawee failed before presentment, it was held, that the delay was not unreasonable. "The bill," says Tindal, C. J., "must be forwarded within a reasonable time under all the circumstances of the case, and there must be no unreasonable or improper delay. Whether there has been, in any particular case, reasonable diligence used, or whether unreasonable delay has occurred, is a mixed question of law and fact, to be decided by the jury, acting under the direction of the Judge, upon the particular circumstances of each case” (ƒ). (c) Muilman v. D'Eguino, 2 H. Bl. 565; Fry v. Hill, 7 Taunt. 395; Shute v. Robins, 1 M. & M. 133; 3 C. & P. 80, S. C.; Mellish v. Rawdon, 9 Bing. 416; 2 M. & Sc. 570, S. C.; Mullick v. Rada kissen, 9 Moore, P. C. Cases, 46. (d) Fry v. Hill, 7 Taunt. 395. (e) Shute v. Robins, 1 M. & M. 133; 3 C. & P. 80, S. C. (f) Mellish v. Rawdon, 9 Bing. 416; 2 M. & Sc. 570, S. C. CHAPTER CHAPTER XII. But where a bill, payable after sight, was drawn in duplicate on the 12th of August, in Newfoundland, and not presented for acceptance in London till November 16, and no circumstances were proved to excuse the delay, it was held unreasonable (g), the Court laying some stress on the fact Bank Holiday that the bill was drawn in sets. hat hour. Excused by putting bill into By other reason- Bank holidays. Presentment should be made during the usual hours of business (h). The holder may, however, put the bill into circulation without presenting it. "If a bill drawn at three days' sight," says Mr. Justice Buller, "be kept out in circulation for a year, I cannot say that there would be laches; but if, instead of putting it into circulation, the holder were to lock it up for any length of time, I should say that he would be guilty of laches" (i). "But this cannot mean," says Tindal, C. J., "that keeping it in hand for any time, however short, would make him guilty of laches. It can never be required of him instantly on receipt of it, under all disadvantages, to put it into circulation. To hold the purchaser bound by such an obligation would impede, if not altogether destroy, the market for buying and selling foreign bills, to the great injury, no less than to the inconvenience, of the drawer himself" (k). Two bills, one for 4007., the other for 500l., were drawn from Lisbon, on May 12, at thirty days after sight, indorsed to G. at Paris, and by G. to R. at Genoa, and by R. indorsed over. They were not presented for acceptance till 22nd August. The jury found, and the Court concurred, that the bills were, under the circumstances, presented within a reasonable time (7). Illness or other reasonable cause not attributable to the misconduct of the holder will excuse. But the holder must present, even should the drawer have desired the drawee not to accept (m), though, as we shall see, the drawer in that case need have no notice of non-acceptance. (g) Straker v. Graham, 4 M. & W. 721. (h) Mar. 112; Parker v. Gordon, 7 East, 385; 6 Esp. 41, S. C.; Leftley v. Bailey, 4 T. R. 170. In America it is held that business hours (except in the case of bankers) range through the whole day, down to the hours of rest in the evening. See Byles on Bills, 5th American edition, p. 301. (i) Muilman v. D'Eguino, 2 H. Bl. 565. (k) Mellish v. Rawdon, 9 Bing. 416; 2 M. & Sc. 570, S. C. (1) Goupy v. Arden, 7 Taunt. 160; 2 Marsh, 454, S. C. In America it is held, that though put into circulation it must still be presented within a reasonable time. Byles on Bills, 5th American edition, p. 302. (m) Hill v. Heap, D. & R., N. P. C. 57. CHAPTER should be made. The presentment must be made either to the drawee himself, or to his authorized agent. The holder's servant called at the drawee's residence, and showed the bill to some To whom it person in the drawee's tan-yard, who refused to accept it; but the witness did not know the drawee's person, nor could he swear that the person to whom he offered the bill was he, or represented himself to be so. Lord Ellenborough: "The evidence here offered proves no demand on the drawee, and is, therefore, insufficient" (n). be given to When the bill is presented, it is reasonable that the What time for drawee should be allowed some time to deliberate whether deliberation may he will accept or no. It seems that he may demand twenty-four hours for this purpose (and that the holder will be justified in leaving the bill with him for that period); at drawee. xile the ob : least, if the post do not go out in the interim (o), or unless, of hord Cours in the interim, he either accepts or declares his resolution not to accept (p). If more than twenty-four hours be given, the holder ought to inform the antecedent parties of it (q). If the owner of a bill who leaves it for acceptance, by his negligence, enable a stranger to give such a description of it as to obtain it from the drawee, without negligence on the drawee's part, the owner cannot maintain trover for it against the drawee (r). In case the bill is directed to the drawee at a particular place, it is to be considered as dishonoured if the drawee has absconded (s). But, if he have merely changed his residence, or if the bill is not directed to him at any particular place, it is incumbent on the holder to use due diligence to find him out. And due diligence is a question of fact for the jury (t). If the drawee be dead, the holder should inquire after his personal representative, and, provided he live within a reasonable distance, present the bill to him (u). iaco Bess 3PC 526 1404728 Consequence of party presenting. Course for holder when drawee In an action against the drawer for non-acceptance, it is PLEADING. not sufficient to allege mere non-acceptance; presentment |