"for" such a one, or, 66 per procuration for," &c., otherwise he will be personally liable. It has been so found in England in the case of the clerk or agent of a bank, and of a cashier of a public company.2 The partners of a company are, as respects the public, procurators of the company to the extent of binding the firm. (See above, p. 181.)

CHAPTER II.

RIGHTS, DUTIES, AND LIABILITIES OF PARTIES.

SECT. 1.-Presentment.

THE presentment of a bill to the person on whom it is drawn, is made, for acceptance, for payment, or for both at the same time. When a bill is made payable within a specified time after sight or after demand, it is absolutely necessary, in order to fix the period when it is to be paid, to present it to the drawee for acceptance.3 In this case, if there is acceptance, the bill when due will be presented again for payment.

Presentment for Acceptance in the first instance is not necessary when the bill is drawn at a day certain, at sight, or on demand, for it may be finally presented for acceptance and payment.4 Presentment for acceptance is, however, in all cases prudent, as it furnishes a new party to the bill on acceptance, or on dishonour gives the holder immediate recourse; an agent holding a bill will be responsible for the solvency of the drawer if he do not present it for acceptance.5 In the cases where presentment for acceptance is required, neglect to present within a reasonable time will destroy the holder's recourse on the drawer, &c., but what is a reasonable time seems not to be farther decided than by making it referable to custom.6 In England it is held that foreign bills payable after sight may be kept to an unlimited period, being regarded as general letters of credit. Meanwhile, and before

Bayley, 69.2 Leadbitter v. Farrow, 1816, 5 M. & S. 345. Thomas v. Bishop, Str. 955.-3 Ch. on B. 272. Ibid. Hamilton, 16th January 1810.- Bayley, 227. Bills, 27.

Th. 409.-5 Dunlop v. Th. 411.-7 Johnson on

acceptance, the document may be circulated by indorsation (see below, p. 324), so as to render the payee, if he shall accept, liable in the first instance to the holder or indorsee, the drawer and each indorser being liable for the debt if the bill is not accepted. In the general case, if acceptance is once refused, presentment need not be made for payment, the drawer becoming immediately liable.1

By the custom of merchants, the drawee is allowed twentyfour hours to make up his mind whether he shall accept or not; but it is said, that if a post, by which notice of dishonour may be sent, leave in the mean time, he must decide in time to admit of notice being sent.2

Presentment for Payment must be made before expiry of the last day of payment, and at proper business hours. If particular hours be fixed by the usage of the place, they must be observed. Presentment at a bank-office will not be good unless it be made during bank hours.3 But presentment cannot be considered unreasonable, whatever be the hour, if there be a person at the place who refuses to pay.4 In the general case the question whether the time is within business hours goes to a jury.5 The proper place of presentment is generally to be discovered by the address. In presentment for payment, if a place, such as a bank-office, be named on the bill, the presentment to secure recourse against the drawer and indorsers must be made there. In as far as respects the acceptor's obligation, however, though there be a place named, unless the words only," or and not otherwise," or and not elsewhere," be written after it, the acceptance is general, and presentment to the acceptor, wherever he may be, cannot be wrong.? Where a bill drawn payable at a place not the residence of the drawee is refused acceptance, presentment for payment must be made at the place of payment.R

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When a Bill is Accepted for Honour (see below, p. 322), or there is a reference in case of need, it need not be presented to the acceptor or referee until the day after the day of payment, and if the acceptor or referee be not in the place of payment, it need not be transmitted till such day after.9 If that day be a Sunday or a holiday, the day next following will be sufficient.10

1 Ch. on B. 349.- Th. 432.-3 Ibid. 437.- Bayley, 226.-5 Neilson v. Leighton, 7th February 1843.- Th. 323.-7 1 & 2 Geo. IV. c. 78, § 1. 8 2 & 3 Wm. IV. c. 98.-9 6 & 7 Wm. IV. c. 58, § 1.-10 Ibid. § 2.

SECT. 2.-Payment and Days of Grace.

The proper times and places at which payment may be demanded are to a certain extent explained above under the head of Presentment. The acceptor of a bill or maker of a note cannot, under any circumstances, be bound to pay it, nor can the holder be bound to accept payment, before the day on which it falls due.1 Where the holder of the paper is not named in it as payee or indorsee, there is risk in paying it before it becomes due, as he may turn out to have obtained it wrongfully. It is said, that where the holder's name does appear on the bill, such payment may be made in safety; but it may still be questioned what would be the result if the holder had blank indorsed it, and fraudulently recovered it.

"after

Certain days called "days of grace" are allowed to run on bills payable on a day named, or on a day so long date," or "after sight." They vary in different countries. In Britain they amount to three, unless the last day would fall on a Sunday, or a holiday on which business is prohibited by public authority.3 The days of grace begin to run from the termination of the nominal day of payment, and the last of them is the real day of payment. Thus, if a bill, dated 1st January, be made payable three months after date, the day of payment will be the 4th April, or if that day be Sunday or a holiday, the 3d. Calendar not lunar months are the rule where the mere word "months" occurs, and the nominal day of payment is not carried into a succeeding month. Thus, if a bill at three months be dated 30th November, the days of grace will begin to run from the termination of the 28th day of February. It has not been decided in Scotland whether bills at sight carry days of grace. In England they do not.5

The payment must be in money, or what the holder may choose to receive as an equivalent. If bills, bank notes, or a check be offered, the holder will take them at his own risk,—that of losing recourse on the drawer or indorsers of the original bill if they prove bad."

SECT. 3.-Noting and Protest.

If on presentment for acceptance or payment, as above, the

1 Th. 376.- Ibid.-3 Bayley, 245.- Th. 378.- Johnson on Bills, 9. Th. 388. Johnson, 50.

bill be not duly accepted or paid, the first duty of the holder is to get it noted, as a means of taking protest if necessary. This is done by a notary-public, who must not be a party to the bill. The bill should be presented a second time in presence of two witnesses by the notary, who then marks the bill with his initials, the date, and his charge. It is not clearly ascertained whether the notary can perform this initial ceremony by deputy. In London and Liverpool it is the practice for the notaries' clerks to make the presentment in the case of foreign bills, which are the only kind usually protested in England; but the practice has been disapproved of by the best authorities.3

This process is the foundation on which the notary draws an Instrument of Protest, which must be on stamped paper, and must contain a verbatim copy of the bill or note with all its indorsements, and the circumstances under which it was presented, with the names of the witnesses. Noting and protest are the foundations of summary diligence against any of the parties, and they are absolutely necessary for recourse against the drawer and indorsers.5 To secure summary diligence (see below, p. 335), a protest for non-acceptance must be registered within six months after the date of the bill; a protest for non-payment within six months after the day of payment. After considerable doubts, it has been lately decided that by the construction of the acts, protest on a promissory note payable on demand does not require to be registered within six months after its date, but may be duly reg stered within six months after the demand.

SECT. 4.-Notice of Dishonour.

If the holder of a bill wishes to retain recourse against the drawer and indorsers, on non-acceptance, on acceptance merely conditional, or non-payment, he must send them timely notice.

In Inland Bills, it is fixed by statute that it is sufficient if the notice be sent within fourteen days. Whether the notice must be received within the period, or it be sufficient that it be despatched within it, seems doubtful;9 the practice is to send notice immediately. It is to be observed, that it is only in the hands of the holder that the period of

1 Th. 444.-2 Ibid. 446.- Ch. on B. 458, et seq.-4 Th. 448.-5 Ibid. 442-448.-1681, c. 20. 1696, c. 36. 12 Geo. III. c. 72, § 42. 23 Geo. III. c. 18, § 55.7 Bon v. Rollo, 21st February 1846.8 12 Geo. III. c. 72, § 41.9 B. C. i. 419.

sending notice may be thus protracted; if one indorser is to have recourse on another, the notice which he gives, after receiving notice himself, is subject to the same rules against delay, which will be explained, as applicable to foreign bills.1

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Foreign Bills.-The above act not extending to foreign bills is held not to include those between England and Scotland, i. e. those drawn in the one country and accepted and made payable in the other.2 In these the general custom of merchants requires that notice should be sent without undue delay." Notice may be sent immediately on refusal to accept or pay.3 If there is no refusal the rules as to presentment must be observed as above. If the parties reside in the same place (which in general can only be the case when one is an indorser), notice should be given before expiry of the day following the dishonour. Where they reside in different places, it would seem that notice ought to be despatched by the earliest post which leaves the place, after the dishonour.5 Each party has a day for giving notice, that is, having received notice himself, if he mean to have recourse on a previous party, he sends that party notice on the day following.6

A Sunday, a public holiday, or a day which his religion enjoins to be kept holy, will not be counted against a party bound to give notice. The notice may be verbal or written ; in practice it is always written. It ought to import that the bill has been dishonoured, and that the party giving notice. looks to being indemnified by the party to whom it is given." Where a person is extraneously involved in the security of a bill, as by guaranteeing it, it seems not to be decided how far he is entitled to immediate notice; that his responsibility ceases, however, if the dishonour be long concealed from him, and real injury thereby occasioned, has been admitted.10

The giving of notice is a mere personal duty on the part of the holder, to enable the party becoming liable to attend to his own interest, but it is not an essential requisite, and the want of it may be excused from inability to perform it— as, the illness of the holder, or the death of the person employed to give notice, &c. If it can be shown that the drawee had no funds of the drawer in his hands, and that the drawer could not expect him to have any, the want of notice will not save the drawer from recourse. 12 It is on any

1 Th. 503.-2 Ibid. 491.-3 Bayley, 267.— Ibid. 268.5 Ibid. — Ibid.— 7 Th. 490.- Bayley, 276.-9 Ibid. 256.-10 See Borthwick v. Robertson, 3d June 1830, Bayley, 287.-" Th. 511.—12 Ibid.