See s. 69, n. While the bill is outstanding the pursuer cannot by laying his action on the consideration escape the necessity of granting an indemnity.1 Bill in a Set. 71. (1.) Where a bill is drawn in a set, each part S. 71. of the set being numbered, and containing a reference Rules as to to the other parts, the whole of the parts constitute sets. one bill, a (2.) Where the holder of a set indorses two or more parts to different persons," he is liable on every such part, and every indorser subsequent to him is liable on the part he has himself indorsed as if the said parts were separate bills. d e (3.) Where two or more parts of a set are negotiated to different holders in due course, the holder whose title first accrues is as between such holders deemed the true owner of the bill; but nothing in this sub-section shall affect the rights of a person who in due course accepts or pays the part first presented to him.f (4.) The acceptances may be written on any part, and it must be written on one part only. If the drawee accepts more than one part, and such accepted parts get into the hands of different holders in due course, he is liable on every such part as if it were a separate bill. e (5.) When the acceptor of a bill drawn in a set pays it without requiring the part bearing his acceptance to be delivered up to him, and that part at maturity is outstanding in the hands of a holder in due course, he is liable to the holder" thereof. e 1 Davis v. Reilly [1898]. 1 Q.B. 1; Maberley v. Bank of Scotland, 1822, 1 S. 360, (n.e. 338); Feb. 27 1822, F.C. rev. 1825, 1 W. & S. 10; 1826 S. 71. (6.) Subject to the preceding rules, where any one part of a bill drawn in a set is discharged by payment or otherwise, the whole bill is discharged.i a For the form of a bill drawn in a set, see p. 276. Only one part of a set requires to be stamped unless the the other parts are negotiated apart from it.1 Upon proof of the loss or destruction of the stamped part, an unstamped part which has not been negotiated apart from it may be given in evidence.2 A promissory note cannot be drawn in a set.3 The purpose of drawing bills in sets is to provide against loss in transmission. Each part is intended as a substitute for the others and should be made payable only if the others are unpaid. Each holder is entitled to demand all the parts from his immediate author.5 An undertaking to deliver a bill drawn in a set imports an obligation to deliver all the parts, or at least all in existence." b See s. 2. c This sub-section is not clear as to the liability of a person who indorses two parts in blank and delivers them to one person, in case they subsequently come into the hands of separate holders. These circumstances arose in Société Général v. Metropolitan Bank. It was there found that the indorser was liable only on one part, but the circumstances were special, and in view of this sub-section, it is obviously prudent when indorsing more than one part of a set to indorse each part specially to the same person. d See s. 31 e See s. 29. f The rights of the true owner under this sub-section appear to be as follows. In a question between holders of different parts of an unpaid bill, he would be entitled to sue all previous parties to the bill, while the other holders would S. 71. be entitled to sue only those liable on their own part under sub-sections (2), (4), and (5). But he would not be entitled to demand delivery of the other parts so as to defeat rights under these sub-sections.1 If, before he presented the bill, it had been paid to another holder in due course, he would be entitled to recover only from those liable on his part under sub-sections (2), (4), and (5). g See s. 17. ʼn See ss. 14 and 59, n.c i See s. 59. Conflict of Laws. 72. Where a bill drawn in one country is nego- S. 72. tiated, accepted, or payable in another, the rights, Rules where duties, and liabilities of the parties thereto are deter- laws conflict mined as follows: (1.) The validity of a bill as regards requisites in (a.) Where a bill is issued out of the United (b.) Where a bill, issued out of the United Kingdom, conforms, as regards requisites. 1 Cf. Holdsworth v. Hunter, 1830, 10 B. & C. 449, per Tenterden, C.J., S. 72. payment thereof, be treated as valid as between all persons who negotiate, hold, or become parties to it in the United Kingdom.h (2.) Subject to the provisions of this Act, the interpretation of the drawing, indorsement, acceptance, or acceptance supra protest of a bill, is determined by the law of the place where such contract is made.1 e Provided that where an inland billm is indorsed in a foreign country the indorsement shall as regards the payer be interpreted' according to the law of the United Kingdom." (3.) The duties of the holder with respect to pre sentment for acceptance or payment and the necessity for or sufficiency of a protest or notice of dishonour, or otherwise, are determined by the law of the place where the act is done or the bill is dishonoured.a Where a bill is drawn out of but payable in the United Kingdom and the sum payable is not expressed in the currency of the United Kingdom, the amount shall, in the absence of some express stipulation, be calculated according to the rate of exchange for sight drafts at the place of payment on the day the bill is payable. (5.) Where a bill is drawn in one country and is payable in another, the due date thereof is determined according to the law of the place where it is payable." a The law of France differs on this point from that of this country by requiring that the date, the place of payment, and the value furnished shall be specified.1 The requirement of S. 72. the French Code that a bill should be drawn from one place upon another, was repealed on 7th June 1894. The law of the Netherlands is the same as that of France, except that this provision is still in force.2 The law of Spain further requires the name of the party for whose account the bill is drawn, and the designations of parties. The consideration must be expressed, if in cash or goods, by the words "value received," and if in account, by the words "value in account." The laws of Germany and Sweden require that the instrument should state that it is a bill, and specify the place and date of drawing and place of payment. In the United States of America the formal requirements of bills are the same as in this country. Several of the States have recently enacted identical bills of exchange laws codifying the law on this subject. Of the British colonies several have adopted this Act with very slight variations.7 b See s. 2. In France an acceptance must be expressed by the word accepté," with the acceptor's signature. If the bill is payable after sight, and the acceptance is not dated, the term of payment is reckoned from the date of drawing. In Germany and Sweden an acceptance may consist simply of the acceptor's signature.9 d In France indorsements must be special.10 They must express the consideration received, and must be dated. Otherwise they operate only as procuratories.11 In the United States, Germany, the Netherlands, and Sweden, indorsements may be either special or in blank.12 |