S. 86. S. 87. Presentment of note for payment. a A promissory note, dated 24th Feb. 1864, was granted by A. to B., who indorsed it to C., who indorsed it to the appellants at latest by the beginning of March. The note was payable on demand, but was not presented for payment till 14th December 1864, when owing to the failure of A. it was dishonoured. The appellants sued B., the first indorser, who pleaded that there had been undue delay in presenting the note, and that he was accordingly discharged. The Privy Council assumed for the purposes of the case that unless the note had been presented in a reasonable time the indorser would be discharged; but, proceeding on the whole circumstances of the case, which in their Lordships' view showed that the note had been meant to be a continuing security, that delay had been in the interest of all parties, and that the defender had consented to the delay, they held that the note had been presented in reasonable time.1 e See s. 29 (2). f This constitutes a difference between bills and promissory notes. So long as the latter remain unindorsed they are regarded as continuing securities.2 87. (1.) Where a promissory note is in the body of it made payable at a particular place, it must be presented for payment at that place in order to render the maker liable. In any other case, presentment for payment is not necessary in order to render the maker liable.b a (2.) Presentment for payment is necessary in order to render the indorser of a note liable. (3.) Where a note is in the body of it made payable at a particular place, presentment at that place is necessary in order to render an indorser liable; but when a place of payment is indicated by way of memorandum only, presentment at that place is suffi Chartered Mercantile Bank of India, London, and China v. Dickson, 1871, L.R. 3 P.C. 574. 2 Cf. s. 36 (3); Brooks v. Mit chell, 1841, 9 M. & W. 15; Leith Bank v. Walker's Trustees, 1836, 14 S. 332; see Glasscock v. Balls, 1889, 24 Q.B.D. 13. cient to render the indorser liable, but a presentment S. 87. to the maker elsewhere, if sufficient in other respects, shall also suffice.c a It need not for this purpose be presented on the day on which it falls due.1 b See as to bills s. 19 (2, c). Subject to the provisions of this section, the rules for the presentment of bills apply to notes.2 it 88. The maker of a promissory note by making S. 88. Liability of (1.) Engages that he will pay it according to its maker. tenor; a b (2.) Is precluded from denying to a holder in due course the existence of the payee and his then capacity to indorse.c a The maker of a note is the primary obligant thereon. See section 54 as to the obligation of the acceptor of a bill and his relation to the other obligants. The maker's obligation cannot be conditional.3 b See s. 29. • See for the corresponding provision as to bills section 54 (2), and as to capacity and authority to contract by bill, sections 22 and 25. The maker may be barred by his actings from denying the genuineness and validity of a forged signature.1 89. (1.) Subject to the provisions in this part,a S. 89. and, except as by this section provided, the provisions Application of of this Act relating to bills of exchange apply, with Part II. to the necessary modifications, to promissory notes. (2.) In applying those provisions the maker of a note shall be deemed to correspond with the acceptor of a bill, and the first indorser of a note shall be 1 Gordon v. Kerr, 1898, 25 R. 570; see ss. 89 (1) and 52 (2). 2 Ss. 89 (1), 45 3 Cf. ss. 19 and 83 (1). See s. 24, n.d. notes. S. 89. deemed to correspond with the drawer of an accepted bill payable to drawer's order. (3.) The following provisions as to bills do not apply to notes; namely, provisions relating to— C (a.) Presentment for acceptance; © (b.) Acceptance; d (c.) Acceptance supra protest; (d.) Bills in a set.f e (4.) Where a foreign note is dishonoured, protest thereof is unnecessary.g a The provisions in this part relate to the following matters: (1.) Definition.1 (2.) Collateral security.2 (3.) Inland and foreign.3 (4.) Completion by delivery.4 (5.) Joint and several obligations.5 (6.) Conjoining of obligants in notes bearing to be by one person.6 (7.) Presentment of notes payable on demand." (8.) Presentment of notes payable at a specified place.8 (9.) Obligation of maker.9 b See Leeds Bank v. Walker, 1883, 11 Q.B.D. 84, and section 64, n.o, p. 143. c Ss. 39-44. d Ss. 17-19. e Ss. 65-67. It appears that it is competent, but was at no time usual, to pay a note supra protest.10 PART V. SUPPLEMENTARY. 90. A thing is deemed to be done in good faith, S. 90. within the meaning of this Act, where it is in fact done honestly, whether it is done negligently or not.a a Good faith is required in the acquisition of bills,1 and in the payment of them.2 Knowledge or suspicion of any defect in the title to a bill is equivalent to express notice thereof; and a person who in taking or paying a bill disregards such knowledge or suspicion is not acting in good faith.3 Good faith. Signature. 91. (1.) Where by this Act any instrument or S. 91. writing is required to be signed by any person, it is not necessary that he should sign it with his own hand, but it is sufficient if his signature is written thereon by some other person by or under his authority.c (2.) In the case of a corporation, where by this Act any instrument or writing is required to be signed, it is sufficient if the instrument or writing be sealed with the corporate seal.d But nothing in this section shall be construed as requiring the bill or note of a corporation to be under seal.e a See s. 2. b See s. 3, n.b No. 5. See, as to the constitution and extent of an agent's authority to sign bills, section 25, n.b and as to the extent of a partner's authority, section 22, n.a No. 6. See also Lindus v. Bradwell, where a husband was held liable on bills accepted for him under his authority by his wife in her own name.1 1 S. 29. 2 Ss. 59, 60, 79, 80, 82. 3 See s. 29, n. h. 4 1848, 5 C.B. 583, 17 L.J. C.P. 121, 23, n.g. S. 91. S. 92. d This sub-section removed a doubt which existed in England, as to whether a bill or note could competently be under seal.1 e See s. 3, n. No. 5, and, as to the capacity of corporations to contract by bill, s. 22, n.a No. 7. 92. Where by this Act the time limited for doing Computation any act or thing is less than three days, in reckoning time, non-business days are excluded.a of time. S. 93. When noting equivalent to protest. "Non-business days" for the purposes of this Act mean (a.) Sunday, Good Friday, Crhistmas Day: (c.) A day appointed by Royal proclamation as a Any other day is a business day.a a See ss. 42 (time for accepting), 49 (12) (notice of dishonour), 67 (2) (presentment to acceptor for honour). See also as to presentment of a cheque, s. 74, n.o See s. 14 and p. 258, infra. c See 34 Vict. c. 17, s. 4, p. 259, infra. d The fact that a business day is a festival in the religion of a person trading in this country may be taken into account in considering what is reasonable diligence.2 a 93. For the purposes of this Act, where a bill or note is required to be protested within a specified time, or before some further proceeding is taken, it is sufficient that the bill has been noted for protest before the expiration of the specified time of the taking of the proceeding; and the formal protest may be 1 See Crouch v. Crédit Foncier of England, 1873, L.R. 8 Q.B. 374, 382 2 Lindo v. Unsworth, 1811, 2 Camp. 602; s. 49, n.j. |