Time for presenting bill after sight. Time for presenting ILLUSTRATION. A. draws a bill on B. payable to C. three months after sight. C. holds it back for an unreasonable time. He then presents it and it is accepted. Before it is due the acceptor fails. A. is discharged. NOTE.-Qu. What is the liability of a person who retains a bill unreasonable time and then negotiates it without indorsement? Again, does negotiation within a reasonable time, toties quoties, excuse presentment, or is there any limit? By German Exchange Law, Art. 19, when a bill payable after sight does not fix a time for presentment, it must be presented within two years of its date. By French Code, Art. 160, as amended by the law of May 3, 1862, bills payable after sight are divided into classes according to the places where they are drawn and payable, and definite limits of time for presentment are fixed, varying from three months to one year-e.g., bill drawn in Paris on London must be presented for acceptance within three months. The effect of this conflict of laws has not been considered. Art. 151. A bill of exchange, payable otherwise other bills. than at a fixed time after sight, may be presented for acceptance at any time before maturity.1 Day and hours. NOTE. In the case of a bill which is due or payable on demand, presentment for acceptance is merged in presentment for payment. When a bill is presented for payment, the drawee instead of paying it, often accepts it payable at his bankers. This is in effect a payment by cheque, which the holder might refuse to take. In New York it is held that if a bill payable after date be presented on the day it is due and dishonoured, it is immaterial whether it is treated as dishonoured by non-acceptance or non-payment.3 Considering the difference in the rules which govern the two kinds of presentment this might have important consequences. See also Art. 34. Art. 152. Presentment for acceptance must (probably) be made on a business day, and at a reasonable hour.4 Explanation 1.--When the day on which a bill of exchange should be presented or received for accept 1 O'Keefe v. Dunn (1815), 6 Taunt. at 307; German Exchange Law, Art. 18; Nouguier, § 456. 2 Cf. Bishop v. Chitty (1742), 2 Stra. 1195. 3 Plato v. Reynolds (1863), 27 New York R. 586. Chitty, p. 199; Byles, p. 182. No decision. Cf. Art. 163, and Startup v. Macdonald (1843), 6 M. & Gr. at 624. hours. ance is a bank holiday it is to be presented on the Day and next business day.1 Explanation 2.--When the drawee is a trader reasonable hours mean the ordinary business hours of his trade.2 ILLUSTRATION. Bill drawn on a banker is presented for acceptance after banking hours and the bank is found closed. The bill cannot be treated as dishonoured. NOTE.-Probably if presentment was made on a non-business day, or at an unreasonable hour, and the drawee refused acceptance on some other ground, the bill might be treated as dishonoured. and where. Art. 153. Presentment for acceptance must be To whom made to the drawee personally, or to some person who has authority to accept or refuse acceptance on his behalf.3 Explanation 1.-When a bill of exchange is drawn payable at the house or place of business of some person other than the drawee, presentment for acceptance at such house or place is not a presentment to the drawee.4 Explanation 2.-When the drawee is dead presentment must (perhaps) be made to his executor or administrator.5 NOTE.-The law on this point is not yet settled. may retain Art. 154. The person who presents a bill of ex- Drawee change for acceptance must deliver it up to the bill twenty. drawee if required so to do. The drawee is entitled four hours. to retain it for twenty-four hours, but after the ex 1 Bank Holidays Act, 1871, 34 & 35 Vict. c. 17, § 2. 2 Cf. Nelson v. Fetteral (1836), 7 Leigh at 194, and Art. 163. 3 Cheek v. Roper (1804), 5 Esp. 175; Byles, p. 182. 4 Chitty, p. 196; Cf. Art. 155, n. 5 Cf. Smith v. N. S. Wales Bank (1872), 8 Moore P. C. N. S. at 461-462, per Mellish, L. J. Daniel, § 458. French Code, Art. 163. Drawee piration of this time he must re-deliver it accepted may retain bill twenty four hours. Presentment for accept or un-accepted.1 Explanation 1.--In reckoning the twenty-four hours non-business days must be excluded." Explanation 2.-- If after the expiration of the twenty-four hours the drawee refuses to re-deliver the bill it must be treated as dishonoured in order to preserve the holder's right of recourse against antecedent parties.3 Art. 155. Presentment for acceptance is excused, and a bill of exchange may be treated as dishonoured excused. by non-acceptance. ance, when 1. When the drawee is discovered to be a fictitious person or (perhaps) a person not having capacity to contract.5 2. (Probably) when, after the exercise of reasonable diligence, presentment cannot be effected." Explanation. The fact that the holder has reason to believe that the bill on presentation will be dishonoured does not dispense with the necessity for presentment." NOTE.-In Anon (1700), 1 Ld. Raym. 743, where the drawee had absconded, the bill was merely protested for better security, and at maturity it was again protested for non-payment. This seems to be the only case in point, but it can hardly be a binding precedent now that it is settled that a right of action at once arises on dishonour by non-acceptance (Art. 157). At the same time it is clear that considerations applicable to presentment for payment 1 Bank of Van Diemans Land v. Victoria Bank (1871), 3 L. R. P. C. at 542 -543; Story, § 237; French Code, Art. 125. 2 Id. see at 546-547, as to the effect of a short day-e.g., Saturday. 3 Id.; Cf. Ingram v. Forster (1805), 2 Smith 242; see, too, German Exchange Law, Art. 20. Cf. Smith v. Bellamy (1817), 2 Stark. 223. 5 Byles, p. 187; no decision in point. 6 Byles, p. 183; Chitty, p. 199; Brooks' Notary, 4th ed., p. 79 ; no decision in point. Cf. Smith v. N. S. Wales Bank (1872), 8 Moore, P. C. N. S. at 461-463. 7 Robinson v. Ames (1822), 20 John. at 149, New York; Ex parte Tondeur (1867), 5 L. R. Eq. at 165. Cf. Art. 168. pre when ex do not apply in their entirety to presentment for acceptance. PresentSpeaking generally, presentment for acceptance must be personal, ment for while presentment for payment must be local. A bill must be acceptance sented for payment where the money is. Any one can hand then cused. over the money (Cf. Art. 167). A bill must be presented for acceptance to the drawee himself, for he has to write the acceptance; but the place where it is presented to him is comparatively immaterial, for all he has to do is to take the bill (Cf. Art. 154). Again (except in the case of demand drafts) the day for payment is a fixed day, but the drawee cannot tell on what day it may suit the holder to present a bill for acceptance. If the drawee be a trader, it is clear that the bill should be presented for acceptance at his place of business, but suppose the drawee is not there, what further steps must be taken? What diligence must be used before the bill can be treated as dishonoured? The immediate right of action which arises on non-acceptance is an exceptional right.1 How far ought it to be favoured? It is one thing to excuse delay where presentment is necessary, another to treat a bill as dishonoured where presentment is optional. by non-ac Art. 156. A bill of exchange is "dishonoured by Dishonour "non-acceptance" (1) when it is duly presented for ceptance. acceptance, and an acceptance in due form is refused or cannot be obtained, or (2) when presentment for acceptance is excused, and the bill is not accepted. quence of by non-ac. Art. 157. Subject to Art. 48, when a bill of ex- Consechange is dishonoured by non-acceptance, an imme- dishonour diate right of recourse against the drawer and in- ceptance. dorsers accrues to the holder, provided that the proper proceedings on dishonour be taken. ILLUSTRATION. A. draws a bill on B. payable to C. three months after date. Two days after it is drawn C. presents the bill to B. for acceptance. B. dishonours it. C. can at once sue A. on the bill. He need not wait till it matures. NOTE. This rule seems peculiar to English and American law. On the continent the holder can only protest the bill for nonacceptance and demand security from the drawer and indorsers. When the bill matures he must again present it for payment. His 1 Cf. Art. 157, n., and Dunn v. O'Keefe (1816), 5 M. & S. at 289, Abbot, C.J. 2 Whitehead v. Walker (1842), 9 M. & W. at 516; Watson v. Tarpley (1855), 20 How. at 519 Sup. Ct., U. S. Conse quence of dishonour by nonacceptance. Holder's right to ceptance. right of action arises on non-payment. The effect of this conflict of laws has not been judicially considered. Explanation. The holder of a bill of exchange which has been dishonoured by non-acceptance may re-present it to the drawee for acceptance or payment, though he is not bound so to do.2 NOTE. Suppose a bill is presented for acceptance and dishonoured. The holder gives no notice of dishonour, but re-presents the bill a few days after and gets it accepted. It is dishonoured by non-payment. Are the drawer and indorsers discharged as regards such holder? A subsequent holder without notice would not be affected (Art. 191). The proper course is to give notice of dishonour, and at the same time to intimate an intention to represent. Duties as to Qualified Acceptances. Art. 158. The holder of a bill of exchange is engeneral ac- titled to have it accepted generally. If a general acceptance be refused and a qualified acceptance is offered or given, the bill may be treated as dishonoured.3 Notice of qualified accept ance. NOTE.-As to general and qualified acceptances, see Arts. 38, 39. By German Exchange Law, Art. 20, if the acceptor refuse to date his acceptance on a bill payable after sight it may be treated as dishonoured. Art. 159. If the holder of a bill of exchange elect to take a qualified acceptance, he must give notice of the qualification to antecedent parties.* NOTE. As to the effect of the notice when given, see Art. 40. A foreign bill should be protested as to the variation. The notice given must be notice of qualification, not notice of dishonour. If the holder give notice of dishonour, he cannot take advantage of the acceptance.s 1 French Code, Art. 119, 120; German Exchange Law, Art. 25-28. 3 Boehm v. Garcias (1808), 1 Camp. 425; Gammon v. Schmoll (1814), 5 Taunt. at 353; Cf. French Code, Art. 124; German Exchange Law, Art. 22. 4 Cf. Sebag v. Abithol (1816), 4 M. & S. at 466, Bayley, J.; Whitehead v. Walker (1842), 9 M. & W. at 509. 5 Cf. Bentinck v. Dorrien (1805), 6 East. 199. |