Present

ment to

charge maker.

Presentment to

charge indorser.

ILLUSTRATIONS.

1. B. makes a note payable to C. or order on demand. The holder can sue B. without proving any presentment or demand.1 2. B. makes a note running "On demand I promise to pay C. or order at sight." This note must be presented for payment before the holder can sue B.2

Explanation.-When a promissory note is in the body of it made payable at a particular place, presentment at that place is necessary to charge the maker, but when a place of payment is indicated at the foot of the note, and by way of memorandum only, no presentment is necessary to charge the

maker.1

ILLUSTRATION.

B. makes a note payable to his own order and signs it; below his signature are the words "Payable at X. & Co.'s, Bankers, London." B. indorses the note in blank. The holder can sue B. without proving presentment.5

6

Art. 284. Presentment for payment is necessary in order to charge the indorser of a promissory note. Explanation. When a note is in the body of it made payable at a particular place presentment at that place is necessary in order to charge the indorser, but when a place of payment is merely indicated at the foot of the note and by way of memorandum, presentment at that place is sufficient

1 Norton v. Ellam (1837), 2 M. & W. at 464; Cf. Dodd v. Gill (1862), 3 F. & F. 261.

2 Dixon v. Nuttal (1834), 1 Cr. M. & R. 307. As to the words "at sight" alone, cf. Art. 18.

3 Bowes v. Howe (1813), 5 Taunt. 30, Ex. Ch. ; Tregothick v. Edwin (1816), 1 Stark. 468, printed memorandum; Spindler v. Grellet (1847), 1 Exch. 384, non-negotiable note; Sands v. Clarke (1849), 8 C. B. 751; Vander Donct v. Thellusson (1849), 8 C. B. 812.

4 Price v. Mitchell (1815), 4 Camp. 200; Exon v. Russell (1816), 4 M. & S. 507; Williams v. Waring (1829), 10 B. & C. 2.

5 Masters v. Baretto (1849), 8 C. B. 433.

6 Art. 160; Cf. Gibb v. Mather (1832), 2 Cr. & J. at 262, 263, Ex. Ch.

7 Roche v. Campbell (1812), 3 Camp. 247; Cf. Art. 166.

to charge the indorser,' but (perhaps) a presentment Presentto the maker elsewhere also suffices.2

ment to

charge indorser.

demand.

Art. 285. A promissory note payable on demand Note on must (probably) be presented for payment within a reasonable time in order to charge the indorsers.3

4

Explanation.-Reasonable time is a mixed question of law and fact. In determining what is a reasonable time regard must be had to the nature of the instrument as a continuing security."

ILLUSTRATION.

A note payable on demand is indorsed by C. to D. Ten months afterwards it is presented for payment and dishonoured. This may be a reasonable time."

Liabilities of Maker.

contract.

Art. 286. The maker of a promissory note is the Maker's principal debtor on the instrument. He engages that he will pay it at maturity according to its tenour.§

NOTE. The maker is sometimes called the drawer, but the primary and absolute liability of the maker of a note must be distinguished from the secondary and conditional liability of the drawer of a bill of exchange. In general the maker of a note corresponds with the acceptor of a bill of exchange, and the same rules apply to both. A note indorsed by the payee resembles an accepted bill payable to drawer's order and indorsed by the drawer, the payee corresponding with the drawer." The distinctions that exist between maker and acceptor arise from this. The acceptor is

10

1 Saunderson v. Judge (1795), 2 H. Bl. 510; Cf. Art. 166.

2 Id.; and Cf. Masters v. Baretto (1849), 8 C. B. 433.

3 Chartered Bank v. Dickson (1871), 3 L. R. P. C. 574, see at 579.

4 Id. at 584; Cf. Arts. 150 and 195.

5 Id. at 579-580; Cf. Serrel v. Derbyshire Ry. Co. (1850), 9 C. B. at 829.

6 Chartered Bank v. Dickson, suprà.

7 Cf. Chartered Bank v. Dickson (1871), 3 L. R. P. C. at 580, and Art. 272.

8 Story on Notes, § 118; Walton v. Mascall (1844), 13 M. & W. at 458.

9 Gwinnel v. Herbert (1836), 6 N. & M. 723.

10 Heylyn v. Adamson (1758), 2 Burr. at 678, Ld. Mansfield.

Q

Maker's contract.

Maker's estoppels.

not the creator of a bill, his contract is supplementary, while the maker of a note originates the instrument. Hence (a) a note cannot be made conditionally,' while a bill may be accepted conditionally (Art. 39); (b) the statute 1 & 2 Geo. 4, c. 78, § 1, relating to bills accepted payable at a particular place, has no application to notes, which are therefore on the same footing as bills previous to that Act; (c) maker and payee are immediate parties in direct relation with each other, while acceptor and payee, except in the case of a bill payable to drawer's order, are remote parties.3 See also the notes to Arts. 10, 20, 37.

Art. 287. The maker of a note payable to order by the fact of making it conclusively admits and warrants to a bona fide holder the existence of the payee and his then capacity to indorse.*

1 Art. 271 and 10.

2 Cf. Gibb v. Mather (1832), 2 Cr. & J. at 262, 263; Emblin v. Dartnell (1844), 12 M. & W. 840.

3 Cf. Bishop v. Young (1800), 2 B. &. P. at 83, Ld. Eldon.

4 Drayton v. Dale (1823), 2 B. & C. 293; Lane v. Kreckle (1869), 22 Iowa R. 399; Cf. Arts. 139, 212, 216.

APPENDIX.

STAMP ACT, 1870. (33 & 34 VICT. c. 97.)

defined.

Sec. 45.-The term "banker" means and includes any corpora- Banker tion, society, partnership, and persons, and every individual person carrying on the business of banking in the United Kingdom.

The term "bank note" means and includes (1) any bill of ex- Bank note defined. change or promissory note issued by any banker other than the Bank of England for the payment of money not exceeding £100 to the bearer on demand; (2) any bill of exchange or promissory note, so issued which entitles or is intended to entitle the bearer or holder thereof, without indorsement, or without any further or other indorsement than may be thereon at the time of the issuing thereof, to the payment of money not exceeding £100 on demand, whether the same be so expressed or not, and in whatever form, and by whomsoever such bill or note is drawn or made.

notes.

Sec. 46.-A bank note issued duly stamped, or issued un- Re-issue stamped, by a banker duly licensed or otherwise authorised to issue of bank unstamped bank notes, may be from time to time re-issued, without being liable to any stamp duty by reason of such re-issuing.

Sec. 47.-If any banker, not being duly licensed or otherwise Penalty authorised to issue unstamped bank notes, issues or causes or permits where to be issued any bank note, not being duly stamped, he shall forfeit is unthe sum of £50. stamped.

If any person receives or takes any such bank note in payment

bank note