cessor of an official upon whom a bill is drawn is not binding." 19 Where several drawees are named in a bill it may be accepted by any one of the number," and the same is true when a bill is addressed to two persons in the alternative. An acceptance can be made by an agent, but there is some doubt, in such cases, as to whether the payee is bound to receive such an acceptance. SECTION 16. ACCEPTANCE, HOW AND WHEN MADE. An acceptance may be made either in writing or orally. If in writing, it is held that any form of words which do not in themselves negative the request of the bill should be treated as a valid acceptance.20 The following have been held to constitute a valid acceptance when written on the bill: "Seen;"" "Presented;" "I will pay this bill," "3 or simply the name of the drawee." An acceptance may be made on a separate paper; but in such cases the acceptance must be clear and unequivocal.25 23 "In jurisdictions where acceptances are not required to be in writing, or the statutes do not otherwise modify the common law, parol acceptances, if assented to by the holder, are permitted. A parol acceptance is any form of words used by the drawee which by reasonable intendment can be made to signify that he honors the bill. There are some limitations to this rule. These words are to be addressed to the drawer or holder. They must be assented to by the holder. "Spalding vs. McKay, 5 W. C. Q. B. (U.S.), 656. Smith vs. Milton, 133 Mass., 369. 19 Mountstephen vs. Brooke, 1 B. & Ald., 224. Leslie vs. Hastings, 1 Moody & "Barnet vs. Smith, 10 Frost (N. "Norton on Bills and Notes, Sec. 49; Parson on Bills and Notes, 282. "Ward vs. Allen, 2 Met. (Mass.), 53. "Spear vs. Pratt, 2 Hill (N. Y.), 582. "Coolidge vs. Payson, 2 Wheaton, 66. They must relate to an existing bill, for, if they pertain to a future bill, they will not be deemed an acceptance. They must be unequivocal, for, if they are equivocal, they will not be deemed an acceptance." " An implied acceptance may result from any actions on the part of the drawee which justify the holder in drawing the conclusion that the drawee intends to accept the bill. An acceptance of a bill may be made before the instrument has been completed as a bill of exchange," or after the maturity of the bill," in which latter case it is construed as a promise to pay on demand." A bill may be accepted after the death of the drawer. SECTION 17. ACCEPTANCE SUPRA PROTEST. An acceptance supra protest, or for honor, is an acceptance of a bill after protest, by a stranger to the bill, for the benefit of all subsequent parties, and for the protection of the credit of some party to the bill. An acceptance supra protest creates a conditional agreement to pay if the original drawee does not, and may be made either after dishonor for non-acceptance, or after protest for better security after acceptance. This last form has been described as follows: "The custom of merchants is stated to be that if the drawee of a bill of exchange abscond before the date when the bill is due, the holder may protest it in order to have better security for its payment, and should give notice to the drawer and indorsers of the absconding of the drawee; and if the acceptor of a Norton on Bills and Notes, page 93. "Pittsburgh Bank vs. Neal, 22 How. (U. S.), 97; Hopps VS. Savage, 69 Md., 513. "Wynne vs. Raikes, 5 East, 521; Stockwell vs. Bramble, 3 Ind., 428. "Grant vs. Shaw, 16 Mass., 343; foreign bill become bankrupt before it is due, it seems the holder may also in such case protest for better security. The neglect to make this protest will not affect the holder's remedy against the drawer and indorsers, and its principal use appears to be that by giving notice to the drawer and indorsers of the situation of the acceptor, or by which it is become improbable that payment will be made, they are enabled by other means to provide for the payment of the bill when due."""1 CHAPTER IV. INDORSEMENTS. SECTION 18. In GENERAL. In its most general and literal signification, an indorsement is an incidental or subsidiary writing upon the back of a paper or document to the contents of which it relates or pertains. "In Commercial Law an indorsement is the signuatre of the payee of a note, bill or check, or that of a third person, written on the back of the note or bill in evidence of his transfer of it, or his assuring its payment, or both. "In its strictly technical sense the term 'indorsement' is applicable only to negotiable paper, but in common parlance it is applied indifferently to bonds, bills and promissory notes, whether negotiable or otherwise."1 "The contract of indorsement is not an independent one, but a parasite which, like the chameleon, takes the hue of the thing with which it is connected. Attached to commercial paper, it becomes a commercial contract, operating as a contingent guaranty of payment, and a transfer of the title where the paper is negotiable; attached to any other chose in action, it becomes an equitable assignment of the beneficial interest without recourse to the assignor."" Bills and notes payable to order can only be transferred by indorsement. 1 American and Eng. Ency. of Bills and notes payable An equitable title, however, may pass without indorsement by mere delivery. |