Under this section a notarial copy of the protest alone is not made primâ facie evidence of the giving of notice. A notarial copy of the notice and a notarial certificate of the service must be produced.

As to the protest of an inland bill, see sec. 11.

Sec. 12.

act as

13. No clerk, teller or agent of any bank shall act as a notary Officer of in the protesting of any bill or note payable at the bank or at bank not to any of the branches of the bank in which he is employed. 53 notary. V., c. 33, s. 61.

This section is a re-enactment of R.S.C. 1886, c. 123, sec. 11, and has been law in Ontario and Quebec since 1850. There is no corresponding section in the English Act.

Especially in view of sec. 11, which makes a protest primâ facie evidence of dishonour and notice, it is considered important that a bill or note should be protested by an independent person-not by a clerk, teller or agent of the bank whose interest it is to establish the facts of dishonour and notice.

tion, pur

14. Every bill or note the consideration of which consists, Considerain whole or in part, of the purchase money of a patent right, or chase money of a partial interest, limited geographically or otherwise, in a of patent. patent right, shall have written or printed prominently and legibly across the face thereof, before the same is issued, the words Given for a patent right.

2. Without such words thereon, such instrument and any Absence of necessary renewal thereof shall be void, except in the hands of a holder words. in due course without notice of such consideration. 53 V., c. 33, s. 30.

Sub-sec. 2 was added to the Act by the Senate in amendment to the House of Commons bill in 1890. Sub-sec. 1 of this section, and also secs. 15 and 16 are a re-enactment of R.S.C. 1886, c. 123, secs. 12, 13 and 14. The original Act, passed in 1884, was entitled "An Act for the better prevention of fraud in connection with the sale of patent rights."

Sec. 14.

Bill void in hands of endorsee

with notice.

Transferee

to take with equities.

Even under the Act as it stood before the enactment of subsec. 2, it was held that a note, the consideration of which consisted of the purchase money of a patent right, was void in the hands of an endorsee for value with notice of the consideration, by reason of the absence of the words "given for a patent right." (Johnson v. Martin, 1892, 19 A.R. 592, overruling Girvin v. Burke, 1890, 19 O.R. 204.)

A joint and several note made by two persons in partnership is invalid under this section, although one of the makers was already indebted to the payee on a personal account to more than the amount of the note, and the consideration for the note was the purchase of a patent right only as regards the other maker. C. & F. were partners in the manufacture of certain articles under a patent owned by F. F. assigned to C. a part interest in the patent in consideration of C.'s authorizing F. to sign the firm name to a note in favour of F.'s creditor. It was held that the note was void because it had not "given for a patent right" written or printed across its face. (Craig v. Benjamin, 1894, 24 S.C.R. 278.) "The endeavour in this case was to render legal by indirect means that which it was the aim and very object of the statute to prevent. The cases demonstrating the futility of such attempts are collected in Johnson v. Martin, 19 A.R. at pp. 595, 597." (Samuel v. Fairgrieve, 1893, 24 O.R. at p. 490.)

Without notice.

See notes to sec. 56, as to what constitutes notice of illegality.

15. The endorsee or other transferee of any such instrument having the words aforesaid so printed or written thereon, shall take the same subject to any defence or set-off in respect of the whole or any part thereof which would have existed between the original parties. 53 V., c. 33, s. 30.

It is evident from these sections, that the object of this legislation is to protect persons who give bills or notes for patent rights, and to enable them to defend themselves against transferees to the same extent as they could against the original payee. In order to secure this object more effectually, the legislature by the next following section, makes it an indictable offence

knowingly to issue, sell or transfer such notes, without having Sec. 15. the prescribed words written or printed thereon. (Johnson v.

Martin, 1892, 19 A.R. at p. 600.)

By sec. 2, clause (b) set off is included in action, and by clause (k) defence includes counter-claim.

defective

16. Every one who issues, sells or transfers, by endorsement Transferring or delivery, any such instrument not having the words Given note. for a patent right printed or written in manner aforesaid across the face thereof, knowing the consideration of such instrument to have consisted, in whole or in part, of the purchase money Indictable of a patent right, or of a partial interest, limited geographically offence. or otherwise, in a patent right, is guilty of an indictable offence and liable to imprisonment for any term not exceeding one year, or to such fine, not exceeding two hundred dollars, as the court thinks fit. 53 V., c. 33, s. 30.

See notes to secs. 14 and 15.

Penalty.

Cheques.

Promissory notes.

CHAPTER XXXIV.

BILLS OF EXCHANGE: FORM OF BILL AND INTERPRETATION.

Part II. of the Act, entitled "Bills of Exchange," extends from sec. 17 to sec. 164. These sections are contained in Chapters XXXIV. to L. of this book. The subsequent "Parts" of the Act are:

III. Cheques on a Bank: secs. 165 to 175.

IV. Promissory Notes: secs. 176 to 187.

By sec. 165, except as otherwise provided in Part III., the provisions of this Act applicable to a bill of exchange payable on demand apply to a cheque. Part III. contains special provisions with regard to a cheque which is not presented for payment within a reasonable time, and the termination of a bank's duty and authority to pay a cheque, and also with regard to crossed cheques.

By sec. 186, subject to the provisions of Part IV. and except as provided by sec. 186, the provisions of the Act relating to bills of exchange apply, with the necessary modifications, to promissory notes. In the application of such provisions the maker of a note shall be deemed to correspond with the acceptor of a bill, and the first endorser of a note shall be deemed to correspond with the drawer of an accepted bill payable to drawer's order. The following provisions as to bills do not apply to notes, namely; those relating to (a) presentment for acceptance; (b) acceptance; (c) acceptance supra protest; (d) bills in a set.

PART II.

BILLS OF EXCHANGE.

Bill of exchange

defined.

Form of Bill and Interpretation.

17. A bill of exchange is an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay, on de

mand or at a fixed or determinable future time, a sum certain Sec. 17. in money to or the order of a specific person, or to bearer.

2. An instrument which does not comply with the requisites Non-compliance with aforesaid, or which orders any act to be done in addition to the requisites. payment of money, is not, except as hereinafter provided, a bill

of exchange.

tional order.

3. An order to pay out of a particular fund is not uncondi- Unconditional within the meaning of this section: Provided that an unqualified order to pay, coupled with,

(a) an indication of a particular fund out of which the drawee is to reimburse himself, or a particular account to be debited with the amount; or,

(b) a statement of the transaction which gives rise to the bill;

is unconditional. 53 V., c. 33, s. 3. Eng. s. 3.

Bill of exchange.

A bill is sometimes called a draft and an accepted bill an acceptance. The person who gives the order is called the drawer. The person to whom it is addressed is called the drawee, and if he signifies his assent to the order (sec. 35), he is then called the acceptor. The person to whom the money is payable is called the payee or bearer (sec. 2), as the case may be. If he transfers the bill by indorsement (sec. 2) he is called the endorser (sec. 131); if by delivery only, he is called the transferor by delivery (sec. 137). The holder is defined by sec. 2.

No special form of words is essential to the validity of a bill, Thus an order, sufficient in other respects, running "Credit C. or order in cash" instead of "Pay" is a valid bill (Ellison v. Collingridge, 1850, 9 C.B. 570; Lovell v. Hill, 1838, 6 C. & P. 238).

A bill may be drawn in any language. (See, e.g., Re Marseilles Co., 1885, 30 Ch. D. 598.)

Where an instrument is so ambiguously worded that it is doubtful whether it was intended for a bill or for a note, the holder may treat it as either at his option. (Chalmers, p. 9; Golding v. Waterhouse, 1876, 3 Pugs. (N.B.) 313.) See also sec. 26, by which certain instruments may be treated either as bills or notes at the holder's option.