Sec. 42. on a legal holiday or non-juridical day in the province where any Last day of such bill is payable, then the day next following, not being a grace. Non-juridical days. General. legal holiday or non-juridical day in such province, shall be the last day of grace. 53 V., c. 33, s. 14. Eng. s. 14. Payable on demand. As to when a bill is payable on demand, see sec. 23. In Canada sight bills are not payable on demand and are entitled to days of grace. Days of grace. A suggestion to abolish days of grace, in accordance with recent legislation in many continental countries, was made in committee, when the English bill was under consideration, but was withdrawn. Chalmers, p. 36. A note is made payable by two equal instalments on January 1st and February 1st. The instalments fall due on January 4th and February 4th. (Oridge v. Sherborne, 1843, 11 M. & W. 374.) A bill dated January 1st payable 30 days after date is due on February 3rd. The proviso to this section is a re-enactment of the similar provision originally contained in the Bank Act of 1872 (35 Vict., c. 8). A non-negotiable note, not payable on demand, is entitled to days of grace (Smith v. Kendall, 1794, 6 T.R. 123). Notice of dishonour and action. Notice of dishonour may be given at any time on the third day of grace immediately upon payment being refused by the acceptor (sec. 98), but action cannot be brought on a bill until the following day. See notes to sec. 95. 43. In all matters relating to bills of exchange, the following and no other days shall be observed as legal holidays or nonjuridical days: (a) In all the provinces of Canada, Sundays, New Year's Day, Good Friday, Easter Monday, Victoria Day, Sec. 43. Dominion Day, Labour Day, Christmas Day, The birthday (or the day fixed by proclamation for the The day next following New Year's Day, Christmas Day, (b) In the province of Quebec in addition to the said days, Quebec. The Epiphany, The Ascension, All Saint's Day, Conception Day; tion. (c) In any one of the provinces of Canada, any day ap- Provincial pointed by proclamation of the Lieutenant Governor of proclamasuch province for a public holiday, or for a fast or thanksgiving within the same, and any non-juridical day by virtue of a statute of such province. 53 V., c. 23, s. 14; 56 V., c. 30, s. 1; 57-58 V., c. 55, s. 2; 1 Ed. VII., c. 12, sec. 2 and 4. Cf. Eng. ss. 14 and 92. The provisions relating to legal holidays or non-juridical days were originally contained in the Bank Act of 1872. Dominion Day was added in 1879, and Easter Monday in 1883. Under the Bills of Exchange Act, 1890, the Annunciation, Corpus Christi, and the Festival of St. Peter and St. Paul were legal holidays in Quebec, but they were struck out in 1893. In 1894 Labour Day and in 1901 Victoria Day were added to the Sec. 43. Time of payment. Sight bill. list of Dominion legal holidays. The present Bank Act contains no provision as to legal holidays. As to non-business days, see notes, supra. 44. Where a bill is payable at sight, or at a fixed period after date, after sight, or after the happening of a specified event, the time of payment is determined by excluding the day from which the time is to begin to run and by including the day of payment. 53 V., c. 33, s. 14. Cf. Eng. s. 14. The words "at sight or" are not in the English Act. See notes to sec. 23. 45. Where a bill is payable at sight or at a fixed period after sight, the time begins to run from the date of the acceptance if the bill is accepted, and from the date of noting or protest if the bill is noted or protested for non-acceptance, or for nondelivery. 53 V., c. 33, s. 14. Cf. Eng. s. 14. The words "at sight or" are not in the English Act. See notes to sec. 23. A bill is payable at sight. The acceptance bears date March 1st. The bill is due March 4th. The date is presumed to be the true date unless the contrary be proved (sec. 29). As to omission of date see sec. 30. The proper date of an acceptance after a previous refusal to accept is the date of the first presentment (sec. 37). As to date of acceptance of a bill payable at sight or after sight, see sec. 80. A bill payable after sight is noted for non-acceptance on January 1st. It is accepted supra protest on January 5th. The time of payment must be calculated from January 1st (sec. 150). The holder of a foreign bill, payable 60 days after sight, makes an agreement that if it is dishonoured by non-acceptance, he will re-present it for payment at maturity. Acceptance is refused. The time of payment must be calculated from the day the bill was protested, and not from the day of presentment to the drawee for acceptance. (Campbell v. French, 1795, 6 T. R. 200.) There is no acceptance of a note (sec. 186); "after sight" in Sec. 45. a note therefore means after mere exhibition to the maker. (Sturdy v. Henderson, 1821, 4 B. & Ald. 592.) As to protest for non-delivery, see sec. 120. 46. Every bill which is made payable at a month or months Due date. after date becomes due on the same numbered day or the month in which it is made payable as the day on which it is dated, unless there is no such day in the month in which it is made payable, in which case it becomes due on the last day of that month, with the addition, in all cases, of the days of grace. 2. The term 'month' in a bill means the calendar month.' Month.' 53 V., c. 33, s. 14. Cf. Eng. s. 14. The only provision in the English Act corresponding to this section is that "The term month in a bill means calendar month." Sub-sec. 1 is a re-enactment of a provision which was originally contained in the statute 35 Vict., c. 10 (1872). It is declaratory of the usage of merchants. A bill dated 31st January payable "without grace" one month after date is due February 28th. A similar note dated January 1st is due February 1st. Bills dated 28th, 29th and 30th November, respectively, payable three months after date, all fall due on March 3rd, except in a leap year, when the first note would fall due on March 2nd. Capacity distinguished from authority. Capacity of parties. Corporations. CHAPTER XXXVIII. CAPACITY AND AUTHORITY OF PARTIES. Capacity must be distinguished from authority. Capacity means power to contract so as to bind oneself. Authority means power to contract on behalf of another so as to bind him. Capacity to contract is the creation of law. Authority is derived from the act of the parties themselves. Want of capacity is incurable. Want of authority may be cured by ratification. Capacity or no capacity is a question of law. Authority or no authority is usually a question of fact. Again, capacity to incur liability must be distinguished from capacity to transfer. An executed contract is often valid where an executory contract cannot be enforced. An endorsement usually consists of two distinct contracts, one executed, the other executory. It transfers the property in the bill, and it also involves a contingent assumption of liability on the part of the endorser. Chalmers, p. 61. Capacity and Authority of Parties. 47. Capacity to incur liability as a party to a bill is coextensive with capacity to contract: Provided that nothing in this section shall enable a corporation to make itself liable as drawer, acceptor or endorser, of a bill, unless it is competent to it so to do under the law for the time being in force relating to such corporation. 53 V., c. 33, s. 22. Eng. s. 22. This section is declaratory. The last words of the provision of the English Act corresponding to this section are "relating to corporations" instead of "relating to such corporation." The change was intended to make it clear that the proviso referred to a special Act relating to any particular corporation in question as well as to the law respecting companies in general. There is no special law of capacity applicable to parties to bills and notes. The rule laid down by this section refers the |