[V., Q., W.A. 26.]

Provided that nothing in this section shall affect the ratification of an unauthorised signature not amounting to a forgery.

Victoria.-Insert in [ ] the words Part of this.

signatures.

25. A signature by procuration operates as notice Procuration that the agent has but a limited authority to sign, and the principal is only bound by such signature if the agent in so signing was acting within the actual limits of his authority.

as agent or in capacity.

[V., Q., W.A. 27.] 26. (1.) Where a person signs a bill as drawer, in- Person signing dorser, or acceptor, and adds words to his signature, representative indicating that he signs for or on behalf of a principal, or in a representative character, he is not personally liable thereon; but the mere addition to his signature of words describing him as an agent, or as filling a representative character, does not exempt him from personal liability.

[V., Q., W. A. 28.]

(2.) In determining whether a signature on a bill is that of the principal or that of the agent by whose hand it is written, the construction most favourable to the validity of the instrument shall be adopted.

The Consideration for a Bill.

Victoria.-Insert (3) before heading.

27. (1.) Valuable consideration for a bill may be con- value and holder stituted by

(a) Any consideration sufficient to support a
simple contract;

(b) An antecedent debt or liability. Such a debt
or liability is deemed valuable consideration
whether the bill is payable on demand or at a
future time.

N.B.-The text, in large type, is that of the original (English) Act.

Variations

therefrom appear in small type. The existence of variations is indicated by the

C

for value.

Accommodation bill or party.

Holder in due course.

(2.) Where value has at any time been given for a bill the holder is deemed to be a holder for value as regards the acceptor and all parties to the bill who became parties prior to such time.

(3.) Where the holder of a bill has a lien on it, arising either from contract or by implication of law, he is deemed to be a holder for value to the extent of the sum for which he has a lien.

28. (1.) An accommodation party to a bill is a [V., Q., W.A. 29.] person who has signed a bill as drawer, acceptor, or indorser, without receiving value therefor, and for the purpose of lending his name to some other person.

(2.) An accommodation party is liable on the bill to a holder for value; and it is immaterial whether, when such holder took the bill, he knew such party to be an accommodation party or not.

29. (1.) A holder in due course is a holder who has [V., Q., W. A. 30.] taken a bill, complete and regular on the face of it, under

the following conditions; namely,

(a) That he became the holder of it before it
was overdue, and without notice that it had
been previously dishonoured, if such was the
fact:

(b) That he took the bill in good faith and for
value, and that at the time the bill was
negotiated to him he had no notice of any
defect in the title of the person who nego-
tiated it.

(2.) In particular the title of a person who negotiates
a bill is defective within the meaning of this [] Act
when he obtained the bill, or the acceptance thereof, by
fraud, duress, or force and fear, or other unlawful means,

N.B.-The text, in large type, is that of the original (English) Act.

Variations

therefrom appear in small type. The existence of variations is indicated by the

[V., Q., W.A. 31.]

[V., Q., W.A. 32.]

or for an illegal consideration, or when he negotiates it
in breach of faith, or under such circumstances as amount
to a fraud.

Victoria.- Insert in [ ] the words Part of this.

(3.) A holder (whether for value or not), who derives his title to a bill through a holder in due course, and who is not himself a party to any fraud or illegality affecting it, has all the rights of that holder in due course as regards the acceptor and all parties to the bill prior to that holder.

value and good

30. (1.) Every party whose signature appears on a Presumption of bill is primâ facie deemed to have become a party thereto faith. for value.

(2.) Every holder of a bill is primâ facie deemed to be a holder in due course; but if in an action on a bill it is admitted or proved that the acceptance, issue, or subsequent negotiation of the bill is affected with fraud, duress, or force and fear, or illegality, the burden of proof is shifted, unless and until the holder proves that, subsequent to the alleged fraud or illegality, value has in good faith been given for the bill.

Negotiation of Bills.

Victoria.-Insert [4] before heading.

bill.

31. (1.) A bill is negotiated when it is transferred from Negotiation of one person to another in such a manner as to constitute the transferee the holder of the bill.

(2.) A bill payable to bearer is negotiated by delivery. (3.) A bill payable to order is negotiated by the indorsement of the holder completed by delivery.

(4.) Where the holder of a bill payable to his order transfers it for value without indorsing it, the transfer

N.B. The text, in large type, is that of the original (English) Act.

Variations

therefrom appear in small type. The existence of variations is indicated by the
use of brackets []. Different numberings of sections are stated in the margin.
C 2

Requisites of a valid indorse⚫

ment.

gives the transferee such title as the transferor had in
the bill, and the transferee in addition acquires the right
to have the indorsement of the transferor.

(5.) Where any person is under obligation to indorse
a bill in a representative capacity, he may indorse the bill
in such terms as to negative personal liability.

32. An indorsement in order to operate as a negotia- v.q., W. A. 33.] tion must comply with the following conditions, namely:

(1.) It must be written on the bill itself and be signed
by the indorser. The simple signature of the
indorser on the bill, without additional words, is
sufficient.

An indorsement written on an allonge, or on a
"copy" of a bill issued or negotiated in a country
where "copies" are recognised, is deemed to be
written on the bill itself.

(2.) It must be an indorsement of the entire bill. A
partial indorsement, that is to say, an indorse-
ment which purports to transfer to the indorsee
a part only of the amount payable, or which
purports to transfer the bill to two or more
indorsees severally, does not operate as a nego-
tiation of the bill.

(3.) Where a bill is payable to the order of two or
more payees or indorsees who are not partners
all must indorse, unless the one indorsing has
authority to indorse for the others.

(4.) Where, in a bill payable to order, the payee or
indorsee is wrongly designated, or his name is
mis-spelt, he may indorse the bill as therein
described, adding, if he think fit, his proper
signature.

N.B.-The text, in large type, is that of the original (English) Act. Variations
therefrom appear in small type. The existence of variations is indicated by the

[V., Q., W.A. 34.]

[V., Q., W. A. 35.]

[V., Q., W.A. 36.]

(5.) Where there are two or more indorsements on a
bill, each indorsement is deemed to have been
made in the order in which it appears on the bill,
until the contrary is proved.

(6.) An indorsement may be made in blank or
special. It may also contain terms making it
restrictive.

33. Where a bill purports to be indorsed conditionally conditional the condition may be disregarded by the payer, and pay- indorsement. ment to the indorsee is valid whether the condition has been fulfilled or not.

34. (1.) An indorsement in blank specifies no indorsee, Indorsement in and a bill so indorsed becomes payable to bearer.

(2.) A special indorsement specifies the person to whom, or to whose order, the bill is to be payable.

(3.) The provisions of this [] Act relating to a payee apply with the necessary modifications to an indorsee under a special indorsement.

Victoria.—Insert in [ ] the words Part of this.

(4.) When a bill has been indorsed in blank, any holder may convert the blank indorsement into a special indorsement by writing above the indorser's signature a direction to pay the bill to or to the order of himself or some other person.

blank and special indorsement.

indorsement.

35. (1.) An indorsement is restrictive which prohibits Restrictive the further negotiation of the bill or which expresses that it is a mere authority to deal with the bill as thereby directed and not a transfer of the ownership thereof, as, for example, if a bill be indorsed "Pay D. only," or "Pay D. for the account of X.," or "Pay D. or order for collection.'

Variations

N.B.-The text, in large type, is that of the original (English) Act.
therefrom appear in small type. The existence of variations is indicated by the