by the holders for the purpose of using them, within a moderate time (for indefinite delay, of course, cannot be allowed), as part of the circulating medium of the country." The jury concurred with his Lordship, that the delay was not unreasonable (f). Where the purchaser of a bill on Rio Janeiro, at sixty days' sight, the exchange being against him, kept it nearly five months, and the drawee failed before presentment, it was held, that the delay was not unreasonable. "The bill," says Tindal, C.J., "must be forwarded within a reasonable time under all the circumstances of the case, and there must be no unreasonable or improper delay. Whether there has been, in any particular case, reasonable diligence used, or whether unreasonable delay has occurred, is a mixed question of law and fact, to be decided by the jury, acting under the direction of the Judge, upon the particular circumstances of each case" (g). But where a bill, payable after sight, was drawn in duplicate on the 12th of August, in Newfoundland, and not presented for acceptance in London till November 16, and no circumstances were proved to excuse the delay, it was held unreasonable (h), the Court laying some stress on the fact that the bill was drawn in sets. CHAPTER Presentment must be made by or on behalf of the holder What is due to the drawee, or his duly authorized agent (2), at a reason- presentment. able hour (j), on a business day (k), before the bill is over due. (f) Shute v. Robins, 1 M. & M. 133; 3 C. & P. 80. (g) Mellish v. Rawdon, 9 Bing. 416; 2 M. & Sc. 570. (h) Straker v. Graham, 4 M. & W. 721. (i) Where the holder's servant called at the drawee's residence, and showed the bill to some person in the drawee's tanyard, who refused to accept it, but the witness did not know the drawee by sight, nor could he swear that the person to whom he offered the bill was the drawee or represented himself to be so, Lord Ellenborough held, "The evidence here offered proves no demand on the drawee, and is therefore insufficient." Cheek v. Roper, 5 Esp. 175. (j) Code, s. 41. The usual banking hours are ten till four. Government cheques are not pay able at the Bank of England after (k) Non-business days are- CHAPTER Where a bill is addressed to two or more drawees, who XIII. are not partners, presentment must be made to them all, unless one have authority to accept for all; presentment, then, may be made to him only. When excused. Excused by circulation. Where the drawee is dead, presentment may be made to his personal representative; but the holder is not bound to do so, as this is one of the circumstances excusing presentment. He may treat the bill as dishonoured by non-acceptance; and so too if the drawee be bankrupt, presentment may be made either to him or his trustee, or the holder may treat it as dishonoured. When authorized by agreement or usage, presentment through the Post-office is sufficient (). Presentment is excused, and a bill may be treated as dishonoured by non-acceptance, when the drawee is dead or bankrupt, or is a fictitious person, or a person incapable of contracting by a bill. Where, after the exercise of reasonable diligence, such presentment cannot be effected. Where, although the presentment have been irregular, acceptance has been refused on some other ground. It is no excuse for not presenting, that the holder has reason to believe that the bill will be dishonoured (m). As we have already seen, when the bill is payable after sight, the holder, instead of presenting it, may circulate it within a reasonable time. "If a bill drawn at three days' sight," says Mr. Justice Buller, "be kept out in circulation for a year, I cannot say that there would be laches; but if, instead of putting it into circulation, the holder were to lock it up for any length of time, I should say that he would be guilty of laches" (n). "But this cannot mean," says Tindal, C. J., "that keeping it in hand for any time, however short, would make him guilty of laches. It can ber, if a week day, if not the 27th. (1) Code, s. 41 (1), c and d, and (m) Code, s. 41 (1) e. The holder must present, even although he know that the drawer has desired the drawee not to accept. Hill v. Heap, D. & R., N. P. C. 57. When the drawee has absconded, the bill may be treated at once as dishonoured. Anon., 1 Ld. Raymond, 743. But if he have merely changed his address, or if the bill be not directed to him at any particular place, the holder must use reasonable diligence to find him out. Collins v. Butler, 2 Stra. 1087; Bateman v. Joseph, 12 East, 433; Smith v. Bank of New South Wales, 41 L. J., P. C. 26. (n) Muilman v. D'Eguino, 2 H. Bl. 565. XIII. never be required of him instantly on receipt of it, under CHAPTER all disadvantages, to put it into circulation. To hold the purchaser bound by such an obligation would impede, if not altogether destroy, the market for buying and selling foreign bills, to the great injury, no less than to the inconvenience, of the drawer himself" (o). Two bills, one for 400l., the other for 500l., were drawn from Lisbon, on May 12, at thirty days after sight, indorsed to G. at Paris, and by G. to R. at Genoa, and by R. indorsed over. They were not presented for acceptance till 22nd August. The jury found, and the Court concurred, that the bills were, under the circumstances, presented within a reasonable time (p). When the bill is presented, it is reasonable that the What time drawee should be allowed some time to deliberate whether for deliberahe will accept or no. It seems that he tion may be demand twentymay given to four hours for this purpose (and that the holder will be drawee. justified in leaving the bill with him for that period); at least, if the post do not go out in the interim (q), or unless, in the interim, he either accepts or declares his resolution not to accept (r). If more than twenty-four hours be given, the holder ought to inform the antecedent parties of it (s). in party presenting. If the owner of a bill who leaves it for acceptance, by Consequence his negligence enable a stranger to give such a description of negligence of it as to obtain it from the drawee, without negligence on the drawee's part, the owner cannot maintain trover for it against the drawee (t). When a bill is duly presented for acceptance, and is not Dishonour by accepted within the customary time, the person presenting non-acceptit must treat it as dishonoured by non-acceptance. If he ance. (0) Mellish v. Rawdon, 9 Bing. 416; 2 M. & Sc. 570. (p) Goupy v. Arden, 7 Taunt. 160; 2 Marsh, 454. In America it is held, that though put into circulation it must still be presented within a reasonable time. Byles on Bills, 6th American edition, p. 283. (q) Marius, 15; Com. Dig. Merch. F. 6; Bellasis v. Hester, 1 Ld. Raym. 281. See the observations of Lord Cairns, Van Diemen's Bank v. Victoria Bank, B.B.E. CHAPTER do not, the holder shall lose his right of recourse against the drawer and indorsers (u). XIII. Qualified acceptance. A bill is dishonoured by non-acceptance when it is duly presented for acceptance, and an absolute or general acceptance is refused or cannot be obtained; or when presentment for acceptance being excused, the bill is not accepted. Subject to the other provisions of the Code, when a bill is dishonoured by non-acceptance, an immediate right of recourse against the drawer and indorsers accrues to the holder, and no presentment for payment is necessary (v). The holder has a right to expect an absolute or general acceptance, and may treat the bill as dishonoured if he do not obtain one. Still he may, if he please, take a qualified acceptance. Where a qualified acceptance is taken, and the drawer or an indorser has not expressly or impliedly authorized the holder to take such, or subsequently assented thereto, such drawer or indorser is discharged from liability on the bill (w). When the drawer or indorser of a bill receives notice of a qualified acceptance, and does not within a reasonable time express his dissent to the holder, he shall be deemed to have assented thereto (x). (u) Code, s. 42 (1). He must give due notice of dishonour (s. 48), and if the bill be a foreign bill, have it protested (s. 51). (v) Code, s. 43. The other provisions seem to be-s. 15, as to a referee in case of need, resort to whom is optional on the holder's part; ss. 65-68, as to acceptance supra protest or for honour; and ss. 48 and 51 as to notice of dishonour and protest. (w) See the judgment of Bay ley, J., in Sebag v. Abitbol, 4 M. & S. 466; Code, s. 44. Where the holder has given due notice of an acceptance as to part, the drawer and indorsers are not discharged, sub-s. (2). A foreign bill accepted as to part must be protested for the balance. (a) Ibid. sub-s. (3). As to qualified acceptances, see Code, s. 19, and post, Chapter on Acceptance. IMMEDIATELY upon the dishonour of a bill on due pre- Protest neces sentment, whether by non-acceptance or non-payment, a sary on right of ecourse against the drawer and indorsers accrues foreign bills, to the holder; but in order to avail himself of this right and why. he must (unless excused) give due notice of dishonour, and, if the bill be a foreign bill, cause it to be protested, or, at all events, noted on the day it was dishonoured. So, too, upon dishonour by non-payment of a note, notice of dishonour must be given to the indorsers. The duties of the holder of a dishonoured bill (or note), whether for non-acceptance or non-payment, being in fact identical, it will be convenient to consider them here. And inasmuch as the protest must be effected, or, at all events, commenced by noting on the very day of dishonour, it will be considered first. When a foreign bill, appearing on its face to be such, is dishonoured by non-acceptance or partially accepted, or, not having been dishonoured by non-acceptance, is dishonoured by non-payment, it was and still is necessary, by the custom of merchants, in order to charge the drawer and indorsers, that the dishonour should be attested by a protest (a). For, by the law of most foreign nations (b), (x) Gale v. Walsh, 5 T. R. 239; Rogers v. Stephens, 2 T. R. 713; Orr v. Maginnis, 7 East, 359; 3 Smith 328; Code, ss. 44, 51. |