until the dishonour of the bill. See post, p. 305. The bill operates as conditional payment, the condition being that the debt revives if the bill cannot be realized. It is immaterial whether the bill be payable on demand or in futuro.1 In France, in the absence of special agreement, the renewal of a bill extinguishes the original bill by novatio.2 As to 1 Currie v. Misa (1875), L. R. 10 Ex. at pp. 163, 164, Ex. Ch. retiring a bill by substituting a forged renewal, which is inoperative, see Bell v. Buckley (1856), 25 L. J. Ex. 163. 8 64. 2 Nouguier, §§ 1032-1042. § 65. Acceptance for honour Acceptance and Payment for Honour. 65. (1) Where a bill of exchange has been supra protest. protested for dishonour by non-acceptance, or protested for better security, and is not overdue, any person, not being a party already liable thereon, may, with the consent of the holder, intervene and accept the bill suprà protest, for the honour of any party liable thereon, or for the honour of the person for whose account the bill is drawn. By sect. 93, post, p. 279, it is sufficient that the bill has been noted without the protest having been actually extended. The Act appears to enable the drawee as well as a stranger to the bill to accept for honour. The person for whose account a bill is drawn is commonly called the "third account." Beawes, No. 42, says that if a bill be accepted for the honour of an indorser, there may be another acceptance for the honour of any party prior to him; but this rule is clearly obsolete. If, however, the acceptor for honour fails before the maturity of the bill, a second acceptance for honour is sometimes obtained: cf. Story, $122. In the United States, as in England, the holder may refuse to allow acceptance for honour (see Story, § 122), for he wish to exercise his immediate right of recourse may which arises on non-acceptance. By German Exchange Law, Arts. 56, 57, if the bill contains a reference in need the holder must resort to the case of need; but in other he may refuse an acceptance for honour. In France cases 1 Mutford v. Walcot (1698), 1 Ld. Raym. 575. and Holland it seems the holder cannot refuse an acceptance for honour.1 § 65. (2) A bill may be accepted for honour for part Acceptance only of the sum for which it is drawn. (3) An acceptance for honour suprà protest in order to be valid must (a) be written on the bill, and indicate that it is an acceptance for honour : (b) be signed by the acceptor for honour. It would be sufficient if the acceptor for honour merely wrote "Accepted S. P." on the bill and signed it; but it is usual for him to state for whose honour he accepts. The practice is for an acceptance for honour to be attested by a notarial "act of honour" recording the transaction. A clause requiring this to be done was inserted in the bill, but was struck out in committee; so, perhaps, this is no longer essential. Cf. sect. 68 (3), as to payment for honour. By German Exchange Law, Art. 58, the acceptance for honour is to be recorded in an appendix to the protest. By French Code, Art. 126, the acceptance for honour must be recorded in the protest, and the protest must be signed by the acceptor: cf. Nouguier, § 570. (4) Where an acceptance for honour does not expressly state for whose honour it is made, it is deemed to be an acceptance for the honour of the drawer.3 (5) Where a bill payable after sight is accepted for honour, its maturity is calculated from the date of the noting for non-acceptance, and not from the date of the acceptance for honour. 1 See French Code, Art. 125; Nouguier, §§ 574, 575; Netherlands Code, Arts. 122, 123. 2 See Brooks' Notary, 4th ed. p. 93, and cf. Mitchell v. Baring (1829), 10 B. & C. 4; Indian Act, sect. 101. 3 See German Exchange Law, Art. 59; Nouguier, § 578, and Daniell, § 578, to same effect. for honour. § 65. Liability of acceptor for honour. This sub-section brings the law into accordance with mercantile understanding, and gets rid of an inconvenient ruling to the effect that maturity was to be calculated from the date of acceptance for honour.1 66. (1) The acceptor for honour of a bill by accepting it engages that he will, on due presentment, pay the bill according to the tenor of his acceptance, if it is not paid by the drawee, provided it has been duly presented for payment, and protested for non-payment, and that he receives notice of these facts.2 By sect. 93, post, p. 279, it is sufficient if the bill has been noted for protest, although the protest has not been extended. As a reason for requiring presentment for payment to the drawee, Lord Ellenborough says: "Effects often reach the drawee, who has refused acceptance in the first instance, out of which the bill may and would be satisfied if presented to him again when the period of payment had arrived."3 But by sect. 51 (6), ante, p. 174, where a bill drawn payable at the place of business or residence of some person other than the drawee has been dishonoured by non-acceptance, it must be protested for non-payment at the place where it is expressed to be payable, and no further presentment for payment to or demand on the drawee is necessary. Under the Continental codes, acceptance for honour is known as acceptance by "intervention," and the acceptor for honour is in the nature of a negotiorum gestor.* Under French Code, Art. 127; Netherlands Code, Art. 127; and German Exchange Law, Art. 58, an acceptor for honour is bound to give notice of his acceptance to the person for whose honour he has accepted. The rights of the acceptor for honour arise on payment. Under German Exchange Law, Art. 65, however, an acceptor for honour who is not called on to pay the bill is nevertheless entitled to a commission of one-third per cent. 1 See Williams v. Germaine (1827), 7 B. & C. 468, at p. 471. 2 See Story, § 123; Williams v. Germaine (1827), 7 B. & C. 468. 3 Hoare v. Cazenove (1812), 16 East, 391, at p. 398. 4 Story, § 125; Pothier, Nos. 113, 114; Nouguier, § 584. (2) The acceptor for honour is liable to the holder and to all parties to the bill subsequent to the party for whose honour he has accepted. It seems an acceptor for honour is bound by the estoppels which bind an ordinary acceptor, and also by the estoppels which would bind the party for whose honour he accepted; as to which see sects. 54, 55.1 § 66. to acceptor 67. (1) Where a dishonoured bill has been Presentment accepted for honour suprà protest, or contains a for honour or reference in case of need, it must be protested for case of need. non-payment before it is presented for payment to the acceptor for honour, or referee in case of need.2 By virtue of sect. 93, post, p. 279, it is sufficient if the bill has been noted, although the protest has not been extended. As to holder's option to resort to case of need, see ante, p. 38. (2) Where the address of the acceptor for honour is in the same place where the bill is protested for non-payment, the bill must be presented to him not later than the day following its maturity; and where the address of the acceptor for honour is in some place other than the place where it was protested for non-payment, the bill must be forwarded not later than the day following its maturity for presentment to him. This sub-section reproduces the effect of the repealed 6 & 7 Will. 4, c. 58. By sect. 92, post, p. 279, non-business days are to be excluded in computing the time. If the bill be not presented in due time to the acceptor for honour, it is conceived that he, and any party who 1 Phillips v. im Thurn (1866), L. R. 1 C. P. at p. 471; S. C. on demurrer (1865), 18 C. B. N. S. 694. 2 Cf. Hoare v. Cazenove (1812), 16 East, 391; German Exchange Law, Arts. 62 and 88. |