Negotiability.—When a bill contains words prohibiting transfer, or indi cating an intention that it should not be transferable, it is valid as between the parties thereto, but is not negotiable. A negotiable bill may be made payable either to order or to bearer. The usual method is to write across the face of the bill the words " not negotiable." A bill is payable to bearer when it is expressed so to be, or on which the only or last indorsement is an indorsement in blank. A bill is payable to order when expressed so to be, or when expressed to be payable to a particular person, and does not contain words prohibiting transfer, or indicating an intention that it should not be transferable. Where a bill, either originally or by indorsement, is payable to the order of a specified person, and not to him or his order, it is nevertheless payable to him or his order, at his option.
How and when bill may be made for a sum payable with interest ; by stated instalments ; by such instalments with a proviso that upon default in payment of any instalment the whole shall become due, according to a rate of exchange indicated by the bill, or to be ascertained according to directions contained therein. In case of discrepancy between the words and figures as to the sum payable, the words will determine the amount. If pay able, with interest, the same runs from the date of the bill, or if undated, from the date of its issue. A bill payable on demand is one either (a) payable on demand, or at sight, or on presentation • or (b) in which no time for pay ment is expressed. A bill accepted or indorsed when overdue is, as regards the acceptor or any indorser when so overdue, a bill payable on demand. An instrument payable on a contingency is not a bill, nor does it become so upon the happening of the event ; a bill may, however, be payable at a fixed period after date or sight, or on or at a fixed period after the occurrence of a specified event which is certain to happen, though the time of happening may be un certain. If a bill is undated, the holder may insert the true date of issue or acceptance ; and if the holder in good faith and by mistake inserts a wrong date, and in every case where a wrong date is inserted, if the bill subsequently conies into the hands of a holder in due course, it will be payable as if the date so inserted had been the true date. The date on a bill is deemed to be the true date, but evidence may be given to show that another date is the true one ; a bill may be ante-dated, post-dated, or dated on a Sunday. Three days, called days of grace, are added to the date on which a bill, not one pay able on demand, is payable, and the last of these days is the one on which it becomes really due and payable. Where the last day is either Sunday, Christmas Day, Good Friday, or a day appointed by Royal Proclamation as a public fast or thanksgiving day, the bill becomes clue and payable on the pre ceding day ; but where such last day is any ether bank holiday, or when the last day is a Sunday and the second day of grace is a bank holiday, the bill is due and payable on the succeeding business day. To calculate the time of payment of a bill payable at a future determinable time, the day from which the time is to begin to run is excluded, and the day of payment included ; the term " month " always meaning a calendar month when determining the time of payment of any bill. Where a bill is payable at a fixed period after sight, the time begins to run from the date of the acceptance if the bill be accepted, and from the date of noting or protest if the bill be noted or pro tested for non-acceptance, or for non-delivery.
Case of need and optional stipulations.—The drawer or any indorser of a bill may insert therein the name of a person to whom the holder may resort in case the bill is dishonoured. Such a person is called the referee in case of need ; but the holder has the absolute option of resorting to him, or not doing so. The drawer or any indorser may insert in a bill an express stipulation (a) negativing or limiting his own liability to the holder, or (b) waiving as regards himself some or all of the holder's duties.
Acceptance.—The necessary conditions of a valid acceptance are—(a), it must be written on the bill and be signed by the drawee, whose mere signature without additional words is sufficient ; and (b), it must not express that the drawee will perform his promise by any other means than the payment of money. The bill may be accepted before signature by the drawer, or whilst otherwise incomplete, and when overdue, or even after dishonour. When a bill payable after sight is dishonoured by non-acceptance, and the drawee subsequently accepts it, the holder, in the absence of any different agreement, is entitled to have the bill accepted as of the date of first presentment to the drawee for acceptance. Acceptance may be either " general," that is to say, without qualification to the order of the drawer ; or " qualified," as when in express terms the effect of the bill as drawn is varied. The following are instances of qualified acceptance : conditional, where payment by the acceptor is made dependent on the fulfilment of a condition therein stated ; partial, where part only of the amount of the bill is accepted payable ; local, where the acceptance is to pay at a particular specified place only, and not elsewhere —the omission of the last four words would make the acceptance general ; qualified as to time ; and the acceptance of some one or more of the drawees, but not of all. The words: " Accepted. John Smith," and " Accepted. Payable at Lloyd's Bank, London. John Smith," constitute general accept ances. The following are instances of qualified acceptances : "Accepted. Payable at Lloyd's Bank only and not elsewhere. John Smith; " " Accepted for 1'50 only. John Smith ; ' " Accepted. Payable by monthly instalments of £20 each. John Smith; " " Accepted on condition of a three months' renewal. John Smith." In the case of a bill drawn payable after sight, the acceptance should state the dates, thus : "Accepted. 4th March 1912. Payable at Lloyd's Bank. Due 7th June 1912. John Smith." Incomplete a simple signature on a blank stamped paper is delivered by the signer in order that it may be converted into a bill, it operates as a authority to fill it up as a complete bill for any amount the stamps will cover, using the signature for that of the drawer, or the acceptor, or an indorser ; and, in like manner, when a bill is wanting in any material particular, the person in possession of it has a facie autho rity to fill up the omission in any way he thinks fit. In order that any such instrument m hen completed may be enforceable against any person who became a party thereto prior to its completion, it must be filled up within a reason able time, and strictly in accordance m ith the authority given ; reasonable time for this purpose is a question of fact. But if any such instrument after completion is negotiated to a holder in due course it shall be valid and effectual for all purposes in his hands, and he may enforce it as if it had been filled up within a reasonable time and strictly in accordance with the authority given. , - .