Conditional : of goods and should be made to that part of our topic dealt with in the division devoted to absolute bills of sale in order to discover the difference between absolute and conditional bills of sale. It will, nevertheless, bear repetition to state that a conditional bill of sale is one given by the grantor as a security for the payment of money. It is absolutely necessary that it should) be in the form prescribed by the Bills of Sale Act (1878) Amendment Act 1882 ; but the Act does not apply to any debentures issued by any mortgage, loan, or other incorporated company, and secured upon the capital stock or goods, chattels, and effects of such company. We now set out a bill of sale, which may be adapted to a case where the repayment of the money secured is to be by instalments ; this is a form, when so adapted, somewhat more extensive than that actually set out in the Act, but it is one which has already stood the test of judicial criticism, and pro nounced valid ; the necessity for a form providing for repayment by instal ments was apparently overlooked by the legislature.
This indenture, made the first day of April one thousand nine hundred and ten, Between John Smith of 14 Grahame Road, in the City of Oxbridge in the County of Lincoln, stpckbroker's clerk (hereinafter called "the grantor "), of the one part, and James Gordon, of 169 Lower Baker Street, in the county of London, private inquiry agent (hereinafter called " the grantee "), of the other part Witnesseth that in consideration of the sum of Thirty-six pounds now paid to the grantor by the grantee (the receipt whereof the grantor hereby acknowledges) [or, if such is the case that in consideration of the sum of Thirty-six pounds now owing from the grantor to the grantee], the grantor doth hereby assign unto the grantee, his executors, administrators, and assigns : All and singular the several chattels and things specifically described in the schedule hereunto annexed by way of security for the payment of the sum of Thirty-six pounds and interest thereon at the rate of Twelve pounds per cent. per annum : And the grantor doth further agree and declare that he will pay to the grantee the principal sum afore said, together with the interest then due, on the first day of October next, and if the said principal sum is not paid on that day, then will pay interest thereon, or on so much thereof as shall for the time being remain owing, after the rate aforesaid half-yearly on the first day of April and the first day of October [or, if such is the case : And the grantor hereby agrees and declares that he will pay to the grantee the said principal sum of Thirty-six pounds by equal monthly instal ments, Three pounds each, the first instalment to be paid on the first day of May next, and the remaining instalments to be paid on the first day of every subsequent calendar month, until the whole principal money shall be paid, and also will on the same monthly days respectively pay to the grantee the interest then due on the principal sum for the time being remaining unpaid : Provided always that if any monthly instalment shall be in arrear fourteen days, the whole of the principal money then remaining unpaid shall become payable immediately] : And the grantor doth also agree with the grantee that ho will, at all times during the continuance of this security, keep the said chattels and things insured against loss or damage by fire in the sum of Forty pounds at least in the Old World Insurance Office, or in some other insurance office to be approved of by the grantee, his executors, administrators, or assigns : And also duly and regularly pay the rent, rates and taxes payable by him in respect of the said messuage or dwelling-house, and also will produce to the grantee, his executors, administrators, or assigns, upon demand in writing, the last receipt for such rent, rates or taxes, and the policy of such insurance as aforesaid, and the receipt for the last premium payable in respect thereof, unless he shall have a reasonable excuse for not doing so Provided always that the chattels hereby assigned shall not be liable to seizure or to be taken possession of by the grantee for any cause other than those specified in section 7 of the Bills of Sale Act (1878) Amendment Act, 1882. In witness
whereof the said parties to these presents have hereunto set their hands and seals the day and year first before written.
Statutory will be convenient to go through the above bill of sale point by point, beginning with the date. It is necessary that the true date of the execution of the document be given, but an error, ob viously a mistake, will not be material if it can be corrected from the affidavit. The parties, namely, the grantor and grantee, should be correctly described with their proper names, addresses, and occupations ; that is to say, they must be so described as to render outside evidence unnecessary for their identification. The next point is the consideration ; and in respect to this, truth and accuracy in the statement of it is most necessary, careful note being taken, however, of the fact that every bill of sale given in consideration of any sum under £30 will be void. No other general rule for stating the consideration can be given than that it should be so stated that it contains on the face of it substantially the whole transaction (Rosejield v. Provincial Union Bank). Thus, if it is money, then the whole amount passing should appear ; if a past debt, then the fact thereof, and of the agreement to give the bill of sale ; if a past debt and a present advance, the two elements should be carefully distinguished. The application of the money need not be stated ; but in order to evade the rule that the consideration must be at least .€30, it will be no good to pay over that sum with one hand, and take part of it back with the other—such evasions as these, suggested in infinite variety as they may be by an infinite number of different circumstances, will do nothing but render the bill of sale void. Take one example where the evasion was apparently absolutely bond in intent : a bill of sale, stating the consideration as " money now paid," was executed three days before the money was handed over to tins grantor, it having been at the time of execution on deposit at a bank under notice, but with the full inten tion on the part of the depositor that it should ultimately be paid to the grantor ; this bill of sale was held to be void as there was no " money now paid," only an agreement to lend.