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Delivery of Bill

party, drawer and exchange

DELIVERY OF BILL. " Delivery " means transfer of possession, actual or construc tive, from one person to another (Section 2, Bills of Exchange Act, 1882).

Section 21 of the same Act provides :- • "• tH Every t ontract on a bill, whether it he the drawer's, the acceptor's, or an indorser's, is incomplete and revocable, until delivery of the instrument in order to give etfe, t thereto " Provided that where an :accept ance is written on a bill, and the draA‘ce gives notice to or according to the directions of the person entitled to the bill that lie has accepted it, the acceptance then becomes complete and irrevocable.

" (2) As between immediate parties, and as regards a remote party other than a holder in due course, the delivery " (a) in order to be effectual must be made either by or under the authority of the party drawing, accepting, or indorsing, as the case may be : " b) may be shown to have been conditional or for a special purpose only, and not for the purpose of transferring the property in the bill.

" But if the bill be in the hands of a holder in due course a valid delivery of the bill by all parties prior to him so as to make them liable to him is conclusively pre sumed.

(3) Where a bill is no longer in the possession of a party who has signed it as drawer, acceptor, or indorser, a valid and unconditional delivery by him is presumed until the contrary is proved." Just as a deed is of no legal etfect until it has been delivered, so, it is seen from the above Section, a bill of exchange does not bind any of the parties to it if, although complete in form, it comes into the hands of a person through some fraud before it has been delivered. For example, a bill complete in form may be stolen from the desk of the drawer. if there has been no delivery of the bill, the drawer will not be liable upon it if it gets into circulation. 13ut when a bill is no longer in the posses sion of a party who has signed it as drawer, acceptor, or indorser, a valid and uncon ditional delivery by him is presumed until the contrary is proved.

(See BILL OF EXCHANGE, NEGOTIATION OF BILL OF EXCHANGE, STOLEN BILL, STOLEN CHEOUE, TRANSFEROR BY DELIVERY.)