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Parties to Bill of Exchange

drawer and acceptor

PARTIES TO BILL OF EXCHANGE. The parties to a bill of exchange are the drawer, the acceptor (called the drawee before he accepts it), the payee (who is often the same person as the drawer) and the indorsers. The parties may be either " immediate " or " remote.' They are " immediate parties " when they are imme diately connected with each other as the drawer and acceptor, the drawer and payee, and an indorsee and the indorser immediately in front of him. They are " remote parties ' when they are not closely related to each other, as the acceptor and an indorsee.

With regard to the capacity and authority of parties to a bill, the Bills of Exchange Act, 1882, provides : " Section 22. (1) Capacity to incur lia bility as a party to a bill is co extensive with capacity to contract.

" Provided that nothing in this Section shall enable a corporation to make itself liable as drawer, acceptor or indorser of a bill unless it is competent to it so to do under the law for the time being in force relating to corporations.

" (2) Where a bill is drawn or indorsed by an infant, minor, or corporation having no capacity or power to incur liability on a bill, the drawing or indorsement entitles the holder to receive payment of the bill, and to enforce it against any other party thereto.

" Section 23. No person is liable as drawer, indorser, or acceptor of a bill who has not signed it as such : Provided that " (I) Where a person signs a bill in a trade or assumed name, he is liable thereon as if he had signed it in his own name : " (2) The signature of the name of a firm is equivalent to the signature by the person so signing of the names of all persons liable as partners in that firm." (See BILL OF Ex CHANGE.)