Definition of a

bill.

Promissory notes.

Bills of exchange.

Italy. The requisites of bills of exchange are the same as those expressed by the French Code. Bills of exchange drawn from one place of the kingdom upon a foreign place may be issued by any person, even non-merchants. But bills drawn from one place of Italy to another can only be issued by a merchant upon another merchant (a).

Portugal.-A bill of exchange is the title of a contract of exchange. It may be defined to be a letter dated from any place, by which the party who signs it, and who is called the drawer, charges the party to whom it is written, and who is called the drawee, to pay in another place, either at sight, or at a fixed time, to a designated person, who is called the bearer, or to his order, to the party in whose favour it is indorsed, a sum of money therein stated, which the drawer acknowledges to have received from the payee, or for which he has given him credit, by the words "value received," or "value in account" (b).

Russia. A bill of exchange is drawn by the maker either upon himself or upon another person. In the first case it is a promissory note, in the latter it is a bill of exchange. The essential requisites of promissory notes are the designation of the place and the date, the time of maturity, the amount of the bill, the kind of money, and the name of the party to whom or to whose order the payment ought to be made; the drawer himself may be such person. The signature of the drawer, or that of the firm, and in default of a person authorised to this effect by a special procuration, is requisite. The note should show that the obligation is a promissory note, and also the value furnished, and the same must be written on stamped paper prescribed by Government. The use of a blank signature, instead of the bill itself, upon paper stamped for bills of exchange, is forbidden. The essential requisites of bills of exchange are, the name of the party who has to make payment, the domicile or place of payment, and a statement in the body of the bill, showing whether it has been drawn as a single bill, or whether it is the first, second, third, &c., of a set, or a copy. If the bill of exchange has been drawn in a foreign currency, it must declare the rate of exchange. A bill of exchange wanting in any such conditions whilst preserving the character of an obligation, can (b) Portuguese Code, §§ 321-324.

(a) Sardinian Code, $§ 119-122.

only, by a decree of the Tribunal of Commerce, be dealt with in case of dispute, by the law on bills of exchange. Besides the essential conditions above mentioned, it is requisite to state the sum in figures and in words, and whether the payment must be made after or without a letter of notice. The omission of these two clauses would not avoid the bill, although the payee might demand the avoidance of it (a).

bills.

Spain.-A bill of exchange ought to contain the following Requisites of requisites: The date. The time of payment. The name of the drawer. The sum to be paid, with an indication of the specie. The value given for in cash, goods, value understood, or on account. The name of the payee. The name and domicile of the drawee. The signature of the drawer or his attorney. A public notary may intervene in the drawing up of a bill of exchange, and secure the authenticity of the signature of the drawer. The clauses of value on account, or value received, render the payee responsible to the drawer for the amount, who may exact the payment of it in the form and time agreed upon among them, by the contract of exchange. Bills of exchange payable in the place where they are drawn, are only equivalent to simple promises, and the acceptances as securities only. The drawer may draw the bill to his own order, by expressing that he keeps the value of it. No alteration can be made upon a

bill of exchange, but with the consent of the drawer and the

traders.

payee. Where the drawer, acceptor, or indorsers of a bill of Where the exchange, are not merchants, they are only under the jurisdic- parties are not tion of the civil tribunals, and can only be forced to pay according to civil law; unless it be for a commercial operation, the existence of which may be proved by the bearer; yet any of the parties who is a merchant would be bound to the payment according to commercial law (b).

Sweden.-The bill of exchange ought to contain,-The date and place where it has been signed. Whether it be the first, second, third, &c. The time of payment. The name of the party to whom payment must be made. The amount of the bill mentioned in words and figures. By whom and how the value has been furnished. The domicile of the drawee, and that where payment is to be made. The signature of the drawer or maker of the bill.

(a) Russian Code, §§ 294-298.

(b) Spanish Code, §§ 426-434.

Four parties take part in a bill of exchange:-1st, The payee, or the party who gives the value and receives the bill; 2nd, The drawer or maker of the bill, namely, the party who receives the funds to pay them over upon another place, and who issues the bill; 3rd, The holder, or the party who, by the fact of his holding of the bill or by indorsement, has authority to receive the amount; 4th, The drawee or acceptor, or the party who executes the exchange. Three persons only take part in a bill of exchange when the bill is drawn especially in favour of the payee, without inserting the words "to order," or when the drawer gives order on another place to pay to his attorney, or to his own order. Two persons only are nominated in a bill when the drawer draws upon himself a bill of exchange for paying or reimbursing the amount to another person in another place. In all these cases the bill of exchange is valid (a).

Bills or notes subject to

Must be written on stamped paper.

SECTION II.

STAMPS.

BRITISH LAW.

Bills and notes made and payable in any part of the United stamp duties. Kingdom, and foreign bills before they are presented for payment and negotiated in the United Kingdom, are subject to stamp duties. Bills and notes made and payable in the United Kingdom must be written on paper previously stamped; the commissioners not being allowed to stamp any paper with any stamp after the bill has been written out (b). Any person making, or causing to be made, signed, or issued, or accepting or paying, or causing to be accepted or paid, any bill of exchange, draft, or order, or promissory note for the payment of money liable to stamp duties, without the same being duly stamped, is subject to a penalty of £50 for every offence (c).

Penalties on contravention of stamp duties.

Adhesive stamps on foreign bills.

Foreign bills need not be stamped before they are presented

(a) Swedish Ordinance on Bills of Exchange of February 1, 1748.

(b) 55 Geo. 3, c. 184; 31 Geo. 3, c. 25, s. 19; Steadman v. Duhamel, 1

C. B. 888; Jardine v. Payne, 1 B. & Ad. 670; Cundy v. Marriott, 1 B. & Ad. 696; Green v. Davies, 4 B. & C. 240. (c) 55 Geo. 3, c. 184, s. 11.

for acceptance, unless they have been indorsed or negotiated in this country (a). The stamping of foreign bills is effected by means of adhesive stamps attached to the bills before they are presented for payment, or before they are indorsed and negotiated in the United Kingdom, the stamps being cancelled by the holder writing his name or that of the firm, or the initials of the same, and the date and year in which he does so cancel the stamp (b).

And any person who presents for payment, or who pays, indorses transfers, or negotiates a foreign bill, without the proper stamp affixed thereon, and any person who ought to cancel such stamp refuses, or neglects so to do, is subject to the penalty of £50; and no person who takes or receives such bill, either on payment or as a security, or by purchase or otherwise, is entitled to recover thereon, or to make it available for any purpose whatever, unless at the time he took and received the bill there shall be such stamp affixed and cancelled (c). The duty of cancelling the stamp affixed on a foreign bill of exchange is equally imposed on both the holder and the transferee of the bill (d).

Any person who draws and issues, or who transfers or negotiates within the United Kingdom, otherwise than in a complete set and duly stamped, any bill purporting to be drawn in a set and payable out of the United Kingdom; and any person who takes or receives such bill within the United Kingdom, either in payment or in security, or by purchase or otherwise, without having transferred or delivered to him, duly stamped, the whole number of bills of which the set purports to consist, is not entitled to recover thereon, or make it available for any purpose whatsoever (e).

Instruments for which stamps have been used of an improper denomination or rate of duty, but of equal or greater value, are valid and effectual, except in cases where the stamp used is specially appropriated to any name on the face thereof (f). improper stamp, but of equal

57.

(a) Sharples v. Rickard, 2 H. & N.

(b) 17 & 18 Vict. c. 83, s. 4; 16 & 17 Vict. c. 59, as to allowing the initials only to be sufficient.

other instrument by having its
Bills and notes stamped with an
or greater value, may be re-

(c) 17 & 18 Vict. c. 83, s. 5.
(d) Pooley v. Brown, 31 L. J. C. P.

134.

(e) 17 & 18 Vict. c. 83, s. 6.
(f) 55 Geo. 3, c. 184, s. 10.

Penalty for the proper not affixing stamp, or not cancelling the same.

Stamp duty on bills drawn in sets.

Deeds not invalidated by stamps of improper denorate of duty, except in certain cases.

mination or

What sum determines the stamp.

Stamp duties on inland bills.

Inland bills not made payable on demand or to order.

Inland bills

for monthly or weekly pay

ments.

stamped by the commissioners on payment of the duty and a penalty, and when so re-stamped they are received in evidence (a).

The sum which determines the amount of stamp duty is the principal sum mentioned in the note, and not a sum compounded of principal and interest (b). So the amount of the stamp upon a bill or note depends on the date expressed on the face of the bill or note, not on the time when it was actually issued (c).

INLAND BILLS.

The following are the stamp duties chargeable on inland bills and notes, drafts or orders, for the payment to the bearer or to order at any time, otherwise than on demand, of any sum of money-Not exceeding £5, 1d.; exceeding £5 and not exceeding £10, 2d.; exceeding £10 and not £25, 3d.; exceeding £25 and not £50, 6d.; exceeding £50 and not £75, 9d.; exceeding £75 and not £100, 18.; exceeding £100 and not £200, 28.; exceeding £200 and not £300, 38.; exceeding £300 and not £400, 48.; exceeding £400 and not £500, 5s.; exceeding £500 and not £750, 7s. 6d. ; exceeding £750 and not £1000, 10s. ; exceeding £1000 and not £1500, 158.; exceeding £1500 and not £2000, £1; exceeding £2000 and not £3000, £1 108.; exceeding £3000 and not £4000, £2 (d); and when the sum exceeds £4000, then for every £1000 or part of £1000 of the money thereby made payable, 10s. (e).

Inland bills, drafts, or orders for the payment of any sum of money, though not made payable to the bearer on demand or to order, pay the same duties as bills of exchange for the like sum payable to the bearer or order, if the same shall be delivered to the payee or some person on his or her behalf. Inland bills, drafts, or orders for the payment of any sum of money, weekly, monthly, or at any other stated periods, pay the same duty as bills payable to bearer or to order on demand, if made payable to the bearer or to order, or if delivered to the payee or some person on his or her behalf, whether the total amount of the money thereby made payable

(a) 37 Geo. 3, c. 136, s. 5; Kaiser

v. Grout, 29 L. J. Exch. 20.

(b) Pruessing v. Ing, 4 B. & Ald. 204.

32.

(c) Williams v. Jarrett, 5 B. & Ad.

(d) 16 & 17 Vict. c. 59.

(e) 23 & 24 Vict. c. 15.