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Exemptions from duties on promissory notes.

hands of any banker or bankers, which shall contain an agreement or memorandum, importing that interest shall be paid for the money so deposited.

The following instruments are exempted from the duties on promissory notes:

All notes promising the payment of any sum or sums or money out of any particular fund which may or may not be available; or upon any condition or contingency, which may or may not be performed or happen; where the same shall not be made payable to the bearer or to order; and also where the same shall be made payable to the bearer or to order, if the same shall amount to twenty pounds, or be indefinite.

And all other instruments bearing in any degree the form or style of promissory notes, but which in law shall be deemed special agreements, except those hereby expressly directed to be deemed promissory notes.

But such of the notes and instruments here exempted from the duty on promissory notes shall, nevertheless, be liable to the duty which may attach thereon as agreements or otherwise.

Promissory notes for the payment of money issued by the governor and company of the Bank of England are exempted. from the preceding and all other stamp duties (a).

Rates of duties.

FOREIGN LAWS.

France.-A bill of exchange must be written on stamped paper. The stamp duties on bills are determined by the law of 1860, which imposes the following duties on all bills of exchange, promissory notes, cheques, and all other negotiable instruments :-Bills of 100 frs., and under, 5 cents.; exceeding 100 frs. to 200 frs., 10 cents.; exceeding 200 frs. to 300 frs., 15 cents.; exceeding 300 frs. to 400 frs., 20 cents. ; exceeding 400 frs. to 500 frs., 25 cents.; exceeding 500 frs. to 1,000 frs., 50 cents.; exceeding 1,000 frs. to 2,000 frs., 1 fr.; exceeding 2,000 frs. to 3,000 frs., 1 fr. 50 cents. ; exceeding 3,000 frs. to 4,000 frs., 2 frs. ; and so progressively following the same progression, and without fractions. Any person receiving from the maker a bill or note not stamped, is bound to cause it to

(a) 17 & 18 Vict., c. 83.

be stamped within the fortnight of its date, and, in any case, before he negotiates it. This stamping will be subjected to a charge of 15 cents for 100 frs., or fractions of 100 frs., which will increase with the amount of the bill. Bills coming from abroad, or from colonies, where no stamp duties have been established and payable in France, must be stamped before they are negotiated, accepted, or paid, at the same rates of duties. In case of contravention of this law, the drawer, acceptor, payee, or first indorser of the instrument not stamped will be liable to a penalty of 6 per 100 frs. As regards foreign or colonial bills payable in France, the first indorser residing in France, and, in the absence of an indorser, the holder will be liable to the fine of 6 per cent. If the contravention consists only in the use of a stamp of less amount, the fine will be charged on the sum for which the duty has not been paid. The holder of a bill of exchange not stamped will have no right of action, in case of non-acceptance, against the drawer, and where it was accepted, he will have his right only against the acceptor and drawer, if the latter does not prove that he had provided for it at maturity. The holder of any other instrument subject to stamp, and not stamped, will have a right of action against the maker only. Any stipulation to the contrary will be of no effect. All the parties on the bill will be jointly liable for the payment of the stamp duty and fines, but the holder will pay such duty and fines with a right to exercise his claim against the other parties. No person, company, or public establishment can receive payment, or cause payment to be received, for any instrument not stamped, under a penalty of a fine of 6 per cent. of the amount received. Any mention in the bill, or any agreement to the effect that the bill shall be returned without expense, will be invalid, if it relate to instruments not stamped. The present law is applicable to bills of exchange, promissory notes, and other instruments signed in France, and payable out of France. The exemption of stamp duty granted to duplicate of bills is maintained. Nevertheless, if the first of exchange, duly stamped, is not joined to the one in circulation, the latter must be stamped according to the present law.

Duties on foreign and colonial bills.

Words "value received" not material.

Bills pre

sumed to be on good consideration, except the contrary be shown.

Want of consideration

as between immediate parties.

SECTION III.

CONSIDERATION.

It is the general practice in bills and notes to insert the words "value received," but they are not material (a). Every bill and note is presumed to be honest in its inception and course, and an adequate consideration is always presumed, whether expressed or not (b). In order, therefore, to impeach the plaintiff's title, on the ground of want of consideration, it is incumbent on the defendant to prove that there was no consideration for the bill, either to himself or to any of the parties between him and the plaintiff.

Where there is no fraud, nor any suspicion of fraud, but the simple fact is that the defendant received no consideration for his acceptance, then it is for the defendant to prove that he had no value for the bill. But where the bill is connected with some fraud, or a suspicion of fraud be raised from its being shown that something has been done with it of an illegal nature, or that it has been clandestinely taken away, or has been lost or stolen, then the holder must show that he gave value for it, and the onus probandi is cast upon the plaintiff (c).

As between the immediate parties, that is, between the acgood defence ceptor and drawer, the drawer and payee, and payee and indorsee, want of consideration is a good defence to an action on a bill or note, a valuable and sufficient consideration being necessary to support every contract (d). So where the drawee has accepted the bill or note for accommodation of the drawer he cannot recover upon it (e). But as between the parties and third persons holding the bill or note for value, no evidence of want of consideration or other grounds is admitted to impeach the apparent value received (f).

(a) The words "value received" im-
port value received from the payee.
In calling upon the drawee to pay his
order, the drawer intends to put the
drawee in mind of the duty which he
owes from having received value for it.

(b) White v. Ledwick, 4 Doug. 247;
Grant v. Da Costa, 3 M. & S. 251;
Scott v. Laing, M. S. 1535; Brown's
Executors v. Thom's Representatives,
M S. 1536.

(c) Mills v. Barber, 1 M. & W. 425;

Hall v. Featherstone, 3 H. & N. 286.

(d) Jackson v. Warwick, 7 T. R. 121; Barber v. Backhouse, Peake, 61; Knight v. Hunt, 5 Bing. 432.

(e) Thomas v. Fenton, 2 C. B. 68; Crofts v. Beale, 11 C. B. 172; Kearns v. Durell, 6 C. B. 596.

(f) Collins v. Martin, 1 B. & P. 651; Masters v. Ibberson, 8 C. B. 100; Robinson v. Reynolds, 2 Q. B. 196; Bramah v. Roberts, 3 Bing. N. C. 963.

A total failure of the consideration where the party has been deprived entirely of all benefit of the thing for which the bill was given would also constitute a valid defence as between the parties (a).

When the consideration given was only partial, there will be a want of consideration for the surplus; provided the quantum to be deducted on that account be liquidated and in the nature of a certain debt (b). Where, however, there is a failure of consideration, it furnishes only a distinct and independent cause of action. So in an action on a bill of exchange accepted for the price of goods, the defendant cannot give in evidence that the goods were of a bad quality, but is driven to a cross action (c).

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consideration,

A consideration is either a direct advantage granted by the What is a good drawer or payee to the drawee or maker of the bill or note, or to a third person by his desire, for some detriment, loss, responsibility, or service sustained by the drawer or payee for the sake or at the instance of the drawee or maker. A consideration must be valuable, legal, and sufficient. A consideration founded on natural affection, or mere love or gratitude, would not be a sufficient consideration to support a bill or note (d). Forbearance, or an agreement to suspend a judgment of a just debt; and even forbearance of a debt due by a third person would be a sufficient consideration (e). Future services may be a valid consideration, provided there be a contract for such services, which may be enforced by the giver of the note if the recipient omits to perform (f).

And though mere moral consideration would not be sufficient (g), a pre-existing debt, even where the debt is barred by

(a) Stephen v. Wilkinson, 2 B. & Ad. 326.

(b) Moggridge v. Jones, 14 East, 486; Spiller v. Westlake, 2 B. & Ad. 155; Mann v. Lent, 10 B. & C. 877.

(c) Tye v. Gwynne, 2 Camp. 347; Solomons v. Turner, 1 Stark. 51; Morgan v. Richardson, 7 East, 482; Fleming v. Simpson, 1 Camp. 40; Sully v. Frean, 10 Exch. 535; Trikey v. Larne, 6 M. & W. 278; Jones v. Jones, 9 M. & W. 84; Warwick v. Nairn, 10 Exch. 762.

(d) Holliday v. Atkinson, 5 B. & C.

501; Fisk v. Cox, 18 John, U. S. R.
145; Blogg v. Pinkers, 1 M. & R.
125.

(e) Baker v. Walker, 14 M. & W.
465; Percival v. Frampton, 2 C. M.
& R. 180; Trueman v. Fenton, Cowp.
544; Brix v. Braham, 1 Bing. 281;
Balfour v. The Sea Fire Life Assurance
Company, 3 C. B. N. S. 300.

(f) Hulse v. Hulse, 17 C. B. 711.
(g) Littlefield v. Shee, 2 B. & Ad.
811; Eastwood v. Kenyon, 11 A. & E.
438.

Moral consideration not

sufficient.

Illegal consideration.

Bill illegal if granted under duress.

the statute of limitation (a), a debt incurred during infancy when the bill or note is accepted after full age (b), and the debt of another person for a bill payable at a future day, would support a bill or note (c).

A consideration is illegal if it violates the rules of religion or of morality, and if in contravention of public policy or in violation of law. Immoral considerations are prostitution (d), future illicit cohabitation (e), or sale or publication of libellous and indecent prints or pictures. Illegal considerations are contracts for general restraint of trade (f), restraint of marriage (g), marriage brokerage (h), evasion of the revenue (i); impeding or traversing the course of justice (k), sale of public offices (), gaming (m), and gaming policies on ships or lives (n). A bill or note would be void if granted under duress, fraud, or imposition, or whilst the drawee or maker was intoxicated (0).

SECTION IV.

CUSTOMARY CLAUSES IN FOREIGN BILLS.

A bill of exchange is often drawn on account of a third person, with the expressions, " valeur en compte avec M. P.,” or "laquelle somme vous payerez au compte de M. P.;" but in such cases the party for whose benefit or account the bill is drawn acquires no direct liability on the bill, though he may be bound to

(a) Swift v. Tyson, 16 Peter Am., R. 1; Hyeling v. Hastings, 1 Ld. Raym. 389; Dean v. Crane, 6 Mod. 309; Quantock v. England, 5 Burr. 2630.

(b) Stevens v. Jackson, 6 Taunt. 106; Harrison v. Clifton, 17 L. J. Exch. 233; Harrison v. Cotgreave, 4 C. B. 562; Roberts v. Bethell, 12 C. B. 71.

(c) Popplewell v. Wilson, 1 Stra. 264. (d) Girardy v. Richardson, 1 Esp. 13. () Binnington v. Wallis, 4 B. & Ald. 651; Gibson v. Dickie, 3 M. & S. 463; Beaumont v. Reeve, 8 Q. B. 483.

(f) Tallis v. Tallis, 1 E. & B. 391; Price v. Green, 16 M. & W. 346.

(g) Lowe v. Peers, 4 Burr. 2225; Baker v. White, 2 Vern. 215; Hartley v. Rice, 10 East, 22.

(h) Hall v. Potter, 3 Lev. 411; Roberts v. Roberts, 3 P. Wms. 66.

(2) Nerot v. Wallace, 3 T. R. 17; Fallowes v. Taylor, 7 T. R. 475; Edgecombe v. Rodd, 3 East, 294.

(k) Richardson v. Mellish, 2 Bing.

229.

(2) Willison v. Patteson, 7 Taunt. 440; 5 & Ed. 6, c. 19; 49 Geo. 3, c. 126; 53 Geo. 3, c. 129.

(m) 8 & 9 Vict. c. 109, s. 17; Parsons v. Alexander, 5 E. & B. 263. (n) 19 Geo. 2, c. 37; 14 Geo. 3, c. 48.

(0) Duncan v. Scott, 1 Camp. 100; Rees v. Marquis of Headfort, 2 Camp. 574; Pitt v. Smith, 3 Camp. 33; Gregory v. Fraser, 3 Camp. 454.

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