drawee in case

value.

So long as the bill is in the hands of the drawer or payee, Right of the the acceptor may resist the payment of the bill, if he has of want of accepted without value or for accommodation; but if it has passed to a third person, who has given value for it, the plea of want of consideration will fail (a). And the fact that such bonâ fide holder for value knew that the bill was accepted for the accommodation of the drawer or payee is not a sufficient answer by the acceptor to an action by the holder (b).

Nothing will discharge the acceptor but payment or release. But a release in a composition deed would not cover a bill or note which the creditor had previously indorsed for value (c). A release of one of two or more joint acceptors would operate as a release to all (d), but mere forbearance or omission to demand time would not be a discharge to the other (e).

What will discharge the ac

ceptor.

ance and its

Upon the refusal of the drawee to accept, or upon his offer to Non-acceptaccept the bill in a qualified manner, it is the duty of the holder, consequences. within a reasonable time, to give notice of non-acceptance to Notice. the drawer or indorser against whom he intends to resort (ƒ). Even where the bill did not require to be presented for acceptance, if it be presented and dishonoured, due notice must be given (g).

cuse notice.

Death, bankruptcy, or known insolvency of the party to What will exwhom notice should be given, are no excuses for want of notice of non-acceptance (h). Where, however, the drawer or indorser has absconded, or is in prison, or where there are insuperable

(a) Southall v. Rigg, 11 C. B. 481; Kearns v. Durell, 6 C. B. 596; Sparrow v. Chisman, 9 B. & C. 241; Charles v. Marsden, 1 Taunt. 224; Stein v. Yglesias, 1 C. M. & R. 565.

(b) Smith v. Knox, 3 Esp. 46; Fentum v. Pocock, 5 Taunt. 192; Jewell v. Parr, 13 C. B. 909; Parr v. Jewell, 16 C. B. 684; Lazarus v. Cowie, 3 Q. B. 459; Pooley v. Harradine, 7 E. & B. 431; Rayner v. Pussey, 28 L. J. Exch. 132.

(c) Margetson v. Aitkin, 3 E. & B. 338; Harrhy v. Wall, 1 B. & Ald. 103; Cranley v. Hillary, 2 M. & S. 120.

(d) Nicholson v. Revill, 4 A. & E. 675.

(e) Perfect v. Musgrave, 3 Price, 111; Price v. Edmunds, 10 B. & C. 578; Wright v. Simpson, 6 Ves. 774; Strong

v. Foster, 17 C. B. 201.

(f) Turner v. Leach, 4 B. & Ald. 451; Roscow v. Hardy, 12 East, 434. The object of such a notice is not merely to enable the drawer to withdraw his effects from the hands of the drawee, but to provide for payment of the bill thus suddenly cast upon himself, and to make prompt arrangements suited in this unexpected emergency. Rucker v. Hiller, 3 Camp. 118; TinBrown, 1 T. R. 167; Darbishire v. Parker, 5 East, 2.

dal v.

(g) Roscow v. Hardy, 2 Camp. 458.

(h) Russell v. Langstaff, Doug. 514; Esdaile v. Sowerby, 11 East, 114; Ex parte Johnson, 1 Mont. & Ayrt. 622; Ex parte Bignold, 2 Mont. & Ayrt. 633.

Foreign bills must be protested.

Time when the notice should be sent.

obstacles to the sending of such notice, as a sudden illness or death of the holder, or a war, then the want of immediate notice may be excused, and the same may be sent as early as possible (a). The sending of notice of non-acceptance is also excused when the day happens to be a festival day, as Christmas Day or Good Friday, or other fast-day appointed by the State, or where the holder is prohibited by his religious duties from attending to business (b). Notice of dishonour to the drawer is not necessary where he had no effects in the hands of the drawee, and he had no right to expect that the bill would be accepted.

On the non-acceptance of a foreign bill the holder must, besides giving notice, protest the bill in the usual legal manner by means of a notary, and the protest should be made at the place where the acceptance should have been given; or if the bill was drawn to a place, and payable at another, at either of those places (c). The protest should be made on the day when the acceptance is refused, and within business hours (d). But it is not requisite for the holder to protest any inland bill for nonacceptance in order to preserve his rights against the drawer and previous indorsers (e).

The notice must be sent within reasonable time after the acceptance is refused, the holder being required to use diligence in communicating the fact to the party against whom he means to resort (f). Where the parties are in the same town, each party should have a day to give notice, and it is sufficient if the notice be sent so as to be received the day following that of the dishonour, or following that on which he receives intelligence of . such dishonour (g). Where the parties are at a distance, the notice should be sent not later than by the mail of the following day; or if there be no mail on that day, the mail of the subsequent day (h).

(e) Windle v. Andrews, 2 B. & Ald. 696.

(f) Tindal v. Brown, 1 T. R. 168; Rowe v. Tipper, 13 C. B. 256.

(g) Scott v. Lifford, 9 East, 347; Smith v. Mullett, 2 Camp. 208; Rowe v. Tipper, 13 C. B. 255.

(h) Geill v. Jeremy, M. & M. 61; Hawkes v. Salter, 4 Bing. 715; Bray v. Hadwen, 5 M. & S. 68; Wright v. Shadeross, 2 B. & Ald. 501.

The notice should be sent simultaneously to all the parties on whom the holder intends to resort, and in order to charge an earlier party to a bill by notice of dishonour from himself, the holder must send him the notice as promptly as if to his own immediate indorser (a). The notice must be sent by the holder or his agent, or by any party on the bill except the drawee, and the notice by one enures in favour of all (b). Notice should be given to all the parties liable on the bill, if the holder intends resorting against them all. If the holder gives notice to his immediate indorser only, his power of recourse is then restricted. to him (c). Any one of the parties in the bill may, by his conduct, dispense the holder from the necessity of giving notice of non-acceptance (d).

Upon the non-acceptance of the bill, the holder acquires a right of immediate payment from the parties liable to him; and he has a right to recover the principal sum, damages, and interest (e).

To whom and

by whom the notice should

be sent.

suprà protest.

An acceptance suprà protest, or after the bill has been Acceptance protested for non-acceptance by the drawee, or an acceptance for honour, is held not as an absolute, but as a conditional acceptance, the acceptor engaging to pay the bill, if it be not paid by the drawee himself. After refusal by the drawee to accept the bill, any person may accept it for the honour either of the drawer, or of any of the indorsers, the holder being at liberty to receive or to refuse such an acceptance. But the acceptor suprà protest is liable to pay the bill only where the same on its becoming due has again been presented to the drawee for payment, and was duly protested for non-payment. After the second presentment and protest for non-payment the bill must be again presented to the acceptor suprà protest not later than the day after the bill has become due, and if the acceptor suprà protest, or for honour, resides in any town or place other than the place where the bill was made payable, the holder must forward such bill the day after it became due. When the acceptor suprà protest pays the bill suprà protest, he must

(a) Rowe v. Tipper, 10 C. B. 256. (b) Newen v. Gill, 8 C. & P. 367; Chapman v. Keane, 3 Ad. & E. 193; Harrison v. Roscoe, 15 M. & W. 231; Lysaght v. Bryant, 9 C. B. 46.

(c) Rowe v. Tipper, 10 C. B. 249.

(d) Phipson v. Knoller, 4 Camp.

185.

(e) Ballingall v. Gloster, 3 East, 481; Bishop v. Young, 9 B. & P. 83; Pollard v. Herries, 3 B. & P. 335; De Tastet v. Baring, 11 East, 265.

declare, in the presence of a notary, and before payment, that he pays suprà protest, causing such declaration to be duly entered in the notarial register (a). The acceptor of a bill suprà protest for the honour of the drawer, or of any of the indorsers, has a remedy against him for the payment of the bill (b).

FOREIGN LAWS.

The word "accepted" must be added.

Protest for non-accept

ance.

France. The acceptance of a bill of exchange must be written, and expressed by the word accepted. If the bill is drawn at one or more days or months of sight, the acceptance must be dated, and in the want of date, the bill would be payable at the time expressed in it, computing the time from the date of the bill. Although it is prudent to add the word "accepted," the acceptance may be expressed in other words, provided there be no doubt whatever as to the intention of the drawee. The acceptance of a bill payable in another place than that where the acceptor resides, indicates the domicile where the payment must be made or the acts carried on. The acceptance cannot be conditional, but may be restricted to the sum accepted. In this case the holder is bound to protest the bill for the surplus. A bill of exchange must be accepted on presentation, or at the latest within twenty-four hours of the presentation. After the twenty-four hours, unless it be returned either accepted or non-accepted, the party so returning it is responsible for damage towards the bearer (c). The refusal of acceptance is established by an act called protest for non-acceptance. Upon the notification of the protest of non-acceptance, the indorser and the drawer are respectively bound to give security for the payment of the bill when it becomes due, or to pay the amount with the costs of protest and re-exchange. The security given by the drawer or by the indorser protects only the party secured. The protest must be drawn up by a notary or by an usher. It must be made at the domicile of the drawee, or at his last known domicile, and at the domicile of the persons indicated to pay in case of need. In case of absence of the drawee, or of false indi

(a) Geralopulo v. Wieler, 10 C. B. 690.

(b) Smith v. Nissen, 1 T. R. 269.

(c) French Code of Commerce, $$

121-125.

for honour.

cation of domicile, the protest is preceded by an act proving the endeavours made by the officer to find out the drawee. The protest contains the literal copy of the bill. It must state the presence or absence of the drawee, and the motive of the refusal to pay. The protest for non-acceptance is required in all cases the bill must be presented for acceptance, and if the protest has not been made within the time provided by law, the holder loses his right against the indorsers and against the drawer, if he can prove to have made due provision. When a bill has been pro- Acceptance tested for non-acceptance, it may be accepted by a third person for honour of the drawer, or of any one of the indorsers. The fact of the intervention is stated in the protest, and the party intervening must put his name either in the protest or in the bill. The party accepting for honour must give notice of his intervention to the party in whose honour he has accepted. The holder of the bill preserves all his rights against the drawer and indorsers in consequence of the want of acceptance by the drawee himself, notwithstanding the bill has been accepted by intervention (a).

an accept

ance.

United States.-The acceptance may be by parol or in writ- Requisites of ing, and general or special. Though a bill comes into the hands of a person with parol acceptance, and he takes it in ignorance of such an acceptance, he may avail himself of it afterwards. If the acceptance be special, it binds the acceptor sub modo and according to the acceptance. But any acceptance varying the absolute terms of the bill, either in the sum, the time, the place, or the mode of payment, is a conditional acceptance which the holder is not bound to receive, and if he does receive it, the acceptor is not liable for more than he has undertaken.

A promise to accept, made before the acceptance of the bill, will amount to an acceptance in favour of the person to whom the promise was communicated, and who took the bill on the credit of it. A letter written a reasonable time before or after the date of the bill, describing it, and promising to accept of it, is, if shown to the person who afterwards takes the bill upon the credit of that letter, a virtual acceptance, and binding upon the person who makes the promise.

An acceptance once fairly and fully made and consummated

(a) French Code of Commerce, §§ 126-128.