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whole debt, and in Griffin v. Weatherby, L. R. 3, Q. B. 753, it
was held that the words, " on account of money advanced by
me to the S. and F. company," were merely explanatory of
the cause of drawing the bill, and did not affect its validity;
but where besides mentioning the cause of drawing, words
are added, which have the effect of making a separate agree-
ment, the whole bill is bad, Davies v. Wilkinson, 2 Perry v.
Davidson, 256.

(d.) In the case of a bill payable after date, the date is material, but if issued without a date any holder is entitled to insert the true date, vide § 12. An undated bill is not a warrant for summary diligence, vide note (a) on § 98.

(e.) The law of Scotland, differing from the law of England, does not require that value shall have been given for a bill, Law v. Humphreys, 20th July, 1876, 3 R. 1192, vide § 27, and note (a) thereon.

(f) Where it is necessary to prove the consideration, place of drawing, or payment, parole evidence is admitted, vide § 100.

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foreign bills.

4. (1.) An inland bill is a bill which is or on the Inland and face of it purports to be (a) both drawn and payable within the British Islands, or (b) drawn within the British Islands upon some person resident therein. Any other bill is a foreign bill (a).

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For the purposes of this Act (b) "British Islands mean any part of the United Kingdom of Great Britain and Ireland, the islands of Man, Guernsey, Jersey, Alderney, and Sark, and the islands adjacent to any of them being part of the dominions of Her Majesty.

(2.) Unless the contrary appear on the face of the bill the holder may treat it as an inland bill (c).

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Effect

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(a.) The character of the bill is determined, when it is drawn, and is not altered on acceptance. Where no place of payment is specified in the bill, the address of the drawee determines the place of payment, vide § 45 (4). A bill drawn in the British Islands upon a person resident there, does not become a foreign bill by the fact of the drawee accepting it abroad, or in his acceptance fixing a place abroad as the place of payment, but the interpretation of the acceptance of an inland bill is determined by the law of the place where it is made, vide § 72 (2).

(b.) This section does not determine whether a bill is a foreign bill or not, for the purposes of the Stamp Act, vide § 97 (3 a). Accordingly, a bill drawn in Scotland upon a person resident in the Isle of Man is an inland bill, so far as the provisions of this Act are concerned, but is a foreign bill in the sense of the Stamp Act, Griffin v. Weatherby, L. R. 3, Q. B. 753, vide 33 & 34 Vict. c. 97, vide Appendix.

(c.) If a bill does not appear on the face of it to be a foreign bill, protest is unnecessary in case of dishonour, vide § 51 (2). The drawing of a bill is interpreted according to the law of the place where the contract of the drawer is made, vide § 72 (2); but this subsection gives the holder the option of treating a foreign bill which does not appear on the face of it to be a foreign bill, as either an inland bill or a foreign bill.

5. (1.) A bill may be drawn payable to, or to the ferent parties order of, the drawer; or it may be drawn payable to, or to the order of, the drawee (a).

to bill are the same person.

(2.) Where in a bill drawer and drawee are the same person (b), or where the drawee is a fictitious person or a person not having capacity to contract (c), the holder (d) may treat the instrument at his option, either as a bill of exchange or as a promissory note (e).

(a.) A bill drawn payable to the drawee is valid, although he does not act in two different capacities-e.g., a cheque in favour of the banker upon whom it is drawn. A bill payable

to the drawee may be negotiated by him, either before or
after acceptance, but not where the acceptor is or becomes the
holder of it at or after maturity in his own right, vide § 61.

(b.) In Scotland where two or more persons carry on dis-
tinct businesses under different firms, a bill drawn upon one
firm by the other is not a bill, the drawer and drawee of which
are the same, II. Bell's Com. 515, and Creditors of P. & F.
Forrester v. Sir W. Forbes & Co., 5th Feb. 1798, reported
there; but where the same individuals carry on the same
business under different firms, the companies are held to be
identical, ibid.; and where the drawer of a bill carries on
business under a firm of which he is the sole partner, a
bill drawn by him in his own name upon himself under the
name of his firm, the drawer and drawee are the same, II.
Bell's Com. 514, and Nairn v. Sir W. Forbes & Co., 25th
Nov. 1795, reported there.

(c.) Vide § 22.

(d.) Vide § 2.

(e.) Where the drawee is a fictitious person, or a person not having capacity to contract, presentment for acceptance is excused, vide § 41 (2 a), and where he is a fictitious person, presentment for payment is dispensed with, vide § 46 (2 b) and notice of dishonour is dispensed with, where the drawer and drawee are the same, and also where the drawee is a fictitious person, or a person not having capacity to contract, vide § 50 (2 c). By § 89 (3) the provisions relating to presentment for acceptance and acceptance are declared not to apply to notes, and in the case of a foreign note, protest thereof is not necessary if it is dishonoured, vide § 89 (4).

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6. (1.) The drawee must be named (a) or other- Address to wise indicated in a bill with reasonable certainty (b).

(2.) A bill may be addressed to two or more drawees whether they are partners or not (c), but an order addressed to two drawees in the alternative, or

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drawee.

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to two or more drawees in succession is not a bill of exchange (d).

(a.) Where the drawee is named but not described, the holder will be entitled to prove that the bill was presented to the person intended as drawee, although there may be several persons of the same name as the drawee; but if the drawee be neither named nor indicated, acceptance will not supply the want of the name of the drawee. The case of Grierson v. Earl of Sutherland, 28th June, 1727, Mor. 1447, is thus no longer authoritative, but where a bill wants the name of a drawee, the person in possession of it has a primâ facie authority to fill in the name of any person, vide § 20.

(b.) If the drawee is not named, he must be indicated with reasonable certainty-e.g., "the Secretary of the A. B. Co., Edinburgh," or "the Accountant of the — Department,

London," but an address to "the Executry Estate of C. D." is not valid because the drawee must be a person, vide § 3 (1).

(c.) It is not necessary that the drawees be connected in any way.

(d.) Although a bill cannot be addressed to two drawees alternatively, or to two or more in succession, it is competent for the drawer to insert the name of a referee in case of need, ride § 15, but it must be clearly stated that he is merely a referee.

Certainty required as to payee.

7. (1.) Where a bill is not payable to bearer, the payee must be named or otherwise indicated therein with reasonable certainty (a).

(2.) A bill may be made payable to two or more payees jointly (b), or it may be made payable in the alternative to one or two, or one or some of several payees (c). A bill may also be made payable to the holder of an office for the time being (d).

(3.) Where the payee is a fictitious or non-existing person the bill may be treated as payable to bearer (e).

(a.) This section defines what is meant by a specified person
in § 3 (1). It is not necessary that any description be added
to the name of the payee, nor that his Christian name be
given. The want of the Christian name or of a description
is supplied by possession of the bill, Erskine iii. 2, 26. If
the payee
is not named, he must be indicated with reasonable
certainty. Thus in a bill drawn payable "to my order," the
signature of the drawer explains these words. The indica-
tion must be in the bill itself, and not in a separate writing.
A bill, for example, payable "to the person named in my
letter of advice" is not a bill. Where the name of the payee

is not stated, the person in possession of the bill has a primâ
facie authority to fill in the name of any person he thinks fit,
vide § 20, but if there be no blank in which a name can be
filled in, the writing is not a bill. Thus in Macdonald v.
Shand, 19th July, 1872, 10 M. 984, the writing ran, “I
promise to pay on demand £100, value received," signed
A. B., it was held that it was not a promissory note, as it
wanted the name of a payee, and had no blank for a payee's
name, and was struck at by the Act of 1696, c. 25. If, how-
ever the payee can be ascertained from the bill or note,
though not in terms mentioned as payee, the bill or note will
be valid. In M'Cubbin v. Stephen, 9th July, 1856, 18 D.
1824, a writing bearing "Received from A. B. the sum of
£30, payable on demand," signed C. D., was held to contain
a promise to pay to A. B.; see also Green v. Davies, 4 B. and
C. 235.

(b.) A bill payable to two or more payees jointly must be
presented for payment by or on behalf of all of them, and
must be indorsed by or on behalf of all of them. A bill
payable to A. and B. jointly and severally is payable to either
of them. Where a bill is made payable to a majority or
quorum of the payees, it may be negotiated or discharged
either by the whole of them or by the majority or quorum.

(c.) This provision alters the common law, Holmes v.

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