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fixed by referring to the figures. Where there is a difference between the printed provisions and the written provisions of an instrument, the written provisions prevail.

30. How should an agent sign an instrument?

He should so sign as to bind his principal and not incur personal liability. The name of the principal should be signed. The addition of words describing him as agent without disclosing his principal does not exempt him.

31. What is the effect of a signature by procuration?

This signature indicates that the agent has but a limited authority to sign. If the agent exceeds his authority the principal is not bound.

32. What is the rule regarding the consideration in a negotiable instrument?

It is presumed that every negotiable instrument is founded upon a valuable consideration.

33. To what extent is want of consideration a defense?

It may be a valid defense against the original payee or against any one not a holder in due course, but will not be a defense against a holder in due course.

34. What is the effect of an indorsement by an infant or by a corporation?

The indorsement or assignment by a corporation or by an infant passes the property in the instrument, notwithstanding that from want of capacity the corporation or infant may incur no liability thereon.

The Promissory Note. 35. What is a primissory note?

A promissory note is an unconditional written promise to pay at all events to a person named therein, to order or to bearer, a specified sum of money.

36. What are the original parties to a note?

The maker and the payee. A note may have joint makers or joint payees.

37. What obligation is assumed by the maker of a note? He promises to pay it according to its tenor; the promise is absolute. This promise is made to the payee but it extends to subsequent holders in due course.

Promissory Note.

* 51000



. promise to pay

Cauta dauden

Allang Ny, Septh to the

sodes of Tamuel
Five hundred ten tema
No.2295. Due Cekulieren

Sinise Cerretti



38. What is an individual note?

It is the ordinary promissory note signed by an individual maker.

39. What is a firm note?

It is a note made by a firm. The form is slightly different from the individual note, but the legal effect is the


40. What is a joint note?

A joint note is one signed by two or more makers, each promising to pay the whole of the note. It reads “We jointly promise to pay,” or simply "We promise to pay."

41. What is a joint and several note?

A joint and several note is one signed by two or more makers each promising to pay his share or the whole amount of the note. It reads “We jointly and severally promise to pay” or “We or either of us promise to pay.”

42. If a note reads “I promise to pay," and is signed by two or more makers, what kind of note is it?

It has been held to be a joint and several note. 43. How are notes usually drawn as to time?

Notes may be drawn payable "after date," "on a given date," "on or before a given date," "on demand."

NOTE- In a joint note, in case of nonpayment, all the parties must be sued together, whereas, in a joint and several note, each one may be sued separately.

44. Are notes always negotiable?

If they do not contain the requisites of negotiability, they will be non-negotiable.

45. How are non-negotiable notes written?

They may not contain the usual negotiable words, or these words may be omitted and the word "only” inserted after the payee's name, or the note may be payable in goods, as in the case of chattel notes.

46. What is a chattel note?

It is a note payable in goods of some kind instead of money.

47. Are such notes negotiable?

They are not; they lack at least one requisite as negotiable notes must be payable in money.

48. How are negotiable notes transferred?
By indorsement and delivery, or by mere delivery.

49. What notes or other instruments may be transferred by mere delivery?

Instruments payable to bearer, or instruments where the last or only indorsement is blank.

50. How are non-negotiable notes transferred?
Such notes are transferred by assignment.
51. What form of assignment may be used ?

The payee may annex to the note a writing like this: "For value received, I hereby transfer and assign the annexed note to John Jamieson. Aug. 1, 1901.

A. J. Cass.” 52. What liabilities are incurred by the indorser of a note?

He warrants :

1. That he has a good title to the note and the right to convey such title.

2. That the note is genuine in all respects and that prior parties had capacity to contract.

3. And he engages that on due presentation it shall be paid, and that if it be dishonored and the necessary proceedings be taken, he will pay the amount thereof.

53. To whom is this warranty given?

To the immediate indorsee and to any subsequent holder in due course.

54. When does the time of a note begin?

A note takes effect on delivery. The date expressed on the note is taken as the date of issue and time is usually counted from that date.

55. When do time notes mature?

A note matures at the expiration of the given time. In counting time expressed in days, the first day is omitted and the last day counted.

56. How is time computed ?

When the time is expressed in days, exact days are counted; if in months, calendar months are counted.

The following rule should be noticed :

“A note due in one or more months from date, matures on the corresponding day of the month up to which it is reckoned, if there are so many days in that nionth; but if not so many, it then matures on the last day of the said month.”

Days of grace were abolished in New York state on Jan. I, 1895

57. When a note or other instrument falls due upon Sunday or a holiday, when is it payable according to the law of New York state?

It is payable on the next succeeding secular or business day. When a holiday falls on Sunday, Monday is by statute made the legal holiday. Paper due on either of these days is payable the next succeeding business day.

58. When instruments fall due on Saturday, what is the proper time for presentment?

They are to be presented on the next succeeding business day; but instruments payable on demand may, at the option of the holder, be presented for payment before twelve o'clock noon on Saturday, when that entire day is not a holiday.

59. When a note falls due and no place of payment is specified, what should be done?

Presentment for payment is not necessary to charge the maker; the maker should seek the holder and pay the note. It is generally necessary for the holder to make presentment to hold the indorsers responsible.

60. When the place of payment is specified, what should be done?

The holder should present the note for payment at that place. When the maker is able and willing to pay there at maturity, it constitutes a tender of payment on his part.

61. Should the holder fail to do this, what is the effect?

The maker is not discharged from liability of payment, but upon proving this and paying the money into court, he escapes costs and interest. The indorser (if any) is generally discharged from his liability by such failure.

62. When should a time note be presented for payment?

On the very day it falls due; extraordinary circumstances may permit a later presentment. See No. 114.

63. When should a demand note be presented for payment?

It should be presented in reasonable time to charge an indorser.

64. What is, in law, deemed a reasonable time?

In determining what is a "reasonable” time or an "un-. reasonable” time, regard is to be had to the nature of the instrument, the usage (if any) of trade or business with respect to such instruments and the facts of the particular


65. When a note is dishonored by non-payment, what should the holder do?

He should promptly notify each indorser of such dishonor, or he may have the note protested by a notary public.

66. When do notes bear interest?

They bear interest from date if they contain the words with interest or with use; if they do not contain such

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