2. A bill may be addressed to two or more drawees whether they are partners or not, but an order addressed to two drawees in the alternative or to two or more drawees in succession is not a bill of exchange 150.* 1. An instrument in the form of a note payable to maker's order is not a note within the meaning of this section unless and until it is indorsed by the maker 2. A note is not invalid by reason only that it contains also a pledge of collateral security with authority to sell or dispose thereof 3. A note which is, or on the face of it purports to be, both made and payable within the British Ilands is an inland note. Any other note is a foreign note 151. The maker of a promissory note by making it1. Engages that he will pay it according to its tenor ; 2. Is precluded from denying to a holder in due course the existence of the payee and his then capacity to indorse 152. 1. Subject to the provisions in this part and, except as by this section provided, the provisions of this Act relating to bills of exchange apply, with the necessary modifications, to promissory notes 2. In applying those provisions the maker of a note shall be deemed to correspond with the acceptor of a bill, and the first indorser of a note shall be deemed to correspond with the drawer of an accepted bill payable to drawer's order 3. The following provisions as to bills do not apply to notes; namely, provisions relating to (a) Presentment for acceptance; (c) Acceptance suprà protest; (d) Bills in a set 4. Where a foreign note is dishonoured, protest thereof is unnecessary 153. 1. Every contract on a bill, whether it be the drawer's, the acceptor's, or an indorser's, is incomplete and revocable, until delivery of the instrument in order to give effect thereto Provided that where an acceptance is written on a bill, and the drawee gives notice to or according to the directions of the person entitled to the bill that he has accepted it, the acceptance then becomes complete and irrevocable 2. As between immediate parties, and as regards a remote party other than a holder in due course, the delivery (a) In order to be effectual must be made either by or under the authority of the party drawing, accepting, or indorsing, as the case may be: (b) May be shown to have been conditional or for a special purpose only, and not for the purpose of transferring the property in the bill But if the bill be in the hands of a holder in due course a valid delivery of the bill by all parties prior to him so as to make them liable to him is conclusively presumed 3. Where a bill is no longer in the possession of a party who has signed it as drawer, acceptor, or indorser, a valid and unconditional delivery by him is presumed until the contrary is proved 154.* A promissory note is inchoate and incomplete until delivery thereof to the payee or bearer 155. 1. A promissory note may be made by two or more makers, and they may be liable thereon jointly, or jointly and severally according to its tenor 2. Where a note runs "I promise to pay " and is signed by two or more persons it is deemed to be their joint and several note 156.* 1. Where a note payable on demand has been indorsed it must be presented for payment within a reasonable time of the indorsement. If it be not so presented the indorser is discharged 2. In determining what is a reasonable time, regard shall be had to the nature of the instrument, the usage of trade, and the facts of the particular case 3. Where a note payable on demand is negotiated, it is not deemed to be overdue, for the purpose of affecting the holder with defects of title of which he had no notice, by reason that it appears that a reasonable time for presenting it for payment has elapsed since its issue Liability of Drawer or Indorser 157. 1. The drawer of a bill by drawing it (a) Engages that on due presentment it shall be accepted and paid according to its tenor, and that if it be dishonoured he will compensate the holder or any indorser who is compelled to pay it, provided that the requisite proceedings on dishonour be duly taken; (b) Is precluded from denying to a holder in due course the existence of the payee and his then capacity to indorse 2. The indorser of a bill by indorsing it— (a) Engages that on due presentment it shall be accepted and paid according to its tenor, and that if it be dishonoured he will compensate the holder or a subsequent indorser who is compelled to pay it, provided that the requisite proceedings on dishonour be duly taken; (b) Is precluded from denying to a holder in due course the genuineness and regularity in all respects of the drawer's signature and all previous indorsements; (c) Is precluded from denying to his immediate or a subsequent indorsee that the bill was at the time of his indorsement a valid and subsisting bill, and that he had then a good title thereto 158.* Where a person signs a bill otherwise than as drawer or acceptor, he thereby incurs the liabilities of an indorser to a holder in due course Rights of the Holder 159.* The rights and powers of the holder of a bill are as follows -: 1. He may sue on the bill in his own name : 2. Where he is a holder in due course, he holds the bill free from any defect of title of prior parties, as well as from mere personal defences available to prior parties among themselves, and may enforce payment against all parties liable on the bill: 3. Where his title is defective (a) if he negotiates the bill to a holder in due course, that holder obtains a good and complete title to the bill, and (b) if he obtains payment of the bill the person who pays him in due course gets a valid discharge for the bill Funds in Hands of Drawee 160. 1. A bill, of itself, does not operate as an assignment of funds in the hands of the drawee available for the payment thereof, and the drawee of a bill who does not accept as required by this Act is not liable on the instrument. This sub-section shall not extend to Scotland 2. In Scotland, where the drawee of a bill has in his hands funds available for the payment thereof, the bill operates as an assignment of the sum for which it is drawn in favour of the holder, from the time when the bill is presented to the drawee On the Consideration 161. A Consideration is any loss or detriment to the plaintiff sustained at the request or for the sake of the defendant: or any benefit to the defendant moving from the plaintiff 162.* 1. Valuable consideration for a bill may be constituted by (a) Any consideration sufficient to support a simple contract; (b) An antecedent debt or liability. Such a debt or liability is deemed valuable consideration whether the bill is payable on demand or at a future time 2. Where value has at any time been given for a bill the holder is deemed to be a holder for value as regards the acceptor and all parties to the bill who became parties prior to such time 3. Where the holder of a bill has a lien on it, arising either from contract or by implication of law, he is deemed to be a holder for value to the extent of the sum for which he has a lien The debt of a third person is good consideration for which a person may bind himself by bill payable after date Popplewell v. Wilson, 1 Stra., 264. 211. Ridout v. Bristow, 1 C. & J., 231. Coombs v. Ingram, 4 D. & R., Wilders v. Stevens, 15 M. & W., 208. Sowerby v. Butcher, 2 C. & M., 368. Balfour v. The Sea, Fire, and Life Insu. Co., 3 C. B., N. S., 300 163. But not for a bill or note payable on demand, unless taken in substitution for the other debt Forth v. Stanton, 1 Wms., Saunders, p. 210c., note c. Croft v. Beale, 11 C. B., 172 164. Cross acceptances for mutual accommodation are respectively considerations for each other Rolfe v. Caslon, 2 H. Bla., 571. Rose v. Sims, 1 B. & Ad., 521. Buckler v. Buttivant, 3 East., 72. 165. 1. If the bill or note has been given for an illegal consideration, or has been obtained by fraud, or duress, or lost, or stolen, the defendant may call upon the holder to prove the consideration he gave for it 2. But not otherwise Mills v. Barber, 1 M. & W., 425. Percival v. Frampton, 2 C. M. & R., 180. Whitaker v. Edmunds, 1 A. & E., 638. Jacob v. Hurgate, 1 Moo. & Rob., 445. Edmonds v. Groves, 2 M. & W., 642. Smith v. Martin, 9 M. & W., 304. Fearn v. Filica, 7 M. & G., 513. Bingham v. Stanley, 2 Q. B., 117 166. 1. An accommodation party to a bill is a person who has signed a bill as drawer, acceptor, or indorser, without receiving value therefor, and for the purpose of lending his name to some other person 2. An accommodation party is liable on the bill to a holder for value; and it is immaterial whether, when such holder took the bill, he knew such party to be an accommodation party or not 167.* A holder in due course is a holder who has taken a bill, complete and regular on the face of it, under the following conditions, namely— (a) That he became the holder of it before it was overdue, and without notice that it had been previously dishonoured, if such was the fact: (b) That he took the bill in good faith and for value, and |