which express the amount of a note or bill are contradictory, the words are taken to be the right amount in the absence of evidence to the contrary, the figures notwithstanding.

"FOR VALUE RECEIVED."

5892. Exaggerated Idea.-An exaggerated idea seems to be prevalent about the importance of the words "for value received;" for though,

5893. Popular Prejudice.-It is judicious to use such words, as a concession to popular prejudice,

5894. No Legal Force.-They have no legal force; and

5895. No Difference.-The omission of them makes no legal difference; for,

5896. Value Presumed.-Whether the words appear or not, value received is presumed, and will not be doubted, unless evidence is adduced to the contrary; while,

5897. Evidence of Fraud.-If there is a good defence (5981-2) on the ground of lack of consideration, the mere words for value received," upon the face of the note or bill, will be of no avail against such defence: the very words themselves are then only additional evidence that the note or bill is not genuine.

DUTY OF HOLDER.

5898. On Demand.-When a note is made "on demand," the holder or his agent must find the debtor, and make a formal demand for the money, or otherwise use reasonable diligence to find the debtor; after which,

5899. Payable Immediately. A promissory note made "on demand," is payable immediately, and can be sued upon forthwith or any time within six years (6613), at the option of the holder, without regard to any days of grace (5992); but,

5900. Original Holder. The original holder of a note "on demand," may hold it as long as he pleases, not exceeding six years (6613), without impairing his security; on the contrary,

5901. Subsequent Holder.-A second or subsequent holder of a note "on demand," must present it within reasonable time, say seven days after receiving it, otherwise his claim becomes extinguished.

DEFERRED PAYMENTS.

5902. Definite Period.-A promissory note or bill may defer payment for any stated time, which may be effected by writing "three days after date," or "three months," or "three years," or any other time, as may be agreed, instead of "on demand” (5889); and

5903. Indefinite Period.-To a certain extent, the payment on a promissory note may be deferred for an indefinite time, no matter how remote; thus,

5904. Pending an Event.—A promissory note may be effectually made payable "six weeks after the death of my father," or "when my brother James comes of age or dies."

5905. Certain Event. Within one month after Her Majesty's ship Positive shall be paid off," is a good term, because the payment by the Government would be held to be certain; but,

5906. Uncertain Event.-"Three days after I receive my legacy" would be void for lack of certainty.

BY INSTALMENTS.

5907. At Stated Intervals.—A note of hand may be made payable by instalments of so much per week, or per month, or per quarter, as may be arranged; and

5908. Days of Grace.-The maker of a note of hand (to be paid by instalments) is entitled to usual days' grace (5992) upon each instalment separately.

5909. Binding Condition.-It is customary for a note of hand payable by instalments to contain a proviso, that on failure of payment of any one instalment the whole debt is to become payable, and such condition is binding; but,

5910. Without Proviso.—If a note of hand payable by instalments contains no proviso to the contrary, each instalment merely rests upon its own merits without regard to the remainder.

JOINT AND SEVERAL NOTES.

5911. Variable Signification.—A note by two or more makers may be either joint only or joint and several.

5912. We Promise."-A note signed by more than one person, and beginning "We promise," is a joint note only.

5913. "I Promise," by Two or More.-A note beginning I promise," but signed by more than one person, is several as well as joint.

5914. "I Promise" by a Firm.-A note on behalf of co-partners, commencing merely "I promise," but signed by one person on behalf of the firm, is the joint note of all and the several note of him who signs.

5915. Necessary Discrimination.-In every case of a joint note, it is very desirable that it should commence "We jointly promise," or "We severally promise," or "We jointly and severally promise," in accordance with the exact intentions of the parties.

TITLE TO PAYMENT.

5916. Original Holders.-When a promissory note or bill is made payable simply to the party to whom it is given, no one else can demand or sue upon it, except as agent of the original party; but,

5917. Worthless for Transfer.-A note of hand or bill which does not include the words "to order," is worthless to any one but the original holder; but,

5918. "Or Order" Transferable.-If, as is almost universal, a promissory note or bill is made payable to the original creditor "or order," the original creditor, by simply writing his name at the back, may "endorse" or transfer it to any third party; therefore,

5919. Subsequent Holder.-The subsequent holder of a promissory note or bill which is made "to order," and properly endorsed by the original holder, may demand or sue upon it just as if he were the original holder; thus,

5920. Limited Application.—A promissory note, not to order, can never be used or pleaded as anything else than a promissory note, in the narrowest acceptation of the term; but,

5921. Extended Application.-As soon as a promissory note "to order," is endorsed by the original holder, it acquires all the force and consequence of a bill of exchange.

BILLS OF EXCHANGE.

DEFINITION.

5922. Order for Payment.-A bill of exchange is an order by A upon B to pay C a sum of money.

BANK POST BILLS.

5923. One Bank upon Another. When a bill of exchange is made by one banker upon another it is called a "bank post bill." 5924. Compounded Stamp Duty.-It is customary for banks to pay a round sum per annum to the Stamp Office in lieu of stamps upon their post bills, which is called compounding: hence, they seldom bear a stamp; but,

5925. All ordinary bills of exchange, to be available, must be duly stamped (5885).

ON DEMAND, OR AT SIGHT.

5926. Simple Form.-The simplest form of a bill of exchange is as follows:

£200 os. od.

Birmingham, December 21, 1870.

On Demand [or at Sight], pay to Mr. John Walker, or order (5916), Two Hundred Pounds, for value received (5892).

To Mr. Andrew North,

Broker, Liverpool.

WILLIAM SOUTH.

5927. When Payable.-When a bill is drawn " on demand," it is payable on presentment, but if "at sight," it is payable three days after presentment for sight (5993) to the person upon whom it is drawn, at his residence or usual place of business, at the option of the holder, or otherwise at the place where it is expressly addressed; but,

DEFINITE PERIOD.

5928. It is customary for inland bills to be drawn for a definite period, in which case the period is written instead of the words “at sight" (5926); thus,

AFTER DATE.

5929. Bills for stated periods are commonly for the stated period "after date"; so that,

5930. Exact Words.-An inland bill usually commences Two months after date, pay to," &c. (5926).

5931. Any Period.-A bill may be effectually drawn for any number of days, weeks, months, or years "after date," not exceeding six years (6613).

AFTER SIGHT.

5932. A bill may be effectually made payable "seven days after sight," or any other number of days which may be determined; and 5933. Presentment for Sight. The holder of a bill made payable certain days after sight, must present it first of all for sight, and a second time at the subsequent expiration of the days named, adding the days of grace (5992).

FOREIGN BILLS.

5934. After Sight.-Foreign bills are most commonly drawn "after sight" (5932), and are hence subject to the same rules as those for inland bills drawn-in the like terms; but,

5935. Usances.-In some cases foreign bills are drawn at "two [or more] usances and in that case a usance is governed by the custom of the country where the bill is drawn.

SETS OF BILLS.

5936. Risk of Loss.-When bills are drawn in one country upon another, it is customary to provide against the risk of loss in transit by making a set; hence,

5937. Form. The form most convenient for a foreign bill of exchange is as follows:

£500.

Calcutta, April 1st, 1869.

At sight pay this my FIRST (5939) bill of exchange to Messrs. or order, Five Hundred Pounds value received [as per advice]. To Mr. Moses David,

Lombard Street, London.

JOHN FAITHFUL.

5938. Triplicate.-A set of bills usually consists of three in triplicate; and

5939. Respective Distinctions.-When three bills are drawn they are made respectively [first], [second], and [third]; and

5940. One Honoured Others Void.-As soon as either of them has been honoured the others become void.

5941. Motive for Sets.—The advantage of a set of a bill is obtained by transmitting each one by a different ship or route, so that if one or more should be lost, by wreck or other casualty, the chances are that the third, at any rate, will survive and become available.

5942. Option of Terms.-A bill drawn in a set may be either "at sight," or at "seven days," or any other period after sight," or

"after date."

"

DRAWER ALONE RESPONSIBLE.

5943. An ordinary bill of exchange, without an "acceptance," is, in the first instance, upon the sole responsibility of the drawer; but,

ENDORSEMENT.

5944. Endorser Responsible.-If any person or firm endorse an ordinary bill of exchange, which lacks an acceptance, though they can recover from the drawer, they are liable to any subsequent holder for value; for,

BILLS FOR ACCEPTANCE.

5945. Not Essential.-An acceptance is not essential to a bill of exchange, if any one can be found to take it upon the sole credit of the drawer; notwithstanding,

5946. Large Proportion.-A large proportion of bills of exchange