Bills Of Exchange

Bills of Exchange

DAMAGES ON BILLS OF EXCHANGE in the Past

Important Note: this is an extension/continuation on the entry on DAMAGES ON BILLS OF EXCHANGE, contracts in this legal reference. When on a person in a foreign country, damages (see more about this popular legal topic in the U.S. encyclopedia) are given at the rate of ten per cent. per ann. from the date of the bill until paid, but not more than eighteen months interest to be collected. 2 Litt. 101.

Developments

Louisiana (see more about this State laws here). The rate of damages (see more about this popular legal topic in the U.S. encyclopedia) to be allowed and paid upon the usual protest for non-acceptance or for non-payment of bills of exchange, drawn or negotiated within this state in the following cases, is as follows: on all bills of exchange drawn on or payable in foreign countries, ten dollars upon the hundred upon the main sum specified in such bills; on all bills of exchange, drawn on and payable in other states in the United States of America, five dollars upon the hundred upon the main sum specified in such bill. Act of March 7, 1838, s. 1.

Details

By the second section of the same act it is given that such damages (see more about this popular legal topic in the U.S. encyclopedia) must be instead of interest, charge of protest and all other charges, incurred earlier to the time of giving notice of non-acceptance or non-payment; but the main and damages (see more about this popular legal topic in the U.S. encyclopedia) must bear interest afterwards.

Other Aspects

By section 3, it is enacted, that if the contents of such bill be expressed in the money of account of the United States of America, the amount of the main and of the damages (see more about this popular legal topic in the U.S. encyclopedia) here allowed for the non-acceptance or non-payment must be ascertained and decided, without any reference to the rate of exchange existing between this state and the place on which such bill must have been drawn, at the time of the payment, on notice of non-acceptance or non- payment.

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Maine (see more about this State laws here). 1. When drawn payable in the United States of America. The damages (see more about this popular legal topic in the U.S. encyclopedia) as well as the interest are as follows: if for one hundred dollars or more and drawn, accepted or endorsed in the state, at a place, seventy-five miles distant from the place where drawn, one per cent.; if, for any sum drawn, accepted and endorsed in this state and payable in New Hampshire (see more about this State laws here) , Vermont (see more about this State laws here) , Connecticut (see more about this State laws here) , Rhode Island (see more about this State laws here) or New York (see more about this State laws here) , three per cent; if payable in New Jersey (see more about this State laws here) , Pennsylvania (see more about this State laws here) , Delaware (see more about this State laws here) , Maryland (see more about this State laws here) , Virginia (see more about this State laws here) , South Carolina (see more about this State laws here) , Georgia (see more about this State laws here) or the District of Columbia, six per cent.; if payable in any other state, nine per cent. Rev. St. tit. 10 c. 115, 110, 111.

Other Issues

Out of the United States of America, no statutory provision. It is the usage to allow the holder of the bill the money for which it was drawn, reduced to the currency of the state, at par and also the charges of protest with American interest upon those sums from the time when the bill should have been paid and the further sum of one-tenth of the money for which the bill was drawn, with interest upon it from the time payment of the dishonored bill was demanded of the drawer. But nothing has been allowed for re-exchange, whether it is below or above par. Per Parsons, Ch. J. 6 Mass. 157, 161 see 6 Mass. 162.

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Maryland (see more about this State laws here). 1. No damages (see more about this popular legal topic in the U.S. encyclopedia) are allowed when the bill is drawn in the state on another person in Maryland (see more about this State laws here).

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When it is drawn on any “person, company or society or corporation in any other of the United States of America,” eight per cent. damages (see more about this popular legal topic in the U.S. encyclopedia) on the amount of the bill are allowed and an amount to buy another bill, at the current exchange and interest and losses of protest.

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If the bill be drawn on a “foreign country,” fifteen per cent. damages are allowed and the expense of purchasing a new bill as above, besides interest and costs of protest. See Act of 1785, c. 88.

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Michigan (see more about this State laws here). 1. When a bill is drawn in the state on a person in the state, no damages are allowed. When drawn or endorsed within the state and payable out of it, within the United States of America, the rule is as follows: as well as the contents of the bill, with interest and costs, if payable within the states of Wisconsin (see more about this State laws here) , Illinois (see more about this State laws here) , Indiana (see more about this State laws here) , Ohio (see more about this State laws here) and New York (see more about this State laws here) , three per cent. on the contents of the bill if payable within the states of Missouri (see more about this State laws here) , Kentucky (see more about this State laws here) , Maine (see more about this State laws here) , New Hampshire (see more about this State laws here) , Vermont (see more about this State laws here) , Massachusetts (see more about this State laws here) , Rhode Island (see more about this State laws here) , Connecticut (see more about this State laws here) , New Jersey (see more about this State laws here) , Pennsylvania (see more about this State laws here) , Delaware (see more about this State laws here) , Maryland (see more about this State laws here) , Virginia (see more about this State laws here) or the District of Columbia, five per centum; if payable elsewhere in the United States of America, out of Michigan (see more about this State laws here) , ten per cent. Rev. St. 156, S. 10. When the bill is drawn within this state and payable out of the United States of America, the party liable must pay the same at the current rate of exchange at the time of demand of payment and damages at the rate of five per cent. on the contents tof this, together with interest on the said contents, which must be computed, from the date of the protest and are in full of all damages and charges and expenses. Rev. Stat. 156, s. 9. Mississippi. 1. When drawn on a person in the state, five per cent. damages are allowed. How. & Hutch. 376, ch. 35, s. 20, L. 1827; How. Rep. 3. 195. [1]

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Notes and References

1. Partialy, this information about bills of exchange is based on the Bouvier?s Law Dictionary, 1848 edition. There is a list of terms of the Bouvier?s Law Dictionary, including bills of exchange.

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Bills of Exchange

In the Past

Important Note: this is an extension/continuation on the entry on BILL OF EXCHANGE, contracts in this legal reference. Foreign bills of exchange consist, generally, of several parts; a party who has engaged to deliver a foreign bill, is bound to deliver as many parts as may be asked. 2 Pardessus, Cours de Droit Commercial. n. 342. The several parts of a bill of exchange are called a set; each part should contain a condition that it must be paid, given the others stay unpaid. Id. The whole set make but one bill.

Developments

The bill ought to specify to whom it is to be paid. 2 Pardessus, Cours de Droit Commercial. n. 338; 1 H. Bl. 608; Russ. & Ry. C. C. 195. When the name of the payee is in blank and the bill has been negotiated by indorsement, the holder may fill the blank with his own name. 2 M. & S. 90; 4 Camp. 97. It may, however, be drawn payable to bearer and then it is assignable by delivery. 3 Burr. 1526.

Details

To make a bill negotiable, it must be made payable to order or bearer or there must be other operative and equivlent words of transfer. Beawes's Lex Mercatoria, pl. 3; Selw. N. P. 303, n. 16; Salk. 133. if, however, it is not intended to make the bill negotiable, these words need not be inserted and the instrument will, however, be valid as a bill of exchange. 6 T. R. 123; 6 Taunt. 328; Russ. & Ry. C. C. 300; 3 Caines' R. 137; 9 John. It. 217. In France (see more about this legal system) , a bill must be made payable to order. Code de Com. art. 110; 2 Pardessus, Cours de Droit Commercial. n. 339.

Other Aspects

The sum for which the bill is drawn, must be clearly expressed in the body of it, in writing at length. The sum must be fixed and certain and not contingent. 2 Stark. R. 375. And it may be in the money of any country. Payment of part of the bill, the residue being unpaid, cannot be indorsed. The, contract is indivisible and the acceptor would tnow be compelled to make two payments instead of one. But when part of a bill has been paid the residue may be assigned, since then it becomes a contract for the residue only. 12 Mod. 213; 1 Salk. 65; Ld. Ray. 360.

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It is usual to insert the words, value received, but it is. implied that every bill and indorsement has been made for value received, as much as if it had been expressed in totidem verbis. 3 M. & S. 352; Bayl. 40, n. 83.

Other Issues

It is usual, when the drawer of the bill is debtor to the drawee, to insert in the bill these words: ” and put it to my account but when the drawee or the person to whom it is directed, is debtor to the drawer, then he inserts these words: “and put it to your account;” and, sometimes, where a third person is debtor to the drawee, it may be expressed therefore: “and put it to the account of A B;” Marius, 27;. C, om. Dig. Merchant, F 5; R. T. Hardw. 1, 2, 3; but it is altogether unnecessary to insert any of these words. 1 B. & C. 398; S. C. 8 E. C. L. R. 108.

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When the drawer is desirous to inform the drawee that he has drawn a bill, he inserts in it the words, “as per advice;” but when he wishes the bill paid without any advice from him, he writes, “without further advice.” In the former case the drawee is not authorized to pay the bill till he has received the advice; in the latter he may pay before he has received advice.

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The drawee must either subscribe the bill, or, it seems, his name may be simply inserted in the body of the instrument. Beawes's Lex Mercatoria, pl. 3; Ld. Raym. 1376 1 Stra. 609.

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The bill being a letter of ask from the maker to a third person, should be addressed to that person by the Christian name and surname or by the full style of their firm. 2 Pardessus, Cours de Droit Commercial. n. 335 Beawes's Lex Mercatoria, pl. 3; Chit. Bills, 186, 7.

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The place of payment should be stated in the bill. As a matter of precaution, the drawer of a foreign bin may, in order to prevent expenses, need the holder to apply to a third person, named in the bill for that purpose, when the drawee refuses to accept the bill. This requisition is usually in these words, placed in a corner, under the drawee's address: ” Au besoin chez Messrs. – at -,” in other words, ((if need apply to Messrs. at -. ” The drawer may also add a ask or direction, that in case the bill should not be honored by the drawee, it must be returned without protest or without expense, by subscribing the words, ” retour sans protet,” or ” sans frais;” in. this case the omission of the holder to protest, having been induced by the drawer, he and perhaps the indorsers, cannot resist the payment on that account and therefore, the expense is avoided. Chit. Bills, 188. The drawer may also limit the amount of damages, by making a memorandum on the bill, that they must be a definite sum; as, for example: “if non-acceptance or uon-payment, re-exchange and expenses not to, exceed dollars.” Id. [1]

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Notes and References

1. Partialy, this information about bills of exchange is based on the Bouvier's Law Dictionary, 1848 edition. There is a list of terms of the Bouvier's Law Dictionary, including bills of exchange.

See Also