BILLS OF EXCHANGE . [ 9 OF 1885. ] 741
( 6. ) In the case of a bill payable to drawer's order, the
then capacity of the drawer to indorse, but not the
genuineness or validity of his indorsement;
( c. ) In the case of a bill payable to the order of a third
person, the existence of the payee and his then
capacity to indorse, but not the genuineness or
validity of his indorsement.
55. ( 1. ) The drawer of a bill by drawing it-
( a. ) Engages that on due presentment it shall be accepted dra
Liability
wer orof
.
and paid according to its tenor, and that if it be indorser.
.
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 ;
( 6. ) Is precluded frora denying to a holder in due course
the existence of the payee and his then capacity to
indorse.
( 2. ) The indorser of aa 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 dis
honour be duly taken ;
( 6. ) 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.
56. Where a person signs a bill otherwise than as drawer or Strangerbill
signingas
acceptor, he thereby incurs the liabilities of an indorser to a indor
liable
holder in due course . ser.
57. Where a bill is dishonoured, the measure of damages, Measure of
damages
which shall be deemed to be liquidated damages, shall be as against
follows : parties to
dishonoured
( 1. ) The holder may recover from any party liable on bill.
the bill , and the drawer who has been compelled to
pay the bill may recover from the acceptor, and an
indorser who has been compelled to pay the bill
may recover from the acceptor or from the drawer,
or from a prior indorser