the-ordinances-of-the-legislative-counci-1890v2 — Page 138

723 [ 9 OF 1885. ] BILLS OF EXCHANGE .

against whom it is sought to retain or enforce payment of
the bill is precluded from setting up the forgery or want of
authority.
Provided that nothing in this section shall affect the ratifica
tion of an unauthorised signature not amounting to a forgery .
Procuration
signatures.
25. A signature by procuration operates as notice that the
agent has but a limited authority to sign, and the principal is
only bound by such signature it the agent in so signing was
acting within the actual limits of his authority.
l'erson sig .
ning as agent
26. ( 1. ) Where a person signs a bill as drawer, indorser, or
or in repre . acceptor, and adds words to his signature, indicating that he
sentative
capacity. signs for or on behalf of аa principal, or in a representative cha
racter, he is not personally liable thereon ; but the mere addition
to his signature of words describing him as an agent, or as filling
a representative character, does not exempt him from personal
liability.
( 2.) In determining whether a signatore on a bill is that of
the principal or that of the agent by whose hand it is written,
the construction most favourable to the validity of the instru
ment shall be adopted .
The consideration for a bill.
Value and 27. ( 1. ) Valuable consideration for аa bill may be constituted
holder for
value . by, -
( a . ) Any consideration sufficient to support a simple con
tract ;
( 6. ) An antecedent debt or liability.Such a debt or lia
bility is deemed valuable consideration whether the
bill is payable on demand or at a future time.
( 2. ) Where value las at any time been given for a bill the
holder is deemed to be a holder for value as regards the acceptor
а


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
froin contract or by implication of law , he is deemed to be al
holder for value to the extent of the sum for which he has a
lien .
Accommoda
tion bill or
28. ( 1.) An accommodation party to a bill is a person who
party . 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 aa holder
for value ; and it is immaterial whether, when such holder took
the bill , he knew such party to be an accommodation party
Ol' not .