the-ordinances-of-the-legislative-counci-1890v4 — Page 43

1860 ORDINANCE No. 9 OF 1885 .


Bills of Exchange.

Procuration
25. A signature by procuration operates as notice that the agent
signatures.
has but a limited authority to sign , and the principal is only bound by
such signature if the agent in so signing was acting within the actual
limits of his authority.

Person sig
26. ( 1. ) Where a person signs a bill as drawer, indorser, or acceptor,
ning as agent
or in repre and adds words to his signature , indicating that he signs for or on behalf
sentative
capacity. of a principal, or in a representative character, 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 signature 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 instrument shall be adopted.


The consideration for a bill.


Value and 27. ( 1. ) Valuable consideration for a bill may be constituted by, —
holder for
value.
(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.


Accommoda 28. ( 1. ) An accommodation party to a bill is a person who has
tion bill or
party. 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.