the-ordinances-of-the-legislative-counci-1890v4 — Page 45

1862 ORDINANCE No. 9 or 1885 .


Bills of Exchange.


(4. ) Where the holder of a bill payable to his order transfers it for
value without indorsing it , the transfer gives the transferee such title as
the transferor had in the bill , and the transferee in addition acquires the
right to have the indorsement of the transferor.

(5. ) Where any person is under obligation to indorse a bill in a
representative capacity, he may indorse the bill in such terms as to

negative personal liability .

Requisites of 32. An indorsement in order to operate as a negotiation must
a valid
indorsement . comply with the following conditions , namely : ---

( 1. ) It must be written on the bill itself and be signed by the indorser.
The simple signature of the indorser on the bill, without additional words ,
is sufficient.

An indorsement written on an allonge, or an a " copy " of a bill
issued or negotiated in a country where " copies " are recognised , is
deemed to be written on the bill itself.

(2. ) It must be an indorsement of the entire bill . A partial
indorsement, that is to say , an indorsement which purports to transfer to
the indorsee a part only of the amount payable, or which purports to
transfer the bill to two or more indorsees severally , does not operate as
a negotiation of the bill.


(3. ) Where a bill is payable to the order of two or more payees or
indorsees who are not partners all must indorse, unless the one indorsing
has authority to indorse for the others.

( 4. ) Where , in a bill payable to order, the payee or indorsee is
wrongly designated , or his name is mis- spelt , he may indorse the bill as
therein described , adding, if he think fit, his proper signature.

(5. ) Where there are two or more indorsements on a bill , each
indorsement is deemed to have been made in the order in which it appears

on the bill, until the contrary is proved.

(6. ) An indorsement may be made in blank or special . It may also

contain terms making it restrictive.

Conditional 33. Where a bill purports to be indorsed conditionally the condition
indorsement.
may be disregarded by the payer, and payment to the indorsee is valid
whether the condition has been fulfilled or not.