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BILL OF EXCHANGE

contracts. A bill of exchange is defined to be an open letter of request from, and order by, one person on another, to pay a sum of money therein mentioned to a third person, on demand, or at a future time therein specified. 2. The subject will be considered with reference, 1 . to the parties to a bill; 2. the form; 3. their different kinds 4. the indorsement and transfer; 5. the acceptance 6. the protest. 3. Section 1. The parties to a bill of exchange are the drawer, or he who makes the order; the drawee, or the person to whom it is addressed; the acceptor, or he who accepts -the bill; the payee, or the party to whom, or in whose favor the bill is made. The indorser, is he who writes his name on the back of a bill; the indorsee, is one to whom a bill is transferred by indorsement; and the holder, is in general any one of the parties who is in possession of the bill, and entitled to receive the money therein mentioned. 4. Some of the parties are sometimes fictitious persons. When a bill is made payable to a fictitious person, and indorsed in the name of the fictitious payee, it is in effect a bill to bearer, and a bona fide holder, ignorant of that fact, may recover on it, against all prior parties, who were privy to the transaction. In a case where the drawer and payee were fictitious persons, the acceptor was held liable to a bona fide holder. 5. Section 2. The form of the bill. 1. The general requisites of a bill of exchange, are, 1st. that it be in writing. 6.2d. That it be for the payment of money, and not for the payment of merchandise. 7. 3d. That the money be payable at all events, not depending on any contingency, either with regard to the fund out of which payment is to be made, or the parties by or to whom payment is to be made.

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