Bills of Exchange. [Ch. 31. No. 5.

 

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
*xempt 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.

27. (1) Valuable consideration for a bill may be con-
stituted by
(a) any consideration sufficient to support a simple
contract ;
(6) 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 Jien on it, arising
cither 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.

28. (1) An accommodation party to a bill is a person who
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 a
holder for value; and it is immaterial whether, when such
holder took the bill, he knew such party to be an accommo-
dation party or not.

29. (1) A holder in due course is a holder who has taken
a bill, complete and regular on the face of it, under the
following conditions, namely,—

(a) that he became the holder of it before it was

765

Value and
holder for
value.

Accommoda-
tion bill or
party.

Holder in
due course.