780

Stranger
signing bill
liable as
indorser.

Measure of
damages
against
parties to
dishonoured
bill.

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

indorser who is compelled to pay it, provided that the
requisite proceedings on dishonour be duly taken;

(8) is precluded from denying to a holder in due
course the existence of the payee and his then capacity
to indorse.

(2) The indorser of a bill by indorsing it—

(2) engages that on due presentment it shall be
accepted and paid according to its tenor, and that if
it be dishonoured he will compensate the holder or a
subsequent indorser who is compelled to pay it, pro-
vided that the requisite proceedings on dishonour be
duly taken;

(b) is precluded from denying to a holder in due
course the genuineness and regularity in all respects
of the drawer’s signature and all previous indorsements ;

(c) is precluded from denying to his immediate or a
subsequent indorsee that the bill was at the time of his
indorsement a valid and subsisting bill, and that he
had then a good title thereto.

56. Where a person signs a bill otherwise than as drawer
or acceptor, he thereby incurs the liabilities of an indorser
to a holder in due course.

57. Where a bill is dishonoured, the measure of damages,
which shall be deemed to be liquidated damages, shall be as
follows—

(a) the holder may recover from any party liable on
the bill, and the drawer who has been compelled to pay
the bill may recover from the acceptor, and an indorser
who has been compelled to pay the bill may recover
from the acceptor or from the drawer, or from a prior
indorser—

(i) the amount of the bill;

(ii) interest thereon from the time of present-
ment for payment, if the bill is payable on demand,
and from the maturity of the bill in any other
case ;

(iii) the expenses of noting, or when protest is
necessary, and the protest has been extended, the
expenses of protest ;