The Delta independent., 1913-05-09

was settled.
So when you sign promissory
note, drawn in the familiar form
sixty days after date for value re-
ceiNed, | promise to pay to the order
OF John Doe, the sum OF One Hun
dred Dollars, with interest at six per
cent per annum-remember that it
is negotiable and SO is great deal
like money in that it may be freely
passed from hand to hand by simple
endorsement on the back, and the
man who comes by it honestly has
full rights against the person who
signs it.
In order to possess this quality OF
negotiability-to be able to pass from
one TO another by simple endorse
ment, giving to the person receiving
ii these superior rights-a note must
Pconform to certain legal requirements.
| These are stated in the Negotiable
Instruments Law, uniform act that
has been adopted in similar form by
practically all of the states. In gen
eral the note must be in writing and
signed by the maker. Writing in its
legal sense includes printing, litho-
graphs, etc, and the signature may
be an abbreviation or a mark. Fur
| ther, to be negotiable it must con-
tain and unconditional promise to pay
sum certain in money. There must
be no if about the promise to pay.
'Also it must be to pay money and not
| potatoes or nails. If you want the
vent the negotiating of a note you
may give so that no one may secure
rom it better rights than the carpen-
ter to whom you give it, you may do
so by stating in the note that you
promise TO pay upon condition that
the house is shingled in accordance
with the agreement.
To be negotiable a note must be
pay able on demand. or at a fixed or
determined future time. Naming a
future date for payment. OF course.
fixes the time, So, too. it is regarded
as a fixed time if payment is to be
made at the happening of an event
that is certain TO occur. Sixty days
from date is a determinable future
time. Further, it must be payable TO
order or to bearer, these words of
negotiability being necessary that the
instrument may possess that quality.
So notes are written: pay to the or
der of John Smith" and not just pay
TO John Smith"
7 A note lacking the above require
ments of negotiability may still be a
good contract enforceable between the
original parties, according to its termc.
But if the note is not negotiable and
the man who made it has been swim
died, he may make this defense
against the person to whom he gave
] it.
A person who Intends to bind him
self by the note signs simply his own
name Bue mistakes are made by
agents who do not intend TO bind
themselves, personally, but only their
principles. Do not sign John Jones,
Agent for Samuel Smith," for that
will make John Jones personally Ii
able: but sign Samuel Smith, by
John Jones, Agent" A somewhat diff
ferent rule prevails in the case of pub
lie officers for one acting in pub
1 lie capacity may sign his own name
as officer and bind his principles and
not himself.
The notes of corporations and part
nerships are signed by an officer or
agent of the corporation or member
in the partnership in the name of the
company. A representative or part
ner who is held out to the world as
having authority TO sign notes. may
bind the company. even though he
may have exceeded his authority. So
if you are a partner, be cautious of
the public authority that is given,
really or apparently. to partner who
YOU do not trust absolutely.