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Full text of "Digest of the mercantile laws of Canada and Newfoundland [microform] : the technical points and main features of both the common and statute laws, together with the various legal and business documents in general use, forming a work of ready-reference for magistrates, conveyancers, professional and business men, land owners, contractors, etc. : lawyers will also find it convenient as a condensed and well-classified collection of most vital legal points for the various provinces"

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UwycrB wai also f.n.l it convenient a. a condensed and wolicla^^Uied collection of 
mo,t vital legal points tor the various Province,. 





TORONTO, 1910 




THE special charaotpr of tliis voliimo and the many thousand copies 
already "old make it dcsirablo that it should remain in the hands of 
its purchasers a trustwortliv lepal piido for many years. 

If {nirchasers will forward by oanl tlieir name and pos' office addrc«» 
to the yuihlislier, wliose name stands on tlie title pa^e of the book, to l)e 
entered in a Ke^rister. they may obtain for a fee of ten ceutj* ea.-h year, about 
the first of .Tnne, after the close of the Dominion Parliament, jrintod sheets 
givini; the new legislation, and whatever <'liangea may have been made affect- 
ing any point in the book. 

This new matter will Im' printed on one side of the sheet only, each 
section numbered to correspond with the section in the book tha' has been 
amended, so that 3iibs<^ribers may cut out tliose jtertaining to their own 
Province and ))aste them in the book at the proper jdace, to be rea I in with 
the amended section. 

Corrections are issued about June each year, and when read;- notice 
will be forwarded to each siil>scril)er who has registered ; and further notice 
will be sent out each .subsequent year to all subscribers who have resjionded 
to or Jicknowledged in some way the receipt of the notice for the preceding 

.•\s tliere arc several fi.riiiiT cilitioiis, please state, wlnn f.irwnrding /our 
name, the date of the book yon have purchasi d. and what years you have 
amendment? for, if any. 

Airents have no financial i-iterest in forwardiiii.' ii.unes for rogi?trnti( n, 
therefore sub'^crilicrs nnist senci their own names if tli'-y desire them to iG 

As each new i-.liti..u cinitaiiis additional niattcr. it hts been found nece*- 
sary to make provision for those additions withont dis'urbing the .•^crliow 
numhcm of former editions, so that the " amendments'" fupjilied from y<'a-; 
to year will (•^)rrespond with the miction in every edition. Tt will, therefore, 
be noticed in tliis edition that the section numbers do not run consecutively, 
but numero\is blanks are left where it is .seen that some later edition might 
contain mailer rc'|iiiriug a new section number in order X*> I've referred to m 
the Index. 

Copyright, Can.ida. 1910, hy WILLIAM HENRY ANGER. 


-T- i,,.: subjeot .routed in ,hi. volun.c is one to which no «;-;^^F;^--,;^^ 

::".,„„ „o,„,i.„„. paper .■u.u.-i j;;"rs;/rjSvt""; ; ,.t 

.„,1 i„er<.„,inf ,1™,».1 ™ Ok- |.a» "f b"— •;» ' P „,^„, i„ 

,noro «,yi.r.ti> an.l critic.l Inowlodp- -f ik"" !■'», 

cviTvilav lif*"- . . ■ f ,i,„ ^,,,1 .ilition. and a 

of 1h. I .iirTN. .1111 ^_ ni,rp«t" ..n mportant>=. 

Toront... MMr.h. l'.M(i. 

W. U. A. 



lUtHtrul Indj ;t B<t.k ,,f H„„t i 



CilATTKI. M(iUn;AOK:s 



CoNTRVCrs ... 



Gl AKVNI\ AM) >i i;i:i\-iiii' 



J u 1 N T STi iC K C( ).M PA .\ 1 Es 
r. \M>!.()UI) AM) TKNANT 

Master axu servant 

MEC^llAXlCS' AM) \V\i;k lARNKKs I. UN ACT 


NEOnriAUI.K r\l'Kk IM;iiMis-m|;\ NuTKS, ACCEPTANCES 



PEllSONAi, PRMl'Kltl V 


PlilNrii'M, AM) AUKNT, luN VKYANCERS. TKLKiil! \p[| ( 







S, ETC. 























In t!ii- volmiu- constitutional ami intprnationa! law will uol bf .ioalt 
with, ncitbtr will innni.'ipal nor s.Ii.h.I law> !)<• tou.'lif.l ■ but the Mnglo aim 
has bwii to proK-nt in (•(.i.<l..n..a form a r.lial.l.' .li^.^t of tb.' in.r.antUe 
laws ■■( CaiiH'la iuii| NVurmndlancl. 
2 Legislative Bodies. . , 

In (iivat Britain, tho liMi„rial Parliaiuent. in.-hi.lint: tlu Ilousr ot t <.m- 
„,nn- aiil the lions., of l.or.k 1„, tlio l)..niinion I lirl.ament, 
inrhi.rm.' tli- lloust- ..f Conmums and Sciatf, an.l a L.-i.-lativr .Wnnbly 
for of thf Province.-. In the ruitcl Stat... Couf^nss, .ucl.i.hnir the 
IIoiwc of Kcprpscntativ.s an.l Senate, an.l the various State Ix'f^iMa.un-. 

Hut iM-si.ies tbene great lejiislati..' bo.lies in ea<-li .'..untrv there are 
variou.s other minor e.>rp.. rat ions ,>..ssessinf: extensiv l.psUitive powers. 
Kvery citv, t..wn, eountv, township an.l ineorporate.l village has power 
.■onferretlupou it by I'arliatu.ul t.. pa.- by-laws wbiel, hav,. tb.' full t..ree 
of Statute Law within their jurisdiction. , ■ ,, i 

In .ui authority is .livid.d b. tween the l)oinmi..u 1 arliauieiit 
;,„d ,b.. L.-islalive As^.^ndilies of ll,.- .litT.-rent. I'n.vinees. lb, l.oRis 
\.-c,nblie> have .lel..pit,-.l to .■.•unty. lown.bip, .■ity, town and seh.M.l cor- 
porations e. rtain lepslativ.. p..wers for tlu- pur,..«es ..f bx^al .elfnoverntnent. 
1,,,-orpnratrd conipanies. Ifxlpes, and various workiiij; under 
Govpruui.nt .hart.r. also hav p.iwvr to pass by-laws an,] .■onst..tut...ns 
or measures ib.t bin.l their nundxrs in all things pertaining to the ass,.-.a- 
tion or eoiupanv as tirinly as they would be by the national b.w-^. 

Therefor... meiulx-rs of such asso.-iations must n.,t forget that th. v ar.. 
reiinired in all matters pertaining t.. them t.. comply with their reguhiiH.ns, 
an.l in ..ase ..f anv supposed wrong they must first exhaust the ma.b.mry 
whi.di thos.. resndations provide for tb.' redress of grievance^ l^'foi-e 
till, case to court f.^r suit. 

3 j^'visions of Law. ,n\ c *„+<> 

The two fm^af divi^ions ..f law .ire •. (^^ Cmmon Law. (2) Statnt* 

T flw i_ 

f?esi,b.. the^e tw- crand divisions of tb.. law ther.' ar.. various other 
divisions u^r.l because of th.' .liffen.ut obj.^t. to which the law applies. a.s 


Ill VI.-,lil!1H OK LAW. 

Civil, C'l'imiiuil, .Mircaiiiilr, Marino, (.'onstilutioual, lntorujil,iunaI, MililJiry, 
Caniiii or lM'.-le>ia>riciil ],aw, etc. 
4 The Common Law. 

Tiie Cuiniium I, aw is what is called the unwritten law. It had its 
origin in the earlv davs ot' liritain. The various racea I'roiu which have 
sprung the Jjritish people, brought with them, when they invaded and aettled 
Ml the country, their resiK-ctive customs and rules of action, which, after 
the variou.s I'rovinces Ixn-anie tiniled under one {roveniiiicnt, caused consid- 
erable confusion for a time, until n ceneral body of law was established for 
the whole kinffdom, and tlius called the common law. Owing to the fact 
thai but few of the early inhabitants were able to read or write, the laws 
were for a long time simply preserved in memory, hence also called the 
nnwrilten law. The term vnwrillen does not now aj)ply in the same sense 
that it did then, l)ecausc every jtrinciple of the common law has ' ^ng since 
found it,s way into jirint througl. the thousands of volumes of reports giving 
the rulings and decisions of the various courts, thus furnisliing prccedcnti 
for guidance in all future cases equal to any written law as to uniformity 
and definitencRs, constituting what is known ns Case Law. 

In its broadest definition " is any rule which will hf enforced by 
the courts." 
6 Statute Law. 

Siatulc Law is sometimes called the \nittcn law, in contradistinction to 
the vn written or Common Law. It is a law that lias been formally written 
out aiul introduced into I'arliament as a Hill, which being passed becomes a 
law f>f the laiul iinder the uavie of Statute Law. Ou; Statute Laws contain 
many contradictions and inconsistencies, hence tl 3 conflicting int rpretatlons 
by the various judges and courts. 

I'robably not one-quarter of our cununercial laws are found in the 
Statutes; but they liave irrown up through long years of custom and usage, 
and from time to time receiving the sanction of the courts, have liecome a 
well-defined body of laws as stated in Section 4. sometimes calinl the Law 
^ferchaiit, and form a part of what is called Case Law. 
8 Uniformity of Laws. 

The laws in (ireat liritain. Canada, the L'nited States and Xewfotm3- 
land are very similar, owing to the fact that Xewfonudlnnd and all ilic States 
of the Union, exce])t Louisiana, and all the Provinces in the l)oniinion, 
except Quebec, adopted the common law of England, thus making it the 
fundamental law of the English-sjieaking world; and it prevails in all cases 
where it has not been abrogated or modified by Statute Law. 

Louisiana and Quelwc adopted the old French law, which is an embodi- 
ment of the Koman law; therefore, people having dealings in (Quebec must 
keep that fact in view. For instance, a promissory note outlaws in QucIkh- 
in five years from maturity or last payment, whereas in all the other Pro- 
vinces and Newfoundland it is six vears. 



(■ 11 A 1 





'' X°™''. l>ur.a,n. oontract xnean t,b. .amc thin,. Thoro aro k«al 
ananie-^al nrntracU. void and voidable contracts valid and .nvuh.l. Con 
^a.t9 nm • b.- oitho oxpros. or implied, or merely gathered from eircnna- 
anoer kme r bindin. when u.ade by .poken words, other, reqmre to 
i>"n writing while .'^ome must be under seal in order to Ix^ \ 
cTear knoSe of these distinctions is ... -hose who would avoul 
needles.s business irritations and losses. .i.,.,i..„. „root 

As contracts are the ba.^is of every business transaction, whethe. grea 
or small this chapter will cover those which the^s and pro.cs.onal 
man will bo Tno=t likely to come m contact with. 

11 Verbal, or Oral Contracts. ,, , 

Or-il contract, an- those made bv spoken words, and are usually called 

verl a^r ::;metin.os parol. They are binding for the ^^^/j^^^^^^l 

property (but not for real estate), up to a ^'••«''V';"""nl X o pe onal 
in eacir Province. In Ontario the oral agreement fo he .ale of^ persona 
propertv wouhl be valid for any amount in<drr $10 H'.^ other 1 rovmce 
an.l f^r te.hnical details, see "Statute ,.t Fr.ands, also When a \ . rbal 

^^^:::^rrSndin. f,. a lease of propertv for ^n^y^r^J^.r^^ 
nnder certain conditions for three year, and under (see Terms ot I.e. se v 
Ora .reements for .me year or under between n,aster -' ---^ "^ 
l.indinL': aud in rcgar.l t-, other things they are also hm.ted as to tune to 
one year. 

12 Written Contracts. , ^„;„.^i 
Wrirt.n ....... ra,-t. mav be either printcl or written, or parlly punted 

and p t Iv wr ten. Thev mav be formal using the pbra^eologv. cou- 

"ninttt details of the' whole contract; or they may be mfor,naJ. merely 

coutni.uMl in letters that have pas=ed between the parties. 

13 Contemporary Written and Verbal Contracts. 

\s a usual thin.' a written contract eaua..t bo a.Tected .>y a cntcmpor- 
ane<;us oral a.'reo,nent. If the written instrument purports to enib.dv the 
SXc^mrac;, the court would not Ik inclined to --- othe. evi - 
show that the intention of the parties was different. B,it if the writing does 
it g ve evidence of containing the whole agreement or .hows ^^^^^'^^ '^Z' 
Xns, then in that case evi.lcuce would !..■ received to prove a contempor- 
nneoiis verbal agreement. 

14 Contracts Under Seal. . r „» 
(•„n,rac,s nn.le,- . al arc ..alled Specialty (•.mtract., an.l ""'^ -^'J ™' 

be in writing. Thev d.. not require a considcratwr, to make them ^alld. 
The .eal indicates gr'eatcr deliberation and solemnity m f ^''"^•"^"^V'w 
1ract« ami a person is presumed to enter into them with a ^" J^'^--!-^^ 
of th;ir contents, hence dcharre.l from afterwards plea.lin.^ " msuffic.eut 



Anvdiing affixed to ihf documcut iifter the naiuc will answer ior a i^al 
a? well as a reguk; seal boiipht fur the purpose. 

All e<;irporate bodies and joint stock eoinpanies are reciuin-d b/ law to 
have a cM^rporate ?eal, whifh the otticers uiii-t iiii]'re>s <>ti all (-"Utracts signed 
by them, nn whioh s^^als an- i/ssetnial. 

i'roiiiissory notes and bills should no, be under seal, as a seal would 
destroy their neuotialnlity by jdaeinj^ thei i amon<j "Specialty Contracti'." 
except in ca.se8 of a corjtoration. 

Reals are required on deeds. niortfMpt-. bonds and on least's that arc 
recpiired to be in writiniT. 

For seals nn K'useis, see " Terms of I-eate." 

For seals on wills, see " Recpiisites of a Valid Will."' 

15 Implied Contracts. 

Implied contracts are those where the tern:S are not definitely stated, 
but ai-e presumed to be understood. They are as bindinir as express con- 
tracts, but sometimes arc difficult to prove, ('r are iiisunderstood. ExampU: 
A customer leaves Ids order with a grtKjer to have delivered at his residence 
five do.ien e^gs and $2 worth of sugar. Nothing is said about the price 
of egi;s or the inuiiber <if j'ounds of sugar sold i<^T a dollar, or anything about 
payment: but the law fires-tiinrx the exi-tence of i tacit understanding 
l)etween the parties as t'l the prices and the time of payment. 

16 Voidable Contracts. 

\"oidabl(' ci.iitriict^ are tlio.-c whicli lake tln'ir full and jtropcr legal f-tfect 
unless they are set aside by some one entitled *o do so. They bind both 
partii^ until set aside. The party defrauded may void the contract if he or he may affirm it and compel the other party ti perform it. 

Contracts, not for necessaries, made with minors, or with persons of un- 
sound mind, or with Indians on tlif ir reservation-^, are v.iioidile. not void, as 
it is optional with such ]i(r«.ins whether they will honor t.icir contracts or 
repudiate them. .\ls<i fraudulent contracts are vrddable, not void. (Seo 
Section 22.) 

17 Illegal Contracts. 

IlUgal '•■■u! facts are Utterly void from the beginning ard cannot be 
enforced. They have no bgal effect except in so far as a pj rt/ to them 
may incur a jtcnalty. An illegal contract is where the thinj. to be per- 
formed, or not to be perfonued, is forbidden by law. In all sucii cases, if 
either party has performed his part of the contract he cannot conipel the 
other to jierform his. and if either party has paid money he cannot recover 
it back, as the contract is regarded as wholly vicious, and no cou"t would 
attempt to enforce it. But if an innocen' ]>arty has paid money it may be 
reo.'>vered back. 

In a contract cimtaining two or more promises that are entirely l.stinct, 
so that one could be performed without the others, and it turned ou' that 
one was illegal, the illesrnl part would fall, but the others can be enffr'^ed. 

Rut illegality does not always apiiear "on the face'' of a contract, und 
in such a case it mu«t be established by evirffinre. 

The followinET are examples of illegal contracts: 

1. Contracts in restraint of trade. 2. Contracts in restraint of marriflc. 
3, To ohsitruct the course of rmblic iu'^tice. 4. Contracts with alien enemiei 



\{,\ (5. Sabbath dwocra- 

;„,„„.. ,.fwur. :.. (■uut,ru..-t..W.lannum..n.ll.t 

tion. t . i>''<^ "" "*^'- *■ • 

18 Contracts Against Pvblic Policy. ^^.^ ^^^ 

hoiK.. whatever c-ontraCs are ''l'!'?^''/';,'; ^f^^.^^'^oid An.ouir .uch th.. 
jariouslv atYe^a public p.hov. and are, therttoro, 
foUowiug three seetious are luelmle,!: 

19 Contracts in Restraint of Trade .^^^^^^ ^ ^^^^^^^^ 
Ml ,...,uu-aci. u. reMra.u, j'' '"^^^ '";J" ; ,,a agrees uut t. engage 

.elU bU busiue.., meludmg . o k and y..^ - ^ u,,ful trado is considered 
iu business again ,.t any Kiud U ''/"^ '' '^';^'^^^ therefore, eom.ucnee busi- 
beuebcial and m .he public mm-e.u ';^"':[; ^^^^ ^^^ ,„,ad, however, 

u,.s. aga a and the wou d h. e o ^^ ^^^^^ ^ 

^S^.t^lx^n:^;:s:^^'s.::^; ;sr,.uu . i...^ re^rai. o^ 

trade, hence not within the meaning |>t -he law^ ^ ^^ 

All combine, as --;;/';;;- ;'\-rt';uuket, for the purposeof 

o...reive measures to '"1 i.,llviduals or tirms composing 

intlating prices, are illegal .m,i.,> . . ,„„,,Hed action to soc-ure 

'"'•=" ''f" '" 'Tr""--e t i tho^e ^iv f aturo that refuses to sell to 
fair and reasonable price>. It is ♦h'^ «''^y^ \ ^ .. ,o„,bine." or who 


20 Contracts in Restraint of Marriage ,„„„.,.,.,. contract whiMi 

Marriage ,- heM ,„ U- iu : >■ >- l^'^^ ;. Si t h^; she mn. not 
wh..llv retrains marriage is void. Hie conatt l„„band) 

„,a.ry if attached t.. a Inquest ^'^ ""^.^I'^^^';.?; \v partial restraint 
in a will is voi,l. The person would ♦'^.^^j'; ' ^^f-^here a bequest is left 
of marriage, where it is reasonable, '-\>^;;V effected uiiti the age of 
,, a child on '■'-^"-;j;! -rSS. toliM lt?;d. because it would 

'"'TT-a'dm X™d.r^w"ld be loss danger of contracting an ill- 
^d^Sl tifi: t;: if tl. time ^xed should be say. bftv vears of a.e. 
t wonld be void, because that, would l>e '---onabc. 

A husband's k^que^t to h,s -f^-" --^^ ^ *, ,,,;„!. hence it is 
again, thongh selfish, is valid. '-'^;-;^'\^'^ J'^^, ^ 'U , ^ifo's Wqncst 
not iu restraint of marriage. Tt woni i '^ ''^ ;,,,,_ (g,,. 

U her husband, or any kqiicst^ to anv p.-i.-n w Im U.i 
'■ Valid rmd Invalid T.eq)icst-.'"i 

21 Contracts to Obstruct the Course of Justice. 

r , , .f ., nnblic official TO do sometliing contrary to his .luty 

An a-ivrnieiit ot a pUDlK oiulk.i pvertions in the 

22 Fraudulent Contracts. ^..finition cannot be 
sufficientlv clear wluit would e„ust>tute fraud: 



1. A fill-'- -tatfiiuiit as to the facts knuwin^^lv "r recklessly made by a 
party, or 

2. A concealment of facts that are known tn the one and not readily dis- 
cernible by th(! otlier, and yet such a.- ^hi)iild be revealed. The mi.'irepre- 
sentation imist arluaUy deceive in order to niake a of fraud. To sus- 
tain an action of deceit tJierp must be proof of fraud — fraud that actually 
deceives — and nothing short of that will suffice. 

The party who has been defrauded may void the contract if ln.^ wishes, 
or he may alKrm it and compel the other party to perform it. If he wishes 
to void it, two things are neceiwary: 

(1) Jle must not accept any l)enef5t derived from it, fir to continue t<i 
act under it after he has discovered the fraud ; 

(2) lie must jrive prompt tiotice of the fratid after lie has discovered it. 
The dishonest party cannot disaffirm the contract, but in all cases is 

bound to carry it out, if the other party ileniands it. If h<itli parties prac- 
tise fraud, neitlinr one can enforce the contract against the other. 

25 Selling Property Obtained by Fraud. 

.•\s a usual thing; a person obtainiuij <;(Kids or any kind of property 
throufrh fraud, and transfcrriufr them t-o nn inno<'ent third party for value, 
gives a srood title. 

A promissory note obtained through fraud cannot be collected by the 
party who obtained it: but upon cominir into hands of a third party. l)efore 
maturity, for value, and who did not know of the fraud, would be valid aid 
good against the maker; so would a stolen note. But a forged note cannot 
be collected: it is \'oid fr'^ni the liciiiunintr. 

26 Statute of Frauds and Perjuries. 

This famous Statute was pas.-ed in tlic :^i>lh year ol the reign of Charles 
II. of England, 167^, and still exists there, in this cmmtry (except Quebec), 
•n Newfoundland, and in the United States (except Louisiana j, with but 
slight change. It was designed to prevent the frequent commission of 
frauds and perjuries in regard to the enforcing of old claims, and various 
kinds of jiromises to p.uswer for the debts of others, and provided that certain 
contracts had to b<^ in writing to \v binding. The following are tho rwpiire- 
ments of the Statute which come within the s<'ope of this work as they have 
be<n varied by our Statutes: 

1. That leases of land for more than three years inuts be in writing and 
under seal. 

2. ('ontracis tor the sale "f lands, or for any interest in lands, must be 
in writing. 

•'t. Every agreement that by its terms is not to be performed within one 
year must l)e in writing. 

4. Every .spe<'ial promise to answer for the debt, ilefault or miscarriag*' 
of another must l>e in writing. 

5. Every agreement, promise or undertaking made upon consideration 
of marriage, except mutual prcimises to marry (engagement\ nuist Ix- in 

6. Contracts made for the sale of personal property of $40 and upwards 
miist be in writinir. unless |)art or all of the goods have been delivered, or a 
part of the purchase price paid. In Quebec. British ("obnubia, Manitoba, 



;»(>rili\Vf!4l Tfi-ritorif 

? and Nc'.vfi!ii!u!!a!id tlic sum 
In the ^'^lk<>Il, $'><>. 

Allxrta, Sawkutclicwiin, N 

w $.'0, and in Trincc Kdward Island, !?.:('•. 

27 Palse Pretence. 

F.W.. i.rct.nce i. a rer-osentaliou by words, „r otherwise (a nlmk. or uod 
of th. luad) of a nuutrr of fac-l either pre^'Ut or ,.a.t wluch vepreMion 
is kncwn by the peraou .nakiu« it to be false, and whieh is ma.h> with a 
fran.hdent intent to induce the person to whom it is made to act ui>ou such 
representation; hence, there arc four essentials to constitute /o/«c pretence: 

1 There must he a false btateiiiont or act. 

2. The offendr-r must kiww at the time ..f making' the stateni.'ut that it 

Vlho pK,ds nr money ii question luu-t U- pane,! with lu consequence 

of such false statement. , , , ; : „ 

4. The false statement mn«t be ma.le with 'lie intent to drane 


falsi pretence 


,f parting; with it 
the ow^ler of the 

The nenalty for ..htainin,: goods or 

years' imprisonment. 

28 Theft and False Pretence. 

Tn thfft the owner of the pp-perty has no inKntioii 

to the iKTH-u taking it; but in the case if fals^^ preten<-e 

^Is does intend to part with them, but his consent o part -th them . 

^ared by the false represent! t...ns made to h.m. In f -; «1; J^^;*; 

steal in,- to take something gro.ving out of the eartii of less value than 

25 cents. 

S9 Embezzlement. . ^ ^ 

K.nKv.l ■ment is ,he taking of money that has not yet come >nto p^^H^^ 
•ion of the employer. For instai ce, a debtor pays the employee money for . r and he keeps it hims-df ; therefore, whenever --^ -.^^'^^ 
by tl/empUyee. ami is not uccounteel for, or its « de-ed, it x« 
embezzlement By the law o' Canada this is now classed as theft. 

30 Breach ol Trust. . , . 

Mreuh ot truM is a term usxi in connection vsnth a person who is 
app ;m:i a tiiL of any property for the u. ^^^ y^^'^^^^^^Z:^^ 
n<^rson or a ..ublic or charitable purpose, and who fraudule itb appropn 
ateH' to seine .ther use. Persons ,„ilty of this offence are liable to seven 
vears' imprison nent. 
83 A Pr T)Ositim and Its Acceptance. 

V con.ract i ■• composed of two eicment^a proposition and an accept^ 
ance \ propos tion in some form is the beginning of every «o"/^''^'^; ^^^ 
^^rlon mikel ax. offer of .some kind to another and it the o her pe on 
iccepts the offer in the same sense as made, then there is a contract. Jut if 
Accepting he makes any change in the terms there is no ontract 
Example: One nun offers to sell a horse to another for $ 00 ca The 

other .artv savs he will buy the horse, but will only give $S... This is not 
al en. ng to the proposition, Out is in efl.x.t a new proposition. Any other 
S,amtn°he term- would have the same eiText, as for mstance, ho second 
farty w.ld sav to the first that he would accept the offer but could not pay 
fo^tlree month. There is no assent here, no mutual agreement, hence no 




34 Time for Acceptance of Proposition. 

An oral propo.sitii.n wlii.'h do.-, n,,| ini-liiil." any ])r.-.visi.m h^ to time 
ceases when the parties scparute. \ wriifcii pr'>!MHili.>ii with no tiint' limit 
named ia good until accepted i if 'l-n^ witliiu a iva-'onalili' time). .>r until 

ff a time i.s fixed f^r ai-ceptancc. it im;-i !"• i:iv<'ii within that time, 
otherwise the aox-eptaiiee woiilil he a iniliity. .\ii aeeejitanee may l)e ^'iven 
hy ail aet as well ius hy words, as in ease of all implied contraot.s. E.xaniple: 
The wife or children [mrehasin<r neeessaries at a store, the a.ssent of the 
fiiiher is impfiril. and hinds hitn, unless notice to the contrary ha- Imn^ii 

35 Assent Obtained Through Fraud. 

.\,..ri,t ..l.taiiH'd ihr.iiirii tiMiid is imi hin.iini;' ..ii the party wl;o was de- 
frauded. Such a contract may he n -rinde,! hy the innocent party, hut he 
must <]o so immediately after lie discovers the fraud. TTe must also refuse 
to exercise owner^liip over the -nhj.'et-matter of the contract or accept any 
profits ari~in^' from it. 

36 Assent Obtained Through Force. 

If assent is ol)laiiir(i llii-oii;.'h threat of bodily lianii. iinpri-nmiieiit, or 
anv similar illeifal pre-snre, it is void. l)ecau>e under ihirrss. Ent a threat 
to dismiss from emi)loynieut unless a certain i)ropositioii were afrreed to bv 
an employee would not he duress, and a contrui-t >ii;ntd under that kind of 
pressure would he lecral. 
39 Propositions by Mail 

When a projxisitiou is made hy letter the eoutraet is close<l when the 
letter of acee|>tance is placed in the ]xist-office. 

An acceptance f^iven by telegraph .•L.-i-s rlie contra.T when tli.' mes>ai,'c 
is delivered to the company. 

.\ proposition tliat does not prescrihe 
valid until revoked, or nntil a n-a-onah! 

42 Withdrawal of Proposition. 
A |)ropo^itioii niav he w-'hilrawii any 

Iwen 'jriven. 

In ea-ic a proposition made hy letter is to l>c withdrawii. the letter of 
withdrawal must be received hy the other party before the letter of accept- 
ance i~ plaeed in the post-ofTice, otherwise it is too late. 

If withdrawn, by telegram or hy telephone, the messasre of withilrawal 
must he delivercfl to the other pari)/ liefore his leifer of acceptance is ydaeeil 
in the post-office, or his ucceptauee hy leh'cjrajth is delivered to the tejegrapli 
compnini . otherwise it is too late. 

43 Consideration in Contracts. 

This law term refiTs to the reason nr inducrmenf upon which the parties 
to a eontract crive their assent and airree to he bound. In every biudinj» 
contract there must of neces^' '■" !)(> a leiinl consideration, and what the law 
denouiinates a " sutheient consideration." 

There are variou.s kinds of consideration, and as thi- i- one of the most 
important features of a contract, several will here he enniiierated : 

(a) Good conjnderntion i.« one based upon nnfinvJ lure and nffertion. 
Example: .\ father may deed to his child a portion of his laud, and it would 

aiiv tiini^ for aecejitance continues lia< elap-ed before acceptanee. 


l^efore the acceptance has 



\ lu.Tc prumisc, however, to giNt a u«--»^ 

^' •A;r:n;l ,o n.a.y i. .held a ^^''^/^^tt'Zion^^^-'i is wholly or 

snmgnlin^' jt-kkIs int.. the '-^3"°^'' ^' ' ' ^„ satisfaction of a waper on an 
ing imn.oral literature. Noes gi en '" f ' .VL-ket sho,," transaction, 
,lii.,i„n or a horse race, or tn -tt en.en f buck t ^^^^^^^^ ^^^^^.^^^ 

or to a hotel-keeper in payment for liqimr, 

expenses are void , , |.,ri.,l null ami voi.l even 

'a note given for a gan.hl.n. ■ leb^ J he 1 ^ ^_ ^^^^ ^.^^^^^^^ 

b the hands of an inn^K-ent^ .ndor^w- for Naluc 

V. Deronin, 7 T.. C. .T.. 1-S ' ''•^'- ,.„; _Contraets under seal are 

(,^ r.....V/.ra/^., .. -«'^%t pla n'of a se^l on a contract makes 
valid without a consideration. ^^^'^^ J^ J ^^ ,„„i,ioration. 
it final. The. seal itself is said to ' ''V^' ' ' ' i, presumed. Proims- 
(e) Consideration m regard to ' ^^ f J J? , a./inn.K-ent holder for 
s.r;n!.es, -eptances and e^ejvues i_n . h \u^J^ ,.„,iaeration. With 
value are va'id. even if hey ^'■''\'f'l'^'\ inn,„.,,ut third party 
.K-h paper ..onsidcration is P^-J-f;,, J^ ^-^ ^arty to whom they were 

them bef.n-e maturity 'l';'-;;''^;'^^, t' "Ucnt ; neither could third parties 
given without vahu- coulu not nt<^^rce p . ^^^^^^^^^^^^ ^ _^ ^^^^^,^ ,^^_^, .^^,^,^,|,^. 

if thev purchased them after ma uut>. Au 

l:,/arc.connnnn „,:,„m>1,.^ of th:s kind. 

48 Failure of Consideration. 

^„. ,., jivo $300 for a r'"'" '"'''' L-^r TW c....trr.c, c.mno. b<- 

ri;::rrd^'.'^r?.;;;K™\rc.^.r:,u CO,.*.., o„.o.. ,» .bo 

othi'l- I':ii-tv ii,;iv Mli'am M,iin.i_> i 

49 Gratuitous P'^o^^f 'J^f i^'p^omises without a rori^/c/era/.o,. are not 
Gratuitou- pr '.uses tliat is, proi. > _ ^^ cowfiderahon 

S^'t !r"::o::'xi„rorr."l7'L?ro »u pro,„i. ,o ,.0 „, „o 

t.omething cannot lie enforced. another's dcht that has 

/i\ Af„tii.-1 TiTomi«ee. however, it ma<i< ai mi ■«■ 

(?,) MutmJ .P™™;^"^ ' ^^ -.p^ation" for the other promise. _ 

as the one promise is a ^'^'^^^^t ™f chattels is good, if accompanied by 
(c) A i:ift of g.v-ds or anv kind ot '"'^"^JJ' - -p ^ ^y^^^ one person 

^eliUy, and the donor -iH ^lot ^recover them bacl. ^T^t^^^ ^^^^^^^^^T^ ^^^ 

obtains property 

IroiVi nnoiiiv! 



projHTfv: honcc, if tho ^iv.>r should sue for the value of (he art.icle^H, the 
other party iti setting ,ip hin def.'ii<-e would have t<i prove they were a j^ift, 
ai.d thi^ he eould not do by the plaintiff if he denies the gift. Other evi- 
denf>e womM have to ])r friven to prnvc thf qift. 
51 Legal Incapacity to Contract. 

'I he classes of persona whoso righla and interests tho l.iw |.roterirt by 
placing thciu more or less under legal ineapacitv to contract are: 1. Per- 
sons under 21 years of age. 2. Idiots and lunatics. 3. Persons wholly 
intoxicated. 4. Iniiians living ..n tticir reservations. 5. Those under sen- 
tence of death. 

53 Minors, or Infants. 

Minors, m Coninion Law called Infants, are, in Canada, all persons, 
male or female, under twenty-one years of ago. In a few of the States of 
the United States females are of age at eighteen years, but not so in Canada. 

A niin.r cannot waive his riglits of infancy by any possible agreement, 
cither oral or written, will bind him. 

A wife, however, under aire, ninv bar her riglit to dower, but she cannot 
make a valid will. 

.\ minor may sign as witness to anv d'X-ument. if old enouirli t.> nndcr 
stand what he is doincr. an(l to give evidence in court. 

.\ minor may also act as arjent and hind others in contracts. 

(a) Where a minor represents liimselr to a purcliaser to be of full airR 
ho is not allowed afterwards to set up his infancy as a defence. Tlennetto 
V. ITolden, 21 dr. 222. 

{b) In (Quebec niinnr-; cannot simi as witnesses to Wills nuKJe in 
■' Authrn:i<" Form." 

54 Minors Contracting for Necessaries. 

Whatever ihin:,^ are necc>.~ary t'-.r ilie niiuwr iu his station and condi- 
tion in Wii- he may contract :for, it he is not living with liis pareuta or 
guardians, who are able and willing to support him. If he should not pay 
for such necessary articles, the dealer from whom he purchased them may 
sue and recover from him just the same as though he were of full aire. 

'I'lio things usually reckoned as necessities for minors are board, cloth- 
ing, education and medical attendance, according to their station in life. 
A suit of tweed clothing for n son of a mechanic, or any per.son in a similar 
station in life, would bo regarded as a necessarv, but a sealskin overcoat or 
a gold watch would not l)e. A fur coat or a gold watch would })e held a 
necessary for a millionaire under age. 

Elinors not at h<ime and supporting themselves mav sue and recover for 
wages earned by them. They are also liable for any damage done or wrong 
committecl by them; also for any criminal fiffenco. Wages of minors mav 
be garnisliood in payment for necessaries onlv. 

They may also contract for life insurance within certain liinitations. and 
1)0 held lial)lo for the premiums. Eut if he gives a note for the premium 
the note cannot be collected by suit. fStv section "Minor's 'N^ofe."') 

("«) In Qvrhor minors are omaneijiated from some of the disabilities of 

minority: 1. Bv marriasre. 2. Judicially by a court. 

By enffacring in 

trade, as a banker, merchant, or inechatiic. he is reputed of age for all nets 
relating to such trade or bu-ines^. (C. C Article rii)'"..") 




Hut in all ca«e8 a curator or ^'uar.iuin mu-t Ih^ a,.iH,.uuu 


tion witli his busintv,. .,r trade. ,^ ,,^^. ,^„,„^ 

55 Minors Buying Luxuries. ,, ,„1 1 1„ •invthin.' l-oyond what 

Che lau-'la-ssc as necessaries, ^'^^-.^^^-^'''''i'i' , ''ti .^?,Ll ."oods 

back, In.t ho cnnnoi take then, himself hy force. 

the opon »<•<■«,.«, .,..1 r'"» '''^'' V', tTcSUotpavmont. 

„ „ .„rMv, ,i„.y >v.,.,i.i bo li* ™ ". «»J ,Sa r rir .m .!. 

,e ,:;:r;';::i: l:r:;:;:':« rr^sur^^i ...a .o , .™ 

liahle on enntr:T't« made with him. 

ho'b... roeeivod. Whall. V. I-^-;/' ,^'l ;„\- ,, ;. ;, «, aetian in which 
A1.0 if n minor sue. or defends durm- '"^'^ [ '" ^ ,,^^,, „„^ the 
the d...d is called in qne.tion he mav affirm ^^J^ ?fi^^"\f ^.V ^.,i,,^her 
reoor.l will bind him. Gilchrist v. Tlamsay. _, 1 . ( . u. • . 
V. Gallagher. 3 V. C K. 1-2-2, 

58 Minor Attaining Full Age. ^^^^^ before a*re 

.bi: i^'v^tT:' l^ ;:X tlilr-^he'r^^ition nu,. he in writin. to bind 
S;:Vunreasonabie delav ^^ r^:^^;^^;^^^^^^:^ . bnt in sn.h a 

easJt ::;:;t r::^r2r;;:rn.e^o,.....n, if it i. wit,.! his 

power to do so. 

60 Parents' Liability for Mi" or's Debts. j,;^ ,,ts or 

notice has been given to the contrary. toi,> 

Parent, are also lial>le in ease the minor is noi i.^-g a. n.:.., ^u. - 



sui.i...rtinj< hii.iM.lf and colloctiHK lii" "«ii wa^es. if tlwv slmuKl i.i.v part .,f 
lii-^ b.ll« or nwoiint*. Th..y then n-.i.lrr th,-ms,.|vi.s liahlf f,.r alluf then. 
Ihvy may airl him if thoy u-i^h by ^ivin^ monev dinvf to him, hut mu^t 
not pay any of th- .h-hts h.. -...itrH.-t- if th.-v do n.-t wish t.. U. ■<• liah'- 

t'T all .it t' .in. 

61 Parents and Wrongful Acts of Minor. 

.-a a general nUo a father is u.,t liable for the wn.n^rfiil .,ci.^ ..f hi? chil- 
dren, lo make a father lial.!.. f.,r the \vr..n;:ful act -f hi> .-liihl it must l« 
8hu«ii ether (J) that he authorized it. or ( - ) that he ratitied it, or (3) tliat 
It waH done in the course and s,.af)e of the child's, employment. The Baine 
rules which govern the liability of a nuister for the a<M, .,'f his Mpvaiit ai-plv 
!<• ihr liability of a parent for the acta of his child. 
63 Contracts by Lunatics. 

Su<-1, |HT.-...ii~ l,,,vn,- |,„r, their iva.uii an.- mauifeslly incompetent to 
contract But unless the insanity is of such a nature a^ to h,. patei.t t,, 
everybody, It must be est4.blished by le;ral prweedings- to be relieved 
a contract he may have ..ntercd into. A person who seeks to void a e-n- 
tract on tie jrro.ind uf his insanity must prove not onlv his mental in- 
caparity. but also the plaintiffs knowled^-c of that fact, and' unless he proves 
tnese two thmirs he cannot succeed. Holx-rtson v. Kellv, 2 Ont. R. l«;j 

A person who nuikes a contract with a lunatic is Knind bv it as tho'uirh 
he were dealin? with a pers<in competent t« contract. N'o i>erson but the 
lunatic or Ills lepal reiirescntatives can void a contmrt that ho ha^ iiia.le 
(on tracts for necessaries for him tlie law holds bin.lin::. 

In some cnses of ins^mity. pers-ms Iiave intervals durin- which thev are 
perfectly sane. The^e are called "lucid intervals." and eontr.iet.s ma.'e 
durinir such periods are binding'. 

64 Drunken Persons' Contracts. 

A per-.m lu. iviv .-ii-..i,-lv under the influence of li.pior is n,,t leo-allv 
althouirh he may !«■ mentally, incom]K>tent to cufract. To be relievf^ffp ui 
liability on a contract he may have entered into, he must be wholly intoxi- 
cated, so as to be unabh" to use bis reas.m. unless the other partv furnishe<l 
tno luinr.r. nnnik<.iine-- will not relieve from rriminal'tion. 

65 Indians' Contracts. 

Our Indians living ,,n their reservations are wards of the Crown and 
thus protected fn.m fraud and d.veption bv Lein- placed in a similar iH.^i- 
tion to minors, and rendered incapable of l.indii;£r themselves in a contract 
A person who makes a contract with them is bound, hut the Indian i- n..t 
bound, not even for necessaries. 

The words -f the Statute covering these points are as follows- •• No 
person shall take any security or otherwise obfjiin anv liens or char<-v 
whether by mortgage, judgment or otherwise, upon real 'or p.-rs(,nal prop- 
erty of any Indian, or non-treaty Indian. Provided nnv person selling 
any article to any Indian, or non-treaty Indian, mav take security on such 
article for any p.u-t ,,f the prj,-,. thereof Avhich is unpaid." K.S'.C, chap. 
^1, see. 102. 

Sec. Wr, says: " Xo presents jriven to Indian^ ..r nontreatv Indians, 
and no property purchased or aciinired wit). ,.r Ky m.-.nevs or nnv n tit- •••it-: .-I 
granted to In.lians. or any part thereof, shall be- liable 'to be taken, seized 



<,r .listrain.-.l for hdn .Irl.t, nialt..r -r canst- whaUw.evpr. All aiiinials, turm- 
injr iniphMKHits. f...'.lH and articles shall be hel.l by then, frit- from 



seizure ("V J. lit." K.S.C, <-\:i\ 
67 Alien Enemies, and Contracts. 

\,vur.lui' h. Iiii.riiati..iiiil Law all (sminieroe bt^twwn nations at war 
is suui.rosc.I. and cnalra.'i> .lit. rd int^. (even hilU of exciianno), aft<>r 
th<- .Uvlaratiou of war an- illegal a'ld v..i<l, unlcns the Crown ^nv.^ a spc.-ial 
license. C.mtracts made » the war .•onirn.-nced are su-|«ti l-d diinnR 
it.« cnnfiniianc'-. bnt niav Ix' enfi.rce.l after jK'ace is declared. 

.Mi. iw ill Canada in tinic^* of peace may own pr..i.erty au.l c.mtract as 
fr.-<']v as natural-born subjects or th.'se who have taken the oath ..f alle- 
L'iatice. but they cannot vote :it. any municipal nv j.arliamentary election. 
69 Parts of a Formal Contract. 

.\ t'oniial conira.-l uill ii.ciu.l.-: 1. Dale. 2. Names of Jl parm-s m 
lull. :;. Kccilals or .xplanatiouH, and reasons, ii any. 
lion. ii. Thi- subjeet-matter. t'>. 

4. The conaidera- 
\11 the several agreenient-i between tho 

their names. 

i.artiea. 7. Signatures of all parties, as th.'V usually sign their naa 
.-. Seals, if any are reiiuired. it. Signature of witnes.s, when nMiuired. 

in drawing contracts Iw specific in naming all tlu' terms and con.litious 
o," the agr.'.nient. State acc-irat.dy tho names in full, residence an.l occn- 
p tions of th.' parti, s iu the contraet, and tlm diflVrcnt promist-s each one is 
to perform. If a jier-on lia* s.'veral Christian names, include them all. A 
peraon who has no trade or iprofession is usually callcl a ■ gentlenuin." In 
the residt^nce of the parties the smallest inuni.Mpality ' - "- 

gi\ ns 

must be nien- 
tioi c.l first, as a township, or village, or to\vn. or city, then the countv. :aid'v the Province. 

"he iierson ajrreeing to do work or to sell 

;irtiele is usuallv called 

lie ]ierson 
tlu i)artv of tho first part," and the jiiirt; 

■" " t there is reallv T,o difTerence which ciMiies fir«t. 

ivinii 'li«' money ''the party 

,.( •] • -econd i>nrt ; im 
70 i igning of Contracts 
Ti e instrument, if to 
a disii terested witness. 

be r.'gistere.l, ' oidd In- sigiud in the j.reMac.. ,,{ 
If the instrument has already b.>en signed, it will 
be"su"ft MCftt for a person to ncknnwlolqp his siimature in the j.rosence of the 
witness^, when wonls like the following may be used: "T acknowledge this 
to be ir, V- hand and seal." if a seal is required to be iised. 

In (ISO of a corporatim it is siifTicieiit if the instrument in ^vritmg is 
drly sea ed with the corporate seal. (P.. of Ex. .Vet, sec. .">.) 

71 Sign iture by Mark. 

A pc -s.'u who caiiuof sign his own name must rciucd .some other party 

to do it f< r Inm 

Witn. ss: .T. C. Simmfks. 

The following will illustrate the usual form: 

SlMMrKS. WlI.T.lAM ■■' WlNTFR,^. 


A persni .signinir his name this way vv.\y \:X^- li"M of the pen while, his 
name is bei ig written, or he may not; he may make^his o\vn cross or he 
mav direct ome .4her person to make it for him. '^' *■ »•'■""■•"" 

b.^ \ witness to the signature. 

There must, however. 

vYluti a 1 erso 

who cannot 


e\e<niti.ig an in.stniment, it is 



William X VVintfi^^- 


ri'qiiircil tliat it Ik' read over and t'X|)laiiii'cl lo imn in tim prcHeiico of the 
witnPHu, HO that ho may fully understand what he i.s dninf;. Thi; \vitn(>!«, 
in nipi>'nn ^<'c\\ an iiHtrnnicnt, should mention the fad in uoino mui'Ii word* 
aa tiip following;: 

Siinied, sealed ancj dolivfrcd 
after tirct havinp been reail over and 

explained in the prefteiieo of 

.1. C. Sl'MMKttS. 

Of ooiirse for a promissory note tho word " ucaled " tdioiild be nuiitted, 
as a >eMl udiild lie ipiiy 'lie negotiability of the note. 
76 Witnesses to .'octunents. 

It is nut esaei tial to the validity of any document or agreement that ita 
exeeuiiiin be witnessed, except in tho caa« of Wills and wliero a iwrson signs 
" by mark," as in tho two preceding seetioud. The only objeel in having 
one or more witnesises to a lease, a deed, or bond is to provo tho enntraot 
in case tho jiarties should Uiercafter dis[)ute their signaturett ; and also to 
comply with the roquirementa of the Registration Act for documents that 
have to be recorded. 

In all documents to be registered, as deeds, m>rtgagpa and bills of sale, 
it is neeesaarv for the witness to verify his witnessing and signature by an 
afTidiivit, wliieh is writti'n on or attiielied to the doeutnent. 

76 Erasures and Corrections in Documents. 

If any oiuli >hould bei'ome ne<'essary to make it shotild In; done before 
tho diK'nment is signed, in making the corrections do not use a knife or 
rubber, but simply draw a line through the words with pen and ink si) that 
tlie original words may Ik? clearly seen. Then write the correct wor<l« 
between tho lines, using a caret to show where they should be read in. The 
witness slimild put his intials on the margin oppoiiitc every such cnrrection 
or iiiterlinoatinn as evidence that it was made before the execution of the 

77 Documents Requiring Several Sheets. 

W lien a diH'iinient is written on more than one sheet they .shonld Ix- 
fa.'!tcned tou'cther and paged l)cfore being signed. Tho witness sometimes 
places his initials on each sheet and inontions the number of sheets with his 

78 Agreement Comprising Separate Documents. 

Wiieii an agreeiucni is eoniposcd of !w > t inoro separate documents 
they are usually marked with the letters of the alphabet. ;is .\, 11, (', etc., 
and referred to as "Schedule A," "Schedule B," etc. Example: Contracts 
for the erection of large structures are usually accotnpanied by plans and 
8[)ecitications markeil A, 15, etc., which are attachi>d to ami form part of 
the agreement. 

79 Requisites of a Valid Contract. 

From the preceding sections the requisites of a valid contract may be 
summarized as follows: (1) It must be possible. (2) It must be lawful. 
(;i) It must Ix; made by persons who arc competent to contract. (4) It 
must }>c at=«'^nt/'d tn hv ench and nil the pnrticft. f.S) It refiijire^j n cnTTsi.d 
eration, except fir tliose under seal an.l far neiTotiaWe instruments. ( C)) It 

iNlKuriii lAli'iN OF ro^TRACTB. 


inu9t be witli'itit frmid. (1 ) Suiui- mn\ U- virbul, lillirrs iiiUHt Ixi in wriliug, 
mul Virile uiiilir .seal, iu'iv>ri|iii); t,.i the iiutun- nf the oDiit.ract. 

80 Interpretation of Contracti. 

AhinKigh a is supposed thai purtiiM cntiTint? iuto a eiintra<'t fully iiihIt- 
hIuikI its tvriiis, ami will use laiigi'imi' in cxprfssiiij^ 'hciii that \vill i'.\plicitly 
f^ive their lucaniu;;, yet it often happens ttiat 8iu<h '\» not tho caDo; tionce 
ccrtftiii rules have be-en adopted to interpret them when anihij^nity occur*. 
The fiillowinp are those of ehief iin|>i>rtanee : 

1. TiiK i.NTKN HON of the pa^fil•^^ at the lime tho eonlracf was inail(> id 
(V)nsidere(l, rather than the literal nieaninj; of the wi>rds. 

2. CiJHToM AM) iiHAoK of that partieulur business anil placo will bo ro- 
garded when the wording of the eontract is doubtful. 

3. The teciinicai, words and piikasks used will be given the meaning 
ill which they are employed in that particular business. 

\. Vakiations iiKTWKKN witiTtNo ANii iMiiNTi.vo. — When one part of a 
e/intr!ict is written and another |priiited, if they disagree tho written portion 
will be accepted. The same is true with a note or cheque. 

5. LiuKiiAi. CONSTRUCTION. — Where the wording of a contract is ambig- 
uous it is the rule of the e^iurt.s to mnstrue if liberally, so as to give efFect 
to the Common sense of the ajjrcement, even sometimes rejecting objection- 
able cliuiscs iiiul sii]>plyin<; omissions. Hnt where the Statutes fix a dcfinilo 
meaning to words, they will invarinblv be construed in that sense. 

6. CoNSTKncTioN A.s TO TiMK.— When no time is mentioned in the con- 
tract for its exeetition, the presumption is that it must be done at once, or 
in a reasonable time, and the courts will so construe it, according to tlie 
nature of tbr work U^ be done. 

7. roNSTitrcTiiiN as to ri.ACE. — It is a settled rule that : 

(a) .Ml matters bearing upon the interpretation, the validity and tho 
execution of contracts, as well ns capacity of the respective parties thereto 
to contract in such ease, are determined liv the law of the place wliere tho 
cnutrnct is made, unless the law of tlie |,lnee where the contract is to \yc 
carried out forbids it. 

(h) .Ml tuntters relating to it.s prrfnrmnrirp are governed bv the law of 
the Province or country where the contract, by its terms, is to be perfiirmed. 

(e) All matters respecting the rrmediex to be pursued, the brinsriu!; of 
wilts, service of process, etc.. are governeil liy the law of the place where 
action is hroiirrht. 

81 Time for Completion of Contracts. 

Tlie element of titue is aii important feature of all contracts. .\ con- 
tractor not completing his contract within the time specified is liable for 
whatever dam.ntres actually occur, if no stated sum is acrreed upon. 

Tn cases wliere no time is fixed ^ t the completioti of a contract it 
he performed within a " reasonaWe time." accordinc; to the circumstances, 
•which, if not nnifually agreed upon, would be for the court, or iudge to 

82 The Penalty Clause in Contracts. 

Where a definite time is fixed for the completion of the contract and a 
Qfcjfed pi»m a.^reed upon hv wav of danin.cres if not coinpleted hy such date.. 

say "$20 per dav for e:ich and every day tliereafter, until completion," 



tiU'b agrct'Uicnt is fiiforwiible, providing' it i^ uit imlliticd by some act of 
the owiifi- hinijelt'. For iusiunee, the conlraet is for the coiistriunion of a 
partic-ubir building, aei-ording to certain plans ami speciticalions, usiuj; eer- 
tain kinds "f material; but tluring tbe course of ercvtiou some cbanfre is 
made, either l\v the recpiest or consent of the owner of the. buildiiifr. in the 
substitution <if some other kind of material in place of that ajcrced upon; 
or some cliangc is made in t' c plan of some ro<jm. or hall, or stai-s or chim- 
ney, no matter what: this nuikes a new contract. It is not the building the 
contractor \m\m\ himself under a ])enalty to complete ')y such date, and 
therefore he is released from the stijudatcd damages. 

To jirevent such changes from uuHifying the penalty clause they must 
k embodied in an additional written airreeuient, signed by the contracting 
pi-rties, in which it is definitely stated that the other parts of the original 
furrnrTnen^. "ncliidiuir rhf pcniilty c1aus<>, are to remain in force. 

83 Cancelling Contracts. 

in cases where a person ha.s been induced through fraud, or falsehood, or 
niisrepirt:cnl(ilion of any kind, to enter into a contract to purchase land or 
any kind of personal proj^erty, he can repudiate the contract or bargain; and 
if he has paid moiu'v he can recover it. I'.ut, he must act as soon as he 
discovers the fraud, and restore, or ort'er to restore, the [iroperty in the same 
condition it was in when he received it. The fra\id ^r ir!isre]>reseutation 
m\isi be of a material nature and actmilly uci-cive. 

A purchaser who would rescind a contract must 1>^ in a position to restore 
the i>roperty. If he treats the proj)erty as his own (more than to care for 
it), after discovering the fraud, he cannot afterwards return it and recover 
his nionev. If a portion of the goods were used bef()re the discovery of the 
f.'au<l. it woidd 1)0 for the court to determine the value of the ]iortion use<l. 
There is no chance for a [)erson to rescind a contract merely Ix'cause he 
i-liauL:( - lii> mind. 

84 Breach of Contract. 

Breach of contract is a failure to do what was re<piired or covenanted to 
do; or tbe doing of what was forbidden. The party willing to carry out 
the contract must tender the money, or goods, o' service, as the case may be, 
and then if refu-ed may sn for "specitic performance." or for damag(\s for 
breach of contract. 
88 Remedies for Breach of Contract. 

'I'he law |)rovide^ two classes of rcmi-dicn for the enforcement of the right*! 
created by contract — civil and criminal. The criminal are for the punish- 
ment of crime, and in a general sense are dealt with by the Crown; tlic 
civil belong to the individual, and enable him to enforce his personal rights. 
His remedy is by suit for damages. There are different classes of dam- 
ages: CD Compensation for the actual loss sustained. C2) Xominal, where 
the failure to ixrform the contract is not regarded as intentional, but merely 
througb inability to do so. ("]) Liquidated, where the amount is ]irevi- 
ouslv agreed upon in case damages should be awarded. ('4) Speculative. 
Where the profits that would have resulted from tae performance of the 
contract are known, they may be recovered, (ft') Exemplary, where for a 
malicious violation of a contract a sum in excess <A the actual loss is 
awarded a? a punishment — ''=;rT'!?r«- TTinTT-v" 



90 Injunction and Mandamus. 

The cost varies. If the partv desiring an injun<;ti..n will ^o to the 
j,„,i^SiSan,l „.ako appL-tt,. tor hi,n«.lf, ^-'-"'^ l^™ ^-^l^ 

ible ttndcr a Wnul for whatever datn^ipes may ame mtt o it and the maU^r 
stops with the scrvioe of the in utietRm. it lux.! not cost on or $o.00 liut 
i he on IvB a solicitor or barr.ster to make appUcat.on for an order of 

ni, x'tion and who thus k^eome.s responsible for danu4jes that n.ay art^ 
;; ^"ll 'ost f"l $2.. to $50, and possihlv *Tr. if the .njtut..t,on .s n.tsted 
and tlie case has t.. k- foupht oit. 

The satue indj^os tnay a marulamu.. or.lerin,. one to do h.s dt.iy 
in a particular eas.-. This is usually t.sed against a pt.bhc 


95 Contract to Build a House. 

To more fullv illustrate the opening, closing, signing, ^vitn.^sm^. 
general wording ..f a contract, the following agreement tor bmUl.iv, 
a house is given: 

\RTicLES OF .^ORKEMF.NT made and entered into on this 24th day of 
March \ 1). 1910. b«>tween J. II.. of Toronto ( merchant, or other .>3cupa- 
tion\ "and ('. S., of St. Catharines, builder, it is agreed m and 
form following, viz. : . , , , , i „„^f 

The said C. S. covenant, and agrees with the said J. U. to make, erect, 
build and tinish in a go.xl and s.ibstantial and w..rk.nanlike manner on lo 

plan the property of the said J. IL. situate ou the .... ».de ot 

■ ■ ■ ■ ' ireet in the ... -^f a dwelling house, agrcH-ably t,> the dra t, 

pian and specitications hereuu.o annexed, of good, substantial materials, by 

the day of nest. 

And the said .1. 11. covenants and agrees to pay unto the sanl C. S. for 
the same the sum of .... dollars, in lawful money of Canada, a. tollows 
The sum of .... dollars in ... • days from the date liereof, the s,ua o 
:. dollars when the sai.l dwelling hou^e shallbe co,npletely <"" J' ■ • - 
the sum of ... . dollars thirty .lays aft.T the said .hve Img hou.e shall have 
been comnletelv finishe.l. And for the true and faithtul ,,erfonnance of all 
^Wv of the covenants and agreements above mentioned, the parties here- 
unto, bind themselves, their executor,, administrators and a.ssigns each unto 

Sother in the suu, of lollars as liquidated dama.^es, and not by way 

of penaltv. 

In witness whereof tiie said parties to these Presents have hereunto set 
their hands and seals the day and year first aWe ^Titten. 

Signed, seale.l and delivered ^ 
in the presence of r 

F. E. MlSFNEIt. j 

Jamks IIenoer.son. 4ff 
Cn.\KLEs Summers. 4^ 

22 i;l \fUll.Vrt A'.iAl.VbT FUAri). 

96 General Form of Agreement. 

Meraorandum of agreement made and (.ntertd -to this ... day of 
A.D. 19 

Coiiniy of Province of 

Between of 

Wltnesseth that ,io said parties h.Teto do hereby mutually covenant, promise 
and agrei to and with each other In manner and form following, that" is to say: 

1. That, etc. (here give roncisely the particular agreement entered into between 
the parties). 

In wltnesB whereof the said partlee have set their hands and aeala the 'lay and 
year first above written. 

Signed, sealed and delivered, , 
in the presence of 

(Signature). J 

(SlgnatureH and seals ) 



100 Gu£.rding Against Fraud. 

.\khougli tiiig is purely a law b<x)k and not a book on business, still 
this chujiicr is so essential to the business oomminuty that it can scarcely 
be omitted. 

The itinerant swindler i.* always operating ^mnewhere, in some line. 
Every class in tljc cominunity have this enemy to watch against. The 
followinfr sufrgestions may be of service: 

1. Never give money or a note, except it be to a well-known tirni. until 
the article purchased is in your possession and found to bo according to 

2. An article or a iiuicliinc Ijaving bceii ordered, which, upon arrival at 
the freight or express oiTice, is found to be not accx)rding to agreement, 
Bhoidd not be received. Of course, if the article is according to contract it 
must be received if delivered at the place and time agreed upon ; but if nr.t 
according to contra^-t the article should t><' refu>((i, and payment tlif^refor 
cannot be enforced. 

a. Always take a ropy of every agreement that is made in writing, or 
any order given for machinery, goods, etc. The agent should sign the com- 
pany's name, together with his own. to the cofiy you retain, which should 
also be marked "copy" by him. Xever neglect to do this, if you would 
avoid the risk of having your order changed by an unscrupulous a^ent into 
a promissory note, or for a mneli larger quantity of goods than you .agreed 
to take. Tf you have no copy, it might be difficult to prove the forgery. 

4. In dealintr with an agent, or any other person, where a wri'ten con- 
tract, agreement or n-ite is made, le assured of this, that uothiiiir but the 
written document will be considered in court. No matter what else the 
other party promises in .addition by word of month, or even in writing, if 
or. n rrp.irnt." p.ipcr f.r r.'^t referred tn cp/viallv in the wri'tf-n coritr.=5-~t a!* 



a part of the agreement, It is utu-rly worthlearf wliere inn>K-eiil tliird t)arlie8 

»re interctjted. . , . 

5. .Never eash a private cheque for a stranger, no matter what his 
•• Jitters of Introduction'- may lx>. The banks and brokers will look after 
a man who at'tually has iiioiifv in any bank in the world. 
101 Sample of Swindling Note. 

The form of swindling note shown on this pago-whlch is made by 
merely cutting off the righthaud end of wliat was supposed to bo simply 
an agreement to sell -x harrows, to be paid for after they were 3old-ia 
an old one. After the end is removed, it is a reg.uar promissory note 
wkich could b<^ sold to any person who know nothing of the swindle, and 
by being thus transferred to an innocent holder for value it would Ix- col- 
lected. The swimlle does not always take tliis form, but sometimes the 
note would be in tlie raid.lle of a sheet, and by cutting away the top Ix.ttom 
and sides a repilar form of note would l)e left. This illustration, however, 
is enough to jnit thoughtful persons on their guard against all similar torms 

of trickery. .... . , • 

It is seldom that such documents are necessary in legitimate business, 
and the attempt to use them should be received as a strong suspicion of 
fraud of some kind, so strong that thoy should not be signed. 

tnS.OO ToKOXTO, Fi^^uary ^Slh, 1910 

Six month.- afur aait I promi,t h. po-V M.^- Broun, ,^ ftrarfr, ,rhtn I .til iix harroxc, 

tht,umo/OifE HUNDRED ASDSEVESTYt'JVK DOLLARS u-h,n clU.teJ, to be 

payabk at Toronto, wilh .nttrt.t at oyht f,,r cent, ,-^r unnx^m ,f not r"i:d «■/..-. rfu,. 

IVltl. J. Simmons A-rm /or Jm. Broun. 

frunui: S. S. Smith 

102 Note that Prevents Fraud by Agents. 

The non-negotiable not« given in section 180 is the best protection that 
can be devised against the frauds and swindles that have caught even the 
shrewdest of men. in purchasing a machine or any line of gootls through 
an agent from a strange firm without om'onunity for a sufficient^ test, if 
a note is to l)e given, write out such a note as that. That kind of note is 
ralid and can be collected as ^vell as any other form, provided there is no 
fidud- but if there is fraud in connection with Uie transaction, it could 
not lie' collectf'd. T* is positively non-negotiable. 8o that the payee cannot 
tran'.fer it to an " inncK-e.-t holder for value" to be collected. It can be 
transferred bv assignment: but in that ease the purchaser does not get any 
better title t.'. it than had the original holder, hence the maker is safe. 



CliAi'lKi: IV. 

107 Guaranty and Suretyship. 

The kiuil of inoiui>f giviu bv ^w pcr.-^u U> another to an.-wcr for tho 
debt, default or misearriago of i third party that tlie ewrts will enforce 
was settled i)y that Statute of Fraud- and l\-juric? over three 
hundred year? airo. 

108 Verbal Recommendations 

Tlic rei.rescutation or as^uiauee made by one jxTiou eoneernin;;; the 
cLaraet.r, eonduet, or eredit of another by which such person obtains good* 
or eredit docs not bind .sueh person as a surety. (/;i/c« it is in writing. 
E.S.O., riuii). lft'>. Stv. 7. Tt is the same in all the Provin.-es. 

109 A Verbal Promise that Binds. 

ihere are oral or verbal promises to make good the debt (^f another 
which are binding in law. For iiidtanee: 

A porso" ^oes with his liired uuiii to a st+)re and says to the merehant. 
"Give this man goods (naming the amount), ami I will see it paid," or, 
"I will be. responsible." This is bind".- vhen given merely by word of 
mouth, if the sum doos not exceed the a for which an oral agreement 

is binding in that ?rovin<v. because it is ,.i...»ise to pay the debt himself, 
and nor auswering for the <lebt of another. Ii i< hU <iwn order, and he 
virtually tells the merchant Ut charge the goods t > him direct, which the 
merchant should do in sueh case, althoudi the are for the b^-nefit of 
the other party. Tt is a "valuable consi.lerafion." and makes the contract 
biudimr if the gK>ds are taken. 

.Vjrain. if .V were to go to B and say. " If you do not pres.s C for your 
claiurfor one month, at the end of that' time I will see that yon are paid." 
This would also be a direct promise by A to pay the debt, and would ther(- 
fore 1)0 binding without being put in writing. 

The extension of timo given is a "sufficient conMileration" to constitute 
S bin-liiiL' e..nt''.Ti-t. 

110 A Verbal Promise that Does Not Bind. 

But if instead of using the form of expression employed in the j»re- 
cedinir section, suppose he were to say to the merchant, "Give this man goods 
up to ("naming the amount), and if ho does not pay you by such a time 
(naming date). T will myself," or "send the bill to me." This would ha 
worthless spoken by word of mo\ith. because it is "answering fe- the debt 
or default of anotlier." and therefore utterly void unh^ss put in writing. 
Even if there were witnesses it would still be void, according to that famous 
"Statute of Frauds and Perjiiries." which has Wn good law since 1078. It 
leaves the debt on the other party, the guarantor only airreeing to pay in case 
th>' debtor fails to do s.o. F.very form of wording that may l)e used wlier<» 
this is tbo ifTn!. •; u'trTlv w^ ■! tldess, unless put in writing. 
114 Letters of Recommendation. 

Great care «honld be taken in the wordinff of a letter of reeommendation 
where financial obiin^ntions are (o !«■ ei-.ated or busines.s relation? formed, if 



nr.thin^ but a .imple r.<o,nnu.n.iatiou us nU.nded. All suoh P ';-";■ '[« 
,. ..J for ,Lc.m.' ,.r na.nii^: a oc-rtain .mount aud .ay.up. He ^f^l}^ 

afc, to that extent;- .,.., U" in writing, uonld ooustUute a f'-- - ^^J^ 
liability n.av be evade.! bv .n.>difvm>r such express., ,n by, 1 ^ould regard 

Z^as'safe^ for .ueh an amount, or -l .b nk you -"^f^^-^^^,^^ ^ 
giving; him credit" for .uch an amount, or, "1 would 'Tl]''\"u' 
fhink von rould trust him," or, "He has a ways pai.l -ue et*-. W ul, any 
l!;;Jm:.?ifv;n, pbra- . nuud, T;ay U^ >o the credit of a worthy p..r.>n 
without iH'ini: held as a surety. 

115 Guaranteein.? Debt already Incurred. 

In cuaranteein,' the pav,ne,>t of a debt ..Iready ineurred, tb^ Ruaran y 
must not'only be in tvritin',. but ther.- must be- a cons.drraUon, for ^raUnious 
promincn are not enftirceable in law. 

In can-sideraHon of O'w Dollar, the rrrripfof u-hh-h is h.n^hrj 

a^knou-Iedged. I vuaraniee thai ihe deU of ,^-^^/, "jf ^f^,, ^.^ 

Twcniii-five Dollar, now owing to Ja,nrs l-ors,jth Inj ll.nnj 

Johmio7i shall he paid at maturity. 

London. Au^. -Jth. li.lO. Wn uam .Tknn.nos. 

This „uarantee mijrbt b.. addressed to -Tames F.rsyth merely in tte form 
of a letter, and closed wMh "V.urs resp.vtfully," e,<-.. and bo jn-t a. bmd- 

''"'■ Another Form.-Tf Merc be a ronsideratianin-olved it is n<,t necessary 
to express it imhe piaranty, as (II. S. O. Chap. l->.„ Sec. S) : 

In consideration' of your shvrn., proceedings in the ^rtion you 

have commenced aqains* m the (name '>f rourt), of the 

countv of rec.rer the sum of dollars (or if you 

u-iU qrant an e.rtension o/ time to B to pay his anonnt as the case 
ma,ihr). I hereby guarantee to you that the amount, hywreky 

in.laln.ents of doVars (or other,ri.',e) shaH he Pf >''>'j 

the indehtedness is cancelled, and in default of jnywent of any 
one instalment T fnrlher aqree that the balance th n due shall t>c 
recoverable ariainst me upon 'his guaranty. 

^'''^'^'^'^•' '^'y'f '' ■ (r^i.jnature.) 

The stuyinc of ,.roccedim:s. or an extension of time, .vould be a .sii//i- 
cicnt corixid'ration. 
116 Guaranteeing Future Purchases. 

This is what would bo called a ".niitinuinp' puarantee": 

Bra:«-tfoki>, .Inly .")Ofh, 1010. 
/„ con.vderation of One Dollar, the receipt of which U hereby 
aclnowhdqed I herehii guarantee the payment of all g> ods jnir- 
eha.^ed hy'.Tohn Dillon'from Alfred Freeman during the rimamder 
of the year total amount of said purchase not to ercedUne 
Hurulred and Fifty Dollars. ^^^^^ ^ ^^^^^_ 



A ;riiaraiiiy of paymont for goods piirchaspfl "frnm ihi< Mate" would 
not cover goods piirenasod '^on that date." 

A guaranty of paymont for good-s »M liy a tirm to a jh'imou w..iild n..i 
holil ■lood for future jmrchasr if sucli tinii chaniipd it.-i pfrxoxncl witliont a 
rrnowal of tho guaranty. 

An agrpomcnt of guaranty niado with one person oannot he assiiined so 
as to civc tlio assignee the right of aetion against the guarantor. 

117 Guaranteeing Performance of Agreement. 

Guaranty of Perfo-.mance lo lx> indorsed on Leaae, Bond, or other written 
agreement : 

For vnhir rrcriied I herrhi/ rjuaranier to the bona fide ovnc.r 
of the within contract, his heirs or a.wtV/n.t, the full performance 
thereof on the part of "A B." together with all leqal rn^ts and ex- 
pe-n.oes in enforrinq such performance from "A B" and myself, or 
either of tis. 

Dated this day of 19 . 

Sif/ned. ( Seal. ) 

120 Guaranty of Payment of Money. 

For value received I hereby guarantee the payment on the part 
of (A B) of the sum of money contracted to he paid by him in the 
within contract and nt the times and the manner therein mentioned, 
together with all costs and expenses incurred in collecting the .tamo 
from (A B) and myself, or either of ii.<<. 

Dntrd the day of 19 

Signature. (Seal.) 
123 Form of Money Bond. 

Know fill men by tl) rrespnt.s, that I, A. B.. of am held and 

nrmly tjound unto C. D,, In the penal sura of of lawful money of Canada, to 

hf pnld to the said C. D.. or to his certain attorney, executo-^, adtninl.strators, or 
assigns, for whlrh payment well and truly to be made I bind myself, my heirs, execu- 
tors and administrators forever, firmly bv these presents. Sealed with my seal 
nafed this day of A. D. 19 

The condition of the al)Ove written bond or obligation Is such that If the 
above bounden A. B., his heirs, executors or administrators do and shall -well and 
truly pay or cause to be p.iUl unto the al)ove named C. D., his executors, adminis- 
trators or assi.Kns. the just and full sum of lawful money of Canada, 

with Interest thereon at the rate of per cent, per annum, on the days and 

times, and In the manner following, that Is to say: f State), without nnv deduction, 
defalcation or abatement whatsoever, then tlie said bond or obligation to be void; 
otherwise to be and remain In full force and virtue. 

Signed, sealed and delivered.! 

in the presence of , 

(Signature). .' 

(Signature and seal.) 

124 Creditor's Oblifiations to Guarantor. 

If tlie employee l)etrays his trust, or the debtor makes default in pnj- 
inriit. the creditor is required to: 

1. Give the guarantor notice of default wit.liin reasonable time after it is 
known, utijeaa the giiarantv waives the right of notice. 



2 Give tho pnarantur, as «x.n a^ bo has ma.lo ^r-<>'l 'l>t' dotault uU >.m 
righu against the .l.l.t.T, and if any property of the ,leht..r, or nthor collateral 
security is in his hands, turn it over fco the ^narantor. 

The LMiarantor. after niakinp good the default, takes the I'jace of the 
creditor, an.l may recover from tho debtor not only the original debt, but 
also all expenses and costs incurred. 
125 Discharge of Guarantor. 

Guaranties have been diviiled iuU) two classes: 

One when the "con;^ideration" is entire, a^ guaranteeing payment of a 
promissory note or the performance of the covenants m a lea.^e When 
such leasee"' is granted the guaranty runs on through the duratmn of the lease, 
anf^ would not he revoked by the death of the guarantor. 

The other is when the "consideration" passes at difleront times, and is 
therefore diiisible. as the guaranty of running account at a banking house 
or store. Such guaranty may be revoked by notice to that eilect, and would 
also be determined bv the death of the guarantor and notice of that event. 

Keepinir in view the aljove distinction it will readily be seen that any 
one of the following events or acts discharges tho guarantor: 

1. The expiration of the time, or the completion of the contract. 

2. Notice by the guarantor to the creditor if the "consideration" is 
divisible as stated alwve. 

:>, Death of the guarantor and notice of that event, if the consideration 
is divisible. As stated above, this could nx)t apply to a negotiable instrument 
not yet due. or to any contract the time for which to be execyted had not yet 

4 Anv alteration of the a{;reement without the knowledge; and eonsent 
of the guarantor operates as a discharge, even though the alteration may be 
for his benefit. 

5 In guaranteeing the fidelity of a clerk any change of employment 
from that for which his fidelity wa.^ guaranteed, would release the guarantor. 

6 An extension of time by valid agreement given by the creditor to the 
debtor on a negotiable instrument or other contract releases a surety or 
guarantor unless he give? hi^ consent. 

A mere voluntary extension of time would not release the surety, neither 
would a mere promise to extend the time, because the promise would not 
be le^allv binding. 

In order to be a discbarije to the surety, the agreement with the debtor 
must be one that binds the creditors to an c.iension of time for payment, so 
that they are prevented from proceeding against the debtor themselves during 
fliat time, and which orynsequently prevents tlie surety from exercising bis 
right of paying the creditors and suing the debtor upon the claim. 

7 Fraud, either in respect to the contract it.«elf; or some fraud or 
deception practised bv the creditor himself . or by the debtor with the credi- 
tor's eonsent. by which the surety was induced to guarantee the debt, releases 
the surety from bis nblitjiition. 



126 RevokiDg a Guaranty. 

A'o<tce o/ RevocatwH of Guaranty whore guch power cxista: 

^Vliercas, by a trritten agreement vj yuannUy dated the 

day of lU , / became nurety lu you for {^naiiu) vf (ad- 

dreiiii). I, the HHdersi(/ii.d {surely} in pursudiuc of a power fur 
that purpose reserved atul contained in the said aijreement (if thai 
were done), now (five you notiie that I hereby revoke and determine. 

the said aijreement from the day of nest eitsuitifi : and thai 

my lialilHty thrrriititlrr shall fram and after that, the said hist date, 
wholly cease an<l he determined. 

Dated the day of !!» . 

To (person to whom the guaranty waj* made). (Signature.) 

128 Rights Among Sureties. 

Wlicii ?.c,«'ral |(iT^iiii.> iiiiiif lu a sruaranty caoh one is re<]uired to con- 
tribiitf f'(]U!ill,v to the s a 'isf notion of the claim should the dihlor make de- 
fanlt. If ojie were found to he iu.siilvcnt the oth<Ts woidd U- Ixiurid t-) tx-ar 
the burden equally. Jn ea.-^e one paid the whole amount he could recover 
from his co-sureties tlieir e<juitablo share of the loss. 

This projiortional distribution of the liability holds unless there is an 
agreenieni uinoni: the s\ireiifs that changes it. if the last surety (as with 
indorsers on a note) were to add to his si<niature, '•surety the above 
names," or words of similar import, he would not Ix' a ro-siiniy, \nU would 
merely be liable in case the others fail. 

The respective liabilities aitioiifj indorsers on n tes and iiiveptances are 
piven in tlie chapter on fndor.s* inent, which sec. 

130 Merging Securities. 

Th<- hiiiher security merjjes the lower. Where one ]ierson would lie 
owinj; another on a bo«>k account or note, and then frives a mortjrap' for the 
same debt, the niortga^, beinj; under seal, is a hiphcr s<><'iirity. and thus the 
IxKik accotmt or note is inerjred into the mort!»age. hence would be no lonjrer 
bindinir. If there were an indor^er on the note he wouM be relieved. If it 
is desir< d that the niortf;af>;e slio\ild not merj;! the note, it mtist be stafcil in 
the niort^ajre that it is jriven as rollatrral security; then the note would .-till 
be bindinfj, and the payment of either one discbarges both. 

If a note contains a statement on its face that it was ^. en as collareral 
security it is not a promissory note, b\it merely a written jircmise, and is not 
nofrotiable, except by assignment. 

Wbere collateral recurity is given with a not<' the right to stich security 
ijiKs with the note, and may still be held, even aftc the note may be out- 



LUAl'Tiai V. 


135 Payments in Money. 

luliv-w otlurwisc t.iat4',|. every debt i* jm.vaM.- in inoncv. If in s^old. it 
iniwt Ix- in golil; if at a ct-rtain placo. it must U- ihon-; if f*> !»■ -X'nt hv l(»tt»>r 
or bv (>xj)roj9, it tnu.-t Ix' that way. If the direction-* arc cinii)!!^! with fully, 
even if the other party should fail to rei-eive the money, the debt i- paid 
nevertheless. Of <-ourse, the party must be able to prove that he actually sent 
the nioii.'v, and -n-iit it iicc.rdinir to at'rocincnt. 

136 Payments in Property. 

When the ajjreenient is such, any debt or contract may bo paid in fr'>'ids, 
or other ])ropertv, or in .xervice. If such articles are not tendered at the time 
and ])lace agreed upon, tlie debt Ueonies payable in money. Or if any prop- 
erty other tJinn the kind airrc<-d tijion is tendiTed. it may be refiis<^'d. an 1 the 
debt eolhvted iu money. (See "Clialtel Notes." I 

137 Payments by Negotiable Paper. 

A |iromi^*>ry note or ueeeptance Unm.' merely a proiiuxi' Ut pay, is not 
an absolut<- payment; and if it is not |i:iid at maturity the debtstands the 
same as before. Tlie ease is different, however, ''f tlie note of athird partyis 
friven in payment for p'>ods or on a debt. For instance, .lones iriviw Smith a 
note he held against I' in (layment for iroo<ls ..r mi a ilelit. This ii,>te 
pays the debt. Of curse, if .Tones indorsed the note, so as t.o make him.self 
liable when he transferred it. then Smitli can proceed aarainM him as surety 
on the note, but not for tin- oriirin^il debt. 

138 Counterfeit Money, or Forged Paper. 

Counterfeit money, a forced note or cheque sriven and received in <roo,l 
faith does not dis<-har£re a debt. Ttie jierson receivinir either must return it 
U^ the jiartv who paid it to him v,-iihin reasonable time. The debt still re- 
main-, and itiav be eollected as thomrh no such pavment had Iweii made. 

139 Whom to Pay. 

I'avments should always be made to the person mentioned in the con- 
tract, unless it be a nesotiable instrument, then to the hohjpr nnhj. Never 
pay a note unless von pet the note back or the party can prove its los^. Tf no 
other person is mentioned, then payment must be to the creditor himself, or 
his lejipl representative, such as an a^ent. e.xeeutor. attorney, etc. Care must 
be exer< Ised when making payment to his representative that said partv is 
authorized to receive the money. 
i4c Presumption of Payment. 

A note, acceptance, due bill, or receipt in the hands of a debtor is pre- 
sumptive evidence that the debt has l>een paid and will so be held unless there 
is positive evidence to the contrary. Tf tliere has been ,i irreat l.npse of time 
without anv demand beinrr made the presumption is that the debt has been 
paid, hence the Statute of TJmitations T which seeV 
141 Application of Payments 

The person mnkinrr the payment has iiie njjiii io niaKe iCe appi'e^anon. 

30 PAYMhHrU. 

Where a debtor owes uwre tliau oiio Jobt to the suim- creditor, and they are 
all due, the debtor has the right to say on wliich debt the payment shall be 
applied, if the debtor doc* not say on which debt it shotild bo placed, then 
the creditor niav appiv it as lie may desire. When neither debtor n<.r creditor 
tnakcH the iippl'iciitioii, but credit 'is merely H'ven for the rtwij)! of ao much 
money, in ease the business' matters were lettleil in court, the c.)urt would 
applv the payment on the debt that is considered the most burdensome to the 
debtor. If the debts were a b>ok account, an indorsed note, a chattel mort- 
g&go. and a jiid(.nnent. the court would apply it on the judpnent. If the debt 
were a bo<,l< account only, the court in applying the payment would In'pn 
with the items li>nL'e«t standiuir. 

142 CompromiBC Settlement. 

A di-pnted chiim mav he paid by any sum where there is an agreement 
to accept su<di sum in .-atisfacti^.n for'the claim. The agreement should Ik- in 
writing, or have a witness. ".Vccord" an<l "satisfaction" are terms used in 
eettlemei.t of disputed claims liy compromise. 

143 Tender of Payment. . . 
A i(<jal lender i.s the attempted performance of a contract, whether it iB 

to do sunutliiiui or to pa,/ somelhinfj. If payable in goods, then goc^ls of 
that kind and quality must Ik- .dTcred at the exact place and time called for in 
the contract. If payment in money, it must be in the lawful money of the 

country, if that is demanded. .\ creditor cannot be f,.r 1 i. . a<-cept a cheque 

as pavment. 

Tlie refusal to accejit part payment on a note or debt does not attect the 
debt in anv wav. The refusal to" accept payment tendered in full does not 
cancel the debt, but is usually a bar to all interest and expense ihrTi-aftcr. 

A tender of |)ayment if coupled with a condition as for a receipt in full 
or for the cancellation of a certain document is not good. 

144 Money that is Legal Tender. 

Ju C au;i.ia ■ur < atKidiaii ,-..ppcr Coins are legal tender for the payment 
of a debt up to twenty-tive cents; Canadian silver for $10 ; Dominion of Can- 
ada notes, British gohl sovereigns, half-sovereigns and any muliiples of the 
sovereign (at $4.S'i 2-:i each), and United States eagles and half-eagles and 
any multiple* of the eagle, for any amount. 

Mutilated coin is not legal tender, even when the mutilation <loes not 
lessen the weight of the coin, as a stamped name or w a\l on it. 

There is no provision in Canada for the redemption of mutilated silver 
c/)in, hut coin worn smooth or thin by use is redeemable at office of Receiver 

General. . 

The uttering of mutilated coin is a cr-minal offence. 

145 'Without Prejudice"— It3 Legal i'nrce. 

I'he two wor.K. -without prejudice," iiave great importance when used in 
a legal sense This use can be best shown by an illustration, e.g. : Two per- 
son" are at variance und likelv to be drawn into court, but the one desires 
amicable settlement, and is willing to make any reasonable concession toeffect 
it He therefore, takes these two words, without prejudice, and writes them 
across the upper left-hand corner of his letter, or in the body of the letter, and 
ft,„„ rr,ul-^« bis proposition, whatever it might be. The efFfvt of those word*, 
is that if tlie <.ther partv should not accept 'he proposition and terms thus 

NK<H>TIAU1.K rAl-l 


ulf. red, but tlif ctta.; k'"** ^ =*""' ^'^^ ^*^"*'' cauiiol I* u*ed in court as ovidence 
aguiu(-t the writer, lleuoj, by i siug tbeue woriL) in lluit way a p*!r*>ii who 
winLus to avuitl litigutiou may sa.uly make advances to Hrciiro a pcucffiil sol- 
lUiiiciil, anil if not siuveasful Lis .•asu is not jeopardized. A couveuient form 
at the beginning of tlie letter wouit' be hiinilar to tbe following: 

Uear Sir: "Wuhuut prtjuiUce" 1 Uereby make yuu the follow- 
ing proposition, etc. 

Also, a debtor who may be taking the benedt of the Statute of Limi- 
tations may, by using theso words, frankly aekni.wledge the justieo of the 
<luim against him, and luisnre his ere litor that he will still pay him, or may 
even pay money to liini, without reviv.'ig the leijal tiabiliti/. Also in offering 
to make paynitnt on a dispiitc'd acvoi.ut or claim by way of a compromise, 
these words prevent the ot!'ei- being h. Id to be an acknowledgment of the 
claim. Every man should be familiar vith their use, and make use of them 
whenever (K-caoion renuires, inr^tead of t UHiitiir to the other party's honor. 



160 Negotiable Paper. 

M((juUiiblf paper includes those instr iments in n.'ie in eomnumity 
which pass freely from one person to anothe • by siinplo delivery or liy in- 
dorsement, and are payable in money only. Tiose which are transferable by 
•iinple delivery are written payable to a ccrtan person, firm or corporation, 
or hearer; and those which are transferable by indorsement arc written pay- 
able to a certain person, firm or corporation, o" order, and require to have 
the payee's name written across the back ti \>o t, ansferred. 

The paper must be properly signed and de irerrd in order to l)e valid. 
A promissory note, draft or cheque signed and complete in form is not a 
contract until it is delivered, and if stolen at thit stage and sold, even an 
inno<'ent fnirchaser for value would not get a gocd title, so as to collect it. 
It is like fortred paper. 

The instruments classed under Ne,?otiaWe Pa ler are pmmis.sory notes, 
acceptances, bank notes and cheques, but besides tin <e are also the following, 
which are negotiable by indorsement: Warehouse TVeceipts, Bills of Lading 
and Coupon Tionds. Donunion notes are not ela -sed among negotiable 
instruments, because the Dominion of Ca.nada cannot be held to be a person 
&a a chartered bank woidd be. Bonds, mortgages, agreements for the sale 
of real estate, leases, ehattel notes, etc., are negotiabe by asxignmeni, and 
the purchaser can enforce the contract to rlie same otcnt that the orisrinal 
owner could if he had not transferred them, but they a-e not called "negoti- 
able in.'struments." 
151 Prcjnissory Notes. 



mim of muney at a upecqud Um, ..,■ ..i, ilie liupjK.'umj,' of a ctrlatn event. 
TLrw .•a.scnt-iul^-Luci.nditioual, moniy oiily, time ivruiii, a* follows: 

1. Tb.Tu imisl 1k! no mwUhon oxpn',-,sc.l. if there U) a condition 
expressed in the uote, it« eliara.'ter a.-* a i.roiiiirt...ry uoto is de*'d and 
it U-c.uie;* nothing but a writu-u a>rrcenieut, binding on both pariiou, bii' not 

neuotiablt), except bv aHHipuni'"'- • » j 

Any condition add.-d. a^ "this note is hel.l as collateral security, de- 
stroys it as a neurit iahlc instninitiit. 

"2. It mnst be [.ayabie in money. If it is made payable in anything 
except money it« negotiability is destroyed and it i-* callcMl :i CliMticl Note 
(which see). 

;i. It must Ix' matle pavable at some sperified tnne or on tlie liappenmL' 
of a certain event. If ni;i(le"pay!>hlc so many days or months after the death 
of a certain [x-rson it would In- as valid as if ma.lo payable after date, as they 
are UBually drawn. Ix'cause it is an event certain to .vcur. although the time 
of hiipiieiiinir i- nncertniii. 

152 Parties to a Note. 

At the iiiceiiiiun of a contract by j>roiiii.ssory note the parties t-> the note 
are viaker and payer, and o^Tasionally an ind..rscr. After its transfer oUier 
parties become interested, and the holder takes the j.lace of the payee. If 
the orifrinal payee in transferr in.lor<e. it in tln^ usual way. he becomes 
surety for sul>s(M)ui'iit holders. 

153 Defective Title by Holder. 

In particular the lith of a person who ne>;otiates a hill or note is de- 
fective within the meaning of the Act, when he obtained the note or accept- 
ance, or the acceptance of the bill by fraud, dure.s.'i. or /one an.l fear, or other 
unlawful means, or for an illegal ronsideration ; or when he negotiates it in 
l.rca<'li •<( f.iitli, "r under ^iieli circunistances as anioiuit to fraud. 
155 The Place of Payment. 

1 ! ii ir>' o.-i ry to th' volidity of a note to mention m it any place of 
payment ; hut it is arsirable. for various reasons, that it .should be done. The 
maker woul.l then know where to find it at maturity. Also, if there is an 
indorser on the note, it is better for the holder if ii is made payable at n cer- 
tain place, as he would have less ditti.'ulty in makinir the Iq/al presentment 
Te-juired in order to hold the indorser. 

If no idace of payment is mentioned in the note it is i)ayal)le when 
made and the hf.lder isunder no letral obligation to present it for payment at 
maturity; it is the makerV duty to find his note and pay it. and if he does 
not do .io, the note may he sued the next day, or be allowed to run on and 
draw interest. 
156 Signatures to Notes, 

\ per-Mi, iiee.l u< ■[ siffn his own name to a note with his own haml, but 
it is sufficient if his .sipnature is written th-re..,, l.v otlvr i>er*m, l.v or 

under his authority. . . . , , 1 1 

\ trade name, or assumed name, even tnitiaU or a sl'imp would answer 

where it is clear that the parties intended to adopt them as their siimature. 
\ note or accept.ince drawn or signed with lead pencil would be valid ; 

.o would an indorsement in pencil l>e binding: but no per.son of ordn.ary 

prudence wonM use a pencil, as it can t>e t-x> easily erased and .-hdngCs .ua---. 






;;;::,r:i",r';;^ri;;:.r;;:;;:L^;,::vi;... .;..».■«.»...» 

lii.H name. 

Signature to note by a,,cnt ,l.«t h.n.l. the nriuoi,ul an,l ,.,. a. a.-nt: 

James Fitzgerald, 

by .1. \V. Smith. 


The following signature w.uld bin.l the a^ent and not th. ,.rhui,>al : 

J. W. Smith. 
Agent for James Fitzgerald, 

A corporation signature that bind, the company and not the otlieer 
signing the note: 

Ti.e Stan.lard Fttel Company. U.n. ted. ^^.^^ 


The common error i^: 

J W. Smith, , ,, , , 

Troa:*urer Standard I- ml ( o., Kt<l. 

160 Value Received. . ,i :„ » nromi^sorv note, but they are not 

r/i/cn/ indorsera. 



■r^Sot rr.:°iMt ,. ,., »„.. .... .o,,™,. „. ,.... 

""^l^^vtMinl rnr,l.kcr » i».o. « ,ho rf,.».ur. of one 
„f tho joint makors , j, . ri.i.l. O.ff.i;. 131 MM«. 




waji jjuvab (> n rx)n(lon Vn^ „„i 1.7 ■' (l^^O). T.iis note 

HK^t fo tl,o use of the wor,I "I imi^ l" . , T, '^T'"'"''' ""* ""'.^ in re- 
8. CLan..-n, "order"' t.! '1kZ?' '" "" "" '"''''' '^'^'^^''■ 

162 Defects Which Do Not Invalidate. 

mistake'^;;; S.Imla^" ulat X Z'^ f ' ''-'f ^ ^''''^' "^ «>«* '^ ^^ Jated by 

either forward or lack ad If X T ' " V ^'•^'^'"- ^* ">i"l't bo dared 
note or draft, the Lid JtouSl 1^ ll"'"".^''' " • *^'^^" ^^■"■•" "'"-"' "'^ '^ 
am>rdingtotheintf.n ilof ' ^^^^-'S't to insert the proj^.r date, 

(See. 2?!^ ]5. of E Ae,) ' ' '""' '^' instmna-nt Jas niade! 

164 Days of Grace. 

those <ir;;:;^;,i^:x:^'tJTlr ^" ":;*^^ ?•' ^-^-p^--' -ept 

have ch«,uJ. Vv L'e frTc^;!;''^ '"'''■'; T '^"^'^ °^ ^'^'^'^ ^^•^^•^^' ^«'^l^^r 
would hal three dai'lojy'ee' P"'"*^'"' ' ""•'=''" """^- ''^■'-- ^'--'"^ 

all.,woS. ""'"'"'"''"' -"''' ^"^'""'' ^'^''^ <l-ft. have no day. .f ^race 

1C5 Maturity of Notes and Acceptances 

on wiK;:^;X':S' '"i' •- 'r "''^;' ''-^ -^ ^-- ^^ ••- 

business h.urs of ^t aTd' v If nt^f '"/' V '"f"^-"' "'^^' '""^ ^ -i"^' '^- 
bankin^^ hours. '" ^ '''^'' '""^ ^ ^='"'^- ^'^ "'"^^ bo paid duriuj. 

not included, but L.nfent Tlit^:^^:^!:''^^,^''''. '' '''''■' '? 

ca«eitwouidbethofir:;bSor!;;:;S:.X" ^^■"•" '^ ^"■-'''>-' ■» -!'->■ 

matunn, o„ nn^^o-'jj.r /..iS:;- fihe ty E'^'"^ ^"-^ •'-•- '- 
166 Accommodation Paper. 

ii>e n<i; r^;:;;;;t;';he';i;zirr::;;ho;'^"'^ -■''''•'^ ^'-^ ^t-° ^'^""^ 

but morolv for ho pnr,,o. of lin din" ' ""''"""^ •'"■^ '"'''"" '^^"'f'"-. 

accnnnodation par,' ,lX r'n L 'If T"'' '" '"'"' "*^'" P'^''-^""- ^be 

whotbor ..u.h holler who n h t^k ho n^e '""'"' '? """ ^'^''''- ^'^'^ ^•''''- 
to be an accommodation V^'; T;:J'' ^Xl^'^Ts:. ^ ''''' ^"^^^ 




Thn person for wIk^ii the acconiiiiodation imrty sipjnrd thn pa; " could 
not collfi't it. A note, however, jriveii a tinu iu considiTation that they do not 
SMC a brother has been lieM to b*.' valid. (Crers v. Hunter, 1!) Q.B. D. 341.) 
168 Payment of Notes. 

Payiueul of negotiable paper of any kind should never l)e made exeept 
to the a<'tiial bolder of the ])aper wha has it in hi.s uosse.ssion to deliver over, 
aii<l who does deliver it over upon receipt of the payment. Payment even 
to the supposed bolder who has not the note to deliver over is not redecmiinj 
the note, but is simply plaein;^ that nnieh money in his hands and trusting 
to his honor to apply it to the note. The n)te, however, may have been 
transferred and the holder eoiild eoHeet it ov<a- again, or it may be in a bank 
under <liseount, and would have t.) be paid to the bank. 

_ Paying inoney to an arjcnt of a firm who has not the note to hand over 
is simply trusting to the honesty of the agent. His receipt would be worth- 
less as a set-off if the agent kept the money and the firm sued on the note. 

170 Cancelling Signatures. 

^\ hcu a uuic i; [jaui the name should never be torn off, as is sometimes 
done, but simply draw one or two lines through the signature of both maker 
ai'd indorser, or k-tter still, have a stencil stamp and punch out the letters 
paid, and tile the note aw.iy as a voucher. There is the same necessity for 
preserving a rrrh'cmcd note as there is for a receipt. 

171 Surety vs. Indorser. 

Tile obliga. on.- t,t a person who signs a note on its face as a surely are 
the same to the public as that of the maker, and he has the same defences that 
the maker has. 

W hen a person sisins his name on the face of a note, as surety, he should 
put the word surety after his name, so that if any complications should arise 
in the future b<'tween the maker and the surety, or between either one and the 
estate or heirs of the other, the paper itself would declare whose debt it was. 

If be puts his name on the back of the note he is an indorser .mly, and 
the holder of the note must meet the requirements of the law in reirard to 
presenting the note for payment, otherwise his liability ceases. But if he 
writes his name on the face with that of the maker, he is not a surety only, 
but l->e(>oiiies one of the makers, and is, therefore, held for payment, whether 
tlic holder presents the note for payment or not. 

172 Note Obtained by Fraud. 

A iioi,-,,|,iaiiied liy fraud is ruid in the bands of the original holder, if the 
maker can prove the fact of fraud or misrepres(>ntation, but if it has been 
transferred to another person before maturity, who gives full value for it 
and does not know of the fraud, then this third party will collect it. Xo 
•lifference what the fraud may have been, or deception, this innocent holder 
for value lias ri gond title and will colW't it. 

173 Forged Negotiable Paper. 

A forged note, acceptance or cheque is void and cannot be collected under 
any circr instances from the parties whose names are forged. But a forced 
note or -lieque in the hands of a ''holder in due course" could be collec'ted 
from anv Innn fidr rr^don^er on the paaper ; likewise the hona fide acceptor of 
a forged draft woidd be liable to a ''holder in due course." 


175 Individual Prcniissory Note. 

An individual is one sijrnpd bv ..niv .,np 

not n p'.iiiiiaiiv. i,r a 

iiriii TiiiHip. 

no person as maker, and that 

/ trii 


- - ^ ^^ 

StoxJrn "'Th "•"''' '' l'"-'""^>| 1" i"' f^neu by ,)„lm duuc. ,o ] lu. i'ro^iuciai 
t) r, ' ' '" '^^'"'r'-'"^ "t »«'"""t. l^'t of writing, it Muvablo to 

^Dd fs ho". !i^"r' , ^^" '^ " ^'""^"'"" I"-^''^'^'^ ^^''^ manufacturer, 

and ,. the ^amc m eiiec .. drawing a draft on the debtor and nukin^^ it ,,av. 
.be t,. the bank; but the paper not be endorsed h.^rc its deUverv to 
the bank and receives the mdorscment of the bank as payee. In this case if 
the Co.npa„y were to endorse the note k^fore it haci received the e.Z. - 
ment of the 6a«.- the Company .ould not be liable for pavn,ent. Thi w s 
detjn.tely settled by the Divisional Court in the case of'tlle C^Llia 1^ 
of Coininercp V. Perrani ns-iS) 31 Q K 11(5 <<",. 

177 Joint and Several Note. ' • • 

A joint and several noie is one sijnied by two or more i>ersons who thus 
proniise to pay either ointly or, if necoss.ry! The;e aie se^ 

b pa^ or We jomtly and severally promise to pay," and .^isned bv two „•.■ 

in ere-ted. ,t beimr an "I promise" for each one. The lat'er for.n is prefer- 
able, because shorter. i ■< ^ r 

, •, -^"^ 

nn 1 }^\?\ '^[^^■^ J"'°'/.'^J ^'^^-er.-*! note each is liable for the whole amount, 
and .f the holder found it necessary to sue in order to recover pav „e„t, h. 




could pnx'ced ajrainsi both at onco, or apiinst eithi'r oiio, just as lie thought 
bt-st. If he SUCH one and collecled the whole amount from him, then that 
one, if tliipry were equally interested, cnuld sue and eullcct. half frnm the other, 
iuehidinir half of the eosts of the previous suit. I'.ut if the party who paid 
the note lia])[>ened to k' a nu?re surety for the other, he wouM ('cllict tlie 
whole a nount from the other party who received the value. 
178 Joint Promissory Note. 

.\. joint iinti- i^ wriitiii "we promise tn T)ay," or '"we jnintly promise to 
jiay," and sii;iie(l hy two or more persons, who are not pnrlniTs. 





5j;fi ^c r^/ir' t^'c/n /i/L\fy I — rt-tea cfy, y^z-etty ;^-<v/XL^-g___ 

In tie above form both parties are sup[)Osed to have received value and 
agree to pay it jointly. If it should become necessary to sue in order to 
collect it. the parties must be sued jointly. If, however, one of the parties 
left the country and his address could not be ascertained .so as to serve him, 
he may 1k' sen"e(l suhstilufiondlb/. That is done by obtainini; ati order from 
the County Judcc to serve another member of the family, or otherwise as i.e 
may direct. Suit cauld then proceed airainst the other rtv. 

In the Province of Quebi-c. where the French law governs contracts, 
each one of the joint nuikers of this note is liable for half the amount only. 

But in all the other Canadian provinc*^ where tlu' Enjrlish law iroverns 
contracts rhe preponderance i^f legal opinion seems to be that the liability is 
"joint and several," and that the whole amount may l)e <ollected from either 
party. Although the Bills of Exchanire .\ct. Section 170, reads. "\ promis- 
sory note mny be made by two or more makers, and they may Ix- liable thereon 
jointly, or jointlv and severallv, according to its tenor," yet according to 'Wo- 
Laren. pagi^ ill of 1000 edition, ainl in Cook v, Podils, L. TJ. 00*^, either 
party is liable fir the whole aiuonnt. except in the T'rovince of Quebec. 

179 Partnership Pron^issory Note. 

A [>artiicr^liip note is usnallv written "irr" promise to pay. but in that 
case it is not in fact n ji>int note, although it has that form, but is a joint and 
!>everal note. Although three or four may sign, each member of the partacr- 
ship IS individually liable for pavment of the whole note on account of the 
partnership hiw-^. In su'cg a partnership note or account the firm name must 
be n.sed. 

180 Non Negotiable Notes. 

Xon-uegotiiilile Tiote< ;ire given for a specific purpose and inn~t conform 
in wording to the I'ills of Kxchange Act in order n^it to be held as negoti- 



able instruments. Tht-y are ina.lo payable to a certain person, firm or cor- 

by urifm.!; tlie word onh, nft^r the nauM- of the j.avce 

biinply mark.n^r on- ,-„rd order or bearer tVom the printed blanks is 

Ja ah il,;/'! " '"'''■ , " "«-»"fc">ti"blo. Before iJoo such a no e 

ZrH P^'\"f^'**r " ?""'«»''"• I"'"«,, but whi..h does not contain adJuional 
word prolulnhug transfer is still nepotiabic, notwithstanding the w„rds 

omission, he same as f„r:retting to date the bill, which any holder J. ,u Id 
subsequently u,>ert. Hence to n.ake the hill n.m-ne.otiable it is ateol !lv 
neces.sary ... |,„t the won] •' only " after the name of the payee. 


on/>^. ,.f (Tfi* Bank of aioo.t Scotin, /.,.,. //, ^..„, ,/ 

faitic frrrnrt/. (/a 

y. ^ Jmi/h 

A n.,te or bill n,ay be transferivd bv a^sirmment the s,me 

as a bo„k acvonnt or due l,il]. The party who purchases .^,ch a no e tS 

t snbec to all the deftx-ts a.ul ,..,„ities that tnav burden it. and in ,' 

res,.ec obtains any l>etter title than the ..ri,Wnal owner pos.e. ed If no 

payable on di>nian,i. they have three davs of irrnce «• n not 

The n.aterial distinctions between a nc.godable instrument and a non- 
negotiable instrument are: 

1. The mMker of a non-negotiable instrument who has a,rreed to nay 
rnn.nj.r ,,roprrl!> under it has a right when the mnnev or propmJ"^ 
1-u.ande.l e.ther by the origi.u.l payee or a purchaser of the n.t'runen 
to a set-off aga,n.t U for any elai.ns that he has a..unst the ori.ina! nZZ' 
T^u m a negotiable instrument the hnru, fUlr purchaser for vabic before 
maturity can enforce paytn.nit for the full amount against the maker with- 
out rc.^ard to any counter-claims or defence that the maker mi^ht have 
against the original owner. ^ 

2. .\n indorser of a non-negotiable instrunrnt is not liable for pa.-ment 
181 Patent Right Notes. 

_ Any „oic_,.r ar.<.,,ian.e giv.-n for a paieut, right, or for anv interest 
m a patent right, nrust have legibly written or printed across tlie faoc> of 
It, lK>fo_re the instrument is issued, the words: "Given for a Patent Ri^ht " 
.\nd without .uch words there >n, the instrument,, or anv renewal of Tt ia 
void, unless in 'he hands of a holder in due course. (•Sec.'l4 13 of Fx \ot ^ 
Any |„.rson wlm in.entionaii v transfers a note or aecptance wh"i,-h he 



knows is f.'ivon for a patptit ripht, or for an intcrost in a patont rif;ht,, and 
is not thu.s marked, is liai)le to !i tine not t-xcwdinfr $:iO(), or one year's 
iiiiprisfininrnt. (Sec. 16 B. of Ex. Act.) 

The purchaser of a patent riphv, note or acceptance that is (hus marked 
roceivca no better title than tiie orifrinal owiier possessed. Ilenoc, if the 
instrument is affected with fraud or any ille,<:ality, the mere transference 
does not relieve it in the hands of an inn(icent holder for value. (Sec. 15 
1!. of Ex. Act.) 

182 Notes by Married Women. 

Ill r;uli I'liA iii.r iiiairiid women may now conir"! their own separate} 
estate, and enter into contracts indei>cndently of their husbands ; hence in 
sifrning a note or other contract they should use their own Christian name, aa 
"Sara A. Jones," instead of "Mrs. J. W. Jones," as in following form: 

$50.00. OsiiAWA. March ;5rd. 1910. 

Thirty daya aftrr date I promise to pay lle^.ry Alexander, or 

order, Fifty Dolhirfi. of the Dominion Bank here, for value 

received. Saiia A. Jones. 

Where a money order nr a bill is payable to the ord(>r of a married 
woman, thus: "ilrs. J. W. Jones." the proper mode of iudorsenient is to 
indorse the bill as she is descrilK'd. " ^Irs. J. W. Jones," then add her own 
proper sisrnature. " Sara \. Jones," under it. The same fi>rm of signature 
would be used in accepting a draft drawn on a married woman, as ''Mrs. 
W. n. Stevens." 

183 Notes Restricting Place of Payment. 

The form shown lu-re is a ji'im and several note restrict ii.'g the place of 
payment, so that if it is not ])res<^nted at the place stipulated, on tlie date 
of maturity, no cost or expense will be incurred until after it has btPQ 

'«u^^ //A 

'CV-U /i, /f/if- 

/^AV//' UY^f !•/:</ 

presented. The makers cuntraet to jiay tliis ni>te on June 10, llilO, and 
the three days of grace being added, June 115th becomes the due date. If 
the note is not presented at the bank on .inne l^Jth. the indorscrs are free, 
if there are indorsers on if. 

Hut if there is no iu'lnr-er on the paper that the payee desires to hold 



liahlo for i>:iviiunt. he noed not |ircst'nt it (Ui tht- due ilatf, for tlic osuisflioD 
to pmsont the note for payment on such dat<.> does not discharfrt- the makers. 

It iji the duty of the makers to have the money at sncli plaee to meet 
it and if it i.« not j)resfnted the money sliould be left tliere until it is pre- 
sentc'. and if any >iiit were instituted thereon before it« ^ircsentation no 
casts wuuld \»' Md'.I-d. V.mV ..f TntKidn v. Trpndor-on, 2S; Ont., "R. »60 

If the nntc wiTi' p:iyMl)li' at any ntiicr idacc, a t<ii<iiT .>t the inmiey at 
sueli place would also lie a bar to any subsetpunt costs, and jirobably to 
interest after maturity. 

The Statute say that in such eases the qiiestion of costs and subsequent 
interest is left to tine discretion of the ciiurt, but no judjre, except nnder 
peculiar circumstnnces, would allow costs in a case of that nature, and but 
very few would allow interest after mattirity. 

184 Lost Bills and Notes. 

Whuri a umIc or acce]iianee has Iktu lost the debt is not thereby can- 
celled. If it was lost before maturity the jKTson who was the holder may 
aj)ply to the maker or acceptor to ■rive him another of the same tenor, fjiv- 
intr him security to indemnify hiiu atraiiist all persons in case the lost bill 
should be found airain. and if not paid when due a e >py inay U' i)rotested. 
Bills i>f F.xchanire .\ct. Sections l."i»> and l."»7. 

If no tender of indenmity were offered before action would l>e taken to 
collect it, the plaintiff would very seldam 1*' allowed his crsts, and would 
probably be ordered to pay the costs of the defendant. 

The lost instrument is usually advertised as a warning to the public not 
to it, but such advertisement would not prevent an innocent 
holder for value from coliectiTis: it, that is, a person who purcliase<l it with- 
out knowinjr of the l( or a<lvertisement. 

Any person findinir such an instrument and attemptinsr to conceal it. or 
neirotiate it instead of tryintr to Hud the ,^wner. is liable on a charjre for 
larceny or theft. 

185 Retaining Same Interest After Maturity. 

I'lie f..r;ii -linwn lier,- rehiiii- the -aine rate of interest after maturity 

s 'MJ^/:^ 




^ //i/^Ma^^^^.J/d' s /?/^ 

^//c'lif^ii'.'iTni\i\ii,iuluiflL".\ii.u't.i. ^Jzy-u: •f?/'// ^fr^z/'fr/ 

/ifV///>tff'lCJ/ n/^^/i/)^ /Iff Ci-tt./ /l-'-t-' '^■^■'■'^^^■'■'^ ■*^^-^'^^y'^t*er- 

that it 
five per 

Ty.rc before. The jco^al rat^ of intvrest in Canada at pn-scnt is 
cent., but any rate can be collected that a person legally agrees to 



jmy. A note drawn for a higher ru.j than five per cent., if not paid at 
maturity will tbcn dmp to five, and if drawing less than tivo it will rise 
to live unless it cxprc^.sly stipulati's the i-ontrary, in citlier cast. 

The usual way in which this is attcnij)tcd to be done, by wrilinj: iin- 
luediately after the rate nf interest the words "until paid," is not sulHcient. 
The courts rule thi.t that simply means at maturity, for that is tlie time 
when the instrument is contracted to bi' paid. 

To make the rate named in the note bindintr after maturity, words like 
the followinji must be used, "with interest at (the rate desire.l) iintil 
maturity, and thereafter at the <:\uu- rat., until paid/' or "b<itli k-fore and 
after maturity until paid." 

\ note drawn "with inte-.-r ;it, -ay, mir per cent, per month would 
legally draw onlv live per e«^nt. unless the rate per annum was also stated. 
St. John i;. Rykcrt, 10 S.C.R. 278. 

Another mistake sometimes made is in naming' a hisrher rat.' of interest 
after maturity if the note is not paid when due. as, for insta'-.-e, "at bve 
per cent, until maturity and ten per cent, thereafter, if not pai nt matur- 
ity." In this case only tiye per cent, could lie collected. Inereasi ue rate 
thus after maturity is' illeiral. It is o' the nature of a fine, ami ti. .-e is no 
authority except a court that can indict a penalty. Section 7, Chap. 127 

1' S C 

Section provides that if anv sum is paid on a mui* ..f such penalty 

it niav bo recovered back. 

\ note, however. <'ould read. say. "with interest at i.ii per cent, both 
before and after maturity until i-aid, but if paid at maturity five per cent, 
will lie accepted." This wordin<r would hold frood and does not have the 
appearniiro ..f a ponalty for an anticipated .l-fanb as does the other wording. 

187 Chattel Notes. 

Xotes i)ayable in iiiercliandise iiKtead of ui.aiey are called chattel 
notes? Thev are not nearotiable, even if the word bearer or order shoidil be 
inserted, but they may be transferred by assignment the same as a due bill 
or book account. Folknviiijj is one form: 

BuANTFuKi). July 2'.tth. I'JIO. 
Five months after date I promise to paij James Smith, at his 
'tore One Hundred Barrels of qood Baldwin Apples at market 
_ rice's J- '^^'- '^^'•^T'^'^- 

The price per barrel midit be nanuMl. as at .$2.00 per barrel if the 
price had been agreed upon. 

If the i>arty aiviiij; such a note does not tender the articles at the time 
and place mentioned in"the note, the holder mnv sue; and if payment in the 
chattel is not made, the amount becomes payable in money. If the articles 
are cumbersome and he offers to deliver them, it will lie sufficient. If the 
payee refu-es to receive tliem the debt is disoharired bv the ten<ler of the 
articles, accordini: to the directions in the note, but the property in the 
articles tendered passes to the panee. If. therefore, the debtor should be 
compelled to take the goods home asrain. he becomes the bailee for the payee, 
a-d must give them ordinary care, but at the risk and expenst^ of the payee. 
If at any time afterwards the creditor requests their delivery, they muat be 



delivered up if the exf)on-ies that innv have Ik'oii ineiirreci as carfa<re. stcrapo 
instiraneo. etc.. are pai<). If perishable poods, like strawberries, they should 
be aolil and nuncy retained. 
188 Notes as Collateral Security. 

It otteu ,)L_-ms that a p,r.s.)ii wi-hes to borrow njonev on his own note 
where security would bo, and y.-t mav not wish to jrive an in- 
rtorser but he lias shares in some st<H-k companv or bank, or has a mort- 
gage which he culd place with the credit ■ as' collateral and ihus -ecure 
nun. In sueh case the foll,,winjr note woul.i be in order: 

'^-^^':^-00. DI-X.NVII.I.E. Mav lotli. II.IO. 

'Jlirce montha after dale, for raliii- received. I prowi.fe (o pay 
n m. Braund. or order, at the Hank- of Commerce, here. Tiro Hun- 
dred Dollars, with inleresl at .si.r per cent. 

J/<!vlnf, drp„s!le,l Willi llie .^„id Win. Ihainid si.r sliarr.i in llic 
Onlario Xnvir/alwn Co.. Limited, I authorize him upon the non- 
perf„niuime oj thi.'i promise al walurily to sell Ihem. eith-er at 
public or private sale, wilhoul dematndim/ pai/menl of lhi.i tiole or 
the debt due thereon, and without further nolire. and a/.ph/ Ihe 
proceeds, or as much as waij be necessary, to the payment of this 
note and all nrce.'isnry and charges, holdinq mi/self re- 
sponsible fur nil 'I JrHriinrii. ' ^ j' 1»\"|\, |,-i5 

, ,?^-.^'-~^.'''''' '"-i"Mn.-.. pmiry cnul,l not Ix- nse,I as unless the 
bencfieiaries si.-ne.I the no,'e. and the assi.imment was recorded on the com- 
pany s books. 

In all cases where colh.ton.l security is .iriv.-u witli a note, the ric-ht to 
such secirify jroes with the note, and may still be held even after the note 
mijjht he outlawed. 

An article, say a ,<rold w„tch. left in this way as collateral s.^uritv w,.uld 
not be -pawned," nn.l the lender of the monev wotild not he liable to a tine 
for pract>s,njr i.awnbrokinir without a license. The transaction is legitimate 
and lejral. .as the money is not loaned on the article. It is advisable how- 
ever, to !,-eoi, til pnper -e.^uriiie-. 
189 Instalment Notes. 

It does not atleet the negoliabiliry of a note to make it pavable in in- 
8 alments Action „K,y be taken as s..>n as the first instahnent is due, 
allowing the three days of jrr.ace, but only for the amount of instal>n..nt as 
eaehinstalinenr is considered a separate note. An instahnent note wit'h a 
proviso that : 

time menfonei, the whole amount -f this „ofe shall beconle'due and pay- 
able forthwith is valid. ' • 

The followinir instahnent note will illustrate the form: 

^^'^•^*^' Hlmueijstoxe. Tune 1st. 1010. 

On the day of each month hereafter for four months con- 
secutively. I promise to pay E. Aiuiusllne Ihe sum of Fifteen 
Dollars, ihe whole omountin,, lo Sl.rly Dollars, the first of .<»,rJi 
payments to he made on Ihe day of July next. Interest both 



hcforv and after tnalurily uulil paid at the rale of six per cent, 
per annum. 

In event of default in making any of the above payments at the 
time mcnliuneil, (he vhole amount of this note shall thereupon 
become due and payable forthwith. Jami;s IIauhy. 

NoU's pavuble by iustalineiii liavf thrci; Javji of urucc uUowed ou uuuh 

As to prcsontiiictit ami uotice of di^lioiior each iusiuliiiout is trcatpJasa 
separate note, and in order to bind tht' iudorsiT for any instalment of in- 
terest, note must be presented when instalment falls due, and notice of 
dishonor ^\\vn such indorser. Jennings v. Napauci- Brush Co., 41 C.L., 
T. 595. 

191 Lien Notes. 

A lieii uuif i.-, Ml ordinary promissory note with a clause added, 
which prevents the ownership of tlie article sold from pas-sing to the pur- 
eiiaser until the note has been paid in full. 

Such a note may be taken f()r an article IxMnj: sold, but nut for a debt 
that has already been contracted. The purchaser takes ])ossession i>f the 
article, and has the full use of it, but he does not acquire its ownership until 
tlie full amount of the note, or any renewal of it. is paid. 

(a) The Lien Clause must be worded with care. There are two 
essentials to be observed : 

1. It must be merely the ripht and title to tlio ownership that is re- 
Bcn-eil in the vendor and not the right of possession of the article. 

2. The goods must b<' sufficiently described to make identification eer- 

In a suit iM-fore Judsre Scnklcr ui Pirih. Sept. 8, 1900, the following 
lien clause in a note was held to be "very mciurre"' : "The riirlit and title 
to the possession of the property — the hi'uschi>ld furniture, for which this 
note is given to remain in the said Geo. E. Leslie until this notx- or any 
renewal thereof is fidly paid." 

It would be impossible for an officer to identify tin- furniture from tlie 
above lien clause. The vendor also reserved the right to tlie possession of 
the property which is a serious defect. 

This was an Ontario transaction and the Ontario Statutes req\nre a lien 
note taken for household furniture to be regist4'red which was not done in 
this case, hence the court held that tlie household furniture claimed in the 
^uniiMoii- " i< Tiot tlif propcrlv of tlio claimant." 

192 When Lien Notes Are Negotiable. 

There is a contlict of authority as to whether lien notes are negotiable 
instruments or not, but the weight of authority is in favor of treating them 
as such when properly worded. And as such instruments are in general use 
a brief snnunary of the cases tiiat have Ixen cited fnr and naninsi their 
negotiability will here be given: 

In Chica^ro Railway Equipment Co. v. ^fcrchants P.ank. l-'O U.S. -200 
(1S90). the lien claus<! read, " And it is agreed by tiio maker hereof that the 
title of said cars shall remain in the said payee until all the notes of said 
=P5^pi_ l>"th prinHpal ard int'^rcit, are f'.illv niiid "H -"^f -nii! ^i:'.*/"; Vipir.^ 
eqnallv and ratably secured on said cars." The judge held: 



"1. 'I'lin' thi;* wus a iicfrotiablp |iniiiiHsnrv note, ni'conlinp tn the Stiitiito 
of Illinois, whore it wn« niado, a» wfll a* bv tho jroncral inercantil.- law. 

"•2. Til' • it» iiciT'itialiilitv WHS m.t alTrct<'(| bv fho fact that the title i.) 
the rare for whirh it was pvrn rnnaincd in the vcndur until all the iiotcn 
of the .Tries were fiillv |iai(!, the title l)ein2 sn retained only bv way i.f 
security for the payment of the notes, and the airreeinent fur the reti n'timi 
for that piirpi.-e being a short form of Chattel .Mortfrasp'." 

In .Meiehaiita Hank r. Dnnlip. '.i Man., 02:i ( 1S'.>4}, tho lien clause read, 
"The title, ownership and ri.:,'lit of jwissession of the property for which this 
note is piven shall remain in Wat-on Mannfactiiriny Co., Ltd., until this note 
or any n^newal thereof is fully paid. The Watson Maiiufaeturinii Co. shall 
provide all rej.airs required f..r tiiis binder, also any iin|irovcinents (hat nuiv 
lie a.lded |.. their binders Kfore the date of ilie ac-c.unpanyinii nciti- are ))av- 
able." Jndi:e KillaiM held that "these instruments were nc'jotiable promis- 
sory notes nHtAvith<tandin!r the sjiecial provision at the end, which should 
k' ccin^tnied as a memorandum U> show that the payees liad promised to pro- 
vide the things mentioned as part of the consideration of the <lefendant>' 
promise to pay the ii )te. and not a condition, attachrd to the ahsohitr promise 
to pay." 

In Chnate v. Stephens, llC Mich., 28 (ISftS). lie lien claii-e read, 
"Xevertholess it is understood an<l agreed by and lietween the nndersi;rned 
and the said Low's Art Tile Soda- Fountain Co. that the title to the al)ove- 
mentionod property does not pass to the undersi-med. and that until all said 

nofe^ are p:'! I the lillo t,, the afon-aid ].ropei-iy A\:\]\ r.iiiaiu in till' -aid 

Low's Art Tile Soda-Fonntain Co., who shall have the richt in ca*e of non- 
payment at niaturity of either of said notes, without process of law to enter, 
and retain immediate possession of said property wherever it mav bo, and 
remove the same. Payable at the I'reston National Hank." It was "hcM 
that the clause retaininjr the title does not impair the ncirotiability of the 
note." The instrument "imports an absolute, not a conditional, sale, with 
reservation of litle liy way of security." 

The tindinjr of the courts in the three preeedinjr ra>tcs eiicd has not 
been controverted by any different or later decisions. 

The three following: cnsrs: have b<>en cited as against the ncfrotiability 
of lien iiote<. but do not afford such i)roof. because the lien clause is radically 
different in thtse cases. 

In Dominion Hank v. Wiiri^'ins, L'l Ont., .\.K. 275 (1S<>4). the lien 
clause read, '"The title and riirht to the possession of the property for which 
this note i* given shall nmaiii in Wiggins liros. Manufacturing Co. until this 
note is paid." Judgment in this case was first s:ivcn the T>ank as indorsee, 
but the Court of Appeal in reversing the judgtnent of the lower court, held 
that " the lien clause was fatal to the negotiability of the note," and further, 
tlint " the money was the crmsideration for the sale of the property as neither 
the title nor the rieht of po-:session was to pass until payment. If that is 
so it follows the purchaser is not compellable to pay when the day of pay- 
ment arrives unless at the same time he gets the property with a good title." 
and as the property in this ease lias been taken back by the vendor before the 
m.-jturity of the note ;ind «nld to a third partv the endorsee bank faileti in 
its suit to recover on the note. 

ur.y MOTM. 


Haukii uuil (»thfM wli.. may piirchu<v litn uotrs iini>t rotiu mln^r hat the 
ripht to the .securitiis Rue* witli tho pujwr (see f«>U<>win;r section), ai\il it is 
incmnk'iit up.-n thiiii t.. sec that the vriulor ihn'-* nut iiiillifv the contract by 
rcjHKScssinf: him-tlf <>f the proiK-rty which coiistitutcil the CDHsidfralion fi»r 
which tlic note is ffivcii. 

In Imperial 15ank r. I'.romi.-^h, Ui CL, T. 21 (1M>.'>), the instrument 
was hchl to be non-nccoliiible, but the lien clause had the wording — "the 
title, owncr.-liip mid li'/hl of ims-vasion of said cattle for which this note t.> 

pven, shall b.' an. I reiniiiii in until this note is fully imid." 

Of cour^^e with lli«' //'//(/ of possession riHTved, as in the previous case, 
the sale was conditional, h> iIk' case do«'s not prove the noii-iie;roiiatiility of 
a |)ropcrlv tlrawn lien noii 

In Pre-cotl V. (larl.iMi, .it N.Ii. J'.'l (l^'.l'.'). l)Oside.s several other 
drastic u>;reeineuts. the lieu claus«' read, "And that the sai<l harness is mean- 
time oidv on hire nniil jmid for," and "on any default all jiayments to go as 

Of course this could only l)e a written ajrreenient, and not a promissory 
note, as the court justly held. 

From these six ca<cs cit»'d it ciTtainly beconu's nuuiifest: 
1. That where the lien clause reserves in the veiulor the lUlc or oirncr- 
shiii until the article is paid for, the instrument is a neurolialilc promissory 
noic, for there is no condition that attaches to the j)roniise to pay. 

Thev are promissory notes accordins: to general mercantile law. ami so 
many States and Provinces have declared in their favor that there should no 
lonirer be any (luestiou remaining as to their negotiability. 

:.'. \'>\\\ iti all {-ascs where the lien clause reserves in the vendor the ri'//// 
of possession of tin- article for which the note is given, the sale is only con- 
dftional, and therefore the promise to pav cannot U- held to Ik' non-condi- 
t'onal. for if the legal owner should repossess himself of the property iK'fore 
the niaturiiv of the note there would rcsidt a ''failure of consideration." 

If the preceding conclusions are legitimate dedurtiona from the essential 
distinctions in the character of the instrnnients. and from the judicial find- 
imr of the courts in the six cases herein citeil, it ought not to be a matter of 
doubt when a lien note is a negotiable instrument, and when it is not, except 
by assiijnniriif. 
193 Form of Negotinble Lien Note. 

The following form, according to the first three cases cited, is unquea- 
tionablv a Xcijotiablc Lien Note, for it has every element of negotiability: 

$100.(10. Lynn Vai.i.ev, March fith, 1910. 

Three months after date I promise to pay Oliver Austin, or order. 

One Ihindrrd Dollars . for rnhic rereivcd. 

The title of the property in the Hell Organ. No. 4^2C,. for which 
this note is given, is not to pass, but to remain in the said Oliver 
Austin until this note or any renewal thereof is fully paid. 

W. A. Sanderson. 

Tn the above n.ite both parties to the c^jntract understand that a sale has 
i_i-__ ;-.i.-_- 7* :,j ;... f.rpcyifnr'ti oolp an<! not a conditi'inal otio, Afr. Sander- 
son has the actual possession and the exclusive use of the organ, but by the 


\ t^i.ii I I »iii I. r vi'iu. 

ttTiiis I'l till' i-Miitrart \\v IS jiris'luuid tr'in •li»()<>-iin; ui li. imui li i^ |iiilil fur, 
tbo .■•uiiio -IS ho wi.iild lie if it were coverni liy a chiitlrl iii"irt).'aj;i'. 

Mr. Aii^iiii liii> rc-ii-v<cl the nwnrishiji. Inn iiiiiicr iin fimiiiisiaiii'cs cim 
he takr back tlie orpm except for ri'in-payinrni of the uoti- ut iiiatnriiy. 

I f tlio vfiidor di'8irf*to il<> ho he inuy trt-ut tlu> noU! oa uny other witliout 
n-piril to the liin i-luusp. If it is not paid at tiiaftirity hf may >w for iht- 
anmuiit. atul iu the evi-nt tliat he fail* to rcH'ovcr payiiient in full ho may 
then resort to the lien claiHe and take pip^M'Si-ioM of tlii' artielo. 

('(IiutIIiiIIoii of llir tlibt by niahiutj iiogsessiun. 

I{y thewordinjrof the/iV/i r/fjiMf inthe above note, if the purchaser doe* 
not pay for tiie article in fnll and tiie venilor or imlormv would have to tako 
it back that would eaueil the remainder of the ilebt, and if the article did 
Slot re-sell for enonjrh to cover the remainder, no more could subjieipu-nily 
be recovered from tlie debtor. This in ^reneral oiijrht to be sutKcient. 

(a) lint if for any reason it is dertirod to provide that in the event 
of retakini; the article, if it should not sill for «'nouj.'h to cover the remainder 
of the debt and costs, the maker would still 1m' liable on the note for the 
balaiM'e the following "lien clause" or one similar should be used; 

"The idle of (lie property in the Pease furnace, Xo. JO, for 
which this note is (jircn is not to pass, tint remain In the jtnyp of 
thin note until the same is paid in full, and in case of default in 
payment shall lie at liberty without process of law to take posses- 
sion of and hold until this note /a- paid, or sell the said property at 
puhlir or private sale, the proceeds thereof tn lie applied upon the 
amount unpaid of the purchase price, and shall hare the riqhl to 
sue and recover the balance owimj. if any. 

{b) If the al>ove, or any other properly drawn lien note were trans- 
ferred by indorsement only, the holder would have the rijiht, if not paid at 
maturity, to sne either the maker or the indorscr. But to have the benefit 
of he lien clause so as to have the ripht to take possession of the article or 
to follow it atid claim it if it has been disposed of, the transfer must be 
completed by assiiinment in addition to the indorscTnent of the pajuT. 

Bv the Ontario Statutes this note would have to l)e reiristered in order 
to be bindinjr airainst subse<]uent purchasers or mortgagees without notice 
for valuable consideration. 

When such pajier is discounted at a bank or transferred to other parties 
the ri'/ht to the securities jroes with tlie paper, whether the as-^i;rninent is 
made at the time or not. The transfer of the note is held to transfer the 
securities. Central Bank v. Garland. "20 O.B. 142 (Is'.tT). 

A person who sells an article covered by a lien note or a chattel iiiort- 
jjaare is ffiiilty of a "wrontrful conversion." and the person who purchases 
such article onlv acipiires whatever title or equity such vendor has in it. If 
such purchaser i* led to believe that he is actiuirinjr the actual and complete 
ownership of such article he is defrauded, iincl has the same remedy that he 
w'liild have in aiiv other ease of fraud. 
195 Assignment of Lien Note. 

Trie foliouiiii: coiiriM- foi in for tlie assi^mcnt of a lirn nntr vrriiten 
acro-^s the back is sufficient: 


For value rereifi-d, I hereby transfer the u-illtii note, and all 
my righln. idle, and interest in the goods and chuilrls for uhich 
the nair .^ote was <jiven, unto (name). 

i]hiU'.) (Signature) 

196 Noa-Negotiable Lien Agreements. 

Tliir.' tin- iimti.v f..riii-« of lien a>rrppniont>» callnl al*> "hiro rwoiptJ"," 
which, aithonph onili.Kl.viii;; a form of pp)mi>(*.ry n<>t«-, arc so Imnlcnfd with 
conditions and rciuintiinit-* that th<y cannot rank in any sense 
a.4 nf^otiablo instr\itiicnt«. In many instance's .*<>!iio of tho claiws 
c..n*ti utc illcpal confract*i. For instance, "the right to break open locks 
and doors" to retake the pHxl* is frequently one of the clauses in such 
aKrei-nuntvi, to exercise which would be a criiiiinal offence, punishable by 
imprisonment— no one can make a contract t<. allow another to commit a 
crime. Sj'e "Illegal Contract." 

The f.illowintr form with *oine illenal clauses omitted is a copy of a lien 
agreement n-c.l hv an Ontario tirrn and is about as strong as need 

SI.IO.OO. riiATiiAM. OxT., Sept. 1st. 1000. 

Un or before the first day of March. I'.tlO. for value received 
I promise in pay the Duminion Furniture Co., Limited, or order, 
at their office, Chatham, One Hundred -nd Fifty Dollars, uUh 
interest at 7 per cent, per annum till due, and thereafter until paid. 
I also promise and aqrce to furnish security, sailsfactory to you, 
at any time if required. If I fail to furnish mrh security when 
demanded, or if I mahe any default in jnyment. or should 1 dis- 
pose or attempt to dispose of my land, you may then drrlarr the 
whole price due and payable, even before the maturity of the same, 
and suit therefor mai/'lie immedintely entered, tried, and finally 
disposed of in ami Court having juri^^didion where your Chatham 
Office islocated, and I waive my rights to exemption from seizure 
given by statute, and you may retake possession of the vehicle or 
property so sold to me, without process of law, and at any time 
thrrmfier. may sell the same at public auction or private sale, 
the prorrrd thereof, less proper charges of retaking possrsxion and 
sale, lo he applied on account of the amrunt of the purchase prvce 
and Interest. Ihrn unpaid : such snlr or r ght to sell .ohall in no way 
affect or limit my liability for the full purchase price, or your right 
lo sm for and recover from me said full purrlia.xe price and in- 
terest, except that in the event of such sale I shall receive credit 
on account, as before provided, and shall thereafter be liable to 
pay the balance only. Upon such .-ale. if any. my right to po.f 
.,e.^oion mnd delivery before and after full payment, and all my 
other rights and claims thereto shall forever Subject to 
these prori.fiDns J nm to have pos.'^essinn and of the vehicle 
or nroperty at my own risk of damage or destruction from any 

cause u-haisoi-ier , ryuT in,- j.rr.jn-r.ji .nrtf..-. ^-.r.-u :■■' ■■ ;":' 

is not in any event to pass to me; on the contrary, shall remain in 

48 NiXilU lAIU.I. I-APER. 

you until full paymrul of tin- purfhisc , ' c aiul interest t any 
oblif/utionii or reitriials thereof <jiven therefor, and I a'jr", not 
to remove the artiele or articles out of the I'roriuee of (Jiitn. io. 

I am the oirner of , Lot 7'/i , eoiitainiu;f 

acres, worth $4,000, mortgaged for $'-00 only, which lot 

I tiJeil'/e as security for the payment hereof , and I fully under- 
stand that this note may he registered against my land, all my 
chattels being free from eneumhrance except $100, and I under- 
stand that it is upon this representation that th'^ goods arc de- 
livered to me. 
Witness: W. WisK. J. S mndkus. 

Ill the alv'Vi' iloeumoiit the Inst clause at least could protltaMy lie 
coj)ied liy utlier tirnis, for if llie statements eoiicerninsi the laiiil and ch;i!'rU 
are not true the piirty sijriiiiijr it wouid he jriiiltv of ohlaininsr jroods im.l( r 
"false prelei'iee." The doeiniieiif may also Ix' reirister("d ajiainst the land. 

To protoet the ownei apainst suhsequent purchasers and niortfrairecs for 
value the provisions of the "Conditional Sales" Act must be comjilicd \\ itli, 
which see. 

For place of suit, see "Chantre of Venue," 

(a) The jirovision that shoidd the purdiaser ^cli nr atteniiit tn sell his 
land jiroperty the vendf»rs c.iuM deelan' the whole price due and payable, 
has heen rhclared to he enforcahlc in the case of "The Ontario Wind 
Enirine \' I'utnp To. v. A, Ci.."' which <'amc n]> in the Oivisinn Court l)e- 
fore Judire Morsi.n, 1 >e<'emlxT 10. I'.'iiT. Tlie elnuse in the lien note read 
" if not paid at maturity, and if default in jiaynient is maile. or should 1 
sell or ilispose of my lanil property, or if for any jrood reason said Ontario 
Wind Engine & I'ump Co.. Ltd., simuhl consiiler this note insecure, they 
have full power to di'clare it dtie and p.iyahle at any time." 

Tt was shown at the trial that the maker of the note was endeavorin": 
to sell his farm. The jiayees not heincr ahle to secure further spcurily de- 
clared two notes, one due Octoher. 1007. and the other Octoher, lOOS. hoth 
due and ])ayah1e, nnd entered suit t<( enforce payment. The court held, in 
crrantinL' jud<riuent in favor of the [daintifFs, that the clatise was valid, and 
therefon>, the "irood reascm" was a rpiestion for thi- payef's only to de- 





CilAl'lKK Vll. 



200 Acceptances. 

Acceotancf, lu .•«.imi,vn-iiil hiii:ruai:P, is ilic luuue f>-ivi'ii to a dratt ati.T 
it ha.s iKjen acccpttHl. A draft is au unon.Htiouai writttti (.rdcr Irc.ia .me 
...Tsnii. called tlie c/raircr, to another called the drawee, to pav a c(Ttaiu 
ppecilied r^uiii of money, at a spcciHed time, to a third ])artv, called tlie 
',a<i>e. flt-afts are deiioiniuated bills of exehanjre, btit corrcetly speaking a 
draft that has neither been discounted nor aece))ted should not be called a 
bill of exchange, it is merely an oid. r w'oirh the .Irawee may. or mav not 

honor. , , . 

If a bill i- pavalile in anvtiiing but mom-ii. or if it onlers soniethiiig to 
b<- done in addition to tli.- pavmcit of :noney, it is not a bill. T5ut to name 
a >r,rticiilar a.'coiuit to be debited with the amount, or to inclnde a .state- 
ment of what irives .,-e to the bill, would not affect the bill. 

IlilU .d' I'.xelK.nire are divided into two elasses, vi/.., Iidaiid an.l 
201 Inland Bills of Exchange. 



-(■ n.ival.le ;n lb.' .^an;.' count rv in winch tluy are drawn are called 

r Domestic Mills of Kxehan-e. Vnv instance, a bill drawn by a 

lire;,] mcr.-hant ■■a one in Toronto, or Winnipeg, or \ ancoiiver. w.imd lie 

Inland Bill. , , . n i 

In Canada. Inland or Dome.stie Bills have three days grace allowe.l 

all except tlii>-e T.avable -on demand."' 

I„ Xcwfoundlaiui and Kiiirhiiid Inland Bills have three days gra.'e 
-v.d on all execi>t tho^e jiayablo "on demand," or "at ?ight. ' 
202 Foreign Bills of Exchange. 

F.iniLni Bills of Kxcliauiie are 








in a country fireign to 
il! drawn bv a Toronto 

that in which tliev are drawn. For instance. .^ _ 

maim fact nrin- firm on a merchant in Xew Yo-k or St .John s >fl..., or 
1 ..nd.rn, Kn-., would be a Forri-n I'.ill of Fxchange. Also a hill drawn m 
.,nv other conntrv on a person in Canada w.nM be a forc.,-n bill, as m ease 

of the followinir Chicago bill: 

Chicago, June 4t'n. liMfl. 
"r (lair pny fn fhr order of The First National 


Bank, v'ith exchnnnf "' A''"' ror/,-, V>ee Hundred Dollar.'^, vdue 

re'-eived. and charrje to account of 

T^ "C" "IT X' Cn Tiiv A. B. Sr Co. 

"^^ "^ To;,tto. •' P- C. I)., Manager. 

\,l,lnv "with oxcbanire" to a hill dor., not destroy it« Tiegotinbility. ns 
the cum is certain; but to make it payable in "sterling exchange or Xew 
York exchange" wotdd destroy the neg-^iai-ility, a- -nch exchange is not 


NEOO, :Ar.i.i; I'.vrEn. 

All f Toijrn bill:* in ra.,a(la must ho protested for noi -ae<-ept- 
anco. and also" for nou-pavmen' hi .-r.ler to liold the drawers and iiidors.TS 

The >se\vfonndland Hills of Kx.dian"v A.'t eontams the same re,|uirG- 

mcnts for fnreirm bills. 

r.ills drawn on foreijxn countries must eonform to the rei|uiremcnts of 
such fMi-('ii:n countries in order to be valid ^'lere. 

In (ireat Britain the Stamp -Vet of is'.tl requires that bilU of exebange 
UAist bear the proper revenue stamp when issued. The penalty for either 
issuiiijr, or i-resentiiig for payment, an unstamped, bill is a tin.' of ten 
pounds; neith.'r ean the bill be eolleetod by suit. Canadian notes aiul bill« 
pavable in Britain must er.nform to the Stamp .Xet b^dore they are presented 
for pavnient. Of course voidinj; the instrument would not cancel the debt, 
but it "eauses confusion and -lelay and wr„ild release any indorser that might 

be on the jiajier. . . ,,•.-. a 

The following summary of ess(-ntial re.nuremrnts. in addition to the 

Canadian Law. taken from "•'I.uveirs T.e-al Compendium." as prepared by 

John W. Blair, advocate of ;M,intr<al. will \m- ,.f interest to importers and 


.V bill must be dated to comply wiih the laws of Framv, (.ermany. the 

Xetherlands and Italy. 

The nature of the eon-iderati.m must Ije stated accrdir.- to ttie laws 
of France and the Netherlands. 

.\ bill must be .Irawn payable to order and would hf invalid it payable 
to bearer according to the laws of Fraace. Sjiain ami Bussia. 

The payee must l>e named to accord with tlie law of C.enuany. 

The place of pavment must, be stafe.l f >r France. Cermany and Ttaly. 

All bills ]Kiyable either in Canada or Xewfonndland must b. 
pro "Sted fur either non-aeceptatu'e ..r f^r nnn-pavment. 

203 Set of Exchange. 

In tlie dav, nf >MiiiiiL' ves-els. ,ielavs and losses were fre.pient in ocean 
mail, hence the Foreign liills -f Kxehange were usually sent in set,s of 
thre.-. <'alled a " set of exc.ianL'.." and each sent by a different route, or on 
a different dav so as to guard asrainst delays or accident, one of the three 
beinc alni-^t certain to reach its .lestination. But the great ocean liners now 
are is nliable as the mail train, therefore if is no lon-er necessary to trans- 
mit more than one hill of a -et .,f ex.diange. as per fM!l..wiug f.>rn.s: 

^■[Oa_ T.oNiioN. 2.'lh .\ueiist. 1010. 

At ninefr, r^/n/s "firr date pay this Fir-^t of E.rchnru,e (Second 
nnpnld) io our' order the sum of One Hundred Pounds for value 
received, payahle ai current rate of exchange for demand bills. 

T At, .,.< \ .'i- S FoK A. M. & S.. Limited. 

J,. .\l!s K • y '•, J j^ y 

^'"■"""- B. W. A. 




In c.i-c i.f a Kill ilrawn in a fnrcigii comitrv and made payable iu Canada, 
but not iu the curi'i'iu-v <il' Caiiada. the aiiiDiiiil, in the abscuee of ex|iivns 
stipulations, is ti> l)e calculated accDrdiuir tf> tlic rate uf cxcliatifre fi>r >ifrhr 
drafts at the ])lace of payment (in the day the hill is payable (Section lt>5 
15. of K. Act). 'I'lierefure tlif dravMM- nt" the alHjve exchanf;e will nut know 
the exact aiimnnt they will liavr n. pay until the ilate of matui'iiy. Ji may 
Ik' more or it mav be les;; ihnn •tl.-^H i'-:;. 

Kx.'haimc f..r I'L'dii Sii;. Thkunto, -4lii Sept., l:M(). 

At sii/ht of (liifi First of Exchamje (Second and Third unpaid) 
pay to the order of E. F. d" Vo. Two Hundred Ptmnds Stc.rUwj, 
value received. 
'I'ci TU1-: 1!ank or Monimai., A. kV l!. ( o., Ljniiteil. 

London, Knj;. IVr A. £., Secretary. 

(^)uite an anomaly exist-s in our market quotations on foreiiin exchaniro. 
Winn -terliiifr ex(dianire is quoted at itl.j it is at par, and not at a prrmium. 

In the early years of the old Province of Canada the par value of the 
l*>riti^h jiound sterlinir and the soveniini was fixed at •$4.1 1 4-!» ; but when 
tlie United States adopted ilnir n^ld >nindard and tixccl the p;ii- valm' of 
the pound sterlinir at !ii4.''t'i l'-:5. tlic irold comin;;- into Canada rapidly j:ravi- 
taied to the United States. Then in l"^.");! the Parliament of Canada passed 
a 1 e\v Currency Act atid maiie the par value of the ["Muid -^rlini; and the 
l!riti<h sovereiiiTi in thi> two provinces $4.Sfi :?-:! ea(di. 

VlmIu in 1^71 the l)oinini"n Parliament in ihc new ( 'urri'in'v Act t'^r 
the ivhole Dominion in::'li tlie par value of the pound sterlinir and ilio 
^•oveloiOT $4.SG •l-'■^. }\\~\ '.''j per cent, move than the old standard of 
$4.4J 4-9. 

iLstf'ad of the ( ■■inniiriial iii-titutioTis ;idoptinir the new standaril, tliey 
Iiaveontinued to use the old. and when sterlinir exchanire is at par, $4.8(5 2-:!, 
it is qi oted on our market- at '.»' ^. premium. Theri fore, when our morning 
]iapers quote sterlinir GO days siirht. or dnuanil. at '.''j. it means at par, 
and wh ^n less than '.•'- it is sellimr below ]iar, and when over ffo it is at 
a jiretni im. 

204 Paities to a Draft. 

Tluri arc three parti(^s to a ilraft at its ineejition — drawer, drawee and 
pa\ie. The ilnurrr is the one who niakt < or draws the draft. Ilis name 
always stand.s in the lower riirhtdiand corner. 

The driwce i- the one on whom the draft i< drawn, that is the one who 
has to pav t. His naini' is alwav., written in the lower left-hand corner. 

The is the one in wh"-^e fav..r the clraft is drawn — the one who 
is to receive the ni'inev. The pm/, c i~ the ^airie in Ixith note< and drafts, 
and in each ( ase his name is placed iu the boily of the instrument. 

A note or draft may h(^ made payable to one. or to two or more persons 
iointly. or alt Tuately to one (vf ino (n- of several payec^s. or to thi' hold.>r of 
an ojftce for t! <■ titt'c bcinir, P of F. Act, S<h-. 10. 

205 Negotiation of Bills and Notes. 

.\ bill i« TH ETotiated when it is transferred from one person to another 
in such a nianni r as to constitute the transferee tlic holder of the p.iper. 



A liill iir nntc ]i;iy:il>lc to hearer L-s ni';;i>tiai(-il liy .IcHvcry. without 

A bill cir ui>\o |i(i_vablo to order is noffotiateil \>y Om- ciiilorvcincnt of tlio 
bolder, comiilctcil l)v dclivcrv. 

It is iK'tttT to iHC tlif word order iiisfcud of hearer, because in that case 
if tlie note were lost or stxilen it could not Ix; dis[)osed of to, and collected 
bv, an "innocent jiurchascr for value," as it wouM lack the endorsement 
of the payee. 

.V bill or note is sntheiently endorseil by the payee, or the holder, writ- 
ing his name across the back <'f ihe instruiiienf, withmit any additional wurds. 

Wliere a bill is jiayable to two or more payees who are not partners 
all mu-t (■ndor-e. V,. .if V. An. Sec. ti;!. 

206 Negotiation of Overdue Paper. 

A person iM'cominy: the holder of an overdue note or acceptance (or a 
nou iicuoiiable note Infore maturity, or u note marked " friven for ])atent 
right "), takes it subject to all the e(piities and defects of title which aiVectcd 
it at its maturity, and henceforward no iierson who takes it acquires any 
better title than it had at that time, and is liable also to whatever counter- 
claim or defences that may exist beiween the maker and ihe original ]iayee. 
i:. of Ex. Act, Sec. (i!». 

A bill payable on demand is deemed to be overdue wlicn it appears on 
the face of it to have been in circulaiioii an uurear-onablo length ol time. 
Sec. 7(1. ]]. uf Kx. Act. 

A ]iromiss<jry note jiayable on deniaml is intended to be a continuing 
^ecuriIy, hence cannot be treated as overdue on ihe ground that an uiirea- 
sonable time for i>r<wnting it for pavmcnt Las elapsed since it.s date of issue. 
(Gla.ssco<.k V. Balls. IsMt. •2^ Q.IU)., l-'i, 4 MA'., in.) It differs in this 
respect from a deuunid bill or a chenue. 

207 A Holder in Due Course. 

A lioider m due course is nearly the same as what is usually termed au 
•• innocent holder for value," and means one (not the payee), who took a 
negotiable instrument under the foll<»wiiig conditions: 

1. That the instrument is eouiplele and regidar, on its face. 

■2. That he iK-canie the holder of it before it was overdue, and ihai if it 
had been previously dishonored he had no notice of such fact. 

3. That he took it in g.HKl faith aii.l for value, and that at the time it 
was necotiated to him he had no notice of any ili-fect in the title of the 
person who negotinted it to him. Section '>*'< 15. of ¥.s. Act. 

Anv person thus becoming the hobler of a negotiable instrument will 
collect "it no matte? how great the fraud by which it may at lirst have Ken 
obtained, except in case of those marked Given fur patent right, or in ea<e 
of forired paper. 

After the paix r has thus pa.-c,l throie.'h ihe bands of a ''bolder in due 
course," and tieen purged from its infirmily, it becomes immaterial wlietlur 
any subMH]uent holder luvs notice or not of any prior defects or illegality. 
This is a case where a man may give a hotter title ilian lie himself has. 

"Xoticp" of infirmity, or defect in ti," title, v.cmbl include any informa- 
tion that a prudent per-on would crather fr -u looking at the instrument., 
as well as information that migiit luwe come (liro\igli other sources. The 


pnrcliasfT cannot sliut, liis cvi'S ami car- ami tlna -a/ li.- ii.i.l ik. notico. 
For instanpo, one or more notes (vtT<rc.l at an unusually larfre di-i^'unt i^ 
sidticiont notice to the " pureliascr Id iH'warc," ami if oashi'd witliMiit 
inqiiirv, say at oven 2.' y)rr ci-iit. di-^cotint, the i)urcha^('r could not claim 
to lie "'an inii'X'i'iit In.ldrr fnr value." 
208 Acceptance of Drafts. 

.\ -iral't i< ii'M liiiidiui.' liiiiil it 

ordinary ■■rdir on a iiuTi'haiit wou 
accepted if. 

The drawee of a draft, in flu- : 
to accept, or in ca.-<e of a diinaiid liill 

ia« liciii acceplcd. any niMrc than an 
1 lie liiiniini: '111 liiiii before he ha.-4 

l,«ivc ..f an airreenient, is not lioiin<l 
to jtav. a liill drawTi iiiion him. (jood- 
win v.'Rol)erts, 1S75 : L.K. 10 Kx., pa^'e :;:)1. 

In accei)tin2 a draft the mere sipiatiire of the drawee written aeros.s 
the face is sutlicient. without the usual words heinfr added. A draft is 
nsnaliv accepted tiv writini; the face of it, pretty well towards the 
upper" end, which is the left hand side, the word "Accepted." pivinj; the 
date, where to he jiayahle, and then sifininir the name immediately under, as- 

" Accept, ,1 Auiru-t L"-th. linn. 
•• I'avaMe at Inioi rial Hank here. 
■•1). A. .M. I.\im:n-." 

Draft* drawn j-ayahle "at siL'ht," or a certain time "after siirht." or a 
" demand " draft that is not pni.l whi^n presented, should pre the date of 
"acceptance," in order to fix the niatnritv of the in-trium lit ; Imt, a d.raft 
dra\TO payable n certain time after "date" nee.l not have the date of 
acceptance civen : hut eve ii with these it is as well to give the date of accept- 
ance, too. Where a <lraft is nrrcptcl. it is said to lie ■• h-tiored." and 
where acceptance is refused it is said t" he "dishonored." 

A promise to accept a hill i- not an a.-repraiiiM-. and woidd not jimti'ct a 
htmk if it relic. 1 on such proiiii<e. 

An aeceiit.'V luav rev..!,,' hi- ticcep.tance at anv time heiore lic> ih-Urrys 
the jiapcr, or has fiircn volirr that he has aeee])teil it : hut after idther act 
the acc<'ptance Ix'come* irrevoi'ahle. 

When a hill i* dish. >n. .red by non-accejitance, an imme.liate riiiht of 
recourse aiiain-t \\\e drawer and endor-ers accrues to the hohler, and subse- 
quent pre=enttncnt for pavment i- not necessary. Tl. of Kx. .\ct. Sec. S2. 
209 Statutory Time Allowed for Acceptance. 

When a draft i^ presented f.T a.'ceptan.'c the ilrawe may, if he deenn 
it desirable to .lo so. demand twn day-^" furtluT time in which to decide 
wdiether he will accept or not, and in such case it cannot be legally ]tro- 
tested for non-a.^ceptance until the expiration of that time. 

But if the time is not askeil it may be protested the day it is first pre- 
sinted. if acceptance is refused or cannot be obtained. The exact wording 
of the Act, Section SO, is: 

"The drawee may accept a bill on the day of its due presentment to 
him for acceptance, or at any 'ime within two day- thereafter." 

When a bill is thus duly presented for acceptance and is not accepted 
t«-ithin the time above mentioned, the peivon presentinj^ it must treat it 


I I lAIM I, I'Al'KI; 

as .li.sbotK.rcd by iion-acc-cptance. It' lie .l.'cs not tho holder shall iofie his 
rifrlit of r(criiir-.i' ;ijraiiist the drawor and eudc/i-scr. 

The ohjwt of this section of the Statute is plain. A debtor is under 
no h'lral obligation to aecept a draft drawn on him b_v a creditor, and as 
protc-^t fees lor non-ac<-eptanee eould not be eolh'cted fri>iu him, it is in 
the interest of the draircr that reasonalile liinr- 1m- allowed the <lrawee to 
decide whether he will aecept or nni l„.f,,re treatinsr the paper as dishon- 
ored. The time allowe<l l.v the .\ct is three days, incliidinj; the day of 
first presentment. 

It the bill is retiirurd accepted, bin liie acceptance is not dated within 
this time, the iiolder may refuse to take the accepianee. and mav treat the 
bill as disIionnre(l by non-acee|itance. ( l' Edw. VII., Chap. 2. !^ee. 1.) 

In case of time drafts drawn on well-kno\\-n firms, when not ritoched 
to r.ills of La.linff. it is the custom with banks to leave them for accept- 
ance. .\ draft thus left, if it is not returned accepted within the two davs 
after presentment, must be treated as (lishtniorni. If it is wron/rly lir 
accidentally detaine.l in the bauds of the drawee, protect mav be made on 
a copy or writteti [larficulars of the bill irathered from the bill bo<ik. 

Newfoundland has fnllowed the Kn;:!ish Statute, which <tates that the 
draft must lie accei)ted " within tin- customary titiu>," or the holder must 
treat it n^^ di^lionnrod. 

210 General Acceptance. 

(ieiieral acceptance is the term used when a draft is necepted in the 
ordinary way. bv wrifinu' tin- name, date, and usually a pbu-p of piiyment, 
ncro-.; the far. 

211 Qualified Acceptance. 
Wheti tlii- '/r, ,/,/<//,, V in express term: 

from what it was oricinaily, it is callei 

drawee ha-: that privileare within certain ....,,„..v,, ... ,„..v 

desi-rnate a particular place for payment, ancl it would not be a "qualified 
acceptance." I'.nt if he made the bill payable at a particular place onh/ 
it would constitute a '■ qualified " acceptance. 

The holder mav refuse a qiiali/ir,] acceptance and treat the paper as 
dishonored by havinir it provested for non-acee|itance. Anv one of the 
followin<r woidd be a qunUfied acceptance: 

d) .\ roMuTtoNAr, .VccKi'T.wcK, (,ne in which the acceptor makes 
the Tiayment conditional upon somptbinc: contained in it, as: " .\ccepted, 
payable out of the fund- of Aitiirv T...dL'< . X'>. ^r}. A.F. iV A."M., A. AIatti- 
•soN. Treasurer." 

In puch a case .\. Afattisou would \\><\ make hims.-lf personally liable, 
btit the holder may refu-^e such accejitanee and treat the paper a.- dishon- 
ored, as the Lodire mijrbt not have any funds in the treasurv. 

(2) P.\t;ttai. .\rfrrT\\rr, '.rli(>re the acceptor onlv ncTees to pi.v part 
of the amount stateil in tlie draft, as; " .\ccepted September 4th, 1910, 
for fifty dollar-;. W. Johnson." 

In this cn-:e. ^nv the draft wn-: 
have to be notifiei] that it was onlv 
fuse if they wi-beil to do so. 

('^^ Arrri'Twri- T'lrANclxr, Ttmk where tlie acceptor changes tie 
time. :!s, for irisiarire, from si:<ty to ninrtv days. The r inav refuse il 

varie- the effect of the draft 
a qualifn-d acceptanee. The 
limits; for instance, he mav $7". tl'.e drawer nn<! indors^-'r wiiild 
arcepted f^r jiart, wliieli they ould re- 



(n Tin; A< ( i-.i'iA.N> K nf some one or more of the driiwiict, but uot 
all w.Milil liind tlu-se that accepted, but the holder may still refuse it uulees 
all iici'cpt. 

In all jueh cases where tlio original conditions of the .Iraft are 

clianire<i, the drawer and all indorscrs are relieved unless they are notified. 
If, after receivinj; siudi notice, they do not within a reasonable time ex- 
yrr~< their dis^fiit. they are lield to have given their assent to the change, 
;iihl tim- rniiniii b'.iiip!. 
213 Acceptance by Otncer ot a Company. 

A bill drawn on an incorporated company should Ik; drawn on the 
oonipanv and not on any olKcer or director. A secretary or manafjinj^ 
dir.ctor of a stock com])any in accepting a draft drawn on the company 
should sijrn the cotiii);iny"s name only. 



It is the same wiih a pai-tiirv.hii. Hnii. a partner in acceptinc; a draft 
or si'tiiiii: a firm note should si-n the j.artnership name only. IJut if he 
gi-ns^his'own under that of the Hrm name it is still the acceptance of 

the firm. .,.,,. „ , 

I'.ut if he accepts simply in hi- own niiine it binds liiiii ]>rrsonaUy ami 

not the firm. (Owens v. Von Ostcr. 10 Cl'.. :!1S.) _ 

One of the rule^ of the t"aiiadian liaiik.Ts' Association requires that 
in indorsements of negotiable paper bv Incorporated companies, not only 
the name of the cnimpanv shouM be used, but also the official position of 
the person siLniim: the name should be jriven. The custom has liecome 
ceneral. not onlv in indorsinu'. but al<o in drawinsr and accepting; bills, for 
the p.>r-^on siffuin-: the name to indi.Mte his official position as in abn(\-e 
215 Time Draft After Date. 

A draft drawn ^o many days or months after dale ditftr:; fr..!n a time 
draft rt//'T «'//(/ as to the date of maturity only. 

$175.00. Rai-i.t Stk. ;NrAT!iF,. .Tan. 31. 1010. 

Ninrfu dnii.'! after dair pay in the order of L. A. Green, at The 
Cnnadinn Bard- of Cnmmerre here. One Thindred and feventy- 
fve Dollars, value reeeived. and rhnnte to the aerount of 
To W. W. Anhkhsox, 

^ha^lorteto■^^■n. D. A. "^^|■T.AREN. 

p p Tslnnd. 




In aoceptini; th.' ulwve draft, wliich is payable " aftor date, ' \\ . W. 
Andorson ncfd ii-.t writp tin- date of ami.taiice, m tin- time when it wtU 
mature is fixed in the <lraft. Iwiiiir iMii.le ])ii.vable ninety days after its date, 
uhieh would l>e Mnv l.t. with three (hivs" frraee, i.iakin;i it Mav ith. 
216 Time Draft After Sight. 

The foil. mill- form is a " time draft," drawn 21st .^1 Sept., I'.'K', and 
pavahh^ niiietv davs nflrr siqht. It was accepted St-pf. 2oth, 1!»10. and 
would, tluivfore. fall due nim^tv .lay^ after that <late. Dee. -.'Ith, and the 
three .laws' rrraee being add.'d make it lejrally mature Dec. 27th, JOIO. 

It was' made jiavabl.- at the Hank of Montreal at Tovoiito. Imi Mr. 
Carter in aeeejitins it." it will be noticed, made it payable at his own nthee. and 
therefore the bank that jtresented it to him for acceptance will now have 
to ])resent it at Mr. Carter's own office for pavment when it falls due. Of 
course. Mr. Carter c.uld have made it I'avabl" at some .irther bank at St. 
.Tohii, 'f be bad wi=hed ti' >]■• ~ 


■i \^» _ _ ^ 







Aiier payment the iiumi'y will be '"orwarded to the Hank "1 Mniin-ful 
f.t TopuT". a's Mr. ()lm>tei!d directed when he drew the draft. 
217 A Sight Draft. 

Ihe loriu in this section is a .«/'//i/ draft. It is drawn by Wray 
■R. S::ntb. of Winuioci:. nn D. A. Ross, of It will be noticed that 

.^^t^n^i-(/ue.<:/li/z/£y,. ///'yyj 

'7 : 


C'irf^n,-i^t£i^c/'r ^y^i^-^ — 


Mr. Smith made it j.ayable to himself, and therefore the drawer and j^ayet 
arc the same person in this case. 


This f ,r„, .,f -Irafl is su,.,....,.! u, !,.■ ..aiJ wluu it i. F'-"''"'- J-' j^ 

tl.m. .lavs' urmr, .-x.'q.t i" N.wfnun.Uaiul an-l Kn-land. it ^m11 be seen oy 
r/u f.-rm shown h...' that Mr. ll-ss t,...k advantage .f the three .ia,= 
OTtt.'o and "a.Tcpteir' it in the usual way. 
^ It was .Irawn Se,,t..,nlH.r lilst. payahle at th.. i'.nnl< - / "l'.'; V^' ^f- 

Winni,-^-'. Imt in a.-.-.'"f-' it M^. R<*s made it payable a. .1. l-n 

AI..iiiiiiil Ui'iriiia. whifh i- all.iwahlc. n .^- ,. 

i, I;,' ;. ,;t..,l S..,,t..,nh..r 27,1,. at>,l will th..n.f,.n. !..> payaM.. S.-p- 

^''^S.^^rnrafts and Tin- Drafts are .ov,.„..,l hv the san,e 
for pr..^s,.nt, and payment, exeept that in ^ewf.nuul!and and l... 
sifrht draft- have n.. days of Jiraee. 
218 Demand Draft=<. , , . 1 1 i, „ 

V d,,n:n,d draft has n.. days af ?:ra,-e allowed. ^^')'' V^y^!'^^^ 
d..n,an.!..h that is. witlm. tlu- time alh.v.d hy Statute L.r the a.-. . 
of .Irafts. an.l if not then pai.l it nmst \. treated "'.^^l'^''"^" ;"'^^^,^'; 
Bills of Exehance Aet makes no distinetion iK^tween drafts when it reserves 
^:t ..:in.w.... tlf.. n.a-..nah!.. tin.,, of ■..„ days ait.. F-^ -■"' - 
whieh to determine whether he will hon..r the drawees draft ar . t 1 u 
ere.litor has no l.^.d authority pivc-n hun to foree the -lehtor to, p > 1 
dema.ul hill .iu hi... on presentment and demand, or to be saddLd ^^u\^ 
protest damages. 

jjsoonoo. rnr.MT, Ont.. Feb. fi, 1010. 

' 'on dnrn,yl pa,, to the order of A. D> Cew at the SovcrcWpi 

lUul here. Tiro Hundred and Twenty Dollars, for value received, 

and rharge to aeeorint of 

To n,K v.. SMrru Co.. H- I'- ^1"""^- 


With a dnnand .Irafl ^trrrplnner and i^iujminl are rxiurlcd t,^ take 
plaee at th.. sa.u.. tiiu... Th'' draw, r. of cour.-e. has the ndit t<. giv.? time 
for payment. In that ea-,- it w,,,,!d 1... "aeeept.^d" as other drafts. 
the date of a.'C.ptane.. np-.i it. It would not eommenee to draw interest 
until it was pr..-..nt...l. hut would .vHmnenee at that date to drawtivr per 
eent. The Statute ..f would also eommenee t.i run tr-iu t.lio 
date of aeeeptan.-e in favor of the aeeeptor. , , r • * 

"In ensn of ur!r<>ncv. sav. for instan.-e. wlirro a <l'iiiinid draft is a_t- 
ticlad to a lull .'f ladinir of perishable froods. a more speedy aereptanee is 
re<piired spe.-ial instru..ti.,n should ho ffiven, as otherwise the drawee 
would l>e instified in elaimimj. and thr i.artv presentinir th.- hdl m frrnnt- 
inir the drlav uirntioned in Scrti^u ^0 of the ,\<.t." fMcT.aren. pa-e •l?,^^ 
220 Discounting Bills and Notes. 

\ hill uiav he diseountcd riilwr hrf,.-, or a.ter aeeeptanee. Tf dis- 
count...] before ae<'e,,tanee it is done .solely .-n the credit of the drawer or 
indorser. and if it is .lislumored by non-aeeepfnnee an iiumediatr riLdit 
of reeoui-se acainst the drawer .ind ind^Tscr ao,^rue> to the holder, without 


for the maturity of the paper. 



Tlip (liscoiintinp of a draft, liofarp aoM^ptnni'o is nnt "Kitinp," as in 
Mtrcliants I'.ank r. Darvouu. U. J. (J., 1.1, S. ('. n2fi (lSn8> if was li.'ld 
that tlic Rnnkirip Aot dnos not prohibit a bank from taking' us security for 

ii'lvanci-: tile tiiin-fi !■ nf :i ci rtniii 'li'tit. 

221 Collection of Notes and Bills. 

Absolute coniplianco with the provisions of tlie iJills of E.xchangc Act, 
boili as to |inscutiiitnt for acci'ptnitrc, and for {nujmcnt, and notice of di*- 
bonor if not acfi'ptfd or not ])i!id. as tlic casu nuiy Ix*. is compulsory to 
pri'>(Tvc tbo rifrlit of rocourc airainst indorsers, and against the dra\v<'r. if 
the instrmiiciil has Iwcn negotiated. 

An inland bill that i.s not j)ayable in the Province of Quelx-c. and 
wliii'h has not been <liscounted or ncjL'otiated should not hi' protested for 

Notes and acceptances! made payable at a certain place fthonld be pre- 
sented there for jiaynii'nt on the tliird day of jrrai'e. even if there in noi 
iiii' rser on them. 

if the hill or note is payahh' at a hank, thrn if iiiii-i he |)r( sentcd duriiig 
bnnkitiir hours; but if not at a bank, then the holder has the ordinary btisi- 
ness day for presentment. 

If there are indorsers on the pnjxT. and it is not presented f'T pay- 
ment on the thiril day of -rracc. if that is a business day, the indors(>rs are 

!f there are r\n indorsers, then it need not necessarily ]>e ,tresented on 
the date of maturity, but must Ije presented for payment before any action 
is taken, or the holder would likelv be saddled witli the cost.s, and possibly 
lose tjie interest after maturity as well. 

Tf jiaymcnt is not received the paper mu=t be treated ns rJixhnvnrrd in 
order to preserve recourse asrainst drawers and indorsers. .\s t. > irlirn pro- 
test i« compulsory see "Prot(>sts when TJequired." 

Of course private iud'viduals wh.. mav he eollpctim: hill- and Tinted Iti 
th'ir I'ossessioti must oh-erve all thrse r<'quireinent< just thi^ same as the 
banks do. A dnmaud for pavment must be made on the Ihtrrl (Jay nf qrarr, 
and tliev must have the paper readv for deliverv if pavment is offereil. other- 
wise the indor*er« are free. Tf payment is not received it is absolutely 
eosential that nofirp of dishonor he sriven the indorsers, otherwise they are 




230 Purposes of InJorseraent. 

lu,l..,M.iM,nt< niav I" .nli.T (1) for tl,.. purj..,..' of nrp.tiation, (2) for 
a.lditional ..•••urity, {:'n f..r tho aoknowk'^nnvnt of a partial payment of the 
iii:<iruiiu'nt, ( 1) or for iii<nlifioation. . . , • 

In the absence of evi.l.'tu-e to the eontrary. a p.Tson wnt.nfr hn name on 
the back of a nev'otiable instrument i. prrsumcd to be an uidorsor. aiwl writ- 
ii,.' 1ii< name on tlie faee a mnWr or drawer, as the ease may be. 

•That a iHTson in^Iorsintr a note before delivery to the payee is an 
in.lorMT onlv is su.taim.,! bvH.- .-ourts ..f Qn-W. Nova Seof.a. Manitoba, 
ami tlie Supreme Court of ("ana.l:.."' ( M<-T,Hren.) 

The drawer cannot sm- an in^lorser. ev.n it hr makes himself th.> v-xyiO. 

231 Forms of Indorsement. 

Tl.en. an. Mv.ral wav^ in -meral use of indors.n? a note or <i^p^^- ^'' 
conf..rm to the requirement.s of the business eomumnitv '" f,V'"""'nfr".';.t n!^ 
complex and sometimes the opposiuL' financial luten^sts of th. eontractinff 
parties. The following are chief, and parties who may not Ik- familiar with 
them can readily un.lersta.,.1 difTm.nt uses hv noticing the wording ,n 
( ,ii'h I'ri-c : 

232 Indorsement in Blank. 

Th, iKini. written across the back f.f the instrument as: 

Jfimcs Sinilh. 

Thi^ in.lor^rnirnt ImLU- tlic in.1..,-,T liable for payment, and the note or 
draft mav W .ran<frrrr,l thnvafier '^imi'ly bv delivery. Tt is tbe form in 
(■oiiiini>!i u^r. 

233 Indorsement in Full. 

The following arc usual form? of indor=ciiiciit in full : 

•• Pay .1. Murray ..r ^rdcr." 
Jiimrs Smith. 

This indorsement not o„lv the title of the note to .T._ Murray and 
],„ James Smith liable forpav.nent if the make -fails, but ,t also makes 
t compulsorv for J. Murray to indorse it if he w.sbos to tran<f.r it to an- 
other person.' Tt is the safest indorsement, because if the note were lost no 
one could c.llect it but the ind..rsee if he had not indorsed it a-uu .n l-lank. 
"Pav .T Murrav" would also h- an indorsement in full. 

■ Vnoth.T form is 'Tav to the ord.r of .T. Murrav," wh„.h would rom- 
p.l bin, to in.lnrsr it l.^fori. re.viviuu' the u,..,„ v, thus .orunmr pro^.f of pay- 
uient to him. 


Sl^OTlABLK I'ArElt. 

234 Restrictive Indorsement. 

This iii.lorscmint not only transfiT.i tlu' litlo of the note, but it restrioU 
pnvnu'iit lit A. t^anilcr^.in. It di>t-!i not uli.-..>liiiclv |iroliil)it the further trun?t'iT 
of thi' liill, hut if i.* oviilcnoo to third purtii-!* llmt other tran8a<'tion.s may b<> 
dipmilinc on it, iin<i tlnrefon- sulnt queiit bohliTs take it Buhjoct to the 
eqiiitii'^ llial inav Imnlin it wlim it ri'i-iivc.* ihc "n strict ivc imlorseincnt." 

Thcri' ari" various fortn.s t'<»r this kiiwl "f inilorw-tiicnt, a* for oxaiuple: 

"I'ay A. Suniicr-oii only." 
Jaiin-.i Smllh. 

or "Pay l» f'T the aceounf of I!." or "I'ay I) or order, {..r eollectinn." If r-iich 
bills arc further tran>ferrec|. the hol.jers take tlieiii merely as a-jents of fho 
first indorsee, and not as "holders in due course," and are »uliject t ) the saino 
liabilities that the first indorsee bail. 

A note or bill payalile to hrarrr, or to a oeriain person or Inarer, cannot 
have its neirotiability restricted by indorsement, but those u.sing the word 
ordir may be -o re-irieted. a- >houn ibove. 

23G Indorsement Without Recourse. 

This indorsement, called also "Qualified Indorsement," transfers the bill 
but the indor-er evades liability for payment. It is simply for the purpose 
of negotiation, and ni>t security for payment : 

"Without recourse." 
Jam's iiiiiilh. 

The banks, of course, would n.>t ordinarily discount paper indorsed in 
that way. Xosulwcqiiont holder can iiave any claim acainst sueh an iii.lor-er. 
Thi.- indorsement is al.-o written: 

"Without rec'iurse to nie." 
Jamrs Smith. 

In "ases where a note is endorsed for the maker before its delivery to the 
payee, and the payee -ub-r-imntly transfers it, he may free himself from lia- 
bifitv by indorsing.' it "Without Recourse," pluciiift his indorsemint abo^e 
the first indorsement. 

238 Guaranteeing Payment cf Note. 

"I herel)y jiuarantee the j-aynient of the within note." 

.James Smith. 

In fliis case ■Tamos Smith docs not incur any greater lialiili'v tlian ho 
would have incurred by simply writina; bis name m the back of the note, be- 
cause everv indorsor by his indorsement cruarantces the pa>Tnent of the paper 
to subseijnent boldc r-."if the provisions .>f the law respecting presentment and 
notice of dishonor are complied with. 

Tn ttio jilnne itidorseiiieiii of iruaiaiil^, prea<!ntmeut anil noTioc of ai3r 
hon'ir are essential. 



Tli<> followiufT form it pn-fcrablf ami bus ineaning: 

"F'ir valiif rri'fivi (1, I licrrliy pinrmitw iiuyinciit of llir within nolo, ami 
waive prtiti-it and nutii-c tluToif." James Smith. 

The above irinrnntee .loe» not waive due presenlment for paynicnt, wliich 
if not done would free him from liability. 
239 Guaranty for Collection cf Note. 

"fir value reeeivcMl. 1 in reby suaruntt'e the eolleetion of the within note " 

JaniCi SmJh. 

In this ea-c the -ruarantor is ni't liable until a h'L'al aii<tii|.' i )ll('ft by 

8uit has failed, and for that reason in niiiny ca.-^es it would be better for tlit 
guarantor than a simple indorsement. 
240 Indorsement Waiving Protest. 

■ I'r. -eniiUii'" and protest waived." 
■hlini -I Smilh. 

T\w form 1.^ u-ii;illy . in'.loved wlien dnne Iwfore maturitv to prrvrni nso- 

les-; protest. . . 

The following form i^ in L'eiural ii^c wlien d-ino at matiirity to .save cost 

of needless jirotest : 

"T hi n hv aeoopt notiee of non-i>nyme!it and waive protest." 

Jamrs Smith. 

241 Indorsement of Partial P.^.vment. 

It is usual in indorsinir payiiiont> on a note to pive the date ami amount, 
and if .lilTerei.t oeivon- reeeive tlu> nu.ney, the initials of the person .should 
be jriven. 

Reeeivrd on within note .Ni-rr. 'k V^V^. Ten doPars ($10.0fi\ 
S. pt. !••.. r.tlii. Forty Dollars ($40.(H»). H- A. 

In eases where the question of outlawing: is possible it is advisable to 
have the maker indorse his own payment, as 

"Paid on within Oot. 10, 1010. $L'0.nO." 
.7. Parks. 

Tn .-ase ns abovo it would be impossible «ulv«equently to deny malntis the 
242 Indorsement of Identnlcation. 

"W. Carter is herein identified." 
.Jami'n Smith. 

Tbi- indorsement identifies the holder of the paper at the B^n' without 
making the indor=pr li.ible for paymenr. 

g2 NEaOTIAlil.i; I'Al'EK. 

243 Specific Indorsements. 

"Fur CDllcction only on afccunt I'f 
James Smith." 

This is a preruntir.narv measiiro used to uMuinl asraiiis' io:<s in sc-idiiiE; the 
paper by i)0<t. or tl.r..ugh otluT Laiuls. Otlicr wirJiii,:: of .spcci/ic iiidorMmcnt 

woiild be: 

F<ir discount only to cndit of 
Jnnirs Smith. 

Fur deposit only to credit of 
Jiimi'S Smith. 

For dept>sit only to credit of James Smith 
David .Jones. 

Thpl:i>t .if the above forms would answer f^r a flerk who had not anthor- 
itv to indorse his employer's name. 

If a bank wore to j.ay eash in any of ;h.:- abov.: or similar cases, it would 
do so at its peril. 
244 Indorsement Consenting to Extension of Time. 

••Pr.sontnuut. denian.l. pn.t.v^t and notiet. waiv.d. an.l consent iriven 
that time of payment ..f this instrunient may K' exuaided without pn judieo 
tomyliabilitv;H.mlor.-er." '■ H . .<m,//,. 

248 Indorser's Implied Contract 

Wlicu iho i.i.^r.- oi- ill.' li..ld.r of a m-oiiahlr instnimetit it by 
in.lorsement, be, iii effect, agrees in f;m,d faith with all the sub.sequent holders: 
(1) That the instrument it.self is irenuine. and all tbi' names on it previous 
to his own are eomoetent to contract. (-J) That be h.i. a i:-"! tith- to the 
bill C!) That he is competent to contract. I 4) That the maker will jiay 
thcbill at maturit\. (T.) That in ca^e the makor fail> to pay the bill he will 
1 av it himself, providing he does not pive notie, m tlio .i.ntrary iii th, torm 
of indorsement be emjdovs. and providim: the hold.r coiiiidies with the law re- 
latinc to nejrotiablo instrument.s. 

The indorser on even a forjjed note is liable to -'a liobler in .li'< .'oiir-e,*' 
althou'^h the maker whose namo was forired wr.v.M not \n- liable. (( iioipiette 
r. I.Thiire. (). U. I'.'. S.C. .Vj 1 . I'.'nO.-) 
249 Relation Between Indorsers. 

\Vhere two or more persons indorse the |)apir at thr ^aiiir tniie as 
securitv, and the maker fails to pay. the h.dder may ^,ic all: or Iw may sue 
and recover from either om- he thinks Ix'sf, In eas<> he collects the note from 
one then that one mav collect a proportiiinate shi're from each of the others, 
'f there wen' time of them, he could collect one-third from each of the other 
two; and if only two. then he would collect liiilf from tlie other party. 

But if the indors(.ments were at ditTcreiit dates, as they naturallv woiibl 
be where pajier i- indorsfd as it is ♦-nstcrred. the liabilities ate alto<:ether 
diffcrc t. In fact, where two or mu.e indorsers are on a bill or note, each 



(\\:u\i of Siite) 

Jniiies Siintli. 

Pt'tiT .lonos. 

Hi'nry linwii. 

indorsciiiriit i- iIcchkhI t.> luivr Ix'cn ill tin' nr-'uT in wliidi it iippvar.- on 
the pajxT, iiiiiil ilic I'ontraiy ia proved. Tlifroforo, wbero the indorsements are 

at difTcront dates tlie first iM<lor>^cr i- secnrity for all after 

1 i him, thi' seeoud is socurity f'H- tlu ihinl, 'lir following, etc. 

If the maker of such a note faihd to pi.y, the holder 
eonld sue all the indorsers. or any one of them he miirh' 
ehooise. Say there were three, a> in the form shown • 
this pa^e, and the hol<ler smd and eolleeted from all, one- 
tliinl from < ilnn. in iliat ease, Jones and Brown 
eould eolle.'twhat they i)aid from Smith, tlni- making 
hitn pav all. Ix'<'anse he was surety for hotli. If Smith, 
houcvc'r. pfovid t.. U' insolvent, and .Tones and F.rown 
had til iiay the who!, ,lebt, then lirown would eolitvt what 
he paid from .foncs, because Jones indorsed liefore him, 
and was, therefore, his surety. Jones woidd have to pay 
tiie whole debt, ami look to Smith atid the maker, who are 
Uith liable for it to him; and one or the other miaht 
sometime U' in a position to ])av, Tf Smith were sued 
either by the hol.jrr or one of the subsequent indorsers, 
and jiaid the amount, he could only look to the tnaker 
of the note. 

250 To Hold Indorsers Liable. 

Indoi-scrs <.n nc-otiable paper are not debtors to thehoMer of the paper, 
but merelv sureties tindc" certain condition-. To hold them liable for pay- 
ment en a note or bill tin s not jtaid at maturity, it is iu\-essary: 

1. To present the note or bill for payment on the ihinl day of jrrace. at 
the proper place, and duriiiir iMHine.— hour-. If this is not done the 
indorsers are free. 

2. If it is not paid, the papc r mu-t be treate(l a> (lislioiinrcil. It it is 
a foreiirn bill, or one payable in the l'v><\ ine,. ,u" (,)ueber, it iMU-t be pr.t, -led. 
See '•('olleeti.m of Notes and llilN." 

3. Notice of the dishonor nuist 1k' forwarded ti> the drawer ami indor-ers 
on that (lav or not later than the following business day. See '.»7, B. of Ex. 

This notice must contain the followini: three facts : 

(1) That the note or bill (niviuir its date, amount, name of maker, in- 
dorsers. etc.) had Ix^m presented for pavnient; 
(-2^ That ]iayTnent was refu-^ed : 
(:',) That the holder looks to him (the ind' ^er) for payment. 

251 Notice of Dishonor. 

When a bill i- di-' or-orr,! bv non-acceptance or non-payment, or a 
promiss.'rv note is di- lored bv non-payment, notice of dishonor mav be 
piven immediatelv. bi ..■-lion cannot be brousht nntil the followinc; day. 

The notice of dishonor nniy be sent by a notary, or the holder himself 

mav send it. . . 

\n oral notice is aU, l,.L'al, but it i- Ivtter that it be in writma:. 

Tt may k- s<.nt merely a.-> a h tter. but >tatin- clearly tb..' three facts above 
men'ioned.' The postaL'e must be prepaid. 

If the letter is not registered, it would be advisalde to have a witne^ss to 


NEOOTIMil.K r.\l'KK. 

it. contents. an,l .l-Hv.rv f -!.■ ,.o.t-o«ieo. or have --'- r;-;- ^"^^JZ.^^ 
usilJlv .i;]iv.'-;his notices at ,1... p..-t-.,.li.... l.imsolf so thcv would l. no 

^'"1?'!;; in.;::Srha. .1.1.1 an .lan.^ t,. l,i.,n,v .W noti,. ..f 
.li-uii;".;;:, J:^ .-nt to tl.. a,;.!.-.... ^U if he Ik. n.. ..v,.n .„.h .1- 

"'"■■'V'ln: ;;'":!" in;:;;i, >.......-. >- > '« 

not re'aeh the drawer or .oud'.t to he .•harire.l. 

., i-.v wiiiv.T ..f i-*i- . ' i'h.r -XI- r uui-l.e,!. 

icnr;:::;L';:s:t^;":::n:=t.i..l.""'M-'^- '■'-'■«-' '- 
r.,,,v ;,,;,, «"™u .i.™ 1-.- - 1- ■' »'■■■■""•■'>■ ""■"•"' ' 

"'1 '\t the tilaoe MX'<'ifie(l in the iiaixv. if any. 

: n alertain'hank the ,a,er 1 t ..h hank ,.n '-;-;> 

If at the olfiee of the .uaker or ae.-..,,.ov ,t n,n-. h. th.., 

'TrHno,h. f ,-n„n, i~ <, iiie.l. then a, th. address of the 

'"'■'^'Z "JfT'illdni^ is"m;.ti,.n.d in -h. hill -hen at his .la-e of husiness, 

'"^'^'"n eirenmstaneo., hevond the eontrol .,f the h'dder prevent presenta^ 
,ion r;;.;;; Zo, it is exen..!-. bnt it .nust he prc^ntcd a.= soon as the 

^^°'^^: h^^er 1.S lost his ...nrit. w ^t .^nti,. ;'.;; .;^;.^;;;'; - 


•li the law rfxmires. and niiiny an i 

id^r^er ha- paid 

r ROTES rs. 


1,, ,va. l.,allv ,li..har,..l i. il.c h.ldcT fa>ln., U, cn.ply wuh ,h. legal 


254 Protest, When Required. . . isUa nf 

\ s.Hue trulc- ..V n,.i familiar will, the provisions of our I.i Is of V , ; s,.::.t t,. ,,r„u..uig ...g-tiable papor for nou-acc. ptance, 
in ^ no -pavnunt a ,rr/.'//m ropy of tho Act is here given: 

i;:;rde;t "n-l r ,he a,...ep.or of a Mil UM'- i' i> -' ■'— '•^ ^^ P- 

"■■' '•'■ \^heieatT.i>'n bill, appearing on the face of it to Ix,. .uch, h.u, been 

d;.hnn, Id bv n ™ptan'oe. it inn.t be duly protx..ted ^^ "— -1"--^- 

• Vb.r . a for-i.^i .ill wlnob ha. not be-n nreviously dishonored by non- 

a..cptan;; is dLbon,.n.,l l,,v ..m ,,ay,n,..,, it ,n,.r b,- dnlv protected for non- 

'"■■"■' Wi„.,v :, for. i.n bill !,as b.-u a....ep..d nn'y as ,n ,,ar, it .nn-t b. pn.- 

'^^^^'•i^ : WilSmi. uM pn,to.ea a. bv this -e.-tio., r.,,ur..d ,h.. draw.. 
ai,a liidorstTs ai-o di-^.'barirrd." Section 11 li. -r ,, i i i,.,. thinks 

Where an inland bill has l>een dishonored, it n>ny. ,f ,h.. n.ld. th.nks 
fit be noted and protested f-r non-a..(...i.tan.v or n.m-payme -t, as the ca.e 
,m;v be but it b .11 t,nt, ex,-, ,.t in the Provinee o,' Quebec, be neoessary to 
ma\ t>e. nut it .lau ■' • L , . , ..nsi-rvc the recoiirw acamst tne 

note or protest any -u,-!i bill m •■rd.r to pi(>, r\. in, <^ 

.Ivnw rr or ind,jr-er-." ( Seefion ll'>.) . , -r. ■ ^t 

, L c s of a,, inland bill drawn up,>n any p.rson m ^l"' ^7>^^^ 
,,,„.,.; „r pavabl,. or a,-ept,.d at any plaee there... >n ;';; ^-'l ;;^,;; J 
for non-ae<.eptanee or n,.n-,K.,vn,ent. as the ea^e mav be, ='" ^f - ';.' '^ •;^^ 
,he parties liable on .In- bill o.Iht ,l:an tl,,- a.^-opfr an- ,hs.-h.rL.-,l. S' 

^^^- , . . • 1 1 ,,.1,,,., ,, i,;ii ,1 „- ii,it a.i.'i'ar on the 

•• P.s in tbis -e,-f.,vn provid, d. wIm-i,- a I, ill ■ . ■> n t a], 

f.„.,> of i, ,o Iv. a foreiirn bill. prot,-s, thereof in ea^,^ „! d,-bono,-. except .m 
in tbis section pr,.vidcd. is nnneee^sary." Section 114. 

"Wh,-re til ac.ptor of a bill suspends pavtnent h fore U u,ature> the 
hol.ler n,av cau.. the bill t„ be protested for better a.a.nst the 
drawers and endoirsers."' Section 11... , 

Wlun a bill is protest,-d. the pn.te^t must Iv tTiade or noted en thf day 
„f 1,^1 inor. If 'for n,.n aeeeptan,. it n.av be anv -- ^ -^--^Vj;;- 
was rcfK-,Ml, but if f.T non-p:,vnu..t ,t ,,,n-t not !„■ .,n.,l nfter tbne oelocU 

" ''VfJu";;;"; be ,.r -..,1 .ben^ it is dishonored, or at sonie other place 

in Canada wi.lnn five n.iles of ,l,o ,dace of pre^enttnent a,.d ,br.bonor ex- 
opt h, s .,:h ease where the bill is pr,.~. t-.d tbn.u. 1, the p,v.-ofi,ce an,l re- 
,ne bv .St dishonors, it innv then U- ,>rotes,od at the place „ wlu.di 
;;" n.,,n-.i.1 not lat.T than the dav of its return, or the next ^ dav. 

"""''t: X,'wfoun,llan,l an inlan.l bill ,loes not n,. d to he protesVd either for 
„„n-acce,.tance or non-pnv.nent. F.ut forei... bill^ .nt.t be protested for d.s- 
iH.por thi' sain,^ as in rnn.ida. 
255 Contents of Protest. , 

\ pn,n>st nu.^t fnin a copv of the bill, and the protesv must be 

.i.Tie,l bv the nr.tarv inakinc it. and -V^'-]f'-- 
"^ (a) The person at whose rcpu-t tb,- bill is i>roteste,! ; 


NKl.nllAllLi; I'Al'l.U. 

(b) Tlie date and phiLx- uf protoBtj 

(v ) I'lio cau.-c 111- nusiiu fur [irotfftinj; tlir liill; 

(d) The demand made, iiiid the answer given, if any; or, 

[!■) 'I'lic fii.'i ili;it the (irawiL- nr ac<rpfiir conld ni>t bo t'-mud. 

25G Notice to Indorsers. 

Toronto, .laniKiry Id. I'.'IO. 
To .1. \V. .louos, llramptdii, Oni. 

Mr. .I.iiiii SiiiithV Proniissorv N'utc t'm- $('..-.. "(0, datcl at 
i;rainiit..n the Tib d;iy "f OctolxT, IDOii, payable three months 
niN r .iair ti Ihiiiy Diown. i^r order, and indnrsed by you, was this 
ibiv, at I lie r(i|ni -t "I' licnrv I'-ruwii. duly priitc-tcd by iiic for non- 

M. A. Brown. 

Notary Public. 

Wiien an ind^irsi-r rci-iive-; a notice ol' proioi. it" there i^ a ])revious in- r on thi' jiapcr, he shonld immediately forward the protest notice to 
sucil indor-cr, in onlrr to bold bim liable in <-:i-^c the bolder ne^'leeted to 

257 Noting lor Protest. 

Where a bill or note cannot be jiaid on date of maturi'y, it may bo 

"noted ■" for prot-.-t. when it will be jield over a day. This is done by 

the notary |)iiliic. it' n<ii then paid the pajier ihunI be protected the next 
hn-iness day. 

258 Fees Allowed for Protesting. 

Ill Oniario the fee, for ,;'-i,i,.siini.r a note or draft ..r eheipie is TiO cents, 
and 2.". cents for ca<di notice sent to maker and iielorser-. mid amount > t 
|)ostai;c actually expended. 

Pre.sentinir, iiotiir_'. and yirote-t, $1.1)0. 

Kach notiee, SOc. 

I'ostajre additional. 
.Neva Scotia and rriiice Kdward l-land. U.S.C, Chap, lio, Sec. 7, S. 

Protest for local liills, .">0c. 

Eacli notice. 2.")c. 

Protest charires for bills n<it liK-al, $2..''iO. 
Xe>v r.vm vi.-k.R.S.NM?.. Chap. !><«. 

I'rosentinent and notimr, 'lOc. 

IVesentncnf. i)r<pt(.»^t ami notices, .$1.00. 
Manitoba, charires re-j-nbiteil bv iisriiie. 

Prote-^t. i^i.on. 

Fach notice. ."iOe. 
Postnffc extra. 
.\lberta. S:<s!<:itcbew:in and X. W. Territories, charse^ fl;overned hy iisaffc. 
Protest. $2.00. 
Each notice. oOn. 
Postacrc nctnallv piiid. 




British ('uUuul.i:.. .•bar.i:*- r>ytn..a Uv'^l^r^^^- 
]>r(-(Utinriii, i.rnt.-t iind uoticw, ^-••'U. 
I'ostat:'- ill :i'Mi'i"ii- 

S(H«ti.m l:2:i H. "*' l'-^- •^'•'• 

260 Form of Protest by Majristrate. 

^^A .-pv ..1 Ilir hill ..,■ n..i,. ana u,.l.n-rn,.nt-.) 

,, ,. a.vof inthoyc.;u-.,f i;..., 1. A.I'-. "n^'V^ 

of business), ni •i"'l -' •"^"'- .rivimnf) th.vrof. nut.. 

or his sorvant. otc.) ,li^ ..nun..! y,...-. ^^ J;^^'^^^^^^ ^,., ,„,;,.„ 

of the IVaoo, a, the n ,,"'-' .t-v...UKn ,• 1' ' - ^ ; «^ ^ ' ^^^ -^J,,,.,, „, 
aa protest au-ains, th. .Irawer a.ui '";'■'-":' ,",r„'.e , an.l all -lu-- 
aJptor. .Irawer and '-1''--^; ,";;.;:; ^..^..'^o^.lhan.e a,.l all 
parties thereto an.l there,,, eoneert, •,!. f • '''' ^ ' ';\ ^^ ,, ,„„,. ,,., 

(Protested in duplieatr.') 

Si'_aii",t\ire of witness. 
Siini.itiire and -eal ■>{ the .T. P. 

(Cha;>. 110 K.S.r.^ 

,„ X,.wfo„ndL,nd. where the seryiees .,f a ""!■'"• "-";,;„';,:;;:;";::'lj;: 

op.n". :: a ,>,-ete-t. The followin,^ is the .-tatntory fornr. 

ard .r. K.. do i-rote-t th.. isaid hill ef oxehanue. 
J. K. 
<"•• fT- ,„. (Siimed) .\. V,. 



262 Bank and Gener.J Holidays. 

1 iic t'.illiiwiii^ iirc li'jral liolidavs. nr mni-jiiriilical liavs, in all tlu' I'rov- 
inecs of Canada : Siimlavs, New dear's l>a_v. (iciMl Friday, Kasttr Monday, 
Victoria Day (.May :.'t), HxniiiiiiMi I >ay (.Inly l.-t), LaJMn- Kay (lir^t Mon- 
day in Scpti'inlicr j, Cliri.-Iinas 1 )ay. Tin hinhday of thf nijriiini: Sovcnij;u 
(or the day fixed by prot'laniatiou for tlii' ccdubration of tliu liinlnlay ), 
Thaiiks;:ivinf: Day 'any day aiipointcd by procianiatioii). 

AVlicn New Year's, Chri:'tinii»5. Kinir's Birthday, Victoria Uay, or Do- 
minion Day falls upon Sumlay, tiien the day followinfi is a public iioliilay. 

Aliicria. Saskntciic van. X.-\V. Territories and Yukon also have the 
above days, witli A-h Wednesday ;iii'l A:-l)'ir Day ( second Fri'iay iu May) 

Aiiil in the Province of Quebec all the above days ( e.Ncept Ariior Dav 
and Ash Weilnesday) and al-o tb(> following': The l-j|iiphany, the Asi-ensiou, 
All Saints' Day, Coneeption Day. 

i'roniissory not"s fallintr due upon Sun'l.ay or a holiday will leaally 
mature on the day next followinjr whicii is not a holiday. 

The time limit also of any contract cxpiriiiff or tallinir ui».n :i iioVuhiy, 
the time so linut''d shall extend to, and -udi tliinL' may be ilnnc in, ti.e day 
next followinL' wbieh is not a holiday. 

In iuiy of the I'rovinees any day apjioititi-d liy i>roelamation of the 
l.ii lUenant-rioviriMr for a jiublie holiday or Thanks;rivin<: would be bank 
h"liday~ in -ni'li Tmvinee. 

<'ivii' Holidays, lieing merely hx-al, arc not bank or general lioiid ly-. 
hence ne<;oti:;]>le tiapcr and all otitside contract- must be attciidcil to. 

l';i-ter "Nroiidiiv H a bank lioUda '. hut riot a L'eiieral holiday. 

263 Legal Holidays m Newfoundland. 

Siiiiilav, Aew ^'eai'- Da\, (i'-eil |-'ricl:iy. ( 'liri-tni;!- I lay. X'ictoi'ia Day 
f^fay l'4). .\ny day tlu't niav Ix' |ireelaimed as a holiday by the (lovci'uor- 
in-Conncil by notice in the ■'IJoyal (lazette." Amonir these would If tlm 
KitiL'"- Hirtlid:iy, the date of the coniiuemoration of which is irenerally pre- 
scribed by the P.riti-h authorities. It is not necessarily Xovend)or the llth, 
and is i^-cnerallv in .Tune. 

C'lAi'TId; IX. 


270 Chartered Banks. 

.\i ( 'eiil'eilenit i. n. l^i'T. !tie lin-iness of biinkinir in Canada eanie under 
the jurisdiction of the !■'. di ml Parliament, and onr Canadian bankinii sys- 
tem. t:iken nil in all. is undoubtedly the flne-t in the world. 

Tlii- brief rrx^ime of the orcraniziition of banks, security of bill iiolders, 
and the jiractical work of bankin;: a- It touches traders, is <riven for the ini- 
fortnatiin of the public rather than for tlie bankinsr fraternitv. 

All banks orjranized since Confederation have taken their charters from 
the Dominion Ciovcmment, tind the banks previously orcranized, i ither by 
Tmiierial or rrovincial Parliaments as their charters expired, have beon 
rrnev.Tfi tiv tla T>:ii::tiion • (ovfTnment. 

imoi:I'<'i;m'|"n '"'■ HANKS. 



Private persons or corporati<.ns ...ay .^..pi;,'o in .W b,^ " -'"'"p'^' 
b,it ..ainot -Juo papor currency. n..r ,.s*. the word ;• I'.ank.' ;• Com; 
,;..•• I)!r no,Kse," " Hanking As.>ciation," " In^tuuuo^ 
or any sin.ilar ter.a on tl.eir sign, -r in o.nn.v.t.on w„l. tl..-.r na.... ... bus.- 

°'" Tirindtv for violation of this So..,ion of ,lve Act i. a fine not cxceed- 
i„p ^\%ior imprisonn.ent for a tern, no, ..x.......l.n.' hve year., or both, in 

the (li^iTction i>f the coi.rt. 

972 IncorDoration of New Banks. 

$.",00,000. divide.! into ^har.'. of *100 each. 

\t least $2r.0.000 of the $500,000 n.nst 1k> paid m, ^vhleh ^umm actual 
ntonev. '.u.stl te,..,.rarily .U-n.^ited ."ith the M.nt.t.r of l-ntatu. ....d 

'''""^We";u::i^-n..t be less ,h:,n fiv,- rn.v..ion.l Direotor. n.r n.o.e than 

"""■ Tl... bank n, not .nuuncnc. bn....- - i.....n„..s u,„.l it ha. re- 

-^-'^lr s: 7Tz^^£ :^rts^ri,.... wi... the 

„i,„.a ,n,.,l the tinte for the f """' ;' • ' """'^^ ,,:, ^^/A,. J.te circulation 

^ V ■ 1 „ulu which are not renuired to deposit anything as s...M.rity. 

""' t rt; c anors f all Z banks ..xpire at the san.e t„.,c, no 

In ( an,i.U ' " '^ -j,, j,,,^^ ;, ^.^ years and renewahlo 

affairs arc wound \\\k 

273 The Business of Banking. , j » /„ „„,i ;,,n1ndp=. 

;:^r c::s,;;^s;:;:r:a;d tn';:.:;;:v:iy\i;ai,^ in .n^e, ^nd d.. 

nTtlt^^-avahl.. in ...oney. domestic and T.n ,.n. p,.bl,c sc..,, et^. 

The means at its disposal arc: 

1. Tlic capital paid in hv the sharchnl.icrs. 

'> The deposits of its customers. • 1 ,• 

?{ The amount of its own notes it cank.'cp out .n circulation. 

4' The monev in transmission through it. 

Th, hXred bank- are prohibited fro„, cnL-a.-ini: u. trade, or deal.u^ 
in ..r ,ri d- or lendin. i.onev ..t.on their security; hut they ma," take 
Z -rolLrnl securitv for loans, on real estate, chattel mortgage. 

.arel..,se receipts, bills of l"^'-- _--':-, ^irhj^i^l^'yi^i.t-securitv for 
Thi'v caiiunt triKc a ii.oftgagf en :• :. - 


a lo:iii, hut iiflcr n. l>aii has bo.-ii in:i,lr tli.v ni:i,v take u m-i-t-;ifre as collat('ral 
security. 'IIm \ unwt not lend money ujxm tlnir ..wn st(»ck, or the (•a|)ital 
st.K'k o"f anv oih.r Canailian hank. They eauiioi hol.l real otiiK' that coiiiea 
iniM ihcir liau'ls for iimic than >. ven years except for use of lli- l>;nik, unlesa 
the time is extemled hy ilie Trca-urv llManl, u-hi.-h in any .v. lit iini-t .lot 
cxeeed live years lonirir. 

iJanks may i-iir as mneh note curreney as the requirements of trai'ie ,le- 
irinii'l. lip to the full am. 'lint ..f their iiniiupaired jiaid np eapital. 

Notes smali'i- than *.'.nii aiv i--u. .1 hy the Domini'.ii ( ;mV( nininit. Imt 
the $."..n!i note-;, and "Vrv that in imiltiphs of five-, hv tlu' l^ank-. 

The (Joverninent of Canada will pay frold f'T l>..iuiiii.iii iio'i - \\hcn 
l^rcsented at anv hraneh otfiee of the Receiver-deneral. 

Tlw vari.Mi's haiik^ -iiid hack the n.itrs of all ..ther hank- it ri>eeives eaeh 
dav f..r rrdrinptiori and pu-hi-- out il'- owti note-, hence ifdcuipl i"ii i- -oin;; 
on every day. 

Wiien re.|ue-ted to d" so. cverv .'hartrrcd hank is roi|uiri'd to make nay- 
meiit in Doniitiioii notes to the extent of ^l^M in anv .imoininatioii tliat may 
bo desired. 

Banks may idnir^e any ratr ..f di-eoiint without incurring any jienalty, 
hut f'.'Hinot recover hv -nit uion- tliaii 7 |" r cc n*. 

Collei'tion fees allowe.l hank- an: I'lider thivtv days, oiK'-riirhth of 1 ]>er 
cent.: tliirtv ilays and over hut under sixtv days, one-fourth of 1 jut cent,.; 
«ixtv davs and over hut inuler ninety days, three-ei^dits of 1 per cent.; ninety 
days and over, one-half (.f one per fcnf. 

Th<^s(. fees, however, are now \irluallv oh-o]( ti\ as the h:ink,-. r.rc not) 

charirinir as much. 

Ai cuts' fees when eojleeted hy other hanl:s in addition. For small suin^ 
n mininniiu fee of fifteen cents is charired. 
274 Security for Note Holders. 

(aiKidian hank notes are secnroil : 

1. l'.^- heiier made a first rlianir on the assets of th hank. 

L'. I'v the (Jotihlr Jinhilif)/ of the shafehohlers of all hanks, except thf< 
Think of P.riti-h N'orth .\nieriea, which liolds its fharter from tlic Imperial 

'■). F.atdi hank is required to keep in the hands of the Dominion Govern- 
ment a depfwit e(]nal to .'> per cent, of its avei-a'.re note cireulatiou, which 
fund is called the " Hank Circuhition Redemption Fund," and should the 
li(luidator he nnahle to redeem all the notes of any hank that may have 
failed, recoiir is had to tlii- fund. .\ud if tlii- fund -hoiild not Ik. sufficient 
to redeem all 'he notes of the insolvent hank, then all the otlier chartered 
hanks are reqnireil to contrihnte prn rain an additional sum -iiira'ient to 
nial<e crooil the deficiency. 

With this rlrpnxif with the Gnvernment, tlie iJoiihJr ]inhi]''u of the -hare- 
hoMers. together with the 'I'turnl a.w/.s of the hank. nntc-hoTdrrs nrr ahrni/S 
nii'ph/ xmirrrf. 

As the hank notes draw five per cent. interr-;f from th late of suspen- 
sion until the li(inidator announces that he is ready to redeem them, other 
Kr.T-l-i; v.-il! .'p-!: fhcni at par. and are rennired. hv the P.ank .\ct to do =0; 
therefore, the hilU of our ehartired haid<s are as ^afe a- are our Dominion 
notes, or .ToM or silver coins. 


TI„. ,.l,ar,m>.l l..,>k< r.,!....,. .l, no,o. i,. ...LI wluu l-n-.n.,,! .. tho 
, " •'';• "•''.'" ; „ " „ ,,. i, n.a....,M,.,l in full I..V jrivinj: in.lo.mutv. 

275 Security for Depositors. (-....rnnu nt ..a.h 

:?i;-ri,r;::;t;;,:".:;ri"/H:H::'::-;."-"-'- .■•-''■■' - 

on tlicir LnKinl. ,,,.v,.r rvccc.' ll).' :nii..iint 

„, ,1'";,:;:;; .a";:;™.!",. ■• ..' ■< .>..'"'■■ -t;' :':,;;;:;;'* «":;? 

,„,wt bo pail f.nt tl.Mt xvill impair its ,.^,.1-,,,. .■»I"l.'l- 7'.""' l"" . ,„.,.„„. 

,,anio.l l,v nn,lo„r,o,l faUo (iovonun-nt rotunis -a" bruu. a.n 
U.rM banks in a ,..Ki.i..n '''T-"- -"" 'l-'^,/ ;;,^ „,^„ ,.„.. i,to 
X,.t,.-b.,M<Ts aro n.a.lo a tir>t ohai-v ..n tlu- a>~. t. ..t a 

'''l"'''''^':'"; n t .l.nn,- aro a ^>o..n.1 oliariro. tl.r rr..viT,olal 

P.Mnini.*n Oovmnnrnt olann- aro , -^ ■ ■ _r,t,>r« 
C.vorn.noni- .Inra. .hon r!,o an,U..noral rn.l.tor.. 

''' x'':rV a bni ,.f ox....n.. .Ira. . bank. pa,ablo -.n pro-ont- 

'""';,.i:;;;';;:';,ir,::^^^^^^^^^^ an,, a por.. ,.ann„M,o 

cowrrlh.l in a.To,,. it ,n pavn,ont t..r a .lol.r. ^^ ^ .^^_^ ^^_^^^_^^_^^^_ ^^ 

connxllr,! In a.Tr,,r ,i in |.;.Mn.-. •■■■■■ K,.,.,„nin.' .-onrral. It 

1 no ]ir,ii M. I 1 - 1 . ■ . 1. , ;„ ,.,,untni" ami ha ulitv 

^,vo. tin ■ u,^ .-naniro. l"-"Vont< nn-tak,-^ n, , ..u t a 

lo« bv tl.oft .\ ntnrno,! .•boqnr tnmi rbr bank, bra.m.' 11. p.n 
™>;N/al-,. tlH. bo.rovi,lonoo..f pavna.n, ann^^^ 

1" lb( 
of 1 


shm.1.1 i.o filod awav thr <anio a^ a ro.-oipt ^^^^ 

^^V"""-/""- "' ^■■"'''';;:,?'bin"":v'::i ;::^ - - va;i:iii : .o^nnnont 

.an,o law. ,ba, f -■'?': ^jmor in .n'r^o l,oM .Irawor an.l on,l..r.or.. 

t'^"^'- '''■^■' ^'^- :-::r ^'-, r-'v'i'oib '•:'-• .:.^^';^^.tin;:^ r ro.:^pt i 

fnl, af aooonnt. or '"f.- n— " '^.\", .'„„,•„ „f ,l,at n,nob n,.nov. and 

; JXt . i- b! mlv aooopt it an,l .iy- oro^it W i- fnoo valno, 
t- n nV-o. .nob .ot.lomont tbo rn,.1Hh:> of ,t. aooopta.oo. 
rbonnoc ..porato a. rnvn.oTit nntil pro.ommont ha. boon nnub- an,l pay 

TW'nt rofn=oil. 

281 Presentment of Cheques.^ _ _ ^ _^ ^_^^^^_^^^^ ^^^ ^^^^^^ ^,^^^ ^^^^ 

A I'iicilUf 11-. .•■> ' •■ ■-' 1 ■ • ■ 


foniiwini; day, or furwardt il if iln L.iiik i> in ii liitTii-iiit pi;, it or t/wii. 
Even tweiitv-finir Imiirs, uudcr ctTtuin circiiiiisuiiiccs, liave U'cii held to bi- 
an uureasonablo liinc to holii 't. aii<i thi; holder iu such fas4'!> mii»t bear 
wliatcvcr h)S!i may <K'Ciir throii>:h lailurt' to presi'iit it j)romptly. 

I'n-it'ntini'iit nml notice of <li>*hoii<)r, if not [luiil, arr just as uopossary 
wit.h (■lic(|iH's a-i with othiT bills, to hold the drawer and prior endorsers 
liabii', if thcv have in'tn traii-ftrn d. 

A chi'ijuo rcfu-iod to 1h' paiij bv a bank u|"'ii vlncli it is drawn slionliL 
usually Ix- imiiipdiattdy relumed to the drawer, if it had not previously 
passed throuirh other hands, unless it had lx>on " (-ertiHed " by the bank, in 
which case the bank is liable. If thei'c is an end irser be, of ct>urM'. would 
be surety t.) the holder. 

If a <lie(|ue is not, prc,sent<^d within a reasonable time, the endorsers are 
<li'^'liarfrid but the drawer oidy to the extent that lie has suffered daiiui^e 
l)y the delay, lu other respects a cheque is good until barreil by the StJitute 
of Limitations. 

282 Cheques Payable to Bearer. 

A clie<pie p,iyable to bearer may bi^ paid to bearer, notwitbstaiiiliu{^ the 
fact tJjat some previous holder may liave endorsed it "payable to the order 
of " sonic individual. 

A eheijue payable to '" cash " i~ payable to Ix^arer. 

The followini: ( lieijue. if traii-fi-rrr.l before bein;; presented ti ■ tlie bank 
for payment, needs no eud'T-eineiit, 1hiic<- plaei s n,) liability iiu tiie 

Wlieii tlie holder presents it at the bank for ]iaynient, no endorst'ment 
i« ealled for in ihe for:n of the pajier. 

€iiiuKa. !/e/,fem/<f>^ f,', 7970 

Quebec Bank 

(?i,y /.. .'/ / .*, 

,yito ,/ifi/u/ni' ^ 

T.anks u-^ually re(piire ilie ihtsou proscntinjr a clie<]ue fnr ]>,iyuient to 
endorse it, no matter h nv ir is written, tint this is a custom of the banks, 
and not a statutory reipiirenient. Tin- endorsement of the paper rer;u\red 
bv the bank is the purpose of idcviifirriluin i>nly. As the bank's liabili- 
ties arr' uuavoidiible if it pays a for<:ed or a raised ehei]m', or jmys the 
wrom.' jiarty, that simple precaution to procure proof as to whom the money 
wa.-i aeiiiaiis |piiid I> only re.i.-on.ibir, alid an rii'i.irM-iiient. u ititOut rt'rotirSii, 
vrould serve the purpose. 

(Ill gl KS. 


- 1 1 i„ M.v.r 111 sii.ii ••aae, without u^inj; the 

The rn.l.> ot ^l^^^''^'!'^ ^^';;^^;^ ZluU^r liahl- f-r ,my. 

„...„, ,. th.- dra> -re hank. ^^ \ , „ ' ha. U-n ,.ahl to the ri^ht porson. 
customer, that., the cii.l of It. It llu iii-mv u ' , ,„, ,.„.4, ,ho 

If. howevor. any hank '-;;;|; ^''j.'i . , ', nk if th. .Irawc. 
cliciuc, the r/u/or,srrs m that case would Ih" ImDI. 

bank refused to Inmor it. ^,v,n. nt 'it the I'ank upon 

M.O. if wlien predentin,' the ehnqun for P >" ;\,;\„„ „„J,„, 

S ^ ::;;:;'i;T ;:,,:;:n„;;;" ;;;:;;: ::„.i::;-™;: '.^ ..- ^ - - 

w,mM, of ,-ourse. 1m' ^r.rety t,, the hank. 

283 Cheques Payable to Order. , ,• -f j 

The f.rm shown helow i^ the standard form now u.e,l m tb. . 
State* and (luito irenerally in Canada. 

::fr^„/h. M/A.>/^ry,. 79/0 

Injpcnal Barjk of Cai^ada 


,C/ i'ji. .%mr. ■,'<//. 

In ,h,. aK,v.. form th • ehen"-^ i< "^ '""'l'^ ^^yf^' ^^'^TJoWe'a 
„i. ,.,,., henee he mu. ..t.lo.o it ';;;-/ -J^.^^^^^^'^ Se'^.^ 

?f ^.^rs.;-i';^ K.^?::in;:; :e;Vi; di.TJ:;;;iy, :.! niau. i. o,,.,.. 

^■>-, n •• VI re 1 lull eith.T oriL'inallv or hv endorsement h 

::;;,. "Ttn;.. r-;;^;. - ^^^r,,. of . .reei^ed p,.... .u, .. to h,m 

LJ'o hi! order, it i. nev.rtheles. vayahU lo him. or to In. or,lr, at Ju.s 

284 Defects and Alt era tiers in Cheques. u . •, ■ ^nt/vl 

V <.l„.,,„e i. no, invalid hv r.a-ou that it i* not dated or that U ,. dat«vi 
on Sv.ndal. or dnt-d forward or ha<.kward.. fSee Section 1^2 for defect, 

that do not invalidate.) i , „ i,;ii ^f 

\ oheqno that i^ p.^t-dato.l is hold not to h. ,. cheque. Init a lull of 

, xehansre. pavahle at maturity and eutitl.-d to three dav. of L-race. 
For material altemtlon*. pee Section Ifil. 

285 Cheques Without Funds at Bank. 

r„r a Per^ou to nlUain trood. or monev hv ^ivm- a cheque when he had 
uo nccnvnl at the hank would he ohtainin^ ,he -rood, or monev "" J'" ^^^^^^ 
.r.trnrr.. the pennltv for which is three vears uupnsonment. Tlut_^,_f the 
luoney were deposited in a bank to cover xW- .•n.-,,,.,- ;. L-rr it;^ j.:..;..:.:::^-.. 



thrrr would tlicii 1m' no fraiiil in it, iiliiinii^b the trnnsuctiin would be 

Hnf giiiiplv no; tuivinir rnonjih money in thr- bank to cover the cbefiue 
would iu)t incur iiiiv siicli |)oniilt,v, nnlc** (hi- Bm»int of rh(H|Hi' would U' »o 
inufb (frviitcr tlinii tiic iihuhI iiuiount i>n di-po-'it tbiit u fraudiilrnt intent 
Would Ih- niimifc-it, or in cii-c v. licri- niinwrous cdiciiucH woidd Ix- ;i'wvn 
p^'iiily c'Xi«i'din>{ the n^^iud unionnt nn d('|)o-*ii or tlic iiuiount to h\* orcdit. 
at that time, it would l>o ditHndt to ei^cnpc a jn-nnlty for fraud, or for 
iilit;iiiiiiiLr ?" d^ i.r iiiiincv iindiT fidsc prrt('n('i"j. 

286 Certiflea Cheques. 

rill' praotitp of " certifyinji" chcqufs for the drawer instead of eash- 
iiif; tlieni is a fiU-or on the juirt of the bank to its* cuiituincrs. In sending 
i'lii'c|u>> t •raii'^cr.s or to distant cities, or for dcpo-ii witb tender on a 
coiitrjict, oi ;;lier cimes wheri' the c<|uivalciit of actual ca>li is neccsary, 
the drawer may romfst the bank to "certify" or mark ihem "pi-Kl." In 
that CUM' it is imu:ediately charp-d against the drawer's account in the 
bank, just the same as tliuugh he had drawn out the money himself. It 
is done by writin:; the word "certitied" or " ptHid " on the face of the 
eheijuc, giving the name of the bank, ami initials of the ledjrer-kecper. 

A ''certitiicl che(|ue '* -cnl anywhere in the countrv will Ik- cashed by 
other bank-. .\ cheque thus marked "' poml " disoharpes the drawer, and 
he i-; pnrluded fmu' coun'ermaudinp payment of such certified cheque that 
hii- jiassod out of his hand-<. 

A clieqne marked "}:""'i f""" '^^"o days only." carries flic truarautce of 
liii- for the two days, init if not presented for ])aymeiit within that 
time the iruaraniec is lost, and the cliei|ue IxM-omes as thouirh if IkhI not 
IxM M ciTtifleil. Of course, any other iiunilHT of dav< woiiM be the -njno. 

287 Crossed Cheques. 

\\ III Ti- il i> lii-ireil that a checpie .-lioulil Hot 1m' ni'^oiiuble, except 
tlirc'iitrli II bank, il may Ix" " crosse l." The cro-siufr may be eithi r ijeiwral 
or special. 

1. .\ clu'qi'e is crossed (jemruUij win ii it lia>: 

('/) Two parallel transveise lines .li-a\>ii aci-o^- tlii' fm-c, or 

{b) Two parallel tran-versc lines drawn across it.^ face with the woril 

" Hank" WTitten Ix'tv.een them, with or without the words " not nepiiiable," 


(r) Tw.i paralli 1 traii<vcr-e liiu -, ( iilnr with or without the words "not 

nepotiablo" written iK'tween them. 

2. A checiue is crossed stjircinlhj when ihe name of a jiarticnl.'ir Bank 
is iid'hd. a-i " Hank of Toronto," in which ca-e the cheque is cnw^ed to that 
partic-ular Hank. 

3. Any jierson receiving' an unerosseil chetiue is ,.r libi rty t.-> cro.-s it 
."ither generally or specially, or if it is eros.sed Kenerally w In ti he reeeivcs 
it h' may cross it specially. 

The drawer oidy can uneroxx a cliripn- 'liat !;a~ oner beiii ero-iicd by 
writimr iM'twi'cn the \\nv< '' pay c.i>h." and iiiiti;i!ii:u' it, after which it will 
be ne^rotiable again. 

Crossed cheques jire extensively used in Knglrnel, win re tin bank-' are 
not belli re->ponsihle tor the endorsation of cheqiKs, hence lni ■iiie.-s men 

t'u,:, wh,., ,.<r..„«llv known M tl..- l.ank T'^V""'"' »" ' '«• --J 
wr^on w.n.l.l Ik- i.u.H.^ IJul in Canx-la tl..' Imnks ar.. lul-l lial.l.. tor 

Th lor.utio« of ..h..,u... no n...-,l of " ^'^-l'- «- ^-; 

«. ovt.nsivelv n.-l in pavin-nt of wup... rU-.. ,.«..! .o of (hts- a. 

\ on>.-c.i .-luN-". f'vahU . u l..r.on not a ^■<umu'r of tl..> bark mfl> 
b„ ;.ri l.v ,!:- l!:.nk! b„, i, > .m...- liability if it pays to the wrong party. 
288 Form of Crossed Cheque. u „,.«• 

Tl:- f.,ll..wi,.. r.,,, r, „-niM...H a ^.nnin- ^afoty tran^f.-r ohcqno. 

. /VZ£. 


-^£itf ^ 

// rJ 



Dn.vcr- and other hii-iip '> inrii 

who rv.vivr l.u-v -iini> nf iiioiu'v in tlic 

<.i,y hud safety in n-in.^ th.^n.' •', .roused che.,,..^ ^ f h ■ ifv 

in,^ the tnonev hn,,,. with .hen, th.v ..o„ld .lo,-;" • "' •■"■;' ' '^^ 
bank., and tak. . ■■ .vrtih.d " .■h.-r- '''-W to thnr hon... n,nk. n case 
of rollKTv no i.r.on ror.ld ,.o.-ililv n>akr an.v h~.. oi h>, h rlH.,,,n a .t .. 
I^M ::Jn..,o,iahh.. and onlv ,,av„i,l.. a, -h-ir own town ba.d. and 
tliro\ii:h thi-ir own accoimi. 
290 Trust Funds Cheque. ♦;,i;i;.vof 

y„ ,},„ f .ilouin. f...-n, ,h,. drawer does n,. n^trw, tlu. --"t -d^ 
1,-H ,lH.,|ue, neither doe- he plaee an.v res,,on^.l..l-.y on ,he ,,a>ee to endor^e 
tlio lao.r in the event tliat lie ('ofs not negotiate it. 

,S7. Johiif, Xjid., 

fihru'irij lb, igio. 

Tljc Bar^k of Nova Scotia 

Or.. J7^.^W .«^ ^//....-™ ^^-'^^"^ ^^^''' 

/n iruj<. 



Hut if it is nopotiated tho drawer iiiakc^ it ornnpiil.'*' ry for thn pa.^ee 
t-) (iuliir>c it, thus socuring indi^'I>ut:lIlll• fvidi'iu-e of paNiiii'iit wlua the 
endorsed rlutpie is oashcd bv tlic bank. 


iisiiiiT a ciiciMii' 

:1# lllii 


<'iilir-r till 

he draw(>r would liave a '" Tnist 

Aecotmt" with the bank, and the cheque i;( payable out of such Iriisl funds 
only, and eannot Ix? eharfred airain^it his • ivate a<ronnt. Fuml-i in a Tn/s< 
Acc'^tiul cannot be paruisheed nor taken under exivtilion lor any private 
debt of the depositor. 

Exoctitors, adntinistrators. solicitors and officials in general ln-ldiii!^ 
estate, or cliurcli, or s K-iety funds in their hand:* are in eip ity lH)unil to 
keep such trust nuwry separate from their own, and jimvide tluif the 
duMpie "In trust" shall Ijc tlie \,iucher of every ilisbnrsement c >nn"cted 
witli such funds. 

No responsibility is jdaced on the bank wlnii -ncli an account is opened. 
The b:ml; is not required t.o enquire into either ihc nature of the trust, or 
to vli.i '.iironv,. t| ,. ,-l!i.f]iii- i- IwiiiL' Mpplii'd. 
294 Relation P.ttween Bank and Depositor. 

rill- relationship In'tween bank and dei)'>silor is in jrt ne/al that of 
debtor and creditor. The bank is not a trustee, nor agent, nor bailee to 'ho 
depositor, and is not subject to those laws. The bank's relationsliip is very 
wide in its freneral course of business, but to the depositor it is liiniteil. 

As a debtor ihi- bank is umier an implird obliiraiion t > ])ay the depositx)r's 
cheques drawn on it to the extent that it is a debt«^>r, but no further. 

If a depo-itor draw a che(pie on his bank for a rcaler sirn than ho 
has to iiis credit, tliree courses are open '■' the bank to h.jose from: 

1. It may refuse t/) cash the cheque, or 

2. It may, if it feels safe in iL^suruinjr the oblijratioii. cash the eheijue 
and k'come the cretlitor to the depositor ( > that exient, or 

;!. It may ninke a partial payment, p.iyinjr to the extent of the funds 
to tlie credit of the depositor, providinir the holder of the cLe<]\ie will 
receive it. 

Wliile there i^ no le;ral inipedimi'ttt to prevent sm-li partial ] iiyment, it 
waidd had to endless annoyani'cs to the banks and to frequent coin|.licatioiis 
in tragic if such a ]irocedure were allowed to be<'oiiic a Itank custom. 
295 When Banks Are to Refuse Payment of Cheques. 

1. If iiaynient has l«iii counterniaiidcl by the drawer l)efore the v>!ieq;ie 
has lx>en ae-epted. or cnuntermand<>d by an executor, nssiarnee. or court. In 
countennandinc payment of a cheque the noti-e must be civen the manaqer 
and not to the ledirer-keeper or teller. This was confirmed by .Tiidfro 
Mad<len in a Division Court suit at Kinsr-ton. March 27. li'O*;, in ' hieh 
a cu-:tomer had sued hi* hanker for ncjli^ence in ]>aying a $r.O checpie, 
pa\'nient of which he hnil connferniandcd by verbal notice ! . the ledjrer- 
keeper. The written iudLtnent of the court was that as a qiie«tion of law 
such notice to lie efTc'tunl .-hould be ffiven to the manaqer of the bank, and 

in writinL'. 

2. Notice of the drawer's death. Payment after the di ath, hut hcfnre 

lini'trp. would be valid. 

"NTotice of the death of nn attorney who issues a cheque tinder a iiower 
of attorney, liefore his denth. d<x<« not require the bank to withhold pay- 
ment, as the attorney is onlv an a-rent. 

?,. Where a L-arni>-hee order ha? been =erved on it. 

C lllylKK. 

thf I'acf <•!' it, or i.- l"~' 


-dated, llie 

■1. ll' :i clifcjlie i^ II"! nyular 
bank w.uld puv it at iU ptiril. 

.^). Ullkdal ix.tiw of tlif druwrrV msolvoucy. l.ugcr^ c. wmn'ic:,, J, 

A. C. 118 (lh;»2j. 1 I (T -, 

Til. h .Idrr nf a idiciui' Las iio acti .ii for damages agaiii.-l a l.auk it il 
refu.e, i-avnuut, unless it is a ■•cer'-.lied .■l,e,,u,..-' lie .nay M.e tl,e itniucr 
or a prior endorser, or he may tiu- fund- ot the drasver lu the 
Lank, lull lias li.. action a-ain-t the l-nik. 
206 Banks' Liability in Paying Cheques. 

If a i.avs a for-ed ehoiue il.e bank is tlie loser. It is the .same 
^^,lh -raised .dir<iues," where lliev have be-en ruis'ni fraui a smaller to a 
lar-er sum ilir bank loses the differenee uiile-ss it can Ijo sliowu lliat ttiu 
drawer's .-areie-sness in writinfr the el,e,,ue faeilitated the l.rgery. i-or 
instance: If voti were to write a che.,..e f-r " live" dollars, and commenced 
go far froHi'the end of tk. v^V-^ tkat the f .ru'er had suthe.ont room to 
write "tiftv" before the live, thus makin- it - tifty-iive ; or. if yon were 
to leave blank space euoufrh after the "live" for an <'X|,ert to turn the 
'• five" into "fiftv" or to add -<Ml," and tb,. imitation in the writing 
was ffood, the bank would n,.. 1„. held res,,on-U,l, . Also, in eases where 
the drawer is .•an.le.s in writi.i- hi ^i.^rnatun^ havin- no muform style 
8<. the bank er.uld not positivelv idem (y Ins siirnatnre, il.rn th.- bank would 
not b<^ held responsible for payment of a for<red cheque. 

Pavin" a ehecpie draxni payable "to ord.'r " t. tli.> wi-ohl' i.ers,,n, even 
thon.'h of" the same name, is the same thiiiir in etT.rt as paying it on a 
forced endorsement, and cannot lie charged to the ousiomer s aecount ; hence 
the reasonableness of always re.piiring tlie jwrson wlio receives payment to 

endorse the paper. \v:ii;,,,, 

\ ehe-iue nuid ■ navable r . .lames Smith, enanlian . . Maw and \^^\\uvn 
IVovM .^hould be endor-od •••lanHS Smith." simply. The teller. howev.T, 
must know that tbe ,.ndor<er^.Tam,.s Smith-is the person deser.h.^d as 
guardian for Marv ami William Prown: so in all e.isos where the pavee is 
very minntclv deseribed. it is for the protrrt,on of the hnr^lr ,n identifvin- 
the' pavee and not :,s a direction for the form of fhp mdors-rwrvK 
298 A Chapter of Reminders. , . . . 

Traders should remember iliat banks aiv not paternal m-; itutmn-^ 
vho- dutv it is to proteet them against tlio results of their own :e-,i- 

"''""when a draft has been ace,.pt,.,i bv .!,,• dv.nw.o and retnrr.ed to the 
bank the acceptance is irrevocable. , , . . •,,•,• 

If a drawee writes his acceptance on a draft, it w -till m Ms pn^^er 
to ranr.l it while the paper is in his possess,.!,. nr.les> be has notilnd the 

bajik that he ha.l accepted it. ,. ti <• 

\„ endorser on a non-nr?atiable note or bill h not liabl- for pavinent 
Tf a bank pavs monev to an '-innrw^ent holder for valm" on a for-,.d 

choonc it cannot recover the m>nev from s„r.h third party. 

A hank that certifies a cheque tbnt is afterwards "rinsed h liable fn- 

the ori-inal amount of tbe chenuo onlv. • , • ., 

Prrsentment of a bill for pa^^ne^.t mav be mnde anv tun.. .Inrin- the 

,1av of the dne date, even after three o\dock. if the notnrv or bolder c.n 

find any person authnri'ed t. i-iv or refuse pavmert. 



Waiving "notice 

(if dislioiior" tlot's not rilii'Vt- \'n 


obligation "f ])res('utmont for jiaymi-ut 


IS Ha 


'a giu 

iitor is a favorite of the law," un.l he is alLweJ 

to staiitl oil tile preeise wording written alH>v( 
riglil.s that l:i> written eontruet does not 

;iis name, am 

i he waives no 

The holder of a note, win 

ther a Imnk or a private imlividnal. eaimot 
I'ciiritv witliout relea.~iii^ the endor^ 

part with tiie enstwly of eollater;il 
ers, nnlesji thev give their eonseiii. 

Pn.missorv notes h<'l(l bv a Imnk as eollat.'ral seeiirily for advances to 

LMir-toiuer eaniiot Ix' gariiisbeed. as they are i..r...nal iiro] 



money du<' 

i|- ;i ni"rlir:iL'i' l- 

If eoiipon l)'Hiii< 
IV tlie batik will be liable il' tl 

•ft with :i 

bank as e-dhitiral se- 


.-(- t 


•irleet t« 

colleet the interest. 


a I 

letiue is J 



"■ I 

avtiieiil \\ 

ts fae*', but is in "tin 

written across i 

cash it. and refti'^e to ca: 

nei'ts n 

iril "diqilicato' 
■^nlar. the bank may safely 

hirh h;i- ll 

■h the oricinal. shoiibl it be |ire«-ntel before re- 

ceipt of the ijrawer's noliee sto])])ing ] 

nivnieiit o 

f tl 

le nritrinal 

A ehec|U(' for w 


It has been refused, or stopptd. 


ll to th(> party presenting it without any inutilati 



is /*: 

fiiinud to 1h> th<' jiroperty of tlie perMHi presenting it 


iiie holder of a dish. nnre.l eiie.pie that has ii,.t Ixen "eertifie.l." has 
aetion asain-! the drawee bank, Init he may sn. I...tli -lie .Irawi-r and ni- 

dorsers, if any. 

As the drawee is under n<> IilmI obligations to accept a draft drawn on 
him i.v his creditor, he is not liable for protest eharires for n..n-iie.'eptanc.. 

If the driiiirr drtmnds tlie statutory time alliwed for acceptan<-e. and 
the bank i.rolests even a domand draft Infore the .'xpiration of that timt 
it. is prrmntiirr. If within the time allow.d by the Act the drawee were 
to ask for the draft and ten<ler the money for its face, and the bank were 
to refuse paynieii' unless protest eharires were aUi paid, if w<'"l 1 d.. sr, at 
its own risk if the drawee were on the eve of insolvency. 

A li;ink. in the interests of its cttsfr.mer. may take i>art iiaynirnt on a 
bill or note, unless sprially forbidden bv the pay.'e to do so, and bv not ice 
of <lishonor res(.r\-e recourse against drawer or maker and cnd'Tser-^ for 

the remainder. • n • 

Presentment for pavment of either a (dietpK' or other nejofiahle in- 
strument mav W made at anv hour during business hour-' of the due diJte. 
but the pap.T must not K- protested or t.eated as dishonored until the close 
of the dav. three oVh«-k for banks. The wh.-h. day Ixdoiigs to the debtor 
Wlu're a bill is held over for a f<'w days aftr-r maturity by arrangement 
with the .irawer and endr.rsers, the must amount to a >"nver 
nf Trnlirr or an nrlmisxlnn of nofire of dishonor. Tf not paid at tne end of 
the time the bill could not then b<' protested. 

In iirofrxfirxf an !>il<w,l hill that is not a QucIkv bill, even if the proJ 
test was premature, or for anv otlier reason nullitie-l. the drawer and in- 
dors<.rs would still lie liable, provi.ling the bill had lieen pmprrly pmfnl 
for aeceptanc.> or pavment. ti- the ease mav Iw. atul m.lire nf ,hshomrr 
forwarded to s,,,.), drawer and endorsers not later than the day follo\nnff 
the dishonor. 



Ju au apun-l an ..n.lnrs.T it is not ncn-ssury U> pr^.v.- lb.'.,. 

were not -suttic-ieut funcU ut rho pla,v nan.-l intlu- t.,r pay- 

,unf an.l l^r ;,n inland bill. .'X-o,., a (^ulxr 1..11. .. is n.t, "7--"-^^ 

„v. ■ ,ha. .!„. ,,a|...r was pro,.-.. ,1. lu„ na-rely prove due presenlmenl, ncn- 

""""t1.c l.ral intention an.l ..ff..<'t of oach of thr M;:natun.- on u no^'otiable 
i,..rnn,.n, was ctal-lisl....! jrenmmons a;;o. an,l tho .■•.nrts mvanal. ly .■ou- 

-,,.„,. ,1„- ...ulract of ea<-l. in acc-onlam-e wnh .1,.- ,,„■.• l..-n.av,l .uMo .. 
Th, M-ah.s of jus.i...- in .Ins r...p.r, am hM an.l u.u n. IniM n>-s 
',;;., „„t ••win.o" if .1..- an. ,,i.„.l,.-,! l,v a law .-no ..,• ,w„ m-lrM years 
oM. .ha. tli.'V I>,,^.. .,... tak.n .hr ..■....'■''■ >" l..Ui.l>a.M/,<- ,1., „i-.-h •■> «>.ll. 

299 Deposits by Minors. . 1 ;„ „ 

S,,.!!,,., M ..f th.. r.anl.iuL' A... r...- ..... .'.Tosu of UnuU m a 

,■ .,;.n..l bank in tbo ..a.n.- ..f a n.lnor xvi.h..m any ;li.<tin,-t,on a^ .0 ii^'e. 
,h,. minor n,av a.1.1 to or .l.-aw from sm-h .l.-p..s,t ..itber ■ . . - 
„.n-, f, .inn. ... li;..'' wi.b-n. .h.. in...rv..n.i..n of the paronts or -uanli- 

"'"' Tho a,„..,..>. -hat mav b- kopt on .b-posit is rnnit..,l to *:.nO, in those 
Provinces tb.. provincial bnvs u-oubl not pcrnut sncb pcr.on to <.o.i- 
tract in this wav if it wore not f..r this S«-t.on ... ihy; Act. 

!.ncv .!,„• ,.n ,lc,-sit of a .Iccca-cl .ninor ..nlv - -..M-'awn Ir ,.n 
the ba,.k i.v an ,.,hnun^>n,l..r. If the bank w.-h.- ... alL.w -he paren -.r 
cnardian to withdraw .1... .n..npy. it may. of course. ,1,. so. l.n. at .t> 

ri-k. An indcn.nitv U.nd i., n.ost cas,.s w,.nl,l 1h. s.ithc.. ... ,..;...c,...on 

Tin. Xcwfonndland Hank Ac al... wovi.l.., b.r ....Idrcn s d.p-.s.t ac^ 

counts allowing: tbcn ... .Icp.wit an.l .Iraw .-t the same a. the 

f'anadiar, Hank Act. 

301 Bank Drafts. , 

A bank .Iraf, „f .„„. ban. on an,.,!...,-. , avabl,. ..n .b.>,L 
The CO.. ... .1... r...„ i^ n-ual!v ,.nc .,.„artrr of on- ,-r .Tnt. hm 

tho face, bn, it is ca-b.-.l a. ,:.,■ bv ,1„. bank -n wb,,!, ,. .- ' 7;; J'^ ,, ^ 
,.,lK.r bank, in the san..^ ...wn ...■ ,....v. 1. ,s a <afc ,„...l..n.-. b'. >'' .; 

,„ission of monov to ...b.-rs. or in car,-yinir ^nn.s of mo.tcv when n.adc pay. hi 
,0 your o^^^) order. When d.-awn .... a f..rei..n cnntrv tl.ev are callM 

Forei,!^ Hill, of Kxcbat^pe. The foil... i... w..nbl be .rea.e.l a- a forc.-n 
bill both in Canada and Xewfonndland. 

Bank of Hon t real 

0><,U /. //. O../,^ ../^1f://,.rr.r/^. ^<^^>"^ 

3r. Banh of flOontrcal. 






302 Deposit Receipt. 

i)i-pc).-,H Rcfiii-t, c.jiuiuoalv called "wrtitioatc of deposit," l^ u rcci'iiit 
given l)v a l)aiik for money deposited. It bears interest, but is not negoti- 
able in'Caiiada. In a legal sense it does not differ iiniob from any other 
form of renipi. lu mv>st of the States of tlie American Union, except 
reunsvKania. it is classed as a negotiable instrument, and in ('a!\uda if tlio 
deposit n-ceipt contains tne word ordrr it is hdd to U.- negotiable by endorse- 
ment as IMP 17 O.Il. 574 (1889). 

Tile full iwing is one form of such Pfciipl: 

FouM oi Hank 1)i:i'osit Receipt. 

{Name of Bank ) 

$ No 

Taruido l.> . . . . 

liKcl-lVKl) from 

the sum of Dollars, which 

amount vill he accounted for to hy this 

Bank, and will bear i}iler<.<d at the rate of per rent, per 

annum until further notice. Fifteen days' notice of with- 
drawal to he (jiven. and this receipt to he surrendered before 
rtpaymenl of either Principal or Interest is made. 

No interest uill be allowed unless the money remains in 

the Hank months. 

This receipt is not negotiable. 

For {Tiauk). 

.1 ' ri.nnidid. 


304 Bills of Lading. 

A lull ■)!' ladiiii; i> a receipt by a carrier tbat gonls have been received 
for carriage and upon it-s transfer tbr pn'perhj in the goods ni( ntioned in 
it passes to the transferee. 

]!ills of lading nre classed as negotiable instruments, but they are not 
like bills of ex< hange, for the transfer an.l en<lorseinent of a l)ill of lading 
gives no Wtter title to the goods than the emlor^ee him.-ielf had. so that if a 
bill of lading endorsed in blank were lost or stob'U the finder or thief could 
not give a irood title to an inmx'ent third party. When the bill of ladiii;; 
for g(K>ds purclu»s<Hl has Ixm'u rtveived the owner may transfer it to a haita 
/I'rfc pureliMser for value, or he may pledge it as security for advances from 
a bank and in both e>ispj» give a title that is good asra^nst the seller and 
shuts out tlie right of stoppage in transitu, r.enjannn on Sales, page 910, 
1900 edition. 

Tbe .shijiper may also attach the bill of lading to a demand draf pay- 
able to tlie order of a bank, thus compelling the imrcha.-^er to pay the draft 
Iw'fore the delivery of the hill of lading and goods. 

305 Letter of Credit. 

It. is a connu'^n cr.siom for persons going to a foreiirn countrv on busi- 
ness, to deposit money in a hank at home and receive from such hank a letter 
of credit ujotu a bank in the coimtry where the money will Ix^ needed, or 

i.K.TTKus oi' < 1:1 nil'. 


upon an ...-m ot ihc bank in -u,.h .■.,ui,u-v. autl.„^ M.h or .^ 

p,J2, >«v "i"i.. » !■■"" "f ■■"■•«• '""" • '••"'"'e '"""" ' 

dciM.sitiii2 the iiionev until he return-. 

306 Circular Letters of Credit. ., l,v tl.i-i lwt,-i- of .■../,„ a.v <..nnn..nly u-,.! l.v IravrU.,.^. .i.^ -> t i^ 

„.ea:^ ;;r; mlylK. ob,..u..i .n var,„u .in.ri.s ,l,o sa.iK. a. l>y the 

ordinary letter of er.ait in a ,,ai-nenlar .s.nntry. 

Tlie fullouin- i^ ono f Tin oi a i.:vr ot I rr.lil . 

C'iK<i:i,.\K I.I 111 1: "1 < Kiiiir. 

^'''^'^^y £ Stn 


The Canadian I^.vnk ok ( nMMt:K> 1 , 

0'/a»'^ ^•^"; 

To ihr i:.iU-s ,uun.:l ;„ o.r L.IU;- 0/ Indicar.on ^Inlroduc- 


This Irlter viU be prcscnUd lo ynu hij . . . ■ 

in vhosc favor vr have npcnvd a rn'dif of. . . ■ . ■ • ■ • 

l^h^n.lo hr arailrd of hy his (hrr) drn.,nd '^-rf>sonU 
Bank of Sadhwd. I.olhhun,. T.nndnn. wh,ch ur reqursi that 
yon,, ill „r,olinlr „i Ihr n,nr„i rnU- of the day, less your 

vsiinl rhnnvK. ,, . , 

The .Iraft- 4, .nl.l luar ti.e foUou in- .•lansn : 

,, ,j .. . . .rirdil .\o 1 

I ) run I, II •I'll I , , , , e „„A 

they sho„ld he dr.,,.;, '.-Hhi, '■ ."- ''•"'" ''" " ^'''''.''IjZ 

' ■'' ' ;., provided "ith n ropy <jf 

n„r leflrr Vf ' J ildl'miion. 'vh.;-ei„ ''"""'"'•'' '""?/ 

}in found. , . , 

for tlir r„„„.r,nri Baril nl fo,„wrrre, 


Tin l,.tt( r of .i-p. it 1^ iiecoini'anii"! I>\ .1 1""' , 

„,„ '};;;,';: ^f ,h,. ,..•,.,.. a^o a li. of a..,,, or ..orre.p..,„h.nt. where ,he 

nienev iniiv W .Irnwn. 

307 Warehouse K«eip.. ^^ ^^^ __^^^^_.. „, ,,„,,„, 

u-ith. their notes for i-re.ent advanee« hy hanks. 


ni'K rtll.l.», IHIKEIIS ANMi RKfKIPTS. 

rii(> fnin-fiT of a warchnuM' rpccipt to secure a paM due debt !•< not 
illegal, but it (lues n"t triinsfcr the ;.'..".|-. Fiill '■. Sborili v. IJ.J.O. 1 S.C. 
r.Sli (1M>2). 

A wnrelidU-e reeeipt to \x- viili.l ih security uiust be lor <n< .,U actually 
in pos-es.ion and not for s'^mU wliidi are not all vet in storajfo. ililloy r. 
Krvv. s S.C.K. 174 (issoi. 

KoceiptH usually jriviii by tln' or.liii;iry -tora-je warehiMise for hou<ip- 
hul.l L'oods and furnitMre arc cenerally made iion-Tiepitiable. Sucli can only 
be transferred by assiirniiient. 

Tlie fidlowinj: is one fiTm of \V:irclioiis<- IJecclyit : 


IRCCCiVCb in Sfnrr /roiH 11'. //. 1 1 in)ii I tdi . i n 
Warelinusf at .'.'/ W'fllin^loyi Sfrrr/. Turontn. i.'nnt/s as per 
schv'hiledf Ihptiititl niluf of .■^:ir,(I.O(), to he delivereil piir- 
.sunnt til the onh-r of IT // llainiif<ni tn he indorsed 
hereon . and mi j irodueiion of fhis rerei/if ciilij 

Ilil>l< li. 1>.- rrnnrtlril m « r^M'Ipt uBilfr llir |ir»>l'>lnu> i>f Ihr Br»l«f<l »lBlali-« .if Onlnrl*. 
(hup. 1.'! ..Mrt of ll>'- Ktnlutr- ot ««iiii<Ia. < hap. I.'" liHItuIr.l • An Art rrKprrllBK 
Itaak rn.l Haiiklnf, ' »- 111. .amf mo I., ■iinrnilr.l ht ,ul....'<iarnl »ru « Uo.r. of Ihr 
I rluiliinl I «>• rfliilliii lo W«rrh<>n»r l»»rfliU« iirr prlnlid ■■■ ihr l>»rk lirriur. 

1-"mimi:k Waki iiDfsE Co., Limited. 

Tuiii.NK). (•> r. liM II. 1'.' HI. 

(11 M'TKi; X. 


315 Due Bills. 

.\ dui' bill is a written ackiiowledpiK nt of a d'bt. They are not nego- 
tiahb . <'itlier bv delivery or by i ndorseiiient, no matter if the word hearer or 
order is used, becau.^e tiny are not a promise to ])ay. 

Tliev may be transferred iiy ansignment. The following is :i very pxid 
form, written across tlu; back; 

" I''..r value receivid. 1 li' r'cby a>-iim t.i .Tames Sitiitli the within due 

},j]l •' !I,\.:I!V I'OTTS, 

Smith shoidd notify the maker of th< dne bill that b. ha- imndia-^ei; it, 
tmd that the money is to be paid to him only. 

31 G Forms of Due Bills. 

1. rii\:d.l.- in L' 1-. 

Xfi.son. B.C.. .\ii?. 4fh. 1010. 

Hur James Smith Ten Dollars m goods from our store. 
$10.1)0. ITiiiD.Mii) d: Sons. 



L' l'iival)li' 111 money. 

FoKT EniE. Anjj. 4th, 1910. 

Diir James Smith for valur received Tin Dollars. 

W. Laur. 


317 An I. 0. U. 

An l.O.r. is payable in rash, and on (ieman.l if tliere i.-* n-> ajireo- 
ment to the rontrarv "The en-.litor's name is not usmilly ins^Tte.l, hut it 19 
better to insert it. They are not a promi!»e to pay. hence not negotiable. 

7. i>. r. Tirenhj-/ii-c Dollars. 

I! \Mi! icN, Auff. 4th, 1010. 

.1. J. llAtN. 

I?ut if a pnmiii.0 to pav were aiMo'l to the I. O. F., it would be a 
promissory note i.nd negotiable, as follow-: ( IJrooks v. Elkin^s, ISIIC,, i> M. 
& W. 74.) 

7. ir. S„nln. I. '). r. Twenty- five Dollars, to he /ki-/ I>". -'ilh. lUlO. 

.1. J. ll.VLN. 

320 Orders. 

\ti ..nler is a written re(iur-f !.. deliver ^'oods or money on aecount of 
the iKTsun makin}: the rcpieM. Wh.t. sueli ordi r is n-eeived and aereded 
to the person siiruini: tlie ..r.ler shonhl l)e charped for the amount. If the 
nr'der is in fiivor of a third partv. the name nf tlie party reeeivinsr tiiep""ls 
<,r money should be lueatioiu-d iu the eutrv. aud the oi-.lrr preserved uniil 

settlement is made. ... , n 

Thev differ from ii drnfl in ImIul' Miuple in f.rni nnd -.'Urriillv 
for C< .ds inst(.;.<l ..f f >r lunnev. If lli- dniwee .,\ve- the drawer the ainunut 
p.nyiiK Mt can !»• tiifcvred by t'.e ]i:iyee. 

1 CoiiAiT. Ont., An-. 12ih. 1010. 

Mr. J'nnr<t SmiHi : , ti ■ i 

Dear S/r.-'Plm^e pay to Henry Brooks or nrdrr I hirti/- 
fire Pnllnr^ nri,] rhnme the .same to the aecount of 

i-i.'^.oo. s- ^v- ^''^^■^■ 

MoiiT.KN. Man., :\ray lOtli, lOlO. 
3/r, ir. Wiiiln-'^: 

Dear Sir. — f'Jrase let Mr. If. Brook.'< hare from your utore 
Fifteen DoUar.i in such goods as he may wish and charge to 

acif'iini of 

At i:x. V<. TJarron. 

Aytvki!. ^fny 1C,\h. 1010. 

Mr. ^Y. 'Winters: 

j~)f,fj^ y,V — riense pay to the hearer. Mr. IT. Brookn, 
Thirty-fve Dollars from the funds left with you yestrrdny. 

TV. A. Pini.iTPs. 



322 Receipto, Various Fornu. 

A nviii'i i> ii \uiiiiii ttrkiiciwlt'dgiiicnt of liavinjj; rcccivfj u corluin 
piiiii "t iiKiiicy or (hIht vaiuu. 

A rwiMp't is in.i ulw'lute ovidcuci- of pavmeiit. hut it llir>\v* tlic burden 
of pr'Hjf ui«!!i the party who iiiiix'ui-hi'.s it. It iiuiy have Ixi'U ohiaiutd Ixtore 
payiiunt was nuiili', ami thi'U payiiuiit rofiuif.!, <>r it may liavo Ix-cii ..hiaiued 
throiij,'ii frauvl, .^r for soiiu' otluT purpo^^■; hut tlie burdi'ii of proof rt'sis upou 
tlic partv wlio jrave it to show whiTtiii it is uol vulicL 

A riri'ipt ;:ivt'u in full »( all dciiiatid* to daii' would not bar the credit- 
or's claim for ui'i adililional it* in of afo.uiit if an error liad \hhii made which 
he could (satisfactorily prov.. It is evidence only ihul so much value hud 
b<'en received or money |)aid. 

A che«iiie rc«-eived, and having marki-d on it "in full of all deiuandV or 
'• in full of acmuiit," which d>>is not cover the account in full, may still be 
endor-e.l and casli..l at the hank in the usmil way without lo«inj: the balance 
of account. If the (hbtor inserted those word:* in the che(pio fhroufch nnstako 
the court wouhl correct it. if proven; and if done int.iitioiially the court 
would also order the correction. If, however, it stated that the amount 
ahoiild k- iiai.l on the corulUinn of itw Ix-inji received aa payment in full of 
ace, tint, then iis acceptance ami endorsement by the crwlitor would cancel 
the halain-e of di lit. It would tli.ii Ih' a ••compromise" «'ttlem<'nt and 

It is a creditor's duty to pive a nvcipt on the payment of a deht, but 
generally he cannot W compelled by law to do so. When ho holds a debtor's 
note, orany other security, he is comp- 'led to surrender it on payment, also 
a iii"rfira,!re when paid. 

Wlitn a receipt is taken from an a;;.'nt or collector it -ilioul.i liave the 
name of the princiiial on it, as well as that of flu" agctit or collector, who 
should always desjinialc himself as "agent" or "collector." 

When a receipt is likely to be refused, payment should n.'t be made 
e.\ce]>t in the pri'sonce of witness. 

When a receipt is given for money paid on a note or other oontnut. and 
an . nilorwment made, the latter should' .staU' the fact that a rec-eipt was given, 
and the recei|)t should stale that the amount had also Ihmm -Midorsed on the 
note, or other written instrument. 

The following forms of receijjt are in general \i?p: 

323 Receipt on Accourt. 

IJiiocKvii.i.K.. .May L"-tli, l!'in. 

liereiird from James Smith One Hundred Dollars on 



324 Beceipt m Full of Account, 

TiKinoi.i.. Aug. iJBth. 1010. 

Received from Leslie MeMaan One. Hundred Dollars in 
full of account to dale. 

$100.00. -T Batten. 



full <if n Icfinnj hrqnrnthrd to 


325 Rcccirl for Rent. r i» ioift 

BuAM'O.N, June 1st, liHO. 

l:.'rcnrd from Jnme^ SmUh One Hundred Dollars for 
three r,uM rent of store, No. 4 St. I'aul Street, due May 

$,rxon. Pktku MvKus. 

326 Money Received Through Third Party. 

Ottawa, .liilv ''.tti. l'".''- 
llerrirrd from I'rhr Svnih. hy thr hands of A. Young. 
One Hundred Dollars, in full of all drwaud-: 

327 Receipt for Payment of Legacy. 

KiMAR^fF.v, Man.. .Tnlv 2^1 1^1f>. 
Heceirrd from J. F. Anqrr. rrrrutor of Ihr la.'^t vd! nnd 
irshnnnd of Ilenr,/ Wdlvims. of \Vhmipeg. decea.sed. tho^sum 
of Four Hundred Dollars, in ' " ' ' ' 

me hy said uiU. 

328 Receipt by Clerk. 

Wfiianp. ^lay 12th. I'.^fl. 
liecnved of Pcicr Smith Fori,, Dollars in full of arrount. 
$40.00. Geo. I'.rK.iAi: i /" r .Ioni.s). 

329 Receipt for Note. 

I'.Ki.MMNr. M;m.. Miiv IHth, 1010. 
Beceived from Peter Smith note at four month.', from //a.» 
dnir for One Hundred Dollars in full of account. 

$100.00. ^- I- ^^ *■■'■'''• 

330 Receipt fcr Property Held in Trust. 

SV1..NK.. .V.H.. Auc. It'.th, 1910. 

Peeeived from FH.-r Smilh one Cold \Vatch to he held in 

tru.'^t for him. and drlivered to his order vdhout erpn,se. 
' S. Kekr. 

332 Receipt for Interest paid or. Mort^ 

Tmno, X.S.. .Tniu- l>f. T.HO, 

Peeeired from Peter Smith ( h,r Hundred Dollars, bring 

amount in full for m.r months' intercut ''"''-'/'"' -'"^•."'^ 

/„•.. mortem'-. '" ""/ A"'"'-, ^"t'd ^^'•'"''<''- -'"^' ^•'*^'- "'^''^ 
awmnil is also endorsed on the mortgage. 

stioo.oo. .T.C.I"--,. 

333 Receipt for Payment on a Note. . ,, . , ,„,„ 

Toronto. Mav 4tti. 1910. 

Peceived of Peter Smith Our Hundred Dollars, in paH 
payment of his note ,n my favor, dated Septcd.rr Vh. 1901. 
yj'nrh nmouni is aho endorsed on the note. 

$100.00. •^- ^^■- ^^■'^'^•■'• 

336 Release. , i i • 

A rcloa'^f i« n writton (Hs<-lu.rp. of a .i.-l>t. ol.';in.. or hol,» 

ajrain.t .n,c ,.or.o,> bv a.u,.lu-r. No sp«.inl fom> of wora.n.r i. nooe..sary, 

Ill I lilll.>. iil:ii|i:.> AS I' 1(11 (IITM. 

uimiily iisin^ worils lliat ounvey ilic iiiti'iiiioii in ri'lcuM', unitiit, uiui Ui-*- 
churj;t' llii- |)€'rson from tli<' dilit or obli;;utii>n. It is giwu under scul, ami 
will (iisfharpi' any ilclit wlii'llicr a<'kii>wlf(l(ti-il or not. 

iJi'lcaws limy Ik' indiviiliial. a'* when niic |ht*i>u rcicasi-j atiotlior from 
n df'Vif or (Ictimiiii, or tlicy may In* miittiiil, n» wlii'n two jicrnion* liavr bwn 
trailing' with t>w iiiioihtM', ami have I'onira aconinLs niniiini; for a <'on- 
Bidcraliic time. Wiicu a scttlfinctit i.-i made, iln'v vory frf(|in'iitly n'loas*? 
rarli "itlur l'r>iiii all d<'iiian<U. A rcica-io will liar "lit any chanco of njicnini: 
up tho niaticr a^'ain by xliowin^ that a iiii:'takf had been niailo, whcica^ a 
HHTi' ri'fciiii in full of the demands wmild not i|o so. .\iul thoy should be 
\m\l iii'iri' fr(i|ii(iilly iliiiii tiny arc The fullowiii^ is full furm: 

337 General Form of Mutual Release. 

Cbl^ lIUDCnlUlC, thr ITili .lay of .hill.', A.D. I'JU), 
U'twM-n Henry N. Ilibbard, of the first part, and IJinjaiuiii 
AI. Disher, of the second part, all of thi' 'fownsliip of IJertie, 
County of Wellanil, I'rovince of Ontario, nierehuutij. 

\ViiKi(K.\s, there have Ix-en ilivers aecoiints, dealinft^, uikI 
transiieiioiis Iwtween tlie said parties lu-reto, respeetively, all 
of whieli have now Ik.-oii finally adjusted, settleii and disposeil 
of, and the .said parties hereto have, respectively, afrreed to 
give each other the iiiiitiial releasi-s and discharjres herein- 
after containe<l in manner hereinafter expressed : 

Now, therefore, thex' I'resints Witiiesseth that in con- 
i«idoratioii of the premises and of the sum of one dollar of 
lawful money of Canada to each of them, the said pai-ties 
hereto, respectively, paid hy each of them at or before the 
Beaiinfr nml delivery hereof (the receipt of which is horehv 
acknowlcil^rfd). each of them, the saiil jiarties hereto, re- 
spectively, doth 111 Teliv for himself, liis licirs, e.\e<-iitors. ad- 
niini.'tratorn and av>iims, remise and lea-c and forever acquit 
and clischarire the other of them, his heirs, executors, ad- 
ministrators and assipis, all his and their lands and tene- 
ments, poods, chattels, e.state, and effects, respectively, 
whatever and wheresoever, f>f and from all debts, sum and 
sum= of riiotiry, nccnunta, reckonings, actions, suits. cnu«e 
and causes of action and suit, claims and demands whatsi- 
ever. either v.t law or in equity, or otherwise howsncvcr. 
v.hich either of the said parties now have, or has or ever had. 
or iniirht or could have aeain-t the other of them, on any 
account wlintsoever of and cfincrruine any matter, cause or 
thirii' wl>'it.:(Mn-er Ix'tweon them, the sai'l parties hereto, re- 
spectively, from the liecinniiip of the world down t.. tlii' d;iy 
of the date of tliese presents. 

Tn witness whereof the said parMes hcret,-) have her<iuuo 
set their hands and seals. 

Riimed, sciilrd and delivered"! 

in the presence of r 


TTkn'uv X. Tliiui\;;n. 
Bkn.iamin M, nisi;i:R. 





846 Legal Rate of Interest 

Th.' l.-ui rui.- Ml ,ui. T.M lu I' i-^ now lixf p.r cxiH. pr annum. 
Th.- ruto uhi.h liH.l lonniTly Ihvii six jKr ••.•nt. wan .•huuKcd to tive by Act 
of li.niininn I'lirliaimnt, t liaplrr !".• of l'.K»0, ai..l raiiif in Joree tlie .th 
of July of tliat Anv rate. how.viT, can Ih^ .•olUrti.l that a jht^ou 
legally agnrs tuV"v. I'.it wli.iv th.- rate i* not stuti-J it will only U- tune 
percent. (Uhapi.-r 120 U.S.C, ItKUJ.) , 

A« to u proini'worv iioii- wht-ro noiliinj? i* said alnnit infori»st. it will 
not draw inli-nst bcfon- niaturitv; l.ul if ii ^t jmid at inninrity it will tn.-n 
.•otnincnc- to draw Hv.- \H-r mit. A iiof .Irawinj; a lii^'li.r rat.- llian tive 
per rent., if not paid at maturity will dr..]. to ti\.-. and a note .Irawinj; a 
lower ratr than tivi-, if not [.aid at maturity will ri<.- to Hvf jx-r .Miit. 

(a) If the rat.- stipulat.d in any nepot iubl.- in^trumont or ..tli.r con- 
tra<-t i-^ovcr, or und.-r fivo jier cent., an<l it is d.-sirfd that it shoul.l remain 
at that rate after maturity also, tliere must 1k' an express provision for it. 
The interest clause stated liki- the foliowiii;; would answer: 

"With interest at (the rate d.-sired) until maturity, and thereafter ni 
the «imo rate until paid." or lx-f"r.> and after maturity. 

(/>^ Uesp,^-tint; interest for a shorter jx-riod than one year. S-yimt, J 
provides "Kxcept as to mortj;ajres on real osfate. whenever any interest 
is bv the terms of anv oontra.'f. whether nmler seal or not, made jmyable 
at a rate txt dav. week, month or f..r any jMriod Ws than a year no intei- 
Mt exeeedin- the rate of five per cent, per anmnu shall Ix- reeoveral.le unless 
the enntraot contains an express statement of the y.arly rat.' of interest to 
whicli such other rate is ecpiivalent." S«vtion 1. 

l!v this s.rtion if a note were .Irawu at tw.lve per .•••nt. p.r annum 
it couhl 1)0 .'olleeted, but if it read, ••on.' per cent, a month." only five per 
cent, per annum c'nld In- ci>llected. 

(,) Whem-v.r anv principal moii.y or iuten-t -.vnnd l>y m..riiraL'c "t 
real e-tate is made pavable on the "sinking fin.d plan." or on any plan 
nn.ler which th.' paviuents of principal and inter.'st are blended, no in- 
t.r.'st what.ver -hall U- recoverabl.-. unless the mortjra^'e contains a "State- 
ment sbowiuL' th.' amount of su.'h |.rineipa1 ami th.> rate of interest cbarce- 
able thereon, .'alculat.'d vearlv or half y.arlv. not in advan<-e S.vti.m (,. 
Tf the rate of intere-^t shown in such statement is less than the rate 
whirl, would 1k' <'har2.-ibl.. bv virtu.' of some other stipulation ..r provision 
in the mortfiaire. no frreater rate shall bo recoverabl.' than th.- rn*. -h-wu 

in the stat.'iuenf. Section 7. ,,,,.,, 

(,/) No fin.', or |H.n:dtv. <^r rate of intere-t! hv -tipnl;i-,..l or ex- 
acted on anv arrrar, of j.rincipal or int.-r.'^t s,.<'iir.'.l by mortiraL'e ot real 
estate whi.'h has the cfT.'.'t of incicasimr the chai-jre on any siudi arrears 
bevond the rate of interest payable on principal not in arrears. S.-.-tion H 
■ (r) Tf anv sum is pai.l on account of unv infomst. fine or penalty, not 
ehar-rabb- or r.'.-overable under the three pn-cedimr pnrn-rraph.s. or sec- 






III 2.0 






_^ ./IPPLIED IM^GE Inc: 



tions, s\icli <ma niiiy Ik? rot'nviTfcl liack. nr ilnlucti'ii from any otlior interest 
or principal payable under siioli contraet. Seutiun i). 

(/) ('niiipiMiii.l iiitere.-t cannct he collected unless it is aiireetl in the 
contraet to be paid. 

(g) JJook accounts differ from negotiable paper in the matter of 
interest. A Iwok account ovcrihie will not draw interest unless the mer- 
chant has it jirinted on his invoices and bills ho gives with the goods that 
interest will he charged after a certain date. Tlicn it can only be five per 
cent, unless the debtor consents to ]iay more. Simjilv having eight or tt-n 
per cent., as the case may !x». printed on the invoices does not make the 
charge binding, and the debtor may refuse to pay anything over five. 

(h) A dishonored cheque commences to draw interest at five per cent. 
from date of presoTitnient. Tn Xewfoundlaml six per cent. 

(i) Judgments also draw five per cent, interest, except in Manitoba, 
where four per cent, is allowed. 

(;) Cliarterenl banks are allowed seven per cent. There is no penalty 
if they charge more, but they cannot collect more than seven jier cent, by 
suit. If a person voluntarily pays more he cannot recover it back. 

(/.•) In Xewfoiuidhmd the legal rate is still six per cent. In other 
respects it is the same as the Dominion Act, except that the yearly rate is 
not required to be stated where the rate per day. week, or month would he 
in excess of the legal rate. 

343 The Money-Lenders' Act. 

I'iie .Mon(y-L<n.lers Act of lUOC. Chap. 32 S.C., applies to all por- 
soiis in Canada (except registered j)awnbrokers) who advertise or hold 
themsi'lvcs out as carrying on the business of money-lending, and who make 
a practice of lending money at a higher rate than ten per cent. ]>er annum. 
"Xo money-lender shall stipulate for, allow ..r exact on any lugotiable 
instrument, contract or agreement concerning a loan of money, the princi'pal 
of which is uiiiler i?.">flO. a rate of interest or discount greater than 1- |ier 
cent, jier annum; and the said rate of interest shall be reduced to the rate 
of fve per cent. ]ver annum from the <late of jiulirment in any suit for the 
recovery of the amount d>ie." Section (i. 

Tn any suit concerning a loan of money by a money-lender, for a *um 
under $.'00. wherein it is alleged that the rate of interest jiaiil 'ir chiinieil 
exceeds 12 per cent, per annum, including all fines, bonus, expenses, re- 
newals, etc. (except taxable charges for conveyancing), the court may re- 
ojien any transaction therewith no matter how it has been closed up by 
statement or new agreement, and release the debtor from pitying any morn 
than 12 per cent, per annum, and if anythinff in excess of that rate has 
been paid or allowed by the debtor, the court may order the creditor t-o re- 
pay it, and may alter or set aside wlifilly or in y)art any sec\irity iriven in 
respect to the transaction. Section 7. 

Tn case of a negotiable instrument nefrofiatod to a hnn/i fdc holder be- 
fore maturity, although the original holder may have discounted it nt a 
hiffher rate than 12 per cent, per annum, the new holder will recover the 
whole amount: but the party paying the instrument may reclaim from the 
monev-lender all that was paid in excess of 12 per cent, per annum. Sec. 8. 

The Act applies to any ncL'otiable instrument or other coiiiract eivim 



to a monev-lrmlcr h>v a sum iiiuler ^r^w ,i>u- ;iii.l ]KiyMe k'fure July 1.,, 
1000 Wiiere the interest or discount is more than 12 per cent, per annum, 
thov must not hear ufU'V .Inlv 1:5th more than 12 per cent, befor.? judg- 
ment -.vould he ohfaincd, and live per cent. aftxT judpneut. Sect 'on 'J. 

\s to ne.nitiahli- instrument-; or other contract for sums under =§..00 
made lud-ore duly i:!th, hut maturinR after that date, they must not exceed 
12 per cent, after maturity. Section 10. , , , t 

The penaltv— '-Kverv moneydender is pruihy "f an indictable i.t,-nc(^ 
and liable to impris..nnHni for a term not cxeeedinjr one year, or to a oen- 
ahy not exeeedin^' •-?1.00(». win. lends niMney at a irreater rate than author- 
ized by this .\ct." Section 11. . . , . , . , 

"The Act does not applv to any small loan or transaction m which the 
whole interest or discount 'ehariied or collected does not exceed •'JO cent^. 

Section 4. o • o 

The .\e* ,].<'< to tlie Yukon Territorv. Section -i. 

350 Rates Allowed Pawnbrokers. 

Pawnbr.ikers niav take the f..Il'.\vini; rates a>ov, tlie principal sum 
advanced (Chapter 121, R.S.C.) : 

For anv sum not exeeedini: .50 cents the sum of nne cent for any time 
not exeeedimr a month, and the -;ame for every month or fraction of a 
month afterwards, an<l s.i on in the same proportion for every .50 cents \ip 
t^ •'?20. 

When the sum exceeds $20. the rate may be on all over that, sum five 
cents per mouth for each $4. and so on in proporti,-in for any fractional sum. 

No further rliarire can he made or recovered for warehouse room. 

The izonds may be redeemed at any time by pnyinc; the full rate for 
each expired month, and in a.idition onedialf month rate for any time 
up to fourteen davs, and a full mmth, if the time is over fourteen d.iys. 


355 Statute of Limitations. 

The time within which the various kinds of debts must l)o paid, or 
action eonimenced to recover payment, is fi.xed by Statute, and if action is 
not commenced xvithin that time thev are said to be outlawed. The debt is 
not caneidled, hut the cr-litor loses his rijrht to sue and recover payment by 
lejial pro.vss. In (Juel,, .• the <lrht is rano-licd. as well a-^ the nirht of action 

barred. . . 

Action is commenced hy the issue of a siiminons or writ. It is not 
required to obtain judL'nieiit' within the specitied time, but merely that the 

writ he i<<ued. . 

The Statute limitiuir the lime within whicdi an action at law must tie 
commenced for the collection or enforcement of a claim is called the Statute 
of Limitations. The timedimit for the various kiiul^ of debts and claims 
in iriveii in follow iiiir ^e^tions: 
356 Promissory Notes and Acceptances. 

Promissorv notes and acceptances In all the Provinces of Canada, 
excejit Quebec' outlaw in six years after maturity or last payment made on 




oitliiT itif.Tcst nr jirincipal. The date of snatiirity is the laat day of the 
three dnvs of ^raw, hence the time oiniiiiieiiciM t*. eouut tlie day after the 
third day of u'rai e. exec-pt for those payaWe on (Uiiiand. 

Any payment, or wriUcn aeknowlodginent of the debt, will kix-p the 
paper alive six years from that date as ajrainst the party making the fiay- 
ment or the ackr.owledirnicnt. Init not aL'aiii^t any otlicr pir:-on \vh'»se name 
is on the pajier. 

Ill (^iifl>;'<" tile time is live years instead of six. The law is tlie same 
in orher res])ects. except that tlie dM as well as the rifj}d of adion is barred 
in <^>uelH'c. 

In Xewfonndlaiid and Kiiijland the time is also six years. 

Demand notes are deemed to he due when they are made, and demand 
acce|)taiices wiieii they are accepted: therefore, six years fr-'iii those dat<>3 
they are outlawed as far as the maker or accejitor is concerned. But it is 
ditferent with endorsers on snch paper, as no riirht of action accrues again-t 
them until a demand for payment has been made and di^hondrcd. and there- 
fore action on tlir lull i~ imr ' irred a<ri 'nst theni niiiil -ix Ncur- from lato 
of demand. Hut a demand note havinjr an endorser must he pres<>nted for 
jiaymeiit within a "ff 'a -on able time." ..rherwise the endorsi-r is disrliarired. 

In (,)!ii lii'c tlu' time wniiM he five years, liiif in ntlu r re-pects the same. 
359 Mdrchants' Accounts. 

.\clion fur the recovery of iiii-rehants" accounts, and all oihcr debts 
founded lip m any leiidiuir or other contract, not under seal, must be com- 
menced within six years after the cause of action aro-e, or the iast pay- 
ment, or a written acknowlcdirment of ihe d'bt or claim. 

In Xewfonndland and Kiiirland tli ■ tinic is the same. 

In tlie Province of (^nibec it is five years for such accounts. Profes- 
sional fees, as of din-tors and advocates, justices, notaries, and rents, inicr- 
est ami commercial matters in ireneral are barrel aftor li\f vears from 
maturity or last ]iayineiit. 

If the debtor is absent from the Province wiH>n the cause of a<'tiou 
accrued, the action may be brouirht when he returns. 

In case of joint debtors, if any are out of the Provinee win n the cause 
of action accrues, a judpnent procure(l ii;;aii:st tho-c who were in the 
Province does not bar the creditor from enterinir action aiiaiiist surh absent 
debtor after his return. 

Accounts are. with reirard to outlawiiiiz. "itemized." that is. eai'h item 
or purchase is treated a* a se[iarate account, and all moneys paid on ii are, 
unless otherwise specified, applied to the oldest items. They commence to 
outlaw from the date of purchase unless there is a tim(> fixed for payment, 
in which case that would l)e the (Jiip date. 

.\ debtor has the ridit. when inaking a payment, to say on what partic- 
ular aceount it shall be ap|)lied. In ease he ncirhvts to do this, the creditor 
has the privileir*' of applyins it to any part he likes. In case neither one 
applies it to any particular debt, it is by law, in case of personal accounts, 
apjdied to the oldest items. 

The various jmrchases on different days lieinjr put into one bill and 
rendered to the ihbtor does not nierire them into on(> debt so as tii chanjje 
the time for outlawinf; of any particular purchase, but they all remain 

(.' o.f n!;r<l!a«e of eaeh item it is 





outlawed. uiiU-- llu'i-c h:is Ikcii u part, pavuifiu made ..u that individual 
purcliasc, or a written acknowledprient. (Five years for C^ielioe. ) A |iart; 
paMiieiit. on a running; account does not therefore keep tiie whole Ijill ulive. 

The items of :ir, aceo\int may, however, be merijed into a .*iuj;le (lc>btby 
what is ealbd :iii •■ .\ivn;nit Stated." To form an '•aivcnnl >Iat<d,"' an 
airreement nm-t bo collie lo between the debtor and cnilitor by which the 
wb'dr arc, lint is either verbally or tacitly acknoirlrdf/rd. Where this ha^^ 
not Iwen dniie. if ilie mendiaut wants a part pnymont to keep all the itetns of 
the aceoinit alive, he niiHf apply jiart on every individual jiurchase, even if 
it i- not more than tweiity-tive cents on eacli. Thi> can be done by n day- 
book etitrv without ■^ayin.'r anytliiuL' !> the debtor. The followiiifr or similar 
words would answer:' "Reci-ived t'r..iri daiiir- Siiiith. $+.50 on account, an 
equal ainonnt to be applied on each purcha-e up to date." Give tiie^custour>r 
the ordinarv recipt -n amount witlmut any reference to tlie sj>ceia". appliea- 
ti'iU von have made of the iiaymeiiis. 

.\ definite formal settlement in writiiiir Ix^twccn the partie-, even 
thoufrh no money is paid, will serve to extend the titue for another perioil of 
sis or five years, as the case may be. 

An 1. ().!'. i- an "account stated," as well as acknowledtred. 

360 Judgments. 

Jiidirment^ in all the Trovinces, except Quebec, (-ontinue in force 
tweiitv years from the date when entered, or last execution on them, or a 
written acknowledirment. 

In Quebec they remain in force for thirty years; Newfoundland, 

In New Brunswick Judirments in the Justices. Parish r.mrt. Con inis- 
sioners' or Stijiendiary ^[ar;istrates• Court outlaw in six years if no exe- 
cution issue-, but in Couiiiy (.r Sniu-eim' ('■■urt twenty years. 

Foreiirn judirment- cannot b.- eiif.uved in Ontario after -^ix years from 
the entry in the foreitrn country. 

361 Mortgages of Real Estate. 

MortM-a-i- on real estati^ in Ontario and Manitoba outlaw in ten years 
after matnritv or last pavnieiit on cither princi]uil or interest; in British 
Colnnihia. New 1 Irun-'.vlc'k. .\ova Scotia. I'riiice Kdward Island and Xew- 
foiindland thev outlau in twenty years: in Alberta, Si-^katchewan, North- 
West Territories and the Vuk.^n. twidve years, an.'; in <,>uebee thirty years 
if the mortaaiTC is <lulv rcfri^tered. 

In each Provinc' ami cuntrv a pari ,.aym<'nt of either principal or 
interest or a written acknowleiljrment of the debt will extend the time for 
another' vvr'v'] <4 ten. twelve, twenty ..r tliirty years, as the case may be, 

The mort<Ta"-or's ri-ht io redeem the mort<ras:e also expires ten, or 
twcdve, or twenlv vears in the respective Pivwinccs after the mortpgee has 
taken possession' of the land, or the last written acknowledirment ot the title 
of the mortsratfor hv the mortjiagec. If (here are more mortjra-ors than one 
the acknowledgment pven to one is efFectual to all. an.i to all person- caim- 
inc: throuirh any mortirajror. 

In case fliere are more inert cai^-es than one. or more per-ns than one 
la;^;,... ,l„. ,.-t„f,. «f tl,e ,novt._-ai'ee. the written acknowledirment of one 




or rnoro is ffTcotnal cnly apiiii-t the jhtsoih sij^iiiiii; it and those claii!iing 
iindor tlipni. 

362 Bonds and Agreements Under Seal. 

Aiiioii uj'.'H lii'.ids, odvcnaiils or any iiistruiiient under seal, except 
mortgiiges on real estate, may lie eonmieneed any lime within twenty years. 

363 Chattel Mortgages. 

As liiiuiiu <i,-\)Ujv and eredittir Chattel .Mortgii^e.- in ^'ewfoundland 
and all the Canadian I'rovinees, excvpt Quebec, will hold the elaini lor 
twenty years, bcinij an instrument under seal and not atToeting interest in 
lands. As against ntlier en'ilitors, li<iwev<'r, they oidy h(dd the property as 
srniriiij fur a period varyiui; in the diiTcicni I'rovinees iVnin nne to live years. 
C'liatt(d mort^raires are nut, u-(>(l in t^iielnM-. 

365 Ownership by Possession. 

A per,-(in haviiig c'ontiuiious peaceable p<>ssPasion of land (except in 
trust), paying t;^xes (in same and ireatinj; it as his own, aeknowledfriug in 
no way the riirhl or title of any other person for the same, iR'comes the 
owner of the property in Onta-io and .Manitoba after ten years; in Alberta, 
Saskatchewan, Aorth-West Territories and the Yukon, twelve years; in 
Kew Erunswick, Nova Scotia, I'rinee Edward Island and Newfoundland 
in twenty year?. In (^tiebee ten yearvS give a possessory title. It is suffi- 
cient if the possession is held by diiTercnt person.- holdini; in privity with 
•ach otlier. 

A pirsi.n. witlii.iit the knnwledfre of the sjrantee, ''.squatting" on land 
yet in a state of na'ure, usually called "wild laud," which has been granted 
by the Crown, but which the grantee has not taken actual possession of by 
fencing, or residing on, or cultivating some portion of it, must in all tJie 
Provinces, and Newfoundland, occupy it for I'O years to get title by posses- 
sion. He would not acquire the owncrshiii of any jvortion of the property 
which he (lid not actually (K'cuiiv for the whole 20 years. 

Land enclosed by a fence while the Ipml is ''in a state of nature." ami 
subsequent .survey showing the fence U^ in.'luiie land belonging to an ad- 
joining owner, the .'^tatute of Limitations woidd not commence to operate 
until such survey and discovery. 

In cases where a fence is fraud.ulently pln(i>,l or removed, tlio Statute 
would not commence to run the time the fraud is discovered. 

^ The Statute not merely bars the rifjhl of actum, but also extingHi.''hes the 
title of the person who would have been the owner of the land. Lawrence 
V. Norrev-, I.'', A.C 210. 

366 Devise of Rer;l Estate. 

Devises are liarred in tlie same length of time that mortgages on real 
estate are. from the time the right t^i receive a<'i'rued, unless devisee were 
a minor or under some other disability, in which ca.-<p the Statute of Limi- 
tations does not commence to run until the of such disabilitv. 

In cases, however, where a devisee woidd remain on the property, as, 
for instance, with the mother, and a brother who worked the farm, the 
claim would be kept alive no matter how manv vears passed. Cnivisional 
Court jtidirnient of Chief Justice Mulook and Justices Clute and "Magee, 
March. KtOft. in case of the will of Archib.ald Spence.) 

Tt is the same in cases of intcst.icy. The right of thr h(irs to a dis- 
tririotjve clirirn r,f tl'.e r'';il e»;tQfi^ of the deceased is l>arred ip.<' -p.ttio ler..'^h 
of time thev would be if there had been a will left. 



367 Legacies, and Arrears cf Interest. 

Lciiacit's whifli are left by the will ii charge upon land are barnni in 
the same length of time after a present right to receive iliem uc^-nied, that 
nK^rtgages of real estate are barred in the respective provinc<'s. 

Arrears of interest on legacies are barred in six years; live iu Quebec. 

Legacies which are not tMa<le a charge npon land, but are to be paid 
tlie leiratees bv the exeontors as dirfvted in the will, will depend npvn the 
wording of the will as to ontlawing. For instance: Tf legacies arc left with 
an cxecntor or trustee as an express trust, the legacy would not be barred 
bv lapse of time. But an executor is a trustoe only in a constructive sense 
and that would not take the h>gacy or annuity out of the Statute, hence it 
must be an .'XDress trust tr) prevent ontlawinir. If not made an erprrxs trust 
they ave barred in t]ie same length of time as those made a charge upon 
land :n-c l);irre(l. 

3G8 Annuities. 

WIkit ail anniiitv is jiavable iitidcr a ovcnanr or up >n a bond and is 
not made a charije upon, .u-' i)ayable out <.f land, it is a strictly persoiial 
annuity and is re.M,verabU for twenty vcai-. l^it where a per-^onal annuity 
is sriven bv will it is rimply a Iciracy .md nv-.n-rable 
niortiraires would be. .Xrrears of inliTc-t ..n it 'iily 
f Quebec. 
369 Dcwer. -^nd cf Dower. 

'i'l;- ri-lit to n-M.vrr dnwcr (where dower is allowed) by a widow 
out of her deceased Ir.isband's est.iite is barred in the same length of time 
a mortga-e on real estate is barred. The riuht to d"Wer accrues at the 
hu-l)imirs death. Arrears of dower barred in same time that interest is. 

There i< im time allowed for di-abiliiy on the part of the dowress. _ 

Where the dowress remains iti actual pos^^ession of the land of which 

fliC is .lowablc, either ah.n. witli heirs or devises of her deceased hus- 

ir tweiitv vears, as the ca-e may be, is 

in th(> -arne time that 
for six v<>ars, five in 

she gl\es u|i such possession. 

band, the ]'i riod of t<n or twelve 
to be ronijiutcd from the tinu 

370 Interest and Rent. 

In all the Provinces. excej)t QucIxh'. the right to recover interest or 
arrear> of rent is barred six years after it is due. or six years after an 
acknowledgment in writin- ha< Wm duly given to the ].erson entitled to 
receive the same. In (^lelx'c it is live years. 

This iiiclndcr. intere-^t on all forms of debt— accounts, notes, mortgages, 
lesacies, dowers. el«'. 
372 Personal Property, and Intestate Estates. 

I\.r-.nal pro]i,.rtv iriven into the ].o-.K'Ssio,i of another for any purpose 
.Iocs not become the prop.Tty of such person, no matter how hmg he may 
have them in possession, until six years from the time they were demanded 
back Tlien if six vears are allowed io lapse after a demand for their re- 
turn hi- been made\vithout entering action for their recovery, the right of 
action is barred. Gibbs r. Guild. !t Q.B.D. 159. 

In (Jucbec it would be five years. 

\cti(>n to r(>cover a distributive shan- of the jier-onal estate of a person 
dying intestate must, be commenced within twenty years from the time when 



the riglit aocrucil, which would gciK-rally bf at tlie deatli of tlic intestate, 
rspcpt in case of infancy or otlior ilisability. 

373 Easements. 

Til ;i(c|\iirc a i)rc^crii)tiv(' riiiht to tlii' n>o of a lane or way over another 
]i('rsoii"s |pro|i(i'ty the riirht must 1m' actually cnjoVfil hy tlic pirsou clainiiiiij 
right thtTcof without intiTru|ilion for the full i>erio(l of twenty years 

The same holds go<;d for a iratrr pipe or (Irain through a neighbor's 

Tliis applies to all the provinces and >Cewf.>niidl;nid. 

(a) No teli']dioiu' or tele:rraph company >hali Ix' deetned to have ac- 
quired any easement by prescri))tiou or otherwise in respect to wires or 
cables attached to private property or bnildiuirs, or passinj: throtigh or 
<'arried o\er such property unless where the coniiiaiiy has obtainecl a "rrant 
from the owner of the property, 5 Edw. VII., Chap. 14, Sec. 74. 

374 Crown Lands. 

>.o a.-ii ill liy tiic Crown ( I'rovincial) to recover lands or any rents 
or interest in lands can be brought after sixty years from the time when 
the ripht to hrini; action first accrued. 

An acknowlediriiient in writing extends the time sixty years from date 
of su(di acknowledgment. 

Xo letiiTih of occupancy of the shore's iiiid margin- of streams owned by 
the I)i. million gives a right of possession. 

375 Disabilities. 

W'lirn ilicri' i- an\' 1( iral disability on the jiart of either the debtor or 
creditor so tliat the action cannot he roiiiuiriu-cd. the time does not birin 
to run until the disability is removed. 

The disabilitv, however, of whaie\cr nature it i-. inn<f bi' in r\i=tencp 
at the time when the debt became due. if a debt, or in other cases "when the 
cause of action arose," or "tlK' right tirst accrued," or '"the fraud was ilis- 
coverod,"' for instance, in cases of infancy, idiocy, in-anity or ab-ince from 
the Country. 

If the debtor were living otitsiile the province at the time tlie debt fill 
due, t.he time for outlawing wi^uld ucit conunence until l.e returned. If. 
however, he left the country after the debt was due and iK'fore action was 
cotnmenceil, it would then not form an exception, becau-e action c">uld have 
been taken to collect b(>fore be went away. 

The ab-ence of one joint debtor frmu the countrv doe- not prevent the 
Statute from rtinning against the other. 

I'is!ibilities. however, do not hold inilitiniiely, and each ])rovinc(i and 
couiiii-. ha- fixed a sfaliilii"y limit in eai'h cas(>. 

376 Reviving Outlawed Debts. 

In promissory notes, acceptances and bofik accounts, a part pa\-ment 
or a written acknowledsrment Avill revive them and keeii thein alive again 
from iliat date for a further period of pix years. 'Mortgages, legacies, 
dower, rents, etc., are kepr alive in same manner. 

In Quebec a part payment or a written acknowledgment before the 
debt is barred liy Statute will kee]) it alive, but would not revive the claim 
after it had l>een outlawed, as the debt itself is cancelled as well as the 
riirht of action barred. 



Money also paid by the debtor to tlie creditor on account, without any 
instructions as to what dfiit it shouhl aiijtly to, may Ix' apiilicii by the 
creditor (except in (^ucU'i'), to any such debt that has U-en barred by 
Statute, auil thus rcdtico it. This ciinnnt be by a third \n-ty to whoui 
Hueh tlebt may have U'cu transferred, neither dix-'s it revive the balance. 

I'aymcnts of money on a promissory note by one of the j)arties do not 
prevent it from outlawing iti six years (five for (Quebec) so far as the en- 
dorsers are concerned. 

W'riiieu ackuowledj^meuts from one juiut (ji btur wil! unt iitfect the 

A wr-tten acknowTedpmetit .it' a ili!)t that will take it out of the Statute 
re(jiiin's to b« : 

1. .\u : ci-.iHiwleilniiieiit ot' till' ''(lit from which a pr>iiuise to pay is in- 
ferred, or 

'2. There iiiu-t li',- an uiii-i.tKlitiniuil promise to pav the drlit, or 

.'5. Tliere nnist 1h' a conditional ]ironiise to pay the debt. ai:d eviilenco 
thut tiic condition has been ])erfori'ied. 

A promise to jiay ;i3 a <lebt of honor is not sutficicnt, as it does not 
admit the legal liability. 

.Vn ackiiowlediciueiit of the (hiit, couple] with a statement that he will 
never jiay it. will not iak(> tiic delii out of the Statute. 

377 Exceptions to Outlawing. 

r.aiik i>ills or bank iiot_.'~. of other evidence of debt issuc'd by a bank, 
never outlaw by la]ise i){ time. 

Statute of Limitations does not ap()ly to express tnists. For in-tancp, a 
farm deeded in irii-t to a ])ers(iu for heirs or other persons would never 
lter,iiiir the pi'operty of tlu' trustee by ])ossessi()n, if he occupied it sixty 
years. Land owned by the wife, but worked and improved by the husband 
and even asses^eil iu his name, does not Ix'come hi< bv riirhf of possession. 
To money left in bank in tru-t the Statute of Limitations docs not apply? 
and no laiise of linu' will bar the rii;ht to recover if. 

ciiAi'Ti;!; XIII. 


380 Chattel Mortgages. 

A Chattel Mortarape. frequently incorrectly called Bill of Sale, is a 
Urn on personal property — goods and chattels. It is in reality a ileed or 
convevance of the property as security for a debt, or for borrowed money, 
with a pror-iso that when the debt is paid the niort^rairc becomes nidi an(\ 

The debtor is called the niortsragor and the credit, ^^ the mortcacree. Tt 
is a conveyance of the title, but not of the possession of the jiropcrty; btit 
the mortgarree mny take possession of the property also on a breach of any 
of cho covenants. 

The Statutes, except in Yukon, do not ^ivc a form for chattel niorttraires 
with whicdi tliex' are conipcUeil to coiu]ily. nor <lefin( what coverumts they 


( IIMTKI. M(»llT(iA<lKf«. 

l„.ll ...ulain- tht-rcfore, to kn.nv tl.o .•ovi-imutH, proviso* an.l condi- 

tl,e coveiiants m^ .-on.liti.m. n.ay vary unx-h. 1 Iwrc .s a .1. bintt y 

form for a I)i^chari;e and R.-m-wal. , , 

In Ouob(H- .-hattd luortfraL'.'s arc ii-t u<vi\. Kills ot ^al. vmu 
prcl^n "h botw....n M,o .f.-l.t-r and -roditor. hut aro "';' '"•;''"';^. ^J 
Sn>t third r-ti..^ .mV-~ t1,o ...o.l. aro takon r"— n of l.v ,h,. -rod.t.r. 

2«^,,f^^^"';*;'^^:f.^>C■l..-..■•i,..i"n of tho ,o.«U and -l,.,...!.. .. th.-y 
■ Jl V d ; uUl .1-. W1..T- thov are located and who.n pos.o.- 

"-';.":i,si:;:^-nr^:;di::;,,d;;iLeJ;;.^ ^oh. ^d .ndition. 

332 Must Be a Bona-Fide Transaction. ,„„,,.^ of 

Fverv uiort-a-- or .•-.nvvan.-e nit...i.Ud to o,,.Tatc a.s a "" '"^''"^ '" 

r' i „i , i„» .' nJ „». (..r th,. ,.»r,..o „f ,.r,,„.,.,i„, .!«■ ™..l. ,.n,l 

liv mi ordfT from oniirt. 

«nd !;.Snto.t,t to hold the ,,M. v^ainst jnd.n.nt .■red.t,,,.. and snb- 



Bcquftit j)U»chiuier* and iiiortj{aj,ii'<! iu guoj luilh f»'r valuable lousiiU'ration, 
thu martguge or Dill of .Sale iiiu.-t be regi^'lere.l iu tlie ili^triet wLere Uie 
goods are loeated witliiu a ^invitied iiiiiiib.T of days, logt'thcr wilL two 
aliiilavii.s, one of u »ul«eribiiifr wiliii/!'!*, and one of bum /u/e« by the iiiort- 
gauf*', .>ilier\vi.-e iij;ain»t ^llell purtie* it Ur..iiie.« ab-.oliiU'lv null and void. 
The time varies in llie diilennt ].ro\inec8. It, w.-uld. however, still be good 
against the di'btor or mortgagor as evitlence of di'bt and u lieu on the goods 
for the ainoiint*. 

K.gistered Mills ..f Sale have iiri<irily over those unregistered, and where 
more than one registered Hill of Sah- eovers the same proi>eriy, they have 

i)rioritv in rdiiig to the <late of registration. 

A"snbse(|uent Hill of Sale given in substitution for a prior unregistered 
Bill of Sale, and eovering the whole of or any part of the same property 
covered by the tirst. and given to stn-ure the (iame debt or any jmrt of such 
debt, it shall, so far as it is the same debt as the first, and also so far aB 
it covers the same ehatteN as are covered by he tirst, l>e absolutely void 
unless it is established to the satisfaction of the t'ourt that the swond 
instrument was iriven to correct some nuilerial error in the tirst, :ind not 
for the jjurpose of evading the IHlls of Sale Act. 

In Manitobii the Judge of the County, and in all the other Western 
Provinces and X.-W. Territori-s, the .!udi;e of the Sniireme Court, has 
jiower to ri'ctify omission to register a chattel mortgage within the prc- 
scribi'd time, or to correct any error or omission in such mortgage, subje<'t 
to the rights of third parties that may have accrtied by reason of such 
neglect or error. Tiie same authority would reside iu iln High Court 
Juilges of Ontario and the Eastern Provinces. 

in Ontario tliev require to lie registered at the office of the Clerk of the 
County Court within tive day; after their execution. They rcMKiin in force 
one year without renewal. Fee for registerinir. ">f^c. 

For the districts of Algoma, Tliiuider Hay. or Xipissing, they imist bo 
filed within feu d;iv~ after their execution in t!ie office of the District Court 

Vnv tlie districts <.f Tarry Sound, ^Muskoka or TIainy Piver they must 
1«- tiled within ten days in the ntlice of the Clerk of the First Division 
Court of tlip district In which the goods are sittinto. 

V«v the Provisional county of llaliburton they tinist !),• iilrd withii\ ten 

days from execution in the office of the Clerk of the Fii-i Divi-i..n C.Mii-t. 

' For the District i.f 'Mnnitoulin they must 1)0 tiled witliiu ten days in 

the office of the Deimty Clerk for "Manitouiin. Also for Algoma, Mnskoka, 

Tlumder Pav and 'Xipissiri!:. registration must be made within ten days. 

Chattel morts-agps made hy an incorporated company whose head office 
is not in Ontario, thirty days are allowed for filing. 

Bv amendiuent of lOOS, Section rjl, anv mortirage or other instrument 
made hv an incorporated ciunpanv securing Imnds, delienturcs, notes, or 
other securities in anv rnllinsr M<M-'k which is subject to any lease, condi- 
tional sale or bailment to a railway company, the same, or a copy thereof, 
in.iy be file.l in the office of the Provincial Secretary within twenty-one 
davs from the execution thereof, and no further filing or regisrerinc .shall 
he necessary to he binding against the creditors of such eompanT, subsequent 
purchasers nr mortgagees. 



Jii Mniiiluhii tlicv must !«• liliii at ilu- (■liice of the Clirk of thf roiinly 
Court iu till' ri>,'isiruti()u tli.strict in wliicii the gotxi-t aru bituate, within 
twenty tliiys from .lute, and if not tileil within that lime they cannot be 
liletl thereafter. Thiy reiniiin in f-r.'e two years without renewing. Fee 
for filing, 50u. 

A co|>y of any ehattel iin.iipi^c. coinlitional ^ah' or lease re^'J,ectiug Uie 
oars and rolliui; stoek of railways, eeititied l>y a notary to he a true copy 
thereof, may In rejristeri i| in the olliee of the i'rovineiuf Secretary, and will 
then need no renewal, i'ee. $:,'.(tO. 

The registration of a discluir;re of (■nine is aUo $2.00. 

By amendinent of 1!»08, Chap. 1. it is provided that if a eliaftel mort- 
gage is not rcgictered within tJie statutory time, or a discharge or a renewal 
Btatenieut has not Iwen duly registereil, or if there is any omission i>r mis- 
statement of the name, resideiiee or occupation of any person in connection 
therewith, the Judge of the ("ounty Court is empowered to onh'r such mis- 
take to 1k' rectified, or to e.xtend tiie time for registration on such terms 
and conditions as lie may think fit to direct, subject to the rights of third 
parties tlint may have accrued l>y reason of such neglect or omission, or 

Where a mortiriiijre is made hy an incorporated cctmpany whose hear! 
office is not in iFanitoha, it may be registered within thirty days instead of 
twenty, as for other mortgages. 

Where a morf<:age is jiiven by an incorporated company as security for 
debentures, an<l the by-law of tlic cfmipany authorizinj; the issue of sueli 
debentures is filed witli tlir mortgage, the m >rtgage does not need to be 

Growing crops ca-;not be mortgaged, except in payment for seed prain, 
and in such case they have priority over any mortuntrc then rciri-;tprod and 
also over any p.xecutions in the bands of a sherifT. 

In Alhrrla. Sasl-nfrhvirnn and the North-WrM Terriinrirx tliev must 
be filed within iliirtv days from execution at the office of the Clerk of 
the Tiiiii-tration District in which the property is situate, and thev only 
take efTi et from date of tjlin.:?. Tlicv jire jjood for two years without renewal. 
Fee lor filint; is ."SOc. 

Mortgages apainst £rr*^vinlr crn|is ;,re not vali<l unless it is to secure the 
purchase jirice of seed jxrain, and then they have preference over all other 
mort<ra>res or bills of sale previously ij:iv<>ii, or executions. The mortiraire 
must contain the date of the pureliaso of the seed prain, the number of 
bushels an<l price per bii>Iiel, and the same infonmi,. n must be in the 
affidavit of honn fdeit. 

In Alberta, amendment of 1009, Chap. 4, provides that for any bill of 
Bale, chattel mortiraire. cnniliticmal sale, lien or otlier agreement resiiectiiii; 
rollini; stock and other railway e(pii])mcnt may bo registered in the office 
of the rjogistrar of .Toint Stock Companies, and needs no renewal. Fee for 
registration and for a discharge is $5.00 respectively. 

In British Cohimhin chattel mortgages are filed with the Registrar of 
the Coimty Court in each coimty or Kegistration ];)istrict in which the 
property is situate, and, if more than one IJcf^islrar of a County Court, 
they are to be filed with the nearest one within the county or district. They 
are good for five years without renewal. 



When the g.HHU covorrd by a Bill of S. . w.tL.n the eorpon.u.. 

limiu of a citv or town in whi.-h i* Hituato an oth.-e of tl.o bounty Court 
when- HU.h I ill! of Salt, n.ay be registon.-l, it muM tL.-n U' r.-^M*U-r...l 
within five .lay., but in all other cases twenty-one days are alloweti. ^. 

for tiling i* $2.00. _ . i i i^.„ 

.MortRa-es ^\^vn bv ineorporate-l coiupanuM to atHMire bonds or dt-Un- 

turt- covtrrnj; r.ul e.tato a. w.ll a* pergonal ehatteb, ,f n-g.-.tered 

to tho n..,uir.,n.nts of .iu- Land. IJ. , A.t need not be re^.^tered 

am.rdinK to the provisions of the liills of Sale Act. 

Jiv a.nendui.nt of 1!.0S. (ha,.. .1. u IJill of Sale made by a company 

mnst"lK. acco.npanie<l bv an atKdavit made by the, secretary, or a 

dir.ctor. iu the •' Statutory Form 15" provi.led by the Act. 

Creditors of the niort^'ajjor may frotu time to tuue demand in writinR 

from the tuortgaRec a statement of tlic account bc^twcen the mortgagor and 

'"'""s^crs.atemrnt asked for must Ik- furnished within flftcor days after 
the receipt ot demand. lie may charge the applicant a fee of 30 cents 
per folio for such .statement and declaration. 

On application to the .Tn.lsic of the Supremo or the County Court tho 
mort-agec may 1m^ relieved from pivinfi such statement if the Jtirtpe deema 
it not necessary. 

In Yukon Tcrrilonj tliev must he ref-istercd Nviihm iluity d^ivs 
execution in th. Rcpistralion District in which the powls are 8itu:itr. 
for repist.rimr, *2.()0. p«h1 for two years without renewal. 

In \e,r Firunswich they must he filed within thirty days in th. 



Fee for filing is 25 eent.s. Must Ix' renewed 

of tho Registrar of Deeds, 

^^''''inNova Sfoth there is no lini,. lin.ii Nvirlun which they must be filed, 
but thev .mlv hoi.l irood aL-ainst of in^olvncy. bnna /,</c purchasers, 
iu.lgment creditors and subsequent mortgagees in good faith for valuable 
consideration after filing. They remain in f..rce three yar^. 

Either the oricinal Dill of Sal,, or a ccrtihed copy may U; ti ..1 and it 
there is anv schedule anncxe.l or r.f.rr. d to it must also be includcl. and 
if the inslrumcnt is snbj.vt to any .oiHlitiou whatever it must l)e consid- 
ered a part .d' it and 1... with the instrument, other^vlsc the LiU of 
Sale is null and voi.l airainst all third parties. 

In Prinrr Edward Island the original must 1..' tiled in the ofh-'C of the 
Prothonolarv of the Su,.reme Court, accompanie.l by the usual aibdavits 
of witness an.l hona fidc^. otherwise is v<.i.l airamst third parties. 

In Newfoundland, liills of Sale an.l niortgag.-s of personal i>roperty 
heing deed^ of gift, or where the consideration is over $400 and where 
the poss,.ssi.m of the property remains in die mortgagor, thev must he 
r,-istered in the office of the Registrar of Vcr,h in order to be binding 
a-ainst subsequent pur.dia-ers. tnorlirag.^cs. etc.. or an assignee when a deed 
S' eonvevance i.s ma-lc for the benefit of creditors. , ^,^„ • 

Fee for registerinsr when value of property does not exc.v;d ^^^^ ^^ 
fS^.nO. and vdion cNccr.lin- !*ino it i- 25 cents extra for each aaditional iJlOO. 
384 Removal of Mortgaged Goods. 

Chattel mortgaircs onlv hold the property in the one county or rogis- 
^ .:„-. i:.f-:,.f ,v'."re thev are filed or registered, and every chattel mort- 



CIIATTKL MoitrcAia-s. 

ga^'i' contains a covenant that the go.uls will not bo r"iuovL'il from tho 
couuly or re Ji^^Ir;ltillU distrk-t whirf llii^v arc sitnatp. 

if ail or a portion of the piods covcrcil bv a eliatti-l mortgage s^hoiild bt^ 
permanently removed to another eoiintv or registration di-triet, a duly certi- 
lied eojiy of the mortgage must Ih- tiled in the )>ro|)er othce of that county 
or di'-tviet fi>r chattel nmrtgages, dtherwise the goods are liable to ?ciz\ire 
and sale under an execution, lu'ilher woidd the mortgagee have recourse 
against subseijuent iniridiasers or mortgagees for vahie. In ease tlic gooda 
are removed without consent they may be seize«l and sold to satisfy the 
mortgage on a breach of the covenant, if the mortgagee prefers it. 

ill. Onlnrio a copy of the mortgage luiist be tih'd in the otlice of the 
County Court Clerk where the goods have been removed to -vithiii two 
months from such removal. 

Ii> Manitoba six nioiitlw. i.iut sid>-e(]neiit renewals mu-t be filed in such 
Judicial District to which the goods are removed. 

Ill AllMi-ta. HaskatehewMii. Vukon and X. \V. Territories a certified 
copy must be filed with the Clerk of the Kegistration District to which they 
are removed within three weeks from such removal. Ff mortgagor wishes 
to remove ilie iroods from the district, the Statutes require him to give tho 
niortiaKee noti'^e twenty days ]ir! n to such removal. 

385 Form of Chattel Mortgage. 

r!i( i'..ll..\' 'iil; ( l:;in, 1 \^.it:rase is an up-to-date form that i- being 
n.sed by conveyancers in gereral. filled out in full, : s a guide for inexperi- 
enced persons to follow in the wording of the different parts. Tiie follow- 
ing illeiral proriso is omitted: '"and for such persons to break and force 
open anv doors, locks, bars, bolts, fa-tening-;, hinges, gates, fences, liou-es, 
buildinirs, eiudosures and places." 

It is a criminal offence to break open a man's house or bnrii and no 
mortiracror can iriv(> a inortgairee a bgal riirht to commit a crime. .\ny 
mort^aeree atteinjuing to carry oi,t this jiroviso would be liable to impvison- 

TLM9 1^n^Ct1tWfC made (in dnpUrate) the tenth day of May. one thousand 
nine hrndr" ' ptmI trii. 

BFTwrKN .latnps Sit!i'h. of flip Tov.-n^'iij) of s'taniforil, in the County of Wplland. 
Provirre of ()nt.'>rio, merchant. I'eri'inatter inllcd the MortRasor. of the first iiart; and 
Waltpr Wintrr^, of the Tovvnshin of Stamford. In the County of Wetland. Provlme of 
Ontario, yeoman, hereinafter onlled the .MortKau'e. of the second part. 

WITNESSETH that the Mortirasror for and in eonsideration of Five Hundred Dollars 
of lawful money of Canada to him in hand w"!l and truly paid hy the MortjjaK'^e at 
or before the sealing and delivery of these Presents (the receipt whereof is herehy 
arlinowledL'ed) liath iiranfed. harirained. sold and assi^^ed. and hy these Presents 
Doiii OiiwT. bargain, sell and assign unto the Mortsnei'e. his executors, adminis- 
trators and assigns Ai.i. and SiNnfixn the goods, chattels and store fl.\tures li -rein- 
after partif iilarly mentioned and described; that is to say: 

One hay horse four years old. having lilaek mane and tail and white star on 
foreliead: three Jersey Cows; twenty-four Southdown Shee]); thirty-six Hives of 
Bees: one Cladstone Carriage, made hy Augustine & Kilmer; one Democrat Wagon; 
two sets single Harness; one light Sleigh; one .1. & .]. Taylor Safe. \o. ■i:!2(i; all the 
conni...-. shelving, show eases, weighing scales and tixtures used In connection wltb 
the grocery business eondtieted hy the .Mortgagor in the village of Stamford. 

All of which said goods and chattels are the property of the Mortgagor and are 
now upon the premises situate and known as I.ot .\o. m in the seventh Concession 
fn the Township aforesaid, in the County of Welland and Province of Ontario, together 

riiATTi K \I(ii;ti;a(";i-;s. 


with all Boods and rl,att,.l«, that may be ad<lo,i to or suhstilutr-.l for the satd goods 
nn.i ph-ittpls or nrv of them as herpln mentioned. 

To . vV ANO • .., u- all and singular the said Roods, chattels and store Hxtures 
heret-v asV^l-ne^l or Intended to be assigned unto the said Morlpasee ot the second 
part his executors. adn>lnistrators and assigns, for ever, as his or their own proper 
goods and effects . ^^ oonrtit.on that if the 

"m'ni' .ml |mr|,o.i» ..,v11,1.,b ^.^Mn ,on,ali.eJ u. iS. co.iirar, il.^™! 1. •TO-l.e 
notwithstandiu;;: .„nfo.o =i nil inH w.ll 

warrant and •'•'^' ^'■'^'!'f:;'^''.fj,'^* ",,>! executors administrators and asslCTs asainst'';h:- M:^^=^m/h;rex:::;uo;:r=:;:d administrators, and a^amst all and every 
other person or lersons whonisoever. executors ar.d administrators, 

;';;;=:, "sr,",',™ z ■;;;'=;,.'» s »;fi ... ..» ;« i-;, ■'"', :':i.i"i 

are . rTl.v au.hori/.ed and empov.ered to soil the said goods and chattels or an> of 
then oanvrrt hereof at „ubiu- auction or private sale, as ,o th*"'" <"■«":-■ °' "f ™ 
ma 4em meet- Am, from and out of the proceeds of such sale in the hrst to 
nav and rJmb rse himself or themselves all such sums and sum ot money a. ma> 
Fhenb dm bv virtue of these Presents, and all such expenses as may have been 
n rrni V tL Mort^aKce. his executors administrators or assigns in cc.nse.,uence 
of the defaul neglect or failure of the Mortgagor, his executors, rators or 
aluTs .1 pavment'of the said sum of money with interest thereon ^^^ a"ove uien- 
ffoi^ei or in consequence of su.h sale or removal as above mentioned, and In the next 
nlace to piv .mto the Mortgagor, his executors, administrators and assigns, all such 
«,rnlus as niav remain after such sale and after payment ot all such sum or sums 
o? monev and nte est thereon as may be due by virtue of these Presents at the .me 
ot such seizure and after payn.en, of the costs, charges and expenses Incurred by 
Buch seizure and sale as aforesaid: 

I'KovuH u MvvAVs, nevertheless, that it shall n..t be Incumbent on the Mortgagee 
his e'e tors administrators or assigns to sell and dispose of the said l^oods and 
chat els but that in case of default of payment ot the said sum of money with li^ter- 
Psfthereon a aforesaid, it shall and may be lawful foi the Mortgagee, his executors 
Idn inls^rators or assigns peaceably and quietly to have, bold, use occupy, possess 
and tioy the said goods and chattels without the l,>t, molestation, eviction, hindrance 
or ii^terruption of the Mortgagor, his executors, a.lministrators or assigns or anv of 
them or anv other person or persons whomsoever. Ano the Mortgagor doth hereby 
further c.,v■;.^A^•T. I'komisi: a.sp acrkk, to and with the Mortgagee, his executors, ad- 
mit 1 'trators and assigns, that in case the sum of money realized under any such sale 
as above mentioned shall not be sufficient to pay the whole amount due at the time 



of such salp, that the Mortgagor, his ,.xf,utnrs or aaminlstrators shall and ui-l forth- 
with pav or cause to he paid iintn th.> Mort^'aiip.'. his .■Neriitors, admiiustratois and 
assigns all such sum or sums oi; money with interest thereon as may then hr r.tnain- 
Ing due: . , , . 

And tlic MortKBKJr doth put the Mortgagee In the full possession of said goods 
and chattels hy delivering to him this Indenture .n t^e name ot all itie said goods 
and chattcds at the sealing and delivery hereof: 

AM) the Mortgagor (uvknants with the Mortgagee that lu^ will, during the con- 
tinuance of this mortgage and any and every renewal thereof, insure the > !iatt( Is 
hereinhefore mentioned against loss or danu^-e hy hre in some insurance oTice 
(authorized to transact business in Canada) in the sum of not less than Five Hun- 
dred Dollars, and will pay all premiums and moneys necessary for that purpose as 
the same becomes due. an,l will on demand assign and deliver over to the said 
Mortgagee, liis executors ami administrators, the policy or policies of insurance and 
receipts thereto appertaining: Puovidki) that if on default of payment of said 
premium or ■^ums ot money by the Mortgagor, the .\lorigagei\ his exe<uiors or adminis- 
trators nuiv iiav the same, and su'h suras of money shall be added to the debt hereby 
secured land si'iall bear interest at the same rate from the day of such payment) and 
shall be repavable witli the principal sum hereby secured. 

In witnkss whebkof the parties to these Presents have hereunto set their hands 
and seals. 
Signed, seale(i and delivered \ Jamk.s SMirit. 

in ihe presence of 


Recfivkii (in the day of the date of this Indenture from thr Mortgagee th, 
of Five Hundred Dollars vientioned. 
Witness: 1 




Jamks Smith. 

Affidavit of Mobti;\gee 

ONTARIO: i 1. Walter Winters, of the Township of Stamford, in the 

County OF Wf-LLani), 'county of Uelland, yeoman, the .Mortgagee in the torcgoing 
T<, wn: I Hill of Sale by way of Mortgage named, malve oath and say: 

That James Smith, the Mortgagor In the foregoing Hill of Sale by way of Mort- 
gage named. Is justly and truly indebted to me. the deponent, Walter Winters, the 
Mortgagee therein named, in tlie sum of Five Hundred Dollars mentioned therein 
That the said Hill of Sale by way of Mortgage was I'xecuted In good faith anrl tor 
the express i)uri)Ose of securing the payment of the money so Justly due or accruing 
dufc as aforesaid, and not for the pur|iose of protecting the goods and chattels men- 
tioned in the said Dill of Sale by way of Mortgage against the creditors of the snld 
James Smith, the Mortgagor therein named, or preventing the creditors of such 
Mortgagor from obtaining payment ot any claim against him. 

Sworn before me at the Town of . 
Welland. in the County of Welland. I 
this tenth dav of May, in the year j" 
of our Lord, IDl". ) 

K. R. HKU.nMs, J. P. til and for the County of Welland. 


AiFiiiAviT OF Witness. 

ONT;\RIO: 1 

CocNTv OF WEti.ANn, • I, Charles Summers, of the Village of ."■ lagara I'alla 
to wit: I South, In the County of Welland. make oath ano say: 

That I was personally present and did see the within Hill of Sale by way of 
Mortgage duly signed, sealed and delive-ed by James Smith and Walter Winters, the 
parties thereto, and tnat the name Charles Summers set and subscribed as a witn 'ss 
to the execution thereof is of the proper handwriting of me this deponent, and that 
the same was executed at the Town of Welland, in the said County of WelUw on 
the tenth day of May, one thousand nine hundred and ten. 

Sworn before me at Welland, In ^ 
the County of Welland, this tenth |_ 
day of May, in the year ot our |" 
Lord. 1910. 1 

E. R. Hellems. J.P. 




388 Mortgagee 's Privileges at Maturity. 

If a (jbattel iiKirtga^e ha\iii^' thf iimkiI (■(m'luiiits for payment of prin- 
cipal auJ interest is not pai.l at maturity ihe mortgagee is free to take any 
one of several courses: 

1. He may go Lim^^elf upm the prciiUM's and take possession of the 
goods and remove them, or he may send a bailitf. 

If he takes possession of the goods he is expected to srll them either by 
public auction or by private sale, and if there is any surplus money after 
payment of prineii>al, intt>rest and costs, it must be turned over to the mort- 
gagor or his legal representatives. But some mortgages are so written that 
he^is not b.jund to .^ell, but may simply take pn?seHsion of the goods and 
hold them as his own. 

If the mortgagee sim].ly takes possession of the goods and holds^ them 
as his own without selling them, the mortgagor has then an "equity of 
redemption" for a limited time, which the courts will recognize, and he 
iriav enter an action a^ain-t the mortgagee for redemption or sale of the 

goods. . 

2. lie may sue the mortgat'or for the amount due on the mnrfgage. with- 
out a .seizure of the mortgaged iroods. or 

."J. lie mav leave the goods in the hands of the niortiragor and extend all 
the time for payment he desires up to twenty years. Any time during that 
time he deems it necessarv he may take possession of the goods, if they can 
be found. Of course, if he <lesires to keep both his lien and preference 
over other creditors good, he nmst file a renewal statement within the time 
jirovided by statute in the Province where tlie goods are located. lie can 
file this renewal statement wiilmut the mortgagor's consent or request. _ 

.\ chattel uiortiraL'e drawn for a shorter period, in any of the Provinces, 
than time fixed by statute for renewal, that is not paid when due need not 
he closed or renewed until the expiration of the statutory time. An earlier 
renewal would be u«eless and a waste of money. 

A chattel mortirasre that has not been renewed at tb" time accn-d- 
in^ to statute, if the mortgagee wishes to retain his priority over otber 
creditors, he must take possession of tlie coods. after which any desired 
time may be extended. Of cour-^c. if durins the time the mortgage stood 
void airainst third parties, ary of the goods were imrcha-^ed or mo.-tgaged 
or seized under execution thr mortcragee could not make his niortgacre valid 
against su<di parties by takincr possession, but it would be g<iod aL'ain^t all 

389 Causes for Taking Possession. 

The mortgagee cannot take possession of the goods un'il the mort^iure 
is due, unless Tome covenant is broken that gives the right of possession. 
(Sec previous section for proceedincrs at maturity.") 

The things that usually give the ricrht to take possp=sion of the mort- 
gacred ffoods are: 

1. Default in payment. 

2. Removal of the good> out of the Registration district without written 
consent of mortgasee. 

3. Seizure of the goods for rent or taxes. 

. -n . * .- i^..:„-i «...r.:,,.f tl,^ rpdofla iip''**»" anv indtnncTit at law. 



il imi-t 111' renewed 
^'| I'll ti'niii year lo 

veiieweil within the 

Territorie:; tlicv 

S. If iiiortpaROr attempts to sell or dispone uf any of the goods. 
Fiirniiiire and piods not iaeliuii'd in the niurtgage cannot be seized 
unless tLere is a general idaiiso covering them. 

To take posses.-iou illegally gives the owner of the goods nr his legal 
representatives a claim for damages which may be recovered iiy urdinary 
suit, and if successful the aimiunt of the juilgiuent wuuld he ai>plieil mi the 
mortgage debt. 
390 Renewal of Chattel Mortgages. 

A ehatie! iiiiirii;;i::e, luing ^m in-tninieiit uinler M'al and not atl'eeting 
interests in lands, holds tlie claim against the debtor for twenty years. Each 
Province has, however, ti.vcd by stntnte a shorter time in wliieh if holds 
both the lieu mi the jiroperlii ami ]iiini-ity nf ehiim ever mhir emlitors. 
Therefore, if the mortgage is not paid at maturity and it is ih.-ired to l)e 
binding again>t third ]iarties if must be renewed [ironiptly within the time 
provided in each Province. 

I71 Ontario it holds the |iroperly for one yi'ar mdy from date of execu- 
tion unless renewed, or the u'oods taken f)ossessi..n of. m- a mw moi'faago 
executed. To hold the goods against other creditor- 
u-ithin the Inst thlrtij daijs before tlie year expires, and 
year as long .as it runs. 

hi Maiiihitia they run for two year-, and iiiiist lie 
last .'iO days before the time expires. 

In AWrrta, Saskatchewan. Yukon ami Xorth-We-t 
leiuaiii in force for two year- tVom date of filing witlmnf rene'val, but must 
be renewed within the last thirty days before the expiration of the two-vear 
period; and after the first renewal at the end of the two-vear ]ieriod, if 
the niorfgiige is not jiaid it tiui-t be renewed annually within' the Ir.sf fliirtv 
days every year thereafter from the date of filing the previous statement. ' 

fii Snsl-fdrhctrmi amendimiit of UtO!>. ("ha]i. !.">, fixes the penaltv for 
a fal-e statement in the renewal statement to ]w a fine not exceedinjr $TiO. 
The affidavits required for registration of the documents m.ay be admin- 
istered by the resristration iderk. Fee allowed is S.'i ecns. 

In nritish Cohimhia they are good for five years without renewal, but 
may then be renewed. 

A morteair'' given by an incor]>orated company to a bouilholder or trustee 
to secure debentures issued bv the comi-iany need not be renewed everv 
five years, as other Bill- of .cjale have to be, provid(>d a copy of the bv-law 
authorizing the issue of the delientures. verified by affidavit and seal and 
properlv signed, br> registered with the mortgagee. 

In Nova Srotin thev remain in force three years, but mnv be renewed 
within the last .T1 days before the exi)iration of the thref-year limit, .and 
so on from time to time. 

//) Nrn' Bninxwirk a renewal statement must be filed e.ach vear within 
the last .^n days before the year expires, -howinsr the amount yet due. If 
this is not done and the goods are taken under execution, the holder of the 
mortgage has thirty d.qys in which t*i file mich statement, and if not done 
he loses bis claim on the iroods. and they mav be «old under the execution. 
The renewal statement is similar in all the Provinces, and must contain 
the information -hown in the f illowinr; Peuewal Form of a chattel tnort- 
page. w'tiicii sjives: 


The .late «i nri-iiial chaltfl iiiortjrafrt', the parties to it. their resi.leiice, 
date of tiliiifr. 'JH'I that the mortfrase has not U'eu a^-sipied, aiul if it ha3 
been a5sif,iie.l. it imi:^! ^'ivr liic name of the ar^sifjuee, and if as^imicd more 
than onee it should fxi^'' f:"'!' assi^niiuent, and the name of tlie holder at the 
time of renewal, also tlie oripinal amount of the mort^'a.rc, the amounts 
paid, and date when paid, and thf iMiiount still due. 

The foUowinir form, simply by ehaiiging name of Proviuee. will an.swer 
for every Province: 

391 Form of Renewal Statement. 

Statement e.xhii-iiini: tli.- interest of Walt.r Wirters, of the Township 
of Stamford, Conntv of \V(dlan'l, veoman. in the pri.perty mentioned in 
a Chattel Mort^'aue' dated Uie 2nd dav of A.I^'nst, I'.tOi), made between 
James Smith, of tIh- Township of Stamford, Co.^t- of Wellan.l, merchant, 
of the one part, and Walter Wint<Ts, of the Tcwnshi]) of Stamford, afore- 
said, of the other part, an,l tiled in the otK.'e of the Clerk of the C.Minty 
Court of the County of Welland. on tlw 2n,l das of Au-ust, lOOf), ai>d of 
the amount due for princiiuil and interest thei.'on, and of all payments 
made on account thereof. 

The =aid William Winters is still the inort-rapw of the said property, 
and has not a^^iimed the said Mort-age. One payment has been made on 
account of the said ^lortjjage. 

July ;51st, lino. Cash received. $230. 

The amount still due principal .and interest on the said :Nrort-a<re is the 
sum of tliree hundred dollars, com])Uted .is follows: 

T, ■ • 1 st;.".oo 00 


Interest, 1 year ending August 2nd, I'.HO ■ ^^ '^^ 

$r,no 00 

By cash, July 31st, 1010 • ~"'^ " ^ 

r.aWedue ^.O^^ 00 

Counts or Wn.iAxn,! T, W.alter Winters of the To^^•nship of Stam- 
To wit: I ford, in the Count v of Welland, the mortcra^ee 

named in the Clu.ttel ;Nrnrtf:ai:e mentioned in the followincc statement, make 
oath and say: 

1. That the -within .statement is true. 

2. That the Chattel MortL'a!ie m"ntioned in the said statement has 
not been kept on foot for any fraudulent purpose. 

Sworn before me at the Tow.i of ] 

Welland. in the Countv of Welland. , Waltbk Winters. 

this 31st day of .Tilly, A.D. 1;*10. J 

-c T> TT,TTr-Ar= n rnninuxximirr for fal-ina affilavUx in iho n.C.J., etc. 



;iihi -ainc tVo cliarj^ecl as fur a disi-harge. 

392 Assignment of Chattel Mortgage. 

A tLulU 1 iinirij;;ij;c 1:^ iiuL a luni.iialili' iustruiucut, but it may be traus- 
ferrcni by unsiinniiciit. Tlie a>si,u:uiiifiit must Ik; tiled at tbo same office 

Vilrl'l' lllc lN.irli;;li;v i- lilr. 

393 Discharge of Chattel Mortgage. 
Winn a chattel mortgaj;o has been iiaid a discharge should be tiled also 

at the otHce where tlie mortiiaiie is tiled. The fee fur Ontario, .Manitoba, 
Alberta, Saskatchewan, and North-West Territories is 50c.; New Eruns- 
wirk. Nova Scotia and I'rinee Kdward Island, 2.5 cents. 

Ill iJrit'sh Colniid)ia tlie iiiorl!;ai:<' is discliartred by beinjr marked 
"satisfied." The fee is $1.IMI. .Newtonii.llaiid iVe is .i^l. (»("». Yukon Terri- 
tory fee is .$l'.'i(). 

394 Form of Discharge. 

See follow ill:; Slatulorv Form of 1 )isciiai;(;i-: : 

Pkovince of OxTAHIc). 

To the Clerk of the County Court of the County of Wclland, T, Walter 
Winters, of the Townslii]> of Stamford, County of Wclland, ycouiiin, do 
certify that .Tames Smith, merchant, of th" Township of Stamford, Co\inty 
of Welland, Province of Ontario, hath satisfied all money due on or to grow 
due on a certain Chattel Morli;a2;e made by James Smith, aforesaid, to 
Walter Winters, of the Townsliij) of Stamford, aforesaid, which mortgaire 
bears date the ^nd day of .\ni,'ust, A.D. 11HI!>, and was reiiistered in tlie 
office of the Clerk of the County Court of the County of Wclland, on tlio 
2nd day of Autrur-t. A.D. 100!>,'as No. 4287. 

That such Chattel Mortirajre has not been assigned, and that 1 am tho 
person entitled by law to rcci'ive the money, and that such Mortjxage is 
therefore discharged. 

Witness ni\ hand this .30th (lay of .Tuly. A.D. 1010. 
Witness • 

ClIAKl.F- SrMMI'.I.'S. 

Stamford, Stud(nit. 

W A I.T F. n W 1 N T K RS . 

Affidavit of WHtiess: 

OXTATJIO: 'i I, Charles Summers, of the TouTisliip of 

County ok>. , Stamford, County of Welland, student, make oath 

TO wit: J and say: 

1. I was personally [iresent and did sec the within Certifieate of 
Discharge of Chattel Mortgage duly signed, sealed and executed by Walter 
Winters, one of the parties thereto. 

2. That the said Certificate was esecufe<l at the Town of Welland. 
I{. That r know the .«aid p-rties. 

4. That I am a subscribing witness to the -aid Certificate. 

Sworn before nie at Welland, in the i 
County of Welland, this .Wth day of . .SrMMKiis. 
Jnlv, in the year of our Lord 1010. J 

T.. Tl. TTkii.ems. a roDiiiiisKinncr for lal-inq affi'Iarifs in 11. C.J. 



395 Costs of Foreclosure. 

Tin' OniariM Statiitis allow the following fees and expenses, and no 
more uuless agreiil \ipnri: ^ n r\r\ 

1. For uiakiiii;- si-izuri' whire amount of debt does not exceed tg&O.OO, 

■^. Where it cxc'cd.s !f>U.UU, $1.50. 

3. One man koepinc possession, per day, $1.00. 

4. If printi-.l iidvcrtisciiiciits are used other than nowspainT-S not to 

exceed $1..^0. 

5 For catalo^'iics. sale and cnmiinsMon and d( Iiv.t.v ot ^'(,o,|s. .. oonts 
on the dollar on the net jiroceeds of sale up to $100.nO. When ovr $100.00, 
then 2^ per cent, on the excess over $100.00. 

6. When debt i^ paid before sale, a eoininission of :>^ per cent., and the 
anionnt act llv .H.^^hur^ed in eartaffo not to exceed $2.00. 

The party Icvyini: tlio di.^trrHs must -ive a ropy of the ehariies to the 
person distrained njion. 

The expense in the oth.r provinces is siriulnr. See 'Kxprnso ot Di.-;- 


396 Cautions. 

Head all the covenants carefully. Tf a niortpace is taken as security 
for a debt previously conlrartcd it will not flivo i>rionhj_ over other creditors, 
if there is not sufficient other iin.nert.v to pay their claims m full. 

If inonev is aetuallv jniid over at the time of takin<; the iiiortira^'o^ it) 
will lu.ld against other crclitors, done on the eve of assignment, when 
it mijrht Ix.' set a:-i'le bv i\n aetiou for that purjiose. 

If the niongageJ gives coii.senl to the mortgagor to di-pose of any of 
the articles covered bv the mortgage, it virtmilly ,Vs;roys his lien, an,l other 
creditors mav come in and share pro rata. Kelieving relieves all as tar 
as priorUij is cimcerne.l. This, of course, does not apply to mort-agcs 
covering goods in a store, or other property of traile, in whieh ca.-.c the 
amounrof goods only is required to be maintained. 

A ehattel mort'gag'' covering the growini: crojis of a farm would not 
cover the crops of the next year \inless it so expressly provi(lt>d. 

If the mortgagor disposes of any of the goods covered by a mortgage, or 
removes theni out of the county without the con?ent of the mortgagee he is 
liable to a criminal action. It"^ is also a Ircnrh of covenant that gives the 
mortgagee the right of possot^sion. 


400 Mortgages of Real Estate. 

.\ niortiratre of real estate is virtually a dp<'ii or conveyanei' of the prop- 
erty by the debtor to the creditor to secure the payment of a certain sum of 
money or moncv's worth, with a "proviso" that it shall liecome void upon 
the iiayment of the debt an.l accumulated interest. Tt must therefore be 
remembered that all the mortgagor retains i.^ the possession and "equity of 



(a) Tiiil.T tlic Tornns Svstiin :i inortfrapo is not a conrpyanc^ of the 
laml, hut a resisterod oharfro ii])fin tlir land for the paymont of the money, 
^ff "Torrcns System of Lands Transfer." 

Mort^'iicres should Iv executed in duplicate under the Torrons System 

as well a-- tlir "11. The inorfcracT-e retains one copy. 

401 Securing Clear Title. 

Before payinc; over the money, either on mortjrnge or for purehase, the 
followinfr searches must be made if you would know what kind of a title 
you are obtaining. The routine is much the same in all the jirovinccs: 

1. The .\hsira<'t Ind<'X (and \yt\\ .should read the documents), fir deeds, 
niortjiafjes, assijrnments, ajmenieius, dnwers, trnsis. si.ttloments. leases, lis 
pendens, mechanics' liens, bydaws, plans, cautinns ( witbin three years). 

2. Tje fienoral Refrjster, fir wills, probate's, letters of administration, 
assignment's for benefit of creditors, power of attorney, etc. 

;i. The SlieriiFs olliee, for executions, attachments, sherifTs' deeds with- 
in six months, etc. 

•I. Th.' Tri;isurer"s ofiice, for taxes and tax sale^ within eishtcon 

.'>. See whether ii -iirvcv is necessary to sImw that tin- land mentioned 
in the in<trunient is the land you valued .iinl iniended to take the interest in. 
tl. .Vote whether iiiiy easement of way, water, sewer, liljht, etc., may be 
held over the land, affeetiuir it injuriously. 

In the Solicitor's Abstract from the Resist rar, eovcrincr Xos. 1 and _. 
look out for imdischarped mortprajres, dower, life estate and other repistered 
claims affectinc or overlappini: some part of the lands. Without such 
Solicitors .\bstraet properlv explained yon may Ix' cettin? a title from 
«ome one who has only a life or other small interest, thciufrh be may li;ive 
lived on the property for fifty years. 

The Sheritl'.s ('('rtilicate will be spfp if it covers all tlio ]iaitii~ who 
owned the lan<l during the previous ten years for Ontario an 1 .M.mitoba. 
For the other Provinces, sec Section ^Cy5. 

If the present fences atid improvements have been stamling loiiirerthau 
ten y.'ars for Ontario and Alanitoba (s(>e ''Ownership by Possession for 
other Provinces), a sun-ey may not be neeessarv. The survey should show 
whether there are any water-courses, walks, roads nr overhanEriniX eaves, or 
other easements Cprivileee or risht). affeetinc the land. 

AMiere the Land Titles' Act or Torrens System is in force, the Pertifi- 
catc of Title will contain all the facts imder 1, 2, .'5 and 0. 

.Mso the terms of tenancy must be made certain if a tenant oecnpies the 
premises; also see that no ^fechiinics' Liens attach within 30 days. 

Make .sure that your solicitor has ascertained all the above facts before 
yon jiay over the tnoui'v, becan-e these searcdies are not always made. 

402 Registration of Mortgages. 

Tn all the Provinces a mortgajre is bindiiii; <)n the prop(>rty as soon as 
it is exc^cuted. but the first mortgage registered 's the one that ha.s ]iriorify 
of claim against the projierty unless express notice is proved that a ))rior 
mortiraire exists. If the mortsrawir shoiild make .i Jeed of the property or 
another mortgage to some other person without notifying him of the pre- 
vious unregistered mortgage, such person wouH have a good title if his 



dwl or jnortpifre were n-pisttrcd before the first one executed wouM h.- 
presented to the registry otWce. 

All inortgapes and other instrnments to be registered must Iw venUe<l 
by iitTidavit iu proper form of ii suli-crihin;; witness pre^.iit at the time of 

aigning. , 

(a) Where lands ari' under the Torn us System iiiortpips must bo 

registered in order to be valid, and they eaiiiiot be re;;i.>tered witlioii* the 
production of the Certiticate of Title. A memorandum of the transaetmn 
is entered bv the proper officer at the Land Titles ottiee on the Certiticate 
of Title lield by tlie owner, and also on the duplicate certificate in the 
otlice. and this constitutes the registration. . -.. , •, i 

In Ontario tlie mortgagee wonld lioM the (Vrtifieate of Title until the 
mortgage is paid, but in .\lberta the certiticate is held by the T.and Titles 
office? The mortgagee may pr<K-nre Cprtifi<-ate of Charge showim: his re- 
lation as virtual owner of the property. 

403 Fees for Re^stration. 

The fres lor r, -Im rat ion uii.ler the Uegistrv. Act* of the difTerent 
Provinces are verv much the same. For Ontario the fees under the old 
svstem are $1.40 where the iiggregatc of words to lie copied does not exceed 
TOO. and If) cents for each additional huudre.l wonls ui) to 1.100. and 10 
cents for each additional liundnd words or fraction of a hundred over 1.400. 

In Ontario the statutes jjrovide that in order to lessen the cost of re- 
gistrati<ui tie mortgaire may have endorsed upon it "not to rc-gist( r in lull. 
in which case the reiristrar'does not copy the mort<rage in his books, but the 
niortiraire is numbered and tiled, and merely tiie date and name enteral in 
the bix.ks. The fee is $1.00. , ,. r 

T'n.lcr the T..rrcii< System tl'.e fees for rc-isterin;,' the dilterc!it in- 
Ftrnni^'iits run fnuii ■'i^l.lH) t.. $2.00 

404 Implied Covenants in a Mortgage. 

The unjiVird cnvcuaiits in a iiK.rtiraL"- are: 

1. To pay the mortgage m.>iiry and intmst (not the personal covenant.) 

2. A good title. 

;!. .\ rii;lit to convev. 

4. That on d.'fault 'the tn(u-tpi,!:ee shall liuv,. qui.t possession. 

,'.. Free from all eneuinbrance. 

<;. Tluit the mortgagor shall exwute surh funher a-uranee of the lands 
as inav be rcjuisitc. 

7. Tliat the mortgagor has done nothing to cncund)er tlie lands. 

There are no other covenants implied in a mortgage, but any others may 
be expressed that are agreed uin>n and are legal. 

r.oan companies and sometimes private individuals juit iu various extra 
covenants to k'tter secure themselves, and these should all l)e carefully 
noticed before signing the mortgage. 

For the usual covenants that a mortsraire contains spo ''I-orm of .Mort- 
gage." which 'ollows the Oi.tario Short forms ,,f Mortgage with Covenants. 

405 The Personal Covenant 

It must not be for>rotieu that nearlv every mortgage contains a Personal 
Covenant by t]ae debtor to pay the creditor the sum named in the mortgage 
Fimilar to this : 



"The «aid iiiort^a^Kr t-ovcnantti with tbu said tiiortga^ee that tlio 

inort^agiir will pav the inortfjajje money and interest." 

Therefore, if the .lehtor after fjivinjif the laort^'age should sell ttie prop- 
erty it is not euoiifih that the purehaser a-.'^uiiie the iiiorf;;tt;re, Uraiise the 
personal cuveuaiU still hinds the 4.rij;in:il dehtor. The niortpijje should 
eiiher be diseharped, or a relea^ie under seal obtained from the ereditor or 
niortgajiee. In Ontario, on mortgaftes piven siuee lh'J4 the personal coven- 
ant expires with the mortfratre (in ten rears after maturify or last payment). 

This jiersonal covenant does not hdd aixaiiist the person who may buy 
the jintjirTty suhjtrt to the mortjtaf;e, nor the ])ersoii who buys the equity of 

If the person buying property subject to an exi-stini: mortiraffc covenants 
with the mortiracnr to pay the niorfjrage, the mortpairor can enforce its pay- 
ment when it is due. The wnrlijinirv. however, cannot compel the purchaser 
to pav eiiher prineijjal nr interest. Canada Landeil and National Invest- 
ment'Co. v. Shaver (18!t.-.). 21 Ont.. App. "TT. 

The "personal covenant" is not implied in a mort<jafre, but it is n^nally 
inserted, unless omitted for eati<e. In fact it is contained in all the printed 
forms so that it must be struck out if it is intended that the mortpapor is 
not to Ixvome personally liable for the debt. 

The "implii'd covenant" to ])ay the mortffape money and interest 
ffiven in pre<>edin;r scctiim. the courts have ruled, is not what is called the 
"personal covenant" that the mortpasee can sue on to recover any deficiency 
that may remain after sellinc the morteajred property. 

If tlie Personal Covenant is omitted or struck out of the printed form 
used, and the niortpapor does not repav the loan and interest, the mortgagee 
lias recourse to the propertv onlv which has been convevcd to him bv wav of 
mortsa^e. wliicli lie may either take po-;«ession of and hold, or sell. If he 
elects to sell such property and it does not brine enouph to cover the mort- 
pacre debt ami interest, he cannot then sue on anv implied rnvenant for the 
deficicncv and seize other property not covered by the mortpape. 

406 Form of Mortgage. 

TIM''' '^n^CntUrC m^'^'" 'in 'lni>llrnff>) the first day of March, onp thousanrl nine 
hundrod iind ten. In r'tr'-nanee of the .\ct reapectlni; Short Forms of .Mortgages: 

riF.TWfKN- .tamos Rohert Mannlntr. of the Township of Anraster. In the county or 
Rrant. Provinio of Ontario, yeoman, of the flrsi part, hereinafter called the niort- 
gagor : 

Ida .lane Mannins. wife of the party of the flr'-t part, of the seeond part; 

And William ,Inhn Hrown. of the Tov.nship of Ancastcr aforesaid, gentleman, ot 
the third puft, hereinafter railed the mortgagee; 

WiTNFssKTii that in consideration of One Thousand (Jl.onO) Dollars ot lawful 
money of Canada now paid liy tlie said Mortsragee to the said Mortgagor (the receipt 
whereof is lu-rehy arkno'.vledced). the said .Mortcagor doth Crnnt and Mortgage unto 
the said Mortgagee, his heirs, executors, administrators and assigns forever: 

Ai.i. A>-n siNr,ti..\R that certain parcel or tract of land and premises situate, lying 
and being in fhe Townshii. of .Xncaster aforesaid, containing by aftual measurement 
One Hundred .Acres, more or less, being composed of Lot Numtier Twelve (TJ). on 
the Fourth (Hh) Conression of the Township of AnMster aforesaid; and Ida Jane 
Manning, of the second part, hereliy bars her dower in said lands. 

Pnn'.TKrn this mnrtrnrp tn be void on pnytnent of One Thousand Dollars of law 
ful money of Canada with interest thereon at five per rent, per annum, <as follows: 



Th.- 8B1.I prItKlpal sum of On- Tho.mand Dollars t, be due aixl imyat.l.- In four r-,.ial 

of llv.. p.T .■-■nl per aniiuin (,n th- unpiild piln.lpal, puy.iPle "'>'"a'l> *" ' '"^ 

due an.l payalde on th.^ flr-i day of Mar.h. A.l>. lull, and tax.s and p.rformance ol 
statute lalK)r, , 

The said MortKaitor covenai.ts with the said MortRauee that the Mortgagor will 
pay ,1 e mo^U^^a«e mnn..v and Interest and observe the said provUo. that the MortKa^or 
hM a Kood tme in f... sin. pi. to the said lands, and that be has tl«- right to convey 
the said lands to ihr said MortKaKt-; 

And that on default ih- Mortu-um'e shall have quiet possession of the said lands 
free from all cncumbranii's; 

And that llif said Mormawor wl.ll e.iecute such further assurances of the said 
lands as n.av be requisite; 

And that the said Mortgagor has done no act to encumber the said lands: 
And that the said MorttaKor will Insure the HulldlnRS on the said lands to fhf 
amount of not less than Six Hundred OoUars mrreiny; 

And the Kald MortRBKor dof. Uelease to the said MorlRag. all his claims uikjii 
the said lands subject to the said proviso. 

Provided that the said Mortwuee on default of payment for four months may 
on gUlnK three' notice in writing, enter on and lease or sell the said lands 
I'rovtded that the MortgaKee may distrain for arrears of Interest. 
Provided that in default of the payment of the Interest hereby secured the 
principal hereby secured shall become payable. 

l-rovldcd thai until default of payment the Mortgagor shall h.'ive quiet possession 

of the said lands. . ^ 

In Witness \Vii.:ii.:iu the said parties hereto have hereunto set their hands aud 


Signed, sealed and delivered i 

m the presence of • j,,^ j^^.^ 

U. II. Olmsteo. I 

James Robert Manmnu. 

County o. Biiant l 1. Hussel Hamilton Olmsted, of the Milage of Ancaster, In 

,,, vv„- the fouMiv of liiant. ranufaiturer. make oath anil say: 

1 Thul vas personallv present and il, see the within Instrument and Dupli- 
cate thereof duly slRUcd. seal'ed and excuted by Ja" les Robert MannhiK and Ida Jane 
Manning, two of the parties thereto. 

2. That the said Instrument and Diipll.ute were executed at the Milage ol 
Ancasier. of the said Township of Ancaster. 

3. That 1 know the said parties 

4. That 1 am a siihscribing witness to the said Instrument and Duplicate. 

Sworn before me at the Village of i 

AncB'^ter. In the County of liiant. t o, «^rvn 

this first day of March. In the yea. i H. H. Oi-Msreo. 

of our Lord I'JIO. / 

.s,- li. Hiniiuin. a c..mmi,'/?i(T fur takimj af/ulacits ir: 11. C. J-, etc. 

407 Mortgage Under Torrens System. 

1, A. i:., Ixiui; ni,Msterta a.s owner of an estate (here give nature of 
int.Tost), subject, however, to .sueh enoiiiiibraiu'es, lions and interest as are 
notitled by memorandum umlerwrltteii (or emlursed liereon). of that piece 

of land (describe it), part of Section , Township of 

ran-re (or as, the case mav be), containinj; acres, be the same 

mo^e or less (here state rights of way, easements, if any, intended to be 
convevcd aloiii: with the laud, and if the land dealt with contam.s all included 
in the original trraiits refer threeto for description of parcels and diagrams 
otherwise "set forth in tlie usual way of boundari.-. ;iiid luvnnii.any de.'^cnp- 




tion with a ilia^rani), iu ronsidorution uf the 8um of doUurA lent tu 

mo by ('. 1). (insert driicriptioii), the nt-cipt of whii-li sum I do Lertby 
»cku(>\vk'df(«', covenant with the sRid C. I).: 

First, that 1 will pay to him, the said C !>., the above sura of 

dollars on ilu- day of 

Secondly, that I will jmy iIlt(T(■^'t on the said sum at the rate of .... on 

the dollar iu the year, by eipial i)aynitnt.'( on the day of and 

on the day of in every year. 

Thirdly (hero set forth spei-ial covenants, if any). 

And for the Ix'tter seeuriuf; of tlii' said (". 1)., the repaymen' in manner 
aforesaid of the -irincipal sum ami interest, I hereby mortgage to the said 
C. 1). my estate ;'nil interest iu the hind above described. 

In witness whereof 1 have hereunto signed my naiue this day of 


Signed by the above named (Signature of ifortgagor.) 

A. H., in the presence of (Xo Seal necessary.) 

(Insert memoraiidutii of mortgages and encumbrances.) 

When a mortgage is paid under this system a receipt is indorsed on the 
duplicate mortgage I 'Id by the mortgagi'e, whi(di is then brought to tho 
Land Titles Ottice, an<i the fact of the payment of the mortgage is noted on 
the Certificate of Title, 

A mortgage imder this system does not convey the property, bui, the 
land is simjily pledged as security, and after default tlie mortgagee may 
either sell or foreclose as tht igh it had Ik'cu transferred to him by way of 

For mortgages two copies are executed. 

408 Sinldng Fund Mortgages. 

Sinking FuTid .\Iortg:iL'es iire tlinsc in which the principal and interest 
together are ilivided into a number of equal yearly, or half-yearly or qu.irt- 
erly or monthly j)ayments. This form is not used much in Ciinada sinco 
legislation made it compulsory to state in the Repayment f'laiise tho four 
following particulars: (1) The amount of the loan. (2) Tho rate of 
interest. (3) The part of each payment that is for interest. (4) And the 
part of each payment, that is for principal. Section 6, Chap. 120 R.S.C. 

With this protection the lx)rrowcr may know whether he is paying five, 
six or twent\ per cent interest, as the case may lie. The liuilding Sivieties 
are about the (mly institutions still using this old "sinking fund" form of 

409 Interest on Mortgages. 

Interest on Mortgages is implied, unless expressly stipulated to the 
contrary, ilortgages on real estate may draw any interest that the mort- 
gagor covenants to i)ay, but in Canada if the rate is not named it will l)e 
five per cent. ; ^ewfoimdland six. 

If the interest i^ not paid when due the mortgagee usually has power 
either to take possession, or foreclose and sell, or he may sue for tlie arrears 
of interest. 

Or if there are goods and chattels of the mortgagor on the premises he 
mav distrain for the arrears of interest. The mnrttracoo cannot seize or sell 



Uii: gooiln or cr.ii.^ ..i a t< uiim on iln [iiwjm ii_\ h.r tiiluT uviTiiia- interest 
or priuci[>ul. Niithtr fun In- st-izu or stil the nools and cLtttU-U of the inort- 
pii^^or thai iirr exempt by stutute from seizure uiuier ud exeeution or land- 
lard'.H warrant. 

The iiiortgageeV rijjht to distrain for iuterent ii« limited to one year'* 
arrears of interest as af^aiusi oxeeution ereditors or au assifjiieo for the (gen- 
eral Ixuetit of endiiors. (JoihIs distrained for interest shall not be sold 
exeept after siirii piililie ni>tiec as is required uiiiler a lancllonl's warrant. 

Interest in arrears caniiui be n'l'overed after six rears, (^uelxv five 
years. I!ut. alth<>Uf;li the mortfraftee eoidd not in this east- reeover more than 
Bix (or five) years' arrears of interest by suit or ilistress, still if tlie mort- 
gagor ever wanted to redeem the pri)p«.'rty he would in that case iio compelled 
to jiay the arrears of interest. 

in Otitario he may sui' for tlie arrears of interest in the Division Court 
if tlie amount is wiihiii its jurisdietion, but he cannot employ the "juilg- 
nient summons"' process to enforce payment. The ditferent instalments of 
interest or principal may b<' sued for separately so as to bring them within 
the jurisdiction of the Division Court. 

Kor rate of interest recov<Table, see "Legal Kate of Interest." 

410 Faymcnt of Mortgages. 

Wlirn a mori^'agc iuils due it may b.' [Kil,! witlmui any notice to tho 

If it is ovvnlur and the mortirairee (Irnmnds payment for the whole 
amiiunt or even part it may l>e paid in full if the mortgagor wishes to do so. 
But if nothing is paid at maturity or only ])art is paid, together with the 
interest due, then in that case, unless the modijage provides otherwise, the 
innrtirairor usually cannot sub-e(iuently. except by consent, of the mortgagee, 
[)av the liiiliiiice without giving six months' notiee, or paying' six uionllis' 
ailviiiKi' interest in lieu of notice. This is a custom that has become law 
allli"iii:li it is not in the Statutes. 

If the mortgagee demands payimiil, or takes any steps to enforee 
mortgage he will not be entitled to six months' notice or interest in lin 

Manitoba has by Stattito provid".! iliai Jiri'lu-r notiep nor :ni interest 
bonus is required to pay such a mortgagi' debt pas' (iiie. 

In Ontario.— Hy amemlment of l'.»<>:i it is enacted that where d. fault 
ha- 1" en made in the |>ayment of aTiy luin.ipal money sectircd by mortgage 
on real estate in this Trovince after the pas.snge of this Act, .Time 11th, the 
mortgagor, uotnithstandiiig a!iy agreenu'iit to the contrary, may redeem any 
time up(m payment of ])rinci])al in arrears and time tnoutlis' advance in- 
terest or lie may give the mortgagee three montlis' notice of his intention 
to make such payment at the expiration of the time namp<l, and if he make 
such payment on such date, togetlu r witli tho interest duo at such date, he 
need \y.\y no further interest. 

If he fails to make payment, however, at the time mentioned in the 
notice, he cannot, thereafter, nuike payment without ]iayiug both principal 
and interest due and three months' interest in advance. 

This amendment does not affect the provisions of section -'."» of tho Loan 
Corporations' Act. 





In all the Provinces and Xuvvfouudliiiid, if a iiiortfra^e is payable by 
iu.-^taliiR'iiis and one or more instalments arc in arrears the mort^'af^ee may 
sue for the overdue instalnii'nfs, or he may sue for the y)osses<i(.ii of the 
property, htit he eaimot be thereby (•(niiiitlled to aece|it the whole sum of the 
uiortfjraire debt, neitiier to foreclose unless lie desires to do so. 

Wiien makins; payments of either j>rinei(>al or interest it is not essential 
that ihey be endorsed in the niortirajjje for the reeeiiit operates as a legal 
diseharire of the niortjrafre to the extent of the jiayment, no matter if the 
niortjraire shoidd be transferred or seized tmdi'r exeeiition. A niortt;ase 
differs in this respeet from nep>tiable paper. lint be sure to proscrvc the 

Payment must 1k> made to the mortsra<ree or his duly authorized atreut, 
or assignee, or exeeutor. Great caution need to be exercised in this matter, 
for a jHTson may have authority to receive interest, or rent, and yet not the 
principal. Even a solicitor acting for the mortiragee may not have authority 
to receive the mortgage money, so the money Tuust not l)c paid to any other 
tlian the mortgagee imlcss the party assuming the right to receive produces 
his atithority. 

411 Notice of Intention to Pay Off Mortgage. 

1 lureby give you notice that a( the expiration of mouths from 

date hereof 1 shall j)ay to you or your executor-, administrators or assigns, 
the jirincipal money and interest due by me to you on the security of a 

certain indenture datid the dav of . V^ . ., made between 

fme), of the one part, and (you), of the other part. 

Dated at , tlii.< day of . ..'. , 10. . 

To (name of Mortgagee). 

413 Prepayment of Mortgages. 

If a mortfrage has not yet become due, generally speaking the mortgagee 
cannot be eomjielled to accept payment, unless there is a clause in the mort- 
gage binding the mortgagee to accept payment sooner. There are, however, 
some exception*, as the following: 

1. P.y a Dominion statute, cliap. 27. S' c. 7, TJ.S.C, p.)vision is made, 
which ajiplies to all the prrninces. for the payment of mortgage^^ after they 
have run five .years, no matter for what length of time they were drawn. .\s 
the clause is very concise it is here quoted in full : 

"AVliencver any priticipal money or interest 'secured by mortgage of reid 
i-r-tate is not in the terms of the mortgage payable till a time more than five 
years after the date of the mortgage, then any person li.ible to pay or entitled 
to redeem the mortgage, may, after the expiration of five years, tender to the 
I>erson entitled to receive the nionev the amount due for principal and in- 
terest, together with three months' ftirther inten st in lieu of notice: no 
further interest ^hall be chargeable, or payable, or recoverable at any time 
thereafter on princi[)al money or interest due under the mortgage." The 
mortgagee, of course, cannot be compelled to receive the money until it is 
due. but if the tender of (ho money is made as aH ve no further interest can 
be collected. 

2. Tf. for default in pavuicnt. for cither principal or interest or for anv 
otiier supposed breach of covenant, the mortgagee enters action to recovra- 



jiav-tiiciir. or .Irinaii'ls ,oayinont. iln-ii tiio iiioriirairo may hv paid in fuli witli- 
o;ii t'urlbrr hmiicc iiinl without mlvaiirr intcivst. 

415 Mortgagee's Privileges at Maturity. 

If the iiiorti,rair(' is not, paiil ar. iiiaturity tho mortjrairoo has several 
rpiiicdii's. anv one of whidi he may pursue: 

((() lie iiiav all'W till- mortsrajre to run on and draw interest, or 

(/') IK' iiuiv lii-iim action to obtain l)a^^^u■^t for principal ami interest 
<lu( , or 

((■) He may briiii: an action of ejectincnt and obtain imsscssion of the 
lan.l by order of tlie court and then collet the rent^ and protits until tho 
full mortjra.ffe debt and interest are paid, or 

(d) He mav brim; ?uit to have the mortiiaf^e foreclo.scd, in which event 
all equities of redemption are ' irrrd and he In-comes the absolute owner, or 

(e) If the inortirajre eontains a "power of sale" he may take tlie letral 
stei).s to sell, but if the morts;agfi' has no "power of sale" he may brint; action 
to have the lands sold under the direction of the court, or 

(/■) He mav briiiir an action on the covenant and reach the other prop- 
erty of the iuort;.:;i!;or by way of execution. 

417 Transfer of Mortgages. 

Mortiiiiuvs arc not nc^'i>tiablc by endorsement, but may be transferred 
bv assiiniment. The assiimment is also an instrument under seal, ami must 
be recordeil at the same place the niortirafre is registered. 

If a mortgaire is assijmed the a-s-sipiee takes it subject to all the e(puties, 
rights, set-otfs^ etc., that existed at tlie time of purchase. Therefore, if a 
])avment were made on it before the assignment the assignee could not force 
the mortirngor, his heirs, executors, .ir administrators to pay it again. He 
could oidy look to the assijnior. And if a payment were made to the niort- 
cairee after the date of the a.ssignuient the ])a\nnent would Ix' allowed if the 
mortgagor ha<l no notice of the transfer. The registry of the assitniment 
is not a notice to the mortgagor, but only to those claiming an int(>re~t suljsc- 
<[iu nt to such registry. 

Hence, in transferring a mortgage it is advisabli- to have the mortgagor 
connected with the assi^'ument in some way so .a.s to acknowledge the exist- 
ence of the mortgage debt. If the mortgagor is not a party to the ass-ignment 
he should be given due notice of the transfer. 

Again, if the mortgagor d<K's not concur in the assignment the mort- 
gairee remains liable io account for rents, and profits, and for loss t« the 
"st~ate tlirough the transferw's wilful neglect, if he shonhl subsequently 
enter into ]>ossession of the property. (Armour, l!t01 edition, page 209.) 

The assignee cannot distrain for arrears of rent which accrued l>efore 

tlie assignment. 

The assiirnment of mortgace does not pass arrears of rent aeemed be- 
fore such assigmnent nnli'ss expressly mentioned, an<l even then the assignee 
could not distrain for such arrears. 

..\ Power of Sale is a personal right, and cannot be exercised by tho 
assignee unless the mortgage exjiresslv reserves such right. 



418 Form of Assignment of Mortgage. 

ZILnS SnC'CntUrC "'-lii' '■" UupliwUL) Uie nrst aay of SeptcmliiT. in the year oi 
our (in.> ihoiisaml nine hundred and ten: 

13et\vi:k.n William John Urown, ol thf Township of Anoaster. In the County of 
Branl Province < Ontario, studtnt, ot ilie first part, liercinafler <alied thi' " Assign- 
or " aiid .lames Wilson, of the City of Hamilton, in the County of Wentworth, Prov- 
ince of Ontario merchant, hercinaftor (ailed the "Assignee." of the second part; 

Wnmh\s bv a mortnagf dat.d on the first day of March, one thousand nine 
hundred and three, James Robert Manning, of the lownship of Aiicaster, County oi 
Brant, Province of Ontario, farmer, and wife did grant and mortgage the land and 
l)rp"iises therein and hereinafter descriljed to William John Brown aforesaid, his 
lielr.s, executors, administrators and assigns for securing ;lie payment of One Thou- 
sand noUars of lawful money of Canada, and there is now owing upon the said 
Mortgage the sunt of One Thousand and Twi nly-hve Dollars, 

Now Tilt- iMiK.NTi UK wiiMs^KTii. that iu consideration of One Thousand and 
Fifteen Dollars of lawful money of Canada, now paid by the said Assignee to the 
saiil Assignor (the receipt whereof is hereby adinowledged). Tut; said As?;ignor 
Doth llKKK.iiY AssioN at.d set over unto the said Assignee, his executors, administra- 
tors and assizns. All that the said before In part recited, and also the said 
Bum of One Thous.ind and Tweiity-Hve Dollars now owing a-s aforesaid, together with 
all moneys that may hereafter become due or owing in respect of said Mortgage and 
the full benelil of all powers and of all covenants and provisos cimtained in said 
Mortgage. And also full power and authority to use the name '^r names of the said 
Assignor, his heirs, executors, administrators, or assigns, for ei .orclng the perform- 
ance ot the covenants and other matters and things contai.'i"- n the said Mortgage. 
Axi) the said .Assignor Dorii iukkhy Guam ami Covknant unto the said Assignee, 
his he'.rs and assigns, Ali ami riiN(,iLAB that certain ijarcel or tract of land and 
premises situate, lying and being in the Township of Ancaster, in the County ol 
Brant, Province of Ontario, containing by admeasurement One Hundred Acres, be the 
Bame more or less, being composed of Lot Number Twelve (12), In the Fourth (4th) 
Concession of the Township of Ancaster aforesaid. To h.wk anb to iiolo the sail 
.Mortgage and all moneys arising in respect of the same and to accrue thereon, and 
also the said land and premises thereby granted and mortgaged to tiie use of th 
said Assignee, his heirs, executors, administrators and assigns, absolutely forever; 
but subject to the terms contained in said Mortgage. 

Am) Tut: SAID AssicMiu foT his heirs, executors, administrators and assigns doth 
hereby covenant with the said Assignee, his heirs, executors, administrators am 
assigns. That the said Mortgage hereby assigned Is a good and valid security, and 
that the said sum of One Thousand and Twenty-Hve Dollars is now owing and unpaid 
AND that he has not done or permitted any act, matter or tnlng whereby the sale 
Mortgage has been released or discharged either partly or In entirety: Axn that h( 
viil uimn request do, perform and execute every act necessary to enforce the full per- 
formance of the covenants anil other matters contained therein. 

I.N WiTNKSs wiiKKEOf the sald parties hereto have hereunto set their hands and 

Slgni-l, i^eale I and Delivered ■. 
in the presence of I 


Wli.i.iAM John Biiow.N. 
James Wilson. 

HECFivEn on the day of the date of this Indenture from the said Assignee the 
«um of One Thousand and Fifteen Dollars. 

Witness \\ ■ •! Hk"wn. 

, , I. Dexter Edgar Potter, of the City of Hamilton, 

CorNTY OK ^\ENrwoHTii, ) (<„„„(}• Wentworth, Province of Ontario, student, make 
To Wit: j oath and say: 

1. That I w-as personally present and did see the within Instrument and Dupll 
cate thereof duly signed, sealed and executed by James William Brown, one of the 
parties thereto. 

2. That the said Instrument and Duplicate were executed at the City of Hamilton. 

3. That I know the fald party. 

4. That I am a subscribing witness to the said Instrument and Duplicate. 

SwoB.N before me at Hamilton, in the ^ 
County of Wentworth. this llrst day ot l I), E. Potteb. 

September, In the. year of our Lord 1910, j 

J. W. Lamokkalx, a commissioner for taking affldavits in H. C. J., etc. 

DISfllAItCF Ml- MOinCA' 


419 Transfer by Indorsement on Back of Mortgage. 

urn ^n&CntUrC n.>,l,. n„ .IwpU.a.e, .he firs, „av of .,,„...„,„.. In .he year ol 
our l.or'l one thnunaiul nine hundred and six: , „, ,h« 

HKTwn V William John H.own. of the town of Dundas. .vUhrn iiamed, of the 
first ,!art and Ja.nes Wilson, of the City of Hannlton. of the second part. 

to h J';^r;";^J'^-^^; s-h^S-r w^^ej^-:'^:? -n:;=d' s^s 
« ^:s^ u^^.^"^ ^rt^^r „^n;^rrh^;^^:er:;,& = 
-^;:^^h:'^:tr:^ri:a^ :r^:^:^s- r,rr ^;:=^rH^ 

In the within Morlgage. And al.o ,o all sun, and s.nns of moriey secured and payable 
therebv and now renuiinlng unpaid. 

To n.VK AN,. TO noL,. the same and to aak. demand, sue and recover the same 
as fuS to";, tn.en,; and purposes as he. the party of .he firs, part, now holds, ano 
Is entitled to the same. .^ , v, j„ 

!N wir>-Kss vvHK.BEOF the parties to these pirsen.s have hereto Bet their hands 
and seals, the day and year first above written. 

"^""•inTprrnce^^r-"" 1 W.u,.... B«ow.. # 

JAME.S Black. ) 
420 Transfer of Mortgage Under Torrens System. 

I C. 1)., th,' uinrt-ay;.',. , ,.n.Mii„l.i-a!,c,- ..r Ira.-f. :l-^ the ca-o ni:u- be), m 

consideration' (.f '. dollars, this day paid to mo by h. F., of ...... 

the receipt of ^vbieh sum 1 do hereby acknowledge, hereby transfer to him 
the morfa-e (eneumbrauco or, as the case may be, describui- the 
iiistr.irnont' fully), f.p'ther with all my ridits, powers, titles, and interest 

therein. , ., , a • j„^ 

In witnft^s whereof I have heromito subscrib,'.! :ny name this day 

of ,10.. 

C-- J I, .1 .„; 1 f ' n ~ ('. D. Transferrer. 

Sisrned bv the saul > . 1'., , , ,, ,, rr e 

• .1 ' t Accented t i ., Transferee. 

m the pri'senco of - ivcccpicu, j:-. j. .,^ 

' J (No Seal necessary.) 

Both m.>rtjr.i-e.s and leases undrr thi^ svst..,,, may be transferred by 
endorsement written npon the copy of the instrnuu nt held by the proprietor 
and then i-eiri-.ered. 
121 Discharge of Mortgage. 

Wh.n a mor'-'ace has lx>en paid the mortcafree is required to pive the 
,„ortira!xor a discharire, ^^.dch is a statn...ry form of receipt. ^\ hen this has 
been' tilled out and sifmed in the iiresencc of witness duly sworn, it is reg- 
istered bv the niorts-ajror. • ,i „ .iio. 

Where there is more than one mortgage ^ each one must si.ini the dis^ 

^If the mort"-airc has \yocn assigned, the assignment .should be as accur- 
ately do^ribed in the discharge as the mortgage itself. The date, registra- 
tion etc.. should be taken from the -Resristrar'. certificate on the assiirnment. 

A discharge may be given at any time at or aft, r payment, either by 
the mortgagee or his assigns or executors. 

A dis.harge operates as a re-conveyance ,,f the lands to the mortgagor 
or his iesral r,'|,reseii!atives. and is as good as a re-eonvejance and c^'t's Ws. 

When a mortiraire has been paid in full th(> mortgagee is (Compelled by 




law to liaiiil buck the mortgufrt', ainl iciuru all titlo deeds and other papers 
he may liold in connection with tlie property that beloni; to the niortpiiror. 
Tile iiiortira^^^e i.- also bound to jrive a disciiari^e when jiayiucut in fiiil is 
luadr. The iiKirtpipi,- should iinuiediately ref;ister the di.-.ciuir^e. 

Ihe nmrigagor may instead iiave a re-conveyance of tiie property pre- 
pared and have the mortgagee sign it if he wishes it, but it is sntKeient, 
however, to simply have a discliarge executed and registered. 

Or he may require the mortgrigeo to assign the mortirage debt and con- 
vey the inortiraged property to any third person the mortgagor directs. 

422 Form of Discharge. 

For a Form of Discharge of Mortgage, see "Discharge of Chattcniort- 
gagc, which is tlie same in everv nartieular, simitlv bv omittine: the word 
chattel wherever it occurs and changing the name of C)nta-io for oiher 
Provinces required. 

We give here, however, the foriii nf di-rhiir'j-e authorized by statute for 
Kcw I-iruiiswiek, wliirh is almost verbali.n iliai of Ontario, as f'dlows: 

To the Registrar of Deeds of the f'onnty of King's, 1. .F-liii 1 )oe. of the 
Parish of Ilavelock, in the County of King's and Province of New Bruns- 
wick, farmer, do hereby certify that .. Koe. of the Parish, County and 
Province aforesaid, fanner, and ilary ps wife, have satisfied all money 
due on or to grow due on a certain uiorigage made by the said .Tames Koo 
and ^lary Roe, his wife, to me, the said John Doe, which nmrtirage l)e.ars 
date the sixth day of September. A.D. 1!>0."., and was registered in the 
Registry Office for the County of King's, aforesaid, on t!ie tentli dav of Sep- 
tember, .\.D. 1005. in Libro Xo. rt, as numl>er .")4 on folio ^ : and that I am 
entitled by law to receive '.he money, and that such mortgage is therefore 

In witness whereof T, the said Tohn Dix\ Lave hereunto set my hand 
and seal this fourteenth day of ilarch, A.D. 1!)10. 

Witness "| 

Pkter .To.nes. / ^ToiiN DOK. ^^ 

The Discharge must be accompanied bv an affidavit of the Tnortgagee. 
See f<illowing form for Xew firunswick : 

T^ew P)runswiek, \ On the 14th day of .March. A.D. I'.HO, before me, 

King's County, - Peter King, one of His ^Majesty's Justices of the 
To wit: J Peace in and for the said County of iving's, per- 

sonally came and appeared the within-named John Dw and acknowledged 
that he did silti, seal and execute the within release or di.scharire of mort- 
gage for the i)urposes therein contained. Pethr Kino, 

J. P. it) and for King's County. 

(a) Fnder the Torrens System when a mortgage is paid a receipt is 
endorsed on the duplicate mortcage held by the mortgagee, which is then 
brought to the Land Titles Office, and the fact of the navment of the nioi.- 

frflffo IS nnlocl fir\ flir. Portifi/^'it** i^f Titlr 


,,.■„ f.: t — *i,:. 




423 Power of Sale. 

c'.utains 11 cliiurc .-^ 

Miuilar to till' f.illMwiiig: 

••I'roviduil tLat the mortgiigoi' on ik'fuult of payiueiit for 
four iiionth-i inav, on three months' notice, eiiter on and lease 
or sell the .■^aiil lands." etc. 

The statntory time mentioned in thi-^ paragraph may he chaniied bv the 
lAorhjmir ii'jrrrnicnt, and whalfver luiuiber uf iimnths i- stated in tlic mort- 
gage will hold. 

If any instalment of principal or interest is not i)aid when due and 
the niertfratree pivos the reqnired notice of his intention to sell the niortgaiior 
may pav the debt within tlie time mentioned in tho notice ami prevent a 
sale, or lea.'^ing. 

In case the mortfragee demanijs payment of the whole mortgaije debt, 
becaus(> a payment of either principal or interest is in arrears, the mortsagor 
may either pay otT the niortiraije according to the notice, or he may pay tho 
arrears of or interest, as tho case m.ay be. with interest on tho 
arrears since due, tojrether with the cost of notice, and the niorfgaire must 
stand as before. Bnt the payment mnst be made prom) tly before action 
fiirtlier than tlie notice is taken. 

424 Form of Notice to Sell. 

1 herebv rupiire you on or before the day 19. . . (a day 

not le^is than two c.iiendar months from the sendee of the notice, and not le^ 
than six months after the ilefault, unless the mortgage provides otherwise), 
to pav off tlie prinripal money and interest siH;iired by a certain indenture 
dated' the lay of /. , 10. .. and expressed to bo made be- 
tween (here state the parties and describe the mortgaged property), which 

said mortgage was registered on the day of , li'. ■ (and 

if the mortgage has been assigned, a. Id "and has since become tho ])roperty 
of the nndersigned"). And I hereby give you notice that the amount due 
on the said mortgage for princijial. interes*^ and costs, respectively, is ais 
follows (state the separate amotmts) : 

And unless the said princijial money, interest and costs are paid on or 

before the said <lay of ' 1 shall sell the property comiirised 

in the said indenture, under the authority of the Act entitled, "An Act 
respecting Mortgages on Real Estate." 

Dated the day of 10. . 


This notice may })o registered in the Registry Office of the coimtv or 
di.«triot in which the lands are situate, and serve as pr:wf of compliance with 
the Act, The two months' notice may run concurrently with the time of 
default as it may be given any time after default. 

When such demand for payment has been made and notice of sale given 
no other proceedings can be taken until the time expires, unless an order 
from the Cotirt is obtained. 

The mortgagor may pay the debt Witnin mo rirr.r mrr.iioncd m tuu 
notice and prevent a sale. 

I 20 


Tn case of sale the money derivoi! from the sale jjoes first to cover costs 
of sale, then tlio iiitcnst mid next tlif [iriiicipal, an(l rciiKiimlor (if any)- 
poos to the mortiraj^or. 

The liinil may Ix* cold <'itht'r by public or private sale, and either for 
cash or credit, and the mortirairee or assigns may buy in and resell the said 
lands, or any part thereof, either by private salt' ur iniMir auction, without 
beinp responsible for any loss or doficienfy for, or mi account of such estate. 

Wlicre the uiorij'a^ee bc^comes tlie purchaser \v is rc'iuircd to crive tho 
jnortffairor a release of the uinrtpafre debt and cantioi sue on the ''personal 
cnc iiant"' for any balance that mijiht remain. 

A mortfjape might ])rovide for a sale "without notice," but where no time 
is fixed it must lx> two months. Tt is ((uestionable if th(> courts would ni)hol(l 
a sale "without notice," as it is contrary to equity, and would destroy the 
fMpiity of r(>d('nipti<in. Tt should not be in a mortjrage, but some companies 
have it inserted. 

If a sale is maile under the power of sale in the mortgajre after a proper 
tender of payment has Itoon made it will be set aside if the purchaser had 
notice of the tender. Jenkins v. Jones (ISfiO), 2 GeflF. !Mt. 

426 Sale by Second Mortgagee. 

If the .-(■<<)nil iiiiiiii;ajrii- sells the property umler the ''power of sale" 
in his mortcrage without redeominji the first mortcape, such sale does not 
affect the rights of the first mortgagee. The purchaser buys subject ti the 
first mortgage, and merely takes the place of the mortgagor, except as to 
the "rcrs.iii;il CiiMiiaiit." wliich will -;ill bind tlic mortgagor. 

427 Mortgagee Taking Possession. 

.\ iiicii'tg;igc'> inav t.'ikr |«.~~(-;-:iiin of the j)rn]i(Tty at any liiiic after the 
mortgage falls due, or if interest is past <hu-, and may collect the rents and 
apply them on the mortgage. 

The mortgagor cannot cnmpel him tn foreclose nor sell, but lie can cinnpel 
him to give nn account of the rents and his dealings with the jtrojierty. But 
if he is ready to jiay the ])rincij>al and interest he may liring an action to 
redeem slvouM the mortgagee be unwilling to receive tlie money. 

Also if he makes a ))ro])er tender of the mortgage money, interest due 
ati'l cr)Sts, such tender stops the running of interest, Imt the money must 
bo kept readv to ]>ay over on demand to the mortgagee. Kiunaird v. 
Trollope ns'sol, 4l> Ch. D. 610. 

A tender by letter withotit actually enclosing the money is not sufficient, 
as -that is only an offer of iendcr. 

If the mortcagor should abandon yjossession of the property it gives 
the mortg.igee the right to t.ike jjossession, but he must keep an account of 
all rents and income derived froni it. and account to the mortgagor or his 
assigns for the same or to subsequent mortjiagees. 

A mortgagee who simply take* possession of the property without fore- 
closure, or a sale, is not the absolute owner of the property, in realiry only 
a "trustee," as the mortjrajror in that event still retains his equity of 
redemption, and may bold the mortgagee liable for all damages that may 
be done ro the property. The mortzagor may. any Iniu- witiiiti twenty 
years, redeem the property by procurincr an order from the court, that is, 
enter .an action to recover possession of the propi>rty, and in that case the 



mortgagee wo\il<l l.c .•..mpolled to acvouiii for all his .Icalings in connection 
with the proijcrtv, ami make w;o,>.l any waste, sudi lus ncclles-sly euUiug 
do\ni the stau.Hn'a; timlx-r. .lestroying or renioviiig from the property any 
of tiie huihlings, or for buihlings that may have l)een l)nru<'<l ilown (it 
in.snn'.n, an.! ilic iiiHirancc money not Ucn used to replace the hiiildiugs, 

ft*'. . . 

Where a mortiriigee takes ii(.>s.s>ioii and remains iii actual possesion 
of the premises, using them in place of a tenant, lie is chargeable for tho 
same rent that a tenant wouhl reasonably be expected to pay for them. 
This is called " oceui.atiou rent/' The Statute ..f Limitations does not 
applv in a case of "occupation rent," an.l the mortgagee would get no title 
aimplv bv jmssession. but he is rather in tlu- i...sitiou of a " trustee. Such 
r.-nt wou'ld be applied by the courts first to the ].ayment of interest, and the 
remainder to the mortgage principal. 

A mortcatieo taking jKissession und.T an agn/ement with the mortgagor 
at a certain nntal does not bind subs.Mpicnt mortgagees who <lid not absent. 
They can claim a fair rental to k' charged, so as the faster to pay off the 

first mortgage. . , , c 

To become the abs.dute .,wner o{ the property without the 'xpeiise ot 
foreclosure or a .-ale, the mortgagee must obtain from the mortgagor^ a 
relase of his equity of redemi>tion, either by purchase or otherwise, or ..I 
it rc-t until it is liarrrd by statute. 

429 Foreclosure of Mortgage. ^ 

Th.. ..l,j,rt of t'onrloMu-e is to take away the mortgagors equity ot 
redemptiotu and abo to bar claims of subsequent mortgagees wnthout a sale 
of property. Foreclosure of uiortgage is me.vlv tiling a bill ot foreclosure 
against the mortgagor, calling ui.ou hii.i to n.le.'iu his estate tortliwitli, 
with luivmcnt of principal, interest and costs, and if he tail to do «. within 
tb. liuii- speciried by the court (ii.ually si.x months), he is torever barrel 
of liis (Miuitv of redemption. 

bnless'tbe mortgau-e specifically provides otherwise, the mortgagee may, 
upon default in payment of eith.T i.rincipal or interest according to the 
terms of the mortgage, or for the length of time mentioned in the statute, 
commence a suit for foreclo-^iire. , . ^ i „,. 

(„) \nd if til.' mortirairor desires to prevent the foreclosure he ma%, 
any time lx>fore iu.lgment, pay the amount of mortgage, interest and expense 
incurred to date; or if the mortgagor or any subse.pient mortgagee desire, 
to force a sale of rlie property in-tcad of a foreelosure he may .lo so by fi ing 
in the office fro,,, whirl, the writ of fo,vclosure was issued a „,e„,oraudtnu 
statintr as follows: „ ^ ,i 

"I desire a sale of the pro,>erty instead of foreclosure, at the same 
time statimr the true reason, as f<,r instance, " that the property is valuable 
an.l ^yould sell for more than the mortgage debt." Tn Ontario he would be 
required to deposit $S0 in the court to which be at^died for the sale, to 
cover th( expenses of a sale, unless the Judge would not require it, or^vo„M 
order otberwis,'. Similar provision exists in all the Provinces, an.l the 
question of Muioinif e.f deposit is in the .liscretion of the Tudge. 

~"vrheT"'an"'ord.T for fonclosure has been obtained, the mortgagor and 




8iiL:<f(iuont i.iortfriipfs have six mouths in whieii to rcl.viii Ufore final 
forc'cio:'iire. When- there are several niortfra-ees or eu.uiiihrancerd wlio 
have prove,] their elaiins iu .lefeiiee at the Miit for for.rlosiire, the court 
will usually crniiir from one to thre.' mouths additional time iu whieh for 
them to redeem, acrordinp to their respective priorities. The court may 
also for sutHeient cause allow a shorter perin,] tjiau ^x months if it ia 
deemed nccessarv. 

(a) After foreclosure, if the mort^'airee should sue on the .-ovenant for 
an alle-ed halance due, it jrives the mortfra^ror the ri-lit of redemption in 
ease he [.ays the balance of debt. In such case the mortgagee must have 
the mort-aged estate still in his possession, so &s to be in a jiosition to be 
redeemed. Therefore, upon the commencement of the acti.>n on the cov- 
enant the mortcagf-r slioul.l file a bill for redempti.m. and upon pavment 
of the debt he will be entitled to the estate and whatever securities the 
morttrairee held b-Oonging to the mortgagor. Chatfield v. funnincham, 23 
Out. U. l.-);5. 

(h) The nmrtgngee may be put to his election. If. after the final order 
for foreclosure the mortgagor is prepared to pay off the mort£raffe debt, and 
notifies the mortgagee to that effect, and the mortgage(> con-ents 'o receive 
the money, the rieht of redemption is restored. Tint if he refuses to receive 
Mich ].ayment he would 1k> restrained by a court of e(piitv if he should 
therenfrer attem[>t t" sue on the covenant. 

It is possible to have a final order of foreclosure set aside, but there 
must lie si'bstantial grounds for it. 

The equity of redemption is barred by Statute of Limitations in 20 
years, for all the Provinces and Xewfoundland, uffr the tnortL'airee takes 

432 Unsatisfied Mortgrages. 

Il a TiM.;'ti;:i;.'r !nr a cciMin amount covers certain properties of a debtor 
v.hich, upon being sold. <lo not pay the whole claim of ])rincipal, interest 
and exjienses, and the debtor has other property, the mortcaL'ee can come 
on that other pr.iperty until bis full claim has been satisfied. To do so ho 
would sue on the Personal Covenant, and thus <ecurinir juiltnucnt iiL'ainst 
the debtor jiersonally, issue an execution which would bind all the property 
of the mortgagor. 

Of course the mortgagee could not t-nich the goods o. croj)s of a tenant, 
nor even the personal property of the mortgagor exempt from seizure, under 
an execution or landlord's warrant. 

Tf the mortgagee l)ecame the purchaser of the mortiraired land when sold 
he is required in that case to give the mortiragor a rel(>ase of the mortgage 
debt. P.iit if sold to a third party and a balance remained unpaid he wmdd 
then have a further claim as above stated. 



nrAPTKii XV. 


440 Property. 

'I'iu.' Ifffil (iotiniti.iii of j.roporty i* "The right and interest which a 
man ha.'S in land.-* and chattel.s to "the exclusion of otlicrs." A man i)ur- 
chasis ^^() many acres of land and thus ao(iuiros the {)o^i.session and exclusive 
rij,'lit to its use. He drains it, phmts it with fruit trees, erects bnihlinija 
upon it, and thus increases its value. The soil itself is not hi.s, but he has 
acquired the riprht to its possession and use — a right that e.xcludes all 
others from its use. 

In the coinnioii language of the peojile property means the thinir itself. 
Thus, a man buys a bay liorse ; lie calls it his property, but in leiral lan- 
gnaire it would !)<• his "property in the hay horse" — that is, the right and 
title ♦o its ;i^i>;sv',s',v/')N and U-ir. 

441 Two Classes of Property. 

I'roiHTtv is divided into Personal and Real, n-^tiaily called lical Estate. 
In t^iebec they are styled Movablw and Inunovables. 

1. Personal property includes all classes of property except lands and 
buildings. It consist.s of such things as are movable from place to place 
w ith Uie owner, as money, mortgages, negotiable paper, letters patent, stocks, 
carriages, machinery, farm inijilcments, live stock, book accounts, annual 
crops, nursery stfK-k, gooil-will and leiu<e of property for a term of years. 

2. Real property includes lands, buildings, trws growing upon the soil, 
and every natural source of wealth, such as coal, gas, oil and minerals that 
may lx> buried in the soil. 

Temporary buildings, not jdaced upon stone foundations nor nailed to 
the permanent buildings, counters, shelving, etc.. belongin;: tii tenants. 
trees and shrubs ])lanted to be removed again, as nursery stock. <lo not 
become a part of tb.- realty, but are personal property of the tenant. (See 
Tenants' Fixtures.) 
443 Acquired Rights Over Other's Property. 

A [KTSon luiving jiroiierty removed rr,.m the street i>r road, and ]iays 
another property holder between him and such street or road a certain sum 
for a ri >it of way. as a lane, to reach his property, he acquires a perpetual 
rizht. which also passes to his successors, unless otherwise specified in the 
cci -act. 

(a) Also where a person is permitted to use a way or laue in passing 
to and from such property without any kind of airreement or remuneration 
beinff paid or offered for the full period of 20 years, he acquires a pre- 
scriptive right to its continual u^e. T^ut before the 20 years expire the 
owner may prevent the pre.s<^riptive richt bv puttinsr a fence across the lane. 

If the cornice of a house project over the boundary line of the lot, and 
the owner of such lot allows it to remain for 20 years without some kind 

oi a '.vrulen agrccisieni vv rcniai lOi i-., ••• : ' : 




To pnvt'nt a jtrt-ffriptive use of a way it miistt bu shown tliut the ripht 
to 8iich wav •• wa< iiijovtd h_v some cousciit or iijrri'<'iii('Tit ix|ircsi<ly jriviii or 
madf for tliat pllrl1..^'o l>v dw.i or writin^'." Sec followinj; Si.tion. 

(b) If he has fruit tri-os stamliii;.' •*.. near ihi- tiivi-ion lino that the 
limbs ovcriianjr h iifi^rhljor's prcjH-nv, iht- fruit on tlic linilis that ovorhanj; 
the fiiicc -till lHlun;:s to hitn. ami if it falls mi his ncifjiilxir'n frround be 
has a right to p) nn such frround to piihcr and takr it away. lie is not 
liable to an action for frfspuss for so dninjr. Imt woid.i U- iialdt' for any 
daniap' throinrh tlio falling of the friiii, or in I'xcrcising his rijrht to pollcct 
and take it away. 

The nri;:lil)or also bus ilic riiiht to out olT ibi' lindw that ovorbanp bis 
proiR-rty, or tlio riKits which cxtond into it. Hut before doinjr so he should 
piyo duo notico, and doinand tlioir roinoval, and if his donnnid is not com- 
plied with ho can then cut tlioni off. 

T?nt the jirovisidii iljjit formerly [>roteoto(l tiic owner of a huildinp from 
havin,: liis windows dnrkene.l or a plea nnt view out oif by the oroction of a 
hi;:h fence or a lyuildin;: by his nei':hiM>r is now virimilK Ml^.ti-lied. .y....|.f 
where buiidin"; restrictions are jdaocd in the deed. 

444 Acknowledg-ment for Use of Private Way. 

A Miiii'lf wriiin;,' like tlii' f.illnu iujf, uiilmut any seal, will j)revont the 
user of a road or lano from aoquirinj; a prescriptive riirlit. 

" 1 (name), hereby acknowledjje that the road (or jjath) k'tween fstato 
clearly the land over which it passes and its terminal jniints), over the land 
of (owner of land), now u.sod by mo. juy sJTvants, agents and friends, is 
not usotl as of rifrht, but by the express written permission of the said 
(name) owner. 

" Dated at thi.s liav of , 10. . 


445 Joint Owners, Joint Walls. 

Joint owners i. where two or more persons own property jointly. AH 
have a ripht to it at the same time. 

This class of ownership occurs where a syndicate of persons combine to 
purchase and hold for speculative or other purjtosos a (Mirtion of laml or 
other property. Also, when a i)erson dies without a will, his heirs have a 
joint interest. 

(a) .Toint walls built by two parties on the dlvidiiiir line between two 
properties would Iv an ilIu.«tration of joint ])roperty. Neither one could 
take it down without tlie consent of the other, but neither one can po on the 
jfTotmd of the other to repair it without permis.sion. 

In cities, friction frequently occ\ir- '-hen one profierty owner attempts 
to nse a brick wall built cbwely aloni; ihe ilividinir line but on the other 
projierty. by joinimr bis bnildinj: to it or usinj; it for a supjiort for one end 
of the joists of his buildinij without first obtaininf; consent of the owner 
of s)ich buildiiiir. It would be a trespa.'w. and what is legally termed a 
"continuing trespass." In such case the court a discretionary power, 
either to order the removal of the joists, and the restoration of the wall to 
its original position, or to determine the sum which the trespasser should 
pay for the riffht to continue tlic use of snob wall a? a ioint or " n.irtv wall." 

AIbo in cases where owners o.f property take .sand or irravel from their 



own jiropt'rty tlic.v imist Icavf Hiilficicnt .xiiititort for the u<lji>ining land, or 
prmidf nri urtificiiil H\ip|«)rt for it. If thc.v ilcsirc to t-xoavatc to tho 
ilivi.liiifj liiii'. tillitT fur siich iMirp"-'t-* ..r for a rcllar, they are required to 
build a ritaiiiinjc wall, m> an to ■*iipiM>rt their iifi;,'lilK>r's land, or fence, or 
ImildinR, antl prevent caving in. IIiikIios v. I'l-rcival (,1>»84), Appeal 
Cases 443. 

(b) Also, in ease ^nl^'lmnd imd wife have real estate deeded to thein aa 
join) iiini' rs iioitlicr can ^11 witlmut the coH'^rnt i>f the other, and neither 
fine can will his or her inlcre^t to any other person, Imt in case of death of 
either one tiie other takes tlie whole interest. .\o will need Ix- niaih'. The 
best form of deed for such title for husband and wife to take is in Fco 
Simple, as joint tenant.s antl not a* tenants in eomnmn nor as tenants by 
eiilin'tji -. 

447 Life Estate in Property. 

Life ownersliip is where a person has the use ()f property during his 
natural life. It may Iw accpiireil by ir'ft or will. He cannot sell or niort- 
gajre more than Ids life interest in such property, n >r luake any dispo.sition 
of at his death, lie must not. decrease its value by removing buihlin'js, etc. 
This life estate i.s a matter that should lie rarefully looked into when buy- 
ing real estate, or even taking a inortpajje, an tlie life estate is not always 
ai)|)arpnt. For instance, a fatlier may in his will l)efpieatli a fann to an 
iinmnrried son, with the ])rovi80 that shntild the son die witliotit Iravinfr 
issue that the property should jjo to eertain other persons. The son may 
marry and live on tlie farm for a peneration, and yet die without leaviu'i 
is.sne, the property would jjo to the parties named in the n-ill, even though 
in the inenntime it had been sold or tnortcrased, and even the widow would 
have no riirht of dower or a distributive share in any Province of Canada. 
A Quit Claim Peed is all that sreh person conld pive. 

-Also, if a por-on havinc (ailv a life cstiifc in proncrty were to lease it 
for a term of years, the death of ihe life owner would terminate the tenancy. 
I)o(> V. Roberts, 16 M. & W. 77S. 

If he pave a mortirntre on the property the encumbrance ends at his 
death, the successors, called " remainder men." nnt beinir in the least liable, 
r.lackman v. Fi=h (1S0l>), ?, Chancery 200. 

450 Sale of Real Estate. 

There are twi kinds of sales, viz.. Execnted ami "Fxecntory. 

1. ExKCTTKi) Sai Fs are tlio<c where the sale has lieeii comjdeted by the 
payment of the money and the execution and delivery t,f the deed of 

FxFrfTonv SAi.fis are those where possession has lieen passed by 
acre^'ment for sale, but the title does not pas,s nntil the price has been paid 
in full. 

The seller of real estate, if he has not signed a ponvevnnce. has a lien 
on the property sold for the purchase orice. which is a.s bindinir as a mort- 
pnpo. If payments are not made according to affreement he has the option 
of suinir for them, or if not made within a rea<> time ho may roirain 
possession bv an nction to have the sale cancelled. 

Tn the sale of real estate endiraeinsr a dwelliiiir house, barns, etc., the 
house and barn fixtures, such as ^as fixtures, liay forks, etc., go with the 



prujM-Tly \iiilt'.-»a tlicv iire »p«K'inlly ri'!*('rvtMl, so would *ttw logs, cordwooU, 
ftc, uiil(— llic iiurcaiiifUt jiroviilij ulln rwi-c 

461 VaUd Agreement in Sale of Real Eitate. 

No iiirniniiiit fur tliu siiii' ur punhiUM' i>f real eKtate i^i binding unluis 
in uriliiij;, sij^ bv tlio coulructiuj; jiartiea ur ihiir duly uuihorizcd agenU. 
Set' " Stutiitf ">t* Fraiid.i." No seal \* nijiiiriMl. 

(a) A verbal ajjret iiieiii iiuiile, even if money is paid on it t" '" bind 
the Ijarpiin," (Ixw not biml either party if ho wishes to repudiate it. Pay- 
ing; down a small amount of money, a:» is fre<iuently done at HUeh a time, 
has no lepil elTe<'t whatever. The party wlio paid the money, if he chanpes 
his mind. cumIcI forfeit the moiu'V and n'pudiatc the a^rreeuieiit ; and tiio 
party also who received the money could n'tum it. and repudiate the a^ee- 
ment. .V receipt jiiven f-r such payment by .stating; wluit it was ;iiven for 
niight hold the one who pave it. but it woidd not bind the other party. 

When a Iwrpain is made for the cale of real estate that cannot \to exe- 
cuted immediately, a meinoranclum of the agreement should \)o written out 
and ■'iimeil by both the parties. This makes llie contract binding without 
anything Iw'iiip paid down. An ordinary agreement without seal is suffi- 
cient, simply statinp that (S. Smith) agrees to sell his farm or his house 
and lot (a.s the case nuiv be), for t. .rice apreed up<in. ffivinir the number 
and concession, the tornis of paynne..., interest, etc., and that (.T. Jones) 
airre<>; to buy at the jirice named, and b >th sipn it, will constitute a valid 

Where a valid !U.Teetnent for the sale of real estate is pivon, and the 
payments are not made in accordance with the aprcenirnt, the seller may 
take whatever proceedinps are mentioned in the apreemcnt to enforce pay- 
ment, or to recover ]iossession of the property, or for a cancellation of 
the aarrcement and resale. 

452 Part Performance Validates Agreement. 

If nihil r a virlial .;• •'■iiuiii . -i ;!.i- -air if real estate the purchaser 
lepally enters into possession of the property, it would liave the effect of 
takinp the matter out of the Statute, and by decisions of Courts of Equity 
the transfer woujil lie valid by what is called 'Tart Performance." But 
a part i)a\nient of the ])ur(diase price without entry into posst^ssitm would 
not make the vcrhal airrcfMiicnt bindinir if eitlier t>nrtv wishcil to repudiate it. 

453 Form of Agreement for Sale. 

This ajrreemeut for sale nf land do's not con\ey a title, but is siinidy 
a bindinp pronuse to co)ivey, and may be proved ])y affidavit of witness and 
repistered by the purciiaser. except wliero the Torrens System is 'n use. It 
is also tran-fcrahle bv a'-^iimment: 

HrtlClCS Oi BiirCCtncnt mailp antl pmerpcl Into this 1st day of June. In ttio 
ypar nf our T.orrt onp thouFand nine hundred and ten. 

!!i TUT 1 N .lanios Oray. of tlip Town of Slmcoc, in the County of Norfolk. Province 
of Ontario, vendor, of the first part; 

And William Franklin, of the Township of Woodhouse aforesaid, purchaser, of 
the second part. 

The said .lames Oray and William Franklin do hereby, respectively, for them- 
selves, their rosiiectlve heirs, executors and administrators agree each with the 
other. That the said .Tames Gray shall sell to the said William Franklin, and that 
the s.lid Wllli.'iTn Fr.inklin shall mirrl'.asc all th-Tt ."i-rtnin "..Trprl r.r trf.J't .".f )p,ti.'' hpi" — 
composed of Lot No. 10 in the Fifth Concession of the Township of Woodhouse, aforesaid, 



conlalnlnK liy ndiiiea.suri'nipnt fifty m ri'S. more nr Ipkh. inttotlKr with the appurton- 
aiuf ami till' frf'luilil and liiheiilunci- lln-reof In f"' i- Sliupli- In pOHsieHHlon frfo from 
all incunibrjtK es, at or for the priie or Bum of one IhouHuiid dullaru of lawful money 
of Canadu, lielnK Hiv ri'slduf of hhUI purchane nionfy, on thi- 2nih <lny of St^ptember 
next, at which time the piirthaxe Is to be cumpUteil, and the Hald William Kranklla 
Bliall. on and from that day, have aiiiiul podSi-aHlon of «ald prvmlDi'!), all uutgoluga 
up to lluit time lielnK dlHchnrKrd by the said James tiray. 

That the produ<l|on and InspiMtlon of any det-da or other documents not In tha 
pOktteMiilon of tlie .-.aid .lamcM Oray, and the procuring and iTiakliiK of all cfrtltli atea, 
attentcd oBlcc or other copi' rj of or cxtracla fiom any deeds, wllla or ol •rdoiumenlH, 
and ot nV di'clarallonB or other uvldenceB whatever, not In his poBHeHHlon, wbicb may 
he rci.i ired, Hhall t>e at the expenne of the said William Franklin. 

Thai on payment of the said sum of tl.iioo at the ili^e gpedtled for the payment 
thereof, aa aforesaid, the said James Gray and all other neiesaary partlea shall 
execute a proper conveyance of the said premises, with their appurtenatices ond the 
fr.>ehold and Inheritance thereof iu Fee Simple in i)OH9(8Blon free from all dower or 
other eniiiinbranreg, unto the suld Wtlliam Fiankllu, bU belrs and assigns, or as be 
or thry Khali direct. 

Thai If from any cauae whatever the said purrhase shall not he coi.ipleted on th« 
said 20ih day of September next, the said William Franklin shall pay luterest at the 
rate of five per cent, on the residue of the purchase money from that day till the 
completion of the purchase. 

IN \vn.\KsH WHFRKoK the parties hereto have hereunto aet their hands the day 
and the year first ab"ve mentioned. 
Signed lu the presence of \ Jameh Gbat. 

Hmiht INiTrs I William Fba:»kiin. 

(Seals not necessary.) 
454 Bond to Convey Land. 

K'lKAv all iiKii hy tlu'se Pin.«^i'nt.-' : That I, John Smith, of tho 

, in tlio roiiiity of and Province of , am 

held and firmlv boiiml unto llciirv Jonw, td" the in the 

County of , rrovincc of , in the penal sum of 

($100), to be paid to the said Henry Jones, his eertain attorney, exwutor-s, 
iidininistrators or assigns, for which i>aytnent well and truly to be made 
I bind invrielf, heirs, executors and administrators firmly by these i)rcsents. 
Sealed with my seal. Dated this .... day of A.I), lit . 

Whereas the ab^ve bounden John Smith hath eontraefed and a<rreed to 
sell, and also to i-onvey to the said Henry Jones in fee simple absolute the 
fo'lo\'-.*ng lands and heriditaments, namely (give number of lot. concession, 
etc.), in consideration of tlie stim of (amount), and the said ITenry Jones 
hath nsrreed to piirchasp from the said Jolm Smith the said lands upon the 
conditions aforesaid. 

.Vow, the condition of this obligation is sueli that if the abuvc bontiden 
John Smith shall, at the request of the said Henry Jones, his heirs, or 

assigns, on or lx>fore the .... dav of in the year of our Lord 

one thousand nine Imndred and , absolutely convey to the said TTenry 

Jones, his licirs or assigns, or to sucb jierson or persons as the saj.! Henry 
Jones shall direct or appoint, the heredit-Tinnnts hereinliefore mentioned, 
conformably to the said agreement: Pnivided the said Hi tiry Jones shall 

have duly paid the sum of in the manner hereinbefore mentioned in 

the said agreement, then this obligation shall be null and void; otherwise 
to remain in full force, virtue and effect. 

(Signature and Seal.) 
Signed, sealed and \ 
delivered in the pres- i' 
ence of 

(oisriiinure. ) 




456 Fraudulent Sale of Real Estate. 

Any jKivoii who knows of the existence of an unregistered prior sale, 
inortiiugo or .ulier oiicMUiibrancc upon any real property who fraudulently 
makes any subseipieut sale of the same is liable to one year's impn^oumcut 
and a tine not exceeding $-2,000. 

457 Warranty Deeds 

A wanaiiiv .K-ed with full covenants is tme that guarauiecs a perfect 
title and quiet enjovment of property to the jjurchaser and his heirs and 
assigns after him. Tlu' c.venants are all written out at length, but owing 
to the exi)ense of registering they have Ix'en legally "boiled down" so as to 
express all the covenants in fewer word^^, and thus called a Warranty Deed 
with ;iblm'viated coveii;iuts. l'rii)i.<l rnrnis kej.t by leading stationers. 

458 Form of Warranty Deed. 

The following is the Ontario short form or Statutory or Warranty Deed 
with abbreviated covenants: 

tThifl '?n^CntUre made <ln duplloate) the first of November, In the year of 

our u'r.iom thmi-anii nino hundred and ten. in runsrAN.i; of nn: act lusrbxriNU 

BF.TWKKN Jamoa Smith, of the Townsliip of King. County of "Vork. and Province 
Of Ontario merchant, of the first part, and 

Marv tano Smith, wifo of the party of the part, of the second part, and 
Walter Winters, of the Township of King. County of York, and Province aforesaid. 

''''°"w?TM'ssTTu*''that'Tn 'consideration of Three Thousand Dollars ($3,000) lawfut 
monev of Canada, now paid l)y the said party of th,' third part to the f-M party of 
the first part (the receipt whereof is hereby aiknowU ilgcd ). he. the s...^ party of 
the first part uotii chant unto the said party of (he third part, In Fee Simple. 

Alt AMI SiN(ai \B that certain parcel or tract of land and |)remises situate, lying 
and being' in tlie Township of King. County of York, and I'rovinee of Ontario, con- 
taining l)v admeasurement one hundred acres, be the same more or less, being com- 
posed of the south part of Lot Number l9, in the 7th Concession of the Township of 

^'° To^H \vr''\M> TO iioi n unto the said party of the third part, his heirs and assigns, 
to and for his and their sole and only use korkvkr. snUK.T nkvkrthfi.ess to the 
reservations, limitations, provisos and conditions expressed In the original c.bakt 
made thereof from the Crown, 

The said party of t!i.- first part covfnants with the said party of the third part. 
THAT he has the right * convey the sa'1 lands to the said party of the third part, 
notwithstanding any art of the said party of the first part. 

And that the said i)arty of the third pan shall have quiet possession of the said 
lands free from all encumbrances. 

And the said party of the first part covenants with the said party of the third 
part that he will execute such further assurances of the said lands as may be 

"^"'"Amrthat he will produce the title deeds enumerated hereunder and allow copies 
tt !i- made of them at the expense of the said party of the third part. 

And the said party of the first part covknant.s with the said party of the third 
part that he has done no act to encumber the said lands. 

And the said party of tl.e first part rfi.kases to the said party of the third , -'t 
Aix HIS < i.AiMS upon the said lands. 

And Mary Jane Smith, the party of the second part, hereby bars her dower in the 

I.N WITNESS WHEREOF the Said parties hereto have hereunto set their hands and 

Signed, Seal.'d and Deiivered -j James Smith. ^ 

m presence of , Maby Ja^e Smith. M 

C. Roy Ancf.b. j ^"^ 





Affidavit of Witness: 

CoiNTT OF York, , I. C. Roy Angpr, of the City of Toronto, County of York, and 

TO WIT' \ Province of Ortarlo. student, make oath and say: 

1 Tliat I was personally present and did see the within instrument and duplicate 
dulv Rign.-(l. sealed and exeiutcd by .James Smith and Mary Jane Smith, two of the 
D&rti^s t hereto 

2. That the said instrument and duplicate were executed In the Township of King 

3. That I know the said parties. .. j ,. . 

4. That 1 am a subscribing witness to the said instrument and duplicate. 

SwoKN before me in Toronto, . „ „ . 

in the Couuty of York, thl.s first C. Roy Ai^oeb. 

day of November, A.D. 1910. j .^ ^ , , -i- , 

Joii.N H. WiM.iAMs. a tommi.»sion<T for takimj afi'larUs m thr Counti/ v; i orft 

450 Deed Under Torrens System. 

Till-' fuUuwiiig ••AlciiiuiMiiiliuii (if Transfer" of freehold under the Laud 
Titles Act would be executed by the owner and witnesses. Then by the 
production of this^ nieinorandmii, together with the Certificate of Ti^le at 
the Land Titles Office, the re^ci.stry will be made, and if required the Master 
of Titles will deliver a Land Certificate to the new owner: 

r, A. B.. of , teing regi.stcred owner of an estate (state the nature 

of estate), subject, however, to such encuinbrances, liens and interests as 
iir(^ notified by inein..raiiduin underwritten (or endorsed hereon), in all that 
land dascrilx^d, as follows: 

do hereby in consideration of the sum of $. . . . paid to me by 

p. F., of , the receipt of which sum I hereby acknowledge, transfer 

to the' said E. F., all my estate and interest in the said piece of land (when 
a le.-<s estate then describe such estate). 

In witness whereof I have hereunto subscribed my name this 

day of 

Signed in the presence of \ ^- ^• 

In this system ii must n.ot be forgotten that it is not the execution of an 
instrument that transfers the title, but its registration in the Land Titl<3a 
(^fti.'c. For deeds in fee simple one instrument is -,ufficient. 

460 Quit Claim Deed. 

.\ (luit claim deed is made by a who do(\s not hold a perfect 
title to a projMirtv in favor of some one that has a claim t-> the property. It 
is much like an "ordinary deed, without the covenants. It conveys only the 
party's interest in the property without any guarantee of title. Tt would .t 
used when a mort£raL'(H> piirch:b;es tlie land a'ready mortgaged to him, 1. 
covenants Ijein- already made in his favor in the mortgaire. Tt would also 
be used when heirs in common of an estate (init their claim to one another 
and to executors; and where the vendor has onlv a life e.-^iate in the property 
h"" is selling. 
idl Form of Quit Claim Deed. 

TIbt« ln^CntUrC made (in dupllr.-vte) the first day of October, in the year of our 

'"'Vr"irrrj"ml,"Lmlt'r"o'"he"To^'n%^^ of Stamford. County of Welland. Province 
of Ontar n t'ur^rnt the first part; and Walter Winter., of the Township of Stam- 
ford Co'.nty of Weliand. Proline, aforesaid, yeoman, of the second part. 




WiTXEssKTH tliat tlic said party of the first part, for and in ronslderatlon of th« 
n"n ?^ Th'"^ Thousand Dollars ,$:;,„mO, of lawfl.I n.on.y ol r "nar. ' o ifi , ?„ hand 
paid by the said party of the second part, at or before the sealinK a d d" 1 iven of 
thete Presents (the receipt whereof Is hereby acknowledged) lu r^r n.od reuLed 
and qu.tod claim, and by these Present., doth Rrant. release and quit 'm unto e 
said part.v of the second part, his heirs and assigns forever, all esta . r^ghr ti le 
Interest, c laim and demand whatsoever, both at law and in eai llv or ot vvil A^i j^ 

irikZ\V'::i'7t '° ''°""^"'" °^ ^■^'^•^^'''"'■^ •" birfhe".a?rp^ar°trof'th:'rrs^pYr?: 

expr^*i;;/}r:;i^;;l;^^-/-,-7rt^:'j;c;^"°-' ''-'-' ^^^ ™"^'-- 

seals "' ''"■'''" '""""'" '"' '^'" P""«« ^"^'0 ^^^^ hereunto set their hand.s and 
Signed. Sealed and Delivered i 

in presence of 
ClIABLtS Slmmehs. 



larsf^^OOO?."" ""^ ^"^ '^ "" '*"" "' '^'' iudenture the sum of Three Thousand Ool- 
Witness: ^ 

("inni.Ks Sr\;MEBS, ( J.tMEs Smith. 

462 Trust Deed. 

A trust deed is one made to a person called a trustee, conveyin<-- ,)rop- 
er J to h,m to be held in trust for some other person. The Statute of Limi- 
tations does not apply in such cases, lie is empowered by the conveyance 
to carry out .t.« provisions whatever they may be, as to coHection of rents 
sale of property, etc., and for investment of the funds. He c.innot use the 
property for his onn-u ,,ersonal benefit. The person for whoso benefit the 
trust 1,; hfi,i fjinnot exerci-;e any authority over it. 

463 Deed of Gift. 

A .l,.,..i of crift of property from father to son, or from hu.^ban-l to 
wite, or wife to hus^band. etc., with "natural love and affection" for the 
consulrrahon. ,. valid, unless done on the eve of insolvency to defraud 
creditors, when a creditor may have such conveyance set aside" 

If a husband <ieed his property to his wife 'to save it from hi^ creditors 
ho cannot thereafter compp] her to re-convey it to him, for mfurnl Jove and 
attertion ,s as vali.l a eonsideratin,, as a mnnn/ consideration i«. and the 
registration of the deed makes it final, and irrevocable by the donor 

A gift of chattels by mere word of mouth is goo.!,' if accompanied by 
delivPrv: b„t fl £r,ft of chattels by deed is binding without delivery. 

464 Tax Sale Deedu. 

All the Provinces allow tlie sale of lands for arrears of faxei if there 
is no personal property from which the tax mav he reoovere,! The title 
to pro,,erty derive<l from a tax sale extinguishes nil other titles, heirs 
inc!,,.ied. if the sale was legal and the proceedings according to Statute In 
Ontario after three years the land may be sold. 



4GG Purcuaser May ResUict Nature of His Title. , , , „„„i„ 

in i-urchasinf; lau.i a niau .hould decide wLeu l.avmg the .Led made 

Ikav he wants to h-jld it, either: . 

1. In his owu name, hi. wife holding her dower .n tlte orduiary way, 

in those Pnivinces allowinfi dower; or, 

2 In his own name, his wife having no dower in it; or, 

3. In his wife's name, he having no interest; or, 

4. In the name of man and wife, each luiving a interest as part- 

°""'"'5°'in the names of man and wife .joituly. ... Uun ^yh■n one of them 
dies the other owns it .11 without the formality of a wll or any other process. 
See "Joint Owners." 

468 Observances in Writing Deeds. 

Xuv „,.n mav writ, a .h ■ d who is capahle of describing the prop- 
erty ad will be legal, but in most of the Provinees they would not dare 
to niike a cL.rge for so doing unless they held the proper l'<-"-- ;'-,^T'':^ 
r. Ih VuiHtio.^ solicitor, etc.; and they would not bc.ome P-o- y haW 
for a Jstake. In Ontario a cl^rge^ could be niade. ^ Th^Chi^Jt^n^tv^ 

t tn^rrr ;^; alion ':;S Ie'n!!;.in^lW the purchaser. There 
need a o l; a w tness,%vho makes an athdavit that ne saw the instn.ment 
sf^ed The'mdavit mav be made before a Registrar, ^'^V-^yJ^^f^l;- 
Sri a Xotarv a Magistrate or a Commissioner for taking athdav.ts. The 
S'are priti;ally the same for all the Provinces, and printed blanks can 

be obtained f.-om nearly any stationer. i , i , ;t 1,.^ no blndimr 

\n iurrccmcnt or deed m^v be signed and sealed, hot it^lia. no omding 

effect on The inaker until it is delirered into tb. hands -d tl.o .arties m 

who=e favor it is drawni, or their representatn j„„j „^ 

Vlere there is anv eontradiction betwe. .. d,fT, tvnt par s of a deed or 

♦lir. Inat written holds over the first. ,, 

AHion Inl is conveved to a corporation it i- made to "t ;'- s„ecessors 
inste.l o? heir "heirs;" and to their "successors m office.' where a con^ 
InlZ to trustees Corporation deeds do not need the affidavit of 

469 Who Should Sign a Deed. , , , • .i ,. i 

Vverv ner^on who has anvthinir vet to perform should sign the deed. 
7f th^Juih' "r nil he whole pnrchnso price, hence having nothing fur he 
It tliepuicna..r i .. . Wever there was a mortgaffe or claim that 




470 Registration of Deeds. 

All iii.-^iiiiiuciit.i n iig titJes of real estate should be registorf.l in 

the Jvegistry OlKcc, or 1 . Titles Otiice of the County or Kegistnitiou Dis- 
trict iu which the projxrty is situaie as soon as possible after their exe- 
cution, as all documents take precedence according to priority of registra- 
tion, whether under the old system or under the Torrens System. 

Also, if a deed or mortgage should \m'. lost or destroyed, a duly certified 
duplicate can bo had at any time from the Kegistrar for a small fee. For 
twenty-tive cents the title of any ])roperty may be examined and copies taken 
from documents respecting it. 

The fees for registriiti"n vary, according to the number of words in the 

All deeds and diK'umeufs to l)e registered must l)e verified by atfi<iavit in 
proper form of a snliscribinir witness present at the time of si:;iiiiit:. 

475 Torrens System of Lands Transfer. 

The Torrens System of l,an<ls Transfer has come to us from Aus- 
tralia. .\. similar system has Ijcen in force iu England for centuries under 
the name of (!opyhold. Ii is now in force in Manitoba, Alberta, Sas- 
katchewan, North- West Territories, British Columbia and Ontario. So far 
in Ontario it has l>een ado|)ted by the County of York and City cl Toronto, 
County of Elgin nnd City of St. Thomas, County of Ontario, ami the Dis- 
tricts of .\lgoma, Mu.skoka, Parry Sound, Xipissing, Manitoulin, Tlninder 
Bay and Rainy River. t)ther municipalities may introduce it simply by 
by-law, which should be speedilv done. It is referred to as the "Land 
Titles Act." 

Tf landowTicrs really knew the advantages of this system over the 
medieval .system now in vogue, and the money it would save in searrhitif} 
titles every time property changes owners, fhey would not lose any time in 
asking the county councils to pass a by-law adopting the Torrens System. 
Bu^ they do not know, hence the waste goes on. 

Lands granted by the Crown since tlie introduction of tliis system are 
subject to this Act, and the old cumbf^rsome system of conveyancing cannot 
be used, but all dealings with such lands must be recorded on the ''Certificate 
of Title." .\11 oth(!r lands may be brought under the Act on the api)lication 
of the persons interested and payment of a small fee. 

The application, with the deeds, is left at the Land Titles Office, where 
the necessary blanks and all information may be obtained. The title is there 
fuT.y investigated, and if found .secure airainst ejectment or against the 
claims of any other person, the ]iro]>rietor will receive a ''certificate of title," 
which operates aa a government guarantee that the title is perfect and there 
is no going behind it, Tf a certificate of title should ho issued to the wrong 
person the government is liable for the damages to the injured party. The 
certificates are issued in duplicate, one In'ing given to the nroprietor and 
the other retained in the Land Titles Office. Crown grant.s of Imid bought 
since the Act came int/O force are also issued in dn[)licate. The one retained 
in the office con.stitutes the Register Book. 

Therefore, if a proprietor wishes to mortgage, lease, or in any wise 
encumber his land be exec\ite'i a inemoranduin of sncli inort^aire in dupli- 
cate or lease in triplicate, which he presents at the Land Titles t.>ffice with 



the " certificate of title." Thf [.rr-j^r olhcfr :nakes a reoonl of tho traia- 
action on the certifieaU- of t tie, ami al.^., <,u the aupii.'af <;e.-t,t,cato Mi 
is in the office. This constilutt* the regmtration of the inHtniment, and a 
note tin.ler the han.l and seal of ..ich officer of the fact of mi.'h nfristraiion 
i« made on lK>th dupHrates of the instrument, one duplicate is then hied in 
the oflice and th.- other lianded to the inorttjafiee or less.*; thus each party 
will have a certificate sb-win- him "xactly the nature of hi« iiit.resr. 

In Pome of the Provinces the Land Titk>s Oflice retains the "certihcate 
of title" when a mortsape is registered, and a "certificate of .•harpe issued 
to the mortcagee, but in Ontario the mortgagee holds tho certificate of 
title in the same u-av he hohls th.> title deeds under tho old system. 

In none of the Provincs will a certiti-at,. ..f title l«> issu. d to a 
mortgagee, but he mav procure a certificate of charge. 

In all the Provinces when the registered owner transfers any i>arcel8 
of the real estate the transfer must be entere<l on the duplicate certificate 
in the Land Titles Office, and when all the land embraced in the ccrtifi<ate 
of title have l.een transferred the certificate of title must be returned to the 

^ffiff- , , <■ .1-1-1 I'- -)- 

A copy of ihe Act and the Forms may W pro.-ured from 1 lu King-.s 

Printer." Toronto. Winnipeg, Regina, etc., for the respective Provinces. 

480 Ditches and Water Courses Act. 

Ml tlie Provinre^ have a '•Ditches and Watercourses Act" giving the 
municip.ilities power to deal with the question of small streams and dram^ 
age s<. that in l.K-alities where ditches need to be made anc' the owners of 
the' property's affect.,! cannot agree as to the nature of the dram, or the 
division of the cost, thev mav apply to the clerk of the mnnic pali'v for 
such work to be done under the provisions of the Act. and the cost e.iuii: blv 
distributed amonc: the properties benefitted. , i- • 

Wlienevcr ■^taimant water is allowed to remain within the iimif of any 
municipal corporation anv i-erson has a right of action against the corpora- 
tion on iK'half of himself and oilier residents to compel the corporation to 
abate the nuisance. There mav also be a right of action for damages. 
Tarry v. Ashton (1876), 1 Q.B.P. HI 4. 

481 Natural Water Courses and Ditches. 

A stream or creek tiewim: lliroiidi the lands .f vari.Mis person-^ eaunot 
be diverted to another conrse witliout the consent of all the parti.-'S who arc 
beiieficiallv afF.vte.l bv such stream pa'^'^ing through their lands. 

Surface or other water flowing from the property of one neighb-;; 
across the lands of others, and a watercourse, either bv artificial, or nMnral 
wear of the water havini: been fmnrd. such ditch <<arniot be closed up by 
the owner of anv of the lands through which it passes and then>bv do .,1,1, rv 
to other lands' bv the water backing up and flooding .such lands without 
rendering such person liable -n damages. 

Lands iid.ioining a road or hiirhway where the natural course ot tho 
water is towards the road mav be drained therein, and the municipalitv 
i= required to provide an onllet for the surface and other water which 
nnturallv fl<.w to such road. In case no such outlet is provided the munici- 
palitv is liable for any damage that may be thereby occasioned other prop- 
ertv that inav be flooded. 


hi: A I. rifoi'KUTY. 

483 Line Fences. 

riif l.i'nislaiiiic !>\ ciii-li I'l.nini-c iiu- (.li'tinitely scttli-d ibi- iliitifs of 
adjoiiiinir imipcrty owners or iHi-iipiers in respect U) fences wliidi mark llie 
boiuivlary lictween tlicni, iiiiil ]ini\iilci| an ine\pensive wiiy of arbitration 
for setllinji (lisiMitfs over micIi divisiun fences. 

Owners of oecnpied adjoinin;; lands are reipiired to make, keep nji and 
rejiair a just proportion (nsnallv niie-lialf) of the fenc(> which marks the 
lK)un(larv Ix'tween tliem; and owners of niioecn]>ied hiixls wldch ailjoin 
occupied lands shall, upon their heinj; occupied, be liable to the dnty of kee))- 
inj; up and repairinir such the same as tlioufili they .M-cupieil 
the land. 

484 Arbitratior Concerning Line Fences. 

All <pi(stioiH ri'latiiiir to divi-iun t'ctices in cities are iroverneii by a 
city bydaw, and in cases where owners of adjoininjr properties cannot afrrce 
as to the ipiality of fence betwe<ii their lands, or one refuses to erect any 
fence, or to share the cost of a division fene(\ the dispute may l)e (piiekly 
settled by tlie provisions of <\\r]\ by-law. In Toronto it would be the Prop- 
erty (Commissioner and two arbitrators, one to be chosen by each of th(> two 
parties. I'arties livinsr in other cities can ascertain the name of the jiroper 
official by in<piirv at the office of the city clerk. 

Tn the rural municipalities the (juestion of disputes concerning' division 
fences wonlil l>e settled by arliitration of the Fence Viewers. Tliey are 
allowed .^S.OO a dav for their service^. 

Tn Ontario either one may send the following notice to the other party 
to the dispute that he will not less than one week from the .service of sueli 
notice, cause ihree f, nee viewers of the locality to arbitrate in the premises: 

"Take notice, that Mr :\I r and .Mr 

three fence viewers of tliis hn-ality. will attend on the day of 

19. ., at the hour of to view and arbitrate upon the 

line fence in dispute between our pro])(>rties, bciTic lots Cor parts of lots') 

and in the conci'^iioTi of *ho Townsliip of in 

the County of 

"Date.l this dav of 19 . . 

" To r. D.. A. R, 

'• Ownier of ]..t Xo. . Owner of Lot Xo.." 

485 Nctice to Fence Viewers. 

He wouM al-^o ~(ii(l the followinj: notice to each of the fence viewers 
not less than one week before their services are rer|uired: 

"Take notice that T require you to attend at on the 

day of , 19. ., at oVl<x>k a.m., t/i view and arbitrate on 

the line fence lietween my property and that of Afr beinir lots 

Tor ]iarts of lots') Xos and in the concession of the 

To^vnship of in the Countv of 

"Dated this dav of 10 . . 

"c. r>. ■ A. K. 

"Owner of T.ot Xo. . . " 





Both of thf prct'i'iling notici's must Ix' in writing. Tbo owner thus 
untiticil mny within the week .ihjwt to any or all of the fence viewers noti- 
tied, and iii case they cannot agree the Judge of the Division (.'oiirl shall 
name the fence viewers who are to arbitrate. 

In Manitoba the jirovision is the same as that for Ontario. It the 
iiiunieii)alify lias nut appointed fence viewers, then the parties may appoint 
tliree arliiirators, one a|>p<)inted by each party, and tho-e two aitiviint a 
third. If either party neglects lo u|)i)'t a fence viewer after a demand in 
writing to do so, the* other interested |)arty may apply to a Justice of the 
Peace to appoint un arbitrator, who shall act as thongli apjiointcd by the 
other party to the dispute. 

Tlieii^ reward is filed with the {^.lmty Court and has the force of a 
Judgment of the Court. 

British Columbia is the same as Ontario. 

If the other party objects to any or all thrw fence view ■ named, an<l 
they cannot agree on ifence viewers, then a Judge of the Cour .urt in.iy 

appoint tliree persons to act. Api nil from the arbitrators' de< .jion would 
bo to tlie Sui)rem(> Court. 


495 Sale of Personal Property. 

In the sale of jiersonal properly, as in all othir eontracts, the parties 
themselves must be coiiiprtcnl to conirart. The seller must have a valid 
title to the property to Ix; sold; the property must be somethintr »nl forbid- 
den by law to he handled, and the sale mtist \v without fraud. 

1. \ contract of sale may 1k> absolute or cmditional. 

2. When under a contract of sale the property in the goods is trans- 
ferred from the seller to the buyer the contract is called a fiale : but when 
the transfer of the jiroperty in the goods is to take [ilace at a future time, or 
subject to some condition thereafter to be fulfilled, the contract is called an 
agreement to sell. 

3. .\n airreement to sell liecoui<>s a sale when the time elapses, or the 
!"• iditions are fulfilled subject to which the property in the goods is to be 

4. Selling jKn-sonal [u-o]ierty, which is still retained in possession, "is 
binding as lietween the parfic- themselves, but is not binding against credi- 
tors or sub-c(picnt ]inrcliii-ers unless a Pill of Sale is re2ist(^rod. 

497 When Sale is Legally Completed. 

hi sales that have Ix'eii completed iln^re is usually a delivery of the 
]>roperty and a continued change of possession, but not necessarily so. 
Goods vet in charge of a railway or in a wareho\ise may he delivered by 
simjilv handing over tlio bill of lading or warehi^use receijit. This is calle.l 
a "ponstruetive delivery." 

(a) When the contract for the sale of specific articles or goods is com- 
pleted the riirht to the property is immediately vested in the btiyer. as al-^o 
the risk, and the right to the price in the seller, unless the contract specially 
provides otherwise. 

If the buyer assumes tlu ri~k of the delivery or leaves the mm,]< in 
po.ssession of the seller and they are destroyed before delivery, it will be the 



lo«s of the buyer; but if tho seller assumes the risk of delivery then thr Iws 
will be his. The courts have ruled "that where a legal bargain is made for 
the purchase of poods and n.ithinp is said about paynieut or delivery tic 
ownt'rshi|) ncvcrthfless pa.-st'fts iinmcdiattly so a:* to cast upon the purohawr 
all future risk."" and the partie?; are in the same position a» they would be 
after a delivery of the goodc If this ff->t is borne in mind it will remove 
all doubt in numentus cages of injury, < • deatb of live st/^.4., etc., between 
the time of purchase and removal of the goods or chattels. (See following 

(h) In ca>o of live titook. for instance, ^ay a team of horses were pur- 
chased and .$20 jiaid on account of the price, with tho agreement that they 
were t^i remain on the preiiii«'s a few weeks, the .^ale would be completed and 
the risk as well as the ownership would pass to the purchaser. If either of 
them should die or be stolen before removal the vendor would not bo re- 
sponsible for the loss it could be shown that the death or loss was 
oocas'ioned by his gross or wilfiil negligence. If he can by reasonable or 
ordinary care prevent the animals from Ix'ing stolen or from dyimr while 
in his possession, he is bound to exerci.«e such care, and if he should n':>glect 
to do 8o, and loss result from such neglect, he will be liable to the purchaser 
to the cxtrnt of the loa?. 

498 Written Agreement for Sale of Goods. 

Memorandum of agreement made this ilay of , 10. ., 

bitwcin A, of (place), of the one part, and B. of (place), of the other 
part, witnesseth: 

That the said A agrees to sell and the said B agrees to buy the gwtds 
hereinafter incntioiu d. the property of the said A, for the price or sum of 

(Enumerate and describe the articles so thov can be i<kntifie<l.) 

(Signed) A. 
( ■" ) B. 

Agreements with corporations would need the corporate seal, but with 
other agreements relating to personal property, no seal is necessary. 

The above simple memorandum of agreement would be binding l)e- 
tween the parties themselves in all the Provinces for any amount of g( '-, 
or bv n sli!:ht cliaiii:! ("V tia] i-t:iti. 
500 When a Verbal Agreement is Binding. 

Tn all the Provinces the verbal or oral agreement to sell personal prop- 
erty is binding up to a certain .sum, but l)eyond that amount it does not bind 
either seller or buyer, no matter how many witnesses there may be to the 

Tn Ontario, New Brunswick and Xova S<'otia anything under .f 10 will 
bind ; liut if the amount is $40 or more, it is utterly worthless. 

In ^Ianit<)ba. .Mberta. Saskatchewan, Xorth-West Territories, liritish 
Columbia. Yukon Territory and Quebec anything under .$.")0 binds. 

Tn Prince Tldward Tsland. $30; ■NTewfonndland and England. S.SO. 

Tn each place if the amount is not under the figures here named, then 
in order to be bin<ling. the contract must either be in wriMng. or a t^art 
or the whole of the gocid- delivered, or a part payment made. 

But up to the amo\mts here named for the respective Provinces. ,"■ r,ar 



pain Mia.l.- •' l.y wnrl ..f nmutli " is ovrrv wliit a.s binding as though it were 

'" '' Het'utl mrn-hunt. un.l ..tlui tru.l.T. giviinr v.-rlmi orders t.. coiuiner- 
cirtl travflk-rs or others for a Miialler sum than those resiMX-tivdy for th- 
ditTerent Provinces named above cannot cancel tlieir onier, except by per- 
mission of the wholesale house or the manufacturing tirm; and if the goods 
are not received when shipped in accordance with the order, the shippers 
have an action for damages, which would naturally be the pnco of the 
•rood.*. Hut if the amount is ov.r the sums named here for each Province, 
t'he order may be cancelled anv tim.- hrfure the rjoud^ have hcen arlualhj 
shipped, and "the wholesah- hous." or manufacturer has no option m the 
matter. on Sales, page SS. Addison on (N.ntracts, page 261. 

502 Breach of Valid Contract of Sale. 

If either partv .liould violate a binding contract of purchase or sale, 
he would incur a penalty to the amount of damages the other party could 
t>rove he had sutTered bv the breach of contract, which amount would uatur- 
allv be the price of the article. Illustration: A cattle buyer agrees to pur- 
chase ten head of cattle from a st.x-k raiser and pays $20 to bind th." bargain, 
and id to take them within ten <lays. After he goes away, he sees the mar- 
ket quotations .show a great, depression in foreign prices and he n^ncUules 
uot to carrv out his contra.-t. He .-annot recover the $20 he paid. Tne 
stock raiser cannot comi)el him to carry out his contract, but he can sue him 
for the balance of purchase price and recover it. 

It must be remember..d that usnallv only such damages can W re- 
covered as actually occur. When an article or goods have Won iK.tight tor 
the nunwse of resale, and if at the time of the purchase the existence of a 
subcontract for the goods is made known to the seller, and the seller then 
makes default in d.liv.'ring the property, the purchaser may either pur- 
chase the article from some other person to fulfil the sub-contract and charge 
the seller with the advance price he may be compelled to pay or he may 
repudiate the sub-contract and recover damages from the seller and for 
whatever damages he may be charged with for breach of the .uh-cntraet. 

504 Bill of Sale. , . n , 

Fverv written agreement for the sale of goods and .-hattels shall tie 
deemed to b." a sale, and if not accompanied by an immediate delivery and 
e<intinue(l chan-e of possession must l)e registered as a Eill of Sale in the 
office where Thattel ^Nfortgage^ for that district are filed, m order to make 
such a sale bindimr airainst' judgment creditors, and ^"Wq''^nt P"'-'- '.^i^^^" 
and mortgagees for value. Tt will be noticed here that a Bill of Sale differs 
from a Chattel Mortgage in that it is nn absolute sale of the goods, and not 
merely a lien on them as a securitv for payment of a .lebt. (See f^^rm in 
follov.-insr section. ") 
506 Form of Bill of Sale, 

TThif; ■^1t^C^ltUrC 'i-art,^ the fanrth -lav of April. In thr> ypar of our Lord nne 
,h^,.an,. nln' 1 mndrod and ten. b.twoen .Tamo« Hmi.h. of .ho Town of Wel'and, ,n the 
Coun V of W.lland. and Province of Ontario, merohan. vendor of the firs, part and 
Walter Wln.ers. of .he nty of Toron.o, County of York, and Province of Ontario, 
ppni'eman the vendee, of the second part, 

'^"'■*".„_:..„ .u. „„.y .,„rt^ of fh» first nart !.<» iios.sessed of the stock of dry Rood'^ 
and Ki^ceries and store and office fixtures hereinafter Bet lortn, ue,sci lueu <»uu 
enamo™ah>d a.>d hath contracted and agreed with the said party of the second part 
orThJabBolu e sale to him of the same for the sum of Blx hundred dollars. 



Now THIS iNDrr.TiKK Witneshi-tii ih;it, In imrHuanii' of ihf Hald aKn'^-nii'nt, Ud 
in ronslderatlcn of the sum of six hiinUrcd dollurH nf lunfiil mont>y of Canada, paid 
by tlie . ,tld parly of the serond part, ni or bi/fore tlu> fealinK and dr-ltvery of these 
Presents MIip receipt whereof Ik hereby ni kno»ledged i, he, the said party of the 
first part, linth burRalnrd, sold, assigned, transferred, and set over by these Presents 
doth liarKuln, sell, assign, tran.'ifer und set over unto the said party of ilie second 
part, his exetutors, administrators and assigns, ai.i. tiiosk the said dry goods and 
groi cries and store and otilce fixtures, as per inventory hereunto attached and 
marked "A." 

Ami all the right, title. Interest, property, claim and demand whatsoever, both 
at law ond equity, or otherwise howso<'ver, of hliii the said parly of the first iiarl, of. 
In, to and out of the same and every part thereof. 

To uwt: AMI TO iioi.ii the said hereinbefore assigned dry goods, grocerleg and 
store and office fixtures and every of them and I'V ry part thereof, with the appur- 
tenances, and nil the right, ililc an<l Interest of the snid |)ary of the llrsi part thereto 
and therein, as oforesaid, unto and to the use of the said parly of the second part, 
his executors, admlnl.itrators and assigns, to and for bis sole and only use forever. 

And the said party of the first part dolh hereby for himself, his heirs, executors 
and administrators, covenant, promise und agree with the said party of the second 
pairt. his executors and ndniliilsirators. In the manner following, that Is to say: 
That he, the said party of the llrst part. Is now rightfully and atisolmcly possessed 
of and entitled to the said hereby assigned dry goods, groceries and store and office 
fixtures, and every pari thereof; and that the said party of the first part now hath 
in himself good riglii lo assign the same unio the said narty of the second part, his 
exei'Utors, udnilnlslralors and assigns, in ma.iiier a i said, and according to the 
true Intent and meaning of these i^resenls; and thai ;he said party lierelo of the 
second part, his executors, administrators and assigns, r.liall and nmy from time to 
time, and at all times hereinafter, peaceably and quietly have, hold, possess and 
en.loy the .onid hereby assigned goods and fixtures and every ."f them, and every 
part thereof, to and for his own use and benefit, without any manner of hindrance. 
Interruption, molestation, claim or demand whatsoever of. from or by him the said 
party of the first part, or any person or persons whomsoever and that free and 
clear, and freely and absolutely released and disi harged. or otherwise, at the cost of 
the said parly of the first part, effectually Indemnified from and against all former 
and other bargains, sr.les, gifts, gnints, titles, charges and encumbrances whatsoever. 

And. moreover, that he, the said party of the first pari, and all persons right- 
fully clalniing. or lo daim. any estate, right, title or Interest of. In, or to the said 
hereby assigned goods and fixtures and every of them, and every part thereof, shall 
and will from time to time, and at all times hereafter upon every reasonable rei|uest 
of the said parly of the second part, his executors, .idmiiii.strators or n.ssigiis. but at 
the cost and charge of the said party of the second pari, make, do and execute, or 
cause or procure to be made, done and executed, all such further acts, deeds and 
assurances for the more effectually assigning and assuring the said hereby assigned 
poods and fixtures unto the said party of the second part, his executors, adminis- 
trators and assigns. In manner aforesaid, and according to the true Intent and 
meaning of those Presents, so by the said party of the second part, his executors, 
administrators or assigns, or his counsel shall be reasonably advised or reciulred. 

In wit.mss whkrkok the said r- rty to these Presents have hereunto set their 
hands and seals the day and year first above written. 
Signed. Sealed and Delivered ] 

in pret^cnif of . Jamfs Smith. 


Affidavit of purchaser as to the sale being bona ftdc for value: 

CouxTY OK York, \ T, Walter Winters, of the City of Toronto, in the County of 
TO wit: (York, the vendee in the foregoing Bill of Sale named, make oath 

and say: 

That the sale therein made is bona fi<lp. and for good consideration, namely, the 
actual present payment In hand to the vendor by the vendee of the sum of six hun- 
dred dollars, and not for the piiriiose of holding or enal)Iing me. this dei'onent. to 
hold the goods mentioned therein against the creditors of the said bargainor, or any 
of them. 

Sworn before me at Toronto. In ] 

the Couiity of York, this 4th day of ■ Walti^b Winters. 

April, A.iJ. iOiO. j 

Jamkr Bkown. a tommis.iionir for taking affiilaitts in II. ('. J. 



AfBdi.vl. of wltncHB l.rovlDK Iho BlKuIng, ieallnn and (l.-llvery of '"e Hill of Sale: 
Covyrx OK Yokk. \ i. ChnrleH aumin«TB. of the City of Toronto. In the ( ounty of 

TO wit: 

I York, make oath and say: 

That I wa« ,.er«onally l.r.-mnt and did »ee the within mil of 8alo duly signed 
ra.Pd and dWIviml hy ,Iame« Sn.l.h and Walter Wlntern. the I'"' '^^ ''^"•'"^ »"^ 
hat I this deponent, am a witness to the Hnme. And that the naine 
'harles S.nnn.ors. set and huI.s. rlhrd :.» :. witness to the execution thereof IH "f the 


Charles Dlliuilinn. nt-i imu nm.n. 1 ..J. .. — - . . * .u-. rtlttf 

proper handwriting of me. this depomnt. and that the same was executed at the City 
of Toronto. County of York, on the 4th day of April. A.D. I91U. 
awoBN b<'r<)r() me at the City of 
Toronto, (nunty of York, this 4th 
day of April, 1910. 

.Tamkh riRowN. a rommiiiioner for taking alfdaviti in II. C. J 




Barter vs. Sale. 

Tlnrfcr i« wluro cw articl.' is pivrn in fxrb.ingc for iini.tli.T ..r for 
services, niid if there is no warrnntv civen as to the'ss or .nialitv the 
i.rojMTtv it. la.-li i..i-,s with tli.> .l..liver.v of the arti.-le an.! the exehan|^e is 
eoniplct.-. Neilh.r partv can forcibly or take the arti<-lc back he 
bartered awav. i-xccpt bv c(,n-ciit c.f the other, without liecominff liable to an 
action for theft an.l also f-r .lainap-. \n m snir thr price is payable in 

510 Sales on Trial. 

When arii.-lcs arc i)ur<-hasc,l on trial at a certain i>ric.' th.v be 
reje<-ted l)efore the time cxi.ires if they do not suit, or the sale is coniplete, 
and the party bound to keep thcni. 

The purchaser must also put tlic article away in some safe place wlurc 
it. will not Ih- liable to receive dama-te, as he then occupies the place of a 
baile- and would be liable for evn sliftht ncftlifrence if the article received 
injury. See "Bailment." 

511 Selling Under Guarantee. 

The d.-.-riptioi,s of nu.cliin.rv as to manner and cxcell.'nee of work, or 
the nualitv of other troods, that appear in newspaper a.lvertisements and 
circulars ,;aniiot \^ made a bindinir cmirantce to protect the purchaser. To 
have an etTectivr -uarantce of ,.r that the ii.a.-hine or insti-ument 
will do what is claimed for it in the circulars, it must cither be in a .iehiiite 
form of a guarantee, or in a written or typewritten letter. The courts allow 
for a ir-^d d<^^l of what mav be called esacgeration in mere advertisements. 

What is said in circulars is merelv "a statement of intention, and not 
a iruarantee. If it is absolutely untrue it makes a difference, as it would 
then bf> a case of false pretence. 

Tf an agent were to sav what the circular says, ami on the stren-th ot 
that statement von bnv the machine, you conld cancel your contract on the 
ground of deceit, 'but you would have to be in a position to prove it if he did 

not put it in writing. . i • i i 

Tn cnse. where there is a verbal warranty by the agent besides, and 
perhaps difFerin- frvmi the statement in the circular, you cannot take both, 
but elect which one von v^Hll relv on to snpi>ort your cnso. 

\ warranty civen at the time of the sale of chattels is gr...d. but a war- 
ranty after the =ale is not sood. because there is nothing to support the sub- 
seouent .i.-Tcemcnt. CTSenjamin. pace Cnfi.) _ 

Tn record t" live .toek. if tlie i)uveba=er wishes that a "wnrrantv -liall 

he part of tin 

itr:ict V.e tiiu-t ma 

k.- tlint 

nr when the hnrirniu i-^ 'nane, 



«<) tliat iiri cxproHB or implioJ .st4»t«Mu m \wili rt'^rd to the qualiticM, lii.'spo- 
HJtioti, Miiundnnss or a^c "f the luiiimit would oj)erttte an a warranty. Sliaiil 
V. llow.-i, -J AC »so. 
612 Sale* by Sample, or Descnptiou. 

Sales hv sample or ilcsoription an niadt- ou the warranty, cilhor im- 
j)li(>(l or cxiJreKscd, thai ihf >;oo<is when delivered will eorrospond in kind 
and ([iiality with the de^eripfinn iriveti or sample shown, and if sneh is not 
the ease, there is no hindinn sale, «n<l the article should not b«' retained or 
used. If the seller agreed to remove tlie article if unsatisfactory, the notice 
should lx» pveix n» per agreement, and the article care<l for until removed. 
If a cumlKTsome machine were left an unreasonable time, it must still bo 
<ared for, b\if storage could l)e eliarfred anil eolle<'te(l before deliverinjr the 

In case of dispute- between the seller and the buyer before the seller 
can recover payment he must prove that he gtyxU for which payment is 
soiii:!it :ii-i' ttie arliinl irri'ids sold. 

513 Sale of Stolen Goods. 

SellinjT stolen goods does not pive them a gooil title in the hands of an 
innocent purcha.ser for value, as it ih>es in the with pr(>mis<>ory not«w. 
They can he retaken wherever found. Ket-eiving stolen poods, knowing 
theiii to ]ip stolen, is an indictable offence. Punishment — Fourte<>n years' 

514 Auction Sales. 

The auctioneer id the agent for bndi the seller and the buyer; hence, 
binds Ixith by his acts. When he is selling, he is acting as apent for the 
seller, but in the act of "knocking down" the article to a certain bidder he 
is aiieut of the purchaser, and in the memorandum of the sale he makers in 
his Ijook he actii for Itoth parties, and binds bi)tli. .\uctiniiccrs' licenses are 
granted by counties and cities, who may charge a fee. and also give special 
rules for their governance; and no other i)erson may sell by public auction. 

In Ontario, and probably all the Provinces, a merchant I'ould not sell 
hi:^ own goods by public auction without a license. 

RailitTs who s<>ll goods under distress for rent ni\>d no license. 

.\n auctioHcer in .selling ^'immIs is s\ibieet to the " Statute of Frauds." as 
to the anioimt for which a "verbal agreoment" is binding in the Province 
in which the sale takes place imless the auctioneer makes the entry of sale 
himself. He cannot transfer his iiuthority as agent to the clerk who is 
making ihe nieuiorau'limi : therefore, the bargain between seller and buyer 
is only a verbal one in all ca^es where a clerk makes the entry of sale. 

515 Sale of Accounts or Choses in Action. 

.Meivliaiils" aceuiuii- iiml every t'ono of debt due a person or chose in 
action may be sold by assiqnment as readily and validly as negotiable paper 
may l)e by delivery and .udorsement. The following brief instniment is 
sufficient ; 

For value received. I hi-rehy sell, assicjn and framfer to (per- 
son's 7Mme) the a-.companyinf) arronnfs and claims nrjainst the 
persons n-hose n/imes are enumerated (enumerate the namrs and 

J. Winters. 


A. .,oUNTS. 


The .l.btor should b.^ notified at nm-u limt lh«" ac<)4)iinl Iiuh b.. n trans 
ferml 'I that he is to make payineiil to die asaiKnce. Tiio creditor, as a 
mailer of courtcr>y iis well >u biwiuebs, would generally notify hi» former 
cuatoiner that he hud transferrril the atvoiint. 

(tt) A brief notiee ^milar to the following would anawcr: 

L)ear Sir, — , . , . 

Take notice that 1 have this day of , ll». , u.s^ignid to 

C. I)., of (place), tin- debt (or account) of «lollHr8 due from you 

to me; and I hereby request you to pay the i<aid sum t.> hmi forthwith, and 
; dtvlare that his ncipt f<.r thr Home shall lie a siitKci.nt .iischarne tu you 
fro:*! the said debt. 

To (name). Yours, etc., 

A. u. 
616 Assignee Notifying Debtor of the Transfer. 

I herebv give vou notice that by an agreement in writing, dated the 

dav of ...'... lf» . • , that the rlobt of dollars own r hy you 

toA B., has been absohitelv Resigned to me; and further take iiotice that 

vou are to pay to mo the .aid debt of dollars (forthwith on or 

"bofore the dav of next, and in default thenof I shall puisuo 

such remedies a.s are allowed by law for the recovery of th.< said debt. 

To (name). Y""^^- ^**"-' ^ ^ 

The following less formal notice in most of cases would be more in 
keeping with friendly business intercourse: 

I. 'the' underJiimed, of (place), hereby give yon notice that the (Icbt of 

dollars owing by you to ^Ir has been this day assigned to 

me, and I recpiire you to pay the same to me. 

Dated this day of ^^-.o. ..j, x 

(Signature ;iud Adiresa). 

\fter receiving such notice cither fro,,, th.. creditor or the assignee, the 
debtor can onW legally pay the debt to the assignee 

The .ransfer of a debt bv assignment is not like transferring .i negoti- 
able instrument In-fore maturity by indorsement, which gives the holder a 
right to collet the face of the paper without regard to any counterclaims 
the maker might have against the payee. Rut the transfer of a .lebt by 
assignment do^s not shut off any couuter-clai-.s the debtor may hav. aga.n.t 
the assignor at the date of the transfer; therefore the assi^mee is V-.und In 
aJl the rights and equities of the defendant who ould ^-^^ "^.^"T" f the 
or damliges allowed bv the inrv. The assignee merely takes the place of the 
creditor at tlu date when the ;is=iriment was made. 
B17 Form of Assignment of Debt. • * vi„ * ^i,^ 

The folh.ving toru, -f assig„„u.nt^ warranty ,s preferable t,, the 
briefer form under "Sale of Accounts": 

Know all men by the.e Presents^hat T ^^- of . . . .^^in^n- 

siderntion of ioiiars to nu- paiu wj ■■■.■■■. ■■- 



whereof 1 hcrrliy acknowli'ilj;c), iU> hiTcbv assipi to the said abso- 
lutely, a eerlaiu debt uwinp to iiie from , of for (^aoii< sup- 

])lie(l or its ease may be), and all and every sum or sums of money now due, 
or to hecoiiR' due thereon, and I liiitl'v wanaiit thai ilie -aid debt is still 

due and owinjr to me from the said and that 1 have not previously 

assigned or eneumbered the said debt or any part thereof. 

in \vilne>s \vhert(d' I lia\c hereunto set -uy hand au^i .-eal this 

liav ,,f i:i. . 

Siirned. sealed, ete. 


520 Stoppage in Transitu. 

Goods not yet paid for, jiaviug been shii)ped to the purehaser may bo 
stopped by the uniuiid -eller wiiile they are in transit nn.jer certain well- 
detiued conditious. 

If after shipping the f;o,,ds the seller reeeives an intimation that the 
IHMvliasi r has become insolvent or is on the evo of insolvency, he may forbid 
the (leji>ery of tiie floods to the pundiaser. and the carrier company must 
olx>y fU(di order, if it still holds the bill of ladinj;. 

If it -liMiild nirn o\it. however, that the purcha.-er is not insolvent, then 
the seller who unlawfully slo]>s the ^ond- in trau-it may be re(piired to 

make jrood the purchasers loss, or to deliver the ir 1- and ]iay damaires suv 

tained by the delay in delivery. 

'I'he riiiht of .s/o/i/inr/c in iraiisHii end- ^vll(■ll thi' i;u.n1s have hern leiially 
deliM>red by the carrier or wharfinger to the ])ur(diaser. The ilelivery of 
the hill of iailiiifr to the buyer is ipso fnrin an actual delivery of the goods. 

The purchaser, however, may cxtiiiirui-h the"- I'iirht of stopjiage 
in ir'ni!>H7t before the irntisihif is ended: 

1. ])\ iraii-^ferrinir lln' bill "f hidiui,' to m hon/i fulc luircha-i-v foi- value, 

J. When instead of selling the iroods the bill of ladinir is transferred to 
a hann jidc jdedgee. as security f or an advance, or .i debt. 

522 Bailment— Bailor, Bailee. 

There are many tran-aei ions taking ]ilaee in every eonununity which 
involve the rights, duties and obligations of bailor and bailee, hence a sec- 
tion rovering that subject l)elongs to this chapter. 

Railnient is the delivery of goo<ls in trust by one person t-> another for 
a specific )iurpose. and tlie acce]>tance by the other ])arty (if such goods on a 
trust express or implied to be delivered u;i at the time asrcod upon or when 
the contract is com])lied with. 

llailor is the <ine ownin;r the propirty ; the bailee the nw^ to whom the 
propi rty is entrusted. 

.\ carter of gof)d«. a carrier, as railway, steamer, express company, 
are bailees, so is a tailor of the ^oods to be made into a suit, and a baidv f' • 
the keepinsr of securities or even jew(ds that may he deposited in the -(ault 
for =afe Icreping. 

The obliirations of the various classes mav be summarized a^ follows; 

1. Where joods are left in cnre of another without ]iayment. merely 
taken as a matter of friendshi|-. Such bailee wouhl only lie liable if loss 
occurred throuirh liis gross neglect. 



•> Whore Koo,is are Kfi iu (-a re of another person for hire. Such per- 
son wouM he liubU. if los. oeeurreJ thruutih .>r,li ary negligence 

A hor^e and carriage hired +>o.u a livery or any person Nvould come in 

:;''\'vhere -.hhIs are iL.ft iu the hands of a [.erson to be sold, say on com- 
nii^.ion. The consignee in Mich case must exercise ordinary diligence m 
carin.' for ihe, such diligence as a prudent man would give to his own 
goods, lie has a lien on the good» for all his charges and commission. 

1 Wluiv propertv is horrow.d to ho used for the henctit of the bor- 
rower. In such cases "where nothing is inii.l as compensation the borrower 
is required to exercise tlie utmost dilig.nce in caring tor the property and 
will be required to make ffood any damage. 

In cases where Dn-pertv thus loaned is u.n returiuM thr ou-uer has the 
choice of two or three kind'- of anion. II.^ can replevy or sue for the re- 
covery of the goods, or sue for the value. 

h. When property is le 't a- a pled-o or collateral security for a debt 
or loan the holder must use ordinary dili-ence in caring for the goods, and 
if the .lebt is noi pai.l the liold.T may di-po^o of tho goods aco.rdmg to the 

"Ordinary diliircncc' 

carina- t'or ihc art'.i'le dciiend- 

niore on fact 
tlian on law. "as there nre many circumstan.'cs which mii^t he taken into 
;„.,-o„nt in each ca^e of hailinont. It means in each case the d.ligenco which 
a prudent*..n would exercise in hi-j>wn matters <.f -mular n:.Mnv. 
Vaui;han v. Xewlove. ■'< Bing. X.*'. 1'''^. ^T-- , i r 

The duty of a bailee is t. pnt the article to no other u*e tlinii that tor 
which it i^ taken, to use it well and restore it at the appo.nte.i time. If 
lie -elU it or part- with it the bailor may recover the chattel from the ,,er- 
>o,i in who-., po-.,..-;. n it Ikh ]ia-sed. or he may sue him for the price. 
525 Conditional Sales. , , i i r 

Conditional ^;ih- ;nv what havo been referred to uiiM.r the head ot 
'• Lien Xoti s." which see. 

In -ellin- -ewin- macdliiies. or-au-. plan..-, n-ncultiira! and olhor 
niachinorv ii is common to sell them under - r<rn aqrennrnt. the buyer 
obtainin-' the /.o.vvc.Won nn^ il^p of the article but th.' seller retainim: the 
ownrrsh'ip until it is paid for. These conditional <alo- aiv binding and 
enforceable bv common Inw. an.! all ilu' Provinces r. cognize tli,.m: but each 
Province, and Newfoundland, la^ , nan-d special legish'-tion -oni.- of the,,, 
to prote..t the inter, sts of inno.., nt third parties, but all of them to protect 
the unpnifl .orlh'r. if he complies with tlio requirements of the .\ct 

Xotwith-tandiv the misleadins Inniruaire of the Statute, m calling the 
a-reement " .. conditional sale a "hire receipt." the cmirts mvai-ably con- 
stnie the agreement a- a conditional sale-that ,a snle ha« actually taken 
place. Alasor v. .Tohn-on. 27 V.C.C. -OS: Goldie S. ATcrnlloeh v. nnrp.r, 
.",1 O. R.. 2<'S. So the vendee cannot relieve him-.elf from liability Dy 
returnin'r the property or offerina to do so. 

.\ man purchasinsr an article undc- these lien n-remnent= and not 
aequirins the o,n,!p of it. merely its possP»^>nv until it '^ P^'^'l/'^''- '* 
he were to «ell it, could not cive n good title, and the sale would be frmid^lr 
hnf. The real o^^mer can recover the V-'_V^r\x frmn the person to whom 
it has been ^oid. >im:iM- To. v. CiaiK. .''. T.x. D.. HT. 


p: ^c *). I'lttJi'KKi V. 

Limdlords iiiav ?cizc ai .1 ^l■ll buch prupcit y for ri'iit. but th'-.v must pay 
til- balain'f of piirobas'.' iiiouev. It is the saiiiu with execution creditors. 

Also chattels purchased by tiie tenant, but alHxol !■« the realty, remain 
subject to the lien, anil tho owner or ii iiiMrti:iii.'ee can only retain such 
chattel bv paving balance of ])nrrliiise price. Hall ^Ifj;. ' '". v. Uazlet, 
11 A. H.", 74!t". 
526 Conditional Sales Act of Quebec. 

In (.Quebec tbe.-e conditionul .-ales or -ale- uu.ler a leiu:e, do not reiniirc 
regi^t ration. 

I'nder Qiiel>ee law there is no ^uch thiiifr as a chattel niort.irafre, so 
there can be no subsequent mort^'aL'ee to afMpiire an interest in studi jrix-ds 
a? in the other Provinces. 

If a party holdiiifr such goods should sell iheiii, the sale is null and void, 
and the articles may be retaken from third parties who may have [)urcha8ed 
them even in piod faith, unless they were ])iirehascd at a fair, or market, 
or a public sale or from a trader dealing in such articles. The buyer could 
recover damages from tho seller if he were ignorant of the fact that the 
goods did not belong t« hiui. 1487 C.C. 

Such goods are liable to the landlord for rent, tinless and until tho 
owTier .served a notice on the landlord that the goods liolonged to him, and 
therefore could not be hold a? security ior tho rent. 1022 C.C. 

Munici|)alities have no lien on .such goods for taxes whore th(> amount 
is due by the party in jwssession, and if a seizure should be made by the 
niimicipality tho actual owner could obtain possession of his goods by 
moans of aii Opposition under Section 04() of the Code of Civil rnT<>edure. 

.\nd if such godds are seized and sold umler execution against the 
party in ])Ossession tho pnx-oeds of such sale coidd be claimed by tho .ctual 
owner to the extent of his claim. '! M'l (^C. 

Tn defatilt of any payment all ]irior payments are forfeited to tho 
vendor in lieu of rent, if the agreement so states, and he can retake posses- 
sion of his goods. Sh >uld the lessee refuse to allow the owner to t.ike 
■[possession, ho is entitled to take )io<se--ion iinder n writ of IJevendication. 

527 Registration of Conditional Sales. 

.\ll the I'mvinces, rxce|it (Quebec and .Manitoba, require the registra- 
tion of these conditional sales, under certain circumstances, in order to 
protect the vendor against suli-e(pient |)urcliasers fo- value or mortgagce-s 
without notice in good faith. 

It must be noted that tho of persons tha*^ the lien agreement 
would be void again-t if tho provisions of tho Conditional Sales Act are 
not comjilied with are " subseijucnt jiurchasors and mortgagees without 
notice in good faith," so that other parties — general cre<litors — could not 
come in. even if the Act is not complied with, for a rrrdiinr can have no 
better right to his debtor's goods than the debtor himself has. T)ominioTi 
Bank v. Davidson, 12 App. TJ.. 02. Even buying at a sbnrifF's or bailifTs 
sale wotdd not give a good title if the vendee had no title. 

In Ontario the T.ien T,aw provides that for these conditional sale?* in 
order to W' biiiiiinu against sulwequent purchasers or mortgagees without 
notice in ir(V>d faith for valuable oonsideration : 



The jLnToomont must Vie !ri writinf, and siiTied bv the li.Tilee or his 



-J. That a uopy of the af^rccuuiit .shall 1h' left with tho vendt-c at the 
tiiiif (if the sale or withiu 21 ihi.vs thLTcaftcr. 

Aiicl ill ri>]x'ft t'l iiiamifacturcd articles one of two thiuj^s lunst bo doin': 

(!) At thf liiiii- jHi-x'stiiori is fiiven to the p\irchaser the name and 
address of the vendor uuist be |)aint€d. printed, enjijraved on or attached to 
the article. This |ir<ite<Ms the seller, but is of no value to the jjublie, as that 
is a eoiiinion mode by which firms advertise tlieMis<Tves, even when selling 
for cash. 

(2) If this is not done, then a ciiy of the lien note. re<-eipt note or 
agreement must be tiled at tlie othee of tiie ('ounty Court Clerk within ten 
days from the execution of the receipt note. 

Iloiiseliold furniture (e.\ce]it musical insirumeiits ), is nut held in the 
Act t" !m' loaiuifactured articles. Thi> -[>ocific exclusion of household fiimi- 
turo from the li^t of maiiufacturrd articles inu«t not l)e forgotten by furni- 
ture dealers and nuinufacturer>. It i- unreasonable, but the courts will 
enforce the Statute. 

For all other fr<'od-. including: houM'hold turniiuff and live .-.toek, regis- 
tration is necessary. Fee for filing is 10 cents. 

In New Brunswick three things are rc(piired. (1) The name of the 
mantifai'ttiriT mu-;t Ik.' ju'iutcd, stamped or ])ainteil on the article. (2) A 
copy of the writing tiled in the office of the Registrar of Dee(ls for that 
county within t<'n days from the execution of such receipt note. Fee for 
filing, 10 cents. ('5) The manufacturer or seller must leave with the pur- 
chaser a cojiy of the lien agreement or hire receipt at the time •>{ sale er 
within twenty ila\> iherefifter. 

.V true ('(ipy of the agreiMiient or lease uuist Ix^ filed in the otfice for the 
Registry of Deeds in the registration district in which the person to whom 
the chattel is iiariiained within ten days after the delivery of such chattel, 
together with an athdavit of bona fides by either the- vendor or vendee, or a 
iluly autliiiri/i(l agent. 

In Prince Edward Island to b(> liinding against thinl parties fine of two 
things musr be iloue. Kither (1) the name of the manufacturer must be 
printed, stainjied on or othiM-wise attached to the article, or (2) a eopv of 
the lien agreement iir receijit note must l>o filed in the office <if the Prothi>- 
notary ..r llejuity Pi-dllii'tiMtary. This does not apply to hoiKidioM iroods, 
except iiinuii-, (irgnns or ntlier musical instruments. 

In Manitoba a '"'^1'.^ ''f the note or aL'reement need Ix' tiled. Imt in 
case of manufactured articles tie name of the manufacturer or \end"r must 
be painted. |)rinted. or stamped on tlie article-. 

In Alberta, Saskatchewan and North-West Territories, w hen for a sale 
of farming and a<rrieultural implements of $00 and over, and other goods 
of value of $1,') or over, to be liinding airain'^t executions, attachments, sub- 
sequent purchasers or mortgagees without notice for valuable consideration, 
the agrf^ement must be in writing, signed by the manufacttirer or agent, and 
such writing or a copy of it filed in tie office of the Registration Clerk for 
Chattel Mortgages in the registratio!i di-trict in which the purchaser re- 
sides, within thirty days froiu sale; and also in the registration di.striet to 
which the goods may be removed (if they are removed"), ^vithin sixty days 
from ancli roniovfll verified in eaeli cn^e bv .iflfidavit of the vendor or bis 


I'ERSONAl, I'ltol'KlMV. 

agent lluit tlic sale i.-, bona fide. Fee for registration, -'.< feia:=. 1 hey lake 
priority from date of tiiiiifr, =aiue Ub ehaliel iiiorigages. 

riy^tiiieiHlmeut of IIIUS tlie hire receipt or agreement nee^i not be regid- 
tere.l if liu name of the vendor ir. iiaiuieil ou or attaeh'^l to by mean? of a 
jdate or other similar device. 

J.ike ehattel mortgages, if no! puid .-t^.ner. there uiu?t l)e a renewal 
statement tiled at the .xiiiratiou of two years. (^See Renewal 'd Chattel 
Mortgages. J 

Any false stat<Muent in the renewal .-tatenient ineurs a penalty not e.K- 
eeedinji $100. The seller is x\\>n bound by the statement, and the payment 
of such amount cancels the debt. 

hi ea-e of conditional sale of chattels by incor|K)rated companies to rail- 
way.-, if the agreement or hire recei(it is duly signed and sealed, ir may he 
lile'd with the .Registrar of .I(dnt Stock Companies within thirty days. 
Anietidir.cnt of l.'JOh. 

They may be discharged or partially di-chnrged by tiling a nx'eipt or 
certificate same as in ease of a ehattel mortgage, and the selh r i- re.iiiired 
to give such recei)it when the claim is paid. 

In the Yukon, it ilie airiount is $1.5.00 or over, the ao^rre ..eut must bo 
in writing and registered within thirty days of the sale in the office where 
chattel mortgages are register<'d in the i-(;gistration di>lricf in wh'.di the 
buyer lives, or to which the goods may be removed, and veritied by allidavit 
of the seller or his agent. It holds good for two .ears, and may then be 
renewed by filing u statement in the same office similar to the statement for 
the renewal of a ehattel mortgage I which -^ee). The statement must Iv filed 
during the last thirty days before tln' expiration of the two years, and there- 
after the renewal iiuist be annual. 

For a false statement in the reti' wal -tatenieni the -ellrr bei'mnr- liable 
to a fine not exceeding $100.00. The fee for registering is $2.00. 

In British Columbia all (onditional -^ah--; are vobl nuain-t -nb-( .pniit 
]iurcha^ers and mortgagees without notice in gooil laiih f^r valuable con- 
sideration unless a true copy of the receipt, note or instrument is tiled 
witliin twenty-one days at the office where Rill- of Sali>- are filed for that 
district. Here the arti(des need not bear the maiuifacturer'- or vendor's 

528 Vendor Retaking Possession. 

.Vrticles thus sold and the note not beins paid at nuitiirity. the seller 
may retake them at once, or he may sue on the note, and if h(> fails to 
recover he may then retake the articles, Tt i.s not necessary to ].roMirc the 
help of an officer, but care mti-^t be taken not to commit a breach of the 
peace, Tf the conditional pnrcliaser resists, force must not br used, but 
the article must then lx> taken by an "action of replevin." if it cannot be 
obtained penc.ably bv imv other way: it wouhl not be theft to take it with- 
out permission. 

All those clauses in the aL'rerments that are so enmmonlv inserted, £riv- 
ini the vendor or bailor the riirht to break open doors and locks and retake 
the goods, are illegal, and if such eritnin;' acts nre committed the party 
,,,!._,., tbiT'; bre!il.:°. in ip. lii^ble to invprisop.rneTif. 

When the vendor takes possession on default of piivmen* and resell'. 



it oiirriiir.-- a- a n'cisi<iii <il' ilic uriuinal .-alu aii'l lii.^^nUi'? the (•oMtraet 
Harris v. Diistin, 1 Terr. L. li.. l(»l. 

iliit if the uirreeiiieiit is thai ihe \i-iiili'e ^hall stall l"' liable for the 
Kahiuec. it anv rciiiaiti at'ltr nselliui: tin' arlielu, then the \cii(lec may In; 
siu>(i for Mi.-ii'l.alaii._T. Aith.l.l v. I'lavtrr, I'J O. E., COS. 

529 Time Allowed to Redeem Before Sale. 

In IJutariii, .Mherta. .Saskalelicv.aii. and New Brunswick, £;ix)ils thus 
retaken liy the liianiifaetiirer or seller iiiiist he retained twenty days from 
the time possession was retaken before thiy ran be -"M to others, unless 
the ai!;reeiuent providi'd oiIktw i-e. .\iiy tiirw iliiriiiii' ih'>M> twenty ilays 
the ])nrehaser may redeem them by [layiiiL' arrear-, ii'terest and le;L,'al eoets. 
Ill N'n\a Seutia the artielc imist Ix' reiaiiie'! llii'ii^ iiiiiuths bi'fi^re beiiii^ 

'J'lic Xorth-West Territories, British Coliimliia and the Yukon require 
the pKxls to be retained for twenty day.s, even tlioiijrh the value of the goods 
is less than $!!<•. !'<• In each case if the airreenient nameij the time during 

\\hieh tile i^'iod- Iiill-I !"■ rrdfcl I tliat wr.iihl li,,|,| i:,u„\. 

530 statutory Notice to Debtor of Sale. 

in <>iitai'io, New lii'iiii-wii-k. Alberta and N'orth-West Territories 
floods, when the jiriee of whieh exceeds .t^oII.OO, biiiiir tints retaken for a 
hreaoli of the eniidition, must not only be retained for twenty days, but 
eantiot l>o sold without five clear days' notice to the debtor. The notice 
may be jjfiven orally or by letter. Tf sent by letter it should 1k^ retristered 
iind posted at least seven days l^M^fore the day of sale. Ttie said ti\e days 
or s(>ven days may be jiarl of the twenty days in previous section. 

In Saskatchewan eii;ht days' notice must lie i;i\-en, and if sent bv mail 
the letter miisf be pou-il ten days before the sale. In N'ova Scotia twenty 
days' notiee mii-f be jriven. by beinsr left at his re-idenee. or sent by regis- 
tered letter l'l' diiv- be, .iv ~iieh illtp'Il.I-'.l -ale. 

531 Form of Notice to Debtor 
To fperson's namei. of (']ilace') : 

Sir, — l'l<>ase take notic(> that at the exyiiranuii of five days from the 

service of this notice uivin you. to vii, upon the day of 19. ., 

1 -hall pr I'd u< -ell tb.> foil , wine- ^-.i.ids ,)r ehatlel i de-eribe the ]>rep- 

erty) at the in the ,if iu the county of 

province of The -aid goods were taken yxissession of by me 

on account of a breach of condition in the conditional sale or promise of 
sale thereof to you by nie. Tf you desire to redeem the said ^'iods or 
chattel yon may do so at anv time within the twenty <lays required by 

Statute after the 'lay of (the day of taking possession) on 

payment of the sum of $...., being the amount in arrears on sttch condi- 
tional sale, together with tbi- interests, (^ojts and actual expenses incurred 
in tnkinir possession. 

Mated this dav of 10. .. 


532 Creditors Asking Statement of Account 

Tn all of the Provinces any creditor or a ]iro-pective luirchaser of an 
artich' thits covered bv a lien niav demand, and is entitled to receive. 

within a I'ertaiu mimner o 

^f dl: 

ifter til. 


rom the man 




MAliltlHi WuMKn's I'ltorKUXY Kllilirs. 

or Mii'lcr rhuiiiiiiir ownersluii. In 
<hu- iind the tiTiii.' oi i>ayiiiciit 

int'i'riii.itidU conoeriiiug the ani'Uiiit yet 
R- iiuu i..r ..iiii.' V- ,.„.,..>..,. A ret'iijal or ucglirt to luruish such 
inforniatinu incurs a jiiiialtv not ext-oediuj; $.')U.OO iipon couviiMioii before 
a StijiPiidiary or Policf .Mii^'istrato or two .1 ustices of the Peaw. Appeal 
tr..m such jiul-niient is tu thi Juilge of the County Court without jury. 
The iutjuirv uiav be bv leiter, pivinp tlie name and post-office a(hlress, and 
a reply witliin th.' titnr allowed by rccrist.n'd loftf-r to such nddresa would 
be sufficient. 

In Ontario and British CoJiiiiiMa iln' int'ormation inu.-i !'■■ Lnvni within 
five <lavs. and in Mauitcba forthwith. 

New Hninswick rccpiires the information io be iriven within twenty 
days. In Nova S'otia, .\lborta, Saskatchewan, North-West Territories, if 
dfiiiand for inforiiiation is made by a creditor or interested person asto 
the amount vet due, a sworn statement must be filed within 20 days with 
the rtciristrar. Failure to do -o w.mld forfeit his risrhts apainst such inter- 
ested person. 
533 Copy of Agrreement to Be Given Vendee. 

The A.'i iMiuin - !li:it a true oopy of the lifii note or agreement W left 
with the vendee at the time of its executitm. or witliin a certain nuiiil-T 
of days thereafter. 

In Ontario at the time of sale or within twenty-one days; New "Bruns- 
wick. Xova Scotia. P. E. Island and P.ritish ronimbia, within twenty 
davs: Saskatchewan, within five days. 

• lIAPTF.n Nvri. 


540 Married Women's Property Rights. 

\n unmarrie.l woman. .Mfher as spinster or a widow, is as free to con- 
tract as a man in all the Provinces. Newfoundland and Enirland. But 
if -he has a hu:-band liviusr some of that free.lom is lost in the business 
complications frrowin<r out of. or inseparably connected with, the dual rela- 
tionship. The followinir sections irive in brief her rights and liabilities 
;i- a cMiis.,rt. 
542 Married Women's Control of Their Separate Estate. 

A married woman in Canada and Xewfoimdland may hold her own 
separate property in her own name. She may contract in respect to her 
separate instate, sue and be sued in her owni name: and her own estate only be 
liable for such debts and contracts. She has the sam<' remedies for the pro- 
tection of her separate estate acainst her husband that she has ajiainst other 

parties. - r 

In any proceedinir concerning their jiroperty, the husband and wife are 

competent to give evidetice against each other. 

She now not onlv holds all her separate estate both pers.^nal and real 

,,-,,,,.. -f,.. f^f.p from the control, ,h-hi= and oblisrations of her husmnd, but also 

enti'relv free from anv estate therein bv her husband dnrintr her lifetime. 



Even OiougL .■^he luiiv not |)o».sc'.s uiiv M'paruto v>uu>- at ihr iinic >h<- .-huts 
int.> a oontraet she Inav still incur the liability, aiM b.n.i wUafvor prop- 
rrly siu- may then-aftor aaiiiirc fXcoi)t siu'li prop,Tty a.- ■,hi- is " rostrainod 
from aiitiripaiiiiir." ( Si«.- iifxt Sc<'tion fnr (Quebec.) 

543 Married Women's Rights Under Quebec Legislation. 

In (^i(l..r \\wvr i^ surticicnt variaiinu to mal^c it a(lvi>al.l(' to frivc the 
M.ain Iratuns In this I'n.vinc.; married women may be either m 
cummxinlty of proi-eriv with tlieir husbands or separate as to property It 
in communiti) the hu-baud ha- the administration of it. but at Ins deatii or 
a dis-soiution by order of the eoiirt -he takes half the eommon properly. 
Uuabiind can only will his own half. 

Commuxily of i-roperlv between hll^baud uiei wife exists uidcss there 
has l)een a roiitract or eoveliant to the contrary, hnuv, if marrie,! without 
anv marria-e contract iKdnn ...xecnted l)efore marria-e. tl nitraetnifr par- 
ties are in rummunily of proi)ertv. and in jreneral t<'rms ili- projxTty of the 
wife is liable for tlie d.'bts of the Ini-liand. and the prMpcriy of il,e husband 
is liable for the debts of the wife. 

W'hr'i i), ri„„miniihi of property, the wil'c caiin-n hohl movable pn.p- 
eriv in her own name, except what may !»• wIILmI ,,r U.iucathe.l to her by 
ihir.l parties and declared to b<- her private iirnperty. 

I,n,nocnhl.- pr.pcrtv bcloiiirinir to her before niarriaire or kniueathe,! 
to her bv parents or ancotors doc. not Ixx-ouie part of the anmnumiy, but 
is hers absoli.telv. The rent- and incomes fn.m such real estate beloni: to 

the commiinitii. . 

The consort.s niav als^-i eontrai't before nuirriai:-' 'hat ihcv will lie 
separate ax to },rop,rt\i. or separation as to projierty may be obtained by an 
order of ,-onrt. When thus separate she can administer her separate estate 
and transact h<-r bu-iness in Ic-r own name, invent her incnie in stocks and 
oili(>r propertv a- freelv as tboiiirb not married. 

When srparnh' as'to pr..poriy -he ha-; the c.Mitnd of. and may disp.w 
of her movable i.roiiertv. but cannot >ell or transfer her real estate or bank 
«t.,ck without the authorization of her liu<band, .-r upon his refusal, an order 

from the court. 

Al<o, when separate as t.) projiertv, she 1-' rc-piircd to contribute ui pro- 
])ortion t'. mean- 'oward expenses of honr.chold and education of the (diil- 

drcn bv her. 

Tf she b.romes a Imdrr .-he must rfi/istrr her intention of carrviu- on 
such business. And if she is not separat.' as to propertv her foods would !«> 
liable for her bu-ban-l's debts: also, if sh. has no separate estate either bv 
inarriace contract or a judfrnieiit of tli,. court the hu-band wonhl be liable 
for her d.'bt-. She caniMt bind Iku-- If as surety for her hu.sband. 

544 Earnings of Married Women. 

|„ ail ihe rn.viiue- .,11.1 N, wfoun^llaud everv married weman is now 
entitled to bold as se,>arate propertv. and to dispose r.f as separate propertv. 
the wapes. earnings or monev ac.piired in any employment or trade m which 
she is engaged, or any income from anv literary or artistic -kill '^'"^^^'^^^ 
source of income (in wiiich iier iiu.-'oauu has no i.r'V.nrtary :;::;•;•■..: ; r-.i- 
tirelv free from her liu-band's control and debts. 



545 Wife <; Financial Investments. 

Ill iill llic I'l'iiN iiiccs (f.\ct|it (^iiilx'O ), Xowfoinidhm.i nml Ktigli'.nd, 
any sluirc^i dr stix-k in any IJnnk, Siuck or Loan C'omijaiiy, or any ileboniures 
etandinj; in flic Jiaine of a woman married are deemed her nwn separate 
property, unless otherwise showii ; and ^he ha.-* a rijjht t.) all dividend:^ and 
profits arisinir therefrom, aiid to tran-fer the .-an.- without the eoncurri'tice 
of her lm~i)aiid. tiie saiui' as fli<iiiijh slic were not niarrii'd. 

iiiil if a married woman should inirehase su<'li shans dr stocks with licr 
hushand's money, without his e.msent, llw Ini-hiiiid may proeure an order 
from the eoiirt to have siieh investments and dividends thereof transferred 
to him. 

If, also, a married woman nuide sueli investments with her hushaiui"* 
money, to defraud his ereditnrs, sneh investments may 1m> followed hy the 
creditors and taken to satisfy their claims. 

647 Wife Disposing of Her Real Estate. 

in all l!n> I'l-nviiiiM- ix.-c].! .\ .v:i .'<cuii;i. !'. V.. l-hiiid ainl (,)uchec', she 
may Tir.t only li<ild her own real estate entirely free from her husband's con- 
trol and debts, hut she may dispose of it during' her lifetime without her 
husband's consent or signature, and by will at Ik r deeea.'se. .\ married 
woman may also sell her separate ]iropcrty direct i«i her husband, "r the 
h\isbaiid direct to the wife. witlxMit making' the transfer throu}:h a third 

In Xcwfoundbnid the law is the s;niie in each parricidnr. 

In Xova Scotia tiie wife cnuTiot deed away real estate or dower in real 
estate without her husband joining in the de<>d. Slie may dispose of her 
real estate by will if the husband pives his consent in writinjr. 

In ^lanitoba .she cannot will it away from her children, but may make 
any di-tribution of it anions them she desires, or =(11 it duriiis: her lifetime. 

In Xew Brunswick she can onlv 
husbaiKl"- riLdit of curtesy. 

ell "V will her real estate sul.jeit fo the 

In Trince Ivlward Nhmd she can only make a valid conveyance of 
her leal estate by the husband joinini: in the <leed. and if she has hacl issue 

born ali 

ve t>v him 


curtesy in the lands of w 

cannot deprive him of his life estate as tenant b 

ncli she niav i 

ie p.i'js/.cccil. 

549 Property a Wife Cannot Bind in Mortgage. 

A wife emlorsinir "r siiniin^' note.- wiib Ikt Ini-baiid ..r entcrinir into 
any other contract renders liable whatever pro]>erty she has in pos.session at 
the time, or may acipiire afterwards, except such property as sh(> is "re- 
strained from anticipatincr." Property rPitfrainnl from nnticipnfion usually 
comes to a married woman under the " terms of a will," and while she 
get.s the income frim it, the jirincipal cannot be dealt with by li< r in any 
way. Such restraint must be clearly expressed in the instrument : it will 
not lv> implied by law. .*?iieli property cannot be considered an asset by 
her: that is to s.ay, she cannot mortsraflre. or by ordinary contract bind it, 
nor v.'ill fbe law construe it as an .issei or allow li ;.. ]« >ei/,'d in execution 
or otherwise. 


WuMKN's I'ltnlM.RlY HIOHTS. 


Iti New DiiiiiMvick the Supreme Court of Equity may, by her consent, 
if it k'Ucvi'^ it tor lur iK'netit. pive or.ler t.) bind h-r interest iu any prop- 
erty even tbi>ni;li re^traineil I'mni iinti<'i|)atinf:. 

Newf.MiiMlhin.l allow- .udi pmiMTiy to lM'lial)le for law costs in suits 
liroiiirhi liy lin-Mlf or nrM t'ri.-ii.l on lirr lirbalt'. 

550 Wife's Financiul Liabilities. 

A iiiurriea woman i- liablo !■■ tin- oxtcni ot' hrr pi'ojierty after licr mar- 
riago fur tlie <lebts she coniraeted Ix-for.- inarriaire, and for all eontracts 
(ntered into or wronjrs oomiuitted iK'forc luarriap'. mid all sums recovered 
against her for suehContraets or cost ineurre.l th. n to,- air payable out of 
her separate estate. If she is a trader slie is stilije<a to the bankruptcy or 
insolveii.'v laws the same as a man would be. If she l.-iids money to her 
husband ii bi r,,i,ios< an asset of his, and in case of his insolvency, in most of 
cases, sli<> would nnlv take ber ilivid. nd after otlier ereditors for valuable con- 
sideration had l)cen settled wiili. A tuortsrape on his real estate for money 
loaned him woul.l h..ld. s,, would a promissory noto in tb^ hands of tliird 

552 When Husband Is Liable for Wife's Contracts. 

The lnisban<l is lial)le for the debts of his wife contracted and for all 
contracts entered into and wronL's committed by her before marriiifie, ti> the 
extent of the properly he lia- coiiio in on-c-sion of throiiirli his wife, ex- 
(■ejit in Manitoba, where lier own property only is liable. 

A hii-liand and wife may be sued jointly in res|>ect of any surh debt or 
liabiiitv -ontrarted or iiuMirred by the wife, as mentioned in previous 
paraiirapli, but if the plaintiff fails to establish the busban.r-^ liability in 
respect to ilic proporiv bo may have acquired throuiib hi- wife, the husband 
will obtain jmlirment Cor tlir e.Kt« of defence, whatever may be the re^^iilt of 
the action airninst the wife. If tbo jilaintitf in r'stablishiiiL' ilie 
husband's liabilit\, lie will olitain joint jiidL'ment acraiii'^i the hu-l>and 
]iersonallv. and auainst the wife as to her separate pro|ierfy, and if the 
husband's liability does not extend to the amoinit of the claim or damapeS; 
tlie rciidne will hf nirainst the wife's =epnrate estate. 

553 Wife's Property Not Liable for Family Debts. 

!-'or instance, a wife keepinir boarders and bnyin;; piods on credit for 
the ireneral f.'imilv expense does not render her separate estate liable for the 
debts. The husband and the husband'- j)rop(>rty only arc liable. If the 
merchant wishes to render the wife liable be must tnake the contract with 
her bv bavin? her purchase in her own name, or to cniarantee the pavment. 

.\ married woman, however, encatred in business in ber own name, any 
■roods wliitdi her husband onlers for her and she aeropfs are I'liarireable 
nrrainst her, the husband beintr merely an afrent. 

554 Mortgage and Wife's Property. 

The husband cannot mortsrage any ijoods that belong to the wife, ob- 
tained either bv purchase with her own money, or irifts from other persons. 
'Yho wife need not siim n cbnttel niort.nfnfre unles? =1ie owns part of the 
(roods, and de«ire= to inortcriiL'e them. 





655 Wife's Right of Dower. 

I'Nwr 1- :i litr i-t;iif a v.itV ha., l)_v law (in |iri»vinoor! whi<'Ii 
allow (i<i\vi>r) in the Inmls aeqnin'(i, cir held hy hor huf^I)anil iliiring coverture 
in which she ^la^^ not barred Iter rii/ht to dowor. It. is, of (viiirso, not iivail- 
ahlc until iifnT the hiisband'.s d<'ath. If inarriasji- has U-cn Iff^ully diisolvccl 
till' rii;ht of dower ceases. 

.\ nifp i.s also entitleil lo dower in tlie ei|iiita))lo o^tate* of tlie Inishaiiil 
to which lie wa.s Ix'neficiully entitled ami had in>t i>art(d with in his life 
time. For instance, a lepacv in land dm' but not yet taken prNscssion of, 
is subjivt to dower. 

Instead of having one-third of the real estate of the deceased husband 
»ct apart for the widow, arranireiuent may \to nuide for a yearly -uiu 
e<]uivalent to one-tliird the income from the whole real estate. ___ 

The ripht of dowcr is detomiined by the laws of the Province, or State, 
or country in wliich th(> land is situate, and not by the laws of the ])lace 
where the hiisband and wife may live. For instance, they may livr' in On- 
tario where the laws allow the wifi' a riijht of d.iwcr. but itn' husband may 
invest his money in Afanitoba where dower is not allowed, iience in such 
lands the wife would have no dower. 

.V wife need not lie twenty-one years old t.. bar iiir ilowcr in a uiort- 
^ajre or by sijrninp a deed. 

.\ wife cannot be ciMupellofl to bar her ripht of dowi-r iu iirojicrtv her 
husband is sellintr. Samson /•. Samsiin, 1 Chancery Chambers 205. 

If a wife to bar her dower the purchaser may rescind the con- 
tract, or a Tiortion of the purchase money sufRcient. to satisfy the dower may 
be set aside until the wife's deatli. and the interest therKui paid to the hus- 
band durin<r his life if be .should die l>efore the wife does. 

Tf a wife siirn ?. derd it bars her dower, but a wife b,\rrinp her dower 
in a mnrt(]age only affects her to the extent of tlie riphts of the mnrtqagee. 
and dawer ir dtie if the husband is dead ..u ijir -urplus after payment of 
iuorf.£raL'e. Tt is calculated on the basis of the amount realized frnni the sale 
"f fh.' Inud. If tile land sold f,,r $:^,000, and the niortpape was .$2,000. she 
would be entitled to the income from the wh'de of the -iirpluj, viz., ,$1,000 na 
dower. Other creditors ciiuld not touch it. 

Tn Ontario. Xew Tlrunswick. Xova Scotia and Prince Edward T-land 
her dower is one-third life interest in the real estate. The hu-baud cannot 
deprive her of this riulif duriup liis Ijfo time by sellini or mortea-riuL' t.he 
property he has in his own Province, or in any other Province or Stat« 
which allows dower, unle^^ she bars her dow^r bv siirnimi: a deed or niort- 
pape for such property. 

Widow has no dower in lands in wriich the hu-^baucl had a life interest 
only: neither has she in juirely niininp property, or in lauds clisposeil of by 
till' hiHb.uid while tliey were yet in a state of nature (wild landsV 

If the husband dies possessed of real estate and leaves a will, she can 
either take the portion left to her by the will, or -she can refuse to take under 
the -will and claim her dower. Tf notbinp is stated in the will that the he- 
quest is in lieu of dnvpr. she is entitled to both. 

In Ontario, where a husband jroes awav and is not heard from for .seven 
years, he is premmt>d to tx. dcail, and if the widow wishes to take her dower 



out of hi. r. .il <'^tate, she is entitli-l u> .•laim it. Tho right to claim dower 
«niilil coimiH'in'.' to outlaw at thf cn.l of the Hfvcii years. 

ill .Muiutoba, .MU-rta, Sasliat.'h.waii an.i Nortii-\V.-*t T.rnton.-s, the 
wife lius no <i.)vv.r in the lands of h<r ii.<-ca-<c.i li\i-l>«na. l-ut tlu- Status of 
Ik-voiution of Kstate pivi-a hrr th.- Hanu,' interest in tiie lauds hm ' . the per- 
.-onal property of the hii>l)au.l .lyinfj uiU'stato. (See Laws of Inheritanee), 
In (}ii.Ih'c thi' wif.- ha.i one half the h\isban(l\ iuiniovablea. 
Ill Uritish Coliiinliia, Nrwfouiidlaii.i and Kiigland wife has one-third 
itil*'rc-t as dower, providing dies lefjally entitle.l lo lands without 
havinp at.solufely disposed of theiii by deed or will; an.i a writton a^rre*- 
nient on the jiart of tiie husband not to bar dowir is .•nforeeable. 
587 Oi Jer of Protection for Earnings of Minor Children. 

Aiiv iiiariii'd wuiuuii having .i dtsT.v for alimouy apjamst h-T luisband, 
or being" for any legal euiise separated from him, either throufrh his oni. Ity, 
insanity. iiiipriHoiinient in the Provin.-ial Penitentiary ..r in iraol for a t-riin- 
inal offenoo: or whose husband, t!ir..iij;h habitual drinking;; or profligacy 
negle<-ts or refiis<-s to support her, may obliiin an order of ]iroteetion, en- 
liilinj; iier to the earninp' of biT minor ehildreii, iiiiirely free from the 
debtj) and obligations of her husband and from un.ier his eontnd. 

When the married woman r-si,]es in a town or city where is a 
Stipendiarv or l'..lic( Majristrati. ilu onler would bo obtained from him, 
but when there is no sucli ..tlii-er when' -he resides then the or.ler would lie 
given bv the County .Tiidfre. 

O'der of Protection may also lie pnH-ured for her own earnint's and for 
the piirjiose r.f engaiiiiu; in tradr in ihoso Provinces where such orders are 
668 Civil Relationship Between Husband and Wife. 

'rii.-ci\il nhiti'.iiship- ;iro rhr -;ime Im'wciii Im^liiiud :uid wifo a- lie- 
tween other jier-oiis in community. The one may steal from or defraud the 
other, or be iniiltv of criminal acts toward each other. In nil <'a-e,s the in- 
jured jiartv iias the same redress they would have against other j^rsons for 
similar acts. The husband cannot k'II the wife's projierty or that of the 
children which comes to them personally by gift or otherwise. Husbands 
cannot sell or niortgaee wife's furnitiu-e, silver-ware, or any other s>'i><U or 
property belonging solely to her bv gift or otherwise, unless she signs the 
mortgnjre .ir assi nt~ to tlie sale. 

.\n airreement, or contract entered into by the wife with and for the 
hu.sband throiifrh duress (force) or undue inlluenco may l>e set aside the 
same as concerning other parties, but -he must act jiromptly in rrpudiafing 
it as soon as free from the influence. 

Where a husband, throudi drink, violence, abusive language, o- other 
vi<'ious conduct renders it impossible for tho wife to live with hitn in safety 
and honor she can leave him. and such conduct is sufficient ground to sis- 
tain an action for .alimony. \Vivi-< are foolish to be maltreated by either 
beatinsr or starving by a drunken, wnrtbless. vii'ions or vaiiabond of a hus- 
band when our laws and courts have throw-n around them -ludi ample pro- 
559 Business Relationship Between Husband and Wife. 

If a husband makes imi.rovements on wife's property and she die*. 



mtf:-tut«' lie luifl iiu clujiii uu llif iwtiitf li>r ibi'ir vuliic iinlws iLi^rc wua u 
written ugrifiuout between theni tliat lie was to be paid for siu'li iiuprove- 
menta or U) have uu interest in the proix-rlv to that extent and lice versa if 
the wile uses hi-r money in improving' liii^ibuntl's projiertv under similar 
cireuuiatauees, slie acquire!* no lieu on the proiwrty. 

Also in cases where the hu»bun<l j;ive.s nmuey or Ills earuiuKs to the 
wife and she ileptwits the money in the bank in her own name the money 
be<'oiue8 hers, uuleris then? was an nn(U'rst;indin^' iM'tween them that tlie 
money was- merelv left with her in tnwt. Kvcrvthiup (h-pend.-* on the in- 
tention between the parfiei< as the law will not presume a Int^t where money 
is friven by the hnsbiind lo the wife. 

New Itrutiswick makes an exception and the implication is that all the 
money the husband gives the wife beyond what is necessary for wearimr ap- 
parel and i)er9onal u-' •, belonirs to him still unless there is an undcr-taudinj; 
to the eontniry. Cliiij). 7"^. Sec. J. R.."<., l!t(t.'!. 

Where husband and wife are living' separate, iin<l the husband wishes to 
inort:ra*rf' or sell liis real estate without the wife's sifniatiire, be may obtain 
an order from the court under fnliowin;.' circumstances: (1) If the wife is 
insane and confined in an asylum. (2) If separate from her bushnml under 
Piieli circumstances as disentitle her to alimony. Hut in Imth cases while the 
husbiiiid luiiy sell or mort^aire bis land "freed and di-cliar;red from any 
claim of his wife for dnwer therein." still the court will also jirovide a 
method by which the wife will Ix^ secured the vnhir of her dower. If the 
wife were living separate under eireumstanees win r. li. r conduct disentitle 
her to dower then no provision wnuM 1m> nuide by the cMurt to reserve its 
value to her. 

Wife havini; means and the Inisbniicl none, and beiiiv' an iii\;ilid, she 
would Ik> (V)iiipe!led to Mipply him with the necc"aries of life. 

A hu-band iidvertisinp in a newsjiaper ilmi li.' will not be responsible 
for iroods jiurchasi'd by his wife on his credit alter the date of .such adver- 
tisement (or for her contracts), does not necessarily free from such liability. 
The wife i> presumed to be competent to purchase necessaries for herself ;ind 
family, und if he has been in the habit of so pi:rcba>inj? from mereliunts 
on lier liiHband'< credit, the courts ha\e ruled tliat "notice piven in a uew.s- 
paper not f,) trust his wife (with roo*1s purchased on 'he credit of her hus- 
band) is of no effect in eases where dealers have not had knowledsje of it." 
The husband would have to prove that the merchant bad knowledjre of such 
advertisement i)efore the coods were piindias'il in order to escape pavment. 
It would be much safer, and more proper, in the most of the cases, to send a 
printed tmtice to dealers where the wife would be likely to ask for credit. 

A husband desfrtinii his wife, if he have means or an income, the wife 
may either take an action for " .Alimony" against him; or she may take pro- 
ceeding's liefore a Police .Majristrafe or two .Justices of the reace' under iln" 
"Deserted Wives' Maintenance .\ef," and pro.-iire an order for a n rtiiiti -iim 
per week for support of herself and chiMron. 

For a wife to recover a judpnent for .\limony three things must bo 
proven to the satisfaction of the court: (1) A loeal marriace; (2) the need 
of the w.fe; (.'^) the desertion bv the Imshnnd. ..r \\\^ refp.sHl to scrnnrf her, 
Theref.x- a lawful wife wh.i is in ne"d. not hnvins independent means of 
siipf)ort, and where husband de-^erts her. or refuses to support he,, may 

I.A.NUI.OUU ANU '1'k.NAN'r. 


obtain a -lit-m' from tin- c.iirt for aliiiionv wliich will lix u sum iu |)roi>ur- 
tioji to till' proiMTty uml iin'uiis of tln' liiisliiiinl. 
560 Custody of Children of Separated PurenU. 

1 Ik' cuMmIn <A the viuiiirtr ii winu hii-liaii.l and wife m'purate 
is (iiiinlv in tlic lii-iTttion of the court lutorc ulioui a|)|,''''iiiion muy be 
niuili', haviim rf^uni to tlio welfare of the chililren. After Inuring; the fuels 
of the ease, if the eoiirt or judge in of the oi)inion that either the mother or 
the father wonid 1)0 a more suitable eii.-to<lian of the chihlren the.v «'>ll be 
given to sueh parent, withoni regard to aire or sex. The Ontario utaluto 
savs: " The eourt may make such order as the eonrt or juilj:i sees lit regard 
ing the custody of the infant and the right of access then-to by either par- 
ent, having regard to the welfare of the infant and to the conduct of the 
pa rents, and to the wishes of the mother as well as of the father." 

As a general rule, however, if the wife is deemed a suitable gnanlinn 
sli<' will Im' given the custody of children under seven years of ape. rind the 
hti-ihaiid. if he i- di^Miii d a |)ro]ier giiardinn, those over that age. 

661 Divorce and Deed of Separation. 

In (ana. la, .liv.ircc can only Ih^ |.;ocurc,l fr..m the Dotuinion Senate. 
At IcMst .fi'nu is ricpiiicl ti> 1m' jiaid in with the applicati.m for ilivorce, but 
the e.\|)enses usually go far alxwe that ^uui. There is provision made for 
persons too poor to jiay the costs under what is termed i>nN'e<'dings in forma 
pauperis, hut few persons have ever been willing to admit such poverty. 

In eases where husband and v.ife find it imiwssible to live together, and 
yet a divorce cannot Im' obtained, a ■' Deed of Separation " may be executed 
that will etTectually hind tliem to li\c separate from eacli other, make the 
l>roper division of property, barring the right of dower and the riirht of 
tenant by the curtesy. Of course, neither one can legally uuirry aL'aiii while 
the oilier one is living. If cither one sho-dd marry, he or <\n: a> the ••ase 
niav he, would he liable t., ;i prosecution for bigamy, au.l the wife in sueh 
ille'irid iiiarriage would have no right of dower in sudi real 
propertv. nor a di'^tributive share of his personal estate. 

( iiArri"!: xvtit. 


565 Landlord and Tenant. 

The relation suhsi-tinir between lamllird and tenant is that which 
anbsist.s between the owner of houses and lands and the jierson to whom he 
grants the use nf then for a specified time for a stipulated consideration 
ralle.l rrnt. In law the landlord is cnlle.l the lr^<!nr and the tenant the 
Irxxcp. The same class of persons wlio can i'..ntrart in retMrd to notes nrA 
bills enn contract a.s regards landlord and tenant; that is. tlioso of the full 
age "f twentv-one years and of sonnd mind. 

In this ehiipter the essential provisions of the law of Landlord and 
Tenant, as applicable to all the Provinces and Xewfoundlaml wiii '<«■ i;l^ell, 
and a? the cases where landlord :ui 1 leiian' ai^ liable to di-aL-ree thronffh a 



coutlict of intercct liavc been so often settled by suit there remai" ; scarcely 
iuiv reasonable croind.-i ^ .r a inisconcejition of rights and nblii:aii..a-'. 

566 Lease of Real Properly. 

Lease is the name given to the t'unlraot belWv.'en landli rd and tenant. 
It may be cither verbal, or v^-ritten, or under seal. Oral, verbal and parol 
mean the same thing, viz., by word of aiouth. In this chapter, virbal will 
lie t injiloyed, a-s it is in oonimim use. 

It must 1h' rememlxTed that a lease i^^ the agrrrmivt, and not tlie [lajier 
on wliicli it IS written. A lease, if written, .should 1m' under seal -that is 
by l)t{il. Whiro a seal is mt attiiehed the writing amounts to no more 
than an oral or verbal lease. 

The lea,-e sho\iId state all the ciinditions and airreenients, for vi'rbal 
jiromises do not avail inucli in law where there is a written in: runient. 
The tenant might sue the landlord mi a -^ejiarate find distinct ve -bal .;gree- 
ment that the house sliouM have thing-: done by the landlord iu con- 
sideration of the tenancy being cre;iie.| by tin written lease, but it slinuld 1k» 
!n the lea-e to make it un(]uestionable. 

568 Terms of Lease. 

The usual term- of lease are i \) week: i 2 ) month; C-U (|uarter-. (4) 
year; ( r, ) at will; and ( ti ) for life. 

I- In ;ill ihi- )'r'i\inces a verlial lease (a demise") for one year and 
under is valid. 

Bu* an arirrnnmi u, demi-e, w matffT for \\'<w >hort a time, i- /"i 
agreement for an intere-t in 'nil-, hence, must, be in writing t.-> be binding, 
iiccrding to the Statute ef i-'raud-. Cavalero v. Pujret. 4 F. &• F. ."i.T" : 

.\n .agreement to secure a lea-e for .niiotlier parly afTe<>ts land^, hence, 
comes within the Statute and mu<t lie in writing'. Hor.^ev v. Oraliam, I..R. 
5, (".P. 0. 

2. \ deiiMse (lease) for a term not exceeding thn-r i/rar.t from the 
making tlierenf. when completi d bv iiitry. mid lU't be in writing, as the 
Statute applies to leases exceedintr three venrs. lint where there is no 
entry, <>r no payt];ent of rent, it '.mounts tn a mere acrrcment and then must 
be in writing. 

Put A verbal lease, or a writing not imder seal, ro lease preraisefl for 
three years from a fnfurc time, thus making the time more thiin three venrs 
from date of making, the lease is void against tliinl par'ies, 

\ verbal n(jrrrmcnf for a If xr for a term not excee(iimr three year! 
is not binding if he docs not enter upon the premises, as it is an aerivment 
for an interest in lands, heiire. luust Ix in wririm,'. Kank if r'j>)ier r'anaila 
v. Tannnnt (IsClO). ift r.f'.R. 1-2:?. 

3. .\ lease fif a f' rtn exce,>ding three veafs and up to seven must be in 
writimr and utider sen',, otherwise in Ontario imd New Prnn-wick it would 
bt^ held a "tenancy at will" onlv. In I'.ritish rolumbia, Xova Scotia. Al- 
lierta. Saskatchewan. Yukon and Xortli-We=t Territories-- fhev must be 
registered as well as under seal. 

4. \ 1ense for orer seven years must ;n nil the Prosdnc? be in writinp, 
ui^der seal and recorded. Tf n * registereil n person buying the jiropertv 
without notice of this lease could, by giving --ix months' leiral n"tice, eject 
the tenant. 



In (^i khi:i' li-usfs Ut over one your [»■ r./gi^U'ivd. IIoiuo^ U 
presuuKMl to \)0 frum May to Muy. if rciiUiij; liy the year, ami farm Iraae 
from Octolx^r to October. 

A leane of a house where u.i time id si)crilie'i, is hoM to Ik.' ami ter- 

iiiinatin;:; May 1st each year, where the r.'iU is at s.. imieh i>er year, but a 
inouihly lease where rent is at so much per momli. 

580 When Rent is Payable. 

Ifeiit may \h} jiayable in auv way afrree<l ii|> .ii. either in advance or at 
the end of the term. " It mighl k' a monthly tenancy, and yet the rent ])ay- 
able weekly; or a yearly tenancy, with the rent payable monthly or ipiar- 
terly. Whatever the ajrreemenl may be f.)r payment, the tenant has the 
whole .lay on which the rent falls <lue in which to pay it. and n(j expense 
can be inetirred until the day after the rent is due. 

Kent, like other debts, cannot 1h' Mied or distrained for until it is <lue, 
even thou>:h the tenant may be leaving; the premisea. 

581 Lease by Minors, Idiots, Lunatics, Etc. 

A lea.s<- bv a minor is not absolutely void, but voidable. The lessee 
cannot void it, "but w-heu the minor comes of age he may void it, or ratify it. 

Leases to minors are not absolutely void, but may be voided by the 
minor if it is not ' r nei-essary apartments or lodgings, according to their 
station in life. 

If the rent falls due after they attain their majority and they have not 
repudiated the lea>e. they will be "liable for the rent, no matti" whether it 
wa.s for necessary bvdgings or not. 

In (^iei)(\ "an emancipated minor would 1k' liable on such contracts Vi 
connection with his business. 

Idiots and lunatics in all the Provinces may al-o make lease's that are 
necessary, but cannot be ma<le to take a h.uise that is unnecessary if the land- 
lord wa.s aware of their condition and took a<ivantage of it. 

In :\tanitoba an habitual drun'card cannot make a valid lease. In On_ 
tario aiul the other Provinces if lie were so drunk as not to l)e capable of 
knowing that he was makinir a lease, he ma- void it when he Ix-comes sober, 
or he ni.Hy ratify it and make it binding. 

583 Joint Tenants. 

.loint tenants is ,-iniplv another name for ioint ou-ners of a building 
or other property as defined under "Joint Ownership," which see; and "ten- 
ants in copunon." .ans o^sTiers in common, same as "beirs in common to 
an estate and ai n some respects similar to a j.artnership firm 

For ".Toint i enants" to lease their joint property recpures the consent 
of b,.tb but eitluT one mav. without concurrence of the other, give a legal 
Tv>tice to vacate, mav also distrain for his .share of over.lue rent, or may 
demand a higher rent, or require it to bo paid wwkly or monthly, or in a.1- 
,'an.e; of course, in such case, b.ung required to give the pro,>er legal notice^ 

One joint tenant cannot s.-ll the whole estate without the concurrent* 
of the other joint tenant. Each of the joint tenant, may wdl Ins own interest 
in the estate. Hut a sale by one joint tenant of his interest m the estate 
..„t« a" -nd to the iolnt tenancv. and turns it in'., a "tenancy in common. 


l.ANDJ null AN 11 TKNANT. 

585 Tenancy at Will or Sufferance. 

A tciiiuirs ill >iiirii'ain-<' i^ wln'i'c ciH- (•(iiiics in liv valid Ica^e '>r title 
auil aftt'i'warij wruniit'tiUv (•(intiniic- in [Ki-iscssion without tlif coumiiI or 
liissem i<{ the iFtrsou noxt entitled. 

A iiiurt;;a£"r rciiiaitTiiir in possossion at'tcr a -ale bv the iiiort^raf^ee is 
a teiiaii! at -iitT< ranee. 

.\ ■■leiiaiic'v at will" i< wla rr the Irttiiiir i- t"r ii" i-irlain h ri:i. Iml is to 
continue s*i> lonv' a> Ih.ih parties please, but no longer. 

Wliere ;i jic-r-on I'liters or remain- in po~sessi'>u liy eon-ent of the owner 
of lan.l i: is ;i 'cii;incv at will; also 

Where a ])erson enters iimler an aL'Vcriiirnt to jnireha-e. If 'lie jiiir- 
cha.<H.' il'iis not i;il<i' phu'e and he cMiitinue- in ]ios-i--<ion the linaiiev may be 
determined wiih^'iit noli(e. l><ie \. ( 'hainlnrlaiii. '< M. iV W. It. 

.\ tenant allowed i.j remain in | after his lease has ex]iired 
]uii(linir a lease f^r a further term may b<> tnrneij out without notice. Doe 
V. .'^;enn. t. j Ksp. 717: Simkin v. Askhnr-t. 1 CM. \- R. 2(11. 

\\'!ii'n a verbal h-a-e is for a tmn, \\hii-li tli. Stanile of Frand< requires 
to be in writini:. it bei-omes a tenaiK'v at will. IT'ibbs v. (Ontario, L. i^' D. 
Co., 1« CM. ilt^. 

But in all till' above and -iiiiilar ea<es, iinl<\-s otherwise aizTeeil iiimn, 
a lieiiiaiid of possession must lie inailo before takintr aetion for ejeotment. 
Wri^'htv. rSeard. 1 :'. Ea^t. 210: Ball v. Cnllomore, 2 CM. & K. 120. 

S7 The Landlord's Covenant. 

The only covenant the landlord usually makes and the oidy one found 
in any of the ]irinted forms ti 'w in use is to irive the tenant "ipiiet enjoy- 
ment." If evieted by aiioiher person, v.dio has a prior or liotter claim to the 
property, the tenant may rei^^ver from the lamllord any •!', maizes that he 
may sn-^tain. If the landlord is to make any repairs it niii-i ix:" mentioned 
in the lea-e. 

hi (>iiebee the landloi'd-- implied covenant means somethin;:. see section 
on "iopairs." 

588 The Landlord's Guaranty. 

In all ihe I'rovinee-^, e\ce|it (^Iik bee. if 'he landlerd i- to 1h' helil re- 
spoii-iiile for tlio sanitary condition ef the house there innsf be a sptvial 
sruarantee on his jiarl that those conditions are {tomI. Tlieii. if a lieiisewere 
leased with such distinct assurance on the T'art of the landlord that it was in 
ffood sanitary condition, aiid it -:nbseipient!y turned out tliai the laiicllerd's 
statement was untrue, the tenant cnnld luove out and refn>e to pay rent. 
The landlord would also 1«^ liable in ati ai'tion for ■lainaijes. 

Piiit if nothinir were said al>oiii the sanitary or other cori<litions of the 
lie. 11-1- Ixfore ilie tenant enti r-. he cmld not tlien avuid pavinji rent even 
thoiicrh llie house Were uiHiife to occupy, neither eoidd he recover daniatres 
from the landlord. 

In (^)iiebee the laiidlevd i- lieM liabli' witlh.iit thi- special n=-iirnnce 
of fitne-s. 

590 Lease vs. Mortgage. 

If a valid lease i-; iriven pri'^r !(■ a mer!iraL.'e tlie niorliraL''e will tie( affect 
llie tenant"; rilht--. Tn ease the niortir;)t.'''e takes possession before the 

A llOLSE 1-l.A.Si;. 


IciiM' cx])!!'!-. lie inrn-lv tiikt's the ])lai'o of the hui'll'inl an4 iini^t f^ivc the 
u^iiiil notices to (jiiit. Dae v. Lewis, 1:5 M. & \V. 2-11. 

HiiI if ;i lease is ijiven after a iiMrtpipe is placeil on the proin-rty anil 
rlie niDrtgagee takes po-ssessinn he can disixjssess the te:iaiit withniit notiees, 
aii(l even take \lu' firowin;: ei'.|,~. Keeeh r. Jlall. 1 Don^r. :.'l. 

Of pnnrse. the teiiaiii would ljn\i' a eaii~e of action aizain-i the land- 
lonl, hut a laniilorij wJio had lo^t the j]yo|>erty niider a niortfrap- wouhl not 
\>i- likely I , he in a liiKiiicial |iosiiinii that the tenant eouM recuvfr any 
money fr'>ni him ly way of (laiiiatri-'s. 

592 Tenants' Privileges and Rights. 

The e.xecution of ilie Ica.-e \-esi> the tenant with all the riirliK incident 
TO jio'jsession. lie has ilie exclusive ii-e of the property, and exercises all 
the liiihis of the (AMiei- fi.i- ilie time lieini;, and may even eject the landlord 
slioidd ho trespass. 

He has a rii;ht to a lejxal nntice to (piit from the landlord if his lea^e ia 
for an uncertain time. 

Also to the crops that are on tlu- LTouml if his tenancy is terinjnatod 
linexpci'tedly and not throuirh hi- fault. 

Also to .suhlet the preuii s or a portion of thein to othi rs. unless his 
contract i)rohihit.^ it. 

The tenant, in ca>e <'f tire. i< free from rent, and no proi podinjrs can 
l>e oninrnenced for the recovery ..f any -ncli rent until the premises are 
reliuilf or made fit for the purjxises of the lessoe. 

In (,)iiebeo the law is the same. 

593 Tenants' Liabilities Under the Leaso. 

There is aji ini]di(^d covenant in all leases, verbal or written, that the 
tenant will take reasonable care of the preniises and make all breakagea 
trond. atid deliver the yiroperly up at expiiation of lease in as irnod condi- 
tion, save "ordinary wear an:! tear," a< wh(>n he t.Mik it. Therefore, if the 
tenant dainafres the property the landlonl tn.'iy sue and obtain jndirment. 
lie ha- no lieu, however, m) the tenant"- iroods fi.r the damaire-. and if he 
were to retiiiti any article for s\icli pnrt)o-ie the tenant could recover damaires. 

\W<. if the tenant circulated a false report that ihe pr nii.vs were un- 
sanitary, and llie hindlord thereby -utTereil los- thiviufrh failure to sell or 
lease the prnperlv. the IcimiiI would be liable in an actioTi dainaires, 
providinLT tin- report was jiM-iilvcdy untrui' atid the latidlord could j)rove 
actual lo^s thereby. 

Tn Quel>ec the tenant is dee?iied to ]■<■ liable f^r injuries ami lo^.; to the 
premise- durintr the lease, nnlcs- he can pro\e that he i- without fault; also 
for fire. uide<< he cim iiro\-e lo the oonfrarv. 


595 Form of Short House Lease. 

Zb\e 3^^^^lnl'C mad,- the Counh dav of .\pril, in the year of our Lord 
one ibotisaie! nine hundred and ten, in |Mir>;uancc of the \ct r(>speetinj» 
Short Forms of 1 ea<e-, between .lolin liatten, of the Town of Tliorold, in 
the County of Wellatnl, srcntleman, tierciiiafter called the lessor, of the first 
ymrt, and l.e-lie M.'Mann, ..f the -ame place, mendiant, hereinafter ■•■died 
the lessee, "f llie -second |)art. 


J.A.N iJl.(Jlil) AM) lE^AM. 

\\ rrNttestTii, tliat iu coudidfruliou ut tin- rc-ui.i, oviuai'ts and a^ree- 
iiiouts liereiuafter respectively reserved uud euutaiiUMi uu the part uf the 
said lessee, Lis executors, adiiiiiii:^trator», and assij^ns, to be re^juvlively 
paid, oWrved aud perfuriiied, the said le>si>r hath demised and leased, auil 
by these I'rcsents djtli demise and lease unto the said lessee, his exei'iilDr:-, 
and admini.-tratnis, all tluit certain tenement or bu>iness preiui^'s known 
aud deMTiljcd :i.-, the llaiten Jiloek. .No. iL't) Front Street, in the Town of 
Thordd, I'cuinty of Weliand. I'roviiice nf Ontario, including the lia.--emeut 
or cellar, yard and outhouse, tofrether with all other rif^hts aud appurten- 
ances thereto iM'longinjz, or usually known a- ]iart or parcel tliereof, or as 
beliintrinj: thereto; 'lo iiavi-; and to uui.d the said premises for anci during 
the torm <if three years, t.> 1m' computed from the fiurtli day of A])ril. II'IO, 
and ^ om thenceforth utxt ensuing: and fidly to \w completed and ended. 

' lEi.DiNC. and paying therefiu- yearly, and every year duriuji the said 
term i eby grant^'d luito the saii' lessor, his heirs, execnturs. administra- 
tors, or a imis, the sum of thrtv hundred dollars in lawful money of 
Canada, to Im' jiaid in even quarterly in.-tahneuN ..n the fi.jl.iwing days 
aud tiiiie<, that is to say: on the fourth days -if .Inly, Oct.iher, January 
and .\])ril in each and e\-ery year during the continuance of tlie said term, 
without any dedueti'ins. defalcation, i.v abatement what-sover, the first of 
such payments to become due and bo made on the f'Mir'', day of July next, 
and the said lessee, bis heirs, executors, administrators and assigns, doth 
covenant, jiroinise and agree to, and with the said lessor, his heirs, executors, 
admini^trafor-i er assign.s, in manner following, that is to say: 

That he, the said le,<'spe. his executors, administrators, and assigns shall 
and will well and truly pay or pause to be paid to the said lessor, his heirs, 
executors, administrators or assigns, the said yearly rent hereby rese-ved 
at the time and iu the manner heroinW-fore ap]iointed for payment; 

And to pay taxes, except for local improvement ; 

.\iid to rej)air. ri'asonable wear atid fear and dainige by fire, lightning 
and tempest only excepted; 

.Vnd to keop up fences ; 

And that the said lesser may enter and view -tafi> ef repair, and that the 
said lessee will repair, nccnrdinsr t<i notice in writing, reasdnable wear and 
tear pnd damage by fire, lightning and tempest excopted. 

And will not assign or stiblet ivitbout leave; 

.And that he will leave the preiuises in good repair, reasonable wear and 
tear :i .! dnmaL'e by fire, lijrbttiiiig and teiti|M\st onlv r-cepfed; 

Provided tb:!; the said lessee niay remove bis fixtures. 

Provided that in the event of fire. liLditninir or temyiest, rent sball cea-se 
until the premises are rebuilt or made fit f..r the purposes of the le*«pe. 

Proviso for ri'-entr\- by tile le^sur i.n lein-payment of -ent, or non- 
performance of eovenants. 

The saiil le-<or covnant- with the said le-«ce for quiet i^njovment. 

Tn" witnf'^s whfreof the said parties hereto have hereunto set their 
hands and seals. 

Signed, sealed and delivered. ^ 

in the presence of r 

Adam Yot-no. ' 

Lkstif. MrMANV, 
ToTiN Battel. ^ 

lAli.M 1.1 A>l. 


Th,. most uf Ih.' Ontari.. l.hiuk ..f k-a»f. routa.u a cvcnnnt bv 
whi.-h tlu- U-uant waivi.. hU riiiht to iIm' statutory ...N.-mi.t.on> m oa^o t he 
la.Hllonl .liMrains fur anvai- nf rent, whi.h has WtM. mnitto.! tn,n> tl,. 
almvc I'linii. 
596 Lease Under the Torrens System. 

l.,,. kMM- ..i hu.l 1..) . MM, ,v.,ain. ^ra.-. t ,.■ .,w„-r ^ hall 
execute a h-asc in the t-nu ,.rovi,U-.l in th- A.t whi,-h w. 1 !.■ c-nt.n.l ,m 
the crrtificate of tith' when presented at the Lan.! 1 ith- (Hli.^e. 

Fur h.ases lui.l.r this system thrre e-.pi' - air i.. hr .xm.te,! like me 

1 \ i;.. heing reui-ierea as owner, Mthjeet, h-.-ever. ... -u.-li .unrt-agos 
..,hl .nr.iMil.ranees as are notiHe.l by nieiuoran.luni uu.irnvnitrn i ..r en.l if-e.! 

hereon) of that liieee of lull.! ' .h-.-rilH. ii). jmrt ..1 Serii.m. . . . . .. 

Townshii, of ratine (or a- the ,-a-e ,nay U^. .•.mtau.m^ 

aeres, more or h>ss (here state rid.t, of way pnvih.::vs it any. m- 

ten.l..,! to 1k" eonveve,! alon^^ with the laml. an.l if th,' la.,,1 aealt with eon- 
tains inel.hle.l in '.h ..riirinal .srrani or .-ertitieate ot t;!le ..,• .aM- refer 
thereto for ,leseri,,u..„ an 1 ,lia,i.n-a,n. otl.Twi^e ..t t.Tih the l.-,n.lan(« 
„f metes and lK.una-)..l.lHTel,yh.a^e to C. 1».. -f ( h-i-e m-ev. .h.^cnpuon). 
.11 Ihr-ai.l lainl. I, ■ l,,- heLl bv lu.n. th- -aid ( '. 1 >.. a-t.-na.,t, l-r .a- >l>ae,. 
,,f . from ( IhTo -laie the dalr ami i.Tni-). at the yearly nntal 

„f '" dollars i.aval.l- i lien iii-ert \i-nn- of pavnant of niii), -ub.jeet 

,,, the eovenants and powers imi.lied ( aUo .-, for-l, any ~iHv,al .-.venants 
. •• modili<'ation <>( innilied covenant-). 

1 (• 1, |i„-,rt ,l.-eription). .lo herebv a.'eepl till- lea-o .d til.- ahovo 
dcMTibed lan.l, to 1..- held bv me a- tenant, and -ub.jeel to the ron.lilion-. 
restrielion- and naiit- above -i! forth. 

Datod thi- 'lav ..f 10. . 

Siuned bv abov.. A. 1!.. a- | Si-ttalnn ,.f I..-.,,- , A. U. and < . I'., a- li --> ' • ■ vet, 

i„ the i-rosenee of ' (N.Soal.) 

(Here insert niemovaTiduit. of mort-a-es and enrtunbrane. -. If anv.^ 
When a lease is -nrtvtnlefvd it Ita- - -nrrendeivd ' . ndMi-ed ,,., tl. 

-sipHMl" bv the h's.v and "a J.ted " bv the h.s-.,r. and botm, ,„.,,.erlv 

attested is lir.tndit to the ..fh-e wh.Te tho r'' ■'• "rt"'"'' '■''■'"•'1^ ''"' *'^'-' "* 

its siirremh f .ti the certltb-ate of title. 

597 Form of Farm Lease. 

r-hia •?n^.•ntn•■C. mn.i.. (in dnplir.-itPt thp fourth day of .tan-iary. in the yf>ar of 
m/r I orl on' tlinus/uai nine hnncli-.l an.l ten. ^^ .•eKMANc: u, im: Act bispe.tino 
Sm.HTKon-.isoKlaASKs: frnvinrp of . m-rrhaiK. h.Te- 

inaft^r'Iliea Im^s.ov of tt. ' par, : an.l .1. C. of . tea-.tnafter cat.... the 

'"T^TM-irrhat ir'onsi.i..ra..ion of .h. rent., eovenants an: agreements l,e,-ein. 
aft.r v, .'Vve.1 '.".1 rnmaine.l on the part of .1,. Lessee. h,s ex.Mu.ors. a.taii.o .tn.tors 

'^"'' :;^*^.,'".."sr"Unrd:^;;'is:?r:i,:^t:;::;;i'^an.. ..v ...... p,.es,.n,s .,.. ........ an. 

'-^'u.t;:::\ 'o;T;..roM;n:;i'^a:;r!:;^';;'::.'r:;u,a"^ ^;:n^;;n., ,,... . ... 

'," in the I'ouni of , r„i.taininK Ih.. ii(lin..asur. 


1 ANM olil) AND TKNAX T. 

nun' acres, be the sanii' niort- or Uss. and b< Imk lotiipos^ 1 i IH'srrihp by 

KivlnK numbir of lot. conrcsslon. I'ic.) 

To HAVK Axi> To iioi.i) ibo anld dfnilsi^d prmilHrs for and dnrlnf; the term of 
years, to lie ronipnti'd from the day of . one thousand 

nine hundred and , and from thenroforth noxt ensninK, and to be fully completod 

and ended. 

Yiii.i>iN(; AM) iMYivc; therefor yearly and every year durinR the said term hereby 
granted unto the said l,e?sor, his heirs, ex.entor.-i. adiiiiiiisii.ntors or asslsn.'^. tlie t:iim 
of Pollara. ^Itlmut any deduction, defalealioii. or abuteinent whatsoever; to 

be paynbh" on llie follo-vint; days and times, that is t.i say; on the fourth day of 
October and April of each and every year durInK iln' continuance of the said term. 
The first of sueh payments to become due and made on the fourth day of October next. 

The said Lcs.aee Covenant «ith the .-iald Lessor ■i\ ,.a> rent; 

.\nd to pay taxes except for local Iniprovetnenis: 

And to repair reasonable wear ar.d tear, and dr.nir.Re by fire. lifthtninR and 
tempest only excepted; 

And to keep up fences: 

And not to etit down timber; 

And that the said Lessor may <iitcr anil view state of repair, and <he said 
I-eBsee will n' accordinR to notite iii writinK. reasonable wear and tear, and 
damap ■ bv Tre. liKiuninR and tempest only exe-pted. 

And •.viii not assign or sublet without leave; 

Aiiil will not lai-ry on any busines.s that shall he deemid a niiisaiKe on the sjud 

And that he will have the premises In pood repair, reasonable wear and tfar 
and daniaRe by fire. liKhtninR and tempest only excepted; 

riKivmni that the Lessee may remove his fixtures. 

I'kiimdup that in the event of fire, lightning or tempest, rent shall cease until the 
premises are rebuilt. 

TiiK .sAii) hereby covenant and aRrei- with the said Lessor that in ron- 
Blderatioti of the premises and of the leasinR and lettins by tlic !<ald Lessor to the 
said Lessee of the lands and i)reniis<'j above named for the term hereby treated (and 
It is upon that express understaiidinK that these presents are entered into) that not- 
withslandinf? anythinR contained in section thirty or any other section of Chapter 
one hniuiicd and seventy of the Uevised Statutes of Ontarii). IS'.i:. or any amendment 
or aiiiendniciit.s thereto, that none of tlie goods or chattels of the said Le.sgee at any 
time during ihe (onlinuance of the lerjn lierehy created, on the said demi.sed premises, 
shall be exempt from levy by dlstr<>ss for rent in arrears by said Lr>s.see as piovided 
for by said sect inn or sections, or any amendment oi- iimendments theri'o. of said 
Act above named, am! that upon any claim being made for such exemption bv said 
Lessee or on distrrs.^ being made by said Lessor this Covenant and Agreement may 
be iileaded as an eslopiiel a-ainst said Lessee in any action brought to test the 
right to the levying upon any su( h goods as are named a.s exempted in said section or 
sections, or any amendme;;i or amendments thereto. Said Lessee waiving as I.. 
hereby all and every liei;e:it that could or might l^ave accrued to under ami bv vlriue 
of the said section or sections of said Act, or any amendment or amendments thereto 
but for the above Covenant. 

And the said Lessee doth hereby for himself, his executors, administrators and 
assigns, further Covenant and agree that tice said Lessor heirs, executors admiuis- 
tnitors and assigns, in manner following, that is to say; That the said LeWe will 
diring tl,.- .said tirm, culiivale. till, manure and employ such parts of the said 
premises as are now or shall hereafter be brmight under cult ivat inn in a good Inisbaud- 
like and proper manner, and will in like nuinnt r crop the same in a nguiar ret.ntion 
of crops .so n.s not to impove.ish. depreciate or injure the soil, and at the .nd of said 
teriii leave the saul land so manured as aforesaid. And will during the continuance of 
said term keep down all noxious weeds and grasses, and wPl i)ull up or otherwise 
clestrc.y all do( ks. re.l roots, wild mustard, wild oats, twitch grass, or Canada thistles 
Which shall grow upon the said premises, and will not sow or permit to be sown any 
grain containing any seed of any noxious weed., „r grasses; or do.ks. red roots wild 
mustard, wild oais. twitch grass or Canada thi.siies. an<l will not suffer or permit any 
foul weeds or to go to seed on the said premises. And will spend, use or 
employ in a proper husband like manner all the straw and manure v.h!. I, shall grow 
arise, renew or be made th.-reupon. and will not remove or i-ermil to be moved from 
I he sa d premises nny straw of any kind, manure, wood or stone, and v ill .arefullr 
stack he straw in the last year of said term, and will each and every year of said 
term, turn all he maniir. ih,.reon Into a t.ile. s,, that it may ihoroughlv h.^at j-ed 

rot. so as to kill and <lestr y any foul s :< ■, :.i. ', .,:,>• i„. ti, i, i n -,.., ,. 

and not before spread the same on til"' la' 



And win in t ai h and every year of said term, iiiitkc naked siinimir fallow of or 
rut In some hoe erop nt least aerea of said premises, and will ploiiRh, hoe 

and otherwise rulllvate the same in a thoro\i>;h. farm-like manner so as to kill and 
destroy all noxious weeds and Brasses wliii li may grow thcnon. 

And will in each and every year of said term seed down with good timothy and 
(lover seed, in a proper manner at least arres of said premises, and will, at 
thu e.Npiratlon of said terra, lerve at least a( res thereof in Brass. 

And will ean'fully protect and preserve all orehard, fruit and shade and orna- 
mental tree:< on said premises from waste, injury or deslrnetlon and will (artfully 
prune and care for all such trees as often as they require It, and will not suiter or 
I>ernilt any horses, cattle or sheep to have access to the orchard on said premises. 
And will not allov the manure to he placed or lie against the said liuildit:);' on said 
premises. And will allow any incoming tenant or pun haser to pkmgh the haid lands 
after harvest in the last year of said teim. and to liavi' stabling for one tiam and 
bedroom for one man. and reasonable priviliges and rights of way to do said ploughing. 

Provided also, that it is hereby expressly iif;rec(l and understood by the parties 
hereto for themselves, their respective heirs, executors, administrators and assigns, 
that if the term hereby granted or any of the goods or chattels of the said Lessee 
shall be at any time during said term seized or taken in execution, or attadiment by 
any credilor of the said Lessee . or If the said Lessee shall make any Chattel 
Mortgage or Hill of Sale of any of hi.s crops or other goods and chattels, or any 
assignment for the bent lit of (nditors. or becoming bankrupt and insolveni. shall take 
the benefU of atiy A(t. that may be in force for bankrupt and insolvent debtors, or 
shall attempt to abandon said pnnilses, or to sell and dispo.-ie of his farm stock and 
implements, so that there would not. in the event of such sale or dispo.sal. be a sufB- 
elent distress on said premises for the then accruing rent, of which the said Lessor 
shall lie sole judge, then in eveiy such case, the then current and next ensuing 
half year's rent and the taxes for the then current year (to be reckoned upon the 
rate of the prc'vicius year, in case rent shall not have been fixed for the current year) 
shall immediately be ■ome due and payable and thc> term hereby granted shall be at 
the option of the said Lessor immediately become forfeited, void and determined, 
and in every of the above cases sue h taxes or accrued portion thereof be recoverable 
by said Lessor in the same manner as the rent hereby reserved. And also in c a'ic> of 
removal by the Lessee of his goods and (battels in whole or substantial part thereof 
from off the said premises, the said Lessor may follow and distrain the sume for 
thirty days in ihe> same manner as is provided for by law in eases of fraudulent or 
clandestine removal. 

Proviso for re-entry by the said I.' ssor r.n nonpayme^nt of rent or non-perform- 
ance of covenants. 

The said Lessor Covenants with the said Lessee for quiet enjoyment. 

I.N WiTM ss WrifTHfoF the said parties hereunto have set their hands and seals. 

Signed, sealed .ind delivered 
In the presence of 
K. T. 




E. T.. 

(if the 


In tin 

A. n 

C, li. 

• of 

.TY OK York, \ 
To wit: ( make oath and say: 

1. That I was personally present, and did see> the wiihin Instrument and Dii|ill- 
rati- theri'of duly signed, pedaled and execeited by A. B. and C. 1)., the 

2. That the said iMsirument and Deiplicalo was executed at the 
.■!. That I know the said parties. 
4. Ttiai I am a subse libing witness to the said Instrument and Diiplie ate. 

parties thereto. 

( Signature". > 

Sworn before me> v.t the of . 

in the County of I 

this fourth day of .laniiary i 

In the year of our Lord 1910. ' 

F. G.. (I e OHiHii.v.sioHe r for tnkinij afjtdavils, rtc. 

598 Farm Lease. 

Ill the jiliovc Ica.sp it will lip luitifcel the tenant bars lii- ri-lit to the 
siattitorv I'Xfiiiption-', which will bind him if ho .'■•ijm it. In tin' absence of 
an critrc-on (ujircmrnl , if a lease of farm or jrarden terniinat(''3 otlicnvise 
•lian by the (li ath or b:inl;rnptcy of the landlord, or bv mntnal a-ireemcnt, 
iie tenant in jrivinii up po^.'session on his eiwn account iimst leave the prrow- 


iv.s cr"ps as \rcn. JBiit if tlie len«p were of sm nncerta 


111 eliir:iiion aiiil 

I \ \ 111 I .i.-i) \ \ 11 n \ A\ r. 

"Ill Jinv tiiiiil lil (ill- n iiiiii; u h ruiiiiat' - K!u\iir,-ii ■jiv, tin a in im-i' iii'- 
Iciiiint liii- ilii' li';;;il ri.!!:lii ii> liarvr-t ihc i-i'i'iis iiln-iulv nhwh. Ihii crDps 
bi>\vu iil'li r a liiial iinlicc tn ()iiit hml liccii nrchi'<l, or -own wlien tlu'v 
wcnild iioi ri]K'n Ix't'on- tlic cxiiiratinu of the lease, the liMiaiit wmiiil nut have 
rijjiit tit harvest and take away. IT. h-iucver. the lanill<>i-<l a.;rfee> to allow a 
tenant to remain after liis |ea-r ex)iires and on the stren;rth of that iilti c 
iiient [lilts in a er ip he will Im- allowed to reap it. 

A ern|t of wheat trowing at the liiiie of exeentin;: the lease slion'd Im- 
rt' crved, othi rwi-e tlir !• n.ini wmdil he entitled to it if it lK'lonu:ed to the 

Also in cax- Mi |i(i-.iii .iieupyiiif; a hoi;-e and hn a- in-nlhly tenant. and 
plants, sav, a crop of veijetahles, before he has any notice froni tlu' landlord 
to vaeate. lie will he entitled to ihe crop and may either -ell it, (.r re' .n 
it, and will Ix' entitled to •:.> iijion the ]iremi-e- to remove them when they 
im.tiiro. Campliell r I'.axter, 15 (".!'. I:.'; .Xel-.n v C'ook. U' I'.S., R. -'2. 

599 Farm on Shares. 

\\li.,i'\<r il;, .ii;i-eciiitiu may he will h'lld. and care should he taken 
that every detail shonlil 1k> clearly understoo.l as to divi-ion of erojis from 

year to year, disjiositioii of straw and manure, n-e of lirew 1 and timber, 

ft!'. I'or iustanee, whatever ili\i-i"ii of crops is aj^recd ii|ion will continue 
throii;ili the term of the teiiaiiey, so that if the owiu'r tiiids the seed and 
takes a speeitidl share it remains the same thioii<;h ra'di year, althoii^di 
part of the l.'ind. and jieihap- the larucf |iin-t. iniL;h! \<r a liay i-rMO. wiiirh did 
not iieeil -eed after tin- tir-t yeai'. 

A |.i'r-.i)i wcrkiiiir a t'afiii on -iiarc- and li.i\ iiiL: ilie e\el,isivc possession 
li'coines a Irimnf ami .-uiijeci lo tlir laws (.f Landlord :iiid Tenant, and 
(iititled to -ix months' notice to (|iiit. -ami- a- other yearly ti-nani-. llui if 
he Were to work it on shares, each party fiirni-hiiiir a jiart of the seed an! 
dividini; the jirotit-, both parties thereby Ikmiilt rr/y/ri//// in'/o//. ihriT 
is no Iraxe, and the owner, in case the laborer or tenant had a;;reecl to pa\ a 
1-1 v';iii! ;i!iii.Mii' in ir.oiicv. imii'! not di-irain for it. 

601 Repairs During Term of Lease. 

hlxci-pt in (^nebe ■ the relali 'U-hip hitween landlord and iinaiil doe- 
iii'l hind eiihiT one to make repair-, li i:- entirely a niallcr of thin 'inriif 
li the landlord ha- not aureed to make re]>air- he cannot ln' coinpcllrd to 
do .so ilnriiiir the iiiin of the ]i':\-r. The tenant cannot make the ri-paiis. no 
matter how iiiucli tin y air iionii-.l. and decluct the eo-t fr nn the rcnl ; and 

if he . |o\i-- oiil in i-on-ri|ll(llc.- of the bad roll lilloii ,,f llir pfrliii-r- lie tlnisl 

>till pay reii! iiniil hi- ha r evpirr-. r\rn ilionuli ilir pi'rmi-i - an- m ..i. 
nn-anitary coiii'iiii..!!. Iirni-on r. Nation (l^ili'i. -Jl I'. (MI. .">7. 

It must be remembered that evervlhiufr depends upon the airreenieii!. 
If there is nothing in the lea-e (or barirain I bindinj^ , itln r of the jiarties to 
make rejiairs, then neither jiarty can eoni]iel the other to make them. 

The followiiifr sub-sections cover the poin'< w'lrre mi-iinderslaiidinir is 
most likely t.) occur between landloi-d an I trniiiii: 

1. Reiiairs neee--ilate(l by natural dcrav thr landlord i- "'-uiiposeil'' to 
make, also to kee]) in re]>air the nwif, outside do,,i-, and liH'k-; but all lireak- 
aL'cs are to be made ^ihmI 1i\ the tenant. It', however, there i- no ai.Treincni. 
either \-erbal or written, for ilie landlord i,, |;e,'p the premi-e- in a lit and 



llUpfl" COlKI 

liiiuu f.,r hubitati..n, ur in a Ii.mI h.v nm-liiimi. ih.- (.•naut caim.,t 

limiuli ti"' Ik'II'-l- U'comi's 

ilitl such rojiiurs to U- iiunU' fviii i 

iblr, «>r uiisnitiilili" fur list 

ill the tfiuuii'M biisiufrtr*. 

CulcUrk r. CJir.licrs 

I O.IJ.l>. S.W; llrogil .. i:..l>ii"s 1^ Tii.u-*., LK. 4:}'.». U<w<: 

t'roiit il""!' or a jilalf {;la>s \viii< 

low win broki'ii and tlu' tenant wsintci a 


new one 

lie woul.l have 1o put il lli llllll^' 

If if ilnri" is no 

covenant in iho 

lease for the landl"!'! l" rciiair 

Neillur coiiiil llie tenant b<> eonipelle.l to 

!-]>hu-»' tlieiii if n It 111' 
in<l liini to make reiiaiv 

l.n.k.n ilifou-h his ne-ii-eiiee miles, the a.ureenient 

If tiie tenant moves out lH> ilie exjiiratir 

>f the lease he will still Ik- ivniired to pay reli 

t, unles, the lamih'iM "ii'-'iitts 


liv lakiim the key, or nuts the place to an 

It her. 

If in' the lease, either verbal or written, the lamllonl a^ree- t,. iiiak. 

pairs or eertain repair-, ami siibsetp 


tenant niav hrui'' an ai 


1\ refuses or nej; 

kvt-s to ilo so, the 

tion for breach of eonirac 

t, or be tnav n<itify the 


lloril of the reiiairs 

to Ix- maile. ami that in 

his ilefault in imikinf; them 

within il (criain ti'.m 

(frive <latrt, he will ilo so. or canst 

them to Ik- done. 

He can thm luak.' the repairs. 

boubl thr' fail to <lo so within the 

1 ill the leiticc. ami either sm 

time miliiei 

ilednet it fpiiu the n m. 
Tint the tenant ra 

the landlord for the anmnnt or 

. Mehr. r. McXab. .1. nm. K. (...:,. make the ivp.iir- and ih-n d. duct the amount 

t roni ilic rent unit 

A mere iiromisc 
H sniiie consideration c 

ss he has previously •;iven this noti-e and ilemand 
to makerepairs is not bindimr on ilie 1 
an be shiwn to snpnoiM the luvmi-e. 


iij-lancc. to ]iay a li 
iiav in ad\aiice, or 

iiilier rent than it 
to take a m\v 

be without the repairs, or to 
longer term. etc.. neitla r 

would a mere 

pr'llnl^e on tin i 

lir ..f ill.' trniiiit hind liim. 

\u lii-c;u 

h of 

II c ivtnaiit to rep 

1 lariv llic riiiht 

if aiiiiiii I'oi- ilie damap's sustaim 

ur jrivc- the injured | 

'ive the t'liant a ri 

d. but iloes not 

;ht to 

he landlord to evict i! 

vacate, imr the lamllord to 

:ilino-t iinltitied tin- liabilit 
injury llic 1« iiaiii. ' r 1 


■ lilt- 

y on MIC I 

1- t;i!iLil\'. iii;r 

.|,.| ,,f the l:indl. rd l"oi- acliial 
Mi-':iin |lir"ii::li :i ln'cii'di of th 

ant to make -pecial rejiair 

(oiierallv tile hindl-i-d i~ u '' 



■r ibiinaiit s than tin c 

-1 .:| i;i:ikni'. 


11. iW- I 

111' .Irfect- al 

d li 

I- tile am II''!- 

hin-eir all.l dednel llle allLUllt trolll ilie relH. I II 

it\- aiier line iim m 


lieM I,, \«- liable 
The ten. lilt 

t I make Ilie re'iair- 

I- -eellis t. 

tenant -: onlv 

I. If till 

tlien f.illiii'j- in nrn-ai-s o 
Topnir-. r."i 
inir i'l ai'i'.ar- 

lent tn repair i- ■-. ;i.| <'U!.i payiiii-n 


t .if rc'ii. 

rent woiil.l r. lie\e the lamllor 

tr>iii inaKiut: 


It w I l'|. 11. Il -.1 CtllK 

rent v,.iii 

Jil'hninK tlieii the fact .d' tlic tenant fa 

.1 iiMt relieve the lamller.l fnan his eevcTiant t.. 

If th 

■n: ef 

I'elll I- ■ I'll 

lili'.iiiil ell the lamllenl iiiakuiL;- cerlaii 

lirs till 11 i';e li nam i- relie\ 



ire ceiiiidetod a- fev airrcciii 

1 1 fr.'iii |.a\ 

ll i.f I'ellt iinfil tlic rep 

r.. Tnless tlie ll a-e rcipun 

- tile teiianl to re]iair lie wi 




7. Written lenses 

.11. t.. llie prnp»M-I\'. Wlllcll 

thos(> of his a^rriii' 

lint e.ii 

11 n..t be liable 
lli, ..wii act- '.r 


V c .nlaiii a )iv.i\ i- 

that the teiiatii Tiall reiiair. 

1 tear, acci 

•'reasomiMe wear am 
eopted." Smdi exceptions i 

dents b 

lii:litnin;r an 

A u 


I'.sl ex- 

nelmle tlie n 

iiewiiiir ami rc]>ainnir oi piuuiiioo 



fiiriim't's Hiul pip*'!*, li'ukv ro.'i, aiul Iuukcu dtjor I'X'k-. which ilif iriiaut 
cannot lio forced to make. 

Till' iiii'chaiiic who iloi's tlic repairing must, of course, it) all cases look 
fxr his \>ay to tlii \<nr\\ who ciiuaireil liini. 

The above provi-o saves the tenant from the oblii;atiiin ti* rcbiiilil in 
ca-e the biiiliiiiii; was destroveil or partially ilestroveil bv tire not eaii-^ed 
by the tenant's ncj;li^eiieo. l-'nr (.•ueliec -ice foll"\viiiir 

602 Repairs Under Quebec Leases. 

Ill t^iu'Uec tile nlatiuii lu-iuceii liiipiiMi ,i .uim ii u:ait iiiiii-i= lii.ii'i'ially 
frt'ni that <>( the c.ihi-r I'ruviiicis. 'I'liere is an implied warranty on the p.irt 
of the landlord that there are u,) faults or ilefects ou the i>rcmises thai will 
prevent cir iliminisb their use by thi' tenant. <'.C. Itll I. 

It there should lie a defect utd;nown to the landlord, he cannot be niado 
to pay daiiiai;i's further than an eipiitable rednetioii >>( the rent, or a can- 
cellation of the lease. 

The lanillord is reipiired Ik make all neces^ai-v leiniis dining; I lie term 
of the lease. imle>s the lease ]>rovides otherwise. 

Lan<llords are under obliiiation to inspect their <>v, u property to ascer- 
tain the necessity fur repairs they are required tn iiuiki'. and are not exc'npt 
from liability for accidents for want of notice on the jiart of the tenant that 
such repairs are neeessarv. C'.C. li'i]:!. 'rnidcaii r. \reldriiiii, > U de J.. 

The landlord is liable in daina'.'es for acciih'ius ;iiid injurie.-- to wife 
and children of tenant if caused liy defects in the Iiiiiidinu;. The teiuint 
cannot, however, remain (juief alxnit (h-fects until rent is due and then 
complain of ilamai^es caused by lau'llord's nc-i;leet a^ ground for noii-|'a.- 
nient of rent. 

If the landlord neirlects to make re|)airs stipiihued iu the leasi', or 
wlii(di he is roiupellablo b\' hiu ' . make, the tenaiii tiiav, bv siiioniarv pro- 
ceedings : 

1. I'.illier I'ciiiijui jiuii lo iiKi.vf ilu'iii; nr, 

-. To obtain permission to make the same at the exix-nse of the land- 
lord ; or. 

'\. in defaidt of makiii;: -ncli renairs t i rescind the l(>ase : or. 


ibli:ration> imiiosed bv 

1. To recover damaffes for fh,. violation 
or arisini; from the lease. 

i'he tenant is recpiired to make irooil all breakairi-s <-auscd by liim or 
his airents and to leave the premist^ in as good a condition as he foinid 
them, ordinary wear ami tear excepted. 
603 Frozen V/atcr Pipes. 

it tile base piovidis liiai ilic tenant shall make all repairs, then in that 
case the tenant would lie liable for the repairs to frozen water ])ipes. But 
if there i- no written agreement or lease then the question of liability for 
such repairs will depend entirely upm which party was "responsible for 
the damages" occurring, ff the freezinsr mid Imrsting of the pipes was 
caused by the improper construction of the house, or by the negligence on 
the part of the landbud, or bis .igrnt. anrl not due to any act or neirlect on 
the part of the ten.nnt, then t!ie landlord will l>e Habb' for the cost --f -•"-- 
pairs. Hut if the freeziiu' of the idjies was eiiiisefl bv inirlieence of ; he 





u naut, I'jcu L... ami not th- luudlor.l, will !..■ liable for liu- repair.. Tlu^ 
I.l.lir. however, must look t„ tl.e party who hired hnu for the ot 
lii- bill. 
005 Tenant and Taxes. , 

lu all ordinary writt.-u lea.e, the landlord n.u^t pay the taxes, imle». 
an cxpres-i proviso is niatU- to the eontrary. • , r . .,,,1 

If the tenant Is not as^^esmd his goods cannot be seued for ta.xes and 
h,.4.oul.l i>oi pavliie,,., l\.r if a tenant ••voluntarily ' pays taxes which he i=^ 
not obliged lu pay, he cannot deduct the unu.unt from the rent, llcrrmg 
,. Wilson. 4 O.K., (J(t7; MacAnany r. 1 .ekell, •_:. I .< -U. 4^'- 

But if ilie tenant is assessed and bis uan>e on il.e eolleeior s roll, his 
..oo<ls are liable and nniy k- seized ( altbontih the a«r.en,ent n.ay l)0 that 
'the landlord is to pav lb., taxe-). in which ease ho shoidd pay the taxes 
l>efore seizure and then .lemand the amount from the landlord, or he may 
les-allv deduct it from the rent. , , n i 

if a tenant ajirees to ].av taxe- and -ioe, not do so. the landlord may 
sue for the amount, au.l if he vvish.-s to do so be is entitled a. the same 
time to obtain an order from the Court to evi.-t the temnu tor „„n-perforni- 

ance of a^'reemcut. , , 

If the landlord a;rrees to pav water rates and does noi dr s >. atwl lUt 

;, aunt IS compelle.1 to pay tliem, he can deduct the amount from the rent 
\ eov,-nant in a base to pay taxes does not include local improvement 

taxes unless that is >i.ecially stated in the lease. Tins .bu-, not apply to 

.'round rent, whore the tenant owns the buildiiifr, as: 

"" In Ontario a lease for seven years or over, when th- land only U.loi.fjs 

to the lessor, and made under the .Vet n'speetinac Short l'..rms ot Leases, 

containinK the covenant to pay taxes an,l omitiin- the words -exeept tor 

local improvemen' ." s'hall be deemed ;, ...v.n.nt bv the lessee to pav local 

imiu'oveinent taxi . 

It woiibl be the same in all the i'rovimes whei 

I,, lid and the bnildin- rue property of tb.' lessee. 

GOG TenaJit's Fixtures. 

'riure are •■linaiil's tixmres."" •■landlord's tixiure.. 
in„l "iinmovable iixtiires." but a reasonable rejiard to the 
each i.artieiilar ease, eoupbd with a -ii-- "t natural jn 
deU'rmine the individual risjhts involved. 

The re;rulatioiw are the same in this respect in all th. 
law is brietfv stated in the Ontario Statute, wbieb n'ad^: 

•'Tbe lessee may, on or prior to the expiraii"ii ..f tb 
.•arrv awav all fixtures, fittiufrs. macliinery or ntb,_r • ,•, 

,,nuiises, which are in the nature of trad,. ..r t.nant . fixtures, or which 
were hrou£jht upon the premis..s by tb- l.-see. Tbttjie .shall uiake c-.o.! 
anv .lamases to ihr premises -ntis-d bv Midi romovnl. Ml the 1 rovnice^ 

havi. like jirovisi^m-. , . . , . . k ,. 

1 Tenant"- ilNtur-.. Mm>t b.- ^..metliinp of a! eliaraoter. .\n}- 
thin.' that is atbxed to the freebobl so that it cannot 1h> separate.! with.>nr 
doin'ir serious damage to th.- freeh.d.l a part of it. 

o. .Vnythinsr that is sunk into the pr.mnd. a-- well, trees, lnuMiii!."<^'^t 
the same as the soil itsi-ii^ ai-i tinivror.- n part e.t i;; ■ 

iiilv iifo'itiil riiit is 

'■tia.l.' tixtiircs, 
circumstances in 

,ic-, will aUvnvs 

f..\ IIU'I'S. 


ti-fiii. fi'in.ivi' 
ariicl-s uiioii 




'■- J 

stone or 


i''K. arc 


1 AMM I ii;l' \ '' 1' I 1 >AN I . 

Imbol.l. Iliii ltiii|M>i;irv l.iiil.liiij:- |)Iiut<1 .ii -Ii'IH' Ih.uI.I.ts or p«.«is or 

l-liilc, lire ••ttnaiii'- lixiiiri-," im<l mii.v 1k' ri'Uiov.'.l witl t injury t« ilif 

siiil. hiiicr n-nijiiii tlic iin-jM rtv ni tlif tt'iiiiiit. 

:t. Tin- inarliimrv ..f n ititimituftorv is a Ini.lf ti\turt", un<l ran Ik- n- 
niovfil. I'lniiMiiarv |.ariitii>ii-, r..nniir^. -hf|vin)j. eti-., pliiecfl in tlic hnild- 
lui; \>y il.r t.nant. w.-uLl Im' ira.l.' tixtnr.-. an>l f..iil.l !«■ rfni«>v<Ml; liiit 
un<l winil.iw-.. liki'wJM' pi nnant iii partiti 'll^. loiilH n<>\ \»' rcin<ivi-il. »* tbi-v 
iK'futiii a pari of liif iniii«liui: pnipiT. 

I'., tlcli-rniinc in all ra-i - what iirr ••lixliirt >." i- .'n.' o( ihr most .lilli- 
fiilt (piolion-^ in <Hiiiii.cii<'ii uiih lli.' law ■•»' landlonl iin.i tenant. M"'"h 
iloix-mN ..II the aLM-iMiufni. -..infiliin;- ..n the iiMtiiii' ami Itnuth of tin tcnan"y, 
ai, '•(• kiiiil of ln!sin<-s rarricd on l;y ilir tenant .m lln' pr«'ini<|.:<, so that 
what .null rcfrtaincirciiiii-taii.c- i'l- ntnov..! a- Ixiiiu' ti'iiant'^ fiytiiic*, 
woiiM. .litTfnnt <.irfiinisianccs Ik- a i-riininal act to !rni(.\o iliciiv. 
For in-ianiT. if a niiani <li:i; a will aii.l put a pitnip in it and n-rd ihr 
-aiiK" f..r a f«-w yiaiv. lu' ••.•iild not ilii'ii, win n in.viiiir .mt. lakr awa.v the 
pump or till up tlic well without iK-iiuiiinu' liahlf in an ni-tion f >r daniaiir" 
as "commillin'r wa-ii'." iinlr»- h.' hn.l that n;rn'i'iii<'iit with tin- laii.ll'.id. 
Hut if till' tfuaiii wiTc onfiapvl in a lui-inf-. that n'Miiifcl tlii' well an I 
pump to couilnct if. they would llii'n iKfoinc a part of tin- niachini'ry an.l 
Ik- "trade tixnires." When haviinr the premises he rould remove the piiin).. 
and t.> -ave him-elf from liahility f..r ac.-i.lents. e.mld fill up the well. Th. 
preeediii..' illii-irali>ns will 1k' siitlii-ieiil t.> ennhle any jMr-.m to 1k' rea^.n- 
ahly eeriain nhai w..mM in ca.'li e.i-c he a '•tenant's tixture" an.l capable of 

Whore til. If i' .l.iMlii :i- ii. will ilicr a certain tixtnr.' -lioiiM l.r fi^iarili'd 
as a teiianl"< fixture or 1k' hoM a- part of the freehold, tin- prr-umptiMn is 
always in favor of the freeli.ild. 

Tt is an axiom in law "that the cNpvp— i.m of "tie thiiiir is an oinissi..n 
of all the ri-t," ami for thi- reason if anything i- nienii.ino.l in the lea-e as 
a tenant's fixture . "'h<r tliinu-. tli'iiifih of a kindre.l nature. wouM ]»■ sup- 
posed t> Ik" omitliil iiiii nthmallv, an.l therefore niiiiiin ;i ).;iit ..t' iIk free- 

A 1. iiaiit claiiiiiiii;- aiivihini;' a^ a tiytiirc iimst riMnove lli.' artirl.' 
promptly ..r make it kn.iwn that he rlainit^ it. ..tlnrwi^e lie wniv.- hi- riirht 
to it. 

Tile l;i\\ ill (^)ucl«'.- is the -aiile fnr thi- S.'':i"li. 

607 Tenant Movinfr Out. 

.\ tenant can move out ..f premi-e- any tiiii.- he de-^irc- to do so hcf ire 
the t. nancy expires, and if thcr.' is n.. r. rit .liic the hinill.>r.l cannot -tnji 
tile lint if there is any rent .liic the hnuil.'nl can prevent the removal 
of the iir-oils (except the exemiitiiiis ) until thi' arreor- of rent are |iai.l. 

Hilt a tenant iiiovin;; "Ui h.-foro the exiiiraii"ii ■•! hi- 1. ■:!-.■ i- ^till liahlc 
l'"r ilic -tiuiilaled rent until the h-a-e exiiirc-. nnle-s; 

!. 'I'll.' Ian. 11. "I'll accept- ih. prinii-.--. ilm- n l.'^jini; him; .ir, 

2. I'nh'ss atii'tlier tenant, acceptahle to the laihlliTil, .liter-, and the 
landlonl releases the fir-t tfiiant. 


ihi'i'i. i- noihiiiL' i'-i 'he !.;'-.' fi.rhi'Minir th.' i''!Uoit i . -nl.l.' 

preini-es. |ie iii:n' I'cni them to an"tiier iiersoii, hut he will remain liatili t.. 

l\ KHII'll.lllM. I 1- >A.S 1. 



ilic laii.lli>rd for llic rent, so iiiii't i' 

illcct ilif ^tipiilatcil relit from 

luni and uot iriHt liim l<> pu.v 


all the covciiuntd in 


till' ifosc M Ik- iiiu-i 

thi' laii.l!"r,| .liriH't. 11<' i^ al"'* l'"''''' <''"" 
lif mu-i liiM.l ilu> »ub-ti'nuiii to the aamo 

III surli caM-* ui 
to sub-lft, flic laiiillop' ill Ih' coinii 

forl>i.l<liii« the tenant 

i-llci t.. eillii r iir,.'|.t ihf ii.'W leiKlIlt, or 

ill re iliero \» notliinj: m ihr l-'a^f 

til rci'i'Mi 

i\'fini-^i' .11 

1 frc'i' till' ti'iiai.l. 

COa New Tenancy by Implication. 


Iciraiu'V t"f line nr mure 

yi'arn (ix|iire> liy liip-e d 

notice, anil llie tenant niiiains in po*tM'ss 

ion. withi.nt any m'w a^reciiieul 

Uinj; made, imyinjr llie saim 
eaiion o 

will hnlil p'oil. Any time a 
it tin- n iriiliir six mo 

I'Ul, it iH'eoincs "a yiarl; 

Iv leuaiiey" I'v im|>li- 

f law, ami the pre:«nm].tton i^ that the terms ot tlie ti.rmer lea 

fterwards that either party wi^ilies to terininat 


i-i iintiee won 

I.I I 

M' riiniiri 

1. * The s;uni' wiiulil be 

ilv or weeklv teiiaiu 

I rue for (piarnrly, montli 

A "tenancy hy implication i* o 
])tanee of rent, and -uch iniiilieatioii can only 

rdinarilv implii-l l>y the payment unil 

the other of the p«rtie:< intero.^ted givinjr 

lie preveiiieil liy one 
tisfiu'tory jiriHif that it was j 

or n eeivei 
111 .V lenii. 

1 hv mi-take, or iii. 

h. r c'n 


liti'Mi or a'ireemeiit than a 

A- tenancy hy inii>lica'' 
!„■ evident. Hyatt 

is a (ini-tion ot tai 

•I. lllnl ll't 

if taw. the 

t.r :.. inu-t 
In (,)i 

the ex])iralion of his ji' 
the lessor, a tacit renew 

CritHihs. 172. U. ".d 

i ( :i o iKiiii rini;iin- m |' 

,--i--inii more than 

witiioiit any oji 

-ition or 

han oisrht days after 
the iiart f 

llotllM. I ti 

al of the lease takes place f-r iiuoilirr vrar. ov ollur 

tenn |oi- w li 

li-ll -llrll li ;i-o ".is MUHIi 

it h— lliaii a yijr. 

609 Overholding Tenant. 


.1 .1 'rlialil 1-iliiniliiii: 

ill 1-' 

itliT 111- lea'?o 

,1 ,.( il-ilf eoli-titute a new 

tenancv or lund eilher pa 

riv to 

eoiisiiil to a iiiiv li rm. 

lirre IlUlsf hi 

rent pn 

(I, or -oiiii 

thinir else done 

bv ^^\ 

iiih a 111 \\ 

iiiiaiiry is itiiiilii 

tiinn actually oe. 
1 ■ 


Wllli'll 1 

,\. ..r till' t. 
- not r.llli 

h.iiii 1- on 
d rent. \<\ 

Iv liaMr to |.av t' 

!l |ol' "U 

111. I lie. Ml 

pation. in sneli ea-i- mio o iiaii 

and will he tiahle lo ]iav mhIv (< 

vacatin,;:, which aniount ui 

ajJPS for rclaiiiiiiir po--rs-ii.n alti r in- ioa-o 

of ovrrhiildimi the landlord i-amiot di-traiii 

ill,, loiianl iiiav move oiii at any liiiir uillioui ii 'M. 

Ill \l|l to I 

lie li 

11 1„. tiNi.l liv llir colli-!, a'l'l I 

1 ,.,-;!,'v r, 

I'trr 111- loa-o v\\< 

And dnrin;: this time 

tiir ihe 11-1111 

I rent, as tl 

lere I- 

no tenancv 


hnt hi 

can stie tor u-i 

aiiil oecii)) 

iitioii atiil rceovir ine'rr 

tion what would he 
hv sueh overbold iii'j; he iiiav in 





) if hi^ sutTored actual loss 

iviT llama;;!' 

IT) ca-e a tiiian 

ition 1 

la- cxi'in 

t wroiiLrtiiMv rriiiaiii- m p 
I. I itlii V l,v till' n-nii- ot' ilic li 

--i-^iou afii r hi- ri-ht of ne- 
,.;• afioi' a h'i;al ii nice 

to (pii 

f. the landlor.l lias at lea-t the o.itloti of tlin 

i.|. |..inr-r' 

1. It. 

:•! li 

iiiav either al'I 

Iv to the diiil'je of ihr Coniitv (■■iiin toi' an onl.T 

to eviet liliii im 

,!,.,• the -Overholdintr T.iiaiH- An ; it uives |ii.tire 


costs too mil 
•2. II. 

•h: or. 

1 1 1 a v 

hriiiL; an aelion ot I'jeetmiiit liv an orlinarv 

wiit ot sinii- 




a veai'iv 

ii'liant. Ill' 'II 

av aftiT ih'inanil and iioiiiv in \vriliii:r t< 



deliver uji |n-K-^i -n of the preiiiisf-, Uoubli- tbe rate of rem so loiij; a- iln- 
t.iiiiiit Milii\vl'i;llv retain^ jiosscssinn nf thmi. ami eolloot tlio sanio by suit 
(R.S.O., v.. I. 111.. Cha].. :i4-2. Sw. l'<i). 

This last .»<cti.iu (No. :;) «•!!! liol.l pM,J in all the I'p.vinc's wIi.ti- 
tli.> Kiitrli-b .•..iiiiiH>ii law i)rovails, ami doubtless in N'ewfoumlland a1*o. 

610 Notice Claiming Double Rent. 

T.. \V. Wi.NiKith, Si. ( ailiarint-. t>iii. 

I bcribv '/we yi>u nutiec that if vmi d<i n..t deliver ii)i |)o-es- 
sioii of llie' and ]ireniisrs situate Xo. 10 Queen Street, in 
the eity of St. Catharine-, on tbe first day of 'iine next, ai-eor.l- 
ini: to iny notice to .piit, <lated tbe 2i'>tb day <•( April, 1 >ball elaiiu 
from you double ibe yearly value of tbe premises for .so loiijr as 
yi»u keep p((s«t.<-i<.n of tbem after tbe exjiirati .n of ibc said notiee. 
tieeordinir to tbi' statute in that ease provided. 

Dateil ilie I'ntb day ..f May. I'.'Kt. 
Witness: .Iamks Smitif, 

.?. S\iNi»i's. ( LaniHoifh. 

611 Quebec's Three Day Notice to Tenant. 

(Quebec ha? a snnunary way of dealing' with a tenant who do«*s not paj 
bis rent, that is effeetivi> and t'.iir. When rent i- .liU' and iin]>aid. the lan<! 
lonl may jrive the tenant not le^^s than three ly.s' notice to vaente the prem- 
ises, and if lie moves o\it within that time tbe overdr<> rent is remitte.l him. 

If, after i( ivinj: this notice, he n-main- in possessioTi without ]iayinij .be 

rent, be loses his exemptions. 

Or the landlord may take tli, ordinary eourse of law, or by summary 
proeeediinrs provided by tbe Code of Civil Proe< dtire. an<1 eject the tenant. 

612 Re-entry by Landlord. 

Due ot ilje u.-ua! •ihmx i-.. " ..i' a lease is liu»t the lamllord shall have 
the richl to re-enter and re-jKis^ess the premises on nnu-)»ujiiiiu( of rent or 
nou-p( rfo!-iiiance of invfiinnls. The non-payment of the rent <>r the breach 
of other eoveiiant- does not caiieej the lease, bue uiereiy irives the lumllord 
the riiilit of re-"iitry. I!ui tbi- riiibt is imi i nforei-able until tbe landlord 
has ^iven the tenant a notiee >|«e''it"yiui; the particular lireacli eomplained 
of, and if the breaedi in capable of remedy re(|uirin>r the tenant to remedy 
the breach. Then if the temint does not. within a reasonable tiiiie, nv within 
the time named in tlu' n^'tice (whicii must alio 1m' n'a?onal>le), perform tb<' 
covenant, (he riirht of re-entry may 1m^ enforced. 

l-lven th'i; the court will alway- relieve a^aiu' i'orfeiture \ibere no 
.substantial injury lias n-^ulted. or where tbe injury or damajre. if any. can 
lie made :;o,i<l. sfi a lai\dl ird cannot succeed in ejectin<r a teiiatit simply bo- 
canse reiii liti- fallen in arrears if tbe tenant pays the sum in arrears. 
614 Increasing the Rent 

'I'lii- laiidhpid cannot raise the rent merely by jiivinu the tenant a <vrit- 
ten notice that ai sneli a time the rent will 1k> increased: such notici- amounts 
to notbinfr. Tin- am-'unf of the rent ]iayab!e is a material jiari of fl,e con- 
tract and the lamlloid cannot raise the reiii or chanpe the a'jrec . 'iit iji ai\y 
other W.1V without the con-ent of the tenant, anv more than the tenant can 

!n\vi r the rent wilhi.ll! tlie hnnll.ird's cen~(Ilt. 



h liiis Imtii licl.l lliiii .\. 1. .Ill imn-fint'iit tV.r a new lease upuii dith r>nl 
lenii> noi am.-mitini; i.- an aeiiial demise will imt Ix- siilHeient. witliout a 
iK.tiee t.i .piit M lieteniiiiif a jirevious ti'iianey. .Icliu v. ,I.-nkin«. 1 ("r. iV M. 
L'2T: Jones r. Heviidils. 12 15. 500. 

The onlv wa'v a laihllonl oan legallv iuerease the reut «lule a teuanl 
i- ill possession, and who will not aK'ree to an advance, is to h nniiia(<- the 
liiiiiiirii, lienee: . 

1. '{"lie ii'itii-e Miii-i lie to niialv; that is, order the tinaiii oiii. thus 
Sliding the tenanev. Then, after this is done, he may give tlie notiee for 
an advance in reii't. or tlic tw.> notices may he jriven at the same tune. 
M.parn r. Belhnan, 4 Kx. 1). 201 C.A. 

The two notice^ eould als.. be joined by iuhlma at the end uf the -notiee 
u> vacate" a .-lan^e lik.^ the follnwin?: ••An! I hereby fnrther give yon 
ii..lieo that shoiihl von retain ,,f>ssession of ilir i>rrmise* aft.T t!ie dav hetore 
mentioned the annual i or monthly) rental nt the (ircmwe- lu.w h.'hl hy y,.,, 

from me will hi' $ . fayahle (state how).'' 

If the tenant then remains in possessi.m after hw leasi- expirc-s he 
thereby taeitlv airree- to j.av ;e hiirlier rent and will 1h' bound to do so. 

2". Also where a lea^e has exi.iied and the tenant remains in possession 
without a new airreement. thns beeoming a "tenant at will." the landlord 
niav iK'fore receivinir anv rent, give notiee of raising the rent, and the 
tenant in that ease nmst" either accept the t.-nii- and pay hiirher r<'n1 or 
move out. In this ease the tenant is not entitled to a notice t.. vacate, lie- 
caiise his legal right to occupy the jiremises has already expired. :ind lie lias 
not as yet ae.inired a new tl'nancy by implici'tion. In (}uv\wr the notice 
mn^t 1m' given within the eight days' limit. 

\ notice of raisins: the rent for a future tenancy given previous to. or 
iipr.n the dav of expirv of a lease, need not. of course, lie flccompanic.l bv 
a notice to vacate. If the tenant then remains in ix.ssession he is b-ntid 
to pay the price asked. 

615 Notice to Quit. 

1 W li, n piopertv is lea.sed for a definite time, the lease expires at 
that dal<'. and n<itlier "pnily need cive the other notice to terminate it or to 
vacate. Thi' tenant may then go .>ut. or the landlor.l may lea^e the pro- 
perl v to another party. 

' If a new affreetnen!. either verbal or written, i-; made for a lurtlicr 
Mated tierio,!. then no notice v.ill Ix" needed at the end of such new term. 

•J. But in ca-es where this fii-t or a sulw,.<inent jierio.l has lieen jiassed 
without ami neir aqrenncnt Udng made, and the tenant, instea.l of moving 
out. -imjdv remains in possession, paying the same rent whi<di 1- accepted 
bv the landlord, then a n<'w tenancy has been created hy •' implication of 
law." Then after such weeklv or monthly or quarterly or yearly tenancy 
ha= Wen ,.reate.l a notice to vacate becomes essential before either on<> can 
terminate it without the consent .>f the other. 

3. The notice to vacate should l>e clear and distinct with no conditions 
or provisos in it. If any conditions are desired to l«e stated tlu'v may lie 
given in a separate letter, which may accompany the lotice. but the notice 
itself inu«t not contain anv conditions. 

A verbal notice would be legal, but it is Wtter to be in writing, either 



I A \l>l.l>l;ll AM> IK.NANT. 

si> iin ordiiiarv Kllir <>\- a t'urmitl |iriii(ril m- wriilin ii'iiic,'. luiiiil'''! t.. i\\v 
other purtv i>r »fUt l>v mail. 

I. If ihcrc is Hi) aj;rcc'iiici»t as lo lln' time wliPU iiotici ta i|iiii iiiii-i i>- 
Ijivi'ii, llifii tlif sluliihin/ noliif i> rfi|iiir('ii, hii; it" \\\vvv i- an aj:ii-('iii' iii, 
that, i)f coiirs*'. will linhl. It' thi' ii^n-i'iiicnt suys, "thiriy (hiy-," "r "thriu 

iiiiiiithi*," that iiii-aiw " thirty liav- " uv " thriM ntlis '" Ufinc ilic ihUf •»f 

the icniiiiiatioii .if the li'a^f; ami if tin- aurciiiriii i< iliai ihr iiuticc imiy 
be jiivfii '"at any tiiiit-" wiihoiii r<'f;ai-i! to llic (hitc wlirn tlir monilily ur 
«|nartcrly or yearly tenancy wi-nhi end. iIk u ilie party iriviiij; stieh notice, 
whatever it may U'. is releaseil from i;ivin;r 'he "staliit"ry iioiice." 

The .stalntory notice-', excpt for .\'o\:i S:-oiia and New liruiiswick, are 
a^ follows : 

1. A yearly tenancy. >ix (de;ir cahiidar month-, and not a day less. 

•2. A <|narierly tenam-y, iliree (dear calendar mi'iitlis, and not a day 

."•. .\ monthly tenancy, one clear caleii iar nioiiih, ,ind n^; ,i day h -s. 

\. .\ \\-eekly leiiancv, oMi" ch'Mr week's notice, and not a (hiy le»s. 

."•. .\ tenancy at will, no time. 

,\ tenancy "from year to year. >o Innir a- l>'ih -iiall )de;i<e." may Ikj 
terminated at the einl of tir-i visir liy i;ivin;i si\ month-' notice, iiiit when* 
it reads "one year certain and so on from year to y(ar." it will 1k.> for luo 
vears at li>a-i ami i-annc>i U- lerminateil at end nf tlr-f year, <'Xc(>pi hv 
mntiial consent. 

In N'ova Scotia the yearly tenancy re<|nire- only three months' notice; 
a <|nHrter or month, "iie month'- iiotii-e: and a week, one we<'k's Motice. 

In \ew l!riiti-wick a yearly or six month-' tenancy reipii.cs thri'p 
months' notice, a (|iiarterly >r m"!ithly tenancy one monili. a weekl_\ teininry 
one week. 

ill (JnelM'c a written lea-c terminafes without notice at ex|iiration o,' 
term Hs;rced upon, lint when the Iimsc \< verhal. "r prc-niiied or the term 
uncertain, three month-' notice nni-l h' L'iven if the rent i- pavaMe at t( rnis 
of three or more nioiiths. 

.\ II «tice iif three months i- necc— ar\ t ■ i<rir,ina'c a yearly ha-e. 

Will 11 a writit n lea-c has lieen c'>ntin\!c 1 l.y l-icit renewal tlie notice 
to terminate it niu-t !ii- in wriiinL'. a- -iieh Ic:;-;' i- ii"! deeir.' d a verhal lease. 

Ti. It inii-t 1h' Iniriie in ii'iiid that in all the I'rovinees this notice to ipiit 
(except 1)V sjieeial nirriH-meiit) cannot bi' {riven at random, Imt uin>lbe2iven 
so that the "moii'h," or '"ipiarlcr." or '"-ix month-'." a- the ea -e may Im', 
will expire at the- rlale when the tenancy conimenced. V >r insimice, in ca-»e 
of a iiiontlily o t aiiey whi'-ii expire- .May 1-t. flic notice to ipiii -houM he 
irivcti not l.ii.r tliaii M;ircli ."il-t. in i>rdtr to leave n '' elear ?iionth." April 
Isi would Im' i.'o Itite. KetneniU'r, tof>, tliat a "'jrool lojial n'ltioc" cMnuot Ix- 
{riven two c.r three months ahi'ail of time, but must he pivi-ii Ix-fore tlie enil 
of the month t'l termitiaic with the end of the -nccicdiiiir n.onth. a-^ in 
previous .-^'nteiicc. 'riie -ame caution mii-f he oK-crvc I in respect to a 
cni;irtcrly or yearly t. nam-y. 

1^ The iiotici- to ipiji niii^t Im- retn-ived by the other party within tin- 
iiiiic mentioned, n.ii merely dated within tbi- time, llaniled tc) the jmtsuh 
or an iiiniale of the lionse. ,ir put under the door wouM be a, rvice. 


I.ISIKAIM.M. I "l; l;KN T. 


V. A \;ilitl n..ii<-c I" «|\iii 11 i-iiiiiinit- iln' t.iian.'.v, wlicllicr {^ivcn h\ llif 
liimll >nl nr tlu' tinaiit. And if -uh-.'inii'iiilv wiihdriiwn l.y .■.■iisciit of the 
..ihtT luiriv, siK-li witliiirawal .1<h-s imt irrirr llir ir„<iiiiii. The parties iiiu.y 
(;- .re to 1.' now tciiuucY oti the old tcnii!- or In- acls noitr « iinr tiiinnc.v. 
lint until such iii'w ti-naiicy is crcat.d it is only a •'tPiiaiicy at will" ami iiiav 
Ih tirmiiialcl witlioiit noticf. II"- may also vai-ati- without notice. 

All Inralid notice i.> -inil ilt- imt Imniuiilr a le'iannj frni if vcrWally 
a.r.'|.tc(l l)v the oilier i>any. IIen<-e. if ii yrarly tenant ftiivc sueli invalid 
notice and the laiidinn! did imt aei-ept it in writiiiir an i tl.c t.nant then 
veiiiaiiied in possessiun, the t'liaiit w-iild iiiM Iw liahlc under llie Over- 
linlJinii Tenants' Act, nor to doiiMe rent. 

616 Form cf Notice by Landlord. 

l'!.:i-e i.iki' ii'iicr ill;!! y..n an IhhIpv re<|iiired to surrender 
and deliver lip jHi^session of the lioiis<' and lot known as No. 4 
.lames Street, ill the viUntie of .Merriiton, which yot\ now h<dd 

ot' me; aiiil to w ve therefi I ..II the tir-t day of .Iiine next, 

j.iirsiiant to the provisions of the Siiitiil.' r.'lalin^ t.. the r./: 
an<l duties of landlord ami tenant. 
Dated this i'M\\ day of April, lyi"'. 

Yours iriilv. 

T.' \V.\1 III! WlNIII.S. 


617 FciT' of Notice by Tenart. 

1 her.hy lmiC you that, on the tir-i 
T shall e,iiil iilid deliver U]) possi-ssinn "t thi 

.Iam»>* Smith, 

lay of .lime 
jireinises I 


occupy as teii.nii. l<ii..«n a- h<.u 
ill the villajTc of Merritton. 

Dated this -.'Itth day of Aoril. l!'li> 
To .Iamis Smiiii, 


nil. I I.>i No. 4 .lames Street, 

Yours truly, 
Wm.teii Winteks, 



Notice to Quit Not Acted U'^rr 

ll-i'ii the exiiiration of a vali.l notice to .jiiit (.'iveii hy eillur pari th.' 
tenancy .eases, niul unless a fri>li lenamy !«• afterwards created the lan.JIor.l 
cannot distrain f.T suh-t<|U<'nt rent, n.itwitlHtandinj: the tenant ciiiinues 
i„ jMw^cssion aftir thi- expirali..n "( the n..tice. .fenner /. Clocrtr. 1 V ». &: 
C. 2V\; Williams r. Stiven. !• (}.\''. 14. 

Tn Ontario and all the Provinces wli.'r.' the Enu'lish common law pre- 
vail, if a tenant, aft.r srivinjr n.>ticr of intention to «init the premises. li..hD 
over after the time mentirned in sHch notice withou' the landlord's cn-eiit 
1;,. l.c.-.,nies nil •• . ver!' 'M!n- fli;.l>f ::.:'\ H;a\ l.-- • iect. d. ..r if n yearly 
tenant innv he char'i.d dnnhlc rent t.. 1k^ recoverr.l hv -uit hut not l.y ress. 

620 Distraining for Rent. 

The Coiiimon jrive^ a lan.llord a ri^'ht umler <•< r' in circuuHtanccs, 
to di-train (or rent if the teinnt .loe. not |.ay it when <! . Tn -nch cas.s 
any pcr-on may act n^ th ■ hailiff for th. landlord, whoth ■ .i regular hndifT 
. r n.>t, and in "iich capacity po^scs^-s the same aiitho' .y as the lai 
IKrascssc". hilt no more. 


I.A.Mll.Olil) AM> ih.NAM. 

liistri'ss iiiav 1h' Icvii-d uihIit full>*\viiig couilui.iur.: 

1. lii'Ut !i,:i_v U' (li-traiiifl inr ilu- ilay uthi- ii is due uiiJ ciirued by 
• ii<'iij);itii>u whether payable by the uiuulh, quartpr or year, or as iho cu*- 
iiiav III'; but not until a •U-uiaud has lirst been luadu for payuu-m. 

•-. lii'Ut jiiiyable in mliuiici iiiuy U' .sued tor the day after it is due. 
'I'iir i-iiiiiiiiiin law ;iiv(- ilir liu'it t<> ilisirain for rent in iirnars, but is rent 
aetiialiy in arnitis ai the Ix i;iniiiiif; of ilie lenu befnii' ilu- rent hao been 
earned' If tile agreement i.s fur the rent to be paid in advanee it may U- 
sueti f'lr if not !»■> jiaid, and it also gives a right of re-entry to the landlord, 
but it is (|uesiii.n;ilp|c if a Canadian court woidd su:-tain a diT;trf,>s rent 
the prruii.<es had not yet earned. 

Taking a ])ronii-^ory nnte by a landlord from a tenant f<n- the rent 
will iiii-ipi>ne ihe riiilii <>( distie.-.s until the maturity of ilu- noii , and pmli- 
ably wiiidd <'xtin,i;nisli ilie right aliogeiher. 

An assignee eamiot distrain for rent due Ix-foro the a.--.ign.ueni. 

.V hindlonl eannot li>lrain for rent after he has assigned his interest. 

.V mortgagee eaii di-irain fur arrears of intere-.t on the gnods of the 
m-irtgagor niili/. 

.\ mori;;a,:;e( eaniii-t distrain fnr nnt due ih- tnortgair.u-. I)aui)henais 
•. Clark, :; .Man. h.H. -J-j:,. 

A mortgagee after giving notiee of the uiMrigago to the tenant in i>iH- 
bi'ssion under a lease created prior to ilie lacprtgagc may distrain for rent in 
arrears wliieh mav accrue after >\u-U le-tice. I'ope r. Iliir^s ( 1M",M !•. 11. 
&C. -'!.-.. 

."!. IWicM /'cizurc iiKiij hv iiiaili. Seizure must ur.i in any of il„ ['v'\- 
inces, \n- made JM'f.u-e sunrise, nor after sunset, nor ou Sumlay, nor a legal 
holiday, e.NCept b;. .-rdcr from a court. 

In (Juebec .sei/ure cannot be made on a Sunday, or a imblic holiday, or 
before seven o'cl'x'k in the morning, or afi. r seven o'clcK'k in the evening, 
without leave of the judue or prothonotary. excji! in .-a.^e ,,f fraudulent 
removal or if the gooils are upon the higiiwa\ 

4. Wlirrc iikii/ !;■ intulf. Distrcs- ,,ins, ii,- mudc on the luem- 
ises only, e.\«.e|tt under i-erlain eireunistances. If a tenant is removing his 
goods subJTOt to seizure on the .lay tiuil rent is due and the landlord forbids 
their removal. In' may then seize them on the highway or follow liii'tu for 
;I0 days and seize unless in the meantime the have been hnua fide 
sold for value. 

•Also in case of live sim-k, if the bailiff saw ih.iii \»-\\,iz driv.-n otT the 
premises to escape distres* he dd -eize them off the premises. 

fi.xHls eanufit be seized liifore rent is dlM' evm though 
intending to move out. 

Ill (Jlli'hrr giHHJs of ihc lessee nuiy be seize.! on the preUli-. i,,,, 

light .liivs after rtni.tval. if tln-y have not been /xmn /iilr gold to a third 
party bef .re seizure. 

Th.' lan.llord has a privilege.l right for his rent up.!! the vables .,{ 

the l<'ss.e and if they are rem..v..l ihe n<»\v lan.lloni has no .daini lo them 
to the pr.'judi f t!,o r.„-,,.|. landlord if fol|,,-,v,..i witliin lb,. . i-bi d,vs 

f'.c. n;i'.". 

■"'■ "''"■" '■'.'/''' '_ ■••(,,..;. 1„ ,,,.>-.: Mi ii„. i'n.vnv,., dl-tress 

■ innile at any li'u.- within sjx months after the expiratb.n of the leasp 

till' ti'!Kint !■! 

<ioi)i».s i.iAiii.K r<> ni«Ti!i>-. 



M til.' i.^mmt is »lill in |M.M...sion aii'l lli«- »iill r.'i;mis Li^ title or 
ini.n.i in tho iininisrs. If 1..- Las *.l.i tlu^ pin,.,.iiv lu; .Mim. t .li^train; 
niitlior can the lu-w owner; I'lit it nuiv Ik- ncoven.l !>y Miit. 

^fanihhd allows distress for only three i.ionilH if rentms; l.v month or 
niart.T; or for one vear, if payal.le less freiiueinly than .|iianerly. 

10. When a landlord lias is^ned a dislres's lie |..*<m liis rif,'ht by aban 
d-iiinp it or withdrawinir ii. and eaniiot make a .«eeoud sei/iire ..f tlie same 
'i.,-<U for till' same delil. nnle-'s there has lieen noniu mistake in the first 
"•i/nre; or unless the firM one was willidrawii l,.v rcpiesi <.f the tenant. 

C21 Wl>at Goods Liindlord May Seize. 

A lan.l!oi-.i iii.iv 1. uiilly .iiMrain (ai upon p«>ds and eliaitel.-. 
|.e|..ii);r u> the tenant'; (h) the e.|uiiy whi<li a tenant may have in goods on 
•he i)remi8e.s, as in ease of pxxls ].iir.-',ia<e.l a eonditi.mid sale, (c), 
:1m- pHids also of wife, or children .)r in-ar relatives on 'li, | n niiscs. if 
,iii-h other mar relativ.s live on th<' premises as a mcmb.r >•( the tenants 

(J.M.ds iMirehase,! .,u a lien afifrcrment are liahh' to seizure for rent 
if there is not enough ..ther ^'.).)ds to satisfy the claim, hut the !un<Moid 
must pay the balance of the iuirelia.-'(> price. 

(i.Mids of thinl parties transiently or accidentally left ou the premises, 
or there repair, are n.>t liable to s<'izure. 

(hhmIs of third i)arties .,n the i)remises by con.seut of such parties arc 
liable for seizure if the lamlhird was nolitied tha, they were the property 
of pueh third parties, but. they must 1." releasi.l wh.ii proof of ownetrhip 

is piven. , 

In casi'S where the Imr-baiid rent.* a house, but the hoi;-<h<M -ro.Mls 
belou;,' to the wife, the troo.k an- liable for the rent while they are on the 
l)remr8es. T.ut if they .Ic-i.le to move out before the lea«e expires they can 
do so if flu-tv i- no rent .lue. The !m-b,in.l w.uild be liable for the rent 
until tlH> termination of the lease. 1 : the pxxls of the wife wouhl u..t lie 
liaWe to seizure for the rent, either uniler a landlor.r« warrant 't :in ex- 

/;, Qiirhrr if the lea-e pr.ibibiis sul>-lettin!r the ffoo.l- of Rub-tenant 

vv.iulil U> liable to s«>izure. 

If th ■ le.ise permits siib-lettin!: then the eoods r.; Mi^t.ii:iiits are tiot 
liable further than tliiir iii.l.Lte.ln. ss d ih,- t.iiant. ('.(\ 1 ('•:.' 1. 

Every per3<jn who serves a Distress shall immediately friv.' ih.- i..-i-s,,ii 
whose Cf>ods are - ized a noti.-e of the distress", pivinjt the amount of rent 
distrained f>r, an. I an invent. .ry ..f the articles taken, f.-pether with a copy 
of his ehariics and cost of s.-i/.ure. If the teuant. after receivini: such 
notify, necleet.s f..r five -lays from date ..f seizure to pay the rent or replevy 
the jzoods the landlord is sir l.lvrty to sell the for the lM-.t price he can 
eet for them, and after payment of rent and cost of sale if there is any 
-ur]>1ns it niu^t be pai.l to the tinan*. 

622 Roomers and Lodgers. 

T.r.l{rer- are temporary lessees, and are subject to the same laws and 
have similar pvivileires in respect to the r.i.'uis they occupy as a ropilar 
tenant in all the T'rovin-. s. Their ro-kIs are not liable to seizure for their 
landlord's rent. TJoarler- an' not liable for ilainaces they may ilo t.> tli.> 

AM'Inltl) ■.Ml TKNA.NT. 

|>rfiiiis«'s tliriiiigh ii<Tii!fiit. but tlu-v ;iri' lianli' if iloiii- tLmu^li iie;:li>ifUfC, 
<>r lllali('il>l|^'ly. ilic Miiiir ii« otlirr t<-ii:iiit'- iirt-. 

A vcrliiil (•"iiiliMci (or nii"l\-l'iiriii-lii'i| riiniiis ir* nut biiuling, as i-x- 
rlii-ivr JI11.--.1 Ksii.n i^ Uiirpiiiifil fur. 

I'm \vli( ri' a ciiiiirari i« fcn- l)i.aril an I I'-ilciii;; at a Imariliii.: ln>u->', 
lint ill III! ^[Mritii- i-iniiii, tlir colli raci is valiil. allUi>iii;li uui in writing.'. 
Wri^'ht r. Sliwari. J K. aii<l F... Ti'l. 

Ill cax' a iBianlcr"" ur luiljicr's pnuls arc ilisiiaiiH il fur ri nt clui' liv Jii- 
lainilui-il, lie iiiiisl -1 r\c tlu' -ii|HTiur liiii<llur(l ur baililT, ur otlitr pcr-M-ii 
Itvv-iiir \\u- ilistn-s. with a \\riii:ii '!« claiatiuii thai the li iiaiit liar! iiu ri>;lit 
uf |ir(>|wrly ur l<( mticial iiilcn'^t in tlii' f:uu(l< ur chaitrls ilistraincd, ur 
ilirt at( IK il tu III- (li-traiii)il. and iliat tlu-y an- tin- ]iru|i<r!_v uf. ur in the law- 
ful jiuss'-siun uf, sufh Ituanlcr ur lu'ljrcr. If he «liuiil"l u\vi> t!i«> tenant fur 
Inianl ur uiln rwi-i . lie may stale tlie anii»unt and jiay it f>ver tu llie ^u[h riur 
landlurd ur ilie bailitf, ur enuiitdi uf it * > discbari.'*' tlie bindlurd'- ehiiin. 
if tlie liuarder -liuiild uwe tliat nnieli. 

.\iid siii'b |iayiiieiif niadi' bv ilie iM.arder tu the siijuriur bindlord i- a 
vali'l |iayiiienl un aei-uiint due fruin liiiii |u the leiuini. 

If a buarder tret- in arnars fur l«>ard. ilie iMiardinjr-huu-e !%■ . |.. !■ ..r 
butid kr-eper lia> a lien un the iiairiiafre ini<l jruuds i.f -iieb Ixianb'r and may 
retain tlieiii until the bill i- settled. If the debt remains misetlleil fur tbii'e 

I luiitli- tile jr Is may !«• suld by |iiiblic aiietiun after s-'iviiii; uiii' week's 

iiutiee ill a piiblie iiews|.ii)H'r. In Oiiiariu. by ameiiilnient id" IflO. tlio 
xw-ariiii: apparel <if a -ervaiit ur lalnirer iiiu->t nui 1h' held fur a !.'reat m' sum 
ilij'ii ^I'l. and when that i- paid i-r any le^- siini that i- due, ihc <'l"!hinfr 
nm-t be i;iven up. nu matter Imw iniieli niuiv may U' uwini;. 

If iinfiirni-lied. or even fiirni-bed. ruunis are rented fur a detinitn 
teriii. il lH<'unie- a teiiaiiey. Shuiild -ii<di tenants fall in arrears for rr-nt 
their tuud>« are lialde to di-tre-s fur arrear- tIk- same as in ease of utlirr 
tenants, mid sliuiibl tlu-y iindi'rtake tu mm«» unt without payinjr the rent, 
thi' riMiiiis may be bn-ked and their arxxh retaineil until settlemint. or adver- 
tisiil and s.,ld liiidfv bindlurd'- warrant. 

Hut if thev are merely "ruumers" and ni^t tenants the b. "jliuusf 

k<eper lias a lien iipuii 'heir <ru<"l- {'if the aee.iinmudatiuii -,], but 

siieb L'u .(1- eannut be -uld withoit waiting tlie three munihr' 1 iilxivp. 

623 Landlord's Priority for Rent. 

Wlieif there are uiher eri'diturs. the land'unl ean uv ,■. priur 

tu them, fur one year's rent, .\fler that he must lake bis shire r; i,..)ly with 
the re»t. In case <>( an in-uUen' b --ee. «ee '• I'riurity uf f lainis." 

(iiMid- sei/ed under exfeiifiuii and in the cits|iMl\- uf a -lierifT ur bailifT 
cannot l>p distrained; but sneh cixids cannot \h- auld ur reiiiuved by said 
utTicer without the landluril's preference claim of une year's rent beinp jiriv 
vided fur. ur s.i ei" ' ' ' 'iiit fur a les.; piriud as is due vp to 

the time of «ei/nrr-. 

The landi'Til must i.'i\e - b 'icer a vritten s- iteinent of the t<rms of 
the lease and the atnuunt in arrears. If the ff(Mi(is wero subl f'nI paid into 
cuurt licforo the landluril had notice of the seizure, such written sinietnent 
■' .. i' ' '., '.'iven I" '}:•• <1 rk ..f tb' eunrt it-- I •" •■< tbi- biiilitT. 

624 I.Tdlord's Bnilifr Net a Tresppsscr 

('ulb'ctinir munoy nntler a lanillurd'- warrant duos nut belunir to a 
bailitr« utllcial duties ur the ufticial 'liities ,if anv .-tlier court oflficinl. A 

l.M M I'l IONS 1 KlIM 

IM Kl.»«. 


•i luiiil iiiay roijit auil prcviiit ilw I'litniurc ni' a li.^ililf ni- iiii:i r | who 
iiiiiv (•(line wiili a Iaiiilliiril'> warrant. 

A bailit}' wiili siii txi« iiii"ii Iroui a «Hiiiri iinifii n.«i lie rcsi^tr-d, hiit ii 
liailiiT witli a laiiill<>r<r> warniiit iia- im ini>rr aiillj<>rit,\ tli;iii iIk' l:in<ii>>ni 
\n\-. It i" !*iiiijilv l)riiif l'..r<"i' agaiii.-t lirutf t"'>r<*<'. A lainllcirtlV liailitT. Low- 
cver, i.-* not a tn-!»|tusM r anil viiilt-ncc dare not U' ns«-J in resisting his on- 
'ranee anil ?eiziire, iieitln r i- li'- a e..nrt fitHeial >>> nln^t iii>t eoiiuiiit a breaeb 
I'f the J (face. 

IJiit after a haiiiff hnvt'nilv jrain- adinitlanee re-istanco sliciiilil eeaso, 
for even if hf ihen were ejeeteil he wonlij lia\e the riy:ht to r<'tnrn an<l evon 
Imak >'|)en the <l(>or;< fo entrr a.tain. Haniiisier r. llvije, 2 K. A: K., <5J7 
I I ^titt ). Afi< r malcini.' an inveiii^rv i>( the iinmls tin<l ^ivinjr it tn the tenant 
the p><«ls an- -aiil to Ix' '"iniiMiuii'leil," an<l are tiien in |Ml>^«^»v,i,>^ ,,( the 

Where sueh haililT I'enr-t vjhI.ik'o or i^ tliiTiitencil iii' /iiav |ir.ieiire 
I'oliee ]ir<>te4'tii'ii. Iiiit tiie |.ii'ii'( man iinisi n< t a-sist to ojii'n the luiihliii^r 
"r in iiiakiiii; the ilisiraini. !-iMi|ily |irote<M the liailitf from harm. Skii|mi>re 
( . JMinih. I'l ( '. ^ I'., 777. 

625 Tenant Claiming His Exemptions. 

ill Oiitari'i the -.uui ^(mi^I- :m.i chiiitej- u ! ieh are e\iiii|it fr^m >ei/nie 
iin.liT an <xoc\itinn are al«i> exeiii|it from >iei/.nre un<l<'r a lamllonr^ warrtinl. 
l'"or full list ^ee "Ivxemjiliiin-i from Si'iz;ire." Ilenee if a t<nant'~ jjchkU are 
ili~traiiiei| l>y his hinilloril he has tlie riiiht to take lii« f.iimptii,iis and mov<? 
"lit. The same ill (^llelxH'. 

If the lamlloril ili-ii:iiii-. the tenant ha- tiu' let;al right to .-fleet iiiel 
(Miint out the <io<i<ls aiul ehattel- for whieii lie elainis cxi-niptions. For in- 
stance, there arc six chair- named aiiioii}; the exemptions; henee the dehtor. 
iitstr'ad of takinji six eoniiiioii ehairs. mav select -ix of the IhsI in the hoii-e. 
and the same all throin.di the list. 

If n tenant sipi a lease with a clause in ii liarrimr hi- riirlii i.. the 
statutory exemptions, of enur-M' -ueji contract will hind hiui. .V tenant is 
very fiMili^h lo sipi any such Shyl<K'k lease whiidi deprixcs h\< family ..f the 
pr4>lection which the le)ii«latiire lias provided for th«-m. 

The tenant who claim- the hcnetit of the exeiiiption- in ca.-e i.f a lali'l- 
Inril ili-^trainiiiir for rent, iim>t irive up pos-ession of the pn'inises forihwiih, 
or lie ready anil offer to iln so. The offer mn-i In' made to the landlord or 
hi^ airent. and tl:e I'lr-i^n m ikinir ihe si-i/iire i- emisiderid hi- aireiii for 
this pnrjiosi'. 

The siirreiidir nl' tin- |..i--t -~i.iii in iln' |iiu--.i;iiici- el ihe l^iiiillords 
notice is a termination of tlu- tenancy, and the lenant has the option of pay- 
ins the rent and costs and iiioviii:r out. or to take his ixiinption- and move 
nut without oavinsr the rent or eo-ts, and lene the ninainder of his poiwls to 
lio ailvertisod and >:old under the landlord's warrant. ( See Exempt ioTis.'^ 

62G Monthly Tenancy in Ontario. 

On a leniiihly t.naney in Ontario, the eseiiiiitions only hold aL'ain-t iw.> 
months' arnars of rent. If the monthly ti nant owes fur a lonarer jioriod 
tlian two months, the landlord cun di-=train and -ell to r«vover what is duo 
over the two months, even if it tnk.- all the coods. This "iK'nidited" amend- 
ment. Seetion "-2 of the Landlord and Tenant- Act. is variously interjiretod 

]'ti I.AM>I.<>|(I> AMI TENANT. 

l.v the court!'. i»d.1 a liiii-ll.Til wuiil.l ii..t l.r safe iii toiicLiiig the .•xi-iiiptiHl 
l'I^mU. Tlu- ..till 1- I'roviiifi- hiiv.- n.. ^ (listTiiiiiiiation iuiioiif: tciiaiioicw. 

627 Seizing Exen.pted Goods. • t 

ll" ill. ti iiaiii 11. iili.r \'.i\> till' i-iil ii'"' Hiv<'* "I' |"»*s<-^-i.'ii atn-r U-iug 
Icjiallv noiitiitl U. vai-ai.-. ilii- lamll.-nl mav, b-jtli in Oiitari.. aivl Quolwo. 
irivo iiirii aiK.llitT wrili. ii llir.v dav notice similar t^. tlit- f.-llnwinj;, after 
wliicli he can r'tizc mikI «H thi- e.vinpU-il RooiLs to rtrovcr tlic uniotint of 
n-nt -liio ami the t-uMs. Tla" notice must bo sonicihiu),' like ihc following: 

Take, noticj', that I claim $ for rent due to nie in 

resjM'ct of iho jircmi-es which you h..ld at* my tenant, namely: 
(here briellv tie-crihe tliem, uiviiif; the numUr and street, "f 
lot, eoiicos!<ion, etc.): nn<l muU,^* the said rent is paid 1 de- 
mand from you immeiliaie i...ssesiiii)n jf the said jiremissea; 
and I am ready to h avc in vonr po-MSsion such of your pfM.d* 
and chattels as in that case only you are entitled to claim 
exemption for. 

Take notice lurlher, that if you neither pay the sai 1 rent 
nor fiive me up jiossession of the saiil premi.-es within tlire*' 
davs after the si'rvice of this notice, I am by law entitled to 
seize and sell, and T intend to seize and sell, all your t;oods 
and ehallels. or >nch part tiiereof as may l>e ueeessury for the 
]iayment of the said rent and costs. 

This noti<>«' is jriveii under the .\et of tin' l,e;;islature of 
Ontario n>sp<H'ti)i2 tin Low of Landlord and Tenant. 

Dated this. .' day of \.I). I'.t. .. 

To ('. I). iTiuniit). A. I'.. {Liimllord). 

After irivinj^ the alnive notice, if the tenant -till n niain in po-sessioii. 
ilie lan.llor«r can seize and sell the last article on the premiMs belonging to 
the tenant to recover the amount d".e, and costs. If the tenant does, not wish 
to lose his exemptions he must take them .in<l move out within tin- three 
dav- See "Qndiee's Tlirer> Days" Notice to Tenant-'."' 

G28 Fraudulent Removnl of Goods. 

\\\\ time U fore riiii i- due a tenant may niove out of tlie premise- 
leased without any coh.r of fraud, even if they are removed with the intent 
to prevent distress it is not a fraudulent act, if the rent is not due. White- 
]«ok r. Cook. 31 Out., iC,:: ri!H»0.) 

T.> constitute removal with the intent to defraud the rent must be actu- 
ally due at the time of the removal of the piods. otherwise the right to 
folL.w and distrain them not arise. Rand i'. Vaughan, 1 Bing., N.C. 

:•■.: t I'^sr,.') 

There mnst be a fraudulent intent on the i)art of the ten mt to deprive 
the landlord of his right of distn-;.'. as for in-ilance. ren)o^ .ng the go«Hls 
on the dav that the rent falN due and afttr the landlord had forbidden 
their removal until the rent wa.- jiaid. or moving out during the night of 
the day the rent falls due to escape di>lre*s woidd give the landlord a right 
to di-t-iin o(T the ])remises wherever tl.ey may l>e found, if in the mean- 
iime ;. .■• have not been sold to a h^wa fide ]iurchaser for value. 

Where pomls have been fraudulently reinoveil after rent falls due the 
pe ■! so removitig or helping to remove them is liable in action by the 
landlord for .louble the vali'e. 



'I'lic iriMxU ill 8iieh t-a-i' iiiii-i Ih- phhIb liable to tiei/.iirn il tliry wcro not 
miiovi'il, iitlirrwiso siicli rciU'iviil ;;ivis ii<i right to follow, or to rivovi-r 
.lainnj?<v. (iniy r. Stuit, 11 (.}. 15., I). W<h (ls8:{.) 

A iiiDrlniijict' may n'liiovo good.'* off tin- |iri'iiii-i«'s Ity the (•.>ii-ciit of the 

A criMlitor iiuiy also, hy consent of thi- tniatit. rciiiovL' giM)"l.t iu satis- 
factioi: of a dcht if dinif in gooil faith. 

.\ piiri"hn.''('r for value licf.irc ui-tiial distw*- iim\ ri'iiinvr tin' i-huttels 
III' has piircliaHi'd. 

The goods of third |)artips. even ri'lalivcs, li\iiiir uiih lUi- i. mint, mav 
miiovc their go<xl:i any time btjfore iteiziire is made. 

629 Illegnl Distress 

If fT'-Mi-* arc (li.-trainid which arc exempt from distrc-.s, the -ciziirc will 
Im' illegal and tin- landlord will U' liable to an aotiim, and il llic liailiff 
made the nii.stake ho will have to bt'ar tho costs. 

In ease a di.'>tres» i.'* illegal tho purchaser aecpiircs no iitl>- m^miu-i ilu; 
tenant, or the owner of ilie ginids if the '^(jods lM'loiige<l to a thinl partv. 
Harding 1. Hall, It L. T., 410 (l^Ot;.) 

For an irregular or an excessive distress a tenuni may recover full aatis- 
faction for the damages actually .sustained, hut notliinir by wnj* of penally. 

If a landlord enters a house after snns(>i and inierferes to prevent tho 
removal of tho goods, the tenant is entitled to rt?eover the full value of the 
g»Kid8 distrained. Kngland i. Cowley, L.R., .H Ex. lifi (IHT.'i. i 

If a landlord disi rains for rent before it is in arrears it is illegal, and 
even if tho tenant were In sign a iloouinent without consideration and not 
nmler seal, civing tho landlord the right to .seize before the rent was due, il 
eoiild still bo voided if any ono were to challenge if. Hrivfield i: <'ardiff, 
i» Man., L.U. 'M-> ClS!t3.) 

Disinws for rent under a lcast» that has Iven surrendered is illegal. If 
a lamllord on account t)f a breach of covenant on tlio ii;irr of the tenant to 
pay rent enti-rs an action for reentry, ho cannot di-irain after entering sueh 
.iction. lint if he distrains first be may «ubsoi|uejitly eiitiT aotion for 

ITe must not break o).on outside doors, nor open windows to ••nier. and 
if li(^ dcM s he coiinnits an illeiral act and ii distress if levied would he void. 
\ash r. Lnca."*, T..U.. 2 {). I!. .".DO (IsC.?.') 

Tf the door is not li«'kecl the bailiff may open it. and if the key is in 
the lock be may niiloek if, but he mus, not lake down a key h(> may discover 
lianging or placivl nearby and nnliK-k the door, as that would Ix- a criminal 
act, and the =oizuro -would bo "Nfiller ;. f'urrv. i?.' X.S.. K. ."lOj 

lie may ohUt .hrough an open wimlow or transom or skydight, Imt 
iifjst not force any of tlnui opi ii, for (■> (>pen an unfastciuil window if 
closed would ho ,-.n illegal act, a.'* stated alxive. 

Tf a winiliiw is partially ojien h(> may push it fiirlbei- opm -,• ji, lo 

ITe must not pnt bi> hand through a hole in the d'lor, or tbroiiirh a 
broken wimlow to remove fasti'uinjis. TTandciH-k v. .\ustin, 1 I C.J]. \. S. 


I.AMil.ollP AM' TK.VAN \\ 

Af It r III lawiullv p-ii. in-i>lr the i«ui<t 'l<"'r In- itiiiy lir< uk i>|Mii uiiy 
iii-iilf "liMir luii »-ary U> tiii<l imy punU wliicL iirr ili>>friiiiiitl>U'. 

C30 Penally for Illegal Sci-ures. 

I. it ii liiiiillniil <li>iriuii Liluir nut i^ in arr.iir^ ilu' Ifuiiiii m.iv ro- 
oipvfr <l<>iiiil»' llif iiiii"iiiu I't" itilmU (li-iriiiiiiil willi full i*«>i«li4 of !>iiil. 

'2. If ihf liiinU«'nl wi'iv i<> < iittr ilu- hmHc iit'ti r kuiimI aixl pn-vciii ilir 
niiioviil iif tlif ir<H..|-i thi- will U- illegal, and \hv i. iiaiii may n-cnvir the full 
viiluc I'f tin- (i.-mU ili»iitiiii<i|. Tin laii<l!<>i'l iiiii^i wan iiniil ilu- inM <lay 
ai)il thru fnllnw ilir irnoiU if tlicv lictii niiicpviil. A ili>tri':v* on Sniiilay 
is aU<> illruiil. 

:l. Till' hill'il'Til !■ lii'i |i;ililr iiii ■.,l,^ il!i fjai acl> rominillcl liv llic l»jiiitT 
iinlos* till- acts wore authorized or -iibseiiuently ratilicil liy him. Tlun fori . 
it' the liailitT i- autli"ri/< il im .xi/c ilic tiiiaiii - u<«ni~ and In- -iii /(•.•> tlur^c o. 
a stranpT, or to seize on the |irenii-e!* and lie seizes off the pn-nii^es. or if 
lie lireak- into the i>renii-<-. tin- haililT onlv i- liahle. Al:*o. if he were t.. 
seize and >ell tlie exrm|itions ille-rallv. the hailifT w m'.! !"■ li il.|. . \''>' i' 
action woulil In- au;ainst the landlord. 

632 Form oi Distress Warrant. 

To .\n-. A. II., ni.v liiiilitr in this Inlialf : 

1 do lui-iliy aiilliori/.e ami rei|niie yon lo di-irain the ;;oih1s and eliatt. 1- 

• f < . l>. (lenaiill. lialilr lo !«■ distrainul for rem, in and iiiion tin- 

now or lately in the tenure :ind fieenpation of "itiiate on 

in the eouniy 'if , for the sum of nollars eeiils, ln-injr 

the rent the term of due to me for the same on th"- day 

(.f in the year of our Lord one thonsatid hundred and ; 

and for t!ie said |iiir|iose distrain wiiliin the tiino. in ihr inanie'r, and with 
the form- jn-e-iTilKd hv law, all tlie said iroods and ehatti'ls of the snid 

whin .soever ilny sliall \h- found, which have Im iii carried olf flie 

■aid premises, hut are nevertheless liable hy law to ]»• seized f >r the rent 
i'foresaid, and to pnicecd thereon for ''n' V'-'-'Vcrv r.f the said n-nt :'.- f' >■ 
law directs. 

Dated the day of \\> . . . V. V. ( f.nnillor.i j. 

C33 Form of Invcntorj' of Goods Seized. 

.\n Invi nii'i'v of t!ie -ii < r::l ;..m,K ;iiid ihnttel- distrained hy nio. 1'. F. 

for if a- I'.ailitT, 's:iv A. B.. a- Bailiff to Mr. K. F.). this ." . . . ,lny nf 

in the year of our Lord. I'-i... in the house, outhouse and land?, 

fas the <'n=e inav W-) of ('. T),. situate at in the countv of , 

("and if as h;iilitT. -:iy liy the anftioriiv atid on In-half of K. F.. your Land- 
lord I for the -um of dollar-, l."inL' niit due to me for to the 

said v.. V.) on tlie day of !!•. ., and a- yit in arnars and 


1. In the dwelliuf; hous-e: 

Kitelnii (name child articles. l,nt le^t e\eni]iic ! articles). 
Diiiiiiu' room (name the artichs, hut jeif exem;i!ed arlicd< s). 
Parlor Iiimui- tin articles, but not exempted articles"). 
-. Oh the iiremisi-: 

Tn barn (name arti<'1es). 

tk.n.v.nt'h rntXTKii maim. 


D.-ciU- ull ilw ariiilcs srizcl a* n.arl.v a-, can U'. nc'.>r.iinK f.« tiro 
1,1a.-.. th.-v an- f..iu..l. Ai.-l iIhh at ih.' Iwituin of the luv.>ntory miI>- 
M-r\U- til.' fMlluwiiii! noti.T to th.' t.iiaiit. aii-l l-axv ll.r liiv.n|..ry uud iioticf 
with hiiii: Mr. C. 1>. ,, 

Tak.- ii.>lifc that 1 linvp this .lav .lislrain..! (-.r tliat I. a^ Imilitl to K. 
v.. your Lan.llor.l, liav.- thi« .lav .iiMruin.'.l ) ou tin l,l•.•lMiM•^^ alv,v.> nu-n- 
ti..n<'<I Ih.' Mvcral pH,,U aii<l chafteU *|KH-itio.l in th.' aU>u- Inventory for 

il„. Mim of dollars Ix-ing n'm-. .liio t.. me (or to tin- nai.l K. V .) 

„„ il„. (lay of l». .. for ill.' ^aid prciiii-^M; an.l lliaf unlcM 

yon |>av tlif sai.l "r.tit with .-harir.-* of ,li'<iraiiiiii!: for th.- •'iiiii.-. or r^]>]*'\\ 

\hv -ai.l p>o(1h an.l within liv.- .lay-. fr.Mii the .lat.- h.i f, ih.- itai.l 

jro.MN an.l chatt. U will Ik- apjirai-^.-.l an.l .sold apcor.lin;r to law. 

(livin iiii.h-r my hiiml flii- "lity of 1'-'- • • 

J K. F. (r.niullorii). 

} ..r .\. B. ( liallilf). 


(In disiraininj: ..n farm »t.T<'k or prowing r-ropo. the Inv.>nl..ry an.l 
notie«' bo vnric.l hv pvin^r nniiilK'r of h.t. con<-Pssi.>n, t..wiis]ii)). .-t.- 
and thr .lispositi.m ma.h-* .-f the .rops .-t.-.* Xoti---- .'f -ah- nui-t Ix- j.ost.-d 
np in llir.-c public plar.-!.. 
634 Ten:ints Request for Delay. 

Ml. A. I!.. 

I h. r.-i.v d.-sir.- voii will k.-.-p |.o-'r«.>-'M..ii «f my pood, whit-h yon have 
this .lav .listrain.-.l for r.-nt .In.-, or alh-L'.-.l to h.- dii.-. from mo to y<.n, in 

th.- place when- ih.-y n..w arc. In-ini: in th.- hnui- nnmlH-r -trrot (nanip 

of town), for the space <d" .Inv.-* from the .late h.-reof. on .v.>iir 

nn.lertakinir to delav the "ide of the said ir.-."!-' and ehattels for that time, 
to enahle nie to di*<'liar!re the -ai.l, an.l I will pav tk- man for keeping 
tb.- .'ai.l possf-'sion. 

Witness my 'iiind tirH. ... <l:iy ..f 1!». . . 

Witn.-ss \^ 

r V. I 


('. 1). 

Tenant's Setoff Against Rent. 

.\ I. iiaut iiiav Mt-i.tT apainst the rent due n debt due to him by the lan.l- 
l.ird. It may b.- piv.-n .-ith.-r !.< or a^ r s-iznre. and may be in th.- f.l- 
lowinir or >imilar words: 

Take n<iti.-e that I \v\A\ t.i set-off arrain-t r.-nt .Ine by me f.> y.m the debt 

which voii owe to me on your promissory ii.ite f >r .lafed 

(or for eisrht months' waaes at $20 p.-r m..Mth. $1»<>. or a- t! e <-a-^.- may U'). 

Date. Sismature. 

Tn ease of sn.-li n.ili.-e the lan.ll.-r.l can onlv distrain f >r the lialan.^e due 
him aft.r .le.liiciinu' any debt jinfly due bv him to the tenant, an.l if h.- 

.li-traiii- f'-r tn-n- li.' will !>.■ li.iblc for ilh-iial seizure. 

636 Legal Costs of Distress. 

'111.- Oiitari.t Siai\ii.-s allow the foU.nvinp expen-^es if the amount dis- 
trained for .l.>es not cv.-.-cd $80: 

1. I^evviii"' di-tre-' imder i*'-iO, $1. 





U^ 1 2.8 









2. One iiiau ki'cpin.i; jiossojsion per day, 75 ceuts. 

'i. Appnii-iiK til, wlifthcr liy one a]i])raisc. or more, two cents on tlio 
dollar for the value of the jroods. 

4. If any prinicil advertisement, not to exceed in all, $1. 

.'). Catalof^e, sale and coinniii?sion, and delivery of goods, five cents in 
llie dollar on the net proceeds of the sale. 

W'iien the snni exceeds -fSO, $1 jier day iiiav he chari;i.l for the -nan 
left in )ios.-<'s.<ioii of the jroods. and ilk- .•llier expen.-ie.s ailowe<| are ahoiit 
donblc those mentioned he/e. 

In cases of disputi- as to costs either jtarty. by pvinjr two days notice in 
writing;, may have the bill taxed by the Clerk of the Divsion Onrt where 
the distress lakes place, npon payment of a fee of twenty-five cents. Similar 
procednre in all the Provinces. 

The costs are very similar i:i all the i'rovinces, and we will, therefore, 
only ffive thii>e for Maiiitoh;i and ctlu r Western provincf^s. 

l-'or ^laniloliM tlii' costs allowed are ;is follows for both chattel rt'.'aire 

and nnder landlord's warrant : 

1. Lcvyiiii; ilistrcss, $1. 

2. ^Man in possession ]Kr dav. .$l.."i(i. 

:i. Ajipraisement, two cents on the dollar on value of g-iods u]< t) 
$1,0(10, and one cent per dollar all over $1,000. 

4. All reasonable and necessary disbnrsment- fn- ndvr rtisinir. 

.'■p. Cataloirtie. sale, commissidii nnd delivery uf iroods. five per cent, on 
the net proceeds of the jroods np to .$1,000, nnd two and one-half per cent, 

(1. Mileanre in Jioini; to seize, fifteen cents per mih' one way. 

7. .Ml necessary and reasonable disbtirsement-: fnr n inoviii<r and -tfiring 
poods, and keepinff live stock, and any other disbtirseinents nhich in the 
opnion of the jndire Ix^fore whom the cpiestion of costs mijrht be bro\i<rht i''>T 
decision, woid'l be recardeil by him as reasonable and necessary. 

Xo other or jTreater costs or charires shall be taken from tenant, or the 
])roceeds of the sale, and no charge shall l)e made excei)t for what i« actu- 
ally done. .\ny violation of tlii= prnvi^ion incurs a penalty of treble the 
amount of the nvercharfre. 

The same charL''e- are alb'^ved for seizure under a (diattel muriL'aire. 

For BrUhh f'ohnnhin the costs allowed for seizures are as follows: 

1. Levyini; <li-tns< un.ler SlOO. S:l..-.0: . ver $100 and nnder $300, 
$1.7.5; over $.100. $2. 

2. ^lan keeidnj: possesrion per day, $2. 

'■'>. Apprai-ement, two cents on the dullar mi value of pMid-i. 

4. Catalo'/ue. sab' and comnnssion. and delivery of jroods, on the net 
proceeds c.f sale, if under $100. ten cents on the dollar; if over $100 and 
under $.100, eiidit cents; and if over $:'.f>0, six cents on the dollar. 

For Alhrrln. f^nxl-nlrhrirnn nnil Xnith-Wpsf Trrriforirs. costs allowed 
fi.r both chattel mortftaire and undrr bindhird'- wnivniit nre a* folldws: 

1. r.evyini; distress, $1.00. 

2. ^fnn in possession, per dav, $1.50. 

". \\<w:'' '-v-'-ut tn.. .■•■-' -r *''-,,■ .l-lbr. Ill-, t" $""f^. ■■■'■'''■ ■■'■■■-- '--"r^f^nt. 



for caoh ii.Mii i..u;il ^-''OO „r traction tliorwf up to .$:2,000, and one-half ])<t 
<('iil. on all sums tlicrcaftcr. 

4. All rcasonahk and nc(Ms-arv cxitcnscs for advertising. 

:<. (\italogu(s. poninission, and delivfry of good?, thrco per cent, on net 
proceeds of goods up to ^l.dOO, and one and one-half per cent, thereafter. 

For Yukon, l.oih f..r etiattel niortiruixe and under landlord"-^ v'arrant : 

1. Levying distress, $i. .'■(). 

2. Man in posse-ssion, ]ier day, $4.00. 

:!. .\ppraiseiuent, two cents on the .lollar uj. lo .$:.0(), and one ceiii "U 
the dollar for each additional $500 or fraction thereof up to $2,000. and 
one-half cent on the chdlar on all over that amount. 

4. All reasonahle dishursements for advertising. 

.''.. Catalogues, .sale, ponnnission, and deliverv of goodv three per cent, 
up to $1,non. and one and one-half per cent, thereafter. 

( lIAl'l Ki; XIX. 

•nts another. 

640 Principal and Agent. 
.■\-;.-iicv is wiiei-e oUe person triiu^ac'- bu^iuo.- for, or reprosei 

The errand lx)v, the clerk, ihe conductor, engineer, swiu-hraan, the commis- 
sion merchant and the farm labi>n-r an; all agents as much as those engaged 
in selling machinery or fruit trees on commission or salary. In all hranches 
of business where one jierson acts for another there is an agency. F^ach 
member of a partnership business is an agent for the others and binds the 
firm by hi-; :i<i< and contracts connected with the partnership business. 

Anv person may act as agent that th.> ]irincipal employs, even a minor 
emploved as agent inay make anv contract that his principal could mak.-. 

The powers, riglits. dutie- and liabilities of agents are determined by 
the rides of the common law. hence, are invariable, and there is no excuse 
for those wh > blunder through ignorance or carelessness. 

641 Express or Implied Appointment of Agents. 

.\n agent may l>e a]>p"inted -imply by word of mouth, by writing, or 
by Power of Attorney, or it may be only gathered from facts and general 
course of business. 

When the business to be performcl bv the asfcnt is of such a nature 
that it reC|Uires him to sign notes, accept draft-, issue cheques, etc.. the ap- 
pointment should he by writing, that is a power of attorney shoidd be given 
^■or the specific authority that is conferred : and if he is to sign deeds, mort- 
gages etc., or to enter into other contracts under seal, a Power of Attornry 
under seal Khouhl be given. 

The Power of Attoruev may l)e fxeneral — giving the agent power to 
transact all the usual business of the principal; or it may W' specific — -givimr 
anthority onlv to one or more particular acts, and no more. .\ Power of 


I'I;IN< II'AI, A.M> A(iKNT. 

Aitoni.'v iiuiv ;il-^.> lie jir.Ai',1 In Keillor (.xcciiifil ill the projcnw of a notarv 
jMililu- who ]il:ii'.s tlicrcim his attostntion of itj execution, but this is not 
essential cxcciil lliai it lcavc> no rnoiti for a (]iio-tion of for-vrv in siihso- 
([iifnt coiiijilicatioip. 

642 Form of Power of Attorney. 

K\.'\v All. .Mi;.\ nv this:; i'i' iIkh |. .|;imr~ Kv('rin-l];nii, ..f ihe 
Town ••( Sirathroy, in tiio County of Mi.ldlo-cx, ami I'roviimo of Ontario, 
merchant, do noniinato. constitnto ami a])point Janu^ .Miirion. of the City 
of Chatham, County of Kent, my tnic aii.l lawful nttonuy. f..r me, in mv. 
name and on my hchajf to i oiv,. in full th<' work to l.<> done hv .Nfarion for 

A.\i> for all ami < vory ot the said jyurpo.-jc- liiToiuix'forp mentioned, I 
do herehy -ivc and "rant unto the said .Tiiuus .Marion, full and ahsolnte 
power and aiiiliorify to do and execnfe all nets, matters and thin^.^ ncocs- 
fary to 1h' done for the full ..nd proper earryiuir out of all <aid matters en- 
trusted lo him and do herehy ratify and oontirni, and a^ree to ratify ;ind 
confirm and allow all and whats .ever the s;iid .fames >[arioii -hall lawfully 
do by virtue then of. 

Ill witness whereof I have -er mv haii.l and -r.d flii^ :!l-t dav of \„,r. 
nst. I'.aO. 

Signed, sealed and dclivi'ved \ 

in the presence of ■ 

\. I.. -I. .M.S. I 

.\ M t - Mv'KlMXl.UAM. 

643 General and Special Agent's Authority. 

Ui iimil lujciilx are ih.ise who have authority to act in all capacities in 
the ]ilace of and for their principal, or act in a certain h^'ality. >n for a 
certain w<.rk or kind, (ieneral anents hind their principal-, r. ml ■rinii' them 
liahle to third parties crcn fur the fmud or iirfflrrt on the part of thi> au;ent. 

Commission nicndiauls, .secretaries and treasurers ami nianao-crs of 

stock c.iin])anies. emp|..yees ,.f .-ailr 1 and companies, etc.. an- 

all general airents. 

SprciiiJ aijcid.'i are those who are limited t.. a cerlain clas- cf action or 
kind of work, and do not hind their principal only in -.. far as the; kee]. 
irlthin the urope of their aiithorlii/. If they pass hey.n I this, or are irniltv 
of a frnuduler' net. ihey ..idy i-emler them-elvc-. liahie. and no; ilidr prin- 

r»ut if an njienl should do husiness for the j.rincipnl which ln' i~ m.i 
authorized to do, and the jirincipnl accepts it. Iw therchy ratifies it. nn.l 
thus hecomes responsihle. iK.t only for that i)articnlar transaction, hut t'..v all 
similar acts. linHllinlinn of an net has the same effect as prior authority. 
Ratification may he effected in two wavs; (1) P,y express words. In <-ase 
(if corporations ami stock compntiii.s it is nsnallv .l.ine l.v re^Mlutioii. (2) 
Hy ncceptiii<r the heticfits accruinir from the net. 

By refusinir to make the liaii-n<'tion his own. either hy exiires- word-". 
or by refitsinsr to accept the beimlits accruing' fr..m it i- ftisalfinniii'i the act. 
.ind frees }.,;.,, from linbilitv. 

.ii:.NT s si'..NAi I i;i.. ^^'^ 

645 Third Parties Dealing With Agents. 

Thinl i-aiii.-s ,houia i, il.r autliorily l)0^.st■^sO(l by spectnJ arjcnts 
if rlipv wotil.l i.ri.t(ct theiii^t'lvcs when contructin- with sudi, if u i- im- 
portant to tiicm that the prlnnpal slicuhl 1m' hckl rcsponMbh". 

.\n agent shoiiM alunv^^ have thi- cviacnci- of hi^; authority with hiiu 
and if he has it not, no i'uiportaiit tran-actioii shouhl ho i.erfornu-'i with 
him. It is mit fuouiih to hind tiic conii.any, that an afroiit (h;ht,rH himsolf 
to ho cither a speeiui or -tnerai aficnt. for his inisrci.resciitati.m wonl-l not 
bind the eompany. The jMriics in (k-aling witli him nin-r demand thr i>nm\ 
ui his auilioriiv if thev wonhl in- safe. 

.Money paid to an agent who has no aniii.irity to nreive it euun.n 1..- 
HH^overed fnim the i)rincii)al (or any other [rm-sou). 

M,.,,, V ^li .;ild never he paid to an agent for a note nnkss '..• hi^^ the 
n,,te to deliver over, nor even to the original payee. 

A <'ontraet nia-le with a speeial agi nt who is exeeedni- lo- Muiiionlv 
eaiuiot Ik- eiifoived airailist hi- ])riiiciind. • i i • 

Xotier uiven bv tlie aL;ent to third jiariie. N notnc given by tli.' pnie 
eipal: and n..ti.v lii'ven bv third parties to tlie agent i:- notice given to tlie 
principal and at ^\^<■ -aine'tiine it wa- givni to ihe agent. Payment tendered 
t.i the nuciii i- paMii. nt K nden .1 to the prinripid, and rice Versa. 

WheiT the parties dealt with are aware liiat thev an' d( aliiiu' v.ith an 
aiivnt, thev eaiinot hold the airent ]>er<oiially liable upMii ;i (■..iiirari made 
bv him. -n lirhiilf nf his principal. if. .m tli,. other hand, the agent ivpre- 
..■riits jiiii!-. If a^ ill- principal, ilic third parly will have tlie ridit, either to 
linld ilic •■ agent ■■ vc-i on-iblc pcr-nally f..r the c-.m riic;, ..r he may enforce 
it is against the •'principar" wlnoi discovered, !: :^ a iimrral agt'iit. 
or a special agent a<-tin!:' within tlie seojie of jii- anili riiy. lie cannot, 
h..u-ev( r. -lie tiie iigeiit. uiid iifterward- bring an aciiMn iit;;iin-r th,. pnncipal. 
lie iii;i>f elect which In will IcM. 

646 Agent's Signature is Public Notice. 

An agent's -ii;natiire t.. n paper .r d.«'nnient n\ any kiml i- pnblic n.hice 
tliat he i- acting niidir a limite.l authority, whether he has ]>revioii-^ly stated 
that lie was nienly an agent or not, and the princijial U h>m\d by sncli signa- 
ture onlv Ml far ii- the agent i- acting v.dtliin the actual limits of his anMierity, 
but no further. 

An aL'eiit may di-clese ihe fact tlia; he is rnily acting as agent by nsing 
in connection with lii- name any of the following or .-imilar terms: " Per." 
" jiro," "pro (■■11." "for." ..r "agent for." 

Tf the a-eni d..e^ not dis(dose ihe fact i.f hi-^ agdicy when signinu' his 
name to a cniitract lie bind- himself. 

Tt i- prefirable to -iun ihe principal's name tlr-t. a-: 

■lame- Sniitb. 
per W. Winters, .\gent. 

Poniinion Tran-jiortation Tri., Ltd., 

]ier \V. Wint(>r-, .Manager. 

\A'. Winter-, ^fana£^ev, 
SiL^ied for and .11 hch.ilf ef Dnminiun Transport:ii ion Co.. Ltd. 


I'iil.N" 11" VI. AMI A<.|..\ I . 

Il W. WiiiKiv, iifting us Jigt'ut, Were W sijfu a iu'li' or acnpt u Jiali by 
-iiiiiiiifi; his name as 

W. Wiuters, Agent, 
it woiil'i liiiiil liiiiiMir |i< isMiiali,\- aii-l U'.i ilie jiriucipal, iu all cases. 

650 Fweu! Estate Agency. 

The same laws and usages liold good bciwccii osiate agents and the 
7>i".iprictors of properly, and purchasers of property that rule iu other 
bninehes of the agency. An agency may l>e created by verbal or written 
agreement, or it may be by im|ilicatiou, or created by tiie usual cour>e of 
such business. As tlie chief l>usiiie-s of an estate broker is the buying auil 
selling, and leasing of real estate, and that fact being well known to i)riiporty 
owners, an agency is easily created ^•ither express or iiu]died. 

The following features of this liranch of agency liave been .finally 
settled by cases l«?fore the highest courts in the reahn, ami Tuite ilStares, 
and tliey cover the ]ioints coiiecruing whitdi litigation i.< ,i;'>-t likely to oeeur. 

The proprietor of ihc r-^lale should state dctiuitely. uluii naming tlie 
jiric(- at which he will sell, whether such price includes tlie agent's com- 
mission, or whether it is the net price; ()therwis<> if the ai:ent effects a sale 
for tlie amount named he will be entitled to his commission out of such 

Tf a property o^vucr does not de.-ire an agent to handle an estate he may 
be offerini; for sale, when an estate broker offers his services ho must refu.-?e 
iliem. Tf he does not definitely refuse to allow siu'h agent to act, and the 
affent sub.<e(]uently introduces to such projirietor a prospective p\ircha.«er of 
the property, and a sale stibsequently takes place, the agent will be legally 
entitled to the usual commission. 

(a.) I5klay i.v CoNsfMM.vrixo Sai.k. If an agont ai)proache= .-i 
lUMperty owner concerning an estate, or if the proprietor, with a view of 
selling his estate, goes to on agent and requi'sts him to tind a purchaser, 
na-niii!;- at the same time the sum which Ik- is willing to accept, that will 
con.sfitute a qntmil emplovment; and should the estate eventually be sold 
to a purchaser introiluced by the agent, the latter will be entitled to his 
coiuMiission. even thouirh the sale does not take ])Iac(! for some time after, 
and even though by an agreement with the jtroprietor such persons take 
a lease of the jirotxrry with the option of bnyincr within, sav. a vear: if 
the sale is then effected the agent will be entitled to his commission. The 
negotiations are not broken off, but the time for concluding the sale is by 
asTeenient delayed for a year. Tt is a continuation of the negotiations, and 
jiffer the juirchnse is coneluded the iarfiit ii.av claim and recover his com- 
niHsion. Morson r. Burnside, .Tl O.T?.. 4.'5S (1000"). 

fb.') ("oMMissTox X(ir Vkt E.\I!\m>. If the ouiier oi)tains a purchaser 
without anything l>eing done in connection therewith by the agent whom 
he "mploved for that pnrivise, tbe agent cannot recover comniissioji. and 
could not. even thonffl, lie },;„] another jmrchaser ready to buv, but who liad 
not vet 1-H'come known to tlic jiriucipal. Tviiiinier v. I\nowle« r>,0 1 T V S 

Tc") AoFN-T DisruAROKn Aftkr PtTKriiAsrcR T.NTRonri'Kn. "Where 
there is a qeneral employment to sell, and the agent takes the usual course 
in such m.ntters. of enteriiisr the nropertv in hi- Imok^ and ndverti=e= it. and 



thereafter gives un iutro'iiu'tion whuh ie.>ult.s in :i sale, he must be iield to 
have earned his comniissidU, although ho dofw not make thi> eoiitrac-t of sale 
or adjust its terms; because in that ease lie fultils his contract by giving the 
introduction, and the employer cannot defeat his right to commission by 
(letermining his cmijlovment before the sale is etTeeici."' T.ord Watson, in 
[oulmin r. Millar, r.S I..T., X.S. W. 

(d.) K.vuA(iKU TO Kk.nt Only. "Agaiu wlicfe the emiiloyimui is 
]iiniied—ii for instance, he was siini)ly to let— ho woidd have no right to 
commission upon a subsequent sale made to the tenant of the property let 
during the currency of the lease. In that case his employment and his cou- 
M'i|iifiit riudit to commission would, in the absence of any stipulation to the 
contrary, t<Tiiiinate with the e.\eeulinu of the lease which ho was employed 
to negotiate." Lord Watson, in Toulmiu i: .Millar. 

(e.) Co.NTKAcr ErriiKi! to Sell oit 1.i:t. "On the oi her hand, siip- 
[Htfo a proprietor goes to an agent foi- the j.urpose of letting and instructs 
him to let." The agent savs, " I think I can find you a i)uiv!iascr; will you 
not sell r To wliidi he ."■■plies, " I will sell for i:it>.()(l<l. n,)r a ^ixp(•lK•e 
less; if you can get that sum. sell; if not. let the property." In. tins ci>so 
there is not a general employuient to sell. " If gives a limited inaii^iate 
to sell for the i)riee sjiecified instead of letting; and the agency would eoi.13 
to an end when the agent failed to obtain that pric<' and carried out 
the alternate scheme of letting the estate to the tenant." Lord Watson and 
Lord Fitzcerald before the House of Lords, in case of Tonlmin v. ^lillar. 

(f.) SxirrLATEO Pkick anu Aoknt. '' The mention of a sjieeitic sum 
which the proprietor is willimr to accept for the ]iropcrty preveuts the aireiit 
from selling at a lower j)rice without the consent of the employer: but it is 
-liven merely as the basis of future negotiations, leaving the actual price to 
be settled in the course of the negotiations; th(>rcfore, if the proprietor con- 
cliKles a sale to the iiurcluiser introduced by the agent at a price less than 
the sum named at the tiiue the employnu'ut was given, the agent, in the 
absence of definite stiiuilations to the contrary, will be entitled to his com- 
mission out of the sum obtained." Lord Watson, in Toulmin v. "Millar. 

(g.) Bre.\cu of Faitu by Owner. '• If a jn-oportv owner offers a 
broker a certain sum to obtain a purchaser for his projierty and tlie broker 
procures a party to enter into negotiations for tlu; luirchase. and jiending 
the neirotiations the proprietor allows such party a definite time to decide 
upon terms pro])Ofed, and before the expiration of such time sells to n third 
partv, the broker is entitled to recover the stipulated compensation." Reed's 
Executors v. Reed, 82 Pa., Lt. 420. 

"Tn the ease of Crrni 1: B'nflcff. 14 ('. 1!.. X. S. ( lsfi3), where an 
atreiit had failed uji to a certain time to eflfect f sale, wheieupon the owner 
told him he had concluded not to part with his property;^ but snbsecpienfly 
the owner privately negotiated a sale to a i)erson who, as Lt was sbo\Mi. had 
l)een attracted to the office nf the broker by the advertisements displiiyed by 
him. and had learned from him the name and address of the owner, if was 
held that the agent was entitled to his stipulated commission." 

(h.) Xi) ("oMMissioN ArAiiT fi!():m roNTitsrT. "Tf a broker b:-* no 
emplovment to sell either express or implied, he can have no claim to lx> 
remunerated, even though he can prove that he itilr-vlueed to the owner the 
person who afterwards purchased the estate, and tha' hi- introduction became 


IM.MM li'Ai, AM» .\i.i:\r. 

till' caiix' iif till -;ilc." I.i'iil Wiit-mi, ill 'r<iiiliiiiii r. Millar, made ilii- pnint 
vi-rv clear. In I'nler t" I'fUiul ii lei;al elaiiii fur eiiniiiiii^sidn there must imt 
only lie a e;ii:-:il ii'iiii>'li '• Mvieti tlie inlriiiliietinii aiiil llie ultimate tiMii-ae- 
lioii (if -iaje. liut ilure must be a eoninict of empliivrnfm tt* well. 

//) Alhirld. no f^r the sale "f real o-tate can lie ixuveie.l 
unless the ('"lUtract f^r tin- >aiiie i- in wriiinir. siLniwl liy the ])ari.v w.tifrht 
til lie cliar^eil. (ir liy hi- atreiii, lawriilly aiiiliorizeil in wriiiiip ( Clia]i. •J<'i nf 

It njii'lies til all tnin-ariiun-' sim-e .May !•, 11)0(!. 

This jihices isueli airreeiiient- innler the Statute of (•'raiid-' anil Perjuries 
in that I'mvincn. 

(i.) I'ltiM ii'Ai. CiiAMiiMi III- .Mink. It tlie hml^er fully |ierl'oriii8 
hi« i-nniniet with the laiiil-iiwjicr hi' eaiiiuii Ih- jirevi iited fr<>m i-eenverins! his 
cnmmi-i-iiin liecau-e t!u^ nwiier siih>ei|U( ntly ehaiisies his miml alviiit makinjt 
a sale or trade nf the pruiK-rty. .Veiderlaud r. Starr. ."i(> Kan. TTD. 

Xeiflier e;Mi he :i\iiid the eniiirjiet with the lii'iiker mi the frroiind that 

lie has a i ''er Mfi'rV. lie i- fi in accejit the hetter ofTor, hut lie lilU>t (••illl- 

j)onsiUe the limker who has iimduei'd a puivhaser at the stijmlated price 
hefiire the hitter ntfer \\iis n.'i .jiii ■!. i ii'initi.ii i. Mimdy, Jt .'-.V.'.. :!:!!. 

(j.) XF.fii.inKXi K OF TiiK Pkin( ii'AL. " Where a purchaser apeejit- 
ablo t(i the principal i- l'"iiiid within the time speciiied, hut delay in closing 
the sale eaii-^(d hy tin- iirineitiar^ failure to keep :i|iiiointments with the piir- 
eha'^r. or throiifih other fault, fraud or negligence nf the priucipMl. the aale 
falls thio:ii;h, the aueiii who lind- liie purchas; ni 

<i..n. Hal's (. Sjiepard. "u Kan. •_'(). 

The Imrdeii of proof is on the ]ifijicipal tn -hnw why lie did not keep 
siieli ap|)nintiiieiits. 

The i|Ue-ti.iii jis to will ilief the priiicipul wiJi'iiUy lii'nke nlT thi' sale 
whiih the iiri'ker wnrked up is for the jiirv to di cide. 

(k.") Sai.k Tiiwmjti-.I) iiv Pkmmii'ai.. A broker iindi riakinp' to >ell 
pro]M'rty for another for a certain coinmissinii who timl- and |n'nduces a satis- 
factory p\ircha-er. able, nady and willinir to piiiehase ai the jirice and on 
the terms stipnlaied, has earned and ctin rreover his coiiimi>sinn. though the 
-ale is never completed, if the failure to complete the same i> mi 'he jiart of 
the principal, without any fault nf the agi nl or the purchaser. 4:i Lawyer's 
Reports, annoted, page "lOil. 

Xeither can the right > f the aueiit to his comiiii-sion h- harred by the 
fact that the sale is iireventid liy the princijial's atteiiipi to change the terms 
of sale, or iiii|iose ndditi.oiial ones. Tlildebrand c. I.illis, 1(1 (\>lo.. \j>ii. ."i22. 

CI.) PKixrii'Ar. Rki'isim; to E.Nioiiri; ('oNTi!A(T. In ea-e- \ihere a 
broker has effected a barirain and sale by a contract whi(di is mutually nbliira- 
>t.orv on vendor and vendee, he i:- entitled to his cniiimission whether his 
emidoyee chooses to comply with or enforce the contract or not. l.nvi^ r. 
"Miller, .lo Tnd.. 204 .\m.. Rc]). 102. Either of the lu'itudpals to a binding 
eontracr for the -ide nf real estate may enforce ir a^Min-t the oth'V , It' 
neither one dne^, the agent must Innk tn hi- emideyer for his componsatinu. 

The default of the principal in none of the preceding ca-e« will }\e 
assumed, but it must lie averred and proved. 

(m.) .\y Okai, .Vcrf.f.mknt. Althoniih flu contract between the 
broker and ihe purclia.ser is merely oral, if it is . lu- thai the piinha-er is 



ii':iii;. Mii'l willing to carrv nut Imt fi>r llic di'l'iiiilt nl' the j)i-iiici[iul, tlio 
l>nikri"s rijilit tn cuiimii^sioii will net Ih- iilTcrltil iiv the iirili<'i|i;ir- nt'n-.i' 
to I'onsuiiiiuatc llic !=ali". 

Al^o in ciiiics uf iin "ival iifincnient iUiiilo iK'twocn tlic ]iriiicii>al au<l i; 
InirchiiM r prixMiiTil liv ilic ln'okrr, il' tlif |»nrclia-<r i» aWf and willing lo 
cany it (nit and tlio ])rinci|ial ntu.-cs nmler tlw' Statute of Framls tocxccuif 
it, ilu' ap'nt is <niitltd to liis c'oinini,'*sion. I!ut if ilu^ ]iur(.'lia^'r rcfu-od t^" 
rxcciitc it, of ciiiii'-c, tilt' MtriMit wiinld iKit !)(• iiiiitlcd to eoniiiii-.-ion, hwaUM- 
tlic iirinci]ial wmilil have n<< power to enforer- tlie oral ajrreeinent. 

(11.) IXAiiii.irv ui- Tin: I'lM.Niii'Ai. TO C'oxvk,\. \Vlii>re a li'ckir tind- 
a ]Mirelia:*er accoptalile to tlie )irinfi|)al, l»ui the sale falls tiiroiisih Ix-cnu.*- 
llir wife will not sipi the detd, Warriii;: her riirlii •:' d^'Wcr, the aai ii! i- 
entitled to hin eoniniission unless the airreenient wiih tlie ajreut proviiled for 
>iieli euutinirenev, Ciapp I'. Iliiplies. 1 Phila, '\s-2. 

If thrniiiili any other eaiHe. as, for iii-tanee, a defective title, llie owner 
is unable to complete the sale after a purchaser aeeeptaWc to him has heen 
foniifl, lie is liable for the eoiiimissioii. If, however, the asrent knew the 
defc't in the title, he could not then recover eotniiiission. 

Co.") .It sTiriAisi.i-: Kr.nsAi. to Ski.i.. In ninny ease- the refusal of 
the |)rinei]ial to ><■!! \~ justitiahle, — as where a hniki'r refuses to dis(dose the 
name of the inlendinj; piin-liaser to his principal, it was held that the latter 
had a rijrht to assume a private speculation of the projierty on the part of 
the broker hinis(df, and mislit, therefore, refuse to close the transaction with- 
out li;diiliiy for (•oiiiiui--ion. llaydei! r. (Irillo. :"."' Mo., .\i)i>. <'i47, >'•'•'■. 

.\lso if the ]iiirchaser ijitroduc<>d by the broker would not lie financially 
re-iioiisible, in the estimation of the jirincipal, to carry mit the undertakinir; 
or if the juirposes for which the premises were intenrled to be ttsecl wmild 
l>e object ionable; or fur any other justifiable cause of disap]>roval the pro- 
|>rietnr mny refiise to -ell mid ii"f Iv liable for coinmission. 

To irive the ai;ent tlie richt to commission without a sale, the refu-al on 
the part of the owner irni-t be niijiistifiab'e, or ajrainst the r.prreemetit with 
tlie aiient. 

(p.) Broker as .\ok.\t fo;: Purciiaskr. If a ])crson enjinires a real 
estate airent to ]iurchase a certain property at a certain price an<] agreed to 
pay a sjiecified comiiiission therefor and ilie broker secures siicli jirojiorty 
at. the asrreed price, and is ready and able to have the jiroperty deeded to 
hiiM. iind th";i -^ueb > nrtv refuses to lake the ))roperty or to pav the <tipii- 
l,"ted commission, the broker will recover his comnus-iion and a judsrment to 
that effect \yin\]<] n^t be <et n-^ide. Ackerman r. Bryan, ^.H Xel>. ,"1.". 

(i\.) IlROKr.R AS Aiii.N'i iiii; \tnr\{ Pi:;( iiaski; an'o Sta.i.i:!!. AUliouirh 
there niav be n"tbiii!r in the common law tliat make- it illesal for a broker to 
act a? aarent for both the buyer and the seller, and receive a stipulated com- 
mission from each, so lonir as he floes not u<e bis knowlodsre in a fraudulent 
manner nsainst either, btit the conditions would seldom l>o present when that 
would l>e possible. On other trrmnid^. bowevi r. the trnnsaetion is not held 
to be free from taint, Vcause be has nlreadv 1>een r>nira<r(^d for a stitmlated 
sum to make sucb tmn-ncfion wbeu the second iier^on approaches bim. Tf 
either party before payin2 the commission -iionld discover that be was actin£r 
as aTllt for the other pnrtv ab^n. nnd on tb..Tt .TV''l vefn-ed to i>:iv the 



«-oiiunissi..n. lie cxuld net recover it by Miii : uinl it' lif lin.l \m>\ i\u- com 
miwioii iiii.l tlmi diwi'ViTcil that tlio apcnt lia<l taken wunnii-ii.n fr.>ni tlie 
ether l>nrt.v. ho cnl.l i '<•- i- l':'-'- '^ < ' "''■'" ■'■'■ "f T'"''*- 

(r.) i;i:voKTNo l;i;i.ia;i: - Aiin' '. . \ vn '-i;ite ;i,u; iiry may he trr- 
iiiina'iMl in the samp way a^ are nttier aprencion: 

1. Tf the agreement oaUe'l f -r llie ?a1c to lio made in a ?pecifip(l time, 
tiio a.acney will end at that time, \mloss oxtondrd. 

■2. Dentil or insiiniiy. or "tlur iiicatiaeify of either principal <>:■ the 
apent. terminate-i the apeney. 

n. The in-olveiipy of the principal di-solves ihe apeney. 

4. A lepal revocation by tht> i.rincipal terminates the agency. 

The rcvokiin:. however, nm-t nut lie in bad t:iith ar< a device tor ciioapinp 
pavnient of ennimission. Meivtiidit r. Thayer. 4>- X. V.. S.K. <1l'0. f.22. 

The j>rineipal may wiilnlra\v ihe property from .*alo or nmy revoke the 
airent's authority at any time if the agreement with the apent is not for any 
definite jieriod and no rmo is ready to purchase; it would not be fraud, 
althouph it mipht not lx> fair. 

Tie cannot arbitrarily cut ..fT the aircnt"- niJlliority in the iiiid^t of what 
the broker can show would be a successful apency and then refuse oom- 
])enpation. lie can at lea-t recover for his time, lal)or and expen^oa on n 
quantum mrruif — as much as he ha= ( arned. .laekel r. r'aldwell. 1.^0 Pa.. 
266. 267. 

If there is frau<l on the parr "t ihc [.niu-ipal in the revocation of the 
broker's authority, and lie avails himself of the information procured by 
the broker in effcclinc a sale, the apent will still Iv^ erjiiled to his com- 
mission. He.ale r. C'reswell. ^^ Md.. 106. 201. 

(p.) Action- to IiIxovkis Commissiux. The action of the broker apainst 
the jirincipal on account of his failure to carry out the contract is for dam- 
ajrcs and not for commission. The measnn^ of damaires would naturally l>e 
the amount of commission that would have been payable under the contract. 

The contract between the broker and the which stipulates that 
the commissions are to be paid out of the purchase money cannot !«■ taken 
aclvantaire of by th.- ].rinciiial in an action to recover comniissions where 
the sale has been prevented by tlie fault or refusal of the principal. 

ft is not necessary for the pnndiaser who is ready, able and willinp to 
complete the contract in every resjiect to t.nder the amount of pnrclia-e 
money l)efore the broker briiips an action to recover his commission where 
the iirincij'al refuses to execute conveyance to the purchaser. Vauphan r. 
Mcrarthy, .'.O llinn.. 100. 

In an action to ricov(>r commission where 'he =ale fails to lx> made, the 
broker nnist show: 

1. That he had received authority from the ]irincipal to make such sale, 
and tliat such authority had not been revoked. 

2. That the ]iers(in furnished by him to make the purch.'is.' was willinf: 
to accept the offer precisely a.s made by the principal. 

.". That he was able to carry out the apreement. 



4. riiiit he was an clipiblc and <!iich nii one that tlio principal \va^ boviml 
in sroiid t'nitli U'twccn liini -nxl thr broker to lu'ccpt. 

655 Conveyancers as Ag^ents. 

-Xi'Xt to solii-itors, couveyiiiK'tTs urc the most iniiinrtant ninon;» ji^rfiit*. 
iind iiri' I iiirnsit'il with diitio!* that rciiuire i-xpcrt linowiedjto, tinliiilinj; 
fidelity and tlio ntinost care in drawinj; the dnnunent* that oinanntc from 
their hand^*, *n that th»y aeciiralely exprcfst the will and intention of the 
ic^pootive piiriies to the ii'j:reeiui'nt. iind lit the same time conform to tlie 
reqniri-menis <>{ Ixith the Stiitiite iuid I hi- eommon law, of the pinee of con- 
tract, iiiiil also of the phice where ilie contract is to bo performed. 

The fnliowinj; section iiiclieatort the varions chapters and section* in iliis 
hook that l)ear dire<*ily on those features, and also contains importinii -iiL'.re- 

656 Suggestive Reminders to the Conveyancer. 

S( i; 4''>> and 4(>ll for critical information in writinir ikiii>. 

Kxamine also •' I'nrchaser Kestri<'tin<; .\iiiiire of 'I'iile," section 40t!. 

Ivead critically " W'iio Shoidd Sipi " thx-niiK'Uts in ntfreciiiciifs, hasrs, 
deeds and )(•///.'<■. 

See section 14 as to when .seals sluudd 1m' used. 

Sec l.offal and lllej;al, Vali-'l and invalid Contract.s, .-o _\Miir client- do 
not rely on ajrretMnents the courts will not enforee. 

Study the '" Keipiisites nf a Mindiiifr Contract " uniil they Ix'comc cle;ir. 
.\lso note (!;», 70, 7."), 70 and S2. 

It is tlie sifmatiire of the piiurliinl that is needed on every document 
in his name. If it is .sijrned hy mi apent or .'ittorney you must know that 
lie has the le^al authority to sifi^n. 

Devour that short cliapter on " (inaranty mid Suretyshi]!." 

Every section of the cha|iici'- on " IJeal l*ro|ii'rfy " nii'i " !'• i-"1ki1 
I'roperty " affects the conveyancer's work. 

The cha]>ters on '" Pioniissory Xotes," " Acce]itanccs," and liie section^ 
rcspectiuic che(|ues should 1k> critically studied, as they are liable to crop np 
in any kinil of a transaction. 

In writing lcas*-s, that whole cliaptrr nu •■ Lathll^r.! and Tenant 
sliouM l>e at the " tinfrers" ends" of the conveyancer, -o thitt the lease does 
not open the way for a needless lawsuit. 

The chapter on "Wills" contains alvnit every imIhi that i> ne.'t~-ary 
to ho noted, lie specific in tlie ]irovision that is nuide for the wi<low ; don't 
let a lejratee, or the wife or liushnnd of a leiratee, siirti as a witness ; anil W 
sure *o menMi'U that ihe estate is pivin 'n the executors !ji IriiM fur tlic Keii;- 

Where there are minor ori)lian cliildren. see section S2r> as to the 
namin!» of a jntardian in the will. 

Xote the special wording which rules in ilisfinjuisliinjr Ijetween valid 
iind invalid l)equest?, section S24. 

Tieinember the e.rrciitloii of a docnment means j'- si<;ninsr atid delivery. 
IVcnnunts have no bindins force until they are rluly sicued and lawfully- 
delivered. See Section l.')0. 

Tn deeds and mortfrnffcs the land nmst be correctly and iiiinufely 




I'KIN< IPA! AMI A".| .\ 

Crnvrviincr. n.siurtiiij: roiil < -i"to miwi 1m- in...l.' to will, tho 
InwR ..f Ih..' I'rMvinro or i-..untry in wlii<-li tlu' ImihI i. .imati-. ..iIutwiho tlu- 
{locmnciits cttiM iHit Im- rciii-tcrcd. ,1 

Insirmn.iit- alr<•(•liIl^' ].. r-n„al |.r..|M;rl.v imixt >k' r.>.M.-U>n.l m tU.' pr-p.-r 
ofKco. otherwise tlnv are voj.l ajiniii-t lliinl parties. 

It is Jio mailer wliero tl..' parlies t., ;, eHt.iniel live. ..r tliey are 

Urili^li Mibiwts <,r nlitns. , , , 1 1. 1 

Ini.roperlvl.el.l/.i /n/.s/ U,v .\ for 15. .\ is li.e l.-^ai aiwl 1. tl'.- 
...M.itMl.le o'vn.'r. «n.i the instrument ereulin- the trnst .honhl .fate whether 
h.'.ih tin- lev'al mil <<|<iilahle owners must si-n the .lee-l in ea-e ..f sale. 

657 Tclepraph Companies as Agents. 

1-,1,.,;,,,,,1. ,,„Mpanies are apnt- ..f th.' of the messn.L'e. ami l.nel 
him in contra.'ts nnnle with the neeiver of ih. m. ssaire thn.U!;h sueh me. 
«npr. If the t.'l.'prni.h company fail to properly .h-liver the mossapo or it 
i, make a mistake in transmitting the messafie an.l loss .K-enr., the sender 

m„y re-ov.r fn.m t!,e eninpany whatever l-^- h ■ ..■ •• > - '-"'"■' fn.n. the 
iieirli^enee of the eoiiii>any or its employees. 

G59 Common Carriers. Three Classes. 

1. I'erson. who earrv ^on^U without ehar^v, meivly to acco,nmo,lnte. 

l{ in-s ,x.cMirs while ii l'- are in their .-hariie they are only hal.le tor 

.lamases. if thcv are ■rnilly of very frross m-ul if.'eivo , , , 

•' ThoM' who earrv ^hmIs privately for lilrr. 1 hat is those who .lo n^t 
make it a husiness to earrv -oo<ls. l.nt .h. -o oe<-asionally an.l take pav |ov 
it when they .!o. Su.-h persons are lial.le for mere earelessnoss or eonunon 


:? The Common - 111 

rarrier for hire. Railways, expres.s eompanies. st.,,ml.oats an.l .lra>- 
mrn. earter-. Iransf.'r c.miianies. etr.. are roninu.ii nirncrs. 
G50 Relation of Carrier to Shipper and Consignee. 

Wh.-n ih.' -Her .l.ip- t; 1- t- tl.,- ,,un-ha-.r im hw nam.- an-l .Mivei- 

, th,' earri.-r ..r whartinjrer. ih- i.nn-l.:i-.r i- .h'emed 

(imr.'V i- ih. :i'.;vnl in -n.-h case ..f 

jiirence. if l.iss oreurs. 

(\irrier is wli.. hoi. Is him-.-lf .mt to the pnl.lio as a 

1I10 way I'ill t 

I.) have po-s(ssion. 

llie ],ii nil user to receive possfsnion 

The carrier or wliariiUiXiV 1- 


i.w!i nam.-, tii" cirruM' is 

If. h.iwever, the seller -hiii- the jrond- 
th.ii the affpnt for the seller only. , , ■, ■ ,, , , t 

T„ e^tal.lish the fa.-t that the \ o 'lamnfre.l irhilr ,» Ihr AfUy/s- ot 
ihr ronirr it is snflieient t.. show that the company receive.] the p> in 
apparent iro.i.1 e..n.liti..i. an.l d.'liveiv.l them in ha.l ,o„.l,ti..n, an.l thes.^ two 
facts nnist he prove.l. 

When poo<ls are a.vepte.l at the ..wnei-V ri-k ..t hreaka-rn ami 
nr.t ii'clii.le .lamasre caused hv necliseiife of ih.' .^.■mi.aiiy (I'l.! 
niini..n F.N. Co., nXQ.. 11 r.. Sec. 270.) , . , • , 

Th" c..lisi.'n(-- (•aini..t n-fiise t.. r.reiv.- the l'.->o<1s fr..m ill.' .'arrier !>«- 
cause tliov were damaced. hut has his remdy in an acti..n ..f .I.nnMir.'^. TTnl- 
erow r. f.e ;Me.,n-ier. 21 TJev.. T.e£t. 28. 

The acceptance of the !;..ods and payment of the transportation charges 
vHhovl prnlf'Kl extiu-nish all ripht of action acainst the carrier: unless th<' 
los« or damage was ..f such a nature that it cuhl not Yn- known at the time. 

s. it .l..e' 
n r. !>.- 


i,' Ions or .UOiage be- 


Thr claim, tlx^n, must U .-l- vifhout <i'-hni :. 

(•OHIO* known to the claiinunt. 

GGl Common Carriers Are Insurers of the Goods 

\ViU comnum carrier, th. lial.llity for 1..-, ^r JaniaR. '»'5'"f '^^ 
n.diK . . . nnot bo .'va.lo.l, no n.attor what conAhon, an- P-"^;' -,. . 

Voir-l v.(\. T. U. Co.. 11 S. ('. R. 612; Chalifoux v. C 1 . K. C o.. 

i;.. :-. (}. 11.. :;:^i. 

6G5 Limitation of Liability. themselves from 

AlthoUL'h .•oii.mon cirruTS cannot i.% .ontr.i i .v i 

company for f-arnafco and the >.\\VV^ r sign, o amount ex- 

:S ;r:' ,t"s:i;!, "rt::.:.';::"»"il s- ..... . . < .... :.. ».... ,.».- ^c 

,i,M " l", if ia:'ns...r .1 =1. I'™™ -' »""- ^"^'^ "" """''■"' " 

"°'''"it 1,». tf. „o,i<h.Wo B<Hxls. as frost frnit. "«„r thrmijh „nroa«.n.blc 

• ^V frttv- n re them u4 through .heir unr„line.s. the co.npanv 
"'"T "ablr But i iurv results through nedigence of the ooTupany or its 
„not aablr. J;'; '^'^fective accommodations, or through the car bo,ng 
Trl'itVrl iri.' eti et^ ^vhen no negligence occurred, the con.pany, 
as insurers, is liable. 



(c) Limilino LialnUty Beyond L,ne. Th,. nrndition <,n th,- back <d 
a sbi,., bill immg the ,M„„y,„„v fp„„ ii,,i,iii„. ,-,r .IHavs, <„• daina-'c c.f 
KOod.H aft.T fh.'.v arc .blixcr,.] t., a .onn.ctini; 

,;„„ 11,,,, - '""' '" 'x' >"ii'i'i<'<l to (icsiina 

Hon ha- lH...n li..l,| b,v ,„ir ( ana.luui ('<Mirts to !«> bin.lin- ,,„ tb, shipncr 

111., shipper iiiav rmnvr .la.nagcs for I,,.s or inj.irv from the 
on \\\i,m- line the los.s ofciirriMl. 


U\) Liiihilili/ Afii 
)niarv for 
f.f their arrival iiii.l thai the 

"■'■ ■''■'•""/ of Goods. ();i the arrival of ffoods it U 
n.stomary tor ra.hvay an.l ..xpn ss ,.„.,paui,..- to give notice to the (w.nsignee 
, . ,.;-'"" '^ "■'" '"' -'"'••■■I an.l will rciiiaiii at the risk 

of the consign,.... b. haluhty of the carrier, as in.nrers. ends when the 
goods reach tbcr,nation, and when place,! in th.. freight or storage 
house the company rh.n b,....,„H.s liable as n o: 'y which is 
liab.hty for loss that may ■ wnv tbroUirl, tb.'ir ncgUq>'nce. Ami in .sn..h 
.•as..s the cons.g,u.e is r,..p,i,.,.,l to ,nak.. ont at I.aM a pn,.:a facir case „i 
iH'ghgence l)efore lie coiil.i recover damages. 



670 Master and Servant. 

1 lie nlatin,, snb>i>ii„j, befw.^en master i-id servant is ir many respects 
tti.' same as flia; subsistitii: iHtwe.-ii principal ami an.nt. 

Til nnler to constitute a coritra<.t ..f hiriiitr and .servio tliere must be 
eiti.r :m .-.rprc^s or n,,plird mutual engair.MHnt bimlin- one party t.> hire 
a'|d r..imine:-ate, an.l the .,ther to serve for -o,,,,. ,b t.rminat,. tii,,,.. "in cases. 

it optional e,th,.r for th.. s.M-vant to serve or the master to ..mplov, is 
nfi ronfniil ,,f ^Tvice nnd bire. 

671 Contract of Service and Hire. 

Oral as uvll as uTilt.n agn...ments^,.n master and s(.rvant and 
hetw,.,,, master and .journ..yman .ir skiile.l laborer in anv trad,, or ealliu? 
are th.. t..rm e.vceeds one year. 

If for a longer peri..d than one year it must b.. i„ writitii; and signed bv 
the con racfng parties, an.l if for a .shorter perio.i than .me year, buf which 
does not c<,mi„en,.,. in time to be eomplet...! within tb.., i, is n.,,„in.,l to 
•»■ in writing. ' ■ 

Xo volnntai-y eontra.-t .,f .s.-rvice .hall b,. bin.liiii- ..ii eitbf.r partv f.,r a 
longer time than nine year.s from date of contract 

,r„ t" -ll' 7^'''"' '""T-'l ^"* ^''■'■" '"«'''' f'"- '''■•'" '"■^^^•'■™ ""• I'arfies a con- 
r t will ,,. ,,rrs„nu.d .f the service i. performe.l. unless it is with near 
r..|ati\e.s, as with jiannf or iin.'l... 

.r service has be,.n performe.l with.ut anything being said alv,„t wages 
rhe aw presume, that the partus agreed for the customery wage, for that 

l-ther a contract of h,r,." or "an agnem.nt t.. pay wages" where s.-rviee 
1. r..ndere,l with n,.ar relatives. „s a par.nt or uncle. Irr such cas,^ n ix 




,.n.«t*..l hiriiitr 1.1,'^ Ik- i>nnr,l in ur.lcr to .upjiort a claiin f t wagrs. Wh.-re 
;, is not <p.ri;.ll.v iitrrriMl t.> the contrarv. wages woul.l he inivable at tlie c.ia 

"\ plUon afinciim to -rrvc as laV.rrr nr clerk eami-t U' ecmipelli'.l to 

fultil his afrrc'iiient, hut <la.iia^'es may Ik^ n v.rcl f.T breach of tl'.c contract. 

A wrson afireeiiiir to hin- another for a .lay, week or month cannot be 
oompelle.l to furni-h work, hn; if the one hired presents himself for service 
each 'lay lie can collect hi- \vaf:es. 

672 Form of Agreement for Hire. 

Tins AoKiiMiM. ina.le on ,hr :i.-.l .lav ,.l April. l!M«t, UMwccn -Mm 
Smith, ..f (irantiiam, yeoman, of the tlr-t part, and .lamer IJohmson, of St. 
< ';ithuriiies lahorer, of the second ])art. 

Witnesseth that (he ])artv of the seeon.l part a^'rees with the party ot the 
first to serve him a- a farm hd.orer and -cucral s.^rvant tor the period 
of one vear from tins dale, and in all thin.L'. to faithfully observe and do all 
the reasonable ui-he> and command- of lii.. party of the hrst part. 

And the parlv of the tirst part agr«s to pav the party .d the second pan 
one hundre.l and iiftv dollars an.l to board and lodsje tlie party of the second 
part during said period, and to cauw all neces.sary laundry wash to U^ done- 
f<.r him. Said money to be paid as follows: Fifty dollars ni six months 
from this ilate. and the balance at the expiration of sai.l scn'icc. 

Witnes- our hands the <lay and year aK 

Witness: ( 


H)ve written. 

•Tamkh RoniNsoN-. 
.(nuN Smith. 

673 Contract of the Employee. 

The emplovee must fulfil the ai;r. ement. what<'V( r that maybe, and to 
do this faithfuliv re.piires not only diliirence. but his careful attention, skill 
and forethoufiht.' The imidements, machinery or other jiroperty with wluch 
he mav be workin- or whi.di fall un<ler his care re.piire only proper use 
bv hims(df but also his care that they 1k> not stolen. The live stock that 
nuiv be .ntruste.l to him, humanity as well as Lis agreement requires tfiat 
he 'sees to it that tiiev have f(M,d and water and prop<'r care in general. His 

ma-ter pavs for his's/./// as well as lie .Iocs for his lime, also his diligent 
foreth(aight in planiiiuL' or exe.'uting his work. He is expected to obey all 

reasonabU' ord<rs from his master, t., !«■ punctual an.l c.nirteous. and to 

uork every day except Snn.lays and h.diday 
A tla-ratii violation of the impli 

agreement in any of these particu- 
r for .lischarge, as the case may be. 

lars r. lulci-- him liable t'or damaL'i 

674 Length of Working Day. . , , i 

riu.\ of ihe w.irking dav for farm lab..rers is not fixed by law. 
In th<' absence of anv agr.-ement between the master and s.-rvant as to what 
work the servant is to .lo. or as to the l.'i.gth of ,im,. !,.■ i- to work, whatev^T 
is eustomarv or nasonabU^ must govern: and the season of the year and 
nature of the work to b.. dou. must be taken into acc.mnt in settling such 
m' If a s.Tvant refuses to work when rcas.inably n questwl to do so, 
he may' on that t'roun.l Ix^ discharged by the master. Extra pay canu.U be 
e<,llecte.l f.>r working overtime unless there is an agreement to that etl.>cr, 
either express »[■ imiilii'.l. 





675 The Employee as to Holidays 

WlatluT tho fiiiployL-e is cvniiicllcd to work on Sunday and logal holi- 
days di|Kiids altop. iliiT on thi' atnciiK'ni madr, and tlir nature of the work 
to be done. Some kinds id" work iv(iuive something to ht' done every day; 
for in.-tauce, the liirc.l man on a farm would be eompelled t(^ feed and care 
for the stock on Sunday, milking cows, etc., unless there was an express 
agreement tn tlie e..iitr:iry. Tlie -;Miie would be true a- to the servant doing 

Unless there is an agreement, expressed or iiuplieil, to the contrary, 
employees, or apjirentiees, cannot <jrdinarily hi compelled to work on legal 
holidays, nor can they be dischargi-d for absence, or tVr not working on such 

Employees working by the wwk. month or y.ur are eiiHtled to pay for 
the legal holidays unless there is an agreement to the contrary. 

676 Master Liable for Servant's Acts. 

The ma.--ter"s liability is not boundless, but justice ami common sense 
fi.x certain well-defined limits. Tn general terms the master is liable for all 
those acts which are brought about through his instrumentality, as: 

1. He is liable for the acts of his servant jierformed within the scope 
of his enii)loymeut, however wrongful they may lx>, but he is not responsible 
for the wrongful act if it is no; done in the execution of hib authority and 
in the course of his employment; and, 

2. Where a servant is driving a horse, which runs away and does 
damage, if on the master's business; or. 

3. Where in executing his orders with reasonable care and does 
damage ; or 

4. Where he does an injudicious act and does damage; or, 

r>. When the servant even w.antonly does injury if acting within the 
sco])e of his employment; or, 

C^. For injury done by the s<^rvant through drunkenness, if acting 
within the scojie of his emjiloyment ; or, 

7. If hi' hi- <evv:i!ii t.i c.iinmir a tre-pa--. or if the trespass 
results from the action to Ik" done, the master is liable. 

He would not Ix^ liable for a wrong innc by the servant that was con- 
trary to his orders. 

The master is liable f.r tlie act of his domestic or menial sen-ant, 
whether it be one of omission or commission, neglect, fraud, deceit, or even 
of misconduct, if it Ix- done within the scope of his employiiiet.r <ir with the 
express direction or assent of lii< master, no matter how iniu-h he may abuse 
his authority. 

678 Servant's Personal Liability. 

.\ >ervaiit may ri'inler tii!ii-''lf liable; 

1. On contracts made on behalf of his master if he does n^t disclose 
the fact of lii.- a^'eiicy. When eiintr.aetiui in hi- "uti name f"i tlip eoi- 
ployer he should alwavs use words descrihinGr his capacity, as " nsrent for.'' 
or '" per," " pro," etc. 

2. Tor damasres committerl ..n Ix'half of hi< ma'^ter he is liable as well 
as his master, and to all third parties he stamls as a principal. 

l.lAIIILrrv Kolt I.N.MIU1-: 


;!. Tie is flso liable for a joint fraud e.nniiitted with his master, for 
IK, contract «i service coKipels a legal oUlij^ation to eominit a fraud or do a 


4. In crimes as well as in injuries he is liable, and cannot evade respon- 
sibility by saying that he was only a servant and acting under bis master's 


679 Employer's Liability for Injuries. 

All the Provinces have Acts .'orresp^^nding to the " Employers' Liability 
Act" and " Workmen's Compensation for Injuries" of Ontario. 

The " Employers' Liability Act " applies to eases of defects m 
machinery, or negligence on the" part of the employer, or of his foreman, 
superinternlent or other person whos«^ orders the workman is required to 
obev. Therefore, when personal injury is caused a workman through 
some defect in the structure of the building or the condition of the 
machinery, or through lack of j. roper protectiiiU for such machinery, the 
workman' has a right of action against the employer for damages. 

If a workman is accidentally injured through no fault of the employer, 
he eannot recover damages, nor'wages for the time he does not work, iiOT 
fnr doctor's bills. 

If anv maebinerv or any particular machine used by the em]doyee is 
not considered suitably protected, and he gives notice to the employer, who 
still requires work to be done with the dangerous machine, it is a cause for 

leavinsr. ■ v ui 

If anv accident occurs after giving <if such notice the employer is liable 

for damages. 

If the servant used the machine knowing it to be unsafe, without giving 
anv notice of its danger, he cann'>t claim damages for an accident. 

And according to the Workmen's Compensation Act, where an injury 
is caused to a %vorkman by reason of any such defect or negligence, no con 
tract or airreement made by the workman with his employer shall constitute 
a defence to an action for compensation for injury brought by the workman 
under that Act. K.S.O., chaj.. IfiO, sec. S. 

681 Notice to Leave. 

A person hired for a definite period, either for a <lay, a week, a month 
or a year, may, on the lerniination of the time, leave, or the master may 
discharge bim without giving any notice. 

Where the hiring is for no "definite time and the wages paid so much 
per dav, wc<'k. month or year, when cither partv wishes to teriniiiati'_ the 
contract the other party is' entitled to a " reasonable notice," but there is no 
statute Tcqnirinsr a nof'ii'c. The following is the customary notice: 

If paid by the week. 
If by thc^ month. . . . 
If bv the v( ar 

. .\ wiM'k's notice. 
. .V mouth's notice. 
.Three months' notice. 

The notice need not be in writing, but where tlie time is lon<r<T than a 
week it would be much better to give a written notice. ^ 

rtischarge may take place without noti.'c bv payment of a weeks or 
month's wages, as the case may be. 




683 Discharge Without Notice. 

1 lie ciiipldyiic 1.1 jircsuiiu'ii t,, fjiv(> liiic liiligcucc to the di'^charge of the 
(iiitio a-ssignwi to him, to 1h' piiiictual a.s to tiiiip, t<> oIm'v all rca.sonablc oom- 
mandji, and to Im? rcspon.sil)lc for all daiiiag*' paused by hi.s uogligcnce. If, 
thereforr, he violates tho agreement by habitually neglecting his duties, by 
lakintr absi'nce.-i without perinisrjion, or in any of the following ways, he 
may Iri discliargi'd wiih'>ut notice by paying; him the wages duo: 

1. Wilful (iisolK'dience of any lawful order of the master. 

2. Gross moral miseonduct. 

;). Habitual luirligence in bu.sinos.i, or condu'-t calculated twriously to 
injure his master's Imsinose. 

4. Incouijietenee in the liigher service where sjiecial knowledge or skill 
is required, or permanent disability through illne.^s. Temiv)rary illness 
would not be sutlipient cause for discbare;e unless the nature of the work neces- 
sitates it. 

The wages to be pai<l in <'a-i«' of a ili-*diar;re I'lr rather are not neces-^arily 
in ]iru],urtion to the time the servant has labored. The wages that are due 
uiunI Im- piiid, but the wages that may have In'en earned but not yet due, need 
not necessarily l>e ])aid. 

in AllHTtii, Saskatcheuan, the N.-\V. Territories, if a servant i:> guilty 
of misconduct through drunkeimess or absenting himself from hi.s employ- 
ment without perniission, disobiys commands or destroys the master's pro- 
perty, he may, upon summary conviction before a magistrate for one or more 
of such .•harircs, Im> liable to a fine of $30, with costs, and in default of pay- 
ment forthwith to ini|irisonment not exceeding one month. 

684 Wrongful Discharges. 

If an emploVd" be wn.ngfuUy dismissed, his remedy is an action for 
daniagesi against hi,-, master for the bn'ach of agreement or contract, and 
unless he can show a reastmable excuM' for di" 'barging he may be made 
liable for wages for the whole time. b\it the employee must not sit down and 
do nothini; and then sue for the wages at the eiui of the t<'nn. Tt is his duty 
to try and find emi>loyment, and if he ,suceeeds, then whatever wages he earn* 
duriiig the term would Iw dedticted from the amount of damages to be re- 
covered for the breach of contract, that is, the loss he actually sustained could 
be recovered. 

685 Employee Leaving. 

Tile niastiT's coiuniaihU arc |)i'esunied at time of contract to l>e rea.son- 
able. legal, and to be within the limit of work the sen-ant was employed to 
jierform. The imi>lement^ and m ichinery are suppo.sed to be suitable for 
that kind of work, and >o jirotcs'ted as to ho rea.sonably free from danger. 
If. therefore, the master gives unreasonable commands and endeavors to 
enforce them, the servant has cause for leaving. 

A domestic servaii!, wrongfully quitting his master's ser\'ice, forfeits 
that part of his wages due since the last day of payment. 

Any em[)lovce leaving before the expirati.m of the week or month or 
vpar ns' !}'.i- c:>.s:- va.w \y-. ♦'■•r iust cause or who is illegally dismissed, can 
rwover waces for the time lie w.^rked. But if he cannot show a valid cause 






fur liaving or was disohargod for prDpor cauHO, he iiia.v net \y^ able to nx^n-er 
w K^t's pro rata for the iiortiuii o! llic lime AMi'kiMl. 

If the master (]<ks not pay llic waf,"»'s h* per agreement the s<'rvanl may 
procure a discharge and wages dne, hy placing the matter in the hands of a 
Justice of the Peace, who deaU summarily with such cases. 
686 Legal Proceedings in Settling Disputes. 

If uuv <lisagi-eemeiil e.\i-I< lietwren masfrr and -i-rv.inl, -ummary pro- 
cttding- ujav U' taken ix fore a -lu-ticc of the I'eace. 

If the Justice receives the evidence of the plaintitt he must also rec/>ive 
that of the ('efrndant. 

If to collect wagl'^ dm it must 1h' done within one month after the 
engagement ceased in Ontario, and in mast oi' t' •■ or-iinc^'s it is the same; 
hut in -Mherta and North-West Terri. iries three months are allowed, and 
if the master is in arrears wage, not e.xceeding two months, and the same 
has be*n demanded, or if he is guilty of ill-u-,age, ov if inijiropcr dismijisal, 
the servant may lay comjdaint before a Justice of the Peace or Magi.strate. 
who will investigate and nuiy order the di.seharge of stich servant and order 
the payment of the amount •hie not e.xceeding two months, but such pnx:ecd- 
ings mu-^t be taken within three months aft.T the engagement or employment 
ceased, or three mouth, after the last instalment of wages was due, whichever 
event hapi)ens last, in .\lb<Tta, Saskatchewan an.l Xorth-West Territories 
lal)orers have prioritv over all other claims an.l liens on growing crops to the 
extent of $7r<. 

in Saskat.-JM'waii, by amendmnit ..f llio'.i, tli,' amount i^ tlxed at *U'0, 

instead of fur two months" wages as formerly. 

In .Mherta, Saskat.'hewan an.l the North- West Territories, if the Ju.stice 
finds that th" s.rvant has U;n imj-roperly discliarged, he may direct that 
further wag(s be paid not exceeding four weeks, besides what are duo. If 
it i- -bown at the hearins that the eni].loyrr l,a- a eounter claim, and a nght 
to a .•ivil action against the servant, the Justice is required to transmit all 
the papers to the clerk of the Supreme Cmrt where the civil action shall be 
687 Alien Labor Act. ^ ^ 

Ac. rding to the Dominion Alien Labor Act, R.S.C, chap. Oi. 'It 
shall be unlawful for any per.son, eompanv, partnership or corporation in 
anv manner to prepav the tran^iK)rtation, or in any way to assist, encourage 
or' -^>lieit the imporiation or immigrati,m of any alien or foreigiier into 
Canada under contract of agreement, parol or special, express or implied, 
made previou- to the importatbm or immigration of such alien to perform 

labor or -er\ ice of anv kind in Canaila." 

\nd if such alien. . n-ai^cd l.efo.v eulerina Canada, o,- -o assisted in 

':,s pas-a-e, enter, upon bis employment, it ivnd.'v, the employ, r t,. a 

penalty of not les.-^ than $50, n.^r more than $1,000. 

The f.irfeit mav. bv the written c,^nscnt "f the Judge of the court in 

which tJie action is intended t.. be brought, he sued for pnd recovered 85 a 

debt bv anv person who tirst brings his acti.m. Se,,a.ate suits may ^ 

instituted for each alien or foreigne- who is a partv to such contract or agree- 

raent. See. 6. 



The mastrr of any voa.-;o1 who kiKiwiii^'ly 1>rinp» into Canada <>n s\ich 
vessel, or permits to lie landed from any f.ii-eign port or place, any alien 
laboror. mechanic or artisan who, i)revi<ms to einliarivation on jiuch vessel, 
liad entered into siieh eontraet to perform labor in Canada, is liable 
to a penalty not exceeding $.'>00 for each such foreigner, or to imprisonment 
fi'r a iirin not exceeding sis niontlis. 

The Aet only npplie.-^ to such countries as have enacted and retain m 
force similar ali( ii labor laws applying to Canada. 


Foreigners living in Canada temporarily may contract witli foreigners 
to aet for them here as private secretariee, servants or domestics. 

Also anv tirm eii;riii.'ed in a new indiistrv n'-t at tlie time established in 
Canada may contract for and bring in skilled labor f-r tliat pnrp>se if it 
cannot be obtained in Canada. 

Th.' Act does not apply to professional actors, artists, lecturers, or 
singer-;, or ro yx-rsoas emploved strictly as per-oiia] ..r domestic servants. 

Persons may also assist any n.-mber of the family, or relative, or per- 
sonal friend to come from a foreign country to a ]H.sitl<.n here if the purpose 
Jq tri l>ecoine a citizen of Canada. 



692 Partnership FirmE. 

Partnership is a contract Ix'tween two or more persons not p.n incor- 
porated company, who join togetlier for the purjiose of conducting a certain 
business, with an understanding to participate in certain proportions in the 
profits or losses. They may join their money. go<Kls. labor ami -kill, or anv 
or all of them. Firm, Company. House or Co-partnership are all synony- 
mous terms used to re]>resent a partnersliiii business. 

They are formed by agreement e.f the parties, either express or iviplird. 
The express may be either oral, written or under seal. The test of jiartner- 
ship is a " common fund " and " a community of profits," hence, in any case 
where parties are associated in business, if it is necessary to prove the exist- 
ence of a partnership, about all that is needful to do is prove that there is 
" a common fund " for el. ■ parties associated, and " a community of profits," 
and it would be difficult for such parties to establish the fact that there was 
not a partnership. 

Tartnersiiip may be formed for commercial eiiter])rises. mannfa<'tin-ing 
rjid mining in all the provinces and Xewfoumlland. but not for banking, 
railway construction, or insurance. 

fv. .Mlx^rta. Snsk.itchewan. Xorth-Wost Territories and Rritish ('i«!um- 
bia no L'enrral partnership can now be carried on composed of more than 



twonty persons wiih..iii registering as a company, hut the other Provinces 
liavo no restrictions as to mimlMT. 

Tn Xcwfoundlnnd the number is ten. 

Ii- Quebec partncr.sliip firms have to pay a provincial business tux. A 
statement aoeonling to statutory requiroiwnts must be forwarded to the 
Provincial Treasurer on or before 1st day of May each year, and the tax 
i- payable in advance on the tirst juri<licid day in -Inly each year (Cliai.. "*> 

CDS Dangers of Partnership. . . „ . . ,, 

Tluit laounic (■.\|iiT^si..ii, ■• ravMH r-hip i> a i r slii]! to sail in," is tull 

of mff.iiine. It does not take lonjr for a dMiouest, or ineoiniwteut, or stub- 
born partner * wreck anv business. Tlie joint-s.ock company, the main 
features of which are given in the following chapter, is far preferable. If 
a particular name is specially desired, it is wise to register first as a partmr- 
•,liil), and thi-n inrnrporalc iinder same name, as the government would not 
be likely to refuse it or eluimr.^ the name, it Wuvz already reiristered and in 
11 ~r- by tlie same persons. 

094 The Partnership Name. 

Th. r, are no restrictions placed upon the choice of a firmnanie for a 
partnership, as in case of a Stock Company, except in (Quebec, where ;he 
name : mst not be the same as that of any oth.T registered firm, or so similar 
as 10 cause confusion. 

Anv individual who vvishe--, to add " & T,,." to his name, or to use any 
special name other than his o\ra, may do so by reQis'ornu, such name, the 
same a^ though a number of pers-ins were united, and he is liable to the 
same ,..naltv if he does not register within the specified time. 

In Quebec a person doins business in any name other than his own must 
not onlv register as a partnership, but all contracts, n.-tiees, advertisements, 
notes, cheques, invoices, etc., must bear the word "Uegi-tend. I he penalty 
for noffleet ^o to use the wor<l is a fine of $200. 

695 The Partnership Capital. 

Th.' .■aiutal a partner contributes to the pannor^iip may be in cash. reU 
estat.s personal i,roperty, or secret pnn-es.s of manufacture, a pat^nt "ght. 
copyright, labor, skill, or time in management, good-will of an established 
bu4ne.»s, etc., and .n each case be subject to the same liabihn. s. possess .qual 
privileges, and share profits or losses, aee/^rdins to the aCTcement. 

696 Two Classes of Commercial Partnership. , . ^ ,1 
There are two distinct classes of commercial partner.ship— General, an.l 

T i^.it.a-both bavins the same powers, but differing in their fonnation, 
registration and the individual liability of the members. 

In a qeneral mrtnership the members are not only .lomtly liable for the 
debt= nndobli-rations of the firm, but each member is also personallv liable 
for all th,' debts of the firm, if the partnership assets are not sufficient tx> 

pav them in full. . . j ^ n • _ 

For liability ..f imrtiuv. in a Limited Partnership see second foUowing 
section, " Limited Partr.r rohip." 




r M! i NKIiMlll", 

699 Three Classes ol General Partners. 

1. P'Tmant, silciii or slc'»[iiii>r imrtiHr is one who has an interest in the 
businiNH, hut whose nuim- ilocs not upprar. H' i- r( ]irisint( il i-i tho firm 
name hy " i; <"o."' 

2. Ostensible partner if one who ler^K hi-' naiiio !■• ilif tirui hut wh" 
has no financial intire«f in the hnxinesi'. 

."$. Actual purlncr is one who has h..tli :m iiit. n -t an.l whose name 
appears in the tiriu name. Tbv an- all ei|naii_v li:ilil<- !(» the puhlic for 
piut!iirshi|) ileht-, 

700 Limited Partnerships 

A i.uiiiicl I'aitiK i-hip is compor?e<l of one or iii"re persnns called 
(teneiMl jiartners. who comhu't the husiness, and one or more persons who 
contrihute in actual cash iiavnieuts a specific sum as capital to the common 
stock, who arc called Special or Limited partners. Such Special partner* 
are not liable for tlie debts of the jiartTK r-hiji husines? In-yond the amounts 
they eontrihutcd to the capilal. 

This Special (.r Limited partner must not have anythinc whatever t<> do 
with the Muinairement «( the hiisine-is. and take no part in the work. lie may 
jfive counsel to the tirm, examine the state and jirojrress of the business, but 
if he takes any part in its manafreuient he makes himself a (Jeneral jiartner, 
and thus ])ersonally liable for all the debts of the firm. 

His name inu^t not appear in the firm name by his knowledfre. "v be 
becomes a General partner. 

A continuation of the business beyond the time fixed for tin Limited 
partnership without iH'imr filed apain as at first, or a removal fmm the loca- 
tion of the business without being certified to and registered as at first, it 
becomes a General partnershij). 

Als", if there is any alterati.m in the namr> ..t' the partners, or in the 
capital, or anythini;- differiiii; from the oriirinal certificate, it is dwined a 
dissolution ; and if not fileil asrain as at first, it becomes a (Jeneral partner- 

Such ."special ])arliKr cainiot withdraw his .ytork in the shape of divi- 
dends, profits, interest or otherwise diirintr the contintiance of the partner- 
^hi[), and if he does he is Imund to rejilace if so as to keep his stock intact. 
But any such partner may receive his share id' the dividends or lawful in- 
terest on the sum couti iliiiti d liy him to the capital, if the payment of such 
interest does not reduce the oriirimd amount of his ca[)ital in the business. 

There can be no dissolution of such partnership previous to the time 
mentioned in the certificate until a notice has bctn tiled in the ofhce where 
the oripinal certificate was recorded, and in Ontario it inusf also be published 
once each week for three consecutive weeks in a local newspaper where such 
business is conducted and for the same time in file Ontario (InzcHr. 

In cases of in-olvencv Special partners do not rank as creditors until the 
claims of all others have been satisfied; neither are they personally liable for 
the debts of the firm Ix'yond the amount of capital they invested. 

Limited partnership is not <hemed to be formed until the certificate is 
filed. If buaine-- is don"> bofovi' filipjr it is deemed a General narfnerahin 
and all are individnallv liable. 




Evtry renewal of a Limitcl partnership i> r..|uirc.l f. !.<■ tllcl .xactly 
ihc ^aiin- ac Mt tir-f. otherwise it lieouiicf (lenenil. 

702 Civil Partnerships. 

I'inu- that an- ixH trading Hrnis, or engaged in manufacture or othrr 
e.,„ buM.ies., sueb a> a law tinu, do not come uu.ler the I""'"7"'l' 
law, neither mu th<-v give a promissory note as a hnn. I hey may all 8igi^ 
it, but it is only as a joint and several not.-, tho same a^ though they were not 
associated personally. The name is tn... in regard to duuvh and the 
ntllcers of social and Ixnevolent associations. 

I„ Qu.l...- Civil Partnerships .liff. r trom those in the other I rov nces. 
Thev ,nav hin.l th..use!v,vs as a firm, but th. liability is joint, and each one 
is liable to creditors in ..lual slu.res, uo .uatter what the, r respective shares 
in the partnership tuav be. The liability i.- .io.nt. nnd u.i j.nnt an. several. 
But in'ror,..n.-r..ial partnership th- is jnin. au.l several, the same 
as in i\ll the other Pn. vines, ('. ('., IS.l. 

704 Partnership Agreement. 

Some of the evil .ir.M.ts of a parite r-hip association might b.^ avertert 
bv a <anfi;ilv iireiniri'd written airre. iiunt .•nverinsr the following facts: 
■ 1. The nam.' in full of ea.'h me.nlK-r. and their places of residence. 
2 The nature of the business t^) he eondueted. 
:]. The place where it is to be conducted: that is. the name u{ th.' tewn 

.■r village, etc. 

4. The amount of capital that each partner invests 

^ What partners aiv qmrraJ. and whi.di are Special or Limited, if an.>. 

6 If any partn.-r makss no cash inv.stment. but whos.- .xperunce. or 
ckill. etc.. is ids investment, tha; -Imuld .Iso U- ins-ert..d. ^ 

7. The date of commen.'em. nt and .luratmn of th.- partuersu,!>, it it is 

'"' \' ludiJ -i;;;;! of w,.rk i^ agre,-d u,.o„ ,,.-,w, ..„ th.. partners, sucli a. .. 
one partner onlv to si^n all or.l.-rs for a.-cep, all -Irafts, issue the notes, 
etc it should be clearly stat.-<i in th.' agr.-em.'nt. 

' 0. P ..visi..n for settlement in case .^f th.. ,leath or r.tnvmen ..f 
partner, or fnr dissolution in ca=e of disagrfowvt ami fnrt,on should not he 

""''itLles these there are various ..h. r thin.s which could pn^ be 
en^KK le in th. agrc^m.-nt. such as that neither should l,.- a ..imli.hite or a 
• 1 ff;.n r,. on .K.tive i) partisan without the c.msent of the 
'^Z'-t. t 'm' tW plil^oLhould Imlorse paper for others, or becoine 
blil any person, without consetit of ti. tinn : or ,0 .-n.a... n, any other 
busin.-ss that would re.piire inv"stm.Mit. 

705 Form of Articles of Partnership. 

The foil. Iiil;- a,u'riem.-n, may serve 
points tliat should b.- inc.ludeil: 
article of HarCemCHt ma,,, tho tenth day ot Spptembe.. in the year of o„r 

'■""„^?i;^'c:o;^.;c:rHs;:":?ohrAda;is an,, Charte. Andrew, at, of the City of 
„a,nt,u,n,„. the o' Went^^rth. Provjn^^^^ ^^ ^,^^^^,^^ ,^^^ ^ 

WuiUfAS the sal<i^rar_ti-s IV'.'J^ Janlffn, Vnr. 'an,. Pale of Furniture, at Hamtl- 
t<^"aiore8aid; lor 'the ^t^rnr^nit' Bubjec^rto the stipulations,naf,..r expre,».d 

a guide, as it covers the chief 



Now, TiiERirKoBK. rurKK i-resenth witness, that each of iticni the »ald partlea 
hereto, rcBpcctlvelj , for himself, his heirs, executors and administrators, hereby 
mvenanlK. «lth the oth-r of th.-ni. his executors and administrators. In manner 
following, that Is to say: 

1. 'Iliiit the said parlies hereto, respectlrelv, shall henceforth be. ainl ro-.tlniia 
partner.^ toij'thi r In In- s.ihl htisliioss iit Ihe Mnnufiic ture and Sale of Furnltiiie. for 
till- full tirm of Five Years, lo be conujiileil from the ti nth dnv of Seplember. one 
Ihousaiul nine hiimlvd and t<'n. If the said parties shall so Umii live, subject to the 
provisions hc-elnafter contained for determining salit partiiershlp, 

2. 'i'hat the said business shall \>e carried on under the firm name of Th-' Ham- 
ilton Furniture Co. 

3. That the salil parties shall Invest capital as follows: George Carlisle, two thou- 
sand dollars, cash; John .\dains. llfiecn hundred dollars, lash; and Charles Andrews, 
nine hundred dollars and tools and machinery valued at two thousand dollars. 

4. That the said partners shall he enlliled to a salary In lieu of services, as 
follows: (ieorce (VirllKl.-, as foreman of factor.\ . twentv dollars |H'r week; John 
Adams. a« hookkeep'r. twenty ilollnrs per week: and Charles Andrews as salesman 
In ttie store flftec'U dollars p.-r '.vpI; 

5. That the said parties shall funh.rmore bo entitled to share the profits of Ihe 
said business In the p.oportiiui following, that Is tr sav: According to the respective 
investment at commencement for the first year, and according to the net credit of 
each at the beginning of each .-;ubHe(iuent year: 

Anp that all losses in the said business for any year shall be borne by them In 
the same proiKirllon (unless the .same shall t)e occasioned bv the wilful neglect or 
default of either of the said partners. In which case the same" shall be made good by 
the partner through neglect the same shall arise). 

fi. That the said partners shall each t"' at liberty, from time to time durini; the 
said I'artnership, to draw out of lli.' said business, for luivate use, any sum or sumi 
not exceeding for each, the sum of three liundreil dollar.- per annum in excess of 
salary, such snm.s to l>o duly charged to ea'h of them, respectively, anil mi greatc- 
amotint to be drawn by either of the said [lartners except l)y mutual consent; and 
interest at five per cent, per annum shall be charged to each partner for su.h with- 
drawal from the date of withdrawal until it Is repaid, or until next annual settlement. 

7. That all rent, taxes salaries wages and other outgolni,' expenses Incurred In 
res|)e"t of the said business, shall be paid and Iwrne out of the profits of the said 
business. . .. 

8. That the said partners shall keep, or cause to be kept, proper and correct 
books of account of all the partnership moneys received and paid, and all l.udness 
transacted on partnership account, and of all other matters of whi-h accounts ought 
to be kept, according to the usual and regular course of the said business which 
said hooks shall be open lo the lnspe(t;in of all the partners, or their legal repre- 
sentatives. A general balance or statement of the said accounts, stock in trade and 
business, and of accounts between the said partners shall be made and taken on the 
first day of March In each year of the said terra, and oftener if required. 

9. That the said partners shall lie true and just to each otln'r in all matters of 
the said co-jiartnership. and shall at all times, during the continuance thereof, dili- 
gently and faithfully employ themselve,;. respecti-,. ly In the condui't and concerns 
of the said business, and devote their whol^ time exclusively thereto, and neither of 
them shall transact or he engaged in any other business or trade whatsoever: And 
the said iiartners. or either of them, during the continuance of the said co-partner- 
ship, shall not. either In the name of the said partnership or Individually in their 
own mmes. draw or accept any bill or bills, promissory note or notes, or become 
ball or surety for any person or [lersons, or knowlnt'lv or wilfullv do commit or 
permit any act. matter or thing by which, or by means' of which, the said iiarfner- 
Bhlp moneys or effects shall be seized, attached or taken In execution- and In case 
either partner shall fall or make default In the performance of anv of the agreements 
of articles of the said iiartnersaii). in so far as the same is or are to be observed by 
him. then the other partner shall r' it- sent in writing to such partner offending In 
what he may be ho in default; and in case the same shall not be rectified by a time 
to be specified for that purpose by the partner so representing, the said p.nrfnership 
shall thereupon at once, or at any other time to be bo specified as aforesaid by the 
partners offended against, be dissolved and determined accordingly. 

]ft. That In case either of the said partners shall die before the expiration of 
the term of the salu co-partnershlii. then the surviving partners shall within the 
six calendar months afirr such decease, settle and adjust with the representative 
or representatives of such deceased partner, all accounts, matters and tblne-« relnt. 



log to the BHid lopartntrBhlp. and that the said survivors shall rontlniip to rarry 
on thtno forth, for their sole bent-flt, the co-partnership business. 

In witnksh thkbeof th«> Kald parties hereto have hereunto set tluir liaiKln »nii 


Signed, Svaled and Delivered 
In the presence of 


Geoiuie Cahlihlk ^ 



706 Registration of Partnership. 

Kvery (iciiiTal ]i:irti)i r-liiji iimst >io rcpi^tcrrd or filcti within a ilffinitP 
tirao, which vario;* <-'<\w in \\w (liffcrcnt Provinces, or be liable to a luavy 

Limited partnership is not doiinptl to k' fonucil until the ct "tilicat<^ ift 
filr.l. If biisine-ss i.s .lono before filing it ia Qt-emed a Qci .;ral partnership, 
and the S|iicinl partners kronio liable for debts ((inall.v with the Cenc-ral. 

In Ontario I.iinited partnership inn?t be file<l at the oftiee of the ( letk 
of the Countj Court before eoiiiniencinp business; and a General partnership 
at the Count V Reiristrv Office where the business is carried ..n within six 
months after'the partnership is formed. The penalty for n^t registering is 
$100 to each niemkr, one-half to go to the prosecutor and the other to the 
Crown. The fee for repistoring Limited partnershio is 'J.'.c, and r>Oc. for 

In Manitoba fMiieral p.irtnership nuf^t be filed within six luoutlis. Vox 
the Kasi, n. .indi.ial District thev are filed at the office of the Clerk of the 
Court of Kind's I'.eueli, and fo'r the Western .lu.licinl District with the 
Deputy Clerk of the Crown aii.l Pleas. The penalty for not registering 
within the six months is $100 fine for each member of the firm. The fee for 
filinc is $1. Limited partnership to W filed in the office of the Judicial I)is- 
trict^in which the i-hic.' of busness is situated, and if the principal 
place of business is not in a Land Titles ilistrict then it must also Iv filed m 
the office of the Registrar of the rcL'' 'ration district in which it , . situated. 
Fee for filing, $1. 

In British Columbia General partnership must be registered withm three 
months with the U, iri-trar of the County Court. Fee for filing. $1 if not 
,,v, r -'no xv.rds. .niid 20 cent- for iv< rv 100 word- thereafter. Limited part- 
nership certificate must be signed b<fore a notary public and filed in the 

of!ice of the Registrar of the County in whieh the pnunpal pla if business 

is situate. Fee for filing. $2. 

In Alberta. Saskatchewan and NorthWesi Territories General jiartner- 
«hin must be registered within six months in the office of the Registration 
Clerk of the registration district for registration of chattel mortgaces in 
which the business is to be conducted. Fee fr.r filing. f.Oc. The penalty for 
not rcnsterimr within the time specified is $r,0 for each member .if the firm. 
The certificatf for Limited partnership must be signed before a notary 
public who will certifv the same, and then filed in the office of the Deputy 
Clerk of the Supreme Court where the principal t«lace of business is situate. 

Fee, 250. 

'in Yukon Territory General partnership must be registered in the office 

of the Ucistration clerk of the registration district vrhere the business ia 

, .tfd^vv--*-h=-H t'-'-'o months nfier formation. Fee for recristermrr. $2. 



Penalty for not rfgiHtoring within flu' two niontb.< 18 u liiir nnt i\i-i'i'iiiiu 
$'>i)<), and tliorcafti'r $21) a <lav wliilt* such default eontiuuea. 

In New Brunswick l)"tli (iiti.rul and Special partner^liiin iuumI Ik- nxis 
tend Inlun- loiiiiiiinciiin IiHtIiiiss, anil thi' ctrtitiiaii' iii\i-'t lie .-.ipied 1)V eaeh 
iiieniU'r of the tirni. Fee for forimr, :i,'ie. ; for latter, ,'i(te.. I, united |iart- 
nerslii|)s inu-<t Im- tiled in the otliee of thi' Kegintrar id Deeds of ihr eomit\ 
in which the princijtal place of biisinesH i« 8ituate, and when there are place- 
of biisincArt in dilTereiit eoiiutie.s, then a certified cop.v of the certitieaic iiiiist 
bc! filed in I'uch .such countv. A copy of the i-ertiticate must he piihlisheil 
for three notitliH in a newspaper published in the county wliere principal 
|)laee of business is situate, and an atlidavit of the pulilishiT of suidi pa|M r 
must be made U'fore a ■lustico of the I'eace verifyinfr tnoh ailvertisenient 
must bo tiliNl in same ofhee as the partnership is registered. (See Cliaji. 1 H, 
Sec. «. n. S., X.IJ.) 

A copy of the certitieate iiin->t al->.> hr pnl>Ii-lied two consecutive weeks 
m the lioynl llazcHe. 

The penali . for failure to tile the crTtifioato or to (lublisli it, as <iirected 
above, is a fine of $t;o, and $10 p<'r day for each day of -uch neglect after 
notice so to do from any creditor or interested party, m- the ("lerk «{ the 
Peace whore stich notice should be filed. 

In Nova Scotia t' ■ <ertificate to i)e tiii d iii the ollice of liie Urt-'Hinir "t 
l)<-o<ls within three montlis. The feo is 2.'ic. if m-t over two hiindrpil words. 

The penalty fur failure to resristiT for eai'li parlniT is not Ics-i than ■t'Jo. 
leir more than .$|tt0. Tlie certiticate for I,imit<'d parlrirrship must l)e 
Hcknowledpil by the |i«rties sipiiiiii it before a .1 iidpe of tlie Su])reme Court 
or a .liistiee of tlie J'eace and then tiled, after Ix-iiif; certified, in the otHec of 
the Registrar of Deeds in the county in which the princii>al place of businesa 
is ."situate. ;\t tlie same time and place imist Im- filed an affidavit by oii(> or 
more of either the (ieiieral i>r I,imit<'d partners declaring' fliat the sums speci- 
fied in tlie certificate had in ir'>oil faith In'en paid. As soon us such jiartner- 
.ship is rcfiisten (1 it shall be published ai least six weeks in the Roijiil (luirttr 
and one other newspaper published at Halifax, and bv handbills |Mist<d up 
in some public places m ibe township whin the business is carried on. 

In Quebec both (inieral ami Limiiel partnership, the declaration must 
be sipmed and certified before a notary i)ublic and filed with the Protbonotary 
of the Sujierior Court of the district and with the Registrar of the county 
in which the principal idaee of business is situate within sixty days after 
fonnation of the ]iartiiershi|). Failure to comjily ineiirs a penalty of $200. 
Foe for filing, .'lO cents. 

In Quebec evorv married person doing business a- a trader, whetlur 
alone or in partnership, is required to register within (it) days from date of 
commencing business or of his marriage, whether he is under community or 
separate as to property, in the otfice of the Protbonotary of the Superior 
Court of the district in which the business is car'ied on. 

And in case of either mmmiinitii of property or KcjxiroJion of (iroperty 
bv marriage contract, the declaration shall mention the date, the name and 
domicile of the notary before whom the deed was passed. .Xnd if by judg- 

mrrxi inr .icci 

1-11 -..;,-.- t!,- ;.. 

1. _ i..,_ .r 

,l..i.. ..( .1,, 



tiH-iii. un.l iiain.- -f ih.' .lUtrict in \vl.i. h tli. |;m.tit uiH ri'ii-U'red. C C, 

' In Newfoundland il." .'..rtiHcatc inu«t be acknowlr.lK.Ml Uf-rr a n-tarv 
nul.lf, wli.. 4i«ll .■.rlifv whrlhrr it wa^ unuh- in Xcwtuundlan.! -r "''["»'>• 
ri... .•.ititicat.. IS th.M tilr.l in Ihr ..tli.T ..f ih. C.-lonial S.-.T.t«ry. When 
then- ari' j.ia^'i'^ "f Imsinc-i,-^ in ditTrnnt .listriots a c-py of tin- c.-rtih.-at.' cer- 
titiod hv the Colonial S.-or.tarv must »k' rrconl.d in thr otli.-r of tlir li-tTMirar 
of Dvi^U for iwh (li^^tricU. At thi- time of filing tlir cprtiHcaK- an atlwlavil 
of onr or inor.' of the partn.r. niiwt !«• mixAv that the Minis sixrihcl m tlu- 

.•(■ ha.l Ix-cn in k I laith aHnaliy paid. Tl.e terms of the j.Brtner- 

.liip must also 1h- |M.hlish.,l at least in six eonweuliv,. issues ot th- hoyal 
(lazi'ttv after rejjistration, and in one or two otli.r papers as the ( olonial 
S«-erefurv shall desipnat«'. If t»'>t *" rcffister.,1 and so published the i-artn.T- 
ship shall !«• -ieenied a (i.neril partnership. The tonn ot «;<Ttih.-iite m 
similar to tlie on.- shown in this l-ook for T.imVed partnerships, tor a hdavi 
of newspajw r pnhlishers as to publication and nth-r fnrnis see ( onsolidate.i 
StMfiitej, Chaii. .'*!^. 
707 Form for Registration of General Partnership 

The deelaration lor re},'isl ration i.uisi l,r ..pu,! l.y -aeh nieinlx-r, cither 
jK'rgonally or hy proxy d\ily authorized. 

Wo dannw Siiiith and .lames Robins*in, of the 
Pkovisce of Ontakiu, I ^,.^^ ^^^. (,^^^_,^^,__ ,,^^,_,^,^, „,• \v..iii„;r,on. Province 

County of Wellington. | ^^ Ontario, henby eertify: 

1 That wr havr rarried on and n.N .id t- earry on the trade and busines.. 
of Carria^n. I'.uil,lin;i and (i<neral i;ia..k,nntlHmr at Onrlph. in partnership, 
under the name and tirin nf .Sniitli iV KobiiHon, , ,., , 

2. Tliat llw -aid partii.i-hip ha- subsisted -hk'o tlir I..II1 .lay 

1010. ,,11 1 

:i. That wr an- and i.av,- U-m sni.v iho -aid dav thr ..nly mrmh 

said iiartiKTshii 

of May, 
r- of the 

Witness our hands at (MirJiiii. thi. lind . 

;iv .if .Innc. i'."l'>. 
.Tamks Smith. 
.Iamis RoniN-soy. 

any of tho 
or in I'oin- 

The above for,,, of ,1, elaration is .dentieal in all the ,•o^ -s. as pn 
vided bv statute. Simply ehanpe the name of Provinee to si, 

IJu't in QueW.' tl,.. declaration must also state whether omdi o, 
partners aro married, and, if n.arried, whether they are separate 
Inmii.v a< to property. S, ■■ p,-.v.o„s s,.et,on. 

708 Form for Registration of Luuited Partnership. 

, We thr ,in,lersipied, do hereby <T,'tity that we 

rrovuK'e of » j^,^^,^, entered into eo-partncrship under the style or 

County of \ firm of (R. T>. & Co.), as (Groeers and Commission 

MerehaiUs), which firn, eon^i^ts of ( X. BX usually residing at^ ■ ^ ... and 
(a T.X residing --"^J ^ ^ ' „ -^^du ^ ^ S: I^^ • -^ 

p:!:;;:;r;i!^:- 1 (k.- Kn;U!;.^-ribnted s.,ooo.' and the said fo. n.. 



The Slid jiartncrsliip comnn-ni-cj on the dny <'L 

and terminatfd on the day of , Jl). . . 

Dated this day of , 19. . 

Signed iu the 
preseuec of 

T. il., 
Xotary Public. 


A. B. 
C. D. 
E. F. 
G. II. 

The certificate for a Limited partnership must be signed befor _■ a notary 
public, who shall duly certify the same. If any falsi- statement .s made in 
such certificate all the members shall becomi^ liable as General irtners. 

For registration iu Quebec the declaration must also si- whether each 
or any of the members are married, and, if married, whether they are sei»arate 
or in comnninity as to property. C. C., 1S34. 

710 Powers and Limitation of Partners. 

Kaeh Gemral partner, unless jiroliihited in the articles of co-partners lip, 
becomes a general agent of the firm and has power to act for the firm. 

He may bind the firm in all matters that c<inie within the limits of the 
business undertaken by the firm. For instance: If a firm were engaged in 
the grocery Imsiness a partner could bind '.[ firm in ^-uch transactions as 
would priiperiy beliMig to tli(> gr'K-ery trade; but he could not for anything 
jiertaining to a eoal busine-s, <ir in real estate, etc., or in matters for himself. 

Each partner can act for the firm unless he is jirohibited iu the partner- 
ship agreement. II<> may receive payments of bills and accounts, coinjiromise 
with a debtiir, or represent the firm in a suit at court, or lv)rrow money neces- 
sary to carry on the firm's business and bind the firm in each. 

He may make a note or accei)t a ilraft for the firm in the regular course 
of business, if the partnership agreeuu»nt does not ])rohibit him, or do any 
■ itlur net he deems necessary in the intercft of the firm. 

If a bill or niite is signed by one of tie firm, the firii. can be held liable, 
providing that two tbings can be jiroved; viz., that it was for the firm pur- 
poses, an<l that the jKrsim signing it had jirojier authority to do so. 

A proiiiissory note or acce])tance bearing ;1k' firtu name signed by a 
partner, althoutrh not given for firm purposes, will be collected if it passes 
before maturity into the hands of an innocent holder for value, but the 
original jinyee could not Imld the finii if he knew it was iri'.en for purposes 
not cnnected with the business of th(» partnership. 

A partner not invested "•'tb the right, and binding his co-jiartners, ren- 
ders himself liable to them if loss occurs. 

One partner cannot bind the firm by an instrument under seal unless he 
lias iKcn enijmwered by an instrument under seal to do so; fur instance, if 
authorized in the .\rticles of Partnership, which should be under seal. 

One nu'iuber of a firm has no ridit to sign ihe firm name for purpoeos of 
suretyship or on private account. Fie must not employ the ])roperty of the 
firm for his own private use. Ho must not pledge the credit of the firm for 
his own 7)ersonal benefit. Tie mut not give a firm note in payitunt of a 
jirivate debt. -Ml such betrayals of trust violate the partnership compact, 
and iifTord ground- f'-r a 'IJxsnhiflnv, 

KliTUil.M. I'AlIT.NKIiS. 



I'iiniur ciHiiiMf l,.pilly iriv,. a iiin-tnir-lii|, rhvquv in pavinciu of a 
pnvat.. .l(-l.t withn.u th.. M.SMUt of ,lu: tinn; and a person receiving Muh 
ch.q.K. wonid b.. liable to tli.. firm, ,.r ihe tirin-s oreditors, for the ai.;ount if 
such partner conceal..,! the transaction from his partners and did not account 
to them tor the aniomit. Siudi party taking Mich a chcfiue is prcsin„r,l to 
know the laws of ,.artii. r.lii,,. and i,s under obligation to make inouiriea 
whetlicr the ,,ariii. r ha,] aiithnriiy fr.mi the tirni f,, issue such clieriiio. 

711 Partner Selling His Interest. 

A |Mi-;ii. 1- -hoiild ]„.i Mil lii- interest without the o-nscnt of his asso- 
ciates, it lie sli.uild .-ell wiihout such con.sent it voids the partnership agree- 
nient, and a dissolution must take place. The remaining i)artners mav accept 
the new member, but it maker a new partnership an<l must be n-gistereJ 
again, even though no other change may be made in the articles of agreement, 
than substituting the new name for the fild. 

Where no ti.xed time lias heon agreed upon, a partner may dissolve the 
]iartnirship at any time by giving a reasonable notice of hi.s intention so to 
do to all the other partners. Where the partnership was formed l)v Deed, a 
notice in writing, siLiied by the partner givint' it. is sufficient for the jmrpose. 

712 A Partner Retiring. 

\ retiring partner from a partner.-hip iirm. in order to jirotect himself 
from the fiilurr Hahiliticft of the tirm. must, in addition to the a<lvertise- 
ment.s already mentioned, register a declaration of th<' dissolution at the office 
where the partnership is registered. 

This, of course, does not free him from previous llahilitlcs incurred 
while ho was a member. Xothing but a release from the individual creditors 
can free liim from tlio jiast liabilities, and from the landlord to protect him 
from pa^nncnt of rent, and the covenants in the lease. 

713 Insolvent Partnerships. 

.V |iariiiership tiriu Incoming ins.olvent. the entire partnership propcrtv 
would be taken first to satisfy the firm's debts. If this di<l not sati.-fy the 
claims, then the private property of all or any of the General i)artners would, 
subject to ])riority of the partner's jirivate creditors, be taken to satisfy 
the debts. 

714 Suits Against a Partner. 

Ill -M:(< ag:iiii^t an individual partner for a debt contracted either before 
or after the partnership was formed, the sheriff may seize, under execution, 
the partnership goods and sell the d( btor's share, whatever may be flic diffi- 
culties which arise thereafter. 

The Judge may, however, on a|>plication order that such partner's in- 
terest may be charged for the payment of the debt, and may also appoint a 
receiver to receive such partner's share of the profits to apply on the debt, 
but such course is wholly optional with the .Tiidge. Harrison v. Harrison. 
14 Practice Law Reports. 430. 

If a receiver should be appointed he cannot interfci-e in the raana^'o- 
ment of the business, and cannot compel the partners to show him the liooks. 
The other partners are at liberty to redeem surh partner's interest that is 
cliffirged. and in case a sale of the interest is ordered they may purchase it. 

\ partner cannot sue the firm, a.s that would be in reality suing him- 



self, for the tinu d... - un, .mm wui.m.l Lin,. If, howvcr. ho has a privato 
debt or flaiin HLMiii:-! Uu' tirm which the hrm will iwt pav, h<- may aa^igu 
it to a third pii .v and they may sue. 

715 Dissolution of Partnership. 

11,.. inll^.um^ a,.. »in..i.^ ih.' 'h.u^s that call lur a dis^nluliou ot part- 


1. liisulvciu-y c.f one of the partners in his private luisineM. 

2. Insanity of one of the partners. 
;5. Death of one of th," partners. 

4. Mutual consent. 

5. Marriage of a fmiale pann-r m some of the i rovince.-*. 

The alK)ve events do not neeessitale a dissolution, but they are a sutticient 
cause, and .f any of the firm ^h^uld demand a diss..lution U must be com- 

plied with. . , 1 • . 1 ,!,„ 

In (Juebee the drath <A a panmr terminates tl.e purtnership. and also 

the rijrht of the partners to act for the tirm_M, the absence of a 

si)eciaT attreement to the contrary. (.C. C. 1S!>2, 180" , ,. . ,. „ 

The; are also dis,solved bv .xpiration of time, by .. ■' completion of the 

work for which tliey were forincd. -r bv a d-vrr.. of the court. 

716 Form for Dissolution by Agreement. 

The follow, n- l.n, f ;,t:n. ,„..,. M dissolution is sutHci.'iu. and may be 
endorsed ou the back of ,he partnership d...! or artiel,^ ;'\;'*^'";'™l;iii,. 

We, the undersigned, d.. hereby .Mutually agree that thr part u rs i p 
heretofoi'e subsisting iK-twc..! us. as Furnitur- Manuta,.turers, >''>'l^'r ^^e 
within Articles of Co-Partnershi,., be and the same is l»'^>-';l'->y ';*'r; ' : 
except for the purposes of the tinal liquidation and settlement of the bus. 
ness thereof; and ui.on such sc.ttlem.nt wholly to cease and de 

In witness whereof we have hereunt.. set our hands and seals this 

day of \.l'.. !'•»• 

Signed, Scaled and Delivered j 
in the presence of ^ 




John Adams. 


717 Dissolution by Decree of Court 

S.m.etu.u. panuer. tail p. agnv. and bv c.Uumal .piarrcdling and pu 1^ 
iniT in opposite directions the business of the partnership suffeis. t he v 
cam..., ine on a dissolution they may apply U, a competent court « "^ -^ « ^ 
an or<le, for dissolution. Th.. following w.>ubl be grounds up.,., which su. h 
an order may he .)btained: 

1. Fraudulent conduct by a pariii.r. 

2 Violation of the articles of partnership. , . . , 

:5. Unreasonable exclusion of partner from sharing it. ^h<' tnanau'cunt 

"''"r. Qu'ndlin. lo an extent to ren.ler it i,..p..ssible to properly and 

successfullv carry on the business of the firm. » ■.. , ^, 

.f Inabilit/of the partner to act, on account ..f p..r,nanent .Uness. or 

heine otherwise disabled. , , , , ., _ 

% Intemperance or immorality of a partner tha wouM hav.. .h,> 

of injuring the business, or uiipa"^^7^ 


I>IHS1)I,LTK>\ (II- l'AKTNF,li.Silll'. 


718 Form for Registration of Dissolution. 

ih. 'L^",T i ''' 'l"*?'"!'"" "^.^ Partn..rshi(, is n..i,n,-e,l to be nc^-nled i„ 

o„ an.l tho sM,m. tee .har,...l. The folh.un.. ,. a statutory f„nn ,,rov„i..,l 
ny tiic various J'rovinees: ' 

IWlNCK OK O.VTAKiO. > 1, Ja.nes Robi..Hon. fornuTlv a nH.n.h.r of tho 

ng an,l Um-ral J, ark.n.nlun.^ at (Ju.-lpl,. County of WVllinj^lon, under tho 
stvle of Rob.ns,,. i.. ( ,,, d„ h,>,,,„. ,,,„f,. (ha, ,h,. .aid partnership wa., on 
ttlf Jnl day ot ,Se|>teinlier. dissolve<i. 

Witness my hand at Ou,.l[,h, this the third dav of September, 1!>10. 

J wjKs Robinson. 

As a usual thing all the member* of the finn would siir,i ,he deelaration 
of dissolution to bo rogisterod, and in such -■aso ,he pronoun •' wo" instead 
ot 1 Jnmcf, Lobin.<on, rtc, wo.ild bo used at th<. beginning of this notioo 

1 he form as it is used here would U" suitable f„v a retirini: partner to 
rogi.stor It th,. other moinbe,-, ,,f ,he tirm di<l not file a declaration of di,- 

719 Advertising the Dissolution. 

bor firms whose business is eontlned to anv one Province, notice of 
dissolution would be given in the Official Gazette. 

For firms whose busines.s extends to other Provinces, notice must bo 
given in the Canada Gazette. 

It is also customary to give notice in th» local press and to send circulars 
to each individual tirm with whom business has been done. 

Jn all cases it is also nec'ssary when dissiilution takes jdaec before the 
term of partnershii) exi)ires, that a declaration of dissolution be filed in the 
othce where the certificate of i)artnorship was filed at its formation. 

In New Brunswick any change that takes place in the firm, or in 
of dissolution, a certificaf.- of such change or .lissoluti,,,, nui^t In- til..! within 
thirty days and published the same as at first. 

In Nova Scotia, besides the filing of the declaration of dissolution lus 
here stated, it is noccssarv to adv. rtise if four weeks in the Eoml Gazette 
and four weeks in a newspaper vvhete the business is located. 

Newfoundland also requires the publication in the Gazette, and one 
other paper for four weeks, b sides filing tho declaration of dissolution in 
office of the Colonial Secretary. 

720 Ponn of Newspaper Notice of Dissolution. 

Tile fnlli.wing is the iisiui] f,,rm of notice iuseri 
and local iiewsjiapers : 

"Notice is hereby given that the co-partnership heretofore subsisting 
between the undersigned as General Merchants, under the firm name of 
Dell, Austin & Co., of Brantford, Out., has been this dav dissolved bv mu- 
tual consent. All debts due to the said partnershiji are to be paid t^. \V. A. 
Pell at his office, 100 Main Street, and all partnership debts to be paid hj 

in the Official Gazette 

Br.intford. Tune 20ti!. I'.'i'O 

\Vm. a. Dki.i,. 
E. .S.r=TT". 
P. Dk Witt. 



It tile husiiKss were iiucinlt'd Ui he contiiiucil, aud lui rely u change of 
some of till pariinT}* tiiking place, the following uddilioii tu tlie noliee would 
answer : 

Xotice is hereby given that the en-jmrtiierslui) heretofore subsisting be- 
tween the undersijiiied as (iineriii Mtreliauts, iwider the firm naiiu i<{ Dell, 
Austin iV Co., at Hrault'ord, Out., ha.- been thi;. day dissilved by mutual 
consent. The business will hereafter be carried on hy \V. A. jicll and E. 
Austin, by whom all debts of the old firm will b" ].uid and t^, whom all 
outstaudini' acoo.mts due the old firm are to 1>. i aid. 

Erantford. -Ii 

.'II. r.iiM'i. 

\Vm. a. Hi 1.1.. 

I-:. Ai -liN. 

r. Di Witt. 

721 Winding Up Business Afttr Dissolution. 

Aftt 1- dir^M.lutiuii n^) partner has a right to sign the firnTs name without 
a j>ower of attiiruey. If a note has to be give;, tbe enly alternative is feir 
each partner to sign his name seijarately. 

A partner, after dissolution, has |K)wer to demand that the assets be 
used e.xclusively to pay off the firm's 
aiijiropriateil ))y the partners. 

iabilifie- iMfure anvthinir ean be 

HAi'TKi; XXIl. 

725 Joint Stock Companies. 

There are two methods by which e.irporations are constituted in Can- 
ada: (1) V>y sjHcial .\et of i'arliament, either of the Parliament of Can- 
ada, or of the Legislature of the Province in which the business is to ho 
eniidnctod : (•_') by l.<'tters Patent issued under the Companies Act. It is 
the latter only that eoines within the sc(.iie of this work. 

The incorporation of a Stock Comiiany may \^o effected either under 
Dominion or Provincial atithority. Banking, railway, telegraph, telephone, 
loan and insurance comjianies, cannot obtain a charter imder the Companies 
.\ct, but must be incorporated by Special .\ct, as the powers they seek are so 
extensive that special legislation is necessary to determine their limit and 
safcgviard public interest, in certain directions. 

Tn .\lberta, Saskatchewan. Xorth-West Territories, r>ritish Columbia, 
Xova Scotia and Xewfouiidland joint stoek campanies arc formed by TJe- 
ixistration instead of Letters Patent. That mr.iiod of form^'iirj a company 
will b(> treated at the close of the chapter, beginning at Section "fi". Tn 
other respects they are the same as those formed by LettiTs Patent. 

726 Advantages of Incorporation. 
.Xinoui: the advantages '.f incorporation tlie four foriwinr- are of 

he can do so s 

TlIK I'EnSl'ECTrs. 


turl) the business oi statiu <jf the company as it wniil.l in a partnership. 
( n Aiul, lastly, the limited liability of shari'holdcr-^. It the business 
not i)r(ivc sueecssful no one need lose more money than the stock he sub- 
scribed, thus differing entirely from an individual Im^ine-; or a general 

727 The Prospectus. 

In eases where capital is desired frr.m the public outside the parties 
imm.'diatelv interested in the formation of the company a Prospectus i3 
usuallv issued. This, however, is only a business circular to solicit share, 
holders and mav take any form the jiulgment of the promoters suggest. 
It should contain for its heading the name of the company, and set forth 
the prospective advantages and gains truthfully, as there is striiigent legis- 
lation and heavy penalties against 7nisiri>rcsenta{ion in the "Prospeetus. 

Thr Domiiiiou Company's Act and also that of Quel)ec recpiires that 
Cvrrv i.rosi)ectus or notice inviting persons to subscribe for shares m tlie 
c.mpauv must specify the dates and names of persons to any contract en- 
tered into by the company, or the promoters, dire<-tors. or trustees thereof be- 
fore the issue of such porspectus ; and every prospectus which does not give 
sucli information shall in respect to persons who sub-enbe.l for shares o-^ 
the faith of such prospectus be deemed fraudulent. 

In all the W.-tern Provinces the prospectus must state the date upor. 
which it was issued, .ind it must be signed bv every director or his d.dy 
authorized acent, and l)e filed with the Registrar on or before the .late ot its 
issue. The prospectus must also state on its face that it ha^ been so hied. 
In default of these requirements every office.- and agent who is a i.arty t.i its 
issue shall be liable to a penalty of $-2:, or every day duritur which -^ueh 
default continues. . 

In Alberta bv amendment of lOO^, Chapter ."., every eoinpanv which 
has lunr,. than ten shareholders, or whose debentures or other secuntics are 
held bv more than ten persons, or any incorporated company, the number o. 
sharehobkTs beir,- increased bv a mimlx-r greater by ten than the numlx^r 
of appli-.tnt^ for incorporati.m. must file the statutory Prospectus. an,l no 
subscri,,tion for stock, drl.ntures or other s-cunties obtained l)y verbal 
representations shall br binding upon the subscrd>er unless prior to Irs »o h,. shnll have reeeivrd a copy of the Prospectus. 

In Ontario, bv the amending Act of 1907 it is not legal to pay a com- 
mission or allow a discount to persons subscribing for stock or for pm-uring 
M,bs<Tiption for stock unless the payment of such commission is authon/.d 
bv the Letters Patent, and also stated in the Prospectus. Ihe amount of 
such commission must not exceed the amount authorized. 

Except as previously stated, no company is permitted to apply any 
of its capital or shares, 'either directly or indirectlv in payment of com- 
mission, or discount, or allowance to any person tor sh.ares or 
for pn^curimr subscriptions for shares. It is lawful to p.ay the eu^tom.ry 

""" Tir.»niario Act n.piiiv.- the fnllowin- information to be given in the 

Prospectus: .... ^ , 

'o) Names, calling and addresses of the original incorporators, and 

number of shares taken by each. 



(b) TIio (jualificatinn iinrl ritrmncriif ioTi of dire (•tr)r8. 

(r) XaiiK's, calling: and aiMrcssi- <it' thf jiriip-.scil directors. 

(d) Thp irininiiiiii suliHcriptioii required heforp any allotmi-nt of shares 
may be made, and tlit aniMUUt payalilc on ajjjdiealion and allotment of cBch 

(e) The time fixed when t'urther eall- may Ix- niadc 

(/) The nnmlxr atid ;imonnt ><( share.- ainl hi'tid-i i-j-^ni d for other than 
a oas.h coTisideratinn. 

('/) \an;:i and addrei-se-. of the vendors of jiroperly to the eomiiany, 
and the amount payable in cai^h, share?, bonds, (iebonttires or other secnrities 
to eaeh of sueh vendors. 

(h) The amount paid or payable for zood-will a? diptinet from other 
property pnn'ha?ed. 

(/) The amount paid or payabh' as commis.-<ion for siibscribinf; or for 
procuriufi subseriptioiis, and llie rate of all siieh commissions. 

(j) Amount of estimated jireiiminary expenses. 

(k) The promoters remuneration. <ither in eash, shares, etc. 

(/) Particulars of ail material contracts entered into within 3 years 
of the publication df tht> Prospectus, j;ivinsr dates, names of partii , and 
allowing o;iportiinity for insjiection of such contracts. 

(m) Names and addresses of the auditors, if any. 

(ft) Full particulars of interest of directors in any projierty taken by 
the company, and details as to the remuneration, if any, for services in the 
formation of the eomjiany. 

Every director or other jierson resiwnsible for the issue of a Prospectus 
tluit vicdates these provisions is liable, on summary conviction, to a penalty 
of $2110 :nid costs; unless it can he shown that he was not cosrnizant of any 
violation, or tiiat the non-compliance arose from an honest mistake of fact 
on his part. This section d(H'S not apply to a circular invitiui: existing 
shareholders to subscribe for further shares or dekntun s. 

In cases where a Pro.«pectus i.s published as a nt wspaper advertisement 
it is not necessary to specify the name of orijriiial incorporators or the num- 
ber of shares subscribed for by thi>m. 

In all the Provinces after ineorjioratiou, if the eoinpany in effect adopt 
the Prosiiecius by allottiii<: the shares subseriliecl fov on the strength i>f the 
Prospectus, then in all the Provinces the remedy for deceit in the Prosiioetus 
would be against the company as well as against the promoters. 

After a company has been formed and the stock previously subscribed 
for has Ix-en issiu'd, the purjtoses of the Prospectus are ended, and a person 
who subsequently purchases stock in the market cannot sustain an action 
against the comi)nnv f<ir his loss on account of misrepresentation in the 

When a person has subscribed for shares through frandident statements 
or claims in the Prospectus, the action would be for cancellation of the 
contract to take shares or it may be for damages. 

Filing the Prospectus. In Ontario every company seeking incorpora- 
tion wliieh has more than ten shareholders or holders of deb<>ntures or other 
securities must file a Prospectus with the Provincial Secretary. 

And every companv heretofore incorporated which issues stock to in- 



crrasc tlic nuinl'ir n\' -liiinlKpldcrs to more tlian ten Ix-vond th<' miniber at 
incnqjoriition, or which liar- (Icbonturts or other Mfctiritips held by more 
ihiiii ten jicrsons, irui.-<t tile :t rrospcctiis with tlic I'rovii-i-ial Secretary. 

Kvery rroupcctiifj must In- (lat((i, and iiiiist he sipned by every per.wn 
nain((i in it as ii dir«'<'t<ir or proposed director, or by his afrent authorized 
in writing, and must be filed with the Provincial Secretary before its publi- 
cation or issue, atid rvrrv I'rosppetun must «tate on its face that it has been 
») filed. 

All purchasers of stock or debentures or other securities are deemed 
to b«> indu<((i to be jinrchased on such Prospectus; and any condition stated 
in the Prospectus ti> the rontrary shall k' void. .\nd no subscrijition for 
stock, deb<ntnres or other securities obtained by verbal representation shall 
he bin<liiifr iiiM>n the subserilKT unless p.-ior to such subscription he received 
a co[iy of tlie Prcspectu-. 

728 How to Form a Company. 

.Mxiiit the first -fi |i fiikcn, eitlur by the s<ilicitnr. or any person doing 
the oflicial corri>spond< nee, is to communicate with the Secretary of State, 
Ottawa, or with the Provincial Secrc'tan-. as the ease may k, concerning 
;he fonnation of the company, who will forward a copy of the Act together 
with the neces.«ary instructions, and also a blank petition for the sipiatures 
of the applicant^. This is always nece?,sary, a.s the regtilations are liable 
to ho chantred by Onh r-in-Council, and it saves time to pet the information 
direct from the' Government at the time, and also because the blank form? 
cannot be (pbtained from any other source. 

If the business of the company is intcndid to extend to more than one 
Province, as, for instance, a steai.ishi]) line between Toronto and Montreal, 
then the charter should be taken *rom the Pominiin Government and the 
application shoiild be aildressed to 
The Honorable 

The Secretary of State, 

Ottawa, Canada. 

But if the busiiies;- wuld be cimtined to the one Province, as a mercan- 
tile firm or manufactory, then the charter would be obtaim J from the Pro- 
vincial Government and the apy)lication addrp=sed to 

Tin Honorable 

Till Provincial Seen tary, 
Toronto. Orit. 

Or Wiiinipej.'. or Halifax, or as the ease niav Iw. 
F<ir the Yukon, address 

The honorable 

The Commissioner of Joint Stock Companies, 

Office of Territorial Secretary, Yukon. 

The next thinp to be done is to opt n a stock book, which ^ives (he name 
of the company, the amount of capital, the numher of shares and the amount 
of each share. In this book the subscribers enter their names and the 
number of shares they wish to take ; when the proportional amount of stock 




has lu'cii tak( n, tLt> required aiuount paid in. aud tbe uoiiee given in the 
Official Uazctte, wliere that is required, ei)i)lioation inav be made for Letters 

Ill Ontario tlio stwk hook iiiti-f lie made in (lu])lirate, and f.iru-anled t<> 
til' rnivini'iai Seerefarv nlms with the petition and tlie nieni..randum of 

730 Advertising in the Official Gazette. 

'>''''"■' 'ii'' ;i!'i'lie.iti(.ii can 1„ niadi' for incorporntinn in some of the 
Provinecs. a notice of intention to apply must 1m' ijiven in the Official 
Gazette, and peneraliv in a local newspaper. 

Ontario, Nova Seotia and British Coliunhia do not require the notice 
in the Gazcttv except in special cases where the department directs that it be 

Xew Bnin=;wick. two weeks notice in /?o(/.7? Gazpttc, if the capital ex- 
ceeds $."..000; P. E. Island, two issues in the Official Gazette; in A!l)erta, 
Saskatchewan. North-West Territories an<l the Yukon, one notice in the 
Official Gazette, atid in three conswutive weekly issues of a newspaper pub- 
lished at or nearest to the chief placo of business for the compauv. 

731 Form of Stock Book. 




We, the undersigned, do hereby severally covenant and agree each with 
tlie other f.) beconic incorporated as acompany, under the provisions of 

The Companies Act, 1902. under the name of The ('oiupany of 

, (Limited), or such other nani" as the Secretary of State may 

give to the company, with a capital of dollars, divided into 

shares of dollars each. 

And We do hereby severally, and not one for the other, subscribe for and 
agree to take the respective amount of thi' capital stock of the said company 
set o]>posite otir respective names as hereunder and hen>after written, 
and to become shareholders in such Company to th(> said amounts. 

In witness whereof we have signed. 

Hate >ii<j PIa< e of Siibtcription. 

Name ol Subscriber. S.a!. 7„',„;,ntS 
Suits'^ riplion 



Retiilenc-e o( Subacriber. ! Name of Witness. 

The al>ove is the model for the stock-bofik if taking letters jiatent from 
the Dominion Ooverninent. 

Only two changes are necessary to use it for any of the Provinces. For 
instance, instead of saying the Companies .Vet. R..S.C.. inofi. use The On- 
tario CnmpnnieK Act., etc. Instead of sayinir Secrrtary of State, use Lieti- 



Twd sipnatiip.s ai l«iibt must U' on tLr pugo contiiiniug the agmiiicnt 
to take stock (a.s abovo). 

Kor Ontario and iiiidcr Dominion Act also the stofk-t)Ook Tiuist br in 
<luplicato ami Imtli .liiiili<-atc.-. forwanlol with the petition. 

If the subscriptions arc U» Ix- subject to any cnuditiona, such i-.m.litiond 
must be mri'tioncd in this agrwrniut. 

If prefcrcnco stock is issued, the conditions must be mentioned also. 

If a si-niatiire is by ])ower of attoriKV, stifh power tnu-^t U' filed along 
with tlie sto<'k-book. 

Witnesses mtist by atfidavit prove each sifmature. 

The stock-l)ook uiust show that the rccpiisite proportion uf the noiuitial 
capital has been subscribed. 
733 The Petition or Application. 

The G.iviriiimui lunu.-hcs thf hhmk i-riiiied forms of Petition and full 
instructions for signatures. After k-ing tilled out according to instructions 
it is forwarded to the Secretary of State, or the Provincial Secretary, or 
the Registrar of Joint Stock Companies, as the case may be, accompanied 
by the'govemmcnt fee. afli'lavits and copy of advertisement, where adver- 
tisement is required, and the memoranchim of agreement. 

The Petition for all the Provinces is nearly identical. 

The Dominion Act requires that the Petiti'>n must be signed by at 
least five j)ersons of \hv full age of 21 years. 

Ontario. QucIkc, New Bnin-wick and British Columbia also require 
not less than tive signatures, whilo .MlMTta, Saskat<'hewiin. N.-W. Terri- 
tories, Yukon, Nova Scotia and Newfoundland require not less than three. 

Upon receipt of the Petition, with the fees, if charter is granted, notice 
will ho given bv the Department in the O^cial Gazette of the issue of the Patent," when the parties therein named and their successors become 
a Inidy corporate •iiid politic by the name iiuntioned in tlio sanie.^ 

the Dominion Act reciuin's that as soon as the notice from the Secretary 
of State apix'ars in the Camdian Gazette the company must publish a copy of 
it in four si'i)arate issues of at least one newspaper published in the county 
or city 01- place wIk re the head office or chief agency of the company is 
established. The i^enaltv for fuilurr to laiblish sucli copy on summary con- 
viction befo.e two Justices of the Peace, is a sum not exceeding $2n for 
each (lav that ?ueh neghvt continues. 

735 Corporate Name of Company. 

The name of the companv must not k- the same or «^ven similar to that 
of anv other companv, whether incorprrated or not, an,l must not be ob- 
jectioiiable in anv other way. The word "Royal" cannot be used as part 
if the name without a s]Mcial license from the Home Office. 

If there h doubt as to whether the Provincial Government would grant 
the charter under the name desired in most cases, the object would be accom- 
plished by registering first as a partnership under the same name, (bee 

736 Registered Place of Business. ...... 

\lf the Provinces and Xewfound'and re.iuire every Limited company, 
whether bv Letters Patent or by Registration, to have a registered place 

if business within t 

rh,. P 

rovinoe or 



sun. not .J^i^l y^. r ;;"; "irz/'r' ■'''•"":'^"'^ t.... p..„.it,!, . 

such h.-arioffio... • ■ ^' l'"«iiicss IS earned .,„ with,.ut 

-n^n.,. .Hiof a,..„t re.pou.ib.e .>r L u^glUtr^C^VilT^m;;: 

/JH The Government Fee for Charter. 

•Ih,. I) "'"'-'" at an\ time by Ordor-in-f'ounci! 

posed ptiT'^riV,;;,"' r""r ^""t -^ '"'• -^ *'"''^'^" -'-" ^»- .>- 

In Ontario the lowest fee now u iliiii i .1 

or loss. forchros,. „„ ?. ' "'"'■'' ''"' ''"I'""' '^ $10,000 

aa^iociation-i, J.IO. "hjirt. $10. :,,„j atldotio 

In AU)orfa. Saskatohcwmi v,.rty, u- . t 
registration of a oo,np;n 1 '-I,. ' ,'' lorntonos an,l tho Yukon for 

$io.r';i't S'liI;: t,uT": 'r'" *!"" ^^*"" "''"•^' ^'-"•^ '^ '- ^^an 

In « I ,1 . ' "*''■'' '' «^'"'."<10 and upward,. 

-!..,..' ,ni ". '^^'^'-'-.^-^-at-n^ "ot having ^ain for th.-ir oI>j...t. a.s 
" .,thl,.f„. rt.^sooiations, etc.. the foos ar.. nominal. 

740 Extra-Provincial Companies 

quired government rctiirn-s annuallv. If thev umlerf.k-e f.. ...11 1 
rran^et 1,„ iness without a lieense" the, a^e ilal rte^ ! al J^' ^^i 
an deharn.! fron. enteri... any of the eourts to enfonv their e Innr Thov 
must a!..o have a rc,,.tercd plaee of business within -neh I>r, W ' 

7 ho f«.s for sueh Provineial lieense is the .a„,e as for lette patent „r 
for resristratioi, for |,H-al eo,„panies. ' ^ 

741 Supplementary Letters Patent. 

If stoek eornpauK.s desire ,0 ,„ake anr of the following changes in their 
charter they are re,, to obtain suppien.entarv letters VaUnf 

1. io ehange Its eorporate name. ' 

2. To obtain further or additional powers. 

•3. To .Ifiur increase or decrease it., capital stock. 



•J. ri> n-t existing shares. 

(lovcriiMiciil fivs arc iiliont halt tlio Irfs charifi'*! in rarh l'ri«\ iiu'i- for 
i.cltrrr r;iti 111, mill ais.! iiiuiir tiic 1 )i>iiiiiiiiiii Act. 

hi Oiitan.) the capital attxjk !).■ iiicrcuseii, uiitil '.m per cent,' hii Ucii siil)!*crilic'l and 10 per .'eiit. paid in. 

The ilin'cti)rn hy rcMoluiion may |)ri)viilc for any of the ulmve changes 
hilt il must have the fianction of the HJiarehohler^, rejin -lentinp at least two 
thinlf* in value of all the suhM'riU il ea|nlal, at a -^pfM-ial n.'n.-ral nieetiiifj of 
the com, .any duly called for consideration of ^u.'h chanL"'. arid attcrward* 
Im' c.intiniied by .supplementary letters patent. 

in those Provinces where companies are forimsl hy IJi't;isi ration the 
c()inpany iiiav hy spei'ial resolution <dian;;e the name of the company, or sub- 
divide the sliarcB, or increas<> or dimiiiisli ihe amount .if its capital, .ir in- or diminish the number of its momlH-rs, as the casi' may be, hut all 
rtitch changes must have the approval of the Kegisirar; and t.> re.luce iw 
cjjpital it is necessary to obtain an order from th.' Sujiromo {^)urt. 
74C Provisional Directors. 

Tlie jirovisioiial nam. d in the Letters I'aii-nt iiuinaKc tho 
affairs of the company until the first general meeting ^i its memlMTs, when 
permanent directors are electcvl by vote i>f the shan holders, but the pro 
visional or first directors hold office and munaffe the affairs of the wmpany 
until their succes,sors are duly electe.l. 

The directors m\i>t ho petitioner-, and ^iiariholdrr-. in their own name. 

The Dominion .\ct reqiiir. ~ that the board of provisional dire<'tor.s lx» 
not less than three nor more tiiaii tit"teeii. and a majority to be re-sident3 
of Canada. 

Ontario, N'ew lirnn-wick, and .Manitoba, in t less than three. 

Alb(>rta, Sa-katcliewan. .N. \V. Territories ami Viikon. not less than 
three nor more than nine. 

Nova Scotia not less than three nor more than fifteen. 
Yukon requires a majority of the first direetors to Iv residents in Can- 
ada, ami in QucU'c th.' tnajority are to be British -ubjects as well as resi- 
dents of ('anadn. 

As .soon as convenient after the incorporation of the company and notice 
of the granting of the letters patent appears in the ifliciul dazrifr. the pro- 
visional dire<'tors are required by registered loiter addressed Ut each share- 
holder to call at some c.niveiiient place a general meeting of the company 
for the commencement of business, elect iim of permanent directors, enact- 
ment of bv-laws. etc. In Ontario if the directors do not call such general 
meeting within two months of the date of tlie letters jiatent, any three or 
more of the shareholders hav.' i».wer to eall Mich meeting and to proceed to 
the organization of the cotnpanv, 
743 Commencement of Business. 

In all the Provinces and Newfoundland if the newly chartered cx)m- 
pany does not commence its operations within a reasonable tim- f^..xed by 
each province, it forfeits its charter. 

Under the Plominion Act, if the company does not go into actual opera- 
tions within three vears after the charter is granted. <ir if it does not me 
its charter for three consecutive years anv time thereafter, it forfeits its 
charter. In Ontario the time is two years. 



Al«o umlor both ihe Domini,.,, and th,. lj,.,l,... Aor, u c,.n,.a..v mu.^t 
not co,M..H.n...,. bus„.,...H u,„ii at i,,,,^ ,„ ,,,,, ^.,,„ ^,f ,^^ authoriLl Capital 
bus iK.n suL^TiU-d .uul ,,ai.l l„r ua.l a .J.clarutioii under outl. by tL.. s. cn- 
tao- btai.n^r g.a.i, ,„,.( i,„^ i^.,.„ .i.posited in the Departniiut " 

hvi-r.v dirwtor who diriTtly or indir.rtlv uutl.„ri/...s sucl. oiKrai.. ■«. 
shall bt. personally- Imble, a. uvll a. tl,,. c<.,npanv, f„r .h. j-avrntnt of .uch 

in Ontario a company mu^t not cmm.n.v biisinc^ or ex. rcis*. bor- 
rowen* |>o\vtrs nnlei*s: 

(a) Shares have been duly allotu.l ,., ;,n amount not less than the 
minimuni subscription &ied. 

(b) An.l every director ha. paid t.. the ...mpanv the full amount on 
each Hhare taken by hun for uhi.-h h.. is liable in ca^h on appUcatinn ami 
allotment Nune as recpiired for publi<- sukscription. 

(f) A.i(l there hua been filed with the Provincial Secretary th.- re- 
qumnl stututot-y .leclaration that the afor.-said conditions have U..„ ,.om- 
plied with, and the Provincial S.rret.'iiy has issueil his certifi.'ate emitlin.- 
the company to commence business. 

If a company .•'n.v or exorcises borrowing p-'wers in 
confraventmn ot this ,i,.n every person responsible for such eontrav, ,>- 
tion shall be liable to a penalty not exceeding $:.() for every dav during 
siicli CMUtravention. j . t^ 

744 Capital Stock. 

'J In ( .1 III nl Slock- <,{ a .M.mpuny i.-, that which i< named in th,. eharicr 
as the maximum limit ..f stcK.-k that can be taken „,,. and u^uallv deshm;.,. d 
Autlionzwl ( apital or nominal cai>itiil. 

Subscribed capital is that porti.m ,,f il„. ,utl,ori/ed .'apital that has 
I-^en imu,\ to subscn n-rs. If n,ay b,- all paid up or only partlv paid. The 
pan of ... cibscnbed .'apital thai is unpaid is an .•is.ef 'to '.vhic!> either 'I'e 
i'omi>any or ere.litors may have reoours.'. 

Fn Ontario where any adverti.«oment, l.-tfr-head. document, etc.. issued 
by any .-orporation. officer, agent ..r ..mployee of such .-ompanv sfat.s the 
capital of the corporation it must state the .■.apital nnuallv ..uh-erih.d and 
no more, and not mertdy the nominal .'aiiitai. 

The ronunoT, stuck entitles its holders to shar.- pro ,v,/„ in the j.rotit. r,f 

Prpferrnce slock is that whiel, is issued entitling it, h<.ld.T t-. n certain 
fixed rate of dividend out of the net pr<,rits in piioritv to th,. hold.T. of 
comriion stock, hut in other respects th.'V have th,' same riirhts an.l same 
Jiabiiirirs that the holders of common stock have. 

WnlcrnJ SM- is that which is issued, generaliv to previous stockhold- 
ers as fully paid up, when ..nly a part or none of it has been iiaid. Sn.di 
8to,.k IS ncirly always issue.l to d.-frnn-l the public in some wav. Tt niav 
be only to concal the actual rate of .livid.n.N. or t.. give the ori-ina! .toek- 
hol.lors a bonus before placing stock on the market, etc., bv which some 
profit at the expense of the many. 

Tn Quebec waferrd stock is prnhil.itrd. all sneh stock if issued 4iall 
be null and void. The capita]i;^ation of surplus earnintrs .and the is=no of 
sMick to rrprcsont such .•apihili/.aiion is proln'hited. an.l if sm-h stock is 

U.Nl'All) .SHAKES. 





i«^u.'.nt «)iiill bf null uu,i v„id, anil the .Iircctora consuntiiig i,, iiirli ism,o 
are juintiv and s.-verally liable to tho liolders thereof for the riiiiibur3m..nt 
' t ihc miioiint paid for Htich stock. 

In .Manitoba any coniimnv df-.-irinj? to issue shares at a discount or 
pivmiu.n twonty duy.s- n-.tiw nmsf Ik.- given fucli shareholder of the proposed 
l).v-lavv before the special or gemral meeting called for tne purpose of con- 
sidenag sueh bv-law (Chap. 8, 1908). 

In Manitoba any person nreiving any shares, or othor benefit of an 
incorporate.! company as con^i.j.Tati.m for allowing tbe ns. of his name as a 
dir.rtor. trustee or meml.rr <<{ the Imrd of management of anv such com- 
pany, IS liable t-i a penalty of not less than $200, nor more than $?.000. 
I he company ma,.- also by suit have such shares reconvoved to it. If they 
have been transferred to an innocent t'lirl party the value of such shares 
must be returned to the company (Chai). 14, of VM:*]). 

Slock Diridfndi. the Ontario .Vet of litOT emi-ower^ directors in cases 
where divi(lt>nds may lawfully be declareil payable in money to d(>claro 
stock divi(len<ls instead, and to issue shares of the company fully or partially 
paid-up. .IS the case may l)e; or they may credit the nmount of such divid.iiil 
ill -biires already i.ssued, but not fullypaid. 

Drhrntiirr Stofk is the same as fh<' .iflinary delx'ntiircs of tlie company, 
and carries no greater privileges. Th^' holders of <lei)entiire 8t«>ck have none 
of the privileges or liabilities of the shareholders of the company. It is a 
debt of the company, draws the stipulated rate of interest, and m cas(> the 
company is wound up, is payable out of the ns.«ets of the company. 

Shnrr Crtiifirate. Tn Ontario every shnreholder is entitled without 
piiviii. Tit In an official certificate specifying the >i1iares held by him. and 
the aninuut paid thereon. Tf a -^linre is held by several persons jointly ilir 
c'i(tip;niv is oTilv bound to issue one certificate. 

746 Share Warrants. 

In Ontario a comi)any, if so authorized in its character, may, with 
rc-pict to shares fully paid up, isstie share warrant^<. stating that the bearer 
of the warrant is entitled to the shares specified therein: and may also pro- 
vide Ii; i',.ii|inns, or otherwise, for the payment of dividends on such shares 

Such -hares may Ix' transferred by the delivery of the share warrant. 

The bearer of a sliare warrant may. ;-ubjt'ct to the provisions of the 
ehaiter. surrender to the company such warrant and have his name entered 
as a shi.reholder in the regi.ster of shareholders. 

The holder of a share warrant by depositing the wrrraiif with the com- 
j>any. may. after two clear days from such deposit, and so l.>ng as t remains 
ileposited. attend the meetings, vote and exercise the ])rivileges of a .share- 
liiilder the same as thoiiirh his name were on the register of members. 

Till' eeiiipany tiinsi on two davs' notice, retimi the share warrant. 

747 Unpaid Stock or Shares. 

Stock that ha.s been .subscrib( d for but not paid up stands as a re.-ourco 
to the company and new calls may be made as necessities or interest require. 
It is an as«et, and a security to the public. Tn ease of insnlvencv of the 
company each share' .Ider would have to pay i:p the balance of his shares 
but no more. Cr .* irs cannot «ue the shareholder^ iint'! they have failed 
bv execution to recover from the company properly. 


JOIN! SKKK < llMl•.\M^.^ 

In cast' a -harplioldcr i« siuxl bv a creditor on his unpaid stock, ho has 
tlio eamc right <if set-off aj;ain.-t such creditor that he would liavc again.-^t the 
company, except a claim for unpaid dividends or salary, or other official 

748 Transfer of Shares. 

Shares ill a sim-k company are personal projierty. Fully paid-up 
stock may he transferred almost as freely as a promissory note, except where 
the Cerlificale of Slock i)lac<"S some restriction on it^ transfer, which, of 
course, must lie complied with. Shares not fully paid up can only be trans- 
ferred where the directors are willing t<) accept the transferee, and a rec- 
ord of the ti-ansaction is made in the companys' b(M>ks. 

Shares of a sitx-kholder may 1k' taken in execution, or order from com- 
petent court the same as other per.sonal property anil the piircha.ser's namo 
will l)e entered in the couifiany's book.*, as the ownier of the shares. 

Jn Quebec, by amendment of 100.") when shares in any stock company, 
or bonds, dehrntnres or debenture stock are transferred, a tax of two cents 
on everv $100 of par value must be paid in stamps, affixed to the Transfer 

750 Rights and Responsibilities of Shareholders. 

Shareholders in a sto<-k company may contract with the company the 
same as any other person, sue and execute their judgments against the 
company's goods, and in case of winding up they rank with the other credit- 
ors for debts due them. 

They have, bow-ever, no right to the property of »!■" company nor to the 
profits until a dividend has been declareil. Tn coiHlucting coiiipaiiv business 
they can only work through the <'(inipany. They cannot be expelled from 
the company nor be deprived of their right to vote by either the officers or 
directors and the other sh.nreholders comoined. 

They are not nsponsiiile for any act or default nt the company, nor for 
any engagement, debt (ir loss or injury in connection with the company, be- 
yond the unpaid poriii.ii of their respective share.< in the stwk of the" com- 

The iiiiiilM-r lit --hari lii'lders, imwevc r. must not ix' less than the niiinber 
required I. statute in each I'rovince, hence if the business of the company 
is carried on with les,. than that number, for a period of six months, the 
numbers individually iMc/^mie liable for company debts if they know the 
number has been so rediiceil. They may free themselves from personal 
liability by serving n written protest upon the company, and by registered 
letter niitifving the Provincial Sei-retary or Registrar of such jirotest and 
the facts ujion which it is l^ised. If company refuses to increase the nuin- 
Imt of nuuibers to the recpiired number its charter may Ih' n-voked. 

761 Limited Liability of Sharsholders. 

In sf/ick eompatiies a shareholder is only liable to creditors ti. the 
amount of stix-k he has siibscrilK'd for. This is the great distinctive feature of 
joint stock eoni]>anies. The company may Im' wrecked by bad managemem 
and subscribers to the «'xtenf <if the stock thfy sul)scribed for but their 
loss stoy>s there. Tf their stock is paid up in full nO mor(> can be claimed 
from them. If their -bares have ivif Iven ])aiil up in full they are liabb 


against tho compaiiy ha.s beon returued unsatisfied in whole or in part 

nu. law ,n tins reHpect is the same in all tho Province's and Xcwfoimd- 

'.'"d l,.r <s„n,,a„M.- w1k.s,. capital M<M-k is divid.v] into shnres. 

752 Double Liability on Bank Shares. 

.mount '!7sl!:i'T '" 'I '■''•V'".'';' '"'"^./^ '"'^'•' '" ^■•^'^'"^^^ ^^r 'l«"l^'« the 


M..n of the .an>c anK.unt, if noccs^ar.-. to pav tlu- hank's lab 1 , e tT Ll 

Hank ot h.itish North AnuTioa. winch has an Innuiial <diartcr 
It i.-i tho .saino in Nowfoundliitid. 

753 Use of the Word Limited. 

lo <J tw/rlur'p'' r'" •■'•'";•■'•""" ^^^h a company's name is the notice 

"ifj-narch,,|, composino; such c.,iiii,anics. ^ 

cun-c ttt'tv^rv'-" "^''- ?^"''" ""'' "*' -^'•-^■'•»"<l'a"<i and the Yukon, ro- 

m ifpil)l(. ettors. Penalty for nejjiecf i.s $20 per dav 

and vlv^ ^?!; ^"^■^"^fr'i Xorth-Wcst Tcrritones. British Columbia 

Z P n tT ' !'""''i\ '" ■■ ^''"''^"' '^>- «"''"ntee." a« tho case „,ay 

to; r ir ' ?' f ^ ■'"' '^ *"* '^'■'' ''"•^' ''••"•'"^ '''^' 'i"f""'"' '""i '^vorv direc- 
tor nr olhcer who kn.,w, ,x.rmits such ncfclcc, is liable to a like penalty. 
1 u; Ontario Act as now amended d...s not require the name to be on 
the <,uts,de of the place of business, but if i, is used the name must be in 

li*fr>ra nnJ thn n-,,. 1 »» T ;..•*. !•»••. it . , ^ 

h'lrible characters and the wo..! " Li'mite 

m Its ! 

iiiiil)hro\ia.'ed form as the 

last word of the name. 
/Ir^ily^^ 'h*- Provinces, as wll as ut.der the Do.uinion Act, the word 
Inn d, and for compan.,.s foru.ed by rej^istration the words Limifed 
Luihddp. n.ust also be on .t,s seal, an.l use.l as the last word of the firm name 
..n IS mvo.ces. mlvrtisemenls, cmtract.. an.l in sipning receipts, n.,tes, 
•irafts cheques, letter heads, and when-ver the name appears 

And every ,l,rector or ollie.r of such con.paTiv. und.-r the nominio- \cy 
who authon.e. or pennits the use of a cou.panv .seal without the '•• .' 
limited enirravrd .,„ i,. or who ai,thor;-'es tho is.^ue of anv notice, auvet- 
tisetnent, or other othcial publication, or sijnis or authorizes the siimature of 
any bill ot exchange, note, cheque, invoice receipt, etc., without usimr tho 
word Intnted with its name incurs a p.r.altv of $200. ;,nd m1<o become 
personally liable to ,]„ hol.h r of any such for the amount unless the 
same is duly pai.l by the company. Tn Alberta. Saskatchewan. North-West 
lerntones. British Columbia an.l Xova Scotia the ,K>naltv is $250. 

In Ontario, in cases where the words " C'ompanv," " riuh," " Associa- 
tion." or similar words, form part of the name, the 'word "Limito.l" may 
be abbreviated, as " Lt.j.." but wh.-re such words do not f.,rm part of the 
corporate, tl„„ the w.t.I " Limited - must appear in full and in same 



size of letters as the rest of the uaiiie. ilarkinir ])a<'kiuir boxes, etc., the 
word "Limited'" need not bt> used, as that is not deemed an advertisement 
or contract. 

For neglect to so use the word every company director, manager and 
employee responsible for the defanlt shall incur a pi iialty not exceeding $l'> 
for each offenc", and for a second conviction of this offence a penalty not 
exceeding $100. Prosecutions must !«■ cmunienced within six niontlis. 

Companies not having gain f'lr their ol)jeet may, in their charter of 
incorporation, .jC exempted from such conditions as above. 

In Xewfoundland the jienalty is $2.'> per day for neglect to place the 
compajiy name with the word '■ Limited " on the front of their place of 
business, ns well as on the invoices, advertisements, etc. 

754 Voting by Shareholders. 

Tlie persiiu wliuse name is on the register for shares has a vote fur eac-h 
share he holds. An absent person may vote by proxi/, and a person holding 
shares in trust for another ]>erson may vote on them if his name stands on 
the register as holding su,?h "jhares in trust. 

The personal re))resentative of a deceased shareholder may represent 
sudh deceased person and vote at the meetings. 

A chairman may vote on his own shares, and also has a casting vote in 
case of a tie. 

755 Dividends Payable Out of Profit . 

Itivi.iiiids ran "nly In- Ii'gally paid out of profits. If there has not 
b<>en a profit over the running exjienses. no tlividend can be declared, for if 
the officers were to declare a dividend out of the capital they would make 
themselves personally liable for the amount of dividend in case the company 
went into Ii(]uidation. 

Among several other recent eases where direeturs liavi^ been required to 
make good to the creditors the amount of dividends paid out of capital the 
Yarmouth Bank suit may be given, in which case Justice ^legher gave judfr- 
ment in the Court of Appeal for the directors to repay a dividend of $1.'),000 
that liad been paid out just lx>fore the bank failed. 

Dividends which have been earned but not declared by the directors 
until after the transfer of any shares are payable to the ])urchaser, whether 
the transfer has been registered or not, and no matter when the dividend wa^; 
earned. It is a matter wholly in the hands of the directors whether to 
declare a dividend or not, or to nse the profits for an extension of busi- 
ness, and tlie courts will not interfere in such matters unless it is evident 
they have acted in bad faith or positive neglect of duty. 

757 Annual Government Statement. 

T!ie ("..ivi riiineiit each year furni--hes the comjiany with lilaiik forms to 
be filled in l>y the officers of the company, giving detailed information on 
company affairs, the stockholders, transfers, etc., one copy of which to be 
forwarded to the Government .and the other to be post id up in the head offiijc 
of the company before a certain day named. 

If this is riot done by the j)roprT date the company, in nearly ,dl the 
Provinces, incurs a penalty of $20 a day for every day durinsr which the 
default continues. In Alberta, Saskatchewan and Xortb-We=t Territories 

$l'-"i [icr ihiv. .\iiii r\i I'v iiir'i'i"!', :'i:Mi;.;-; r ";' >ii'rii,ii_\ "i 
lo knowiuirlv or will'iilly p<riiiits fuch ilci'aiilt incurs the liki' 

I' ■•■■'■>■ 

:i . uturio a foe i-; nuw nfiuiml to 1)(> srnt ■villi the aiinu."' statpnifnt 

tf> Provinei;ii Secretarv, rniiL:in>i fnun $2.00 to $5.00. acponlinir to amount 

of cnjiital ; niul also witli cvirv hy-hiw of ihf fomimny roqninil to be filed 

in Uio Vrovir.cial Secretary's office. Tin unnnal fee for Nova Scotia baa 

li en a' "li ': <! l)y aineii'lment of I'.Mtl, 

753 What Books to Be Kept. 

i !>(' ( '..luiiaiiii - Ac!, liwtii t'i the Doiiiininn ami of each I'rovince, requires 
1 ritaiu Iwokrt to be ke])t liy the Sicretary or si>mc otlier otHcer, wherein shall 
he n^conletl ■'mv the information of sharehoiders and criditors a copy of th.' 
Ictterti y)attiit and a c!;!:--ilicd record of the conipanyV- ^fatiw and dointr>*. 

They !:■ as follows: 

1. A I.)' k contaiuin<j a copy of L( tter* I'aftnt. and of any supplemen- 
tary letti'rs jatent, and of the preliminary niemoramhun of airrocinent and 
of all l»y-l:i' .s thereof. 

■2. \ r jrister of shareholders ]iresent aii<l j'asl. alphab< tically arranged, 
giviii<r the ;;ddriss and callinfr, as far as can he ascertained, of (;vcry such 
jiersoii while such shareholder. 

;'.. 'I'lio stock ledfjcr. giviiiir number of shares held by each stockholder. 
;he amount jiaid in. and the amount unpaid. 

4. A reffister of transf<'rs of stock, in which shall he eutrn d the par- 
ticulars of every transfer of shares in the c^jiilal stock of tin- comiiany. 

5. A register of directors, {jivinc; the names, addresses an<l callin;; of all 
iiersons who are or who have been directors, with the datis at which each one 
! "inie or ceased t-f> be a director i. he company. 

All these books, or books cimtainini; the above i'lformaticii, are to he at 
t!r hea<l office of ihe company, and open for insi>ectii'n by shareholders and 
cri-ditors at all reasonable hours on imsiness davs. iuiit such persons or their 
representatives may make extracts from them. 

Any director or officer or servant of the coi:i|j;my who knowiusly makea 
or a-sists in tuakin^ any untrue entry in any <f such books, or wilfully ne?- 
lects or r fuses to make any proper entry therein, or to exhibit the same, or 
to allow the same to be inspect', d and rxtrncts to be taken thereform. is jruilty 
of an indictable offence. Tn Ontario is liabh' to a penalty of $100. 

Every c< nipaiiy which nc;rlects to ke<p such books shaM be liable under 
aiiTnri<^rv conviction before two justices of the f)ence to a penalty no* r -po: d- 
iu ■• •'H20 for each and everv dav while such netrlect continues. 

750 Ecsrd of Directors. 

The affairs of stock compnuies are maiia'Tcil by a beard of directors 
elected by ballot by the sliareholib ra in a ireneral meeting; of the company. 
For the number of directors allowed in each Province see Section " Pro- 
visional Directors." 

In the .absence of other y>rovi-:ions in the charter of incorporation or in 
the hv-laws of the c<impany, directors hold otlice for one year, but are eliffible 
for re-election indefinitely, and in every case hold office until tlieir suecesscr5 
;n-i- dillv eicctefl. 




1.. 1.0 flijiiblo for oloetion or iii-.M,; .tMHi.t as .iin.tor, ;, p.-r.o,, „nist l„. 
a shar,.hoI.' ■ unm- .t.K-k i„ hi. .,wn rlAt. ::„,! to ihc -.xuu.nut 
Tv^mn-d I l.v-laws .,f the (vini.anv. and not in arr.-ars in ri'smct to aiiv 

••ail there. ' 

KviTv (lection of directors nnist lie hv ballot. 

Vacancies in the board may be filled for the remainder of th.^ tnrin bv 
the directors troni anion<r the <]iialified shareholders. 

The directors elect ainonir tliemselves the presblent and other 
fH^lu!. .' . . ""l""!"'".'-. "ircctors cannoc vote by pronj. They can only 
" • ■ • ] |..,„,|,,, ,,i^,.„.i„,p,, „;^.„ t,,p;,rato assent to the 

lejrally vote at the meetinir. 
j)rocee(lin!rs of the board. 

The <iirectors have tin- .Hi .n i;i;iii:!ir<tn( in 
tions. an.l have exclnsive authorifv as to tl 

I ilie|)any an.l its opera- 
le a{)j).>intnients, duties and re- 

inoval of all aire nts. ofllcers and ein'i.l.yees of the conipiuiy, the secnrit'v given 
by theiri tl) the coiii;.any an<l their renmneration. 

IJiit in resjiect to all other by-laws they may make or repeal, or anien.l 
or re-enact, unless contirnie.! at a ceneral meetiujr of the conipajiv called f..r 
that pnrposc, they only have anth.-rity until the next aimnal meetini: if thov 
then fad to receive the confiriiiation of the shareholders. 

In Ontario a cotni^any may by by-law varv the mnnber of its directors, 
but not so as to 1h- less than three; ..r may chanire the head office in Ontario. 
Hut no by-law f,,r either pnri.ose sIi.mII take etTec. until it has been conlirmed 
by a vote of not less than two-thirds in value of the shareh<.lders pres.nt in 
person .,r by proxy at a iiieetinL' called for considerini: the same. .\ ropv of 
such by-law cerriHe.l under seal of the companv shall forthwith be filed in 
the .ifiice of the Pr,.viiicial Secretary, and jmbli'shcd in the Oniario Gn'ctte ; 
and, m case of removal of the head otiice. twice in a newspaper published in 
the y>lace where tlie head ofJice is fixed, and also where it is removed from. 
A majority ..f the directors constitute a quorum for the frans.action of 
business, even thouirh the company may have ..idy three directors. 
760 Liabilities of Directors. 

ihe O.miianies Act ,,f the Dominion and of all the Provinces make the 
directors fiersonally liable for irross n<!rli,£;ence and in followinc particulars: 
(a) For cf.mpani.'s with limilrtl UahiUly if they neglect the proper use 
of the word Limihd in i-onnection with the company name on their seals, or 
outside of their place of business, an<i wherev« r the name appears on nego- 
tiable paper, irvoices. i>u're<'ments, etc., as stated in .section 

ih) [f they pay divide when there have been no net protlts. thus 
reducin._' the capital, they become liable to creditors if the eompary fails. 

ic^ It they make loans \o sharelioldcrs contrary ti. the charter of incor- 
poration, they brcnme personally liable if l<ws results. 

(fl) If flipy wilfully neglect or permit of neglect to make the annual 
returns to the Government within the retinired time, and also for any fidse 
stf.teuient respecting th<' business contained in those returns the directors are 
personally liable. 

{r) If entry is made in the company's books for the fransfiT of stock 
not. fully paid up f.) a person who is not apparently of sufficient mean=, the 
directors are jointlv and .severally liable to creditors for the unpaid part. 
(f) In case of insolvency they become personnllv li;,iil<' to clerks, l.nbnrer.! 

i.iAiiii.: rU':!i oit I)1kk< r<)U8. 


dud a|>|>rcntiw.s I'cr wages pcrioniiiil while tlicy \v<Te ilirc-ctois; in Allierta, 
yask.'itclicwan, N.-W. '!'( rriioriis, (^lu l<r and Viiki n for six months' wages, 
and in Ontario, and under the Dominion A.'f, and .Maniloha, for one year. 
In eaeli ease a dire<'tor is not iiabh- uidi ss ihe lalior wa-< [xr formed while he 
was a director, anil unless the com|ian_v has heen sued for the amount within 
one? year after the debt becanu- due, and within one year from the time he 
oeased to be a direetor, or unless an exicution asraiiist the eo-npaiiy has been 
returned i;;;-iitisl;ed. 

761 liirectors Are Tnistees. 

iJireetors act iti the doulile capacity of (if/inls and trusters for the cora- 
{lany, and must th<-refore act within their authority to bind the company. 

IIkv must noi pundmse the c<>m)iany property even under exiK-ution, or 
foredosun' sale. If they <lo they are deemed trustees for the company and 
must turn it over to the company when repaid the jirice. Every director 
in justice to himself should obtain a copy of the Act mider whicli the com- 
pany is incoi^ioraled. aiui :i-^certain his personal re.-[Hinsiliilities, as the 
statutes of tile ilitTerent Provinces are not Mitirely the ss'.nie. 

Section n.'. of the Criminal Codv says: " Kveryone is <;uilty of an indict- 
able offence anil liable to seven years' imprisonment who, beini; or actinc in 
the capacity of an oliicer. clerk or s'. rvant. with intent to defraud, makes or 
concurs in nuikinu: any false entry in. or omits or alters, or concurs in omit- 
tinjr or alteriuL'. any matt rial part from or in any bmik, pajier, writing, valu- 
able security or document." 

Dirrilnrn' Ditlifs. Althougli the presirhnt and manacring director have 
most resjKinsibility. and are in a position to know in det.ii! the state of com.- 
jumy business, and are yiaid to aeiministcr their trust efficiently, -itill the other 
ilirectors are not relieved from jiersonal responsibility fur that such 
trust is honestly administered. 

Tlie Ontario bank disaster, yet before the Tourts at this writing, pre- 
cludes the necessitv of citing iinv further ea.^e? on this special point. Direc- 
tors musf direct. 

.Tnsfice "Meaiilier. in his judgment in the T?aid< suit (X.S.). 
said: " A dire<'txir is not obliged to examine the books, but if h" become.s 
aware of anythinrr which reasonably snsiesfs the need of an inf|uirv. it is 
his duty to ascertain frotn the offeials what it inean<>. to sc'rk full information 
.ind explanaiion regarding it. and if in the course thereof 'ne should he mis- 
led by them, he is not MamenMe if he abstains from further f nqulrv, unless 
there are circnmstnncrs connected with the incident or the explanation which 
east a doubt upon the matter." 

762 Calls. 

The Dominion Act and that of all the Provinces reouire for companies 
divideil into shares Miat not less than ten per cent, he e^.illed in and made 
payable within one year from the incorporati.m of the company, and the 
residue' as the letters patent or the by-laws of the comnany direct. 

If any share hohler does not piiv the calls on or before the date of pav- 
memt he is liable to pay interest until payment is made'. 

If any call duly made upon a share is neif paid within the time fixed 
for payment, the dire'ctors may by resolution eleclare' such share forfeited . 
au'l it shrill be-'m'^ tb.e T>r.inertv of the ,-nmpnny. Xe^twithstaudincr such 


,)oi.\r sTin- 


l'i)r('i'itiirc, till' hill l.-r of ihi- .-^liarc n .iiuiiis iiabic l.> ihe liiiu cri-ilitors 
the coil!]!;!!!;,- for ili- full aiiinunt iiiii'itiil :>ii -iii'li shtiii'-. 

The (lircftiirs may, iiisti'in! of (Icclariii): u ^h.irc t'ortViinl ii>in-|),i 
iMcnt of a «'ii!l, (iifiiv.- |ia.Viri('Ut o.' nil iiiii rest tliirion in any C'U 

of I'uiispt'li'iil jiirisiliction. 

I)imf;>rs may a" -ii ivcoivi' pnyiiifiit for shares in uilvaiiec of tiio itmnii 
I'alltil, aiil iilldw such rale of interest as may be iixi d liy the dinelnr.-. li 
tills a.Iviim-r ]iayiiieiit wmuM ii..t <lra\v diviil ml-. Sei . (il. Chap. 70. ii.S.' 

763 Taxation of Companies. 

Miiiiieipalities do hot assess the capita! stoek of incorporated eonspanii 
but tlieir phusl, real i slate and t^iMnls are liaiile to a--; - :r!ri;1. and "m j-i! 
of file I'rov'nc'S a biisinp^s li^enso is also retjiiircd. 

In the Provinces wherf a ''bnsine.-s assessin. h. .- . ., , 
eaniilo, nir.iint'aetiirin;^ I'r oilier business firms, it tloes not. include i!' 
twtate occupieij. 

.V I' r- -n jiaWe t > assessnienr in respect to file bu-iiiess i> not liable 10 
assess-nient for iiicnuie or <li\idend drriv<>d from such business. 

Altlioiijrh shares in a compaiiv are nit asse^-able, the dividends fr^ 
such shares are assessable in the municipality in which the head office or c\v' 
]>!ace of biisiiicss is situate. 

Shareholders are liable 1 dlv'd nd- derive) 

•h(dr stock in a company having its ciiiii' pliu\- 01 b.isiiiiss within that ih': 
cipalify. if snch dividnuls anionnr to more than tht^ income the Ftat!ite> • 
such Province exnnpi from taxation. 

764 When Company Is Deemed Insolvent. 
A eoni|)any is deemed insolvent : 

1. If it is unable t.i pay its debts as they Ix'come due. 

-. If it calls a iiieetini; of its creditors for the purjiose of compnunding 
with them. 

o. If it exhibits a statement .showini; its inability to meet its liabiliti 
or otherwise acknowleilijes its insolvency. 

I. If it assiirn^i, reii'-.ves or disji.'r<>s of any of its property with the 
intent to defran 1 if.: cr dito;-:. 

5. If with sueh intent it ha,s had its lands i>r property seized nml 
<'X( cut'on or othi r process. 

''. If it has made an assijxnnient for th" general benetit of its creditor . 

7. ff a creditor to whoju the coniii.iny is indebted in a sum exceedinir 
$-Jili) serves on th" eomtiany a demand in \.-ritin.!; reqiiiviniz payment of th( 
snin so due, and the cotnpany does not i>ay o, otherwise satisfy such creditor 
within !•() days iti ease of a bank, or C,^^ davs for all other companies, sncli 
C'lnipaiiy is deerufd to be insolvent. 

765 Winding-Up Act. 

When a coei])any becomes insolvent a creditor for the sum of not h 
than $-200 inav, after four <lays' notice to the company of his intention '<> 
do so, applv to ill" court in tlte Province where the bead ofHee of the company 
is sitnate for a windinsj-ap order. 

If the company's head ofliee is not in Cani-da. then the application would 
bo ;nade in thf Province in wliich its chief plnco of bnsiness is pitn.ito. 



■•'li' *'■ '• I'l-i'VillOiai |..v,.~; .;!■;..;■,. , the 

':i Xiw Tlriinswlfk, Nova Sculia. 
!'•;;! lui. Hi'itnli rolunihiii !iti(1 
■■. : .M;ltlil()l):i, tin Kitijrs n<'iicb. 
ill'- !t;i|'!iciil it'll f'Ti the i. .;.! that ir is not 

1 . r . 
if th 
inp'ilvi lit. t}\: I 1 

!'.;■ iiTih ■■ 

Alti r :iii iijij 
:: isi..;aut] ai.y li;:'i.Hr [ir.u'i ^>iin;i.-; in ii'iy 
l«;;ii.v. mny, da apiilifitiou hy tli" i-c 

re-,: !;i '•'.■••! niiin! s'.uli ti;-;iis i - tlir i"\\.. 

r.iuijii lor ii \s-in'h:i;x-iiii onlir luis bri-n inadr 


nil 'ir i!ctti 71 tuT'iiri'^t thr coiii- 

;t. ill iiiukhi;; the \vindins-"P rnlrr. iiiay ayr.-int r. 
ii[iilM:.i< -s i>." tlio cfTifts of tile po)!i;>{iny. Sir-!; liquidator iii.: . .«■ ■... 
iissimi; p or vrcfivi r "f Mich coKijiai'.y, or an iiicorj '"atcd company or nry 
TiiTsi/ii ilip I'onrt mny iiDpnitit. 

From the time of iLc itiakinsr i)f the wiiniinp'-uii oi r the poinpany must 
<-oii.=f from ciiiTvin.!; on its liiisiness cxpcpt ns flii:> liquidator allows in tin- 
iiiti rest of tin- iTi-<litors. Any transfrrrt of slitircs or altorati(!ii in the * ' ■ 
<'f ni< nilicrs made without tho assent of tho linuiilntor aro void. 

1'->> ry altachincnt. tTCfcutioii or ilistrcss put in forfo a'.rain^t the cITu-rs 
of ili(> coinpaiiy Dftcr the windins-np order is irrantod is void, and no action 
or suit can iM-conimcncfd against the company except on siu-h terms a- the 
court imposcfi. 

Til (>ueliec Articles 1008 and 100!) of the Code of ("ivil Proeednre an 
amended hy Chap. 7'* of IffOS ]irovidin,<i that letters patent may be annulled 
upon the s'lit of any intirested jiarty as wdl as upon that of the AtttM-ncy- 
C( neral or other authorized (tflicial as formerly. The writ, however, eMiiiiot 
issue in the name of such interested party without a written authori/'ition 
of fl'.c Attorm v-CJeneral. 


766 Liquidators. 

rjion ihe appointment of the liquidator all the powers of the dirMiors, exeejit in ^ > far :'s the licpiidator or court sancti'ms the continuance of 
such powers. 

rpon his a]ii"dntment he !ak(s into his eu?tidy all the property effects 
and choses in action to which the coiniiany appears l;> O' .Titleil. 

.\ liquidator may resipi or may be reiiiov' d by the court en due cause 
shown, and any vacancy in the otiiee of liquiihi'or shall be tilled by the court. 

Hr.>adly, the li(piidators and the insolvent estate are in the hands of the 
court, and .'■"haieholdi rs and cnditors may be heard, the preceedinjr* stayed, 
or dilayid, or any ch.inire made t!:at the court deems best. 

Under the ajiproval of the e nut lir- may carry on th<' busines.s of the com- 
paiiv as far as is iiocr ssary to its beneiicial wind'n^ uj), briiijr or defiiid any 
action or suit in his own name as liquidator or in the name of th<? company. 
s( 11 the iiorsonal and real jiroperty, execute in the name and on liehalf of 
the companv th eds, receipts, etc.. and if necessary us<> 'he company seal. 

iJiit the money which he has in his hands belonir'nir t) such company 
must not ho retained or deposited ir :\ bank in bis own name individually, 
I'lit must be depn<;itrd at interc-* in n cbarterrd bnnlc. n: n pn«t nfp.e:^ or other 
rTovernmint savin-r- bunk desivr; ti I b- :b <- r\-f. ni-^ -\ -■' -r , —t 


.HUNT hTOl'K t.OMl'AMIs. 

must Ik- ki'|)i fur sucL cuinpiiny in the iiaiiic <>( ilir )i(|iii)lutor aa liqiiiilator, 
and n<tt oilniwisc, on pain of dismi.ssal. 

In rfuliziiif^ on th<' iu-wcti* »( tiic I'lunpany tlu^ laws ponc('rnin!» frau'liilenf, 
pn'fiTiiici.x, fraiiiiiilint transt'i rs >>v <'(>nvfyancc.- of pr.ipiTtv cuat'lcil !)>■ the 
province in wliicii ilir company is Ikmii;; wouiul up must U' olisorvcd ; and 
in dislributinu; tlio prix-ccds ot" (hi- i-onipanv regard nin-tt l)o had to the 
priority of claims, and tbc .alanfc, 4>f cuur*' will i.-,) to the menilii rs and 
KliandiohliTs of the company accordin;; to their i.;<lividiial and relative iii- 
tiTojtts in th<' company. 

768 Companies Formed by Registration. 

In i;iili-h roliinil.ia, .Mhcrta, Saskatchewan. X.-W. I, .'\,iva 
S(H>tia and .Ncwfonndlanil -lock i-ompanies are formed by ReirisI ration 
instead of by Ix'ttirs I'aleiil, as in the other Provinces. 

In Mritish Columbia, .\lbcrta. Saskatchewan. \.-\V. Tcrritorie-i and 
.Nova Scotia no company consistinj:; of more than twenty fiersons. and in 
N'cwfoiindlaud ten persons, can carry on business within the .scope of th.> 
St^wk Companies' .\ct for the purpose of jjain unless rcfristered an a stock 
e .nipany. or unless workintr uii<ler .some other Act or Letters Patent. 

Tile followiii!! .sections! ijive the iiietbo(l of incorporation bv resri.«- 
I ration : 

770 Memoro.ndum of Association. 

In lirilisli ("olundiia to I'orm a eomp:!ny any five or more [>erson.'*. 
Iwenty-ont' ytars of aire, -nay sidiscrib<> their iianie:^ lo the Meiu'irandi'm of 
A.ssociation, and forward tb>' same with the necessary aHlila, it-. (Joveniuient 
fee, oto., to the Re'.risfrar of .loiiit Stock ('om]>anies. and tlms become an 
ineorpitrated company either wiili or without limited liability, accordini: to 
the articles of association. 

If any incorj)orated eon:]tany carries ..n luisiness wIk ti the Tiiiiuber of 
,UPnilK>rs is less thiiii five, for a period of six months thereafter, ev. ry member 
(hat is cojjiiizant of that fact becomes personally liable for debts contracted 
ilnrins such jwriod. the same as in a (1. nr^ral parlnershi]). 

Tn .\llK>rta. Saskatcliewan and X.-W. Territories, any three or more 
persons twenty-one years of aire tnay siun the Me'iiorandnm of Association 
addressed to the Tfeiristrar of Joint Stock rompani.'s. .\fter registration, if 
the company earri< s I'n business when the nnmber is h-^s th;>n three for six 
montlis. every member who knows that fact lieeonies T)ersonally liable for 
the debts contracted ilurin'r such period. 

Tn N'ewfoundlntid any threo, or tuovc persons may subscribe their names 
to a ^femorandum of .\ssociation and recrister as a companv. Fee for re^is- 
tcrinir when capita! .Iocs not exceed sftlO.onn is .$10, and when it is $•'>:, 000 


Tn X(-wfouiidlaiid eorresnondenee is nildressed to 

Th" TTotinvable The r",,l,,nial SivivtnrT 
St. John's. 

There nre throe classes of companies und>i' this system described !■ 
the three followinT -sections: 



771 Articles of Association. 

I iK' .Miinorauiliiiii dI' A,--.-iifiul inn unii/ ui ca.-c ol cuniiiaiuc^ iiiaiicil b» 
sltans, nii<l shall lit ca-c of u i'iiiii|)aiiy " liiiiilcil by jiiiarantoo," or un un- 
limited cuiiiiiany, lie acfuiiiiiaiiictl In- Article;. (»f A;*.si«-ialiim ijreseri'iiiij; th« 
rej,nilaii<i!i:< hy wliieL ilie eom|iaiiy js li. l)e (•ciii<liietei|. The Artit'lc-i of Asst>- 
<-iatioii are to he priiiled ami sipieil iiy each >iil>-erii)er in the presence of, 
and attested i.y, at lea.-t one ^viIn(•^s, and when rei,'istered l>in<i the eompany, 
the memln-rs. their heirs. execiitoiH ami administrators t^i the conditions. 

It is jrem rally reipiired that the .\rtieles of .\ssociation l)e written in 
^eparate parairrajdis nnndu led arilhnietieally. In case of a companv with 
the capital divided into shares it mnst stale the amount of capital with which 
the ('omiiany proposed to he resjistercd : and in case of a company whose 
capital is not divided into shares it miist state the niimher of niembi-rs with 
which the company jiripposi ■- to Ik ii i;i»li red. 

773 Liability Limited to Unpaid Shares. 

Where the lialdlity is to Im- limited to the amount inij)aid on the shares, 
the Memorandum of .\ssoeiation must contain: 

1. 'I he name of the proposed company, with the addition of the word 
" Limited " as the last word of the name. 

2. The place where the retristcred otlice of the company is to h- loivited. 
.".. The objects for which the emiipany is to \ye established. 

4. The time for its continuance, if for a tixed time. 

.'■). .\ declaration that the liability of the inendHT is to bo limitid. 

fi^ Thi' amount id' capital, dividid into >hares of fixed amount. 

N'o subscriber can take less than one share. 

Mininircomjiiinies nuiy have their liabilities restricted to the amount 
paid oil their sliiin- if -uch provision is made in their Memorandum of 

774 Liability Limited by Guars ntee. 

V. i,. .• til.' lialiilily of i!iein!).-rs is to be limited U> the amount they 
respectively inidertake to contribute t^> the assets in the event of the company 
bcinjr wound up. the Memorandum of Association mnst contain: ' 

(It The name of the ]>r.>p..sed qiany, with the addition of the words 

•• Limited by Guar.intce " as the last wonls of the name. 

(2) Object for which the comi)any is to be formed. 

(•■?) Place in which the registered office is to be situatwl. 

(4) .\ declaration that each member undertakes to contribute to the 
assets of the eompany a sum not exceedinc: a specified amount in ca-^(> the 
company is wound U|> while he is a member, or within one vear afterwards, 
in sertlement of lialtilities contracted before the time .-it wli'ieb he cms. .] t.i 
'■<> a iiii'iiiber. 

775 Unlimited Liability. 

in e,,iiipaiii.- wlirr,. ihere is no limit placed on the liahilitv of members 
(General partnership") the Memorandum of Associatir.n. l->esides givinjr the 
proposed name of the company, place of business, and object, mn^st also be 
-ipied by each subscriber in the presence of, and be attested l>y. at least one 
witness. This, when registered, binds the company and the members, their 
heirs. and administrators, to observe r.d its conditions, as tlioujrh 
it were an instrument under seal. This is the s.^me for the ether form- of 
eompany as well. 


MKt'llAMO AMI WAtiK-KAKW Kits' lIKNs. 

* ., \i'ri;i: win. 


780 Mechanics' Liens. 

Ai-ci>;-iliiii; to iln- pi. virion, ,,1 ill,. .'.Ifchaiiio' aii<l \V:ij:i - Karn.'f.s" l.itn 
.\cl, imli^H li(. ..^iiiiis .111 i.qin-.-.s iiirn., iiiriit to tli- oniirnrv, cvffy mcchanif, 
iiiachiiiisl. I.iiilili r, niincr. lal>.>rir, cuiiinu'tdr i>r i.tlur iii.r.^<in iK.iti;: \s-ork 
iilHiii or i'iiriii»liiiiM: iiiat<ri:il to U' ii..i(..| in th.' coii-tnu-tiou or repnir 'n .'my 
liiiMiiip or ciirtioii or niino, or supplvintr inaeliint ry of nny kind in . -. 
lU'Ciioii tie n with for uny ..wikt, i-ontrsR-ior or sMln'.ntracror, has a lii-n ;ipon 
siidi l>nililiii<r. < ii i-tioi! or >i.iiic ami iipoii tlic lainl o.vni'ird thr-nliy for tlip 
"iini jii-l!y 'liii' for siu'li \::\'.r.i; m inat.rial I'r inacliiii: ry. 

In case property upon wliii-Ii a lifn is stivpii biuiis liowti is oovin-tl by 
:iisiir:iiicc, tbt- insurance money takes the ])lace of the prop* rty and shall he 
Mihji'ct to the 111 IIS t!a. saiMc as thoujth the property wen sold to (nfovei a 
lien. (}nel ((• is n'lvou separately at tlio <d of tlu c-hajiter. 

In Ilritish ('■•liindiia for eontraet^ ., ; ver $.'.Oit Iln- oirnrr must file in 
llv n!:!n.^t Coiimy ('..iiit Ke^'i-iry llie parlienlars of the inipr.ivenifut..^ to 
I i done or hiiildiiiir er. cti.d. the nature of hi< interest in the land, naino and 
'■' ''leiii r ill'. i.oiiir:ie!or iind flu- eoiiirar-t pric". 

7Si Limit of Lien Claim. 

llu- lien, whether elaiined hy tlu oonlraetor, snli-eontractor or other 
!>i cannot nuiki- the owner liable for more than the siini jiistli/ ou-in/j bv 
til ■ .wnor to the contractor. In .Manitol.a, .\lherta and ilritish Colnnibia tIi"o 
el:ii.:i or conihiiied elaiin must not he loss than $i'0 to he a fir-f lien on tlif 

In Ontario ami Maiiitoha t!;e .\et states that for wage.-* up t.i thirty da.vs 
it is not necessary to reirister the lien, and third parties nuist inquire cine rii- 
ins wasrcs due if they would l»o safe. 

in N'ova Scotia Inhorers in conneeti>in with minins cjp(. rations i\:'\r a 

lien for two months' waires. rt.a'i.-.tratiou to he in the otli .f the Comniis- 

siimtr of Puhlic \Vork< and Mini s at Halifax. 

In Ontario, hy aim idiiieiit of I'.IOfi. every miiK r. mecliaiiie, laborer or 
other person who performs labor for wasre.s in connection witli any mine, has 

to be enforced in same wav as other niecJiam'cs' 

.nvf initif. 

,ri„.,„.f;f ..r ,]„.;.. t;,,„ ^],,, 

a '■'■•» for "0 day-' \\:\\i,- 
liens, and no ajrrrenient t 
effect the ridit of lien. 

Also an Ontario ain.ii.l.mnt oi' |;ino pn.viiii-.i thai every mechanic, 
Itiborer or other person who iierforms labor for waL'es upon the "construction 
or maintcnanc. <if a railway or the works ontiect. d thi rewith, has a lien 
upon the railway and other iin.perty connected therewith for ?>() days' wajros. 
or a balance eipial to :W day?, to be enforce.] the same as otlier mechanics' 

Tn tho Yukon a lien is a charcc upon the works up to 10 per cent, for 10 
days after works are cmpletf.d or the delivery of maferials! but no lonirer 
unless notice in writin-r is piven to owner, or the lirn reiristered. 




111 Ncwfouniiliiii'l wagtft nr 12 ilnys Inivc a lien oii biiildii. , etc.. uii'l 
for raihviivs uiul iiiiiics l"'>r :!(> thiyn. 

\Vii;!;<s lip III :(H iIi-. - u- t\ Iwluticc due ('(|iiul ti> .'i') duxii hn\ ■ liphl In 
lien in nil thr I'rnviiic ■•. In AlluTt;! wiigis fi>r six weeks iiro a first lieu. 

782 Lien When Work is Done for Tenant. 

In cat uIktc u'.irk i.> il.aiv I'tir ;i h luiii!, lliv liiiikiitij' i.i hoMinu I'l r llit» 
lieu, hut the real (stale- Itstif t-unuot la- li> M liable <x<-< pt liy couj-i-nt of tin- 
owner <if the freeliiilil, ;;iv(n in writing iir the tiiiu- of rf-iri^tcrinp; iIk- lion. 

In Mritisli ('(ilu;ntiia an-l .Mlu rta ihe .)Wii(-p of the land i.s ilieimd to 
have aut!ioi-i/.c(l th:- ei-e(-tion of the hiiildin^ unless, within three days after 
lie has kiiowli-dp- of the constriu-tion of iln- hiiildiiii; or repairs, he post.-* up 
a noti(!e in some eon^pietiou* phiif? H|)on tlii? pn-mises that ho will not bo 
r( •jponsihli- for t'l" •<:{■■'•'. 

784 P/Iortgage and Lien Claim. 

In ease when- tlu- land upiii which the wi.rk is done or nuiti rial fur- 
nished is eiu-iiinliired by a prior niortijaire or other charge, and tln' sdlinp 
value of sucdi laii.l is incri iisrd by such work or placinir of iiial< rial, ilie liin 
shall rank upon such increa-id value in priority to the mortgnpo. 

785 Combining and Transferring of Lien Claims. 

A claim i(.r liiu :uay iiidiid'- t-Iaiiiis a'.'aiii-^l an_\ nuialK^r of properties, 
and any nuiidi- r of p'-rs' ns clainiiii;; liens np'Hi tlic same property may unit(- 
liierein. Kaeli licti uinsf, however, be verified by atlidavit. A li(-ii!.oM< r 
may assiani his riirht of a lien liy an instrument in writing. A lienholdei 
Iviiv !iis ri'riif of lim i>:i-~is to h's jiersonal representative, 

788 LLc.tutory Protection of Owners. 

\'.\''h of tli{! rroviiici s riipiins the owner as the work progresses to 
I ' rtaiu pi reentajie d" thi imiiey due the eontraetor for tl irty days 
c'l:. '.letiou or abandoiUHi nt of the work wit'.i which to s.tisiy lien 
:Ie is not liable for any gn ater sum than this for any liens of which 
■ .t. before ii'iikiiiu: payment, rceeivid notice in writing. 

'urario and ^latiitolia, whin contract does not exceed $1.'>.000, the 
•.;a,i:e i> 'ju per einl.; when it i ;;ceeds that :-u;u, l.*"! per cent. 
In Xew nniii^ivick 1.'. p, p e nt. if eontr:u-t d i"-? not execel $1,000, 
12' J jKr cent, if ov. r .$1,000 and wuhr $r>,000 ; and 10 per cm;, on all 
other Slims. 

In I!ritish ('oliimbia, on contracts of over $"»0(), the ow-ner is required to 
Ik- furnished with the receipt) d pay-roll, givinir nanes of labori rs. iiincnnt 
due and paid. Tie iiiust retain amounts due labon rs, and no payment ma<k- 
in the al>sence of such pay-roll is valid asrainst licnholders. Owners are 
liable for six week-' waires to laborers, even if there is not that inneh y<t 
due the eontraetor. A copy of th" pay-roll must also W posted lip in the 
works on the first lesral day after pay day from twelve noon to one oVloek 

Tn Alberta, Saskatehcvan and Xova Scufia the owner may retain 20 p<.r 
■en!, for .^0 days unless there is an agreement to the contrary, and all nav- 
'ceiits lip to SO i>er cent, are valid if no notice of liens has been given. Tn 
'be X.-W. Territories and the Yukon 10 j^er cent, may be retained for HO 
di\ - "ill. which lo satisfy liens, and in each of these Provinces, if the eon- 

i\ ;.i.ii 



I'.i t 


i.u.. ,„i.-, .A.,.,!, *..(.... ,.., ,.oiilract..r i. .niiil,,! t.. nc-. ivi- i.auu.-nt until ht 
or *.„.,. ,,„ ,„ ..ha,-,. ..f ,k. works lurni.sla.^ a r.H^...i,.i, .1 ,,av-roll Kiving 
nmn.H o la „r,r». „„.,„„« Jui- an.l |.ai.l, „ml th- owi.. .• ...u^t r. tain thZ 

:«;;:;;;; uZi:!::::- '" '"'^ "^ "■ "- ■■'-' •• -•■»• ••">-" - -ii.i 

.iv '".•^""'■"' 'I'" "V"','- '■•' ""'•'" <■•"• "n...„nt ..f wap.s .iur lab-.rors „,. to 
,riu. ? r "^■'",";';"-''. ""•■•'■ '""r ""» '»'<■" !«■ rhat ,n„..h v, t ou-inj; tl.o ■ou■ 
•m. I..' ... .■nt,.lf.. t.. r, u... «,, ,.,,„al t.. tli- nnpai.I wap-.. II,. is „,.t 

l;;'n';i,:M;r::;.:;:;.r'^ '^^ '"■ ""^ '-*-•'■'' ''''- - -'""^ -^ --iJ 

787 Registration of Liens. 

'I- t '^/Jr''"'^''"" ," ''"' '"">■ '"■ '••''•"•■''••"I in fh- U.-i;i;*tiv Oili,-,.. or Land OilKv f.,r tl.,. ,l,s,ri.-t in whid, ,|„. Lui.l is .ituai;,!, and in llri.ish 

( ol.nni.iH m olIuT ot fh- n.aivsl Co.inty Coin-f |;, ,M,v i„ ,] u wIht,. 

tilt' work IS (lonp. Tli,. ,.|aim ^luiil stuif: 

1. Tho nan,,, an.l nsi.l.n.v (1) "( ih- |.. ,- „ , ,.,„m„^ I,.,,. , .■ , of the 
owmr ot tl.,. ,,rop,.rty to Ih> .■Uarp-I. (:!) ..f ,|„. ,,..r,o„ foT- who,,, tho work 
^^a. I...rforr,„..| ,,r ,,nl fnrnisl,.,l: alH.. th,. tin,., within whi,-I, th.- 
Work \va^ to In- done, or materials f)iiiii>li(.,|. 

.:■ .-.V'"""' 'l';>«;npti,.n of the work .lo„,.. or f„rnishe<l. 
•'. I he snm clairiifcl to 1.,. .h,,., o, to Im-cohk. <I„(. 

o\.J't -^ ;j""'''^''"'' "'■''«• !""■• (>i..".l>.r of lot. ,.t"o.), to 1.0 ,£?<.,l snffi- 
ciont for tlio j)nrpos, of rojristration. 

r.. The .lat,. ,.f ..xpir.v of the pei-io.l of eivlit (if anv) asre.Nl fop pav- 
tiirnt of work or nialcrial. ' • 

Every elaini iiin-f l>e verified hv affidavit. 

A li.^i when r,jri<tered. heron,,.., an inennil.ran,v nirainst tho pronertv 
I ho fee for re,2,.ter.n^. a lien for ,vapos is ...iK.nt twentv-fiv,. ce, ts. If 
srvoral porsons jo.n ,n one elain.. a further fe,. of „.„ c-nts is char-ed fo 
ovory person affr the first. J„ X<.wfo,.,„!la,„i twentv-five .tnts f':; .: 

L..nd ritl... ofh,-,.. an, tw..nty.hve e.nts when filed in the UeRistry office. 
In ( o nn.l.ia no h.-n ean U- elain.ed for unless noiier 

l< <l^t 1., .h^. l.r.fore the oon.plel.on of the Wo,-k ((^hap. 27, of lf)07). 

788 Form for Registration. 

A I{. fnanie of ejainiant ). of ( rosidenee of dait.iant). under tlie Meeluii, 

rm1«" , ''"T"'"'''" Vr,-^''"' "'"""^ " "™ "ix". the estate of (nau,. 
and re>„l,^,u.. ,,f owner of lan.l upon whiel, th,. lien is elaiined), in tho under 
n.ent.oued lan.l ,n res,,eet to the following work (sorvioo or materials) ; tha, 
IS to say rp,ye a short -lesonption of the work done or niatorials furnish..d) 
which work (or service) was for is to ]^) done (or nu.terial-. we,-e furni.!,,.! )' 
for (name an.l residence of person upon whos<. en-lit the work wa. ,]..n, 

or materials funnshe.l). .,n or before the day of 

The a,„,.„„, ,.]ai„„.,l as due (or to become ,iue) is"the' sum of $ 
llie following' IS tho description of the land to be charjrod : (iriv. 
nnmher of lot, street, or concession, etc.. suffici.nt for th.. piirpo.!;. of r. -ns- 
rration ). ■ i t^ 



UJit^n criyit hits bt'in given, itmrl: Tin- sai.l w.-rk wu.-, doiu- (i r 
riiatiiuili tiirnihiii.l). ,.|, i.|,,|it, uii.l the ffTuA of cmlit ugrw.J to expirtt 

(or will I'M ill- 1 I II ilic ,!i|\ ,,| jy 

( Si^'iuiliirf of cluiinaut.) 

li" jL'Vi rul join ull should sign. 

N.Ii. ThcTu is no iicci'SHity f...- lucurnu- or a>la;ii- uiiv uxpi'ii*- or 
ooHls wli.n iilin^r „ |i,.„ i.|aim_„ot „„ii| 1,.^,! ,,r.,c-,.i.liiiKs ar.'takni u, i-u- 
torco j.avimn!. 

789 iuae for Eegisteiui^ iiitua. 

V r.aiiii lur .1 ij' II hij a vdidnivtnr or Mib-coiitraftor may Ik- n-gistpped 
bciuri' or (liiriii,!,' ilic CMiitiiici, or witliin Uiiriy day,* alter its coiiipliiiou. 

A claiiii lor liiii ji,r inalciialu may lie n t,'i>iiri-.| U fore or duriu" liii- 
t'liriii-liliif; ili,.r.t,f. or uitliin thirty duyi alt«T liirnisliiup or i.laeiiit; thi^lHst 
ot vhc material. 

A claim for lii n for sirricvs, wages »,■ noil.- mav U- r pistcrcd anv time 
durii.i; tlic pirfoniiaiKv oi' tli,. Hcrvicr or work, or witliin tl.irly days aft»v 
tit.! .•,.;i,|.l,.i,oi, ol ti„. sirvi.v or th- lant day's work for >vlii<-li the lien Ih 
claim, d; thirty-one days for liritish Cdumi.ia ami Alk-rta, «0 dav^ for 
lahorers in mines for Alberta. 

Every li. n net njristen.l within the time m. ntioned here ceases at the 
cxpirntion ol that tim... nnless notion hiw been brought to realize the claim 
and a eertiiicate thereof dnly registered. 

In Ontario an<l Sa^k.-iteheawan where a bnil.lins: is nn.ler tho super- 
vision of un iir.-liite<t or eni;in<er, upon eertiHcate pavments ar.' to 
b.) ma.le, til.- elaim for a li.n may lie resristered as state.! in this stvtion w 
within Feven .Jays af'.r sai.l areliit<vt. emrin.-er or other person has .riven 
his final .•ertificate. „r lias, m.on a,,pli..;,tio„ by the .v.ntraetor. r.frsed a 
final ertificate. 

790 When Registered Liens Expire. 

'■' "■"■' "' ''" I'i-"\iiir,<. .very lien which has been .Inly re?ist<-r.d 
al)s..! .-ea-ses to exist after ninety .lays from the time when the work •r 
S4M-vi<.e end.d. or the materials were fiirnishcl. or the ..xj.irv of th.- peri...l of 
.•redit. unless m the meantime an action to realize the elai.,. under th.. pro- 
vi£ ons of this .\ct has been institute.! and a eertifieate tiliereof dnly re- 

iilo<« pr». 

the filing 

Sfistend. In Alberta they cease t.liirtv davs /if 

il!t( r ri-j-i-f :-iii,.ii n 

pe.'diiin-s am taken to enforce th.* claim. 

Tn Saskatchewan the lien remains hindini; iioiil cMnrc, 
i>t a receipt of payment or by a jndjre's order. 

And rnv person interested in the prop.-rtv affryted bv a li.^n mav anv 
tune after thirty .lays from its filin- reqnir,. the R<^iri«.trar to notifv the 
hen hoI.l.T that unless h.. .xters aofior, to enforce his lien within thirtv davs 
trom (late of s,,,.}, untie,, th,. li,n shnll cense. 

791 Lienhold'-.-s' Priority. 

Li.ns liav(. prinritv over all jndffments. executi.ins. assiimments ©r 
garnii-hments issuer] after .such lim an.ira. and over all pavnimts mnd.^ on 
account of the sale of the property or a mortsrnjre .hereon after notice in 
vrritinsr of sneh lien to the person m.iVi'ncr '•nch pnyincTits cr nffrr tl.- r--7!S- 
frntinn of th^^ lien. 



\M) \v \(.i' I' \i!N n;- 

.\-i'r:i::: i! :, 11:^1 1, is ii:'-!ii-i lv( .-1 cacli k'iis.s shall s!ia''- 'li' priwiY-'l! 
•.('covered pro rntn. aeciinlina; to lliiir -cvrral . !as-!i'< an i r.i:.!- 

In all tile I'l-nviiicc- ji'Tsoii.^ li .iuij (•'aiiii'* inr lal)f)r or iiiaicrial a'^ainst 
a lic'ilioMiT may nntifv tlic nwii' ■ wiiliin :','> days al'tcr rlic material was 
I'liriiislicd iir t'lo lab^r pcrf'r • , and rank (rn rnhi nii>>n anv amount paid 
to MK'Ii liciilioldcr. -ulijcct lo ijii' (>x(iii]itioiis t' irarni-lini'iit. 

792 Priority for Wages. 

Kvory ini'clianic or Jalvircr wliooo lien is for waicos sliall, to the extent 
'il' tliii'ty days" wajr. s. linvc priority uvcr all other classes (rf liens to ih'- 
•■.:ti lit of tile amount of the percenlage reserved from the eontraet pri^'(> in 
e:u'Ii rrnvinci" exee|)i Allii r'a and T^ritish (\iliiinhia. where tlie priority is 
'i>r six weeks' waives. All -nch iii.'clianies or ialtorers share pro rnta in the 
■ini recovered. \Va,2;e-earnrrs may also enr.>ree a li "ii hefure the cnntrar't 
"s cr>!tip!eted. 

Tn case of a <'i'ntraelor or snihcontraefor mnkiii:: default in fiiiishinir his 

ontrac the percenlaire due sne.h contractor or snli-contractor for work di>ni' 

r materials furnished at the time when the lien is daimef] by wa^e-earners 

■;innot he ns(d for any other jinryiose, or for payment of daniaires fnv the 

!:en-fnlfilment of tlte cinlraet to the preindicc of the wase-earners. 

Every ileviee hy any owner, contractor or snh-eontraetor tti defeat the 
•■•.-iovi'y thus driven to wa' earners for their wa'.re-: i> nnll and veiil. 

793 Discharge of Registered Lkn. 

A li(n ni.ay he discharged hy a reeipt si'jrned hy tlie el;>imanl •>!■ his 
acmt. duly aiithori.'.ed in writi;;;; acknowledirins payment and voritied hy 
:;llid.ivit and rei;i-ti'reil. Tlie f( e fur resislerim; the dis(d;arire is tlie same 
as fnr r^'irislerini: the idrim. 

In Manit.dvi. hy ( liaii. lN. <■*' I'.tOS, if is th.;t the aecoptin- 
of a promissory note or othi^r socnrity, does not dnsfrov or diseharse the 
liens, and if such mite is discounted or nejroiiated. the lii nho'der -^till retains 
his riffht of lien for the henefit. of the hold.-r of tlv note or otlier s'^nritv. 
Donhtli sj the sa'ii(> wnnhl liohl I'ood in everv Prnvincf nnh'-;-; a!rr<enient pro- 
vided otherwise. 

I'^pon pa^'iiierit into Cuiirt or reeeivin>r -utfici nt -ecnriiv. or njion other 
n;ri.'nds, the f'onrt er -Tiidizo may vacate a r''r!«t"red lien. 

794 Lienho'ders Deu^nndir? Terrrs of Contract. 

If the i)w;ier .ir his ;>c-« nf !'efiis(>s to 'rivp ijiforuiation 
: ..; of flic contract, or knowinjjly falsely states the to-r,s 
diir .ird unpaid thereon v.hen demand- 1 l>v y Itenhoid.." . 

1, , 1. V,hv-.le.l1'.-. 'ed.! ; >hi ■. 'n ■••. • M 

795 Mode of r.nfcrcing Liens. 
It is n •( y."c"-- i.iry to issue a writ ■>[' s>i:nmons. hnt merely t 

pr in(r e.*"e a .^f'^lxmo)! of the rlnhi vpvijh'l I ij olh'ifavif. 
Stv I i- l-i-r of lienlmMors liavin'- a chi'-u e-i th ■ sa-no prop 

Concerning tlic 
or ti;e ai;io-'iit 
ho snffer-- "*" 


■•:rhf bv any litn',. 1 ' i'ote'lit , ;i n.-l. ilf 

of a!! ih' otl'( r li' nli Id'is on the nrojieriv in qnesfin-i. 

fn Ontario an action to enforeo ;. 1i,.n n^nv ho tri.d ]•-. :: .1 : ;. ..1' ih.- 
rrich Ooivrt. or liv tlie ^.raster in Ordinarv. a L'km! ifnstor of the TTiHi 

''' "' '"■ ■ ^ T' ■■ , Todnre of the Toontv Tonrt. 

. i. l,i..N i.i-.i'.\li;i,jj. 


itish ( 

iiibia till 


ill ^\Iiiiiil()h;i. ill Kiiiir's 15 

|ir('ci'( I 

I illy 

iiri' 111 

tlic ( 

OlllltV {'Olll 

It W! 


Ill I "iiiiiv Court. 

•lU'ii it aiiKnint i« foi- $.')ii(i, biit Jur 

in Allnrta, ( li;;)). 4, of I'.K)!). 




pnifrcdiii-rs tiiav 

:i;i' ill a MiMiitiarv wav instead of Iiv suit in the onlinarv 

11 aiipcal is aiiiiwcd liy tlu' Siijirciii ■ ('..nrt if'tli 
I'omipiiicd licn-i is .$i'()0 <>r over. 

I aki . : 

'• a':ioiint of 


Tn S'askaii-Iu'wan, ilio Distrit-t ( 

curt, aiii 

X.'.ih-WV^t T 

t ITltlPlIC: 

Suj)!.' :. i .:::.! Tcrritoriai Coir,! for litc Yukon. 

Til Xi^w iJruiiswii'k, Countv Court. 

Tn .V- Vi! Scotia, y.v.iU v $-.'00 ni.'v 1 in: :.,, , 

Sufirciiic Court. 

796 Cost of Entering Action. 

In Ojitano ;,;;■! i.,,.-: ,,f r^.c Pn.vinccs wa^-. -earner.- liave iiolliinu' 'o pa.y, 
aii.I ilio eosl to f„l,ers is nr.niinai. In Ontario, lien.* for material furnished 
oi- lens hy the ooniraet,.r are diarpd a fee of $1.00 for a elaiui not e.w. edin^' 
*I»( , niid .vi.On for eaeh addiiioual $10(1 or fraetion of $100. up to $1 00() 
hut no iMon- than $10 is ehai-ed .-ven thof.frh the lien .-laiui is more than 

797 Contracts to Wnivo Remedies Void. 

I.\viy a:rn,;,:.o!. or written. e:;i.n-.<iv! „r iini)lied. bv which 
any work-nan. lalMuv servant, nieehanie. ,..v other person einj.jovid in anv 
kind ot luamial lal.or waiv. s the ai.plie:iti,..n of the various Acts "whieh pro- 
vide remedies (T the recovery ot wagco by s;u-h eniplovee is void. 

his secti..!! in Ontario, Manitoba, and most of the other Pi-viiu-rs 
woiil.l not apply t,^ any rorrman, inanasrer, otlieir or oth- r person 'vhosc 
w.iires are iunr<> than $•! a day. 

798 RaiJioving Property Aflfcoted by Lien. 

''"'"" '' ' •' •' li'ii "oiH- ef the jiropertv affictcd hy si lien 

'■■'■' - li:.' li-li: :i;id i- '• ■ :• ; ;■. . , • ., . 
n r.vai may be restrained on application to the Tlich Court, or to a iud<rr 
or other odicer having power tn try an aetio,, t^. reali;'e a lien, th<' amount '- f 
eosts t . iio at ;!ic di.-^cretion of the Curt or -Indire. 

79D Lifcorers on Public Workr. 

i" Omnrm in e;,.e:.ny con!:-::. ..,:..-,.!. , ,.;.., ,. ,.. .;ov p,:l,lie work 
make^ decinU m ii.iyn.ent of v.n--s ef ,.i,v f„r •,:;.ii. workman, or laborer, 
orfor a team emp'oyid on the vork. tiio chiim f-.r waue< must bo fi!e<l in the 
of;ii< of the nieinl.-r .;• ..lie K.^vutiv,- roun-il .-■!;■. let the contract not l-itcr 
than t',vo montlK vUv- tW e';'!,, becam:. du.., :i,id jvivnunl will bo made to 
the eMont o! any securities or moneys for securing i^. rtoriuance of the con- 
rr;:-; in the hand.- of the Crown at thr' time of filinc the claim. Si-nilar 
provisim is in:|de in all the Tr..vinccs. Tliw provisio:! do, s not iuelude 
liiUR for material that hn? been furnished th" contractor. 
805 Lien on Articles Repaired. 

Kv(ry i:..el-:uii.- ,,;• .ihti- pers,.,! V, !,•, li;;-, l,- .;, ved lab.)r. moncv or nif- 
teria' upon any chattel, a.s a orsan. etc.. has n lien upon it for thi 
amount of his claim, and may hold it until it !« paid. TTe must keen the 
urticlo in his possession to retain the lien. The propertv niiKt also be enn<d <"'"■ 

ANics AM) WA(;r.-i;AUM-:i{.s i.ikns. 

as tlidiiph it wcic ill a \varclioii.-i('. In Ontario, if the amount, iliic is not paiil 
uitliia tlin'i' iiioiitlw Ifoiu thf time it i^liuuU hiiw k-Lii (jaiil, Lc may soil 
it li.y atuninu on j^ivinir ou- week's notice in a liK-ai ne\\>pa|)ir, stalinj; the 
name <.f tlie jjerson iiulibted. the amount of the debt, a deseription of the 
article to lie S4)ld, time ami plaee of sale, name of aiietioneer. A like notice 
•in wrilini; must lie left at ,l^- last known jilatv of residence, of the owner, 
if a resident of that nninieipaiity. After pavtneni of debt, costs, etc.. the 
balance of proceeds of sale must ln> \ku<\ over to the debtor if a[iiilied for. 

In r.ritish ("olnml)ia, twr> weeks' notice must be jjiveii in the newspaper, 
.iiid ti iii>tiee of the I'esidts of the sale sent to the ilebtor. 

In Xe\T lirunswiek, the iidvertisinij is to be done bv jwsters put up in 
three or f<iur jiublie ]ihices iiisleail of by the ne\vspai>ers. 

In S:iskaicli( wan, \.-\\'. Territories and liie Vid;on one montb'j ad- 
verlisenuiit in a local newspaper is required and if tliere is no paper pub- 
lished wiiliin ten miles of where th(^ work was done, then tiv(> Tiotieos may bo 
posted n|> in ilif mo-;t jndilic places for one month, iiivin;:; the facts statod 
aboTO. It is the same in Alberts (>\crpt that the advertisiim ut reel onlv 
be two weeks insteail of one luonth. 

806 Quebec's Lien Act. 

'^hielx'c's ^feLlianics' l.b ii Act, as cot!i:;ined in tl.e Civil Code, .•^rticl'- 
20|;5. ;ind amendments, 

Laborers, workmen, arcbifccts. ai,,l liuibbrs have a preference rlaiin 
over a vender and i>tlier ere(|itors on the immovables to the extent ..f tlii-- 
additional value i^iven to tlie proj>ertj by the work; ami the privilec;cs rank 
as follows : 

1, Laborers; 2. Workmen; .'5, Architects ; 4. Ibiilder". 

Th(> rifjht of ]>reterenee exists without reirislrati:jn during: the wlinlo tiin« 
the work is bein^ performed. To preserve the preference the labon r and 
workman must ijive notices in writimr. or verbally before a witness, to the 
]>roprietor of the immovable thar tin v have not Wn paiil for tluur work at 
>ach term of payment due them. Suidi notice may l>e iriven bv one of the 
emidoyees in the name of all the otJier laborers .ir worknidi who are ni>l 
paid, but in such ease the notice ninst be in writini. 

When the workmen irive the proprietor notice of the amount due ihrm, 
such sum is tliri, di. tiicd to b.- s, i/rd ;., il,p hands of the j)roprietor, prn 
rnia. up to the amonni duo. If ib' claims are not ])aid within five davs 
after such notice, the w.irkmcu lu.iy <"oinnience judii'ial ]^roeec(lin£rs airainst 
th<> Contractor, making' the proprietor a party to the suit. 

Rut after the work has been finished in order to pres(>rve the privilege 
the claim mu-^t b'> rcL'istered within .'10 days in the registry ofTic,- of tli.^ 
division in which the nroperty is situate. 

The riaht of preference exists only one y,.ar from dam of ren-i-tration 
unless stiit is conMuenceil in the mear.tiine, nv uidc.s a b.ncriT period foi 
pa^inent has l>een stijiulated in the contract. 

To meet the privileires of the laborer and workman, the proprietor of 
th<' immovable may retain out of the contract )iriee an amount equal to that 
which be paid, or will be called upon to pay, mentioned in the notices 
ne has reeeiv<>d, so 1 on? as such claims remain unpaid. 

Tf a difference of opinion existj^ between llie debtor and tho creilitor «« 

<ili:ii|-,i ii>i;m |i)I; ItKlil.STl.-ATMN. 



to th,. .•III. MM, It diK', th.. cmiif.r shall, without .l..liu, ^iv.- ilic prupncior a 
Willi, n nolle, stating tlip naiiio of both flic .l.btor aihlthc .-rcditor. amount 
■•laiiiud an.l the nature of ih,. claiiii. Tlu- proprietor tM.n is r.o.iiiv.l to 
r.taiti the aiui^imt in (iisjmto until notified of an ninicnhle seltlcment or a 
judicial di cision. 

'i'iii^ aivhiteet and l.uild.r siiall lik.xvis.. inform tlie proi>rietor or his 
agfnt 111 y.ntinir of tlie contracts wjiicli tb( v Iiavo made with the .diief con- 
tractor within eiojit (hivs of the sipiiii!,' of the same. 

The sii).pli,r of materials j^hall, hefoiv the delivcrv of the materials, 
,:;ive notice Miwritin- t.. the j.roprietor of the immovable of the contracts 
maih- b.v him for the delivery of the materials, the cost of the. same and th, 
immovable for which thev are inten,led. 

Th,. pr,c>.,Iinjr notice has the effivr ,,f an atia,-hm, nt |,v -arnisbmcnt on 
the I'oniraet price. 

Action must bo taken within three months after i?ivinir -n,h notic,' if 
the ,l,!,t is 11, It settled, otherwise the prefereiu>e lapses. 

In, a f)roprictor bnihls the structure himself without ih, int.rven- 
ti,.ii ,,t a contractor, an,] uh.ih'v f,,r the same, the notices previously 
nunti,)n(,l are to Im' jriven to the party a.Ivaiicimr the m,.nev and he l>eeoines 
subject t,> tlie .same provisions as th, piupri,t,)r w,.ul,l in other cases. 

Xo a.ssijnirncnt or transfer of aiiv p,.rti,,n of the cmitract price, or the 
nioney borrowed, as the case may l.<..',ither b,fore or , luring th,. ..x,.cution 
ot the work, can be set up a-ainst the sai.l sui.i)li,.r.^ ,>f material: nnr anv 
payiiKHfs ...xceeding th,. <-,Kt of the work .hme according t,. a crfith.att" of 
thi- ai-.'!iif,,.t or sup,Tintrii,|,.,it ,,f il,,. works affect their rights. 

M'il-v iK.tir,. and r,-i-irati..ii. iji,. .-.uppli,.rs of luati'via' rank aflcr the 
■laborers and wiu-knn n. 

hi cas,. the pro,.,.,',]-: an iiisuihcient to pav th.^, workmen, 
arcliit,.ct an,] iiuild,r: or in ,.as,. of cont,-.station ,ji,. aforc-^aid privileired 
dlaimsov,r tl,,. v,n,]or and oili,r ,.n ditors aiv paid o,iiv upon t!,.' in,.r,.a^,d 
Talne given to th,' in,ni..vahl,. by the w,,rk .Ion,., wlii,-h ,-stimat,.d r..lative 
Tabic i.s asri-rtairhd in j, luanm-r i)ivs,.rilv.>,i bv i]i,. ,.ode of Civi] Pr,.,.,.dure. 
In ,.as,. th,.n. are sev,.ral ^.ii.lov, u ),,,„. ,,,;,,,, .,,,, uhoMv or parliallv 
du,., th,. first v,.n,lor is i)r,.f,-rr,.d to ih,. ....end, the second to tli,- tliird. anil 
so on. 

The same right extend^ to donors f,.r r, y,nyiii,.nt. t,. cv-pMrlitioniTs. co- 
ll,. ii's and ,"o-lc;Tat,.(><_ 

Every liuilder or c,intra,.t,,r wh,, em|d,.vs workmen bv the <lay or bv 
juece-work must k,.,.p a list sli.iwin- the naiiK's nn,i wagc.s^ or pric,'> of thV 
work of such w,>rkmen: tm.] ev,.ry jiavniint niu^t be attested bv llie signa- 
ture ,,r cros< ,,f Mi,.h worki!i..n allis. d ili,.r, to wlio also sipis it. ( v" C. 

807 Form of Claim for Registration. 

'• '^^ '■• liiain,. an,] n-id. n,'.- of ,.laiiiianl 1, ,]o li.ri-liv ,], ,.lar,' iliat 1 
hav- worke,! up,.n ihe inmi..vable ,d" (name of p|.opri<.t,.r i at the foliowin" 
work (.'itate nature ,>f w,.rk),— Cor, T have suppli,.,!, ;/ /„• he a mt],pHer, ciif, 
a.s the case may be, since { giv, the ilate) ; tliat fh<^ amount due rae is 
(ftmoiint of claim) ; that th,. immovabl,. on which 1 have wnrk,.d is df.scribed 


;i.s follows: {So. of house, strcft. ft'-., or (!o>«'ril)i' i>v niif, ■ ;iii(l b'>iiinl« as 
iinu'h as possible). 

Suiirii ln-fon me at this . . . 


1 '.I . 


V. D. 

J. P.. or 
Coiiiiiiissioiicr of S. G. 


A. B. 

Tills niiticc must hv maile oiii in duplicate and sworn to before a Justice 
of the P(aee or a ('"inmis-inner of the Supreme Court, one copy to be re- 
tained h\ the licjristrar and the other sent to ilic claimant with the F^ei^is- 
trar's certificate thereon. 

'i'l (• ci-cditiii- nui.-t also wiihia three days from the rej^i^traiitni of tin 
memorial nr notice jrive a written notice of such reirist ration to the proprietor 
of the immovable, or f" hi- auiiit if he cannut lie found. 

niArTKi; .xxiv. 


810 Wills. 

.V Will i<5 ii written instruineni left by a person in which he ^vea 
directions for the disposal nf his jjioperty after his death. A person to 
make a vali<l will must be of the a^re id" twenty-one years (except in New- 
foundland), of soniul mind and free from cou'^traint. or any undue influence. 

1 1! .Xi'wtoiimlhiiul a |" rson sevititeen vcnrs i.f aire iiuiv make a valid 

Wills cannot be made conji'intly liy iwn or more pi rson-. 

.Married women may <lispose of their own estates by will ;.s fr<ely as 
though not nuirried, ixceiit in a couple of the Provinces, where the husband's 
consent is still imatrinei] to be essential. "Old wrnnus die hard." 

The lawyer's toast. ''Here's tji the man who writes his own will," should 
not be fdrcrc'lten by layiiien. Xot everyone is tit to write a will: ^ome 
lawyers arc not fit. .\ will should uoi be the las; act of :. man's life. No 
wonder that sr) uiany of tin tn are broken in the courts — dictated under in- 
tense e,\eitem(nt, and ilrawn in lia-ie, they dii U"t r. pre^ iit the deliberate 
jtnlirmei'l "f th( teslatnr, nor mei t the reipiin uieiits <if natural justice. 

vS.ildiers in service and sailors at sea may dispose of their effects by 
simply siiniinz a written statement f)f how they wish their personid property 
to l)e disposid fif. Put -^oldiiT-- in barracks are nut iniduded in this sjiecial 

.\ person can only leave oi • valiil will, but may leave several codicils to 
it. hence every will an 1 I'oi'icil shoidd be diited. If two nr more wills were 
left bv the testator a'ld neitber une date !, neither one would bav- nv effect 

roi)!( !i . 211 

and th.r,. wr,„|,| be an udcslacj. If ail vv.r. dak.,!, then th. -me iK-aring 
tlK' hitost (lat< .i.u,t b<- am.r.t.-.!, .inl..>. i!.,. oonl.l muinhn,n<<W a-n- 
to aeco])t and jirfbatc ono of oarlicr in j.rcfficncc. 

in til.. udcrincUition of Wills ivgard will always In liad t.. llie ci.v.. u- 
.-la.R-os (.x,„t,n.L; at ili.. .!,,„■ il„. will is nui.l.", and t.. the evident hdcntiou of 
I..; tcs tat.,,-. If th.Ti. IS am- i,iui<-y Ix-lu-.-cn tlk- various .• ,u .a,- 
Ui'\ what \va> wnltin l,i.-l will liohl .ncr the tir~r wrilt<.ii. 

A father i.s net fomi.c.llcl i„ leave any portion ..f bis prom^rtv to th- 
.•liiHnii, hut in Ontario and the ..ilier J'rovinces which irive the "wife a 
npit r,l dnwer, he eannot d. prive lur of lier lifo int. rest in one-third his 
ii'iii propertv. 

Sil CbuDging of Wills. 

Alteraiions made 

in a wil 


ire its siirniiiir woiild nut affect its 

alnh-y. hut to take effect as part of the will tLev must 1k' initialed on the 
i)iar-in e! the will l.y 1m.i1, the Irslulor and th.' irihiCKS,'^ as eviden;. ■ iL >L 
th..y mad.' h.fore the will wa^-- siirurd : or tl;ev n.isht Ik referrc d t<. in 
a separate ineitKiranduui in aiu.tlier of the will. 

A per-on liviufr several years after inakiii^' a will, if circunistanees 
require luuny alterations, it is l,(.tt< r to make a n,-w will and burn th' old 
one, insteii.l of niakin;; a rodicil. 

A will is rcioked by the testator afterwards marrvini:, uuli>~s i],,. will 
states that it was made in anticipation ..f marriaiie; ..'r when tlie luishaiid 
-T wife elects by instrument in writinjr t.. take under the will ; .-.r where it is 
made in tlie exercise of a pow.r of aiip.dntment, and rlie ]iroper;v would not 
in tlie P.l.sence of such aj.poiiitment pass to the testator's heir, executor e- 
n.xt of kill. 

r.l2 Codicil. 

When ^^l^ a fr.v,- niiiior .dKinp s laiirht U- desired to be made in a will, 
sometimes, inst. ad .,f inakinn a new will, it is as well sii.qdv to make a 
'tdieil to th,- will. Siiel, a eod'eil should set forth .dearlv:' 

1. Th;it h is a codicil, and describe aceiiratelv the Will that it 1,. lon^s 

2. It should 111. siirii.jd and wilmssid the same as a will, but usin- th.- 
o"r| -V ulicil" in place w; ere ''wiH" is used. 

a. If it jrivcs a I,-2acy to one wbo ha.l a he.piest, it should sfat.- 
whether this IS a s(con.I he.piest or merely a c.>nfirination of the ore air idv 

'. If -dvnn.'cs bad bceti rin.lo <lurin<r iif.'tiii;,' •,. a ebil,' ,.ii ■, nei .,'• 

legacy, such fact dviiM be noted in tlie codicil. 

". Tf there bus Itcen a ehan'rr in the pronertv either bv the acini ^"i' ,n 
of more ,,r the .Jisnosnl of any part of the former the codicil should ref- 
late the iH'.piests accordin^Iv. 

813 Prevsntlnn: ijitvratior 

Sometimes in makin? a will tbe trstat..r add- a clause that in tlie 
event of any person comm.ucm- proce.dinjrs to btvak tbe will, such re-s,-,!, 
shall not recive anv portion whatever, .ven tbouch thev had l>een mentior. d 
m the w.ll to receive a leffaey. Such proviso would bold {rood, utd-s, f],,. 

:-.:t *., ..: ...■.^,. ,1.., ,..;]! _,.,,.p,;,|, ,]^ 

:.' 1- wiLijs — ixiii.i;i I AXfK — srcTKs.siD.N iiitiks. 

814 WLo M^y Draw u Will. 

Tin- ti'.-tui>ir iiiiiy write his "wn will if Ijr di'sires lo do <o, and iviry 
man t^hniild lie aliii' tu write his will. None of tlie i'roviiiei'S except Qiie- 
l)ee [daei' any re.-trieiions as to wliu may write wills, but ]ini(ienee would 
dictate tiiat none Imt a pirHin of cspi rii mv mim! -il.iliiv Im.hIiI K. inini<te<l 
with so intportant a matti r. 

In (^'uebce there are three tnrms <>i wills: 

1. Tin' notarial will, eaih (1 " aullieiitic form," is made b<-fore two 
nolari's, or one notarv and two witiies-cs of the male mx and of full a^e. It 
need not he prolialed, lint the iiotarv tyrants authentie eopies. 

-. Tho En^rlish form, whieli nnv person ean write, hnt must bo sisned 
in the ]irr-!cne:> of at li ast two witn(s.;(>s of eitlier sex. It must be jirobatcd. 

'i. The holograph will, whieh is one wholly writtr>n and siinied by the 
testator, ft needs iKi witness, but must be |)rolpated. 

The holofiraiili uill is also held to be valid by the statutes of Manitoba, 
AIlxM'ta and the North-Wi'st Territories. 

315 Requisites of a Valid Will. 

The thinars requisite to a valid will are but few in numb:r. 

1. A valid will can only bo niado by a {)erson of sound mind of full age. 

L'. The Instrnment mnst Ik> sio:ned by tho testator personally, or by 
another nnder his direetion. 

0. Tt should ]ilainly -late thai this is his la^^f irill and ieatament. 

■\. That it revokes all f'irmer wills and testaments. 

.'i. Tt shonld be proiierly dated, and the sismatnre of testator witnes'^efl 
bv at Irast two persons. If only one witness siirnt'd. the will would bo void, 
itnd there would 1m' an intestacy, except in tho ca=o of a hnlorrr.. ^h will in the 
Provinces where they are recojrnized. 

besides the above <'ssentiMls, then are eilier iiiiii'.vlaiit i-'.n^iderations, 

!. Tile name in full of the te-tator, his occupation, resilience, etc. 

■2. The jilainest of lamrmiire sh.Mild be ustvl. and it is safe r to «<«.> a 
separate parasrriiph for each be(piost. 

;',. It -li.;ilil |irovi(h' how debts iind expenses are to be paid. 

4. A clear an<l (h'linite statement of how the proj.crty is to he divided, 
and full partie-ilars of each liecpiest. Wliere all the property of the testator 
is l(>ft to one person it is not necessary to sjiecify the projierty in detail. 

r>. Tt should frive the Christian names in full of all the lesatces, and if 
there are more than one jierson of tho same name, tho occupation and resi- 
dence should be iriven so a mistake would be impossible. 

t). The testator should siirn at the foot of the wiH in th.e presence of the 
two witnesses. If tho testator is un:dile \<> write his name, it may be siirned 
by some other person for him, but in his presence or by his direction. Or 
he may siim by mak'ntr his itiark or bavins his hand jrnidcd while makinfj 
his mark, jirovidiMi: li<' iindersfands the meaning: of what is beinir done and 
assents t/> it. 

7. \ devise or bequi'st to a wife should state clearly whether it is in 
lieu of dower or not in tbos,. Provinnes whore dower is allowed, or she may 
Ijp fntitled to cl-i'io both. 

WIT.VKS.SKS Tt) WII.I.S. <|.. 

8. Kxecntors sl„.„|,l 1,.. .,.,,„i„n,, „.,., ,„,., ,^,,^„ e.m.nltrcl 
-No ..Ml IS ,K.,v>.ary to a w,|l, tli-.ujrl, 8<>,M,.ti„u.s a seal i, aUached. It 

810 Two Witnesses Essential to Wills. 

Two siibcrihinir witnesses are essential to tlio vali.Iitv of will, roxpopt 
iH.lo,^n.,.h wills, I Ik. two witnos^o. n.ii.t not .,nlv U- hotU ,,rrs,;,t hZZr 

m-..s n //,. i,rsr,.rr „irarl. oll,n: as w.ll as i„ pivsonc-o of ,1... to'tafor 

-tan.l what thry an- .ln„|.:. an.l to pivo evi.jon.'o in ro„rt. if noeo^s-nv An 
ox.vMitor or a cnMlitor al<o 1,0 a witness ncco.s.ny. An 

Tlu. .leath or sul,s,..,„n„, i„,,,p.,Hty of ..itlnT ,„• l,„il, tl,,. witnr-.s brfon- 
tli<- (leafh of Ik. testator woul.l not ilu- will 

•est... r'Tl' f'"'"';' ';''^':,""^''-': '^*" '•"• ""••"^'1 «"'I Pkvsi.-al oo„.li,ion of the 
.(> .itor. so as to satisfy tlieiiHclv. s that ho iin.hTstan.Is what he is doin^ 
and IS conipetrnt to make a will "°'"- 

i!"l..^'ra,.h wills, that is those wholly uHtfen and si.^ed I.v the testator 
iiiniMlt, do not rer]uire witnesses • "■ laior 

< I Al-o a I.-li.e<. o the wile or hi.shand of the person sipnin-^ as wine^ 
t" a uill IS void in all the provinees. ' "'^"<^'-'' 

f» Qiuhcc the elerks and servants of the notari,.s oannot be witnesses 
I - iM.tanes must not be relate.l to the testator in the dire.-t line or o3' 
"'tier, or in the de^rr,.,, „f brothers, nneles or neol„.«-^ Ti •.' 

818 Residuary Clause. 

Where (here js a n-iduary elau-e in a will .verv lapsed le^^aev or b^ 

820 When Wills Take Effect 

possession. ' ' "■ "' " 'letn.iii^ in 


wit IS 1MI1.I!ITA.N<1: — .SI<<-K.SS10X III 

Slmns or tHii-ks spfcificnllv biHim-iitlici i.. sinv [.crsi n il; 
- i< vosfcd ill fill' iimi' of tl:c ti siaf.r's dcilli. j'n.l iwv di.i,; 
I't.-r l)(i ;• . til siirh !(<r)itrf nli!i>ii,r!i -Kch Ar.wt- :.i:iv :-, 
iraiistciT, li I. ill lii- rpiiiiif. 

321 Probating Wills. 

Aftir the (i(ciii^i. (if il]( iisiiiiiif. ii- 
tlio will sliM,:|,l I :■ ri :i>l in ih. 

!::'V(. I 

.«>Miii IIS (Miivi-iiiiiil 




,>rcs(iii-(' <if tlic i>iirtics iritcrcslfd. aiul then 
as a iisiiii! ihiiiii It ^liMiiM 1„. ,>,,,v,.-l in t|i,. Sni-/..-at<- Cmrt. I;-: tli.Tc 
no 4iitiit.. c.niiu.ilinsr siu-l. roiLlin- <■( tlic will, ii'n.i .-xc.i.t in ()'.vh(v and 
I'rincc L.lwunl Isliind it is ii<i| cDnii.iils.irv t-i |.n.l)atf tiu- will. 

In cnses wIi-tc imrtics claiiiii!!:; to luivc t'.r will ii-t'i: ihrr 

roa.i it in proson-v of tho-, ini, rcsic:! ni- to prolmi,. it. .inv .i| the !i, ir.s or 
nr.Nt-(if-ki!i itiiiy Mjiply to the foiirt citli,!- for l-ttiTs ,.f n-iminisfriitinn of 
llio "stntc. or for an .i-Irr co.niMllin^ iIk- |.n-(liii-tioii of tlic will. T!i. Hnr- 
rogatp Court lia> jiiri^iiiction in -itcli inaftprs. ami a snl>|"i>na issm-d by 
tlio TOurt to .siiHi jiarty would iirodncr- tin' will in court. 

Executors may jicrform the diiti(s imposed upon tlu'iii by tin will wiih- 
out proliiitiii}: it, cxccjit in Prince K<hvard Island and (Juebec. but in larj.'e 
estatis if is Ijotfcr to probate them, as that swiins an autlioritativc declara- 
tion from tho Surroftatc Court that the will is valid. It also clollie.s the 

-editor witli the liual aiiti:er:ty to a<l;ii:ni-!er i! 
[iter the court-, if ik ri>-;u\. 



oT 111' 

<t.;t' i\-Ai\ 

■•'V 'illVS 

reiyistration i': 


In Prince Kdward Island t!u uil! ui:;., I„ •..■..liatid with 
r.fuv death of the te.'itator. 

For Quelx'c. see secti<in " Wiio uiny draw a wiil." 
Wills lie<iuealhiiij: real (>f;itc sh' iild bi n ii'islcn,! a^ well a> probated, so 
that tin title - of the devis'.s may be more easily traced. The will, of course, 
carries the title to the property without r< iristerinj:, but by re,!»ist( rin? the 
title is coMinleted in the pi.iristry Ollice. They must be proi»at<d iK^fore'^thev 
can be "roistered. W^'V '•-■ - uiidi r tli '" ' " " 


Pi'.'liatiii;L' and re-;-l( :-i:i- wills fnri!i.-;i ividii:,-, , f t'-ir validit\ 
neither oik can prevent an action from b-inpr taki ti ti cancel them. 

The pr.>bat.' f' es can he U'^ecrlaiite.l liy iinjuiry at th: Snrroirate O.'lici- 
in th' county in ■.-hich the will wiiiM li.' I'l-ovul. The t;>riff of fees i not 
fixed, as eirciinistaiices in difTer. tit cases difftr. A .-.olicitor who won'd bo 
ensaired to fill out t!; paj ers is allowed about .$!■.> 
(\ceed !i*t.nnn. 

C22 Devisee or Le^jtee. 

'. ieiratee i.: t;ie oU" wbo receiv; ^ pnuarl-' 
used v>hen the he(juest is in land. 

A le-ra-y to ■\ friend or relative other than a child »,ho dies befnr.- ,],( 
testator laosi-; i;ii!e-s the will provides ot''frwise. 

\ ]( rracy to the testator's chibi. who dies hi'fnre the testator. Nvill vr> m 
lie children of such h'L'atee. i.e. to tli" irra'! 'eh'hl en. 

A leiracy to a witness or to tl:.- wife or hi-band of a win.--., is voi,J. 
A devise to widow in bur of d iwer has nri. -itv over other lei"icies ' 
I.e^raci,.? not paid at maturity can b- «nH for the same as\'inv other 
debt and interest collected one year :,ft,.,. ,1,. t,..tat.V= death, a- tlie exe.-,i(or 

t ■ iM. ■ J . I 111' \-i -t •• til \i-l. ,1. »., .'I . .?I..,i .1 , . 

ir the esfat(> d.' 


i.NVAi rit tirijiKsi s. 


An ;!iiiiiiit_v nr n'lit •Imrirc |i:'vnl>!;' 'lit > j' tlic htiid r»li >i'l I Iv n sjisrcrcil. 

A jicriiiiinrv IciTiili'c. vtiu i:" also h di-litop to tlic to-ira;"!*. ■mi-'t a •oimiil 
T'.r ilu' (Iclit on puynu'tit -if liis IcjjMcy. If tlic ili h\ Inis bivn ii;itl,iwel it \v mlil 
Ik* optional with tlio cxinitor, unlo^-; tlip Will tlirrctcil <itliir\vi-p. wln-tlur t'l 
ilcd'.'.ct it frum tlii' li-irHcy or nnt, (■.\i'('|)t in nii.lx"... wIktp tln' drlii uwild 
bi! cancclli-il jis well as tho riirlit of nctioii bnrrr-il. 

For tlic liliic will II l'!r:ici(< ;lliil ilivisc-; oiilhiw. ■< c "■Slatlltr ol' j.i':i- 

^Moiiey or properly l:'fl in trust wilii a trustee ■ v exc'iil >r. f .- *'.'>■ 
Ifjrafee, lu vpr outlaws. 

^foncy left under a! iiniy lu' iittat-'ii 1 for ileitis uu] ,i-i \t i ]( ;'' i ; 
trust to an exeeiiior. frniir lian. or Irnsteo, to W- j-.aid ilie le<;ateo only, for hi.s 
niainlcnatice, wlien ii cmuumI he tonelied except i!i>)n a special or l"r frr:n 
liic court. iCor enn ii-oney left lo a niarricl woman, under " ri-slraint fro;!! 
anticipation '' lie iittaclu .1. 

823 Valid and Invalid Bequests. 

A. device to .\ oil condilioii t!i;it l:i p:iy :i certain lrj;noy to I! if H - 
ilie bef ire the <iate of jiaviuont, the irift to A l>ei-oiii<'s absol:;te. Ora' :i 
IWton. O. K., 4S1. 

A iK-ipiest of an annuity to a son's widow so lonji as she remains uii 
married is valid, and would also hp valid in case of any otiior person wlin 
i>ad onco been married. Cowan r. .Mien, l'O S.Cn., :.".>2. 

It has also been held ihat the iimiliition of an estate to a jierson ti'l 
married is valid, the intention heinj; to jji-ovido for si;ch person wliiit- he or 
-he reinains uninai riod and not to jirevent him from niar:-yin;r. In Judge /. 
>ldaii. -J^ O.K.. !01i, it was " held that an estate iriven to'a d:iu.i:htor so hmu: 
■I.- she may live on the place and i-eiii:;in unmarried is a valid restri'tion.'" 

I'lit. llie cmdition attaclud to a l)e<iuo<t to a pevon that he or she vM'.<i 
not marry is held to !),• void, iK'cause it is in restraint, of marriaii". 

A devise to children iis joint tenants with the c:>ndition th it iiiey m isi 
iu)l sell any portion of it except lo ea(di oilier, and -jo d'sceiul to i! ' • heir- 
'^ vali !, b'lt the eondilien is void, (iallairher c i'arlingor, (> ('.P.. " ' '. 

.\ <Muditi''n aniie.xecl to a devisj- in fee simple to a wife, with ih>' con 
dition ih^it in l!ie event she d<M'.s not disjioso of such [iroperty during Iut lif< - 
time, or by v.ill at lier d( ath. so nincJi of it as reuuiins shall be raid to others 
is an ab>oli!te iiift. and the condition in void, as it is an attempt to eontnd 
t!ir d^-'detiou if I;iiid in :i ii't.-ia.-v. "owman r. Oram. iC, X.S.Pv.. ni8. 

A 'evi-e in iee siuipl-, with t'le condition that if the devisee die inte*- 
;are and with; :;t i.--:iie tic ■ sti'.i- :^i'.all iio !•> -o:iie . th; r ;■: rsoii, such ci.n- 
ditien is also void. Farn I! r. Farrell, 20 TT.C.R.. (i:)2. 

A conditioTi atlaehrd to a becpiest that the devisee will never diopi- 
of the proiierf"'. ' ■•' ■■■'' '-' ''^ f r '•'"- 'u 'r-. • ■ void. T^r Watson r. Wood-. 
U O.K.. 4.-.. 

\ bequest i.n the condition that n lie of thr> devisees will ever sell o- 
mortpajre the lands is void. Qiiinhm. 2S O.TJ.. .^T?. 

Tf the testator desires to exercise what is called a " zift over " after the 
death of 'lie devi<' e. l.c ^■•<}-f uiake the l-niie-f f-^r ^>^ • ■ 'd''. ;iTid "ot in f"'' 

l'»li*- IMIKUJTAXCI - ML'C'i-K>«<«|ii.N i,| lll-iH. 

S24 Bequests to the Wife, 

Tl..- will .l..„il,| -uit.. .l.-iuuM ,,v u Imt ,• tl„. lK.< in il,,. wif,. aiv in 
adiliiiuii to <li»«(r »v ill lit'ii of tliiwcr. 

If ivmI |.n.|.ciry i, lH-,|ii(iitl.r,| I.. |,or, it sliuiiM Ik- ..l..iirlv stiitr.l wh.'ll.or 

It I* 111 lir simpli. ,,r nlllv a life c^Iiitf. 

l( sh<. H loft u <.i..h iminiify il shoiiM i„. ,„n.l.. a ..lianr.' ii|...n ih,. l,.n.| 
U shf IS to retain Ikt I.hiik- at tlir li..iii,.stra.l. a .•criain .. rtioi, ,,( \hv 
lions.' shoiil,! Ik' ns..m..l f-.r Ii.t .■X(•l^l^iv.• use, 

If slu- IS t., l,„v,. a i.r cuw. or [multrv. .-t,-.. it .lioiil.l In- state,! l..,w 
t IP foo, for il„. sa„„. IS ,o I... ,,rovi.l,.,|. ai.,i in tl... ..vent, any of H.em 
.«hon ,1 ,1,,.. ,1.,. ,v,|| slionl.l s.-tti,. liow til,. I,«s is to Ik. n.a.I,. ^....h'ulao what 
bnil.lmi^s arc. reserve,] for them .jnrin- wint,r an.i pastnt-au'c- -inrin- snniinor. 

Jt t le tarin is to Ik. worked l.v the s,,,, ,.r ,,il„.r lu ;,r relative ni.l n 
slinro to 1„ .,v,.n il,e wife f,.r her snp|.oii. the will >iionl.! el..arly .tate the 
f-.n,]i:.o,K ot the le:;se an-l tl.,. relativ.. |,rop„r,i.„ of ,„ea.!ov.-s an,l erops. 
the ^vifo_s share in e..».„ !,er share of .ar.l,.,, v..!r.-ti.i.Ies. frnit. ^^rapos. etc.; 
or the wife sho.iio' Ik. left free to make h, r own term, thrond, the ex-,..ntor. 

It must Ik. re.nenil«.re.l that a will is n-t a ^a-e. I.nt it. mav 1)0 ina<ic. 
U. operate as a has,., ami. if eareiessly .Irawn. the .L.or r,.r future frieti-.n ia 
left wi,l(. open. It may alsr. tie the hands of the ev,,.ut,.r. 

£25 Executor, Executrix. 

An exeeiiior, or . xeeiiiri.x if a woman, is one aj.pointed l.v will u, . arry 
ont Its provisn.ns and di-triimte the ..slat.- amonir the JMnelieiaries. 

A minor eo.ihl he app,.inte,l, hut he w,..ihl not U. alh-wed to enter ....on 
L.H oliice he was tw.nty-one y.ars of a^.^. and ,l...-i„ir that tin.,, tho 
estafi; wo.iM !»• a,, re,l hv the n.inor" 




hj the S.ircou-aie (Auirt. 

A., e.xee.iior may h<- a h.jrat.e. or a ere.liu-.-, ,„• ,, .i.l,,,,,-. Jt was 
forn.erly the r.ile if a dehtor wer.' appoinfe.l ...xec.itor hi.s deht wa. for-iven, 
but tiial IS no l,)i.2er the eas(.. 

. . •'^" '■■^<;-">'".'- ""'.V enter at „.„•,. ..p,,,, ,h,. v.„rk of ea.-rvin- ,.ut th,- p.'o- 
v..smns of th.. w.ll. as son,, a. it has he,,. piihlL-Jx ,,,..1. iH.fon.'l,, In-r proved 
o-xcept .n QnelH.e an,l I'rinee Kdwanl Islan,l. ' \-\.r ,he other Provini^p! 
where then- is no money in a bank to Ik. drawn out. and no del.t.s ronnirin-' 
then, to ,.„t,r tl,e eo.irts to f.oll,.et, it i, only a wa-t.. of n.onev to j.robate an 
ordinarv will. ■ ' 

An ox<entor -nay l.e ap.,.int,.,l -nar.lian as w..l!. and if no, so api.ointr^l 
by I !,■ w,ll an.I there aiv .ninor ehildnn who have no piardian. h<. may anplv 
to the Surrogate rour, to ho appoint..d puaivlian. In eases where minor 
ehildren wonhl he left with both paivnts dead. th.. t..stator sh,..iM appoint 
aneseeutor a !rua.-,lian as well to s.iel. infants, thus savini; the e.,st „f ap- 
pointment by fh(> eoiirt. 

An exoentor appoint.-.! by will .lyi,,-. his exte.itor mnv ..ontinii.- to 
afln..n,st<.r th.. estate: but if the .1. eeased exocitor had been' apt.oint..l bv 
the .Sirr.ijrate Court, th, n ano.her e.x.<.uior would hav,. f., h- ai>p.)int...l to 
take his place, either by the Surrosate or TTiirh Court. 

Exee.itors who ..annof arrrre as t<. the iiianairement .if the estate. , Mher 
line or all may apply to the eourt f.,r insti-u.-tion. Th.' eonrt may then 
eith.T dir.>ef what s|,,,l| 1„, , or mav it,,.1f .ns.,,,,,,. fh,> ,^,i,„|„;,,ratinTi of 

JtJiJCLXlllli*' III IIKM AMI l.lAllll.rillK. 


1 «• o«ta ,., ,n wh.oh .-iiH- thu. ., ur,. Ir.f | from luii.r.. lial.ilitv. In ■.11 
lUMs wlieiv ox.c.nors u....! a.lvi.e tb.y may apply to the cuiirt. ' 

Kxcnit-.i-H c-uiniut act by pr.iNv .Nnpt in mir.-ly c-kiicul work, luulur 

an .h..y employ .„I,ei lor. t.. .|o what th.y .lo ,1. .n...|v.>, an I ..l,urgo 
liii- cwt iigjiin-it thi' f,tatc. *= 

111,. i.I,"/''n i''"' •' ".'•"■'■■''' '"."'""' """"" '""' ■■"- " ^■'""•i^ "i'l""- --n.scn, of 
UK- nii.-liiiiKl i.r judicial aiithuritv. 

In \,.w I5nin,wi.-k an . wh ^ i..„ ,„.■ .,„ nn.„i„n, will, the 

.jr.. rar wit „n thiv. i...,ntlH may Ik- ..rvi.l wi.h a notin- in ^^fri.i,.; bv 

till ..,,,. .lay. Ii„m ,.,...,.,p, ,„• Mi.h n.-li... ;.ppli,.ii,i„n may 1.- made to 

. igt. t.i .1. inand invvm.iry. 1 1 n,i Mid. invnt-ry i., lii.,] ,.„d ..^ ,„„ 

I .• o ... J.,..,.. ,.,, „, ,.,.„,, „... j„dp, iif,.., ,l,ir,y day> thl. time 

«1'" hi. sh.iuld Ik- „.ti.rn..d, may .... hi. own mo,i..„ mak.. an 

"I'lir Inr ihr nttini „{ Mich inventory. 

82G Executor's Notice to Creditors. 

Ti... followin,:: form of noiicv ...M.-utor., may nx- in a In.-al n. w..pupor 
or the oliifial (Jaz'llc: it* 

AV (Stall- of l.c.iKfd. 

Xoti.v is hcivhy giv.n. pniMianl to Chapter !->!>, Section 38, R.S.O 
oZtTf I pronnee.) that all [htsoh. having claims against the 

"'"''' "* ;•''"»<' "f the Towu-hi,. of Countv of. . 

yeoman, or as tlu- case n.ay U-), who .lie.l .„. or alM,„t ih... . . . '.dav of 

l.>. ., are rcpiin.l to d.diver th.-ir claims ami full particulars of such cl'ainii 
, • • • ;. "* ""^' t<'«n "f Executor, on .,r before the 

'7 ; • •■„• ■,■•■■ J"- • -^•"' '•"" "»■''•'• ^''^' ^-'i"' 'lav of. ..■■.■■■ 

1 . . .. will distribute the assets of the said ainonfr'the parties en- 
niled thereto, havmff r.-ar.l only to tlw claim., of which 1 shall have received 

.' /•. »i 1 , ,• . •^- ''•• l'.i'cculor. 

After the di... imbheati.m of the above noiicc the executors mav, after 
the expiration of the time stated in the notice, i.roceed to pav tha.- who have 
delivered tlicr clamis. and then distribute the balan.-, amon/the benefieiarirs. 

If debts .bonld iiftcrwanls ap,, In- sued f„r. .„d rc-overed, each one 
^liull nlm„| and ,,;,v back to the executor or a-lmiiiistrator his rateable 
part ..1 ih,. ,],,|,, .|,|,| ,.,„,^ 

827 Powers and Liabilities of Executors. 

'Ili.v rci.n-sent the dee.,,-. ! in MUlii,. the alTaitv of the estate and 
di. rii.itini: the procee-ls aniem, ,be beneticiaries according' m in-trnetions 
111 tlie will, but il no will, then iu-eording to Statute. 

The.r may pay debts or .-laims upon any evidence that tbev .i,.ein <uHi- 
enn . may comiiromisc or submit to arbitration any .lebt or eiain, a< they 
think, may pive ami execute such Msreenienf., releases, etc., as th 'V .leeiii,l,ent without l^.-ominff responsible for any loss .K-e^sioned thereby, 
unless forbidden by the instrument app,.intinc them 

They may eomphte whatever eontracts tiro d<H-ease,l wa< bound to ,.om- 
plete If lie had not died. 

'nu'v n.av „,ai,,,ai„ an :ieti,.n for all t,,rt. or ininries t.. ilie nemn or 
estate of 111., .leceased, in eases of lib.! and slander, that have not bn.i, 
barred by statute. Third j.arties may aNo brin.- a.-tion .onin^l the execntor« 

^^I't> I.MIlUITA.Ntl- -SIH I Msio.N HI TIK8. 

or ii'liiiiiii-iral If for tun. up iiiiiirifs i, ,v,,il .^ ,|,,|., ,i. , ,i ii 

\n„ngUl iipMriM tli.. .l.r. asr.i if 1... ha.l n-t .lir.l. 

An .xoeutor .,f ., .1, ....... ...1 ..vrm-r ,„av .Ir.uv .1 a.^-,r. ox.r.Kor'H tnnr 

Th.- Suit.ifr.s iillovv „„ . x(.-iii.,r ..r u.Iinini.triilnr i., ultl,.|rMW ..:om-v <li- 
P'-^-itfMl ... a Lank in fl„. nam- ..f ,1,.. t,..t«t.., ' 

hnmcU II,. ,...„.M MiU.,yu'Ui\y l.uv th- tnortza^- anri l.av,. it ^^<.>unu■,l to 
I'MM, nn<l h,.ld It as .M,P„ritv f..r tlw prim-ipa! tnon.y an-i intrrr.f. 

Kx.rntnf.^ tnnv prnvi.!.. f,.r tl,. ..Inraiion ..f llw „,;,„„• ..l,i|.l,-, „ an.l t^.v 
nicissarv rxpi iis, ,< oiit i.f the fsfatf. ' ' 

Hay i.iav alx. .net a snitahl.' Mmnnni.hi i ,-,as,.,| aiv-r-iin^' to h\% 

<fatn)ii in life, an-l piiv f,.,- tlir same of tli.- estate. 

Kxcctors of a .l.rras...l nu,,,!.,,- of a parhH-rslii,, tir.n .1.. not l«^,m,. 
! I-., an.l ..annot int, rtrr.. with tho!,i,, h,isin,.ss. Tho .1. 

!;;''"";;i '.•:';;';^' "' '«• "-•■'•t>:iM..d and ,..1,1 „ur by th. m.rvivinj. ,,art- 

.'<r-. and if this ..annot U- .|,.,... «ati.fa<.f..rily to th.. ..x...ntors. ,!„. ..srvutoM 
...ay <m,.r action f-r ll,.- partn..rship h„ to 1«. w..nnd up .n.I th.- r^.-tn 
•nnvrrf-.I into ,.a<h an.l .Iivi-h-.l ,h p.-r ,,artn..rship 
329 Discharge of Executors. 

\n cM.rMtor, who is i„ li,.v, d hy tl,.. h.^irs t.. h,- a.-liti!: mnvisolv or un- 
JMst y. may !„. coniprllcd lo -hov.- liis !,,.,.ks I, for,, th.. Coi/niv .I„d:;,' bv anT 
..t til.- Iiiirs who IS twi.tity-.,iic. yoars .)f apf. 

\n PyfTMitor that is t.. h, wasiin^r i|,, , .„„, ..^ ..onimittinj; ai-ts of 
ii.j..-ii...- :;-,.iiai t...- ii..irs, may h,. rciuov.-.l by p.-...-. ...linjrs in th.. SurroL'at- 
oni-t. A jrimrdinn may ..!.. 1... ,.,.,,„ir,..l ,,. ,,,„i„„ ,„„, ^i. accnnts 

in ..oim-cf!..,, with tlio property of inf.uils „nd..r his rontrol. 

AK wh.;ro an ..N..,.„tor. or o„.. havii,.,- a lif.- -stat.. in prop.Ttv. Wom<.- 
.nsano tl... I,...,, or any por^.n int...-..,t,..| i„ th.. . s.ato as •' r..v..rsionist " „ „. 

.onrt H,ll takf tlic nr-p.-ny out ..I tli.. ,,f .1,.. , ,, ,.. .,,. ^„„i. ,„„.,„, 

830 Remureration cf Executors. 

ii,.- ; ;..i,, n-.-. of r.v.-iit..:-^ ar.. a rhiv-r,- np.>n il..^ ..u.i,-, an.! ih.-v arc 
(■ to an ...initai.].. p,.n.pnra.r.. of th.. proc....ds of rstaf.- or trust fuiids ♦ . 
.•.■.-.niponsc tboin for th. ir tinu- and labor. Th.Tf is no fix..,] farifT of f.v^ 
lor .xm.tors, but if th.. b.tir.(ir.iari..s ,»I,j,.,.t to th.. an...nnt diarffo.!. the 
f^:..<.-,f,.rs shoul,, ,,,,1 n, an it-mi;', ,1 lull of tl,. ir an,] th,. p.-^rpontaco 
tho.y ,lmn thcv nr.. entitl,.! to, usually not r.xm>.lin- fiv.. p,.r cent., boforo the 
.In.l-,' of th.. Rnrroffat,. Court. wh.>, in passiMr tho .n<.ponnts. has p.,wr.r t.> im-rf-as,. or .liminisl, tho amount .-harrrod a- s-.^ms tr. I :,„ ,n b:. ,.,init- 
nhio m I'iXfh particular case. 

831 Executors' Release. 

Wli.n an . -I .!, In,, 1,...,) ,|i-i ril.iii. ,1 anionn: th.. l.-n, fi..iari,.s. d. hts of 
<ior.f nscd of wbi.-b ih.. .■ have lia.l noti.-.. bo. ii paid, and own 
tv... t-n.rntion 'f.-ii r-o.iv..,l. it is not nocssarv to pr..-,>nt an;/,.d -tatn- 
mont of tho .lonlina: with lb;, ostato to a Tn.l-r.. and rof-ivp a d! >•' artr.. 
Thfi follovvin.r form of rele-isr.. iriviny. tho namo an.l addro«s of oaob on nn 



iicc'iving u b*'!}!!!'^! or ii (ii.-<tril)iitivf hlmrc n) tlii> i hIuIc sipicil by tlnin with 
II witncM to tht'ir ttignutiiri', uh mIiuwii U'Idw, ix n legal di^tchur^i- of tlio execu- 
tors froii! fiuure per.-j'iKiI liiiltilitii-i tlnrf\vith. iiikI (Iim's in.t fsikc fnnii tho 
estate the lieuvv eiitirt t*( < s that ih4' otli'-r III' t!i'nl iuvolvis: 

I'-iiow all men hv tbcf-c prc3cnt3 that we, a. I)., ui th. 

t oiiiuy ul (tKcuputiim; ; (J. !>., of the County ot 

(«|iiiister, inarrieii woiiiiin, or us ea.M- iniiv he) ; E. R, of the County 

ftf , ete., hereliv aeknowltiljrc thai wt have reei iveil from , 

exeeiitor.s of the istate aiiil i iTec!- ><[' laie of ilie ^aiil (nluee). in 

the County of , tKfe:t«MM|, thi- .siiiii hereimifter set opjiosite our si^nift* 

tuns ii! f'i!l -^nti-fuetioii i;u<l piiynieut of all siiin or suiiis >«f iiiouev due to 

US. the ehililri'ii ( urainli'liiMreii, if aiiyl, of tlie -iii<l ileceiwoil, as 

our (li.-ttribiitive shuns of tile said estate <'t .. (hcea^ed. 

.Iln^ WC tlXl. fore CO Iv^ t\Ki-C VV.i^:\\l. il.ui .>, ivl..asc. ipiil < luim 
and firevc r disehurp' the aforesaid executors, their heirs and udiiiinistrators 
id" and fniui any ei..'iii for said ^ '--triimtive shurcs. 

'in WUilCSi' \Vi CtCOf v.e hav, htreuuto si cur hau(!> and seals this 

day of Ill 

Si^'U'-d, Sealed and Delivered 
ill the presence of: 

A^ t.) siKiiaf.ire of. 

A- '" -ifniiitiin' i>( . 

As to signature nf . 







It would add to tiie appearance if th,. :d).,ve furiii wonl.l Ix' written on a 
tyiunvnter, as it would 1„. if prcpand in a law oHie... hut the naioes of 
ncipients „f th.^ witn.-> i,r,,M !«. i„ tli haMd.vntin.; .,f the persons tiicm- 

833 Intestacy. 

luu^tacy is where a jpcivon <lies without leavini: a will. In such, 
It property is h^ft, unless the heirs can agree aiuoni; themselves as to the 
onisiou oi the property, it must be distributed ncconlimi to the .Statutes of 
the T'roviiu'e in which the proi)Prty is situat.-. ALso if the deceased lift 
debts duo him that could n..t he eoll.cled without suit, an udiuiiiistrator 
|Vould have to be appoiiil( (1 in onl. r t<. sue. An.l if the intestate left mouev 
lu a hank, an administrator vvould have to bo appointed in <u-der to draw it 
out, unless he left a signed checjue covering the amount, or o signed cheiine 
in bliink. or gave a power of ationiey to smiienno to dr:iv,- the monov from 
th<! bank. 

834 Adn^ini-strator. 

Adiiiiui-tiator is tlie one aptiointed l.v the Surn>-;.i!e Court or Co'irr 
of Pn.bate to .settle the afTair^ of the estate of a person who dies without 
leaving a will, or neirlects to nauie an executor in his -vill. ..r n.nmes one who; to net. 


Wn IS I.Mll.l;lT.\.NCK— .src.K>M..N hCllF/*. 

Ti ri-ii. 

In A-,wroumllan<i tb,. Suprt-m.. C„un. ;„„l ;., v„k,,„ ,], 
< ..urt grants l-ttors ,.f adinlnixraiio,, an,l ,,.-„l.,u, 

Til. n.,irulat.„n.s in .-a.-h ..f ,1,. !>n,vin,.,.. ,..„,.•, n„n,^ M,.. sottlemont „f 
ates ^arv c.„„>nl..,.al,lv, as al.„ .1,. .... ,„,,„^,i,„. ,1,,,^,,; ^ ^^ 

Mo for a i..r.„n as an ..x.rutor „r a-iuiiHstrator to vulwr ..m-ult a 
l-vv..r or ,ak.. full ,nstn,..,ions fn.n. ,1... „„i..,. „.,„„., ,,„, ,,,!;;:,;.;■;:,'.' 

i< nJu. I'll'"'''"" t"'-'' "•'"■-""*• "'"' '••"^•'"^' ■•"''' ""'' "•■'•■-""'I ""P- -v, it 
' ..t„.„ Jf t .,- l,o,r. .-an all agn .■ a. t., tl... .listril.nt.ion of tl,.- ,,n,p,.r,v 
~v=^".. 1 l.v all. an.I >,.,l. wjll l„n,l all to al.i.l,. by it. An.I if lan.l is to be 

iiii\ aro ail of full ajrc *^ 

An ailiiiiiiislrator"-; (luiiis •iri. ..\••lf■lI^• til, . -i f 

<n Mr,. 1,|. i;.,l,;i;.; . «\.i(th th, ,;,,ii.. as ^bosc of an f.Nocutor. 

> ^n \n. liabilities. An a.lininisrrator must, bow -vor. -ivo a bond for the 
.I.U- P;;r^;r..un.... ot bis tri,,t. wbilc an .....i.tor usuali/no.a L^^ !lo I.^ 

unMr-^oJ- " "" •• ' r '■'"■""""■ "l'I-int<-.l in it. tlu- a.lininistrator 
nuist ..irrv out its provisions tbo as an ..xeeiifor u-otil.l <lo 

As soon as an a.hmnistrator is ,lulv apn-int..,] bo will tnko possession of 
prc,,o, V a,.,l . ivi, . it aooonlin, to tbo Statutos, or Will, [f ,b. ,. I I 

i«b. ' ,;: '""'"'"'• "■'["• "•• =•">" """"• I""'-" "■>'- -'.V ••l-noo to be in 

r:': H 'i"::''-:".::"' •'''•''^■/:r ""■ f'-'';T^>- "--•»-'-• -i'- they 

!i'as(^ oxpirc 

liayo a valhl loaso. i„ wbiob oas,. tliov niav b..l,l it iin. 
unless soono. iortninato,] bv mutual consent 

a ore^'''"; iT'./T'"" '"'^'T-'"f '"•"'""•'^- =""> '»•-'•'■ '-^ro no known heirs, 
aon,., ,„ , } ..„0 ,n,-,y a,.ply for of a.lministration. Tb,. Vitoniev 


persons chiiiiiiiiir to b'lve t.|„. will 

In eases i!o will is f 

» ou.t lor letter-, of a,|iiMn.<tration. and to ..euro an onler for ibe nro,lne.i„„ 
of any suppose,] will. ,n,l to examine witness,.s tb-T.-witb ^ 

•..h.unistru!'!l"V'l', ^""""''"""^ "^ 1="'"- •■''''!'• •':?• Pn'vi.b^s that l,.,„.,.s of 
■"l..uni>tr,,t,on sball po, be ^rante,] to any p,.rson not a resi.b „t of (Ontario. 

83G Distributirg the Estate. 

E.veeiitors must roni'Miiber that lesate, s .ire not n-onir, ,1 , i . 

Xv i^"r^y'':''i'-": "' "'"" •;'• *"""•' "'"^' "'••"■■• '•■■ -ain„i . 

.iobts':j';!;r"s;:;;;; i;r7T ""•' "'^^' "'■ "• '^''^- ••"• >'--- -"> ""■ 

ban.) -n,,! ifl 1 / . '' ;"""* '"'''■'"" ''''''' '•^'^^•"t^r for both bns- 

funeral exp,.nses an,l b-eames of ..a.-b must be pai.l out of the proper e t tV 

are to he pa.-l a,„l no» out of real ,.st„te. If thnt is not suffieient. th en anv 

(he prrperty that • ,,s not b,.en " spe,.ifioa11v boqiwath,-!" to nnv p"rson 

^.ou , be resorte., to. „.,.„ aft..- that the propertv ^speeifieallv W„.a'b ;" 

I'UK.M i>l Will. 


ili>mv I'roir! ;iii iiisiiraiioc jiolicy is [Mv.ilili- aci'imliiij: t^i its It rin:,. iunl 

■ ioos ni>t Ikchiic' part of llic i-.-tatc unless ii lias 'im'cii iiiclinKil in the wiil. If 
tiot tufiitioiK'd in the will, the executors have nothing to <' with it. Whether 

loniioned in ihe will or not, it is t're.- t' all claims ol ...ilitors if |i:i_val)le 

■ > Wife or children •■r other |ireferre.l Ix netieiaries. 

Ill the matter ni' in-ni'aiir", linwtver, if iln- money i- made [layalile to 
the wife, who dies hefore the te.-tator. tlieii in that ca-.' lii.' mmiey will fall 
into and become part of the estate. 

Where a will i~ niadr and any prirtinii oi' die piopcvty of dicea-id was 
not dis|>ose<l of in tla will, it falls to the heir- a- ili'>n^di no will had hec n 
made, and the executors iniist divide it anionir iliem aec..idiiiL' lo Stainie and 
without n irard to the lieipu-ts in the will, unless tln're is a i-i'sulnani rlnus, , 
in which case it would fall under that tdaiise. 

rrojierty heiineailied in trust U) executors to pay over tin inciiie tn a 
certain jK-rson for a leriii of years or for life is a separate tni.-t, ami must 
ho kept separate from the rest of ttho estate, and must not he used i "• pay- 
ment of .lehts except ill ihe event liiat there is not sutlicieiit other pnperty. 

When! there is a deficiency of assets to pay dehts it shall hi' i!i>tril.utod 
jiro ritl,i. witiiout preference, anion;: them all. .\ delii dii- an exe.Mitor has 
no preference over others, neither has a jiidjrnient. 

Property in another Province or country must he maii.i';v,| accrdiie.' to 
the law d' that I'rovinee or countrv. no matter where the te>tal<'r lived. 
Where ti. re is doiiht as to certain lesracies to whom to pay, the oxecut/>r8 
t'lay ))ay the tiioney into court, and in that way freo themsolvos from liahility. 

In the niiittor of dower, in a case where the wife has heen absent and 
inlii ard of for seven years. th<' law nirmniirs that she i< dead, -j'^ that aft«'r 
'hat ]en:;th of time the executors are protected from ))ersonal liabilitv in 
■ayin" the whole .-latc' over to the heirs, (liles r. ;Mnrrow. 1 O.Ti.. ".27. 

Tluwe who may a«ert that the ah-ent one is alive jj'frr (h;it hnirih "f 
lime must 1k' prepared to pi ive it. Witiir r. .\n<rrave. ^ 11. 1... {':;■,< 1^.;. 

Kxecntors are to endeavor tn collect in all debt- wiihin a r, a-onaMe timf\ 

■ •r tiiey become personally liable for any that occurs, especiallv those 
debts sfandinsrout upon personal security. To allow a debt to outlaw would 
be deemed nilimf'lr nrnhrl. and the ex. culnr-: would bv law K- tequiivd to 
Miahe it tr')fid. 

KNeciilors must not pav a debt of the te-itator that ha- been b.nrre.I bv 
Statute iiuh-js ihe will so directs. 

838 Form of Will 

'I't allowing' form id" Will covers variou- kind- nf bequosts. and inuT 
' e foil! ii-efid as a jziiidi to llin;c not accustoiued lo vritinir wills. 

I. William Smith, of the (^ity of Toronto, in the County of \'..rk. 
merchant. InMnir of sound and disposinj ntiud and memory, d.. make and 
publish this my last will and testament, hereby revi.kinir alT farmer will- b\ 
me at any time heretofore made. 

1st. I hereby appoint my son Clarence, and F.lias .Xuinistino, l".th of 
the City of Toronto in the County of York, to be my ci>-execiifor-^ of this 
my last will, dircctinfr my said executors to pay all my debts, funeral and 
testatncntary expenses out nf my estate as soon as conveniently mav 1 e after 
niv decease. 


WILLS- ;.Mn.i;MA.\cL — sri ikssk.n |.| ii,;s. 

-i.l. .wi,r I „■ ,,M.n,M.„r .,t my sai.l .1, l.ts i'unrral iiu<] t...stainnil:.rv 
xpcns,... I ^MV... .I.AL... :„hI lv,|u.atl, „!1 „.y real an.l personal oslat. xvl,i,-l, 
1 ...ay n,.wnr l,.,vaf., ,• 1... ,,„.-,.<.,.,l „r ,„• in„.,of,.,] i„. i„ tl,. .n.nnor r„lknv- 
iii.i'. Ilial r-< ti> cav : -^ 

r;« ,:'•■■'• '-'■^■''•;'''\'-;' «"<' loiut.atl, U. „,y l„.Iov<.rl wif... II^uTi... .V„L!ia 
( u i..„ ..f.]..,u,), ,v,.l,„;u ,m,...ach,u<.Mt of wast... all that .„v fr. . J.,!,! will. 
i-inl<lm- ati.I apjun-t.-iiarKMs th.'ivt,. hvU.usms. knowt. as [..."t N„ li i„ th.- 

J roM,K-o „f Ontario, .• l.y a.l,n. asun ,n..tit o„o In.n.ln.J aon- Ik- 
tho .a.„r ,„nro ,.• ,.s. f.r Ikt .;],.„.. .!„ri.,^ lu.r natural lii^.. ,ud upr>n'l...r 
doeoas,. t., my r-b.l.]ro„ a.ul tlu'lr Inirs. r, s,„ ctivoly. share .and sbar.. alik. . 
Uh. I also , .v.i.i l.!-f|uoafli t„ ,„y s:.i<l wir.. all that frfchold„a^.,. or tciu.!,...nt. in uha-h I now r..H,i,.. know,, as l.oi \„. :;,;, Unw- 
liuul Avtnuc, .n tl. City of Toronto, will, the !,^a.-.ien. ontlmil-lii,^. an.l 
q.pnrt..,an<.e. thoreio I,..|on!rin!:, to-rrthn- with .,11 „„. hon^ehohl f,.rnitnr. 
piato. :;,„! ,;^„t:e!. ..f every ,1, seriptiot, l,,.:,,: !„ a..I .,n t!„- ,,ren,~ios; 
for Ih.r own n- • al,sol,.,.!v : also 1 l.< ,,„<,uh nnto n,v sai.l wife the s,nn of 
n\o thousand d.llars n.^w deposited in ,.,r m"w i;, tl.e Trad, rs' T^.nk it 
I oronfo. ' ' 

••■th. ' L'ive d.wi... and i.e.|U'.aili to ,„y .,.„. Kanv ivhannd. the frnn 
..^■nv. as the \\.ln„, (;r. u. J'iaee. leinjr r.ot \o. >. intl,.. y;,,, fW.,. j^ 

"c-k at.d ntenols whie], niav l,e ,lu,vnn ..t th- t::L. of l v ! ,,,se- -.nd aUo 

he prn;„,-ty ,:, ,1 ,. City „f Toronto. Om.. kn^wn as t! i .' : iiv ton tIi"^ 

he.nir Lot >o. is. „„ the no,-th si-le ..f Kin.r Street, s-.thj, et t- a I, ..w.v'.'.f 

five h..n. red dolhn-s to !,:• paid to n,y nejl.ew. .I„hn .NleN-.n-ler Smith ie 

nx-., e.,na an.nud .nstaln.ents .X ,wo h,:.,d.v .1 :..„! ,iftv ,!o!!ar< ,.eh with, -o 

n .Test, the hrst pav,,..,,- t. I„ eon.e due an.l pay^We wh-n '.. h...'-.:, 

;:::":;;;:"■ •'•"■- "^ "^ ■ -'" ' --• ^' •"• "- ♦^-^ «•!-'•?• ■- -i'- -..i-i 

t.v sh .,e, a, th. eap.tal si..,-: of the I'r,.vi„eial .\atn,-al Ga. (^.„,panv 
^ 1 ■'•h stan.l „, ,ny na..,- .„, the !,„„ks of th.- sai.l eompanv : al-=., two tho .sand 
'I'-n-s n, ..:.h. payalde ..,,1 of n,v f„,„l. ;„ „„ T.-a.h.,;- F!.u,k. 

.'h. I i:ive an.l h,-,p,ea!h ,oy o„|,| wal.-h. will, .hain -.anl -v 

Hh. I piv- an.l l.e.i;!eatli to invni.e-. VHe. A'.,til,|., K',..,<T. •« 

oire. I uaiiuay i oii.paiiv. 

:•!!. J jrive and U .p.,.ath t,. my „. ph..vv. .(oh., .\hxand, r Sn.i,.- .rorc- 

-^'"l- " l',U^vv .d hv.. i.,.„.i,-,.,l dollars h. .■,.i„l,,. p...,vi,|,.d {.,■ , Tn 

cas,. n,y sa..l n. pL.-w. .l.,h„ .M..,M„der S.nith. shall .lie nnder he I .f 

.vve,,ty-one th. :. ! diree, that th- sai.r$^On .l,.ll g,. to mv Id^^. 

Ah.tra.l Jane, for h<T al.-oh.f. n<e 1 Iwi.etit. ' 

All the residne .f my ,.-(;„.■ pers.m a...l .val not h.-reinhefor.. di- 
|"-..,| ..t I fT.v... ,1, vi- a.,,1 berjneat), nnto mv -.n h^ : ! , i,-- ..n-l 
ass.irns fnv-ve.-. " • ■• . 

■i'i;i-.-iTi:i:.s and i-i.-i 

1.' .vlt„o^. wluTOol 1 I..,,. l„.n,,nt.„ .-, t n.v lu,n.! this .,.,.th 
in «f<o .^c.-irof our l^.rd ,mo thowsin,! nine l,„n.Irc-.l nn-l t,n 
-:^nr.!, I nl.I.sbcl nnr! Donlarc..! l.v the sai,] WiiiiaMi 
Sn-lli. tlm km:.; ,-. :i. u:;,| i' , I,,..t 117// aW 

iiiy itf June, 


i.\M Smith. 

y<4/rt;,„„/, ,„ t!„. ,.r,..t.n,v „f us. both present 
tojretli, r i)t th,. .aiue tin,,., ju.,1 iu his ,,r,soneo at 

lis mniest, nrxl in the pns, nee »f eaeb oth. i- have 
tien unto suhscri:;.',! „ur ..aincs as witnesses t.-> th- 
uue exoeiitioii thereof. 


F. W. Wii.i.iAMs. 

S.,.::,- iiii;,'ht pre I'er t!:p foliouiiijr bej;inainir for the will: 

Tn the name of God. .Vnun. 

, ' ' "f" *'"■• T..wii>hip .,f i„ ,i„. c.iinfv „f 

^^•r.Kr. (or. as the cK^eupad.., may l.e), eonsi,i,.rin^^ th- '.ineertainty of 
inunnn hfe ami havnijr pmpertv. h..,h real at.,! personal. ,],. ,„ake. 
am <h.elar._,h.s Instnunej.t of >.Vri,i„. n,y l.s, Will anl Testament, in 
ivords iollowing: 

I^eferrin- to a lit. of threeseore years „„,! „„. the state,] lif,. „f ;,„i„ 
nn.l u healt. . pea,v an,l a lar:;,. p,.rtion of .-oH.for, an,l its atten,Ia,>t' 
bless,r:rs. the Lonl of nil th.. earth hath pertnitted n.e to eninv. T would here 
ren,l, r Ih.nks to Oo-j for His kind deaiin-s an,! exf, „d. ,! m..rev 
to ine. tHHtin,!,' an,l ever pravi,- that the ,,vi,]ue of mv davs mav he an -uhmiss.oti to Tlis [.ivin ■ will. :,„,! for the future hopin- ami h-liev- 
ms in salvation throui:h the M,erit< a.ul m.^,liali„u of Chri^l nfv R, .henier 
h,. SMv„.ar of th,. v.orld: my worldly possessions I would also' at this time 
arran;:.^ and will ^nel as follows: l.t [ hoi-,-!,y apj.oint. ete., ete. 

339 Codicil Eevokinn- V/ill. 

I (in-xrl nanio niul profossinn) do hfrohv rpvol-r. in i..o(..,,„,„„. • 
(.ive d.,e .n,. wUn...^s. and ,„n-por,ln. ,o t ^t.. ^"n'^ d'S .ont""'^ '^'^ 

in witn.^ss wliorrof I have l.ereun.ler set n.v linn.l, this ,1a -of ' 
In the y.\ir ol ,nir I.oiil one theiipaiid nine hundred and . . . .'.'.'.'.'. " ' ' 

SiRnod, iM.hllsIiod and dp- , 

.iai,-il '.;. i!i(> said 

the testator, In the prescn'-e 
of us, etc. (same wordin,? as In 
the wim, I 

(Testator's name.) 

843 Trtistccs and Tiust Funds. 

Xo f,,'al woi'.N ar,- n,.ed, ,| f,ir th,. eivati n of an express tni~! A 
will that d<.v.s,.s or -rants n al estate unto A in trust for R, „r wl.ieh directs 
A to sel sueh prop.-rty at.,] pay th.' proecvls t,. 1'.. or to applv the ,.i-oe..eds 
for the lunefit of B ext,.ndinir ,n-er a nivi.lxT .if vears creates a trust in 
':l^or of Tl. an,l places upon A the re.sponsihilitv of a /nw/ce if lu>^ 
Ml,' trn-'t. ■ ' 

The .tafut.s ,,f all th,. Provine,.. !;,.ld ti-.i-t, .. ri-i.Hv t,. th,.ii- , 
tir.ns. The tnist-e. whether a trust compnnv or nn executor or other p. rson. 
Tt.i.-t carry f>ut the instructions of rhe inst.-nni, ni :ipp,>intin<r him. 

TTr also hn- a , v\ pow, i ont^io,. of ^ueh i.rovi-^i.uis ,n th.. a.i- 



UI1,1..S- -l.N III.ICI I AMK Sl't'CKSSlO.N liLill.>. 

luiuistruliuii ui the tni.-i. H' lie errs iu jiulirmuni. iIr- omit mav I'on-oet 
him, but if hv ;ici> in bad hiitli In- will he Li id liable for aiiv l.iss Vt.-»iiiliiif? 


iLiv have pDWir to coniiM.uiid and si'ttU- dis|)uti's, may ace. jit smli 
sk!ciirit.v tor dclit;! as to tlu'iii. or a najoritv of tlu' trusters or oxniiiors or 
adjuijiistrators sirm Ixst. or give timi- for payiiu'nt, and will be rc'- 
spon.-ibli" for lo.-s if doiii' in jiimmI faith. 

i'hoy have ]inu<r to aihaiiiisicr the i-iatf, nccivc incomes fnm. if, iiiakr 
ni'crssarv npairs. but liavt' no auihoriiy to nuskc nicnly ormuiu ntal im- 
jirovt iiuTits, as thai would be s|>( cul iiivc. 

All the I'roviiifcs and Newfoundland abscduleh- prohibit si'c vuhition 
with trust fund-, and the de-ire to -i-.-ure laru'ir revi nu( f'Mtn -u.-ii iiaid- in 
Biieeiilative projects is uo ])alliati<in for the erinio of iraiidilinir with other 
I)eopk-'s nioiiev. 

The Trustees" Act of taeh province and Xiwfouudlaiid enumerate 
various investments that are safe, and any trustee is unwise if he goes out- 
side oi those list- and thus incurs |iersnnai lialu'iiy unle-s he knows alis,,liiti- 
ly that there can be no loss, or unless he is prepared to make good any loss 
that nuiy occur. 

Tni-tees or (xeciitors are anthori/ed i)y statute to invest trii-i iiionfv i<i 
any stock, debentures or sivurities of the i). :,iiiiion or Provincial Ciovern- 
monts, and on the first mortgage on land held in fee simple, providiuff stich 
invcstmeuts are reasonable and proper. 

They may also invest in public securities of the I'niled Kin^rdnni or of 
the 1 nited States. aJid idso in muniidpal boniU and dib. nturc<. 

T!i<'re are also various mortgaL'o and other linancial corporations in 
whose stocks and debentures trustees are permitte<l to invest trtist funds, 
which should be ascertaincil by persons acting as trnsiti , in any province or 
in Xewfoundlan<l. 

If a trustee im[»roperly bud money ..n a iiiortsrage security beyond the 
amount tliat would b(> nnyoiinhlr he is per-oually liable to u<-U<- ;r'>"(l the 
sum advanced in cNce,- .,f wba' <hoiild have iK'en !oan(>d. and interest on 
the sami'. 

.\ trustee or guarijiaii who invests trust fumK in his own name, or de- 
po.-its such money iji a bank in his own name without in some way iK signa- 
ting bis r(iire<entative capacifv. become- |ier<onally liable if loss o<'eiir-. It 
is the same if they lend trust money on a |)romissory note tuade pa'-able to 
thoinselvpg personally, if loss m-enrs th€>y wiil be rofpiirel to make it good. 
To iVee themselves they must in every ••a-^e desiLHiate that it is Inisf vmney. 

.\ trustee's powers may be suspended by a <lecree of a eotirt grnntinir an 
injunction, or n receiver for the estate, or placinii the execution of tln' trust 
in the hands of the eourt. 

A trustee mav also, if lie wishes to be discharsed from the diitie-. applv 
to the court for relief. 

Tlte triiste(s are ui(fiv!'!iif>lh/ linhlr ami accivuntable for lluir mm acts, 
receipts. ne<rleets nr defa'ilts. and not for tlio-.. ..f each other, nor for anv 
hanker or other pt rson with whom trust funds may he deposited, or for any 
other lose unless the same shall hafipen tlironcrh their own wilful nesrleot. 

For comparativnl • large est;ites it is doubtless prt'fernhle to make one of 
the " Trust forporaf iiiii '" the trustee. They are fin.ineially responsible. 

rjKSCK.NT OK INTKSTAli; l•;.S•rATl^. 

liav,. ,A,,.nr,„T M.ul iiuii.lf ,.|.portuniti.-> i.,, -;.lr n.v, -un, m. ami 

'=°"'"8'-" "" •'• '!'•'" •' I'livaif i)cTson is I'lititlo.! to diarge. 

845 The Laws of Inheritance, 

Ihsrnd uj Jnlcs/„/r f.Mr.s.^^lu cas.- the ..wn.-r ..f proncTtv .li.-s 
without loavinir a vali.i will, the rule is. that th.- .li.iributi'.n of tho 
IKT*.uaI ..state ,s to Im. n-ulat,,! l,y th.. Jaw of the I'rovince or c-oi.ntrv 
wluT..,u hf was a .lonii.Ml. ,1 inhal.itant at the time of iiis death without au'y 
.-.■frani to tlu; pla^v .f hirth or death. ,„• thr situation of the proiMTtv at 
that tun... Ihe rigiit of sum-ssiou to the real i.roj.erlv is regulated aceord- 
ing to the law of the eouutrv where the deeea.^ed was doiuieiled. but the ad- 
minwtrati,,,, ot the ...|.,te must be- i.i the eountry in whieh tli- ,,ro|.ertv is 
loeated. Ihe laws „t luheritauee are v.ry simihir in all the I'rovinees,' but 
«1!uTe there are vanaii,,n, they will be ^,,veiallv,l in the folluwin-' 
I rail inc. ^ 

H there are ehildren from tw., hu-l.aiid-; ,.r i w,, wives thev share ecniaHv. 

A iio-tliumousclnld inherits eijuaily wilh the.. thers. 

A posthuiuou< ehihl for whoiu uo'i.n.visiuu is made in a will take< a 
.ke >l,are with il,.. ..thers as thouirh there were no will ,ua<le, and eaeh of 
tlie niusi abate enoujrh to make up the amount. 

rliildr.!. of half blood share equally with ehildr, „ „f whole 1,1, „„! 

('hildreii of .leeeased ehihlren tak, ihri,- parents' share, but ..hiMnn 
'.( a de<.eased n<,phew or nieee are eNeluded. .Vo eollaterals are admitted 
.liter hmilicrs and sisters" ehildren. if there are nearer kin. 

Ihe persons who lejraily repres.nt .leeea<ed ehildren a.-r t •• u.-xt 

ot km. but (Irsrrmlanis. bene., if a son nf an intestat( !»■ ,|,,„1 Iravin- a 
wid..w a elidd. the who!,, will -.. t., fh. ehiM a,„l nothimr r.. tho widow 
1 rici- r Strange, C, M:i,]<\.. at piiiir UrJ. 

lllrcritiuiat.. ehildren. that is, those born Ind'oi-,. HKirri:!-,.. >].. i„,t iuhrrit 
'rom the father, or mother either in Ontario. 

An a.lopted (diild does not share with e'lildri n ,.( d.rca-ed. 

Seeond or tlnrd wife survivin- her i:ikr- the -^ame share that 
111' tirst wife Would have taken. 

If a hudiand ,n-. wife ha-^ li,cn previou>lv married and leave ehiLlrrn 
ol ti„. tuM marria-e. sucli ehihlren do not inherit from the stepfather or 
.stepmother. ' 

(n) W'lirrr a l,i,sh„,i,l dhs Irailn;) rhiUh-rn but no will, then one third 
noes lo the wife absolut.dy. and the remaining fwo-thirds -,. to flie (diiMren in 
eiiiial .le-roe. If any of the ehihlren are dea.l their d.-seendants take what 
wouhl have eoiue to them. T'.aker v. Stewart. :.'!> O.K. H'^^. 

Tn .Vewfoundlnnd and all the Provinees whieh allow ihnver, the wife 
IS entitled to eleet by ai. instrument in writiiur attested bv at le;i.t ou. wit- 
ne,«s. whether she will t.ake dower or tv distributive share of one ihir,] 

Tn Manitoba. Saskatehewan. .Mh^-ta an.l X.irth-We^t Territori.'s. 
dower i< not allowed, but the widow takes one-third of the estate absolutely 
:ind not merely a life interest. 

Tn Quehee if there is e(.mmunity of property the survivinff ennsort has 
the one-half nhsolutely. and al<o the enjoyment of the eliildret~'s htiiT until 
ihiv tire riirlite(ii vears of airv, hut must snntiort v.v.t\ fdiifnt;- thnrn etc 

HA \\h, 

hiixhnnil rfi/'s h 

nrrtiq rin r> 


rrii unr disepudnnt- of dr 



i.\ in.!:M'A.\i I 

iiiiiiu lir ^(H'a lu liL'irs 

coa^ctl cliiMn II. illicit !ii Ni'u l'<inii'!I,ii! 

Qncliic. ami i!i'iti~!i ( "oliiniliin wit'r lakr.-. li.i',' an. I 

at" ^li cin-cd liii'iliaii'l. 

!i' Maiiil' lia. Allnrla. Saikulclit wan, ami \firtli-\Vi >t 'rirritoricrj wiff 
lak-^ all. 

'i ■)iitarin wife r(C( iv<'s $l.l)(tn out ,,{ iIk' csiatr, and llini o-.K-lialf tli' 
ri iiiaiiiili r, the lialanco iT'iiii;,' tu ihc natural heirs n( <lt cciiscd. if tin- 
(slalc. afler jnivim: expenses, does not exceed .$1,000, the widciw takes all. 
11 Ve'vt'onndlanil if a man dies leaviiiM a wiilow, Imt nn issue, if his 
estate after jiayim lit of the just debts. fiiniTal aii'l testamentarv exjiensrs 
does not cxe> eil $l',000, if, shall Ix loiij: lo his widow ahsolnlelv and exeliisive- 
ly. and if tile net value ef the estate 1 x-eeds !!«•_'.■ lOO -jc <liall ^ll■lr( in t!;e v 
fu'in 1 -r the sam< ns formerly in addition to the ,$2,000. If the estate ox- 
eei ■!- i?-.'.00() she lias a eh.irire ai:ain^t the whole estate for interest at 4 per 
e.'i!(. frii; the death of the hii-liaiid until the .<i*2,000 is i>aid. Chap. 4, 


(■ i If n hiinli'Di'l <!•'■ Iriirlii'! n irilJ tlieii in tli i-c Ppivitir.'- whir' do 
not al'""A" dower, the wife as well as the ehildre-i im:i * td-" what is loft in 


ill. liiit in tl 

I'roviiiees which 

.'' nmy take 

' ' left Ik r under the will, or she may refuse iliai aiel icniaiid lier dowrr, 
I //' a iriff ilirs Irarhio a ir'iU the Imslituid may e1e.f w!. tie r !'.'• 
•'ill r ':e under the will o!' \i\ elaiMi the ri'rh' of tenaiii hy t'lr curtesy except 
in O^'ari'i. Afanitoha, .Mherta, Sasknteliewan and \ortli-\Ve-t Territories. 
'•) // a irifc (hi' lrari))p chUdrc}i hut no will, and haviiiir sepirate 
j)roi'( rty in her own name, the husband takes a on<-third inierest in hotli 
the r al and ]>ersnnal t state, the other twothirds iroinjr to the childrep, cx- 
eei)f in Xew i'.nniswiek. wIk re if a w-ifo <lie leavinir eliildnn hv a former 
hii-h'nd, the siirvivins husKand takes one-third and the other tw<t-thirds <:o 
to t!u> children of l> ImsbaMils eipially: hut if there are children i^f the 
>'ii-. ivinsr hnsliani] only, then he takes oncdialf and the other pK s to tlie 
ehihlren. and if no childrc'i the hinhand takes all the per.-onal ])roport,v. 

In 1'. K. Islaii I the uhdi irois to ihe hu-haml for life, then to tli'- 

Tn (JiiiIk'c the Ini-!vM'rl has the use of thi' |iroieriv of t!;e coiiiiniinity 
coininsr to tin- children from the de<'eased until each cliild i-omes ,,f IS years 
of a'i" or until he is d. ('.('. 1:'.l':1. 

(/) If II irifc (fif.-t Imrhi'i im cliihiri'u and n.' will. I ' :: in 'hit:' ' 
Qnehec. Scotia, N^ew Rniiiswiek, British foliimhia and Xewfoiind- 
Innil, the hiislianil takes half and the remainder ijiies to the natural heirs of 
diceasid. In ^^anit■ ha. AlU-rta. Sa-k:itciii wan. \"orth-We.-t Territiri s and 
P. E. Tshind the hiisl.and tak<-s all. 

('/) A niarriid person d}ihi'i n-ilhoiif a irill havini children, hut le. 
surviviniT consort, the children take all the property sharing etpially. If 
there are children of deceased from two or more ifiiisorts they ."ll -hare 

(h) If 0)1 innii'irriril piiy'ni. or i<nr irltn has hrcii mitrrir'} ■ ' 'r(n 
no ismir • /• liiishniii} <ir r.-ifc. die without leavintr a will in Ontario, tin 
father, mother and siirvivinft brothers and sisters of deer .-sed share equally, 
cV.i'dnii of r!ee<asfi! brother- or sisters tnkinsr their parents' shar- . Tl* ]■■• 


pam.t. .,v ,|„„1. ,l.n ,1.,. l,.,,!.,,. a,„| ,„„,, ,„• ,) ,,.„, ^.,^,i ,,,,,,1,.,.,^ 

U I l'" "" """■" '"^'- ""^ "' ""■'■'■ -•■■ "" l''"-f»f^ '>■• '-'I-- or 

!„;;;,'" '""•''•- ^'"■' ^"""^ '•' 'I^- ^""l "■ <'lnM-n ..■ ,k.<.ea.sod nudes .md 

In .\ov;i Scotia, X.w llnin^wick mii.I I'rin.',- I'M^i ■,,■,! [ I., i ,i i i 
lu ... ..,,.1 .,s,..,. .,,,.,„.. a,„l ,„ ,|......,.ianN „f ,K,...a-,,l l,,-,,,! a"i 

^ 1 ;. , " 'r""h '" 1" '""■""■" •"• r""^ ""'• '•''"•'■•'■" "^ -'--ed 

ot kin! "'■'"■'■ '""■"°*' '"■ '"■'"'"•'" '"• ^'^t'''-^ '!"" '■• '"'Xt 

;■; •^''7-'^;. Sa.kau.h..w.n .n,i X,.rth-W,..r T.rritnri,. ,1,. fa,l,..,- .v,uid 

-.t .|.'cca-fM| lirnilirr- ajid sisters inherit. 

In l:ri,,.|, C.hnnhia. als„. i, „.„nl,| ... ,,. ,1„. f,,),,,, „„|,.,, ,,„ „,|,„,.i. 

.-moo oanu. „, deeea.d tm,,, the „„„1„ ,■. ,|„„ i, .v.,n|,l .„ t,. l,er if liv ,^ 

I she were dead „ would .0 ,„ the fathe,- ,i,.nn. l,fe/and the,, n.,; t 

""■'""''''•^^'"■'~'~'"--f 'l.en,..,l„, ,„,! ih..,r de.e,.ndant. 

In .Man,r„l,a ih, father, if living. w„„l,i „ke ,1„. wh.^le. If fatlier is 

d,a. . -n ,i,e n„„her. hrotln-r. and .i-,,.- -l,,,- ,.,,„:,llv. el.iMr,.,, ,.f de- 

cea.-ed hrothers and sisters tiikin- jiarent-' <liare. 

In (Jliehee tile -Jiienessinti u-.,nl,l i,f ,1 lvi,l,„l I,,, t... i 

I If , . , ""iii.i ijf iiivnieci into two eniia nor ion-: • one 

:?.ir^ri ■';'''''''V7'n ''■'''''> ;^ '""••• " '-i-'uVh.. 'ther half "> 

Whe.s and si^lers and elnldre,, of deeea<ed l,r,,,l,..r- and M-t.,. Ff either 
fa hop or inotlier ,. dead, ,I.e nrvivor take. ,ho wi,„le h.lf. If I„„h ,,„rents 

are ,1,,,,1 ,he l,r.,,!,er- and -,-,er- and ,d,ildivi, „f d, a^ed l,i-o,lie,s and 

si>ter- take all. 

If are n, idler par, nts or l.rothers or sisters or ehildre,, of de- 
eea^ed -rothers a,.d <Nters. it .iroes to the aseendants ,.,,„allv Iwiwee,, ,he 

that falls to Ins hne t , the exel„<, „, of all others. If oither line l.eeotnes 
evttnet. tlu. relatives ni th,. other line inherit the whol,. 

• "'^i'" 'w''^!!'"!"' ''"'' '■'"''■" ^''^"•" "l"'''l'.v it' 'l"v :nv all ,,f the one 
nau'e. I.„t If of different nmrria-es then eaeh line tak,- ;,„ e,,„;,l .l„iv, whieh 
's (livKle.l ei|!ially .nnionir those of that line. 

850 Sucressicn Duties. 

All the Provinee- l,,,ye a S„e,.o--i..„ Dnii,. A,,, 1,,. ,,,,(,,,, ,,„. ,„^^^ 
n_f persons dvine wealtLv -hall ninrn a rea.o„al,le ,,eree„ta-e to the Provin- 
cial -rea-urv. ,:f uhieh ,|„. f„ll„v, „„. ,- , -,„„n,arv. srivin.r the e.xemptions 
from dniv. :>,><] tl,o p,re,,;la-e lak.n on esf:i,,.s snhjeet to duty: 

In Ontario. I. Dnii.-s -|,:dl not apjdv to anv promrtv whieh af'er 
dedne.mir the ju-t del>t, of ,h,. de,.eased. fnn.Tal exjK^nses and Sn'rmgate 
( otirt fees. * 

(fi) Does not exceed $10,000; or, 

( h) To pronertv (levised •.^r 1::- ■.■".!!:.-.-! ».. -.,..1:.^: _'. ;^„i.?. 


Wll IS- IMIHarA.NCE— Sl'C».l->.-l.)N 1,IT1K.H. 

"'llllii tile 1 rci\iiict' ot OlUiiriu; III-, 

pu.<Mi.:: .1,,,. Hot ,.xe.r,| ,$,-,(1, ; ^' 1> it% >„ 

as iiuntio,, .1 ,„ ,„vvi..u- Mil.Mviinn. nihl $,-,n(i(M.- 

(a) \\hm.|t.xc, $:,... , an.l ,1.„. ,„., .x,...,! $:,,hi,), i ,„, ,,.,,„. 

^) UlKTO It $.,-.JMi„. I,,., ,|n... „.„ ,xn.,.,l $1(H.,U00, l' percent 

{<n Kxc-,.,l,M:r .•<l.-.n.. |,„, ,„„ ,.„,,,,|i„. s-jnnu,H> \ vv <;u, 

(c) Kx(vc,liiiir .|l'(I(i,(1()(i, .-,,„.,. ,.,.„, • ' I I "H[. 

Tir. ^^'-'n^lH. ii-.;,Vf;.lva,noui,.ot,h,lid,l,.|.r>|Mrlvf.X<-0...1s$l(>0,(l(Hl 
IMSM.S „ any on,. p,.r.,u „, ,h.. ,-, l,„iv.., „m,„.,| aK.v,., a MTthor ,l„.v 

(A.M'. ,|it,i; .*1()(I,(»00 to 
'■ I'l-oprrtv cxrd ,U .tld.iKM). s.> iniioh 


-hnll u. ,,aM, ran:.,,,- I>..„, ,,n,. ,,,,■.■, „t. ,,, a, ,„.- 

tlji-f, [„.|- ,.,i,t. |.,r $s(iii.(i(i(i ,,,. ,,^.,,|. 

I\'. Wl„rc the -.i'^iSvriX'Mr of diilia' ' 

of it a. |,a~s,.s to any nth,.,- Ii,u,,l an.-.t.,,- ,,f ,|,.,.,.a-..,l (Vx.vpt to trrmul- 
ra>;<nt< or to ath.T an.i ntotluT). or to anv W,,h,r or L.r \( l,vo" 1 
or to a <l.s,vn,lant of a broth..- ..■ .., ,, or to an nn.!- o aunt f he 

:!rn^:::;-;;;.nt.l::''' -- ■-•'---.■•--/,.:;: 

\ . A\ hrn, the vain, of ,h.. |,ro,,..r(v ,.x......,l. $.-,.i,t)„0 an,| ,,a=>-.. to «„,h 

prr.^o,,. a. nicnlion,.,! ,n prrvion. .ul,-.,rfion. a fnrih.r .Infv !,a!l U- n.,id 

where It , A, ■,■.!- ,*(.-,u. '"^ *^'"^- 

ra-,^7' ^^■'"■'•;- ''"■ /"-'-''•'■^^'"- ■■'■ 'Initial,!,. ,.ro,,e,tv ,.x,v,.,l. $10,00,) and 

i" , '■' ' '^,''"' "'■'■'-'I- ''vrt a- pr, p,.,vidr,| for/ a dntv of 

i?in fnrovr.rv .liioo ,,f valnc -hall be paid. ■ 

■op.Tly pa — 1112 to any ,,ni. piTson 

'irx's not 

VI r. Wll, l-r- ihr value of pi 
fxcee,] $L'0() it is (.xctiipl fr. ,ii Hutv. 

In Quebec. ,f the e-,a.e pa-in.^ to h„| or wife, or to the father or 
..^ ther, or , ..,,her or n.otl,er-,n h,u. or ,o .,„ „, ,iand,ter-„,-lau-, and doe. 

•■ n--v--.p....*10.000. andiM, exeeed..*ln,,OOi, i_,., ,„,,'„.,„ ,; 

$2oS lllr ''• •^"" -—'"■'--■ 1- eent. fo; 

\Vi„„ the „h,.|,. an,o„n, to ono -nej, pe,-..,, ex.v,.]. .*10,,0,,0 •! 
adlltln'r ■"''''■'■ '■'■^ ,«;eent. 

IS over $.,.000. h„t not over $10,000. it is :. pe,- cent. Tf it ..x,.,.' i. ,*lo lloo 
It IS ,,' .J jior I', III, 

*10 tHm'-r'T "' ""?' '" " »;'' "'■ ""•'•■ 'i'-'''"'f='"'^- nnd doe. no, , xxve,l 
?1".')00, ,t IS r, per ,.(.nt.. ,,vf.r $10,000 it is r,l ;, per ocnt. 

If to hroth.r ,,r sistor of L'randpa.v,,,. ,,; doscondan'. and doe. 
not exeei.d $10,000 if „ 7 p,.,. ,.,.,„_ ,|,„| j,- ,,^,.,. .«,,,nno it ;. ri „/ 

MLTfKsslo.N' 1)1 TIK.S. 



If !.. .ii.v nilirr coilat.nil it is > per cent, up f. $10,000. m,,! !i p.-i- ,, ut. if 
ov.T $lo.(.(i(.. If „, ^tn,n>:••rs it i, 10 p.r ceut. 

U 1m n til." am. Hint of .iutial>l.> pi'.,pcrty cxcced-i .i!:.(i,oiio aii-l pas-, s to 
ariv .,11,. ptrs.,u in a c.liat.ral liu,' ,,r I-, '-traiiir.-i's tli., f,,ll.,,'. ii.Lr further 
duties arc imposed: 

Excoc.linj; Jtr.o.doo. l,nt iiii.jcr, i p,.,. „.„f. 

Kx.'cc.linir !i!l.i(i.(Mi(i. |„it nn.l.r $1.-,i),(m»(i, it is j p,.,- ,,,.„,. 

Aii.l th.T. after a.l.liii- i ._. p.r .•.in. fnr .ach a,|,|ii i.,iial *.-.(Mi.ii» ni) to 
.f4.. 0,0(1(1, whi n it is "i per cent. 

I. if.- insurance i»..!ipies are .luliali!.' tli.' same as ..ih. r |,ro|,.rtv uiiless 
th. y <!,, exeee.l $.",000. 

l;.'<|uests f.,r reliiii.,!!-, .'Iiarilal,!.' .,r e,iiicati,,nal [,iiri,.,-es, wli.ii .'arried 
on liy a c..r,)..rati.,n ..r pers.,n .l..iiiicile,l within the I'r,,\ :.,.■.■. ii,,i exceeding 
$1,000, in eacli case are exemj.t <liitv. Chap. 11, l!»Oil. 

.\meniiment ,,f l!t07 provi.les that ifanv jiart. .,f the estate, legacy or 
l«-.pic>t devolves t., a person .h>niicil..<l ..utside the British Empire, or to'any 
association bavins; its chief place of hnsiness the British Empire a 
furth.T duty ,,f .-, per ..'ent. .hall U- pai.l the .liities menti..iie.l in this 

In New Brunswick the .\.'t .l.xs ii.,t apply to any estate which, after 
p.iyuK'iit ot ,li'l,t- ,in,| exp.-iiMs ,,f a.lminislratioii", .I.k's not e.xcee.i .*,■,,()(»() ,,r 
the pn.j.erty I,.,]!!, atli.'.! t.> re]i<;ious. charitable or .■ducational iii>ti'tution.s 
or t., pr.,pirfy pa-Mii- to father, m,.th.T. liusi,aii.l, wif... .•hihi, ,lauirhf.r-in- 
law or son-in-law, whi.-h d.jcs not e.\ceed $.-,0,()00. 

Where if cxvi'CiU $,-,0,000 and passes to near relatives named in pre- 
ceding' paragraph, the .luty is 1\\ p.r c. nf. up to $.-.0,000, an.l 21 ^ p.r c^-nt 
on all over $.-.0,000 up t.. $200,000, ami :, [K-r cent, on all .>ver $200,000. 

Exeee.iinn: $10,000 an.l passing to pran.lparints an.l ..tlier lineal asctnid- 
ants, except parents, .'. c. nt. 

ExceediniT $.-.000 an.l passing to r cllaterals or to stranirers, 10 per 
cent. ' 

Legacies pa'siuL' t., any ,,ne p.Tsi-n n.,t exeeedinff $200 arc exempt from 
drty. " ' 

In Nova Scotia th.' A.-t .lo.s n-t aj.ply t., any estate wlii.'h. after pay- 
ment of delit- an.l exj.enses .,f a.lniini.tratioii, .l.,.'s not excee.l $.-|,000, .ir to 
property parsing to fath.r. m.,th.r. hushand, wif.., chil.l, crand.-hild, 
daughter-in-law, ,,r -,.ii-iii-la\v .,f .le.vase.l whciv tli.- pmpertv value does not 
exccii $2.'.iHi0. 

In Prince Edward Island th.- Act .Iocs n.,t applv to anv estate which 
after payment of .lehts an.l exi..nM"s .,f a.lmini-tration, d.'.es not exceed 
$."..000. nor to property parsing to fath.-r. m,,ther. hushand, wif... chil.l 
gran.l.'hiM, .Janght.-r-in law, .,r >.,ii-in-lau- .,f ,l,...,.as..,l where the i.ropertv 
does not ex.'.i.l $li>.(i(i(i. ' 

In Manitoba the Succ.-M,,n llmi... ,1., n.,t t.. anv i,r.,perfv 
^vhich, att.r ,l..,|ii,-fi„i,. all .l.-ht-, ,,I,liL'ati.,ns an.l liahilith's, , Lies' n,,t exceed 

.< 1,1 II HI. 

Or to property passing to father,'r, hii^^haml, wife, chil.l. grand- 
chil.l. .laiiirht. r-in-law. i,r s.,n-in-law of deceased where the ag.'regate of 
pp.p.Tty thus pa-in- d...s n,,t exceed $2.'-.,000, and when the pers".n leaving 



such r.stato was an. I I,;,, I „ ,•,„. ,,, l.,, . ,• , ,, , . , 

d..inidl..,l in Mannnl,, '" """'"'^ l"'""' '" ^"-^ -'•''''. 
^^^^JUH all ,,n.,,..,,v ,luu ,.a..,s ..h.rwi.o .l.all 1„. H, ,„ „ j..,, ,, f,,,. 

'■'""*-•'•""" 1 l-rrrnt. ..„ ,1,.. uln.l,. .Matt. 
Ov.T ^-...iKHI ,,,„| „,, ,0 $.-,(t,0(ii), ■' ,„.,. tH'nt' 

" •■<"-"<"» •• '• ,'i " .. ■ 

" 1<>"."00 •< '• i.-,(.,o(m 4 " <. 

" ■>•'"•" " 200,000, 5 " " 

-i»"."<»«' ■• " ;iO().ooo c, ■• >' 

" 300,01)0 •• •• Ki,,,,ioo' 7 .. « 

" •l'>".0O0 •• •■ ;,,),,, ■ ^ ,, „ 

" r)00,()(ll) 'ji^j „ ,, 

■.-.<HH.. u ,.,..M.,n,, „.,„„ ,i,„„.. All ,i,.,i,.s,n„.t ,,..;,i,, ,,;„„•„ ,,-, „„;^,;,^7 

not exc'cd $L'.-,,0(in. '" '' "" ■''■'■'•'•-'■'I w1m<-1i d.ios 

Ameiulinciit m|' i:i(is i,rnvi,l. ■ ■, l,, „ .i 

:r'/r,;;:i,::\, :;:;;;•;•:,;::::':,'''■;■■;'":■, ™-; ;■» ■■ - : 

Alberta. Sasl<ptr-lif>.«,-j,, ...j »r . ... „ 


til any more 

■•■! !>■ -. Ill- 1.1 siiMiii;' r~, (I ii.v .-. ft i.Ti t)i ,,1 I 

I ' ' ' ' ' • "II til. V, |ui|(. prdjicrt V. 

Alberta. Saskatchewan and Nori'i VJr<,> T,>r,-;. ■ u 

'"t... A-t .iocs not a,,,,iy ,., ■ , .^^°z^:! , j'^" ^ u, .Jin::^? 

son u. 1 .u . ,1, ,„ paivnr. u h, ,-,■ ,1„. ostato ,l„e. „ot oxm.l $i.-,,000 

per ..;,^'r' .,u;;::;;'j?:S:;;;: iniooS^ ^^' "--- "--' =^'-- ^^^ 

$i>.-7,00l). •>-'!. 1. 1100. 2i._, fi(r ront. on all over 

Kx,.,..,linir $i", r, ;i..r ,.,.,„. „„ ;,!| ,,,,., ,^o- o„o 

ano.stors..,rto„n.l,,ln„nN..";Jr'.o„t """'''^"■""'^ ">• ''^^'^ ''-'>' 
^^I.■•n passing fo otli.r ...llat-nls or t,. -trantrr-r-. lo ,i„r n.nt 
W lipii flic uiiojo amount pa««in^ to anv .m,. n,v.„ , ,• 'i ■ .. 

l.NMlIAI.N 1 i,i hiiiKH. 


•llAI'Ti;!: xw. 

855 Insolvent Debtors. 

W, I 

can lie f.,rc(<l t( 

liiM' 111! iiiiiikniptc-v Ai't 

< iiiiMila liv whicli an ins<ilvint (lilit 



;<> make asMpuiHut f..i- ihc U'ih til cf hi, creditors, and which 


n.' Iiii.i a rcKui-i.. fnuM fiirllic r i.n 

'ini'lhind h 


;u'c cnai 


lliil all the Pi'Mvin 

VI' rv t'air an 

jTcvdit in-nlv.iit lra<l(i-- i'l; 

'•r siitlinu' with cfrtain cnrjiti.r, tii the | 

the licht.ii-, h'iWrviT. cirhir tn | 


(• ni^iitvencv laws, u 

till r traiiiiiiientiy ilir-posinu' of" tl 
i-ave tlie eounlrv 


leir assets. 

III Ills wite s or si. 



if nthers. Thiv all i"..iTe 
til i\'i busines,- ill future 

some otbi.T [lersi.n s name, cxeejit in .Viwfi.uiidlaiid 

lere are two wavs in which the e*Tects, hotii 

rial (Stall 


if an iii-'ip 

iiT.-M.nal iirniierlv and 


I lit ilrhli.r I 


I- th 

nay he converted into ca>h and ratably 

If en (litnrs, VIZ., inii 


hr t! 



Relief Act. 

856 Voluntary Assignment. 

A iiMiii r wliii lind^ himself in insolvent circnmstances mav vohintarib 

make an a-si 





t-'nineiit of his estate for tl. 

•>si^iimeiit nei d nut be in aiiv in 

:ie general benetit of hi, crediturs. 

my jHTsonal [imjierti 

li estate. 

■ funii. It is siillicient to 
'dit- and I iTi cts which mav 

seized ami si. Id iimler i-xi cintioi,,- ,,r -imilar winls. The statutory 
crcmpliunx fmm s.i/.iire imdi r an execution are also resr rved to the debtor 
who makes an a<sii:iimeiit nf Ids ,,ther im.pprty for the Ik nefit of his crediturs. 

■ lie assipnment may be made to the sherifT of the coiintv, or to an official 
a*^iimec, or to any i.tlier resident ..f th- Province which a majority of rhe 
crediturs havinir a claim of $100 and upwards ass(«nt to. 

In the X. W. Tirritorii,, the assiiime inust be a rrsident of the judicial 
di-ti'ict ill which the assicrnie resides or carries on bu.«ine99. 

I lie creditnrs may al-n make as many siil>sequent chanecs as tbev find 
iirv<'ssarv. An assinnee niiiy n sitrn. so may an inspectnr, but a sheriff can- 
tmt refuse to ('..mplcte the wnvk nf assiixnee of an insnlvMir. for that is part 
of liis oHicial diifies. and in .-a-e ..f his de:itb there wniild 1m' no cbanire. as 
bi-- di imty <<v si;c,.ess,,r wmild cnmplete the winding-up of the estate. 
857 Forced Assignment. 

In ca-. a trader win. js jiractieally iiiM.lvinr and yet n fuses to make an 
assiirriment fur the treneral iKiiefit nf crediturs, and dues not pay them, or 

v'ltisf ie<\- -ee'ire rlieiii. he caiilK.I be fi.lVed to make an assiLlimellt, except 
ill (^)iii bee and Xexvfiiiindiand. 

In Quebec aiiv cridil .r havint: an unsecured claim nverdue for $200 
or utnvards may demand the .lebti.i- f-. file u-ith the cnurt judicir.l abandon- 
nirnl i.f liis estate fur ihe Ik nelit nf his cnditors. ai'd if this is not done 
within twi) day- ! nr the deb; jiaid I, and the iibamlniiiiient actiiallv made 
within fiiiir day- the debtnr mav be arrested, and the (ri)f>ds seized. 

T .' .i__ ,_ ;_ ; 1 ' ,1 i; ; ;,.,:- •;: : .T . • : 

;: ::::■ ;::-;::::;:;:■::: ; :;:::;:;. ::;; i:.'j;,M;,"^Ti. Ti Vs'iil if t'-ilt eieti i.\ :i eiiraioi' 

appninted by tbe fv.iirt. 


i.\8oi.vj;m kkhtoks. 

W unabk. to pav h,.s rr..,l.t..r. Km .., „fs i„ th.. ,|.,ll,u-. If tl,.- .|.^,t.,r is .1,.. 
.0. ...nor 1,0 „.,.., a.taH. r„ ,1„. ,,.,iti.,„ „ ..},.,,ul,. „f al l,i , , , 

« .1.;, a,..l ,f „,„ 1h. ,n,„t g.v.. a .tat.,,., m ..i fa.ts >,„}i,.i,.nt t„ sati.fv ,h .„r 

ho . ohtor .. .|..<.l„n.,l ,n...lvo„,. ,!,o o.ta,,. ,„av l.o vost,.I in a tn.too f.,r uJ: 

•"'.'•""" "" « tl,o ..r,.,l>f„rs an,l aft-r ,ho osfato is tl,„. u„„„.i „,, ,1„. ..„ ,rT 

.■r j, ,„ay >:,v th,. ,|ohtor a rrrtifirnlr of ilisrhan/.: 

Tw„^ of t!„. ,T..,lit.,rs in nu,nl,..r and vuluo niav al^,. a.-nv ui.l 
«I-n .■ont,r,„Mt,„„ l,v ,1„. j,„|po. ^ivo tl>,. .l-l.tor a final -Ii:..l,a. ~ ' " ' 

All tl„. ,,tl„r l'n,vi,„.,« l,„v,. law. whi,'!, ropnlat.. tl„. f„nn „f a-i.r,,- 

n,.-n,s. I„„ ,l,..n. ,. n.. ,.,.vor „. n.ako a p.-r.-n 1 ,„„. .„ „„„,.,.,„ Z 

Mhon. a ,|,.l.,.,r ,s ,„an,t.-,ly in.,lv.„, an,| yot n.f,,,,. ,,. „„k,. a ..nor 
H.-,p„,„.,,t ,1„. ..„„. ,.,.uh is a.,:,„.,.,| ,„.,1, r Ti„. (•,.,, 1,„„- l;,.,,„f ,{,, Z. 
liiiiil II, follow,,,..' section: 

858 Creditors Relief Act. 

In tl„.S,„alll)..|„-, ■..,„•,, i„ all ,1„. l',-ov„„.,.. a„.l NVu fo„„Jlan.l. M„.h 
n> 1. l»,v,s,on ( „„rt ,m Ontario. ox..,.,„,on, fr,,,,. ,1.,.,,, „,av 1... oxoo,tt.,l 

out riLMTd to ,,il„.r ci-clitors. 

In Quebec, ..,. ,x.r„t,on. f,-o,„ any of the ..,.,uts tho o,„cor tnav pay 
owr t ,,. ,„o„..y .M..„,v, at ,„uv, nnless soino other crodit,>r rai..".. an UL- 

b. .lisfi „,t..i as ,l..s,.,-,U..l HI followu,.!: pn,-,;..,, „,■ ,i,i, „.,,i„„ 

". ,.r the provisions of tl„. ( n.litors- li.U.i Ae, p,.,ori.v rxocu- 

'Zjlt^ol;!; ' " "■ """'^■'■"•^ ^'^^^''^ ''>■-■ 'H^t,-,l,nted as p..,. tu-o following 
1. If an in.ojv,.,,, t,-a,l, ,• ,vf„.,., ,„ ,„ak.' a„ a>>i-.,„i,„t, an action n,av 

sane Ola,., when hoth th,- n-al and p.T^onal property ,„av I,o soM „ndor 
« •,, ,on a,.,l the p,-o,.ee,ls ,li.t,.il,„te,l an.oU ,h,. . xee„tion creditor 

i roMnce. 1 |,„ 1 .,,,,, ^ „, , ,„.^,„„ ,,,,^,^, ^,_ ^,^^,,_ ,^^^^ ^^^^^^^ ^ ^^^ 
h-fore any ,l,>,r,l„,t,on wo„!,l he a.„on.' the crditor.; or ,.n,lor 

L. 1 h.. I'rov,<,o,,s „f ,h,. '. c-editors- H,,li.,f A,.t.- A. this Act i. nearly 

;ir;;;:d,*;'i::"'"- "■"^■" -•"■^""■-■■^-"^^,.tepst^ 

rou„„ ,„ H,d, ( ourt. ho ,s r.>.p„red t„ retain it for thirtv davs, an,l to 
rnter the part.eular- ,d tho exeontio„ i„ a l,.w,k kept for that purpose, which 
oflZ^- '"■'''"•. '■'■F:'-;-- All ,.-h,r ,.r,.litor. whos,. writ! or certificates 
o exec, to,, are ,n hu h.nds a, that tnn... or an- pla 1 with hitn udrhin 

reili.'''.! '" ' '"""■'■ """ ""■■''''■'' '" "'" '''^"•''""■"" "^ t>"^ money 

A rn.|,i,,r havin-r a jud..M,i,.nt f,'o,„ ,}„■ Division C.n.-t „,av file with 



the dli.rilT :■ iiirii,.,,-.nilmn ..|' lii> jii.lj;in(ii( aii.! .'u.-ts iiml. r tlir s<'al ■<{ the 
flcrk .if Sill. I .niiii. ul,„li will , iititl,. Iiiiii to a share' in thn «iistribiiti(.n. 

•'■'■'' ■■< "li' I'l^'- II. . I Mhiaiiird jinliriiK'ni iiiiiv lilf Mini pnivf ilicir 

'''"'"'^ «' '■.liiii,' to III.- pinvi-lnii-. ..(■ fill' A.'t :i(i.l -Imr.' ill the .lisnil.ution. 

In Briti-ih Columbia llir j.r dure i, ll|. -nnr f..r iiidiu v r.nili/cd 

oil wril-i fr i ;lir Sii|.r!ini' ;iii.l ('..iiiii\ ('..iirN. 

In Alhei.,], Saskatchewan am' North West Territories iiiimimi- 

tioii^ tnuri the S.ii,niiic Coiirl, :iii.| i.\ iiiK VlKON <iii cnihiH i,,in fr the 

ri'rritiirial Court, the iiioiicy iiiM>t l.c nlMiiicil \>y tho ^hirill for two inoiiths, 
and then ratably ijistriliiit.'d aiiioii^' the cicdit.irs u lio lia\i' d.liv.nd thiir 
WTit^ to liiiM. milrv-i ihr Jiid^"- ordc r^ a iJilTin iit tiini'. 

In Manitoba ill.- -lirrilT iiold- tlic ui-mv tiir.'.' iiioiilh-, and theu 
ratalily di.-triliiit. - il auioiiir th.' cxci'illioii .T.ilil.ii-. 

In New Brunswick, \v1iit.- lli.' diorilf Icvi.s uiiJ.t uii (xi'cution for 
9200.(111 or ii|>\varil^. it iniwl h.- ral.d.iy di\ as statf'd uliovc. 

In Nova Scotia, in lioth th.' Siiprinic aii'i County Courts, u .'•■ -sum 
lovifMl hy tlic sli. rilT i- $1()0.(MI or u|.wardM, it luii-l he rctaiiif.l as Mated '<^. 
this section and ratahly .listrihiitcd. 

In Quebec, where anoth.T .rcclitor opposes tho payni. nt of iiionoy rc- 
(V)ver.'(l iiiidcr an e< iiti.iii on the firoiind that th.' d.f.ndant is ins.ilvont, 
the cnirt hoMs the i..,i!iey l.vied ami .iistrilnites it pra rnln .m all claiins 
Hied within tlftfen days after ni,;i.-i' is i;iven in the .)tiic'ial (liwltr. 

In all the Provinces, if the tir-t ^ei/.ure inadi' hy th.' sh. rifT is not suifi- 
cii'tit t') li.|iiiilate th.' elainis proved a,:riiin~t th.' insolvent e^tale, he niav sei/o 

as nnicli more as may he n led, or the whole estate if it is rcijiiircJ to satisfy 

the li'iral claims and costs. 

860 Advertising and Registering the Assignment. 

Ill all the I'r.'viiiee- when an a^^itrniiieiii i- made it niu--t h.- advertised 
ill the otlicial '(■(/:(■//.■ an. 1 ill r-onie local II. 'W>papi'r. The assitrnment must also 
he rciristere.i. If these pulilic n.'ti.'cs are ii't Ln'v.n within th.- timi' i('(iiiirtil, 
hotli the assifrnor and the assifrtiee ar.' lialile t'> in avy penalties, ami for that 
rea-fiii it i> -afer !■> iiiak.' ilu' a>>i;,Miiiient to the allii-idl nsiii/nri- or to a 
."'h'riff. or coii-uli .1 -ili.'ilor. 

The lime re.piind for a.lverlising and rciristration at present is as 

In Ontario the notice of thi' assiirniii. nt mii-t h.- piiMi-lii.l at l.'ast oncn 
in the Oninnn Gazette and not less than twice in a newspaper havinp; a 
fl.neral circulation in the county in which the property is situate, and if it 
doe- not app.'ar in the tir-t niiml"'r of the (In-ittr and in .-li.di other local 
newspjiper is-n.'d afi.'r ii\-e .lavs from th.' execntioii ivf thi' assifrnment, the 
assitni.'r ^IkiII he liahle for a p. nalty of $|ii.(iii i',,r earh day that shall pass 
after thi' i<sue of such papers in which tlif notice should have npjK'arod 
until it iis puhlished; and the assiiniee shall h(> liahle to a similar penalty for 
lach day that shall pass after the expiration of tive <lavs from the delivery 
.d" the nss'Kjntiirnt to liiiii or of hi- assent tli.'reto. Anieiidment of 1010. 

A copy of th.' assiinMiiPiit t.ijretlier with an allidavit oi a witness 
must he rejxister.'d within tive days aftor the execution .>f the ns^sicrnment 
in the office of tlie Clerk of the C.>iinty Court where th.- a-ssiirnor resides, 

ly^di yy ST ni HTdRs. 

;J.":;t";,;::;^;;7;;;-^'l': -:.--;;. ::' -■ .■■■..-. 

n Manitoba.-(),uv in J/,„„7<./„, (;,„,i,,. „,;.:,. ,„ , , 

n--""?:::^..ri,.^s^^:;;^s-,r::^ ■"-— 

;-i'art.i „„„,,.„.. wi,.:::\,;:'' ,u , J';i^^ '■;.•'"• ^':f '-■- ''-•- >■- 

fmt if „„f ,,,, ,1,,,, ;„ ,., , ; ''' '''""''"' "' ''" '''■"^""■'■. 

"'■■ !-i titu. ottici ;;'"':;" " '7'>- -- •"■,«'"' -i-iu.. r. !h.. ,„ 

$25 for caoL .luv of . .-l ,.'' ^ jfT ', "'T''"" '"• '" "" '••■^-"■'- i^ 

adv..rti..i „.. .,,i..„,,, ^m-iM;;".,::';;:: :'-,i;::''i' :;• •;•/'"' ''■ - '^ ""^ 

In British Columbia. Onci. in // r r,.. // 
paper, first is-s„,. .,(ur ]n ,|av. fr ' ,/ / " '"' ' • '""■'■ '" ' ' '' '" "- 

.hi.v. "'•' """ '--^'•^t'-r: penalty fr,r ,l,.f„,lr, $i,,.,„) ,„., 

•'•■■•''- F-"iry ^..•' i'f.,.it: *:>.!:o;;',:;^ii;;:."''- ''^'^ - ■••'''- '-■ -.istry of 

In Prince EdwaU Island. -Twi<v j,, /;,„,„/,;„- /y ■ , 

861 For. Of Notice to CredUors " " " """^ '"^ ''• '-"^- •^■'•- .'. ■• .l:,v. 

i^^c^:::;::t'''-''''";i::i, 'i'""- ■"■•■ - 

T„.„\,r" '^ of '1,0 ...,.,, , ,„ ,„,,,, , ,,,, ^^ 

,„ ., . , I "" ( \\i'iiies,lav) the... ,|.,v of II) 

Bp;^;;;,.;^ orin:;;;;:^:'';:?^;":;?; ':':,;;: ^r^^^^'T '' ^'''-^ 

assets, otp "" ^""^ -'^"''^ •'"•'■••"•"I t,.r tl„- ,l,,,.„;ii ,,,- ,i,p 

^h.u tho,, hnv,!;...;.i::!i •,;;;:.::''" "^■^'•'' "'">• »^' '»"- '■'aim. of wi,i..h i 

862 FiHng Claims wth Assi^fe. '^^ "' -''"'>''''• 

furnii'to';;;;'.:.-;;;;:;:';;,;;;:;;;';;'* ^ •:':•■''";": "• '^'^ -state a^si^K..! „n,st 

'" ''"'"' •<»t t rw' I'l -I rill i,) i.ii • f I • 1 ■ 

Da,ne,l i„ the a^sip,..,."- p,.I,Ii,, n.ti,.,' ^^^ ''""' " ^""" ''" "">« 

A elan,, not y,., ,!„.. ,vill also Ih^ in..I„.i„.l if pn.ved. 

a.Ivamv.l nion..v t., hi, u,|V, u 1,„ wa, n,u;ii:..l in Lu^im-- i,, 1„ ,• .,w„ 
nam., irn.l,,,, her aun ;,..,.,„i„t .rnanitr fn.,„ In,,,, u- ,„i,| .■;,„!< a~ a ,T,..litMr 

it >«hii Ei-^-iiriti..! 

lie a.-.,iyiii 


Priority of Claims. 

In ilistrilHitiiiii the nsscts ..)' a 

lasi'-. iic\r 

• Krlit 

till' tilM tl 

<<r.v yrar'.- rent tine ih.- landlonl. then iiioi-ilm"i'^ t 

Mill a cer- 

tain imnil,,.,- ..( „„,„tl|,- anvaiv ,,f ^y■.^<:,■.. an. I la-tlv -.■iMral .t. .lii,,,^ 

M <»„ian,>, .Maliitwha, Sa.katcli, nan. Alhrrla. !lrit;,l, (.,hn„i,i-i 

-^- , • ''■n-n..ri,>. Nrw |{nni-wi,.k an,l \ura S,v,tia. rlnk^ aiM oihc." 

'ii'I'l-v.'. - havr |,,i,,riiv ,,v,.r frniiTal ,-,,-.|ir,„x for li.iv,. i,„.,Mh-- I' E 

i'hu.. „„. „„,ml, ; ( .,,. K-.., wa^n . f..,- -rvau.- ,,„■ x,:n: -irvk. ,]m-r i,i.„u1h. 

_ In a I Ih, I'n.vM,,',-, all.-,- i-cimii- ili,. anp.unl- f..,- whi.'h Hicv h.'vo 

f;''""'"^ lh.\ th, ,, -ha,v /„„ n,t„ un!, .rwv.A ,T,.,|i,,„- 1„- anv li.h. 

that may U- iluc. 

In •■a-'- III- a"i-nmr„i ,, lliai v*' ill. 1.--.T ih,. I.upII, r.l ha- a i.iTt- 
'•'•',„.,.;,.,„ t..rr.M lor ,,n,. yrar h,-t |,r,.v„,u-. l... an.l -.•n.-rallv ,hnv 
m.nih- t.,n..uim: I ? ox.HMiti.,,, .,f su,.h a~M-ii,n..nt. an.l th.-ivafter' as h.uc 
11- th.' ;.-.-ii;ii..,. Miall r.'lalii j,,.,,,-,,..!,, ,,f ,h.. pn-iiii-.s. 

864 Fraud by Insolvent Traders. 

Our Sratiit.s ,]., n..l ,ji„.,,ura-. a .h-.-|,ly in dvhl fr..m ,viuiuu- 
\u<z III l,iisin(>s or makiiii: a -upr.-m.- . tr.,rt i<> t-xtricnto liim.sclf iu ar / 
juxf way. Sdf.r-s,.....i, a. uvll a, lM,-i,„.>- intm-t,, r..,nnr.-s that his 
pcTinnary .-.nMim-tan..- U ,„,, ,,uhli,h,.,] , , ,l„. ,„,h,1. An pcr- 
-n ,.,.-..1 n.,t .li„-|.,s,. ,hat fact t., a .•rv.lii..r l-r.,m w1„.im !„• i, pinviiaMn-r 

f '-■ ""'''^■* '"" '-^ <|'>''^t""><'<l as t.i his finamMal .-tan.lim:. If .in. -^ticmi'd 

10 mu^t ..ithor Stat., th,- fact... „r hv miiM r, fu„. t.. -,v,. inf..nnat i..n thus 
l.'avniir tlir ..thcr j,arlv fn- t.. .ilh.T till In- ..r.h r ..r nj..ct il. 

IJiit it thr ii,.,.lv.nt |.,r>..n n pn-.-nu him-.'lf as s.,lvcn! in ..nh r to 
olitaui tr.H,.]^ ,,„ ,.|v,|,i, !„. is iruilty .,f a fr.-ni.lnl. nt a,-t. Th- -H.-r. .liscvcr- 
uifr If, may cancel the cntraet. ,.r -t..|, th,. !:,.„|, j,, ,^,,,1,;, if th.-vhavc Uon 
shipj...!. I'!lv t.,r fa!-,, r, pii^ s aiih.nni ;,, t'rau.j ^-thiv,. v.^ars' 

865 Fraudulent Conveyances rnd Transfers. 

Kv.'i-y -it-f ,.r nra!iiii..iH .■..iil ra,'.. wli,lh,>r !.v ,1, ,.1 ,,r^rwis,. ma.ic 

> ■' !■"•'"" ^1' ■■< lime uh, 11 he is nnahle t.. pav his .1, hts in full ,.r kn.,ws 

that h,. I . ,,„ il„, , V,. ,.f in-..lveney. is .jeeined t,. ]„■ ma.le with th,' intent to 

<h'fraii.! his ere.ii(,.r-. an.l ma;. !,.■ -,., asi.h-. .\ ,l,.,.,i „f „,{, ulth natural 

I'lve 1111,1 afTc<'fi..n f.,r 'h. (■■.n>i,hTati,.n wouhi Ix- v..i,!. 

Kvcry convpyan,-,' .,r transfer ,.f cither pors,.na! ,r r. a) pm-.ertv l,v a 
I" r^..n ^yhn kn.nvs lie i- ,.,, tl,,. .vc ,.f ins.ilvency with th.' int,mr t.. ,hlav nr 
ih'iraii.j his er,'.lit..r- -hall h," airainst such cr,'<, piMvi.liiiir' the 
other party knows his intent!.. n ami a.'ts in ,• .Ihi-i-.n with him hhiv 

«'. r. 10 JO. 'I 

Fvi IV .hlitor in insolvent circuinstHnpe- ,-vr ,.n th,. ..v.. ,.f in..,lv,^ncv 
%vho v..hintari!y, or thronph fonv. piv. s a cnn,-<ion of jmlimient that ha,s 
the eff.<t ..f .jifeatinc or ,1, fraiidinc: his cnslitor-,, or t,> give one or more a 
pr, ferenci' ..ver ..fher-, is void and eann-t l.- eMviii.'.!. 


INSHIX 1 .\ I III |;l-,,|; 

■f all ih. 

•ii Uitora. 

vii..«-- Mf the \cnil'ir'< in^.jvinc'v .; in 
<-'liti>rs, ;^.■^ the nrci--v-arv ciTrri i> tn 

A larjri- pHvmfMt of ,non,._v ..,• „ ir,n-i'. ,■ .,1 |,n,.„ ,-tv l.v an,nt to 
a on-.lH.,r kn-wirifr liis ii.s,ilv,.n<-v, i> .I,..,,,,.! t„ In , uitl, tl,.. int.nt to 
.k-trau.l, nii.l surli ,.,v.|i|,,r ,„a,v !,.• p..mii..1|,.-1 t., r.^fero tli- auu.unt 
<.r thnifr nvf.vcl, m- tl„. valii.. tl.. ■(•.•.. f. fur tlir Ih ,„ tit 
(('. ('. Ut:5t!.) 

A -ale Mil cn-.lii t.i a i.ri-~,,n uh 
^'iiitrMJ h.\.\ a,- frail. iuliiit a^aiiwt 
hinder ami delay tlieiii. 

All r.ransterjt <>{ |>r..y)(rt.v. or piindias*. ,.n creilit hv relatives, at a time 
when the iii.-..lvene,v is imtorions. fiirni<he-^ cnMcihe ,,t" fraud and e..lliiiiou. 

A >..n, ..r dauifht.T, or wife of iiL-*>lv( n- wh.. pinvha^r. thr estate or 
!'r..iMrty iiiu>t have s,.ini upparenr means. ,,r tl^. transfer wmild ;«• recardcd 
a-s trandnlent. If the tncn. v is actually pail the transaetion is remilar. 

A chattel in-irt<ra^'e to secure a er.'dit..r, or in settlement <if a (hlit pre- 
viously contraete<l, r.r to ,,rnre a snntv, if jriv.u within sixty days of making 
an assiL'-nnii nt. i«\,.id i.nvanl- ..ihcr ■ r.-.litor ■. 

In Ontaim... hv ani.ii.liii.'iit ..f l!tiO. if nn assiCTimenf is ma.le within 

liixty (lav^ :ifti r a I ran-aef i-n llial lia< iIk rlfii-t ..f -ivinir "i rcdit..r a 

|.n t.r. ii.v ,,ver -n.-j, 1 raii-action i- prcMinifd 1.. Ih^ perforated with' 
'hai inienj. 

In British Columbia, i.y ('hap. 7 nf r.ios. jj i< i|.;,dr ilir dntv ,.f the 

party wiio pun-ha-i- a sl.,ek ..f u- 1, in l.nlj^ ,,nt .,f il„. n-iial eoiirs,-',.f l.iisi- 

ness of the vend<.r, ..r when siilwtantially it is the .-ntir.' -i.K^k <>{ the ven.lor, 
or ^vhtre an interest in the l)u.siness is conveyed, the i)nreha.ser paying 
th. prir, ..r i:i\iiii: any pn.niissnry not. • or other di.ctiment nn aeeonii' of Mieh 
]'rie<', to demand fnnn the vendor a -tatutory deelaratio, jjivinir the nanus 

and address..s of the en ditors from whom sii.j l' 1- were pnreliased, and the 

amount still owinjr on them. If thi.- i. n,.t doi,,.. and ml h ereditors an' not 
paid the pnrehnse price of su.di ^.-.ds towards the payment of th-ir claims, 
''"■" -li'h -all- .r traiifir is di emed fraiidiileni and void. The j irehaser 
mav, however, pay the elaiins ..f .-iieh ere,?it.,r- an<l ih. 11 have a ritrht of action 
against tli(> vendor for smdi moneys paid 

In Manitoba. Chap. fiO of l'.ui:i mak - it the duty ,,i rv>T, pcrs-.n who 
shall harL'ain for or purchase any st.x-k of fr,„„|s ,,r mercliamlisc " in 'udk " 
tor . ifli, r radi ..r ..n credit to oj.tain from the vendor Ix'fore makiiifr s. tth^ 
iiient a writt.n statement, verified I.y atlidaivl. ..f the \end u- or his airent. 
pivinir the names and addressos of all hi# cri'ditors f..r amounts exceedinfr 
$."0 and the amoiintx -till due each resiKvtively. If such >t itutorv dirlaraiion 
is^not deman.h'd ;iiid fiirni~hed anv paMiient is nue'e, then ,||,-Ii -ale 
fhall he d'-<'ined ' . he fraudulent, and Ix ahsolutely void asraiiist the ereditors. 
unless the whole of the pr.M'eeds of such sale are ;Mtiially jijiiilie.l towards the 
payment of all his creditors pro mUi. and withon' preference, except sm-h 
as is (>ro\ iiled for hy law or jirevions contr nt. 

Su.di pnr.-haser, iip<.ii ohtaininjr snch staintory ile.daratinn. is required to 
either ohtain the written waiver of the provisions of this Sta.iite from such 
creditors, or to pav the purchase money into the hands of a trust rompanv or 
official assipiee for rateahle distrihiition anionpr th<' creditors, if the pnr- 
cha.ser ncLdecfs to do this the .sale shall 1m> deenio<l to Ix' fraudulent an<l void 
apainst the ereditors, unless the whole amount of the purchase n>on( v is ap- 
plied hy the vendor in f>nyment of such cnvlitors pro rain and withoiU p.refer- 

OTl CO. 

VAl.Ili 1 i;an<i I |;> 


_ Any sale nr r .,f n |^ ,,:• ui, ut ..f tlir n^uA c.ursi' of 

busini'ss nf flic v.ii.lor. ..I- wliMirvrr an iiit.'n>t in the l,ll^iIH■ss ,.r trade is '^ol.l, 
such sal.' .T tian-f.i- <|„ili U' .l.fincl " a sale in Imlk." But if tho vendor 
delivers t^) the |.urciia-er a written waiv. r ..( U,- provisions of this Act from 
his creditors re|ovseiitin^' r.O per emr. in nuiiil».r :ind value of tlie claims 
shown liV the statutory .jeclaralion. .h<n this Act .-hall u^t apidv. Act came 
int.. forcf Sept'inKT 1. litO'j. 

866 Fraudulent Intention. 

I'rauduleni iiit(iiti(in i- a innferial element in an action to -et n-idc a 
transfer ..r e.,n\ e\ a.ic-e a- Leini: fraudulent aiiain-t and where this 
element dix's II,, t exi-t ih,' acti.,i, .Mnimt ^uere,,|. (Carr r. Cu'tield, 20, O. R. 
21S). It niu-t he shown that the .lehtor intended t,. chfraud his creditors 
or some ,.„.. ,,f them, also that the vendee ,,r transferee knew his intenti<,n, 
and al-^-t that -u.di Irati-f, r actually ),r,..luee,i injurv u< tlie crclitors, other- 
v.iso the action t,. M-t a-i,l«> cann,,f succee,]. 

Where i, c,,nveyaiiee is '■ V, .hitii a rv." that i~ when it i- made without 
vahiahle con.Mderati,.n. it is (,nly nece:-.fry to sh,)w fraudtilene intention on 
the j,art of the ^rantor in ord.r to have it set aside (Oliv.T i: ^fcLautrhlin 
24 O. R.. 4n. 

A suit to set a-id,' a iiayment, or sale, or transfix, or cnvevancc of 
propertv mu<t !,.• taken wifhii. -i\tv dav- ,.f <u'di ailetre,] fraudulent transac- 
tion. After ;i'i as-iimment h:\< heen mad., f,,r the treneral henefit of creditora, 
no hut 'lu' assiiniee can hrincr such action, uidess the assitrnee pfuses to 
do so II! a iiarticnia-,- case. A creditor iu..y then ohtain |,ermissirm from the 
court f,. hrinsr action in his own name and at hi-, own ri-k. 

[v (^ri:nKr an acti<-n to set a-idi- may he hn.usrht within "Ik' v(^ar from 
the tini.' when flie creditor ohtaiin the kn.iwledu'f ,d' the frau,lul,>nt transac- 

867 Valid Conveyances and Transfers. 

All -ales in the re._-idar cour.-i ,if l,,i-iness, whether ,>n credit ..r for 
cash, l,y an in.solvent before an a^isiirnment is actually mail.', are valid. 

.\11 boua-fidr payments in the ordinary course i,f trade or callinii to 
iniiii'eiit parties f,,r value are valid. Kven .i larfre ] mer to a creditor 
jUst previous to iiiakins; an assifniment cainiot h,> set a>uh' unless it can ha 
shown tiiat. such creditor iiad a knowle.lire of the insolvent's affairs. 

.V c<mveyaiice i.f real <>*tate 1,\ a per-,,n who i- in-,.lve<.- cannot be set 
asid,' where the purchaser in L'ood I'aitli l«,UL'ht and jiaid a fair consideration 
for the -auM . .\ pu!i ha-er ,-annot he held t'or what the vendor does with tho 

A chaitel niortiraire trivfu !«fore as-i;rnment hy wav of s,H,uritv for an 
actual hdtia-fidr a,ivaiii>' ,,f iii,'ii,y c-i\en at the tinio is valid. pro\idin!r the 
money advanced hears a fair and rea-onaKle relative value to the con-i>lcration 
(Ziv( n. 

PiirchaM- hy a [lartner of a ci>-partner's interest. althouLrh h*' kn.'ws such 
jiaiiner to he emharrnssid. i-i valid if he had n ■ iowl(,lp" that such partner 
intended to defrau<I his creditors hv such sale. 

Fvdi thou}:'' a piircha-er knows that the vi l.,r is insolvmt a sale ran- 
not ho 8et aside unless it can bo shown that the |,urchaspr kn<'w that the sale 
was made with the intent to defraud creditors. There is no hfritimate way 
H ilebtor can pay debts except throufrh sales. 


..r uuos j'/hr' 'I'"' ' """' " ''"^''" "'"'" """■' '"■ *^"^ " J"'l«""-"t Hffain.t Lim 
li.. i.n.peru U. a bona-l,dr uithuni „.„i,.,.. Kv.,, wh-r. a ,„.r.s.m 

h 'r ';;; '"■"'':;':'-^' "".' "'•• '"•;""-" "•• l"-....!,,, in. .■.-...lirors f.,.,n i.i i„" 
r t ,.,„ p,t.,.s a 1...,. ..r olaMu „,..,„ i,. ,„ a purc-hns.,- wl>., pa^. ,h. ,„ll 
pru... 1... sal,, can..,,. ,. .h asi,i.-, unl.^s it ,.«., 1... d.-arlv .!,ow„ tliat tl... sale 
?";:;: ---"'"'""V'-'- '■"'••-I i"t- l.y ^.>/// part;.. iV.r tl>.. p,up.,.. ,.f j! 
f.Mtm^ tl,.. ..r...|,t,„-, ,n ..UHal „r ti,.. v..,.,!..,-. „r ,1... oo„,p!ai„;„t in par- 

868 The Unpaid Vendor s Privileges. 

■'•' ■'" 'I"; IV.^u,:,.. „p1 .\,ut.,un,llan.|. if th,. soilrr sl.ouUl Ivarn that 
""• | ,s ,ns„lv..„t 1... n.ay r..f,.... to .{..liv-r anv cu.mJs ,ha I, v 1 „ 
|.urd.a...l ou or< If th. „.,.|s l.av.. 1...,, 4.ipp,.,i ,l,..- „ v I , , .° 

"" ' - '""•■• -"" '"• l",l if rhcv an. still in tl... .,f ,ho <-arrir 

--an h,,u..,.,an. ,....i,liM.,lH. I.ill of la,li„f, has no, 1,..M. transf.!^^^^ 

'"";;■'■'" l'"'-'"'^"*rf'"- vain... ..r , lp..l as soouritv for a hn„n-fulr a Ivan ' 

of onry fron. an,.,.„, party. Sn.!, vali.l tran..f..r ,.f th- 1, 11 „ ,1 

be" r:; ."'"■'' '"""'^ /"'■ "•'"•• -'-^•-•"•^ "- -m-.i v..n,i.,r-s m;., :;;; 

t>niM pa.M,.„r lia.l l)M.n nn.-l... S... Cn.lirional Sah's. 

Atfr Ijoih tlu. ko.kIs an.l tl,.. l.ilj „f la.lin^^ hav,. I,f>.„ .l.-Iivon.,] to the 
p.m.hnsor. tlu.,.. .„ X..„.fonn.lIan.l an.l all ,1... IVovin.... .-xcp, i)X. Z 

can only rank with of!„.r <'n., ' 

„„,,-■'":..',""::;;■;''■■ ""• :'"::•■ '"t?''?--^ '••=" ''"■ '^"-•^ h'v^' i»"-.. fran.ini,.ntiv 

n,,,..,M,|. «,th no ,nr..nt,on of l>,.,np pai-l for. ho tnav thrn . nt.r s„it fo'r 
...„• n.....v..ry ovn aft.T th.v an. i, th,. .h-l.torV war..n,on,s. :.,„! ,f ,!„. r..,,,.! 
IS p,.n.^,I ,ho po„.|s will th.n not Lncmio part of th.- ostatc 

Tn -as,, of foroi.irn shipnwnts. ,.s s.».n as th- ,I,.l„„r nciv, - ,h.. I,in ,,f 
la.l.n:, an.l pn.vs ,h,. .Int.os th,.y h.-on,,. part ,>f th.- ,.sfa,,., -v.n th.n.ri, ,I„.v 
an. ..Ia..-.l l.v h,,ii in a l),.n.h.,| wan.hous,«. 

In Quebec, tl,,. nnpai.l vcn.h.r has a Ii..n f.r .l.irrv .lav- ,,n tli,. l'.hhIs 

;;""'• '• ;'" > an. i,, ,h.. of ,h.. ,.arri..r or in ,h.. ston- or «"u oon. of 

ho pnn .as..r. ,„,l..-s th.y hav.. a..tnally 1«.. n s-M t.. a ho„„-fu,. p, nW 

partv. T u.r..fon. po, that hnv,. nv-ntly l«.,.n l,n>nu'ht into ,h.. nn-niisos 
of an .nsoKvnt an. not y,., „ai,l for. an.) l„.i„« y,.t in l.nlk or in n f„ •„, Z 

:7;;;;"inJt:;;:""'' ^^'""'' '"" '^' '"•'■' ''^ ""■ "^^''^"^" - '-■• "^ •''--«^ 

870 Attaching Goods of Absconding Debtors. 

Tl.o; of .1 ,lr.htor tnovin- o„t of th,. pi,,,.-, !>,„ ,„., o„t of th- ronntrv 
,iann..f Ix. 9topp,.,| hy a f.rr.i.tor ,..«;,-,.pt „ndc>r an .■x..<.ntion 

Tn 0^,0 of a p,.rs,>n l,,.in- in-lol.t.-.l to a snl?i,.i,.nt s.un. whi.-l, vari-s in 

l,.-,l,fT.r,.nt Pr.nm..,.-. an.l a!.-,.n,Is fn.n, tl... i'r.,vin,-,.. l,.avin,.r ..ff.v.s |i„hlo 

to s..,7nro nn.l,.r_an -N<.,.„tion. or atton,,.ts t.. r,.n,ovo s.ioh n,.rsonal pn.pertv 

ont of tl,-. Provinop. ,.r fn„n on,, oonnty to an-.thor. or koops ...n.vah^d to 

avoLl -..rv„... of , r,.-,.ss. ,h.. < i;. .r 1.- n.nkiniT n%Iavit t,. that ,.fT,,.r ,nnv 

.\B.SfOMi|\(, IM-.llKiKS. 


prociin^;. wi.rnuit u, ;,ii;,rl, mu'Ii c.f th.' p,..,!^ as aro liaMf t.. m i/,,, ■ f,,r 
debt. Care must b.> taken, bowewr, ii..f t.. seize the exemj.tin,,- ,„• t,. .(.,,, 
their reTtidval i.r tin p. w,,iil,l |„. a eaiise for diimafie-'. 

In Ontario, if ili • ilrlu is not less tliiin JJikdO nni- re tli:in $1(m».u(), 

the writ (4"iili;e'liii!,-iitiiiiiv I.e (.litiiiiicd (vnn tli.- Clerk ..iili,. I )ivi-i..|i <' 
but (.V. r tliiit iiinniint fr.-in >h.' .1. el-re r,f the (\mnlv Coiirf. In Oie 1k( 
Httaehiiieiit j, j!lu\w,i if il,,. ,|,|,f i^ .*.-,.()() or upward. * 

In British Columbia, if the ilrld (..\cer<l- $lU(>.fM), the writ .iirv i-sue 
♦",'■'"" '!"■ ' "I'My (Miir; . f within it. jiiri~.|i,'Ti.,n : if then from the 
Siipn :ni' ( ■niirt. 

In Manitoba, if the diht i~ not 1. - tluin .>i;iii.nfi nor iimti- ih;in $l';i(1.00, 
the writ may isFiie from tiir ('..iiniy ( Muri : ..\. r tli;ii i' Kiiiir's ll.neli.' 
In ca<o of :ih=e..7;,'in2 from ihc Prosin,.,. tji,. ,1, |,t,,r Ins.'s his exemptions 
unl.-. tile I'miiiiIv li:i- |„.en l.'fi :in-l iir.' in iee,| ,,f <iich p-mhIs. Tlini the 
exem|itions will !>, in the o|iti(.ii .,f iji, .lielire. 

In Alberta. Saskatchewan, Yukon and the Norrh-Wtst Terri- 
tories, it tjic amount i{ di 1 t . x-'c, N .«:,(l.nii, .| writ m;iv js-ie- an.l if 
iilic-oe.lin;: dilii.i;- |i mi - te. wif,' ,,r family no |iro[jer-v is exempt. 

In New Brunswick, for a -nm of .*((i.O(i aie! npwii-ds. the writ may 
is-iie hy a ,Jii,Il'c of the Sii|iremo C.urtt, an I al-o from County Court when 
the (leh; is within its juris. lirtion. 

In Nov.. Scotia, if the sum is $»n.(i(i ;.n,| upward-, tlic writ may issue 
from tho Suproiiio ('-ur'. or ilio C .unt\ ('ourr if dclil i- fp-ni *l'(I.0O to 

In Prince Edward Island, if d.l.t i -$:;.;.( i(t, ;,n,| N'kw F.)f.\i>i .wn if 

$L*0.(ii'. the ■: 1- mav 1«. atlac'hed l.eforc judL'tiK nt. 

871 Arrest of Debtor. 

'1 hi- l:<ti„it is that no on in Canada can l.c arrested f(.r deht, luit it is 
only true hieau:;e other nami s aro u-i d for thr cause of arrest — fraud 
;d>-coiidiiii: .h-iitor, eonieinpt of court, etc. 

.\11 till- Provinces allow an aKscondins; ilelitor 'o lie arrested upon a 
rafiiax ami lield for hail; al- . impri-otimi lit for ''rauduhiif a-siirnments. ob- 
'^lii'imr L' Is under false preti tices, aiid for e,,nlem)it of .-..iirt. 

In Ontario, British Cohimbia and the Yukon. aiiMondim: di l>tor 
can only he arrested and held for hail I'v a per-on liaviiar a . laim aL'aiiet 
him for $liH).0() or incAard-. lu all cases an order ma\ \n- made as soon 
a« the suit is eomn!cn<^il and liit"ore jiiil^rmenf. 

In ManitoV J, Alberta, Saskatchewan and North-West Territories, 

urn -f i~ not alio', ed e ,c,.pi tlic del. tor i- iruiliy of .•ont.ini>t ..f ourt. The' 

L' 1-^ nia\ 11. atia.-ii. .1. 

In Quebec, if ah-'Mf. iiu;r from Quel.e,- ati.l ttntaMo. aiei .1. ht i> $.".0.00 
or npwar.!. 

l'( r-oiis who caiitiol !i( arresiid for debt are cierfr.vinen, persons seventy 
year- of aire or over, and women, whether traders or not. 

In New Brunswick, in lii|ui(]ateil eiaiiuA, if over >?JO.0ii, writ for 
arrest may he oliiaincil from the Sujireme and County Courts liefore iiiil;^- 
tiient, liut for a sum m./ ri Hniii an or.ler from a;e laust he obtained. 
No arrest after imlL'ment except in tlic p< ttv courts I'nvinir jnrisdicf i iii und.r 



Nova l.,«-,.sf -„„. all.>vvinjr am..s| i, *:.'o..M). wl...,, vrit mav 

su,,.;';/;':::,.'^'"^^' '^'■^"'- ■' ''••'" '^ *^'^'-'"^- -'• -'>• -- f-- the 

arJu.,l.^'"'°"'"'"""' " ''*■'" " *•"■"•""• "bson.lin. ,l,.l,„>r „„.. ],, 
873 Assignment of Wages. 

tor «.,.,., or >alar.v to Ik- rarur,! in tl... futu.-,., pivtu i„ <v,„si,lorati..„ ,,t i 
loan or a.lvan.v „n.., ,1,... $2oo. shall Ik- vali.i the "„ p -v "V ,, 

nt „K b^ , oh enipIov.T and iftorward. fihvl i„ ,h,. olli... of th. ('l.rk of 
lu. ( ,.„„tv ( ,.ur „, the. divisiou when, -n.h as.ip.or liv... if a n .,!,,, 
« her,, h,. works .f uot a resident of .Mani.ol.a. Jj,,, ,„i.. seelion .l',! „.. 
a .plv if the,„u.nt ,s to secure a .iel„ contracte.l f.,,- ,u.ce..arie. .Mtl.r 
already re..eive,i or to l,e supplied in the future 

v. sueh a.siirn.nent of wap;. to be earned in the future shall b,. valid if 
n ..!,. bs n.arne.! >uan^^ his wife unle.s the writren eo„.,,„ of ,he 
wife IS attached to sueh assipiiinent. 

Xo assipn.ient of wa-es to !«■ earn.Hl in the future given for a presont 

I)or eenf. ot tli(. amount of waires as.mjmed. 

< II A I' ill; \.wi. 


878 Entering Cases in Court. 

r»n /n,"''l'i!"'"' "'"' "''"••■\"'",' '"'^•' neeounts they tind it neoessarv to sue, 
can enter the,, own eases .n the S.null Debts Court, of tl,e d.fTeront Proy! 
.n..o., or tl.,. I)n ,Mon ( ou,-, ot Ontario, as w..ll as anv solicitor would do for 

The plaintitr. when .-ntering aetio,,. ,„„.st leave with the elerk. l,v 
or otherwise, a s„,,ple statement in writiujr (with a- n.anv copies as Here 
are defendants) of the can., of action. ,f an account, it n.av C i,. ,1 

sjnl fortn of an account: ,n the ea^.. of a note, a co„v; and of an^ ..her 
^^r,tten .nstruni.-n,. a >..t,.n>ent of it piving its purport. .Mu,t al<o 
pm- h.s posl-olhee a. dress, and full natne and post-otfico addrcs. of the 
dofeadant and stat, -f L ,s unujarried. Where a layman is thrs entering 

he for su„. the ( lerk of the Court will alwa; dvo .he inforntation 
that may be n..eded. .\< a .natter of fact, there is nothinji to do but to put in 
the accounts as alv>ve stated, and pay the fee for thr summons an.l service. 
In Ontario, if iJ.e account is .in.ier $10.00. the cost ripht ihrouch to 
3ud,mu n, will be only $1..'.-, for ch-rk', fees, or $l.r..-. includi,,.. the bailiff's 
Tees tor .serv,ee of .summons, exclusive of his mileage. 



Wli. 11 ili( mil. .Ill, I ,xci-(hIs $1().(m», till, fost iucroascs ucc.nlin.' t.) the 
am, -Hill i,{ thf liill, hut in n.. oiixc will it much fxectil $2.50. 

Ac-tidiia iiiav b«' taken iu the Division Court in following casis: 
1. AH personal wliere the amount dainie.l (h^c^ not exceed 
'$'!(». 00; and ill |,.rsunal aeli.HH ii|. t., .id mi. mi jf li,, parties coiis, nt tliereto 
ill v^ ritiiifr. 

-. ill lii|iiiilat((l iiKinev ehiiins. that i-i, note? ainl written iii-tnuiients, 
ii|i tii $Jiio.Mii ami interest in a«Miti<.ii t.) that aiiioiint. 

■'■ In nnliipiidated claims and ilemanJs of debt as aocoiinti, iiiii f.r 
hr. Ml h ■•( ei.iitraet. up f,) $l(Mi.()ii. 

I. .\l,se<in(lin,<; deliturs, where elaim is not less iliaii .^l.oii nor iimre than 

.">. l-'iir reidi'viii il \iilni' .i.ns nit e\|.|, ,1 >:i;ii ml 

879 Small Debts Courts. 

I 1„ u-,-> till- ill.' int', ,>r Small Debts Ciiiirt-^ in all the Provinces 
are aU.iii the same as tlio.s.. here iriveii for Ontario, ;ni<l thi' pro..ess for enter- 
iiiir ca-es aiel f..r d.fenee siniilar, therefore ili.- f. llnwiiif; two sections, 
t..i:ether with the preee.lin>r one. will ijiv,. th.. 1.1,11, information desired. 

II liie debtor puts in a defence ainl ili,. i .'-, ,',.|ii,.< i., irinl it, w.mM be 
b< II, r 111 tlie most of to emplo.v a lawver t,.,hi..t lb,, case f.,r ex- 
perience is neoloti at court as well as ktiowledjre. and Ixsides the .ludu'es lo.ik 
ii|i..n a layman theiv as somewhat of an intruder. 

When anv iiersoii is served with a summons lliiv -iiouM not lei the few 
latin words in it scare them. The summons will always .state the number 
■ d days ill whieb n ,b f.'nee tniisf be entere.l or judpiient may b<. piven by 
dilaiilt. If ill,- .1, f. inliiiii !ia- auythiiip to f;ain by defenditi? the suit, he has 
llie ri<:lit t,i Ht lip imy ,.ii,. ,,r ..f several pli-a- airain-t ilin claim made 
airainst him. 

In wIhtc the .1, of is .xitlawrd aii.l the defi iiijant intends to take 
lb. iHii.'lit of lb,' Slaliil.- 1. 1' Limitations, j,,' iihIt-i ^lat,' in in- .li-pnte note 
ibat ibe ■■laini i- barri',1 by Statute a- it is ,jver six year- .,1,1 (..r as the case 
iii;:v biO, otb'rwi-i' iu.L'ni.nt will b,' uivin iiiraiiist biiii bv ^..wiv jinltres. 

880 Statement of Defense. " Dispute Note." 

The >t:'.tement of ilefi use is calleil a "Dispiiii. n.l'." of which the fol- 
lo\>ini: will serve as a triii.b. to those unfamiliar with the forms. The name 
oi ill. .■.'iirt an. I ri'..\in,-r, ..f .■.'iir-c, may Ih' changx'd lo suit. It iiiav be sent 
by p..~t ,.i ii,'li\cr-e,l p,'rs,,nally t.. tlii. eltik. 


In tlie (Not Division Couri of tlio Coiinly of 

It.iwi'.n ikIvp naini'i. I'laiiililT. ami ibIvh nainei, Pefendanl 
Taki' notice. I dlapiiti ttip I'lalnttff's claim In this caRc. (Here specify the 
proiiiiils of defence, statutory or otherwise.) 

Hated lliis day of , A. I). Vi 

T.I 111,' clerk of ihi> s.iiil (',1^1. 
and lo the said I'lalntlff. 

In setting; out the j:r,niii,ls ,,f ,li.fencp stat ■ tii,ni brieils- ami dl-i incily, 
tisinjr a separate paraprajdi for i a.-b -eparaie <lefeii-e yon ml. ml to make, 
if more one, as follows: 

1. That the plaintiff owes you a ibbt, v lii.'b yon .■laim should lie sit 
off ajraiust it; or. 

2. Tliat you have performed your part of the contract; or, 


*■ " •'■'• "^ AMI M I Al II MKMS. 

.0 acre'..' i"! •>;." ''"'' "'^''■"' '" '"'""■'" "• ''"' "*"• "-^ «'''^'- I""-ty refused 

ciainMu''!;" Xn'::;; " ^•""""•'-•'-" - -• ^-^-t to pa., o. .> th.. whoi^ 

old; nr """' ''"■' "'""" *"*'' ^*""'" """""•''^' '"^ i' "■"■■< '"•"■' than mn v, ar. 

was i;rl;:;..a -'or" ""'" '"'"■""'"■ '"'" "' ^'^'- ^^'"" "'^' ''• '" '■'-"-' 

7. lljut vou du nut owe tin. deot olainu'd; or, 

'Ihat jHTformauci. was impoSMble: (1) thn'uRli th, acts ,,f (;,„i i^^ 

881 Place of Suit— Venue. 

, ,'".'"'; '" "■;^'' ''■'■ '"•'^"■'' ■'■ '■■■■'"•"■' '!"■ pl^.-r uinn. il,.. ,..,„,ra<-t H 
Hia^l.- .. ul„.n. ,k. MU, will U. tn,.d. unl,., ,!.,. ,.„n,ra,., fix,, son.o other 

Contracts made l.v l,.,tcr liav,. tor |.l.„v uii,.,v ,1„ l,,„,r „,• , „,„. 

ance was sijnicd, luiuv tl,,,-,' the .<iiit shnuM |„. ' 

situi"/"^"'"' "• ^•■^'' '■^•^"•■- ""• I'l-c ...■ ,..,n,n.,.r ,- uli,.,v ,1... ,„..,,..rry is 
A pr..,„iss„ry note ,„„ „.m.1.. ,..y.,i,|,. m. m„v dHinitc ph w„uld 1„. 

G.mmIs ..rderod oi s.dd from store ,„• wa.vl,,,,,- ;,n,| t.k,.„ |,v pufeln^.r 
or shippe,! „.„.„ there. w„„ld p.^enillv h. e „,.t ph,-,. ,„,. p,„. ,.f :, , 
(.o.,,i-^,l,1nMV,ll,v,.,veller,,, ,,,,., .,.,:,,!,,-. -1.,. pl.„.e 'f suit would 

882 Ch-.vge. of Venue. 

, . ^' ''■" '"'" ■' '""i"""" praefiee ;,„ ^r ,,,.,1111 fariun e- and -de. firni-^ 

to ins.-t n cause ni the written a£rr.ei„..nt provi-iinir that i„ ,■;,-, .„i. hid 
fo l>o entered to enforce payment, the a.'tion niav he fri,.,l i,, , (,,„,, ,„i,',,, the one Iravin-r jurisdiction where the pnrcha-c , liv, ,1 

In Ontarir, aniendm.nt of lOa; e,i.,ctod, "no proviso condition, stipn- 
lat.on. a^reenienf or statenu.nt which provides for the place of trial of anv 
action. .haH be of anv force or ofToct under the following conditions- ' 

1. If It, th.. n,v.<,on Court action, the .h.feudant within the time 
allowed for dHpunnir the plaintiff's claim, files with 'he clc-k of ,he eourt 
out of which the snnunons ismed a notice disputing tl.. jurisdiction of <uch 
court, atid an athdav.t hy .such defendat.t .„■ hi. affent that in his belief 
here ,s n (rood .h.fence to the action on the merits; further »tatin- 
the Ouision (<n.rt wh,.r-,n the cause of action aros.. and the defendant n" 

t?. If i„ a„y other .ourt than a Division Court, the defendant n.ik.s 
motion to c!,an-. tiie venue or place of trial accordi.ifr to the practice of such 
court. ' "inu 


<..\l(.\ISII.\ll-..\ i.s. 


lint Swtion b'> of the Division Courts Act of Oiitaim ^ivi: • Ih,. ;,.tiou 
may I..- . nt. r.',| u,,-! trici in iln- ,.,.iirt ncar.'^t to the of tho de- 
1. imIhi.i. irr.s,.,.,.ti\v „l lUv |.lu.... uh.r,- tlir .•ii.iso of a.'tinu uro«.," „„,| tlie 
muA- i.cni.iHiivo (>owiT is given the court.s in all the Provinces. 

In Saskatehewun by amendment of l!l(),s. it is pruvi.le.l that whore 
th. v.n.,.- I, .^,.|t!,.,i ,„ a wiiit. n il|^tnlln^nt that i- ^ur.l .,n Mirh |.r.,vi>ion 

fiJ^'m'" "''""" '"" '""'""'' '" '"' '"'' "" ""''' "'^'■''*'""^"' "'""P- 38, 

883 Debtor Being Out of the i-rovince. 

In .•a.cs wh('n. jii.jfrnu i.t lias Um s.vure.I iK'for. the debtor leaves 
fJie 1 n.vinw and go.s to other Tr-vin.-e or to another r-muitrv tho 
( may |.r.«.ure an •■ .xen.plitieation " ..t' il... jii.jpn, nt fr..,i, ili.'.nurt 

in winch It i.s entered and l.rinji r.iiit u|ioti it in the |,i-,|,. ,• , t ,„ ,1,,. i>,.,,v. 

inee or stal" in wiiieh tin- ditVndaiit resides. 

Mut Ml eases where judpii.iit has not Immh recovi ivd l„ i'.mv tli, ,1, l,f,,r 
1' tl tli( I'n.vinee. two coiirM's an- o|)en to tiie creditor: 

1. If the .lil,t is payable a: the place wh. re fh.- mdii-.r n-id.s or 
'•am, - ,,n business, he may sue in the eoiintv court in Ontario or corr.snoud- 
in;r court in the other I'p.viiie,.s, and the writ can !«• served on the defen- 
d:mt in tlie Province wh. re he resi.hs or in tli.. State or ..thrr cuntrv to 
which li<. has nmvcl if he is a IJritish siihj,.ct. If the debtor is nol a Hrifish 
Mil.|eci. the court Would til. n <m applicati..n is.^ne a "notice" inst.'ii.I ..f a 
writ ari.l that w..ul.I U- serv.>.l in the foreipn .Hountrv. After s.vuriii- ju.lg- 
ment. if the .hd>t..r had n.. assets in with whi.-li t,. -atisfv th.- .'•Jaim 
the court woul.l i<su.. an " ..s..,iipiili..ati..n " .f ih,. judirmei.t :,n.i -nit ...uld 
.>e br.iui.'ht tip.m it in th.' fireifiu .'oiintrv; nr. 

-• ^"" '"■'.'• '" '"■•"i;-'ht ar ..„,.,. in the pmiu-r e,„irt in the f..rei,ru 
r..nntry ,.r in Kn-hiud, l,ut the . xp. i,-e in pr.^vmi.' the .•Inim wnuM -,.,„. r„|lv 
make this impracti.-able, f.,r unl. ,- th, d, l.f ^ere ,„ tj,,. f,,,-,,, ,,f ;, pr,,mi^- 
■^orv „ot.. nr -niuhir c.mtraet. witn.^ss.s to prove the claim w,.uM have to 
iitt, nd ,-oini .,r a .•oi„nii<sion be app.iint.'d to take evidence tliere. 

*' '~ '■""-i^riied ff.r sale .iii commission t,, :, |MT-,.n in .in. th. r I'r ,v- 

''"■e, nr m niiotli.r .•oiintry and the (s.nsiimce ni.ikin- d.-fauh in,-.nt 
111. .■..nsi-n..r niMv bring action in the courts wIlp- t),, ..ousisrn.v ivsi.l. s and 
e'.mp.l him to r.-iiilcr an account, and to pav ..vcr th.' n.'t pr.HTe.l- md t, 
r. turn ih.. uns..Id |N,rti.m if allliad ii..f Uvii disp..sed .jf. 
885 Garnishment— Attachment of Debts. 

•^'' ''"' I'l'"^ inc. ,, :,n.i X, wfunndlaml. alL.w m.mev du.' a .h'hinr wliile 
v.f III Ih.. hand- nt a third parlv t.. !>-■ allarhrj ,,r iraniish.'.Ml. 

(iarnishmeiit afla.dies t.> wonrif ,],„. (n,,t i., pn.p.Ttv, as promissory 
n..tes. etc.), M.i.l the m.m.y must be pivs.mlv dm- that is, it caniiMf be 
trarnidie. ■! in a.lvanee. 

Tlie folh.wimr salari.s, cmohmi.-nl. ami mon.v, aiv .■x.^mnt from .'ar- 
iii-hmeiif : ~ 

Saiari.'s of ..(hcials lueler D.imjuion Govcrnm. nt, salaries of judires, 
[.ciismns. ami t. achers' sii|>eranniiation allownnc(>s. un.l m.m.v d.p'wit,.d m 
Post Otfl.-e Savinir^ Hank are exempt from pami.'«hm. tit hv .r.-ditors. or 
sfizure in case ..f insolviney; so are jxn.sions, alimon". etc. 

Aceordine to a judsment delivered by .ludjre Mors.m. April 2?tth. I'.M).'}, 


(*IHX AM) ATT,\<ll.Mi;.NTH. 

in Toronto, t lie sularv of an nltlcriimn ninnot b«' frarnislurij for (W)t Ufaiiic 
it i* not ii ililit l)_v tlip citv dim ilic aMirninn wiiliin th( niPHninj,' of tht- Act, 
but niiTf Iv u statutory olilipiiiou arisiup out of ilio pjiv liv-law to pav the 
rcinuiicTatinn. hcnoi not pirniitlial.lf. No donht the sain.' will ii.>l<i pKwl iu 
all tin- I'roviiKvs, for sucli iiitcrpritalion is manifcMiv in llip iniblic iiitcifst. 
All thf I'ri.viiuMn, and X<'\vf.>uiidlaud al*>. cxfinjit a rortain amount 
dm wajri-iai.iors, unless the dibt is for Ixmrd and J.Mieinjr. 

Moncv due a niivlianif as contract |>ricc of work done instead of for 
\vau;<- is nm cNcnipt. 

In Ontario LMiiii-liic ..rdcr may issue citlur iK-fon- or afirr judpncnt 
from Clirk of the Hivision ("oiirt, luit luoiny in the hand* of a third partv 
due a mci-hanic. workman, lal>orer, servant, cirrk «»r pinjilovee for wages, 
whicli includes the permanent employe<n of the Provincial Gov«'niinent, can- 
not lie irariiislieed uide—tln sum due the meehani<'. etc., ex<-eeds $j:..(ii». niid 
then only to the extent of the excess. Tn case, however, where the debt was 
contractid for l«.>ard or lodirinir. and iu the opinion of the JmL'e the cNenip- 
fion of $i'.'..iH» in n,if necessary for the iriaiutenance ..f the debtor's family, 
then the amount to lx> wx-ur«>d hy the fraruishci will Im in the option of the 

A single man with no one depending on him for support has no amount 
reserved to him l.y law against gnrni-hmi iit. Xeitlu r have other clasfws of 
people who are not wage-earners. 

The garnishee !<uminou.<i cost.s .*2.00 on suuus up to $10.00, right through 

to judgment; fi i $!( to $-_>().00 ii will run up to .fl.Oo, Mud -imilar 

amounts in the otlier Provinces. 

Hv ameiidmi nt of ll>0'.t, chap. 4'*, .sec. .'», it is proviiied thai a creditor 
who attaches a di'bt sliail be deemed to do so for the lietietit (d" all the el-cdit'irs. 
and payment of such debt shall be to the slierifT of the county in uliich tlir 
garni-hee resides, for distribution under the Creditors' TJclicf .\ei. 

Tiiis s«>clion d<M'S not apply to the debts attaclied by proceedings in a 
Division Court, uidess In^fore the aujounl recov( rcil has ]iri-u actually paid 
over to the creditor an execution against the property of such debtor is placed 
in the liuild- of tile -llciitT of ^lleh cotnitv. 

In Manitoba summons may issue (ither before or after judgment. 
Amount reserved wage-earners. excc|>t Proviiu'ial idvil servants, is $l*."i.OO. 

In Saskatchewan, Alberta and the Territories garnishee order 
may issue ( 'brk "f iIk .'supreme Court, eilhrr before or after judgment. 
.\iiiount reserved wage-eariuTs, incltidiiig iiermanent employees <■! the 
Oovernment. is $2.'>.00. 

In Alberta money due by the Government to any civil serv;mt may ]w 
aiiMi'lied or garnishe«>d by serving a notice of tlie <daim on ilie irea^in'er .-r 
de))Uty-treasurer, giving the juime and aildress nf tlie employee and the 
nature of tlie (>m]>loyment. If the claim is not a judcrmcnt. the creditor 
must also -erve a copy of smdi notice on the eui|iloyee, together with a memiH 
randuni reijuirini: the employe<>, if he wishes to dispute the claim, to file a 
dispute note with the deputy-treasurer within twenty days from date of 


In the Yukon the wains iliie a me<diatiie. workman, cbik or other 
employee, iiirnidiiiir ]ierm.inent etufiloyees of the (lovcrnment, to tlie amount 
of $7.">. is exempt, except fiir Hiard jind loilirinir. 



In Ndv.i Scotia ..nicr iiinv i^mir after jti.ljrtiiftil. Ain.uin r.>, rvcl 
\vng>-i Mrticfi. wlntlior iiiiirritd or (tinjjlc, is i|i40.tJ0. 

In New Brunswick m-Mtr \^mu-> iit'trr jiiripmiii. ,\i mi iimivcI 

wugi'-turtnTs is #L'(t.(H». 

In P. E. Island <.ril<'r itui.v i-t-iiic ciilicr iM'Turi' nr iiftcr jiiil^iiK'iit. 
Amount nscrvr,! u ;!:.'.■ canu'r!* in oiic-hiilt" <>( tlif \va>;e«i tliio. 

In British Columbia >.'!iriiislic(' iinlcr iiiav issm- Inith l>«t'nf.' an.l after 
ju(if;miiit from nilitr tin- Count v or Siiprfiiie ("'.uirt "r Small I i.l)U Court, 
acoonling to jiirimliction. 

Amount rc-icrviil frniii the Siiuill l»ci)i-i C..urt-> t.i \v;ipf-cariuTs is )B;50.00 
per iiioiiih lor a iiiarric.l man or nii,- ,,ti wlimn nih.r- arc .!. i>.nilin;.'. ami 
*L'i>.iio for a >iiijrl(. niaii with m. uw AvunuUui: .,n liim. Chap. 55, sec. 34 
li. S, ,,f 1!. C. ' 

When parnislitM" ordt-r issues froni iIh' Cmntv d,- Suiirciiic (''.iirt, tho 
aiiM.iiiii roH«'rvc(l \vaj.'f-i'ariicr> i- $1o,(mi |„-r iiM.utli. (hai) .">•' -(•<• 107 

n. s. .,f n. c. , • -. . , 

Till' f \itii|itinn il'KM not apply if ihc debt is for lx>ard or I'mI;;;,)^ a,„] 
till' .lii.L'i' iir Ma^zi-tratc diR's n^i .licin ^uch sum nccpssarv for tlii- mipport 
"t ill. ,|. ;iii.l his family. 

In Quebec, if tho amount (•laiiiicd rxooods $.'.00, mav ho altachi'i[ 
licforr or atnr jmlLimcnl. For wap's anil salaries cM'iiipt from attachment 
'•<■•■ li-t "f ■• {•'M-mpiiMii^ t'mm Seizurr." -ul. ^i'.-ti..ii- III. tn 1 \'. 

887 Judgment. 

• i iiikiii' 11' 1-, tlir ilicri'i' iif a court (li-iiveml aftrr a ca-c ha- liceii de- 
I'idiil. Ill Ontario and nearly all ilie l'rii\inrcs e.\ecuti.ins luav i»in- anv 
time after judgment within si.x years without an order from the court, but 
after that an order from a .lud|re is necessary. (For time when juilpmmts 
outlaw -I (• " Statiiti' of l.iinitalions."! 

888 Execution. 

It till' jiidLriniiii "!' aiii'iiint ..f daiiiaL'r i- noi paid within thi' time 

.spii'itied in the judfrnicnt, an rxnutioii may i Iiiaiind to -cize and -ell ilu' 

dclifor's property to recover the amount of the jud<rnieiit and cost.-". The 
law- id' each I'rovinn . IriwiMf. i'\rnipl from -i i/urr nndii mi ■■\i-i'niiou 
.«utiicient jirojierty to (uabir the deiitor to eoutiniie hi- rri'iilar v.ic.ition. 
(See " Exemptions.") 

Priority among exirtition creditors lia- lui n alioli-hcd in all the 
I'rovincej. except as to executions from thr Small |)el>ts Courts. 

In Ontario executions from tin Hivision Court do not issue until 
tifiiiii day- after jud|,nnent unlos the .1 udge order- ditlcn iitly. and d. not 
hind irooils tmtil after actiinl seizure. 

In the CmintN and TTiirh Courts execution- may issue iuimciliaiily 

upon jiidirment, and hind hoth :: Is and lands fr,.m the date of delivery 

of execution to the sherifT. and anv tran-fcr or iiiortiiairc made thereafter and 
liefore .Seizure wmdd he void; hut 

Kxcctitiona require to be renewed every ♦hree years. If iioi k- pt in 
force hv renewals, after six years ;in order froni the couri i- iii'cr--ary to 
i-»sue a new execution. 

In Alberta. Saskatchewan and the North West Territories 

iliiv iiia\ i--iii iniiiii'cliaii'l V :iftrf judriiHiii. aip! r\|iiri' in tw xears unless 

Micaocopy nesoiuiioN lesr chart 

ANSI ond ISO lE^r tHARI Ni . 



1 32 



■ 40 






1-4 il.6 




rciK-wcl. Tl„ V i.iii.l ihc|s fivm ilic liiui' the writ is d.livi ivd t.. ilif 
slieriiT. (■.\c-(i)t those triiii>tVri'((l to ;i bona-/ide jmifhasi-r for value without 

In Manitoba, in iln^ Kin-'- i;iii,h, niav i-mw forthwith after jiiilg- 
uient, or iiiiv time within six veil-, without an order from ti .Ttidge, biU 
lifter six rears mtist lie ohtaili.-d. They iiiiid g<.o,!s from ihr ,l;!ir .it n <• ■],! 
by the slierifl as ajraiiist the debtor or [)iirehaser with iioiicc, and timn (]ate 
of seizure as apiiiist a ]inrelia>cr f,.r \aliir witlmut leitic.-. and iim-^t be 
renewed every twi. yoar<. 

Ill (.'oiiiily Court execution:- may is>nc six days afier iiidiiiiK n:. .ir 
forthwith on .hidire's onler They remain in force twelve months and bind 
guodi ouh/, and\ after sei/.nre. They may l.e ivn-wi d. and also may 
be exchanjred f..r a Kin^^'s IJench exenitiou at'li r beini: returned a- unco'l- 
lectible by a Cmnly {'•■\\i-\ baiiitV. 

Priority am(.]ij;: cxcciilien cnditors i- ;d..'li-li. d it' die txeciitioe is 
$r,0.00 or over. 

In British Columbia eMcution- airainst f;r»ods issue forthwith aftei 
judgment in the Suj.reme Court, and have priority from the time thev are 
delivered to the shTiff. 

Chap. -20 of 1!»0S eim.snlidates and amends the former .\ets on Judg- 
ment. Inimediatfdy ujion any judgment for $1(I0 ,,r more froiu the 
County or Supreme Court being recovi'ivd. a certificate of snidi judgment. 
duly sipi(<l atid sealed by file court otlicial. may be re;ri-tered in anv or all 
the land reir'-^ii'v offices in the I'mvinee. and from the time of -neh rciris- 
tration, bind all the Ian. Is ,,f the judirment debtor in stich districts, and the 
judgtiu'ni creMiioi- may, if be \vis|i, proceed at once under such lien. 

Such lien shall cea-e in two years after i-eiri-lrtition, unless renewed 
before the two yetirs expire. 

Fee t'ev reiii-tei'inL;' a certitieate of jndirinent is .-^-.'.OO, for n iiewal 
$1.0((, and for cancellatien r>Or. 

.Tinltrments recoven .1 under the Creditnr-' Keliif .\ct may be registered 
in same way asxainst land. 

^fon( V realii'eil under this Act -ludl b" defined to be innnev levied 
iJTidi r I -e.-iitien within the mcatiinL' of the Creditev-' Relief Act. 

In Quebec eNccntion-. b .tb aL'ain-^t m,u,ls and lands cannot isone sooner 
tlmn fifteen days ,'ifter jmlizment. except in >■:[-'■- whe'-.. .■iitnchtnent is per- 

Executions acaiu-f movable- are under the cnntfol ef Ceuri buliffs, 
widb those iiirain-l iimnovalde-. ai-e under tIc (■•tifriil ef slicriflFs. 

In New Brunswick, Nova Scotia and Prince Edward Island, 

executions from the Conntv CiPiirt nniy i--m' ten da\'s after judirment, and 
in the Supreme Court, tnay issue forthwith, unless an ap]ieal i- pending, 
nnd any time thereafter for twenty years. They bind uoods and (diattels 
of the debtor from the time they arc driven t<i the -lierifT asainst all per-ms 
except hnnn-fdr purchasers, and reiiiain iu force one year, but may be 
renewed Itefore the year expires. 

In Newfoundland in thi' District Courts executions may issue inune- 
diafih- after iudL'un nt : in Supreme Court, in cases for payment of money 
np recovery of bind, may issue furfbwiil;, but in all other cases in 14 days. 
'^fI!sf 1x1 renewed cverv vear. 


;iiiii>. ho cnii- 

ilir friini the 

889 Executions Binding Lands. 

In nil the Provinces i:vwini(.ns may l)ind tho lands nf tlip jiulijmcnt 
<ii!«t..r. Kxt'eutioii.s fmm t!io Imvor courls issued against fjood.i only cannot 
be filed against lands until an atiinipt to reoovor against the goods has failed, 
and the fxccution Ikmh rrtiirned marked " Xo iroods." 

Excetitions fmni the liiglicr courts in all the J'mviuct s bin.! h.iili jiofxls 
aii<l lands, but the slurifT cannot proceed again-t the lands until thi; delav 
fixrd bv statute in i uch Province has expired; init if tiie di!'l i- not paid 
bv ihiit time lii> may then coumience proceedings to sell thr land. It" there 
be a inortgagr on th,' land he can sell the mortgagor's e(]uity in the lands: 
but if tlure are twn nr more murfgages registered airain-t tin 
not then sell the mortgagor's <(iniiy until lie ha- i.Ktaim'rl an 
Court i.f Chancery. 

In Ontario .ill executions issued U-om the Ci)unt\- ami !iii;li ('oiu-i- 

^'t't'l bntli <;■ U and lands from the <hit.' of ildivcrv of cxeeutiijn to the 

sh' rifT. I. ami. however, canm.t !.c ~ .Id lK't' ..n^' year fn>m lime the '.vrit 
is delivered to the sheriff. In the Divisi.m C.uirt, i.x,.cution-i ,,f .•ftKi.OU and 
upward nmy issue directed to the sheriff, in which cas:' they al<o biml 1 -nds 
of the debtor the ~ame as th..-r ft-,. in llir IliL;li ami Conntv ^'nurt-;. Divi-iMU 
C-ourt judgments of $}(>.(io ami upward- in .-a-c- -li, cxceiitinn has 
been returned marked " .\.i ho.hIs." and all i-nin- frmi the County and 
llisrh Courts may l)e recordrd in the [.and Tiths Oiliee. the <ami' a-' other 
instruments affecting land. 

The Act says the sheriff shall not send certificates of exectition to the 
Land Titles Ol!'ce unhss upon v,-ritten nquest of the plaintiff ..p hi'^ solicitor. 
Lands against whi(di an execution l;a- '.reu t-.corded cannot ho sold until 
on,' ynar after ih.' wi'it ..f exiculiou has bei-n tiled, and thi n only by uivim; 
three immth-' notice ,.f <ali'. Th(>-e entries in the Land Title-; OfTice must 
be reiH'wei] oi'cry four years in oriler to continue to iiinil the land. 

In British Columbia jndiinieuts re'jri-tered in anv r-'nri.;trati .n dis- 
trict, that Reijistrar i- rM|iiin'd t., fnrwaid notice in writini;- to all other 
LJdistrars in the Province, and from the delivery of -nch, notii'.. the jud;:- 
nicnt binds all the property of the judirment debtor in th.e P ■ovince. Prioritv 
of registration creates priority of .•1aim. To he l:e,,t ^o.mI thev mii-- be 
renewed every two vetirs. 

\A hen an n^'^iaiiinent or eancellat'oii of a ji'd'rinnut i- rcQ-isti'red, notice 
is also sftit by the Registrar to all the other ReL'istrnrs of the Province. 
Fee for rciristerinu' a certificate of judcment is $-2.00. a?id for a cancellation 

In Manitoba lands are l),.imd l.v the registration of a certificate of 
ju<l<rment frotn the King's P.ench ( •(,nrt. in the registration district in which 
the land is situate. .\ certificate ,,f judgment tnav be re.tiste.-ed in all the 
■Registry Offici-s an.i L md Titles Ofllces- in th.e Province, and bind all the. 
lands of the debtor from the time of such r^'gistratiou except those exempt 
from seizure. Certificates not renrislered in a Land Titles Office do not 
bind the lands re>rist,>re,] un-'er the Real Property Ac'. Tlf y tniist be re- 
newed every two years. 

Executions is-urd t'l-ntn ihc^ C'.uutv Court t'oi- a sum oxn.i-^.'iiv^' ft-iO.OO 
may he r( corded in the Land Titles OfTicc. Thi\v must hr- renrweil everv 
two years. 


srlTs AMI .\TTA< IIMK.N rs. 

ExecMitinii.-; friim tlic CiMinlv Cmn may Ix' oxchanired for a King's 
13i neb ixiciuii'ii Mt'UT liciiiir ri'iiii'iicd ii> imculli ciible liv ilu ('diiiiiv ('mnt 
BiiilifT. .'IIpI thru iiiMx- 1h- rcL'i-^li'rci] .-iiraiii-t the l;iii(i. 

In Alberta. Yukon iind the North-West Territories if ii-' 
k'ss iliaii li^.^d.ttd rciiiaiii iiii|.Miil "ii ilu- jiKimiiciit, a writ may he i-~ii(i| 
afrain^t tlic lands of the dri)ror. Tlu y liiiid fn'iii tiic time i.f tlio roocipt 
of the writ hv the SlifritV, init ilir l;iiid rnmi.'i lir -..1,| wiihin |r-- iIliu 
twclvp months thfri'aftii'. 

'1 ' (■ writ ai;;iiii-i land- ihii-l ipii lie cxccnic d I'll'mc die cxcculinn aL';aiii-t 
gi^ods ha- lii-iMi rriiiniid marked nulla honu in \vlii>io or in |'ari. 

In Saskatchewan a writ 'd cxiHMition in tho hand- of ihi' .-hcriiT does 
nnt hind the hind- until drlivrrcil to tlio registrar. To be kept in force 
thi \\v\f niii-i 111 r( nrwi'd cvrry two years. 

In Nova Scotia jiidirment-: fi'om ihe Sni^reme , nd Countv Court 
may he reeorch'd a<;ain-i land-, anil c-xeeution may issue any time within 
six yeai-s without .-m ordi r fi'om the court. 

In New Brunswick a memorial of iudirmeiit i--ueil fi-oin thi Supreme 
or I'oinity (,'ourt when rej,dstore(l hind> the lainls of iju. (h'htor in that 
county. They must he renewed every ti\-e years in ln' kept in force. 

In Prince Edward Island juiliiiMents is-uin^' from the Supreme 
Court hind lands of the judirim lit (jehtor from liino of entry of jmlginent, 
providin-r a minute of judi;nieni lia> luen iiie,| with liie Prothouotary. 
but laiid> cannot !«• sold until six monihs' notice of sale has been advertised 
by the .'^lieritl. .^^iiiireme Court exi'cutions may i^sue any time within ten 
years, hut after tin or the death of either party, jiidLrment must bo 

892 Judgment Summons. 

In ea-i there i- not properjy f,,und with which to satisfy tho jude-meiif 
claim, Uio-t of tiie I'lMxince- [permit I in- creditor in suits before the small 
<lciits or inferior courts to have the debtor summoned btfore the court to 
be examined on oath as to the dis|lo^itio^l ho may have made of his property. 
Every su<di summon- -honld be obeyed, for the person not makitiir his ap- 
])earance, at -lidi time a- directed in hi- >umnions, before the eouit, mav 
he im|il'i-oned for unilcli. jit nf fmrt. 

After -uch hearing in'fore the Judge, the latter may order a weekly 
or monthly jiayment, and if the sum is not jiaid the dehtor may be im- 
prisoned for coiiteiupt of court. If cireumst.aneps slioidd arise afterwards 
by which this amount cannot he paid, tile debtor should g<i to a lawver and 
have a statement pri pin d to bring the matter before the .ludge to have his 
first order set asiile or changed. 

Generally no other jmlgmeiit will be enforced against a debtor while he 
is jiaying off in this way one judgment. 

The judgnidit (lebtor hnn<r summoned to ajipear before the .Judge to 
be examined is like any ..tin r u iim--. and if he demand- it. mii>t be paid botli 
mileage and his day's fees. 

In Ontario judgnKiit summons only issue out of the l)ivision Court; 
co?t of summons and hearing the case is $2..">0. 

Tfio Fvivi-iru! Court .\ct nro-vid.'^^ tbut Iti ."O-r- .".f ^irifffT^rrns -.-.-V.f^r^i fVo 

EXt-Ml'TIONS li;iiM -1 l/.i irK. 


principa! ■•» iuterest is sued fur iu the l>i\ijion C'uuii thr ii!.l<:iiu'iit sum- 
mons proc'pss canui't lir irnokcil. 

Till' Ontario Aci is I'ln-tliiT .nm nilnl liy fakinc: frmii ili«- Imlirc the 
aiillioritv to (Niiiimit to sraol for ii"ii iniviucni of the ~uiii orilorcij to lio [>aiil 
altoirctliiT, or by iiistalliiicrit.-, if ii can be sImw . that <ucL jKivnic nts would 
liuvi' deprived the ih-htor or his family of ihi- means of livinir. The Act 
now virtu. diy ailows eonimiimi'iii to traoj "iily in ea-c-- whire iln re is some 
element of fraud, rommiimenr mav ihi'ii !«• in dav-, in-icad of ;!0, 
as previoii-Iy limitid. 

Quebec. Prince Edward Island, Alberta, Saskatchewan, Yukon 
and North-West Territories do noi n.-e tlie judgjiient summons pr'>oe?s 
exeej)t for examination. 

Ill ^faiiitolia the limit of imprisonment is 40 days. 

In all till' Trovineo and in e\rry vr.w the .Iiid^-e ha- power lo eoui- 
niit to prison a:iy debtor (or e\i'n a witness) udio refuses t(j answer the 
questions, or to f>ro(hipe papers and books required by the court, or for a 
fraudulent dis]iositi,,u df his goods. 

894 Exemptions From Seizure. 

Exi.Mi'Tio.Ns FHo.M >Si:i/.ini:. All the Provinces reserve a reasonable 
amount of property exempt from seizure under any execution, auil distress 
by mortgage for ari'ears of inierest, and from landlonrs warrant in some 
of the Provinces. 

Where the debtor has more of any kind of [iroperty or article.- than 
are exempt lie is entitled to niake ch.iici- of the ]iart he wi-hes to retain. 
The bailiff or officer making the seizure has no legal authority to interfere 
in the selection. 

.Ml the chattels so exempt from seizure as against a debtor, after his 
death, or in ca-o hi' -h"\dd ab-coud. b avinj: bi:~ family behind, the wiilow, 
or family, sboubl (here Im> no widow, are entiile<l to. 

Tenants in sipiiuir a lease for projierty shoubl lx» careful that it docs 
not contain an agrei-mi nt to waive their right to the exemptions the Statutes 
reserve frotn seizur<', in those Provinces which allow such exemptions. 

In Ontario the tollov.iug chaiicls ai'e exempt from .-.ei/.iire under any 
writ, or for any distre,-.- by lauilloril, or natrtgagee for arrears of interest or 
for landlord's tax : 

1. The beil, bcclding and bedsteads, including a craillc, in ordinary 
use bv the debtor and his family. 

■2. The necessary and ordinary wearing apparel of the dei '"r and 
his faiidly. 

.1. One ciiMking stove with pipes and furnishings, one other heating 
stove with pipes, one crane and its appendages, one pair of andirons, one 
set of cooking utensils, one pair rif ti^ings, one shovel, one coal scuttle, one 
lamp, one table. si.\ chairs, one wa-listand with furiushings. six towels, one 
looking glass, one hair brush, one cond), one bureau, one clothes jtress, one 
clock, one carpet, one cupboard, one broom, twelve kiuves, twelve forks, 
twelve plates, twidve teacups, twelve saucers, one sugar basin, niie milk 
jug, one teapot, twelve spoons, two pails, one washtid), one scrubbing brush, 
one lilackiiiET brtish, one wash hoard, three snuHithinir iriuis. all spinning 

'tit- \% til * It 

in dv'nieStiC U?0, out.- :-t-VN"irii: 


SriT.S .\M> AriA( IIMI.NTS, 

lueiil-i. lliirty vnliiiiies of books, one axe, oiu' saw, out' f,'tin. six traps ami 
siu-h lishiiig lilts us air in conuiioii use. Tlic artit-lcs in tlii^ MilMlivi^ioii 
not {'xecoiliii^r in value $1.">(».(M). 

4. All nw'cssary fuel, incut, tisL, an.; vtyctaMo uctiiallv jn-o- 
yidod for family uso, nut more than siitHci'tit fur ilic dchtor and hi- family 
tor thirty days and not cxceediii}; in \aiiic ihc sum of $4(1.00. 

r>. One cow, .^ix slufp, four hojjs and twclvi' liens, in all not cxccdini:- 
in value $100. oo, and f.M.d therefor for thirty days, and •>;■.{■ dorr. 

<i. Tools and iniiiiciiiciii- i.t. i.r chaiiil- (.?i!iiKiriiy ii<i'.| in ilic diii;. r's 
occupation to the value of $100.00. 

7. Bees reared and kept in hives to the extiiii of lift, ,n iiivis. 

The dehtor may. in iiin of keepinji the tools and impienicnfs men-' 
tioned in Seetion (i, eh rt u, rireive the jiroefeds of their sale in eash up 
to $100.(H», in wliieh case the otlicer exeeufiiu;- tin- writ would pav over 
to the dehtor $100.00 if fxt.mU sold for thai niucli, and -hi m'.!..iii! 
the creditor could not seize. 

.Verne of the artiides enumerateil in -tilwrctioii- ?,. |. .", i! aii 1 7 are 
exempt from seizure in satisfaction ..f a ■!( lit .■i.uii'art. d fur that iilcntical 

l*'r'r tenant- riming Ijv the uioiiiji -.r •■ M..iiiiil\- 'I'manl." 
In Manitoba the followinj; articles are exempt from seizure \iteler aa 
PX(>cutinii or for arrears of intere-t or principal upon a mortiraire, imt not 
ajrainst distress for rent: 

(a) The heil and lieddiiiir in ei.iiimon use for the debtor and his 
family, and al'^o his househobi furni-hin;:-. not e\ce(><!inQ: in value $.">no.00. 

{/') Tbe neiMxary and urdiniiry wviriim- appimi ..f ibr ild.ti.r and 
his family. 

(f) Twelve volumes i^' b'^ks. tbe b(>-)ks ..f a pr('fe,--iiiial man. one 
axe, one saw, one irun. six trap-. 

(d) The neees-.:ary food for tb^ ibbtui- ai d hi- family for nine 
months if smdi food is in ))osscs-ion at liine of si-izuie. 

(e) Six cows, three oxen iir three bor^is nr mules over fotir vears 
of aec. leu -heep, ten pijrs. fifty fowls, and foo;] for the same for eleven 
month.-. The horses to be exi lupt must be such as are tised by ilu' debtor 
in earninc bis Hviu.:. 

(f) The toils, airricultural implements ami necessaries used bv tho 
debtor in tbe practice (.f his trade, jirofes-ion or occupation to the vahie 

of $ 

(fj) The articles and furniture recessary to the performance of re- 
licrious service. 

(h) Tile land upon wlii(di the debtor or hi- familv actuallv resides 
or etiltivates, either wbidly or in part, or which b' u-e- for irrazinsr or 
other purposes, to the extent of 100 acres. 

(i) Tbe hou^e. barns, stables and fences ,.u the debtor's farm. 

( j) .Ml tbe neeessarA" seeds of variotis varieties, or roots, for the 
prf'per scclin;; and cultivation of <'ii;hly acres. 

(^1 Tbe aetnal residi'tice or home of anv person other than a farmer, 
providing the same does not exeeeil th(^ value of .$l.."i00.nn. If it is worth 
more it may be sold providiuGr $1,500.00 out of the jiroeeeds is paid over 
t<. tbo debtor. 

K.\I.M}'1 UiNS ll;ii\I M l/.LUK. 


ll''ll I III' I'XCC: S 

'lllv i- ~lllljc'Ct tl 

Xotif ul tliu prujKitv ill ibis liii i.s i'.\tiii|it if tlic di'lit i> fur ilic s.itne 

Th" (•\r-inpti..n- du uui huKl aguiutit dcljt- linr niiinicip;ilitii^ for Mud 

Kvirv agrffinciit, cvin in wrilinji- and iiiid( i- - al. wln-ri liv a |m i'-,,u 
waivfs (ir abandons bis right or iirivib'gc <.f i xcuintiou, i,- ab.M.luh Iv null 
and void by Statute. 

Orowint: crops fniinof l,o scizid and >old until thoy avp bar\ested. 
In British Columbia ilir toljowiu'; pi-oi)erty is t.Ncnipt from seizure 
under an ixirution (,r distnss for arrears of intcri-st or priiicii)al "U a 
inorii:,!-- on ibe ivai property, but not for a distress for rent: 

I'lie lioinestead so reirislered. aeeordinir to tbe law- ..f th,. I'n.vinee, 
if not exeeedinij in value $2,:.(in.(Hi. j. abs'olulely cxeiupt fnuu xi/.iiri or 
sale by any process at law or equity. 

1 1 it 1 \'i id- ill \ aliK .'fL'..")(Mi.iiii lb 
eeizure and sale. 

Per-^onal pro|„.rty 'o ili,^ \aliir' .if .-S.Min.iio i.. rxiinpt. N'one ..f Mieh 
property is exempt if the debt wa- eontrai'ted for thai identieal article. 

1 be fee lor tbe rey:i>tration of land a- a ••honied, ad" is $."..00. Tbis 

'I'"- ""' illellld.' till' r.-iMi-rill:;' of the title. liUt -illie!;. ibo llo|,i(-lrad. 

In ^ Alberta, Saskatchewan and the North-West Territories 

the toll,..,ni.^ proprrty i- exeuipt i'n.iu -lizure uiidrr wril^ of cxeiMilion, or 
tor arn.'iiv ,,i iiitcrc-l or principal due upon inortiraires : 

1. 'I ho iMci -~arv and (U'diuarv .-lolbin./ of the debtor ami lii- family. 

-• '1"- furuiiiiiv and boUMhold fu rni -hiiii;'- lieloii:riiiir to the <lebtr>r 
and lii> family to the value of !!;.■,( hi.i hi. 

.".. The iieei— -ary fo,,d for i h. d( h ndaiitV- family durlnt: six nioutlis, 
whicb may include •irain and Hour, oi' vep'table-; and meat, either pre- 
pared for use oi on fo, it. 

-t. Six cows, tbreo oxiii, bor~e- or iiiiiles. or aii\- lliree 'if them, six 
sheep, three jii-s, and fifty d,.inestic fowls, besides the animals tbe detend- 
aiit may have idioM.u to ki ep for food ]iiirposes, and food for the j-anie for 
the months of Xoveniber. 1 lereniber, .ra:iuary, Fobniary. Marcdi and .Vjiril, 
or for sneb o*' those iiionihs as may f.^llow the .late ..f -. iziir.', pr.ivi.linj? 
such seizure br uuele hetwe.ti the U\ of Aiifru^r and the ;;Otb da\ ..f April 
next ensiiint:. 

.'". 111. hiirne-s mce—ary tor thr.-e aniiiial>, on. wa;;..ii ..r two carts, 
ouc mower or cradle ami >cyth.'. .ne breakieir pl.w, ..n.' cr. --^ i.|..w, ..iie 
set harrows, one b..rse rake, one s.^vinj: machine, on.' reajM-r ..r Idii.l.r. 
set sleigh- ami .iiie -ee.l .Irill. 

f). Th.' ii.ioks of a professional man. 

"• I 111' I'"'!- :nid nei'es>arv instriiiiK nts u-e.! by the .lefeii.Iaut in ibe 
jiractice of his tra.le or pr.ifession to tbe value of .$l'0().()0. 

8. Seed prain siiffhdent to seed all his land under cultivation, not 
pxerediTig 80 acres at the rate of two bushels per aero, defendant to have 
choice of seed, and f.uirteen bushel- nf p-.tatoes. 

!'. The homest":',.! ..f the dof.iii.lant. pr.i\ii|cd tb.' -.■ime lie not more 
than ]('<'0 acres: in case it be m.ire. the -iirplus may be subiici to any 
jiCii ur t iicumbrancc tbcrron. 


ailTS AM) Al 1A( I1MENT8. 

in. 'I'll, li,,|i-.c luhl l.iiil.liiifrs .Kriipif.l l.v ill,. (Icli.ii.liiiit .111,1 jiN', ihe 
lot or lots oti which tlu' same arc situate t,) iho cxtt-nt of .id, .".00.00. 

Xo article is o.xenipt fr.nn seizure, except for the fuo.l, cl,)thiii<r and 
hei'.linp of the (iefeiid^iiit ami his family, if th,. iKht is for that sneciiic 


In the Yukon Territory lii,. (■,.ll.,uiiiM; ^r,„„|s are exemi't frmii 
pei/iirc iiiiilir an execution. ,,r f,,r arrears of interest or principal npon a 
jnortga-;!'. notwitlistaiidinf; any ajrreeiucnt in the inortirn^re t,) the mtitrary: 

1. The necessary and ordinary cloihinjr ,'t' the ,i, iii,.r ami hi:- t':uni[v. 

•2. Fiirnilure, hoii>eh,>l,l fiirni-hiiii;-. , lairs iii,ii.-il-, -win,. :iihI |h,iiIii"-v 
t,, ihe extent of $,"iOO. 

:]. The iieces~ary f,>o.l f.r ih,. t'ainily of the debtor during six months, 
v]n,-h may include grain an,l llnir. ,)r vepetal'les, and moat, eithi-r preiiared 
for food or on foot. 

4. The btwks of a pvnfcssional num. 

">. 'J'he t,M)ls and i,,,','ssary iiii]ileiiient- t,i the extent ,>f .'«.",(ii>, used 
hy the debtor in the practice of jiis trad,' or profession. 

•!. The lens,, aii.l biiihlinfis occujiie,! by the ,l,'l.ior. ami al>,) the lot 
or |m|- Mil uliirh ill,, -am,, are situate, to ihc of .t 1 .."lOO.OO. 

No arlic!,. iiii.iiii,,n,.,l above (excejit foo,l. ..lotliiii^^ and b,.,l,liinr| shall 
be exemjit from siizure if ih,. jinliiment i^ for sin'li articl,.. 

Tlie ex(.mptions ibi ti,>t hold ir.M.d if tlie ,|,l.ior has ab-coiided from 
the Territ.>rv, leaviiiir no wife or family b.hiiid. 

In New Brunswick th,. cxiiiipli..!!.- from >eizure iiii.ler e\,'ciilion are 
th.. f,,ll..wiiij,- 

Th, wt'iinii:.' appaivl. li,..MinL', kit, .Inn iii, hmK. an. I I....U ..f irad,' ,>r 
oallini: lo the value of .$1(10.(1(1. 

In Nova Scotia the followinir ani,'le- arc exemiit from seizure under 
any writ ..f <.\i(.iiti..n : 

1. The uvvf^-:ivy w.ariiiir :i|.|.,.|r,.l. be.l~. li,.d.liiifr ami>t(.a,ls of the 
(h'liiiir and his family. 

i'. One stove ami jdpi's therefor, one crane .tnd its apjn,i;c3, one 
jKiir of andirons, one set .if cookin-r utensils, one ]>air of i,.nu-, -ix knives, 
six fo-ks, six plates, six teacups, six saucers, on,, -liov, 1. ,,m. table, six 
chairs, one milk jnir. one teapot, six sjyoons. one si>innint: whe-d and one 
weaviniT loom, if in .ir.linary domestic ns(>. 10 volumes of reliEions b(X)k3, 
one water Imcket. axe. one saw, ami siudi ti-hiiiir iieN a> ar,. in ,.oiiiin.>ii 
nse, the value of such not to exceed .$'20.00. 

'.]. All necessary fuel, meat. tish. tloin- an,] veir,. tables actuallv jiro- 
vi,li.,l f,>r family nse and not more than satHcient f,,r the ordina-v con- 
sumption of the debtor and his familv for lliirfv davs and not excee.linff 
in value .$40.00. 

4. One cow, two sh(.cp an.l ,pn,' h.>^, and foo,] therefor for thirty 

."). Tools and implements of. ..r i-hadcl^ ordinarilv ined in th,. ,l<.btor's 
occupation to the value of .$30.00. 

None ,if the ariii'le- enniiuralcl in sections 2, .",. 4 and ."> are ex- 
empt from seizure in satisfaction of a debt contracted fi«r that identical 

KXKNri'lloNs Flio.M SKIZrRK. 


In Prince Edward Island tlu' fullMwiiiir arri'li^ aro oxfiiipt from 
eoizurt' under an cxcciiiii.ii : 

1. The neci'Srtary \v(:iriiii: :i|i|,;irrl and l^'d.lii;L' t'.T rli^' drl.tor and liis 

2. 'I'hr t.i.'I- .iH'l inijili III! iit~ cl' trad'' id" thr <lcljtor. 

.'3. One cnok >iiivf, one oow, not i'Xfcciliiii_r in ;dl jjco.oo. 
•1. $1 <;.(>() ill money. 

In Quebec 'lie I'o'lowjni.'- anicles are excmiit from -<'izurt under an 

1. — (1) The i.eil, liiddinij: and hed-toad- in ns(^ by the debtor and 

(•2) The ordinary wearing aii]iarel of the debtor and liin family. 

(0) '1 W(j ~loves and their ])iiie;. one ]>otdiook and its aceessorie.s, one 
pair of andiroii-i, one pair ti>ng.s and one shovel. 

( I I All ((M.kinir Mten.'^ils, knives, forks, spoons and eroekery in use 
liy the faiiiily, two tables, two eujtboards or dressers, one lamji, one mirror, 
one washin,' stand with its toilet acecssori"s. two trunks or valises, two 
carj^ets or tnattinj,' eoverini: the floors, one eloek. one sida and twelve ehairs, 
total not to exceed $.">(».0i). 

(.")) .\ 11 spinniuj^ wheels and weavinir liv>ms intended for domestii) 
use, one axe. one saw, one gun. <ix trajis. such fi>hin<r nets, lines and seines 
aa arc in eomnion use, ,>ne tid), one washinir nuudiine, two pail-, three tlat- 
irons, one blafkinir brush, one sortibliiiii; brnsh, one broom. 

(ti) Fifty volumes of l>ooks, and all drawintrs and [lainlinas executed 
by the clebtor or the menil>ers of his faiinly for their use. 

(7) Fuel and f.".,! sntliei(nt for tin- .lebtor and his family for three 

(8) One span of plow horses, or on<' yoke of oxi^u; one horse, one 
stimmer veliiele and oni^ winti>r vehicle, anil tl;e harness used by a carter 
or driver for earning his livelihood: one e..\,-. two pigs, f.iiir sheep anil the 
wool from such sheej), the eloih mannfactnreil from such wool, and hay 
and other foiMer f.T food for sneh animals, ;ind th(> following agricultural 
itn|deit',ents: One plow, one harrow, one working sleigh, one tumbril, one 
li;iy-eart with its wheels, and the harness neeessarv for farniiuL'' pnqioses. 

fO) Hooks relating to the jmjfession. art or trade of the debtor to the 
value of $200.00. 

ntt") Tools and implements used in trade to the value of $200.00. 

fll ) P.ees to the extent of fifteen hives. 

Thiiurs mentioned in paragra])hs t. o. C, 7. 8, and 10 are not cx- 
empt if tlie stiit is to recover their ]>rice, or when thin- have been given 
in pawn. 

TT. The followitiir are also exempt from seizure under exPcutions or 
attachment for <lebt : 

(1) Consecrated vessels .md thing.- used in the religious worship. 

(2) Family ]>ortraits. 

(X) Tmnioval'.les declared by tin .lonor or testator e.r bv law to be 
exempt, and sums of money and objects ii-iveii or bei|neathed upon the 
condition of ixdng exempt from .seiztire. 



(4 . All JMiat.s. n..ts aii.l ti-liin- la.'kl.- I.<i..iifriii-r lo a ii.-li.TM;aii. ••xo'i-t 
for tli.Mr jMirclia^t j)!-!.-.-, l)iit .•.miiui \»- sci/..,! .•v.n f,.r that Ix-twmi Ist 
May auil 1st Xovfuiber. 

HI. Alsi. the folluwiiif: sularits ami al!i)\vaiic(s «iv (xcniiii fr.mi -ar- 
uishmeiit or soizuri- fur ilclit : '^ 

(1) Aliinony all<.\vaii«s granted liv court or givt-n as aiiiimiiv arc 
cxi'iiipt. c.xfciit for aliiiicniarv dclits. 

(2) Pay ami itcnsioiis uf jn-rsoiis in army ami navy. 

(.'!) Knrnlnifiits and salaries of ((•<•l(■l^ia^ti(•s and ministers of worship. 

(■i) Salary of j)ri>fcssnr!i, tutors and s<dio<d tonchors. 

I\ . Salaries ,,f piililic oliiccrs. ex.'. j.f \h, -r . Miplovcd under ]iro\iiicial 
government, uliidi are seizahle for: 

(1) One-tiftli of iviTy monthly -:il:irv not exceeding $l,()i)i).uo p.r 

(-') ()ne-foiirt!i when- tin' salarv exn, d- $l,(»0().on hut does not ex- 
ceed $2.()0(».()0. 

(;{) One-third where it exceeds $i'.0on.00 per venr. 

V. Salaries of city and t..wn clerks, a-.-essors and other municipal .in- 
jdoyees in same propnrli.m as imcedinp suliseelion 1 V. 

VI. All other salaries and wages are exempt in following iin.porlion,: 

(1) Foiir-tifrhs whi n salary does not exe.-ed .$.•!.()() per dav. 

(2) Three-fourths when eweedina $:;.(»0 l,nt do not exceed *il.()(). 

(3) Twei-thirds when they exceM'el $(!.(>() ihiv. 

\ II. I'.oeiks of aeroiinl. title's ,,f de liis. aiiel eiihi'r jiapers uhd, j,, the 
peisscssion (,f the elebtor. except ele-henture's, promissory neite's. hank note's, 
-ban- ill iMi|,nrations and other instrunxnits j)ayahle to he'arer or order. 

N ill. All pensions grauteel hy Hnane-ial or other institutions, as rc^ 
liriiiL' fiHids or pensions estahli-he'el amemg the emplovecs. 

IX. Feiiir-fiflhs of the salary e.r earnin^'s of incmlie'i-s of the' .orpi'ra- 
tioi'- of |.il,.rs for anel helow the liarUir e,f Qneln'c. 

In Newfoundland the' exemptiieii- Ifoin aiiai'limeiit or e'xii'ution eir 
eii-tre .-:- l,y laudjurel : 

1. Ge>oels of loelgers and Iwiarilers. 

2. The ceimmeen law e'xemptions. as fixtures, wild animals, goods de- 
hvereel to a persem in the way of traele, thintrs in iK'tual n-e. an<l goods 
in custody of the law. 

.1. The tools atid impleiuents of trade, fishin;: skiff e,r punt, the neces- 
sary cooking api)aratns, heel.ling and we aring anpare-l of himself aie! family. 

895 Arbitration 

rhe arleitraiion laws of all the Prnvincrs make full provision for settling 
disputes aii'l differences Ixtwee-n inelivieluals hy arbitration. .;Vs everv busi- 
ness tnnn is familiar with the nmtinc folhwed in arbitrating hctwcui' muni- 
cipalities, and in of cxpreepriating lanel by ce>rporatie,ns anel for public 
use. the following is submitteel for the lieni fit of those who are wi.sf enough 
to try to " keep out of court." or to stop a long and expensive^ trial even after 
it may have start* d. 

Am/ raw may be referred t.i arMtratioH bv the .ludire' with the' consent 
of l;t)(h pnT^ies. 

In case'' of mere accounr, where it is not a (|Ue'stioi, of lnw. the' .Imljrc 



ia .•tnp.m-.rod tu stn,, a casi- nn-l r. f, r it to arbitration without the conBont of 
till' piirtiLM to the uctKin. 

It i8 also proyidtd that the parties may in stating the ntiestions 
of law in the matter in th.. form of a Sp.Hal Va,v for th- omniou of 
he court, and the partws may iMiter into an aKriH-m.'nt in wriiin-r binding 
tbcmsHvcs to aeci pt thi' jmlfrmciit of the court. 

Thr statement ,>{ the special ca,c mu.sf be signed bv the parties nnd filed 
in clerks othce, and copien furnished to the .Iud>ie. 

Such judgment, when nndend. may be ente're.]. an.! execution mav 
issue as in regular suits. Jli, n-naj is aU, allow..]. 

In all cases .,f dispute betvven two or more parties, thov mav agree to 
leave it t<_. arbitration, ami a writing signe.l to that efTca will bind all oon- 
oer.i...l. I he ease may be left to .,n.- arbitrator, or each partv mav appoint 
one and tlio.e two ch.mse a thir.l ..r umpire. If either arbitra'f.,r -houl'l sub- 
sequently refuse to act. or shoubl die, the partv who app.>inte,l bin. mav 
choose another. 

The a-.var.l mii-^t be in writimr, and !„• >igne,l hv ilie arbitral. ,r in.'a..s 
havtwr but one or two or bv a majorif.,) .vhere there ar.. three and such awanl. fjl,..] i„ il„. drrk's oflir-e, will hin.l tli.. -aiiie .as 
a ju.lirment of a Court. 

Doubtbss in the ina.j.-rity ..f .-as, s. if litiirant. w..ul,| slate all the facts 
fairly t.. their solicitor an.l nay him a reas..nable fee for a written opinion 
or coiin_-<l, an-l th.n a.'f up.,,, it, If w.mM '»> ,„nre sntisfactorv even than 
arltif ration. 

83G Agreement to Refer to Arbitration. 

Mpniornruliini of ;iprppmri;t mn.ic this ,lay of |„ ,hp 

year of our Lord oiip tlioiisanrt nltio tuindrpd and . . tL^tween An of ttie 

°' 'n "IP of Provlnop of ' 

orrueatlon). of the first part; nnd C, P.. of the of m'tho Co,: 

°^ ,,., ""[' .f'-"vl'i''> "f (State ocmpallon I. of the s'econ.l part. 

fstnte his 

Wliereas certain disputes and differences" l,avinK'aHsen''beU-epn''ihp''''rartie. 

Vow h ^%'""^"!": '? '••■'?•'• '"^ ««'"<' •" arl.i.ratlnn, as hpreinnfter metlionPd 
nnH ^h^ ,, M r V '', 'I'-'-ehy agreed by and l.etween ihP ..nnlos hereto to rPf»r 
and tl^e portlea hereto do hereby refer, ail matters in difference hMween them In 
respect to (here st.t.. the subject matter in disput- whl,-h is to be referre - to the 
award, order, arbitrament, final end and determin.ition of K P of t'-e 

°; ■ '" "1" County of ond Provinoe of . . npd O U 

"' *"^ „•. • "', ■ ■ V. ;'"""■ ^"""'V "f ni'.! ■ Province of 

^"„ o"f' ui7 "'^''" '^l"'^ ""'' "•''" """"'"'■ ''" 'fat they, the said arbitrator, or anv 
tvo of them, iiiay p-al<,. and pulillsh their award of and 

'■""♦« "f the said referenrp and anard shall be in the discretion o' tho 
ni.l arb.trntors. or anv tno of ,hem, and thev may a- .rd bv hoTtTyZ°\^"^ 
in vhnt nianner the- shall be paid. 

And it is hpreby furtbor acreed the s.-.ld arhitmtors. or anv two of fhem 
may examine the s.-,id n.rties. or either of them, and that the witnesses in t^e 

reference and The s-ul parties, if .y.-Uncd. .h-II 1,„ exn-M, , ,„„.„, „„,h. '„!, ,v,at 

the said parties resnectively shall produc before the said arbitrators all books 
deeds, panprs documenis and writings in -holr. or either of their, custodv po- 
cOTifrol relaHiic tn the rmttovo -.,f^--„.) „„j •>._. •■,.. , ,, ovuj... i.. 

" er or 


corvRioirr — tk-vkk mark — i'atk.nt riuiit. 

other acth. luaiieri and ihlnRi tu suable the aald arbltratori. or any two of ilnm. tu 
nakt tht'lr award. 

And It ia furlliiT aurefd that the said arbllralors. or any two of thnm. may 
proca«d In the luld rt'fcrencp ir pnrd. If eliht-r of the said parties refuse or npglert 
to attend before them, after having received due nottce, and without reasouatle 

And eaih of the said parlies hereto ngrees with the other to stand to, abide by, 
obey, iierform. fiilBI and keep the said award so to be made and published aa 

In wltneHH whereof the parties hereto have hereunto set their hands and seals 
the day and year first above written. 
Slgnd. sealed and delivered, A. B. »!» 

In presence of •-' R- 5* 

X. Y. 

898 Affidavit of Arbitrators. 

l:u r\ U luri' j)rncir<linj; ti) try thi matter of tho arbitration, 
should take and proticrilw to un oath similar to the following before a Justice 
(if tljr Ttace: — 

-1 (A. B.), do swear lor amnn i (luii I "ill wl' and truly 'rv "i'' "natters 
referred to me l>y tin- purilf.-i :iiul a iriic and lmii;irtial award iiiak-' in the premises, 
according to the evidence and my sklU and knowledge So lielp me God." 



900 Canadian Copyright. 

In »;in 1.1.1 .1 (■..p\ ri;:lil .n;iv hr nl.tainr.l liv tlir iiiiili'T .t piililislii-r 
(.f ;iii,v iK.ok. |Heiiire. ilniwiiiiT, ii,:i|i, .■liari. <•!(.. winrli li,,M- f.,r 28 years 
from the ihiii' i-i CMiiyriirht. mid r< ii.wid for 14 years Ity autli«ir. the widcAV 
or childn 11. I'Ik' fee is $1 for rcfristratioii and :>0 cents for a oertificato 
of registration, wliifli i- t'orvarded to the author. Tluio coiiics (if tho 
work must lie forwarded to the I)e|..irtiiicnt of Asrri.'nliiire, oxecpt in rase 
of a painting, scutpturc. etc.. in wlii.h case a written desiM-ipiion will do 
instead of three copies. 

Everv article copyrighted imi-l i'..iil:iiii a tioiicr nf ili pvriuht. Any 

person who inserts such notice wiihoiii haviiifi a copyright is liable tei a 
jxnaltv of $;W0. An infrinirement of a copyrieht incurs a heavy penalty 
and tile confiscation of the works. To scenre a .■oiiyriirlit writ(^ to 

'I'll, Ildiiiirul'li' till Miiiixlrr (if Ai/ri'itlhirr 

(Co}njrli]lil Bmti(h'). Olfnu-a. 

who will forward a copy ..f the- ( 'oi-vri-lit .\ri and full information ?o 
that any person of ordinary intelli<rence inav <lo all ilie c.-.rrespondpnce. 
No jiostaire is rcpiired. as th<- letters go free. 

In Newfoundland ..iily twr. copies are reepiired, and correspondence 

jo ...{,], the (■.,],..!;;!! Serntarv. St.'s. Fee. $1. 



901 Imperial Copyrijfht. 

TLi. Imporinl Cp^MiKht |ir..i.,.tinu is uWiih.i !.■ for ( n» a.^ will 

as for thuM- living in th.- Tnito,! Kingdom, liy socirim .'yriglit in 

Brituui, ih.> owner uoul.l Iiavf i.r.,|.Tti..n in all tlip Hriti.-h Dominions. 

\ iMijivripIit of u work publiHhptl afu-r fhp author's death endiirps for 
42 years alter its first pnblir-ation : -..-d if p„hli(.hi-<l diirinp the lif.tim.' 
of Its author, the copyright I'li.lur.H duiin-r Mi<di imd .-cv.n years 
lonp-r. If tho uiiihor (.houl.l die Ufore the end of the 42 years from' fir^t 
publication it will still la.-'t for tlie full 42 years. 

903 TradK Mark. 

A ,/r,„nil nuirk, Mich as " I'ure Ciuld." whieh a merchant or 
niannfaetPrer uses to distinguish his goo<ls of various fmm those of 
others, may be registered for $:50. There is no limit to its duration. 

UT>T^\^y"/'' """'''' '""'"'*' '^^'''^ '" ""'>■ '"*■"' ''"'■ '""■ '^'"•' "^ ?"""•'*• as 
H.H.n. (Hurdo<.k Bin,,,! l!itt(rs), may be registered for $25. and stands 
for 2,'. years, and rciiewalili' for $20. 

rtidustrial <i.signs, as letter heads, labels, etc.. mav be registere.l f..r 
$r., which secures it exclusively for .5 years, and an cxt.>nsion of .'". years, 
$2. .V cojiy of the .\ct may b«^ obtained from the Mini.-ter of .Sericulture 
(Trmli- M:irk Ilriuicli). 

906 Patent Right. 

Xrarly Mii.v .irii,>l,. ,,r iiKudiiiic th;U i- new and useful may be |iafcntcd. 
l-or ImII nif,,rination write to The Comnnssionfr of Patents. Ottawa 
Canada, who will f,.rward a copy of the Act. 

The fees for the various periods are as follows: 18 years. .$»;o • l--> 
years. $tO; t; years, $20; fee for a further term of 12 v('ar.s $10; fi,r C 
years, $20. Fees for loilginjr a rarcif. $.-, ; f,, reirister a jiidjpnent, $4 ■ to 
register an assiLnnnent. $2: attaching a dis^daimer to a i)atent, $2. 

In Xkwfou.ndl.vm, the fee is $2,-| and the [.crii.d H years. Address 
The Colonial Secretary. 

1 N 1) 1' X 

AbsronJlDB debtors . . • • ■ ■ • 

Wlipn Bouds may be seized ... • »'_'> 
When debtor m;.y be arrested . . . S.l 

Afooptan. .■ of proposition ^•». ^J 

Acc-plaiKo of drafts ^ fw 

Time alloued for • • ■ ' 2li 

Oemral. (lualitled 210. 211 

By company VftOSlS I see drafts) 200-21? 

Negotiation of 

l)is( oiinting ■ • • ' 

I'resenlnient for payment . • ^•'" 


Acconumxlation notes 

Accounts, interest on 

I'olleetinK by suit 

Sale of 

Outlawing of ^'^^ 

Admlnist rator ■ ■ ^l ^ 

/gene", creation of G40h.... 

tleneral and special 
Keal estate agency 

Telegraph C"o 


Agent 8 signature . 

Agreement • ;« 

Not to engage In business l» 

To sell personal property -|»J 

To sell real estate 

To lease 

To arbitrate • • • ' 

To hire, form of "' '• 

Ceneral. form of 

Alien l.abor Act 


H.iMk..;, and banking.— ronMiii/.i/. 
Numerous Important points 

Hefu.sing to pay cheque 


lielat ion to depositor *»' 

Hank note circulation 

Kedemption of notes 







. 87X 














Alteration of notes 

O' cheques "J 



To the wife 

Bills of excliange 

Inliiiui, foreign 

Set of exchange 

Bill of lading 

Transferen< e of 

Bill of sale, form of 

Board of dlredors 

bond for a conveyance 

,ond for payment of money ■'■j 

Breach of lontract °^ 

Breach of trust •'" 

Buying stolen goods • ■ -^^^ 

Carriers „ao 

Change of venue »" 

Changing of wills °" 

Chattel notes 

' battel mortgages, form ot 

I AfTidavits of bona fides 

Registration of ■ . • • 

Uemoval of f,oods covered by 
Causes for taking pos^^.'sslon 
Mortgagees' options at maturity of .i88 

I Rcnev al form of '•'"• -'li 

I Assignmen- of ■ ■ ■ ^" 

Pischarge. form of i^'^- ;,"' 

Costs of foreclosure ''-^ 

Cautions Vso.2')0 

of, forms ''*"„:'. 

, .:!Siv 


Annuities ■ .., 

Application of payment ^'J 


Agr. ■■■menl to refer to 

Arrest of debtor 

Assent, to proposition .... 

Obtained by fraud, or force 
Assignment by insolvent debtor 

Voluntary, forced 

In Ijueliec . 

In Newfoundland ^'^ 

Advertising and registering 

Form of noti<e of 

Filing claims 

Assiptiiuent of accounts ... 

Form of 

Of lien notes 

Of mortgages 


Cheques, use 


.... 871 

. . 33-35 

. . 35, 36 

. 8.52-857 
.856, 857 









. 392, 417 

Assigniiunt of wages ^r' 

Attaclime:.i of goods ^^^.^ 


of goods 
Attac hment of debts 

Aitrtion sales 


Bank drai. 

Ban'.is. and banking 

. . . nzz 
. . . 301 

Incoriioration or ^..^ 

Business of „-', 

Note-bfllders' security •''.'. 

* .., ifi 


Presi ntment of 

Payable to bearer 

To order 

No ftnuls to cov.-r • • ■ 

Certified, forged ''*"■ 

Alteration of 

Crossed, form of 

Circular leiier of credit ... 

Civil partnerships ^" 

Codicil to wills ,■.■•■;„ 

Collection of notes and drafts 

Collection of accounts 

Compromise settlement notes ■ 

Common carriers 

Conditional sales 

wlen registration Is ne<essary 

( hatiginc; venue In 

lletal'-iiig po.ssession 

Ill- e to redeem goods . . 
Notice of sale, form of 
Third parties asking information 532 

Con^^ideration. in contracts '» 

In' I>ai)er Jq^ 

In contracts under seal '•^'j; 

In guaranty ..■_ 

Sufflciem, good, valuable ■'-.'i 

niepal. failure of - 

Consideration for guarantee i''' 




5:; 1 

I S' I ) h; N . 



CoDtrads I'^'^'J 

Gonoral form of 96 

Verbal, written. Implied .. U, 12, in 

IndcT seal 1 ' 

Voiilal)le, illeRal. fraudulent l'.. 17 

In p>«fraint of trade !•' 

Ill restraint of marriage 20 

Against piil)lic policy 18 

Ooslruciiim public justice 21 

Considerat ion in 43 

lte(iuisite.s of binding contract.. 79 

Interpretation of '^'^ 

Tim- for (onipleiing i<l 

Uan-.apes for linach of ",■) 

Central t for buiiding a house 95 

renalty clause for delays o2 

Convevan( ing BSS, 656 

Copyriglit 900, 901 

Creditors' Relief Act H.^s 

Dainaf-'es for breach of contract 85 

Days of gra( e 164 

Uet>ts. (olieclion of S7!> 

As^^innnient of 515 

fliitlawing of 359 

DeedH, u arrant.v 457 

Quit claim 46a 

Trust dei ri. deed of gift 46o 

'I'rtist sale deeds, deed poll 464 

Writing and executing 468 

11' striding nature of title in deed 466 

Regist rai ion of 470 

Inder Tori-ens systeu 459 

Defective title to notes 15" 

Depo.sitors in banks 2;i4 

Deposit receipt 302 

Devise S22 

Devise, valid and invalid S2;! 

Devisee or legatee 822 

Dire( tors '■'''' 

Liabilities of 760 

Distraining for rent 62(i 

Discharge of guarantor 12'i 

Discliarge uf employes 683, 6M 

Discharge of executor 82!' 

Discharge of mortgages 3113, 421 

Disco\inting bills and notes 220 

Distress 620. 633 

Divorce in Canada ''lU 

Double rent 61ii 

Doubling the rent, when 610 

Dout)le liability on lianlv shares 752 

Drafts I see aci eptauees I 200 

Foreign and domestic 201, 202 

.^cteplauce of 208 

Time to ai lept 200 

Time, siglit. demand 215-218 

Dow cr 555 

Drovers' safety transfer cheque 2^8 

Drunkards, contracts of 64 

Due hills, forms of 315-317 

Easements 37:', 

Erasures in documents 76 

Embezzlement 2'.' 

Evi( lion of tenant 612 

Executions 888 

Hinding lands 889 

Executors 825 

Notice to < n dilors 826 

I'owers and liabilities 827 

Distributing the estate 836 

Reniunerati'jn of 830 

Release, form of 831 


Kxcoutors Cvulinutil. 

Pisciiarge of 829 

Trust funds 843 

Kxemptlons from seizure for debt... 894 

I'aiiure of consideration -^ 48 

False pretence ^''.q. 

Farm rent ^97 

On shares ''99 

Fees for protesting 2;i8 

Foreign bills of ex( hange 202 

Forged paper 1^3 

Frauiluleiit contracts 2<J 

Fraudulent conveyances 456 

Fraud, by insolvents 8G4 

Selling goods obtained by 25 

Notes obtained by 1 '2 

Garnishment, i-xemptions for wages. 885 

Good I unsid. -ration 43a 

Gratuitous promises 'It 

tluaranty. of debt H" 

or future purchases 116 

I'erf.irmance of agreements ... 117 

Payment of money 120 

Of machinery 511 

Revocation of 126 

Guaranteeing payn\ent of note 238 

Collection of note 239 

Guarantor, discharge of 125 

Creditor's obligation to 124 

Guarantv and suretyship 107 

Verbal guarantee that binds 109 

Tlial does not bind 110 

Letter of rii oniuiendation 114 

Guarding against Iraud 100 

Form of sw indling note 101 

.Note that is proof again-jt fraud. 102 

Heirs 845 

Holder in due course 207 

Holidavs. bank 262 

llnlcgiaiih v'ills 814 

Illegal consideration 43c 

Insane, Indians 63, 65 

Indemnity but;d 123 

Indorsing paper before delivery .... 175 

Indorsement, purposes of 230 

Forms of 231 

In blank, in full, restrictive.. 232 234 

Snecifie. qualified 230, 243 

Withoiit recourse 236 

or identificaliou 242 

Of guarantee 238 

Wniving protest 240 

Indorsers, implied contract 248 

Relation between 249 

How to hold, discharge of 250 

Inheritance, law s of 845 

Indians, (omracts of 65 

In,iunrtion '"~> 

Inland bill of exchange 2iU 

Innocent holder ror value 207 

Instalment note 189 

Insolvent traders 855 

Voluntary assignments of 856 

Fiu'ced assignment of 857 

Assignee, publii- notice 860, 861 

rriority of claims against 863 

Creditors' Relief Act 858 

Attaching goods of 870 

Arrest of debtor, when 871 

Frauil by 864 

Fraudulent transfers T i5 

Fraudulent Intention of 866 

Aitiou to set aside transfers.... 866 



In<i>!.i'iit tr.iiIt'M — Ciiiil-iiiif I. BUTioN 

Till- ur.patd vendor's i.rlvllcRrs. . ?68 
Valid conveyHiKini and Halia by. . Sf!" 

Insolvent iiaiine.-slilii 7i;t 

Int.risi, l.^nl lalt- S4ii 

Aftir maturity, compound 345 

By •■ niont-y lenders " 347 

Jiy iianks 34,. 

Interpretation of coutraets 80 

Inlostnte. heirs of 833, »ij 

Joint ou ners. joint walls 445 

Joint stock company T2ri 

AdvauiaS''s of incorporation . . . 726 

I'rospectiis. name 727, 73.t 

Ilo-.v to form a company 72S 

AdverlisiiiK in olTiclai Oazette .. 7:!0 

Tile petition or application 733 

Pla< (• of Ijiis'lnc.-i.-; 73() 

Slock book 731 

Provisilonal dirp( tors 742 

Permanent directors 750 

Liability o' directors 760 

Coiumen<cinei;t of hii.=iness 743 

Capital slock, unpaid slock . 741. 747 

Share x\ arranis 74ti 

Calls, vot lug 761 

Limited liability of shareholders. 7.50 

Unlimited liability 775 

Double liability on bank shares. 752 

Transfer of stock 748 

I'se of V ord " Limited " 753 

Penalties if "Limited " is oniittca 

753, 760 

Dividends payable out of profits, 755 
Annual stalemeut to Government. 757 

Books to be kept 758 

Extra-Provincial companies .... 740 
Supplementary letters patent ... 741 

Taxation of con'panl"s 7t)3 

Joint stoi k coii'.panies by registration. 768 
Memoratiilum of n>.^ociation .... 770 
Liability limited to uiuiaid shares 773 
Liability limited by guarantee. . 774 

I'nlimited liability 775 

Artiiles of association 771 

Judgment 887 

When judgments outlaw 35!) 

Judgment summon.s 8!*2 

Landlord and tenant 5t!5 

Lease of real property 566 

\'e! b il. when biuditig 568 

Written, under seal 568 

When to be registered 568 

By minors. Indians, etc 581 

Forms of 595-5i,'i) 

Repairs, v. ho make them 601 

In Qu'bec 602 

Sanitary condition^; 601 

Frozen v.ater pipers 603 

Tenants' privileges 5!>2 

Tenant, damaging property .... 593 

And the ti>x,'s 605 

'lemoving his fixtures 600 

>'oving out b'»fore rent is due 607 

Overhokllng 609 

Uesisting entrance of bailiff. 624 

Rent, vhen payable 580 

When dislralnable 620 

Landlords co.ivenant In lease . . 5S7 

In Quebec 602 

Priority for rent 623 

Landlords guaranty 588 

I-audlord. retaking possession... 612 
Raising the rent 614 

Laii'Unrd .'I'll li'nmt —Ounlui'u- 1. f'^ntos 

.\e.v tenancy, by implhatlon .,, 608 

Ovcrliolding tenant 609 

Doubling rent of 610 

111 Quebec 611 

Noliec> to vacate, sttitut uy .... 615 

l!y landlord 616 

Hy tenant 617 

Not acted i-pon 618 

Distraining for rent, when .... 620 

Distress warrant, form of 632 

liistress on premises 621 

Off premises 621, 629 

Inventory left with tenant.. 633 

Tenant's request for delay 634 

Setoff against rent 635 

Tenant claiming his exemptions. 625 

Fraudulently removinft goods 628 

Penalty for iihgal seizure 630 

Costs allov.ed for distraining .... 636 

i'Jxemptioiis from seizure S94 

Monthly tenant and exemptions . 626 
Seizing cxemptc'd goods, 

boarders' and lodgers' toods. . 627 

Law, divisions of 3, 622 

l.avs of iiiherltnnce 845 

Lease isoe Landlord and Tenant) .. 566 

1-ea-ie under Torrens system 596 

Lease glvi-n prior to mortgage 590 

Legal holidays 2i;2 

Legal tender, money 144 

Legatee, devisee S22 

Letter of credit 305 

Letter of recommendation 114 

Lien notes 191 

Negol iable form of 193 

Assignment of 195 

l.i.n agreements, hire receipts 196 

Lien on articles repaired 805 

Limited partnershi|i 700 

Line fences 4S3 

LiciiiiJators 776 

Lost notes 184 

Mandamus 90 

Marriage, restraint of 20 

Married women's property rights .. 540 

Holding separate estate 542 

Silling and \.llling hcT estate. . . . 547 

Karnii)g.i of 544 

liuebec's special laws 543 

Note by nuuried woman 182 

Not liable for debts for family.. 553 

Husband's liability for wife .... 552 

What she cannot mortgage 549 

Do .er 555 

Order of protect ion 557 

Civil relations toward husband.. 558 
Business relations toward 

husband 559 

Divorce 561 

Hying lnt"state 833, 845 

Mast'T a:;d Servant 670 

Contract for service 671 

Form of agreement 672 

Contrac t with near relatives .... 671 

Alien Labor Act 687 

Disihargc \>ithout notice 683 

Wrongful disc harge 684 

Servant heaving 685 

Master liable' for acts of agent.. 676 

Servant's liability for own acts . . 678 
Master liable to servant for 

Injuries 679 

Servant and holidays 675 




Maitir ard scrva' t— Con'/HtK'/. 

Length of working day 674 

Process for collect Ing wages .... 68C 

Material alterations in notes IHI 

Meehnnics' lien 780 

Mmii of iien 781 

roinblniiig dalnis 78". 

Owner'.s protection TSti 

Rpgi.slration of Hens, time for.. 787 

Form of Hen dalni 7S.S 

Ijindlord iind lii'n 782 

Mort^nK' e and li. n 784 

When liens expire 790 

!1ow disehargi'd 793 

Mode of enforcing lien 79ri 

Priority for wages 792 

.Agreement to waive remedies 

void 79" 

Uemovlng property covered by 

Hen 798 

UaboriTs on piihili' works 799 

Lien on articli s repaired 80.t 

Sale of repaired articles if 

not paid 80."i 

Quebec's Men Act 806 

Form of Hen notice 807 

MerpinK securit ies 130 

Minors, (ontracl.s of 5."> 

In Quebec 5,5 

Notes of 56 

A d. ed by 57 

lUiying luxuries 55 

Ratifying or repudiating con- 
tra. Is 58 

Parents liable for debts of 60 

Parents liable for wrongs of . . . . 61 

Money Lenders' Act 34S 

Mortgages 400 

Form of 400 

Form under Torrens system .... 407 

Sinkini; fund 408 

Securing dear title 401 

Registr.itlon of 402,40,1 

Implied covenants in 404 

Personal covenant in 40." 

T'.Tvmiiit of. when 410 

Disc harge. form of 421. 422 

Assignment, form of 417. 41S 

Transfer by endorsement 419 

I'nder Torrens system 420 

Sale, notice of 423. 424 

Sale by second mortgagee 426 

Ini.'rest, distraining for 4(9 

Pi"paynient of. after five years.. 413 
Noiice of Intention to pay off. ... 411 
Morigagee's ri'medies at maturity ll.'i 
Mortgagee taking possession . . . 427 

Poredosiire of 42:t 

Kquity of redemption 430 

Seizing prrpiTty not mcrtgag'd. 432 

Outlawi; ;: of 361 

Negotiable paper 150 

See promissory notes 151 

See acceptances 200 

See cheques 2.S0 

Negotiation of notes and bills 205 

(Overdue paper 206 

Negotiable li,n notes 102 

Notes of minors 56 

Notii (■ to varate, or quit 615 

Orders, varioi's forms 320 

Outlawing of debts 355-377 

Reviving of 37fi 

• 8CT10X 

Overholding tenant 609 

Parent.V liability for minor children. 60 

I'artner.sbip. dangers of 692, 693 

Limited and general 699, 700 

Commereial and civil 696, 702 

Partnership agn ement 704 

.\rtides of partnerEhip 705 

The firm name 694 

Individual using " t Co." 694 

Registration of partnership .... 706 

Forms for filing 707, 708 

Penalty for neglect to rc;4ister.. 706 
Partners, silent, ostensible, 

actual 696, 699 

General partners 699 

Special or limited partnf-rs 700 

Powers and liabilities of partners. 710 

Parin r selling bis interest 711 

liankrupt(y or death of partner. 714 

Retiring partner 712 

Insolvency of 713 

Dissolution of 715 

Form of agreement for 716 

Registration of 718 

Notice to public 719. 720 

Uusiness after dissolution 721 

Patent rights 906 

Patent right notes 181 

Paying forged cheque 296 

Payments, in money 135 

In property, in notes 136, 137 

Hv forged paper, counterfeit 

in.iiiey 138 

To wtiom 139 

Payment presumed, when 140 

Tender of payment 143 

Appiuation of payment 141 

Compromise payment 142 

Penalty clause in contract 82 

Personal ( ovenant in mortgages .... 405 

Personal property 495 

See sale of 495-500 

See ciiattel mortgage 380 

Place of suit 881, 882 

Plaie of paynu nt 155 

Power of attorney 642 

Prepayment of mortgage 413 

Presenting draft for acceptance .... 208 

Prc'senting dieque for payment 281 

I'res nling notes for payment 221 

Priiu ii)al and agent 640 

When bound by special agent .... 643 

Agent's liabiliiies 643 

Agent's signature is notice 646 

I^romissory notes 151 

Defective title to 153 

Maturity 165 

Maturing on Sunday 165 

Where payable 155 

Alteration ii- 161 

Days of grace 164 

Wtiom to i>ay 139 

Accommodation notes 166 

.Minors, fraii.lnlint, forged .. 

56, 172. 173 

Individual note 175 

.loint and seventl 177 

,Toint note, full form 178 

Partnership note 179 

Surety vs. indorser 171 

Non-negotiable, full form 180 

Chattel, collateral 1S7, 188 

Instalment note 189 



Pn>mi»sory notes— Coniiniieil. mcries 

Note by married noman 1S2 

Lien notes I9M!tfi 

Uost notes isi 

Patent right notes 181 

SwindliiiR note, form of 101 

Note iire\cnling fraud, form of.. 180 
Restricting place of payment ... . 183 

Interest after maturity 185 

Indorser.c. Iiow to hold 250 

Signature by mark 71 

Signature by one who cannot 

rend 72 

Innoient liolder for value 207 

Outlawing of note.s 35f 

Property, personal and real 441 

Rights of use over neighbors.... 443 

Use of i)rivate way 443 

How to prevent perpetual right.. 444 

Joint owners in 445 

Life ownership 447 

Purchaser may limit title 466 

O'vnership by possession 365 

See personal property Sec. 495 

Proposition, and acceptance 33. 34 

By mail, when closed 3!l 

Witliilraual of, when too late ... 42 

Protest, form of 254 

Fees for protesting 258 

Xotice of to endorsers 256 

Noting for protest 257 

By magi- r rale, form for 259 

Real estate, sale of 450 

Agreement to sell or buy 451 

Fraudulent sale of 456 

Conveyances of 457-4ti6 

Widows dower In 555 

Real estate agency 650 

Receipts, various forms 325-336 

For properly held in trust 330 

For pavment of legacy 327 

For interest on mortgage 332 

For money on note 333 

Releases, form of 336-337 

Release of executors 831 

Rent (see Landlord and Tenant! ., 5K,', 

Hesuiuary clause in wills 8LS 

Restriding place of payment in notes. 183 

Revivin.g outlawed debts 376 

Revoking guarantee 126 

Rights among sureties 128 

Right of way or lane 443-444 

Roomers' ;iud lodgers' goods 622 

Sale of book accounts 515 

Sale of personal property 495 

Binding agreement for .sale .... 498 
When verbal agreement binds. . . 500 

Rill of sale, form of 504 

r'onditional sales 525 

Sale on trial 510 

By sample .'■,12 

I'nder guarantee 511 

Of stolen goods 513 

By auction 514 

Sale of real estate 4,-,,) 

S'^'il 14 

Security for bank notes 274 

Selling good.s obtained by fraud .... 25 

Set of exchange 203 

Signature to notes 156 

By agent 157, 646 

By otTi 'er of company 157 

By muik 71 

Signature to notes — Coiifiniml. hicvki.i 

By one who camot read.... 72 

To cont racts "0 

Statute of frauds 26 

Statute of Limitations 356 

Applying to accounts 359 

To notes 356 

Easements 373 

To judgments 360 

To moriKages 361 

To annuities 368 

To legacies, and interest on. 367 

newer and arrears of 369 

To interest and rent 370 

To personal property 372 

To real property 365 

To bonds and agreements 

under seal . . . , 362 

To (battel uiorigage 363 

To ownership by possession. 3R5 

To (■ro'\n lands 373 

Reviving ouilawed debts 376 

l-JxceptKins lo outlawing 377 

Stock book 731 

Stoppage in transitu 520 

Siici ession duties 850 

Suing, entering cases in court . . , 878, 879 

Statement of defence 880 

Surety 171. 107-128 

Swindling note, form of 101 

lux sale deed 464 

Telegraph ( ompanies 657 

Tenant (see I-andlord and Tenant) .. 565 

render of iiayment 143 

Theft or false pretence 28 

Time allowed for a( c eptance of drafts. 209 
Torrens system of lan(;s transfer..., 475 

.Mortgages under 40V 

Transfer of mortgage 420 

I)(>pd under 459 

Lease under 596 

Trade mark 903 

Trustees and trust funds 843 

I'sury by money lenders 348 

Valid and invalid be(iuests 823 

Valuable consideration 43& 

Venue 886 

Change of 882 

Verbal ( out racts H 

V.rbal recommendationa 108 

Warehouse receipts 481 

Water courses 

Wills, form of 81(t, 83S 

Riqiiisiles of valid will 815 

The two witnesses 816 

Wlio may draw wills 814 

Changing of 811 

Codicil to 812 

Codi( II revoking 839 

When wills take effect 820 

Devisee, legatee 822 

Valid and invalid bequests S23 

Probating and registering 821 

Administrator 834 

l-:xecutor (see Executor) 825 

Intestacy 833 

Quebec, three forms of 814 

Widow's dower 555 

Winding Ip Act 765 

Withdrawal of proposition 42 

'Without prejudice." legal force of., 145 
Witnesses to documents 75