Accommodation bill or note is one to which the acoommodating party, be he acceptor, drawer, or indorser, has put his name, without consideration, for the purpose of benefiting or accommodating some other party who desires to raise money on it, and is ...
Accommodation bill or note is one to which the acoommodating party, be he acceptor, drawer, or indorser, has put his name, without consideration, for the purpose of benefiting or accommodating some other party who desires to raise money on it, and is to provide for the bill when due.
Such must be executed for the purpose of loaning credit, and incidental benefit to party is insufficient. An accommodating party is one who signs the instrument in any capacity for the purpose of lending his name to another party to it. When the instrument has been taken for value it is due the accommodating party is liable in the capacity in which he has signed even though the taker know3 of the accommodation. As against a bolder in due course and without notice of the accommodation oral proof of the accommodation is not admissible to give the accommodation party the benefit of discharges dependent on his character as such. In other cases the accommodation character may be shown by oral proof.
An accommodating party is not liable to the party accommodated, and if he pays the instrument has a right of recourse on the instrument against such party.
Considering above-mentioned facts, I attempt to study several legal questions of accommodation bill as follows :
I.Preface
II.Definition of Accommodation Bill
III.Function and Character of Accommodation Bill
IV.Defences of Accommodation Bill
(1) Legal Question between the Accommodation Party and the Party Accommodated
(2) Legal Question between the Accommodation Party and the Third Party
ross-Accommodation Bill
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