A bill not signed by the drawer till after the acceptor had become bankrupt, sustained.
Click here to view a pdf copy of this documet : PDF Copy
Bills not signed by the drawer are incomplete deeds, as all other contracts intended to be mutual are, while only subscribed by one of the parties. But as other mutual contracts subscribed by the one become complete, as soon as the other party subscribes; so the bill-contract, subscribed by the acceptor, becomes complete as soon as the drawer adhibits his subscription.
And in general none doubted, but that the drawer might lawfully adhibit his subscription at any time before the bill was produced in the judgment. But the question here was, Whether the drawer could effectually adhibit his subscription after the acceptor was become bankrupt, so as thereupon to compete with prior creditors.
David Dickson, the defender, and conjunct acceptor of the bill pursued for with James Home now bankrupt, and from whom he had a bond of relief, objected, that the drawer had not adhibited his subscription till after the bankruptcy of Home; at which time the drawer could not, by his act, rear up a debt against Home, to compete with his prior creditors, which, before the bankruptcy, was void; and if, through the fault of the drawer, he, Dickson, had thus lost his relief, he could not be liable to the drawer in the debt; which the Lords ‘repelled.’
For as the bill stood upon the act of Home, prior to his bankruptcy, and required a new consent of his to make it effectual, there was nothing in the circumstance of Home's bankruptcy from which Dickson's relief should be lost.
Fol. Dic. v. 3. p. 76. Kilkerran, (Bill of Exchange) No 6. p. 71.
