Marginal note:Transferee to take with equities

14. The endorsee or other transferee of any instrument referred to in section 13 having the words “Given for a patent right” printed or written thereon takes the instrument subject to any defence or set-off in respect of the whole or any part thereof that would have existed between the original parties.

Marginal note:Offence and punishment

15. Every person who issues, sells or transfers, by endorsement or delivery, any instrument referred to in section 13 not having the words “Given for a patent right” printed or written across the face thereof in the manner prescribed by that section, knowing the consideration of that instrument to have consisted, in whole or in part, of the purchase money of a patent right, or of a partial interest, limited geographically or otherwise, in a patent right, is guilty of an indictable offence and liable to imprisonment for any term not exceeding one year, or to such fine, not exceeding two hundred dollars, as the court thinks fit.

Marginal note:Bill of exchange

• 16. (1) A bill of exchange is an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay, on demand or at a fixed or determinable future time, a sum certain in money to or to the order of a specified person or to bearer.

• Marginal note:Non-compliance with requisites

  (2) An instrument that does not comply with the requirements of subsection (1), or that orders any act to be done in addition to the payment of money, is not, except as hereinafter provided, a bill.

• Marginal note:Unconditional order

  (3) An order to pay out of a particular fund is not unconditional within the meaning of this section, except that an unqualified order to pay, coupled with

  • (a) an indication of a particular fund out of which the drawee is to reimburse himself or a particular account to be debited with the amount, or

  • (b) a statement of the transaction that gives rise to the bill,

  is unconditional.

Marginal note:Instrument payable on contingency

• 17. (1) An instrument expressed to be payable on a contingency is not a bill and the happening of the event does not cure the defect.

• Marginal note:Addressed to two or more drawees

  (2) A bill may be addressed to two or more drawees, whether they are partners or not, but an order addressed to two drawees in the alternative, or to two or more drawees in succession, is not a bill.

Marginal note:Payee, drawer or drawee

• 18. (1) A bill may be drawn payable to, or to the order of, the drawer, or it may be drawn payable to, or to the order of, the drawee.

• Marginal note:Two or more payees

  (2) A bill may be made payable to two or more payees jointly, or it may be made payable in the alternative to one of two, or one or some of several payees.

• Marginal note:Holder of office payee

  (3) A bill may be made payable to the holder of an office for the time being.