Bills of Exchange Act (R.S.C., 1985, c. B-4)

Marginal note:When acceptance complete

38. Every contract on a bill, whether it is the drawer’s, the acceptor’s or an endorser’s, is incomplete and revocable until delivery of the instrument in order to give effect thereto, but where an acceptance is written on a bill and the drawee gives notice to, or according to the directions of, the person entitled to the bill that he has accepted it, the acceptance then becomes complete and irrevocable.

Marginal note:Requisites

• 39. (1) As between immediate parties and as regards a remote party, other than a holder in due course, the delivery of a bill

  • (a) in order to be effectual must be made either by or under the authority of the party drawing, accepting or endorsing, as the case may be; or

  • (b) may be shown to have been conditional or for a special purpose only, and not for the purpose of transferring the property in the bill.

• Marginal note:Presumption

  (2) Where the bill is in the hands of a holder in due course, a valid delivery of the bill by all parties prior to him, so as to make them liable to him, is conclusively presumed.

Marginal note:Parting with possession

40. Where a bill is no longer in the possession of a party who has signed it as drawer, acceptor or endorser, a valid and unconditional delivery by him is presumed until the contrary is proved.

Marginal note:Computation of time

41. Where a bill is not payable on demand, three days, called days of grace, are, in every case, where the bill itself does not otherwise provide, added to the time of payment as fixed by the bill, and the bill is due and payable on the last day of grace, but whenever the last day of grace falls on a legal holiday or non-juridical day in the province where any such bill is payable, the day next following, not being a legal holiday or non-juridical day in that province, is the last day of grace.

Marginal note:Non-juridical days

42. In all matters relating to bills of exchange, the following and no other days shall be observed as legal holidays or non-juridical days:

• (a) in all the provinces,

  • (i) Sundays, New Year’s Day, Good Friday, Victoria Day, Canada Day, Labour Day, Remembrance Day and Christmas Day,

  • (ii) the birthday (or the day fixed by proclamation for the celebration of the birthday) of the reigning Sovereign,

  • (iii) any day appointed by proclamation to be observed as a public holiday, or as a day of general prayer or mourning or day of public rejoicing or thanksgiving, throughout Canada, and

  • (iv) the day next following New Year’s Day, Christmas Day and the birthday of the reigning Sovereign (if no other day is fixed by proclamation for the celebration of the birthday) when those days respectively fall on a Sunday;

• (b) in any province, any day appointed by proclamation of the lieutenant governor of the province to be observed as a public holiday, or for a fast or thanksgiving within the province, and any day that is a non-juridical day by virtue of an Act of the legislature of the province; and

• (c) in any city, town, municipality or other organized district, any day appointed to be observed as a civic holiday by resolution of the council, or other authority charged with the administration of the civic or municipal affairs of the city, town, municipality or district.