JOHN MARSHALL (1755-1835) Soldier, statesman, and one of America's greatest chief justices of the Supreme Court. Marshall was appointed to the Supreme Court at a time when the relationship of the written constitution to legislative enactments was being considered by both the strict and loose constructionists. It was during his incumbency as Chief Justice that interpretations by the Supreme Court through its decisions definitely determined the status of the Constitution. "The Constitution since its adoption, owes more to him than to any one single mind for its true interpretation and vindication." In the celebrated case of Marbury versus Madison, Marshall clearly and logically sets right the question of conflict between the Constitution and a legislative enactment: "If a law be in opposition to the Constitution, the court must either decide the case conformably to the law, disregarding the Constitution, or conformably to the Constitution, disregarding the law." Upon this decision rests the authority for the annulment of twenty-one acts of Congress and some two hundred State laws as in conflict with the national Constitution. 186. ACCEPTANCE 1. Kind of Acceptance 2. What an Acceptance Acknowledges 4. Acceptance for Honor 187. LIABILITY OF PARTIES 188. SET OF EXCHANGES 189. TIME 190. NON-ACCEPTANCE OR NON-PAYMENT 191. PROTEST 192. NOTICE 193. QUESTIONS 194. DECISIONS BY THE COURTS 183. Introduction. A draft is the oldest of the many kinds of negotiable instruments, having been used by the Hanseatic B League in making payments for goods. For example, A, of one city, owes B, of another, who in turn owes C, of the former city. In order to save the necessity of transmitting the money between. these two places, B directs A to pay the amount due him to C and thus cancels all the indebtedness between these parties. Again, for example, there is no money due in Chicago from New York or the reverse. The following deals then take place: A, of Chicago, ships 100,000 bushels of wheat at $1.00 a bushel to D, of New York. B, of Chicago, buys $100,000 worth of dry WHEAT CHICAGO MONEY D NEWYORK|| B MONEY BRYGOODS goods from C, of New York. As the deal now stands there is $100,000 due to Chicago from New York and the same amount due from Chicago to New York. By means of a bill of exchange the banks of the two cities are able to settle the accounts without the use of money. B buys at the bank a draft on New York which he mails to C, who sells it to his banker. D buys at the bank a draft on Chicago which he mails to A, who sells it to his banker, and the accounts are again all in balance without the use of any money. 184. Definition. A draft is an order by one person on a second person to pay a certain sum of money to a third person. These parties are respectively known as drawer, drawee, and payee. The draft is frequently designated a Bill of Exchange or simply Exchange. 185. Theory of Draft. The theory of the draft is that the drawer has funds belonging to him in the hands of the drawee, and therefore has the right to direct payment. Drafts are issued payable at sight or a certain time after sight, and are known as sight or time paper. They are also called foreign or inland. Foreign, if the parties are residing in different countries; inland, if they live in the same country or state. A draft drawn in Springfield, Illinois, and payable in Pittsburgh, Pennsylvania, is a foreign instrument. 186. Acceptance. If a draft reads "payable after sight" it is not due and payable until the expiration of the time specified. "At sight" means after seen by the drawee, not after date of issue. Therefore the draft must be presented to the drawee to determine his willingness to pay, and if he refuses, the draft is said to be dishonored. If he is willing to pay when due, he signifies his willingness to do so by writing his acceptance across the face of the draft. He now is held to the same promise as that of the maker of a note. He is under no obligation to accept even though he owes the drawer. After acceptance he is absolutely bound to pay. 1. Kind of Acceptance. The payee or holder of a draft, who presents it to the drawee for acceptance, has a right to an unconditional acceptance. In fact, if he should permit the drawee to give him a qualified acceptance, the act would release the drawer from all liability. To condition the draft in regard to amount, a change in time of payment, or a change in the place of payment, would be sufficient to release the drawer from his usual conditional liabilities; as, "accepted provided I have received sufficient funds"; "accepted provided proceeds of sales of shipment are great enough." 2. What an Acceptance Acknowledges. An acceptance once made acknowledges the genuineness of the drawer's signature, the capacity of the drawer to make the draft, his existence, and his authority to draw for the amount. Also, if the draft was to the payee's order, that the payee is competent to indorse. 3. Quasi Acceptance. There are several somewhat irregular acceptances or conditions that may amount to an acceptance. If the drawee holds the draft for an unreasonable length of time, or refuses to give it up, he is deemed an acceptor. The drawee may desire to attach a conditional acceptance, as when he accepts conditioned upon receipt of sufficient funds. The holder may refuse such acceptance. ``If he receives it he thereby releases those previously liable as they understood that the drawee would give an absolute acceptance. An acceptance may be given directing the holder to some third party for payment. This is not a usual acceptance in this country. The acceptance is called "in case of need," and is given after the paper has been dishonored. Again, an acceptance may be in writing, as in a letter which properly describes the papers. It is an undertaking or promise to accept a draft. 4. Acceptance for Honor. If a bill is presented to the drawee for acceptance and it is dishonored through his refusal to accept it, a friend of some previous party, generally the drawer, may offer to save the credit of the bill by accepting the paper for |