In computing time it should be remembered that the words of the note or bill are to be strictly followed; as, when it reads a certain number of months, then the time is to be computed in months; for example, omitting days of grace, a note bearing date July 1st, on two months’ time, will be due September 1st. To say that two months are equivalent to sixty days, and then add sixty days to July 1st, we shall have our note due August 30th, which would be erroneous. The same would be true of the reverse of the proposition stated; that is, if time be stated days, it would as certainly lead to error, to compute by months.
When does the time commence to run? If a note, from its date; if a bill, from its date, if it read payable a certain length of time “from date;” but if it reads, as for instance, “at thirty days’ sight,” then it commences on the date of its acceptance by the drawee.
Days of grace, the use of which has sprung from custom into full fledged law in the course of time, must not be forgotten.
Notes and bills, unless in the body thereof it is expressly stated to the contrary, have, added to the time for which they are written, three days, known as days of grace; so that a note given for one month, and dated July 1st, would not fall due August 1st, but August 4th.
Originally these days were intended to inure to the benefit of the maker of the note, but such is not the practice or law now; and that period of three days constitutes a part of the time for which all interests and discounts are computed, the same as the time expressly mentioned. This is one of the characteristics of bills and notes, which commercial students and business apprentices are more apt to carelessly forget than any other in the category.
We have thus far omitted mention of bank checks, a very important business medium. The element of time thrown aside, and the most that we have said regarding notes and bills, may be applied to checks, which in reality are bills or drafts payable at sight without grace.
In case of non-acceptance of a bill when presented, or non-payment of the same, or of note, when due, that the drawer in the first instance and indorsers, if any, in the latter may be holden to its payment, resort is ordinarily had to “protest,” which signifies that acceptance or payment having been legally demanded of parties primarily liable, and refused, notice is given the other parties to the paper, of such refusal, by a notary public, who attaches a certificate to the bill or note, stating fact of such demand and refusal.
This may be avoided in the case of indorsers by their “waiving demand and notice” at the time of indorsement.
In writing commercial paper remember: