title to them passed to him as soon as the field was sown. Is Bright in this view?

4. A sold B a quantity of hemp. The hemp was in a warehouse and B inspected it, cut open one bale, and seemed satisfied as to its quality. After the hemp was delivered and B came to work it, he found that the inside of the bales was of a very inferior quality. B sued A for a breach of warranty, claiming this was a sale by sample. Ought B to recover? 5. A sold B a quantity of rye. Both A and B thought it was spring rye. It proved to be winter rye and B lost his crop. B sued A on an implied warranty. Can he recover?

6. B sold M 98 tons of coal, to be delivered at Burlington, a few mil s down the river, at $4.10 per ton delivered. The barge arrived at Burlington, and tied up to the wharf ready for unloading the following morning. During the night the boat sank. B sued M for the value of the coal. Is he entitled to recover?

7. A sold B a driving horse upon condition that B might try the horse and if he were not satisfied with it he might return it. B kept the horse for 5 days and returned it. Had he the right to do so? What remedy has B if A refuses to accept the horse?

8. A, in Milwaukee, orders goods of B in Chicago, directing him to ship them by Goodrich Transportation Co. They are promptly shipped as directed and upon the ordinary terms, the bill of lading being in the name of A. Does A or B have the risk of loss during transit?

9. A sold a bill of goods to B for $500.00 to be delivered within thirty days. A neglected to ship the goods. At the expiration of the thirty days B bought the goods elsewhere but was obliged to pay $600.00 for them. What remedies has B against A?

10. A sold B a piano on the installment plan, title to remain in A until all of the installments were paid. Three months before the last payment fell due the piano was destroyed by fire. Who must bear the fuss?

1. Must be payable absolutely.

2. The bill must contain certain direction and the note a certain amount.

CHAPTER XIII

NEGOTIABLE INSTRUMENTS

BILLS AND NOTES

157. General considerations. Having discussed the principles of contracts in general, we now take up a class of contracts that are very important in the conduct of modern business. The contracts we are to study now are called negotiable contracts and form a kind of substitute for money, and thus economize the use of currency. A much larger part of the business of today is carried on by means of credit than by cash. The most common negotiable instruments are bills of exchange (foreign and inland), promissory notes, including notes and certificates of deposit by banks, drafts, checks on banks, and bonds of corporations, cities and governments.

158. Negotiable instruments law. In 1895 the Commissioners on Uniformity of Laws, appointed by the American Bar Association, had prepared by a sub-committee a codification of the law relating to Bills and Notes. When completed the draft of the law was submitted to many prominent lawyers and professors and to several English lawyers and judges, with an invitation for suggestions and criticisms. In 1896, at a conference of the Commissioners on Uniformity of Laws, the draft as submitted was adopted. It is known as the Negotiable Instruments Law. It has been adopted in the following states: New York, Connecticut, Florida, Colorado, Maryland, Massachusetts, Virginia, North Carolina, North Dakota, Oregon, Washington, Utah, Wisconsin, Tennessee, Alabama, Arizona, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Michigan, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, Ohio, West Virginia, Wyoming, New Hampshire, Rhode Island, and also the District of Columbia and Hawaii. This act does not in any way revolutionize the old law on the subject, and such changes as were made will be noticed as we proceed.

159. Negotiable and non-negotiable paper. Commercial paper is simply a form of contract-a contract for the payment of money only. There are two kinds of commercial paper, negotiable and non-negotiable. Instruments that are spoken of as "negotiable" are so called because they pass freely from hand to hand, and such transfer is provided for by their terms. In the usual acceptance of the term the assignee (the person to whom it is transferred), received the same rights to collect as the assignor (the person who makes the assignment). It must be borne in mind that if for some reason a note, draft, or bill of exchange, is not negotiable it does not mean that it is not subject to sale, for it still may be transferred by assignment. Negotiable paper simply possesses certain highly valuable qualities which non-negotiable paper does not. One who takes negotiable paper in the regular course of business is largely protected. What these qualities and protections are cannot be stated as an abstract rule. We shall consider them under the following heads:

1. Assignment.

2. Value of assignment.

3. Title.

4. Consideration.

160. Assignment. Rule: Negotiable paper is always assignable either by endorsement and delivery or by delivery.

Non-negotiable paper was not assignable at common law, because the early view was that the contract created a strictly personal obligation between the creditor and debtor.

Rule: Non-negotiable paper and all other contracts for the payment of money are made assignable by statute, so as to enable the assignee to recover in his own name.

Such an assignment must be in writing, signed by the assignor, either on the instrument itself or on a separate paper. No particular form of words is required. It has been held that a mere signing of the name is sufficient to constitute the party to whom it is delivered the absolute owner, with power to fill up the assignment. The following written on the back of a