none of the privileges and presumptions which belong to promissory notes within the statute, accorded to them by the custom of merchants. 8. Certain privileges are annexed to bank-bills, bills of exchange, checks, and promissory notes within the statute, which do not belong to any other unsealed instruments. They are presumed to be founded upon a valuable consideration between the original parties, whether the words "value received" appear upon the face of the paper or not. In an action between the original parties, the defendant may allege a want of consideration in his answer; and if he establish a want of consideration on the trial, judgment will be rendered for the defendant. Generally, when the paper has passed into the hands of a third party, the presumption of a valuable consideration between the original parties becomes absolute and cannot be rebutted. The indorsement of commercial paper within the statute is presumed to be founded upon a val uable consideration. This presumption may be rebutted between the indorser and his immediate indorsee. Generally, when this paper has passed beyond the indorsee, the presumption that it was indorsed for a valuable consideration becomes absolute. What as promissory notes not within the statute? To what are promissory notes not within the statute not entitled? 8. To what are certain privileges annexed which do not belong to any other unsealed instruments? Upon what are they presumed to be founded? In an action between the original parties, what may the defendant allege in his answer? If the defendant establish his allegation on the trial, for whom must judgment be rendered? What is the general rule as to the presumption of value between the original parties, when the promissory note has passed into the hands of third parties? What is the presumption as to the indorsement of commercial paper within the statute? Between what parties may this presumption be rebutted? What is the general rule when such paper has passed beyond the in dorsee? CHAPTER XCIII. NEGOTIABILITY OF COMMERCIAL PAPER. 1. COMMERCIAL paper is divided into two classes-negotiable and non-negotiable. Negotiable commercial paper is that which may be freely transferred from one owner to another, so as to pass the right of action to the holder, without being subject to any set-offs, or legal or equitable defences existing between the original parties, if transferred for a valuable consideration before maturity, and received without notice of any defect therein. Nonnegotiable commercial paper is that which is made payable to the payee therein named. It may be passed from one owner to another by assignment, or by indorsement, but it passes subject to all set-offs and legal or equitable defences existing between the original parties. Negotiable paper is made payable to the payee therein named or to his order, or to the payee or bearer, or to bearer; or some similar term is used showing that the maker intends to give the payce authority to transfer it to a third party, free from all set-offs or equitable or legal defences existing between himself and the payee. 2. A set-off is a debt already due to the defendant on the part of the plaintiff, or from the person through whom his title is derived, which defendant claims to have allowed to him in discharge of a part or the whole of the demand made by the plaintiff. Fraud, duress, circumvention, and taking undue advantage, will be a sufficient defence 1. Into what two classes is commercial paper divided? What is negotiable commercial paper? What is non-negotiable commercial paper? How is negotiable paper made payable? 2. What is a set-off? What will be sufficient defences if the action be between the original parties? If the paper be non-negotiable? If if the action is between the original parties. They will be a sufficient defence between the maker and third parties, if the paper be non-negotiable. These defences cannot be set up in an action by a subsequent holder with a perfect title, if the paper be negotiable. If the consideration between the original parties were money made by betting, or if the consideration were usurious, this, by the statutes of the State of New York, would render the paper absolutely void, whether the action be between the original parties or be commenced by a subsequent holder. 3. The title to negotiable paper passes from one owner to another by delivery, if made payable to payee or bearer, or to bearer. It passes by indorsement and delivery, if made payable to payee or order. The title to non-negotiable paper passes by a mere verbal assignment and delivery, or by indorsement and delivery. In a promissory note there are two original parties-the maker and the payee. The obligation of the maker is absolute, and continues until the note is p esumed to have been paid under the Statute of Limitations. The maker is the primary debtor. In a bill of exchange there are three parties, the drawer, the drawee, and the payee. When the drawee accepts the bill, he becomes the primary debtor upon the bill of exchange. 4. If the payee were obliged to enforce the payment of a promissory note within the statute, he would draw his complaint, under the Code, in the following form: the paper be negotiable, and the action is brought by a third party with a perfect title? If the consideration between the original parties were money won by betting, or if the consideration were usurious, what would be the effect by the statute of the State of New York? 3. How does the title to negotiable paper pass from one owner to another? How does the title to non-negotiable paper pass from one owner to another? In a promissory note, who are the original parties? Is the obligation of the maker absolute or conditional? How long does it continue? Who is the primary debtor? How many parties to a bill of exchange? After acceptance, who is the primary debtor? 4. If the payee of a promissory note within the statute were obliged to enforce the payment, what would be the form of the complaint under the Code? SUPREME COURT, City and County of New York. JOHN B. ASTOR against WILLIAM BLAKE. The complaint of the plaintiff shows to this court— I. That the defendant, at the city of New York, on the eighth day of June, 1865, made his promissory note in writing, and delivered the same to plaintiff, of which the following is a copy: “$500. NEW YORK, June 8, 1865. "One month after date, I promise to pay John B. Astor, or order, five hundred dollars, value received. "WILLIAM BLAKE." II. That there is now due to plaintiff thereon from defendant the sum of five hundred dollars, with interest from the eleventh day of July, 1865. Wherefore, plaintiff demands judgment against the defendant for the sum of five hundred dollars, with interest thereon from the 11th day of July, 1865. W. B. WEDGWOOD, Plaintiff's Attorney. City and county of New York, ss. : John B. Astor, the plaintiff above named, being duly sworn, says that the foregoing complaint is true to his own knowledge, except as to those matters therein stated on information and belief, and as to those matters he believes it to be true. Sworn before me, this 11th) day of June, 1865, JOHN FOSTER, Commissioner of Deeds. JOHN B. ASTOR. 5. In every complaint there must be-1. The title; 2. The commencement; 3. The statement of facts constituting a cause of action; 4. The demand for judgment; 5. The verification. The title comprises the name of the court in which the action is brought, the name of the county in which it is to be tried, the name of the plaintiff, and the name of the defendant. The commencement is simply an introduction to the statement of facts. The 5. What must every complaint contain? Of what is the title composed? What is the commencement? How must the facts constituting facts constituting the cause of action must be stated plainly and concisely, without unnecessary repetition. The demand for judgment must necessarily follow from the facts stated. In the subsequent forms we shall omit the title, the commencement, the demand for judgment, and the verification. 6. If the commercial paper be in a foreign language, it may be set forth in the complaint in that language, followed by the translation, preceded by the words “of which the following is a translation." All pleadings under the Code must be in the English language. The translation meets this requirement. Instead of setting forth in the statement of facts constituting the cause of action a copy of the commercial paper, as in the above form, it may be set forth according to its legal effect. Messrs. Field, Noyes, and Bradford, in their book of forms adapted to the Code, set forth the legal effect of the above note, in the statement of facts, in the following language: (Title.) (Commencement.) I. That at the city of New York, on the 8th day of June, 1865, defendant, by his promissory note, promised to pay to the plaintiff, or order, five hundred dollars, one month after date. II. That he has not paid the same. (Demand.) 7. Where the maker of a promissory note makes the same by his agent, duly authorized, that fact must be 'stated in the complaint. If William Blake, by John the cause of action be stated? What must follow the facts stated ? What will be omitted in subsequent forms? 6. If the commercial paper be in a foreign language, how may it be set forth in the complaint? In what language does the Code require all pleadings to be made? Instead of setting forth a copy of the commercial paper in the complaint, in what other way may it be set forth? What is the form of setting forth commercial paper, according to its legal effect, as given by Messrs. Field, Noyes, and Bradford ? 7. If the maker of a promissory note makes the same by his agent, duly authorized, where must that fact appear? If William Blake, by |