Story Case

George Bispham dictated the following note to his stenographer, who copied it on a typewriter:

"$50. January 1, 1915.

I promise to pay to Simon Lang's order the sum of fifty dollars in three months from date.

(Signed) G. B."

This note, which was entirely typewritten including the signature, "G. B.," was delivered to Lang in payment for merchandise. Lang indorsed and delivered it to Prentiss Bishop. On April 15,1915, Bishop brought suit upon the note as a negotiable instrument. The merchandise delivered by Lang was not as he represented, and Bishop desired to be released from the obligation. He maintained that the instrument was not a negotiable note, since it did not contain his signature. Is this correct?

Ruling Court Case. Block Vs. Bell, Volume 1 Moore And Robinson Reports, Page 149

This action was brought by Block against Bell on a note in the following form:

"On demand, I promise to pay A. Block, or bearer, the sum of £15, for value received."

This instrument was not in the handwriting of Bell, and was not signed by him at the bottom. But it was addressed to him in the margin and he had written under the address, "accepted, J. Bell." Bell contended that he was not liable upon this because it was not properly signed by him.

Decision: Before a note becomes operative it must be signed by the maker. However, it is not necessary that the signature should follow the words of promise. Although in the form of an acceptance, this signature was sufficient to secure the adoption of this promise. Lord Lynhurst held that this amounted to a promissory note: the instrument containing a promise to pay, and the signature of the defendant, although in terms of an acceptance, acting as an adoption of that promise by him. Judgment was given for Block.

Ruling Law. Story Case Answer

It is necessary that a negotiable instrument be signed, a bill of exchange by the drawer, a note by the maker. It is not necessary, however, that the signature should follow the words of the promise; a signature placed in any part of the instrument with an intent to sign is sufficient. The name may be printed or typewritten, although it is preferable that it be in the handwriting of the maker, since it will not then be difficult to prove the document. The name should be written in full, although this is not indispensable; the initials or any mark which the party uses to indicate his intention to bind himself will be effectual. The Negotiable Instruments Law provides: "An instrument to be negotiable must conform to the following requirements: (1) It must be in writing and signed by the maker or drawer."

Bispham is liable on the negotiable note in the Story Case.