Cheques, Etc.

Question 212.— A person carries on business under the firm name of " The Quebec Lumber Company," and deposits a declaration to that effect in the prothonotary's office in accordance with law. He uses this name in signing cheques and other documents, but without adding his own name thereto.

Is such a signature valid, and would a bank handling the bills or the parties accepting them, incur any risk?

Answer.—A person carrying on business under a quasi-corporate name, such as the above, binds himself when he signs his trade name, just as though he wrote his own name. The only question involved is one of proof: that is, that the name "the Quebec Lumber Company," was written by the person who carries on business in that name.

But although the signature without any addition is valid, it is to be remembered that in the matter of endorsing items for deposit in other banks, it would be contrary to the " Rules and Conventions respecting Endorsements," which require such an endorsement to bear in addition the name of some person, with an indication of the authority by which he signs. In the absence of this name the bank receiving the cheque would under the rules be entitled to a guarantee of the endorsement.