Alteration.- An alteration or change in some material part of a bill or note, by a party to it, makes the paper void as regards all parties except those who assent to the change.

Changing the date of a post-dated check, the addition of another name as maker, erasing "Jr." from a signature, and adding 10 per cent." to a note in which the rate had been originally left out, have been held to be alterations.

Forgery. Of course no one whose name is forged, is liable on an instrument, unless he agrees to consider the signature as his own, or by mistaking the signature to be his own, induces some one to take the paper.

Discharge. — The release of one party to a bill or note usually releases all parties tracing their title through him, because they stand as sureties to him, and a release to a principal debtor is a release to his sureties.

An extension of time for payment granted to the maker or acceptor releases the endorsers and drawer, whose liability have become fixed. The extension of time, however, must be the result of an agreement that is binding on the parties to it. A mere delay in bringing suit on the paper is not sufficient.

But the holder, in his agreement, can reserve his rights against the endorsers and drawer, if their liability is fixed; because, even if the holder should make them pay immediately, they, in turn, could recover the amount so paid of the maker or acceptor, although the extended time for payment had not elapsed.

Payment.

The ac

Any party to a bill or note can pay it. ceptor or maker is ultimately liable of course, unless the paper was

made for the accommodation of the drawer or of an endorser; in which case the accommodated party is ultimately liable.

If an endorser pays the instrument, he can recover of any one of the parties preceding him on the paper the amount so paid.

The person ultimately liable on an instrument is entitled to it when it is paid at or after maturity.

Payment made to the true owner of an instrument is good, if made before maturity, provided the instrument is surrendered; if made after maturity, it is good without surrender of the paper. But if the payment be made to one who is not the true owner, it

would never be good if made before maturity, though after maturity it would be good on a surrender of the paper.

If a judgment in a suit on the bill or note is obtained against the maker or acceptor, the endorsers are not discharged unless the holder has accepted a judgment for less than the face value of the instrument.

Nor would the fact that the acceptor or maker had become a bankrupt release the endorsers.

Limitations of Actions. The rules already stated in regard to the limitation of actions on contracts generally are of course applicable to actions on negotiable paper as well. The only peculiarity is as to the time the cause of action accrues.

In favor of a maker or acceptor the time of limitation will date from the day of the maturity of the note or bill. Paper payable on demand, however, is legally due the moment it is delivered; and the time of limitation accordingly begins with the date of delivery. Drafts payable at sight, it should be remembered, bear grace; and accordingly do not mature until three days after sight. In favor of a drawer or indorser the time of limitation dates from the day on which notice of dishonor is sent to him. If the signature of the maker of a note is witnessed, in this state, and probably in others, the time of limitation is extended to twenty years.

CHAPTER VII.— DEEDS, MORTGAGES AND

LEASES.

DEEDS.

What a Deed Is. Deed is the name given to any written instrument to which a seal is affixed. Commonly, however, it means an instrument for the sale, or more properly conveyance, of real estate. The legal title to real estate cannot be obtained by a purchaser in this country except by a deed signed, sealed, and delivered.

Deeds are usually drawn up after certain forms and contain certain phrases, which are prescribed by long established usage. It is not safe to depart from these forms and phrases. They may seem to be over formal and cumbered with useless repetitions. But they have the great advantage that the exact meaning of the terms used is now known. Attempts to improve their language might lead to serious misunderstandings and perhaps loss of property.

In Canada, and in Georgia, Indiana, Virginia and possibly other states, forms of deeds are prescribed by statute.

The seller, who gives the deed, is called the grantor; and the buyer, to whom it is given, the grantee.

The Usual Form of a Deed. A deed usually begins with a statement of the names and residences of the grantor and grantee, and of the consideration for which the deed is given. This is ordinarily the price paid, either in money or in other things. Sometimes a deed is given not for a price but as a gift. A nominal price, generally one dollar, is inserted usually in such a case; as, for instance, "in consideration of one dollar paid me by the said (name of grantee) and my love and affection," etc. The grantor usually, too, acknowledges the receipt of the price stated as paid by the grantee. This receipt, however, is not conclusive, as is the rest of the instrument; and if the grantor can show that he never received the purchase money, or only a part of it, he can sue the grantee for all that remains unpaid. But this will not invalidate the deed as a

good and binding conveyance of the title to the real estate to the grantee.

Then follow the words of conveyance, "give, grant, bargain, sell and convey," or perhaps other similar words. These are followed by a minute and accurate description of the land. It is also customary to describe the previous deeds through which the grantor traces his title, by naming the parties, and the number and page of the book in which they are recorded at the registry of deeds.

Sometimes, also, conditions are here inserted: for example, that the land is sold on condition that the grantee or any one deriving title through him shall never build a stable on the land, or shall not build within a certain distance of the street. Such conditions are not safe to have in a deed, for, if they are not strictly observed, the grantor or his heirs might enforce a forfeiture of the property. The same object may be secured equally well for the grantor, and with greater justice to the grantee, by inserting, instead of a condition, a provision that if the grantee or any one holding through him, shall not observe a certain condition, the grantor, or his heirs or assigns, shall have a right to enter on the premises and see to it that the condition is observed.

Next comes the habendum clause, so called, beginning, "To have and to hold," and showing the kind of estate to be held by the grantee. The title given by the deed must run to the grantee and his "heirs," otherwise he will not get the full title to the property, or, in legal terms, the fee-simple: i. e., he will not acquire the full power to dispose of it by deed or by will, or in case he dies without disposing of it, it will not go to his heirs. If the title runs to the grantee simply, he will get only an estate for his life in the property.

If the grantor is willing to warrant the title he is giving to the grantee, his covenants of warranty are inserted here, in some similar words to the following: "And I, the said (name of grantor), for myself, my heirs, executors and administrators, do covenant with said (name of grantee) that I am lawfully seized in fee of the aforesaid premises; that they are free from all encumbrances, except (naming any mortgages, judgments, liens, rights of way across the land, etc., if there be any); that I have a good right to sell and convey the same to the said (grantee) as aforesaid; and that I will, and my heirs, executors and administrators shall, warrant and de

fend the said title to the said (grantee), his heirs and assigns forever, against the lawful claims and demands of all persons." This warranty, is, of course, of great advantage to the grantee, both in securing his own title, and in thus enabling him to give a better title to any purchaser from him. For, if he or any other person holding through him, is turned out of the property by reason of the grantor's not having had a good or an unincumbered title, he or they may sue the grantor or his heirs for the damage sustained. Not all deeds, however, contain these covenants of warranty.

A deed always closes with what is called the "in testimonium clause, in similar words to the following: "In witness whereof, I, the said (name of grantor) on the - day of—, in the year—, have hereunto set my hand and seal." If the grantor is married, his wife should also join him in signing the deed, words being inserted in this clause indicating her release of her right of dower; i. e., the right of a widow to a life estate in one-third of the real estate of her husband. Unless she signs the deed, and in some states expressly releases her right of dower in the property, she still has this right in the property conveyed. In states in which there are homestead laws, a deed must also contain her release of this right in accordance with the statutory provisions. If a married woman owns real estate of her own, her husband should join with her in a deed conveying it so as to release his right by the curtesy; i. e., the right of husband to a life interest in all the real estate of his deceased wife.

Different Kinds of Deeds. - Deeds differ according to the purposes of the parties and to the terms of their bargains. The forms in which they are drawn also differ in different localities, though they do not really differ in their substance or effect.

For instance, in the New England States, a deed is usually a deed poll (i.e., a deed executed by one party). Such a deed begins with the words, "Know all men by these presents," and is in form an announcement of the conveyance of the property.

In the other states the deed is usually an indenture, which, as the term is ordinarily used, simply means a deed executed by several parties. It begins "This indenture, made etc.," and though it purports to be executed by all the parties, is really only executed by the grantor. It differs from a deed poll chiefly in that the grantor and grantee are spoken of respectively as the party of the first part and the party of the second part.