Question 150. - A gentleman came into the office, by the name of R. Smith. He presented a cheque payable to Smith and Jones. eque was endorsed "Smith and Jones, per R. Smith." Smith has no power to sign for Jones, neither is the firm incorporated. Can Smith draw the money on this cheque legally?

Answer. - The right of Smith to endorse the name of "Smith and Jones" depends on a question of fact. If Smith and Jones are in partnership, as is implied by use of the word "firm" in the question, Smith has the right to endorse "Smith and Jones," and the bank should pay it, if otherwise payable. All that the bank would have to be satisfied with is: Is there a partnership "Smith and Jones" of which the Smith presenting the cheque is a member? Smith need not have endorsed "per R. Smith," although there is no objection to that, as the endorsement would be complete if he simply endorsed "Smith and Jones." Of course if there was no partnership, either general or in respect of the transaction out of which this cheque became payable, no endorsement could be made by Smith without specific authorization. See sub-section 2 of section 132, Bills of Exchange Act.