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The Effect of a Seai

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THE EFFECT OF A SEAI. An instrument under seal, though possessing all essen tial features of commercial paper, is not negotiable in the absence of a statute authorizing it. The rule grows out of the fact that by the law merchant the custom was to execute commercial paper without seals, and also that the common law forbade the assignment of sealed instruments, hence the seal is held to indicate an intention that the instrument shall not be negotiated. The rule formerly applied to the paper of a corporation executed under the corporate seal, but the tendency at present is to hold such paper negotiable on the ground that the seal of a corporation does not of itself indicate an intent to execute a specialty. (Tiedeman, Corn. Paper, Sec.

32; Rand v. Dovey, 83 Pa. St., 280.)

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