Victoriano provided jewelry to Moulic to sell but Moulic was unable to. Moulic issued post-dated checks to Victoriano as security for the jewelry. Victoriano negotiated the checks to State Investment House. When the checks were dishonored due to Moulic withdrawing her funds, State Investment demanded payment from Moulic. Moulic refused, claiming the checks were just security and she received no notice of dishonor. The court ruled in favor of State Investment, stating that since Moulic withdrew her funds, she had no right to expect the checks would clear so notice of dishonor was not required.
Original Description:
Original Title
State Investment House vs Court of Appeals and Moulic
Victoriano provided jewelry to Moulic to sell but Moulic was unable to. Moulic issued post-dated checks to Victoriano as security for the jewelry. Victoriano negotiated the checks to State Investment House. When the checks were dishonored due to Moulic withdrawing her funds, State Investment demanded payment from Moulic. Moulic refused, claiming the checks were just security and she received no notice of dishonor. The court ruled in favor of State Investment, stating that since Moulic withdrew her funds, she had no right to expect the checks would clear so notice of dishonor was not required.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOC, PDF, TXT or read online from Scribd
Victoriano provided jewelry to Moulic to sell but Moulic was unable to. Moulic issued post-dated checks to Victoriano as security for the jewelry. Victoriano negotiated the checks to State Investment House. When the checks were dishonored due to Moulic withdrawing her funds, State Investment demanded payment from Moulic. Moulic refused, claiming the checks were just security and she received no notice of dishonor. The court ruled in favor of State Investment, stating that since Moulic withdrew her funds, she had no right to expect the checks would clear so notice of dishonor was not required.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOC, PDF, TXT or read online from Scribd
State Investment House vs Court of Appeals and Moulic
Negotiable Instruments Law 217 SCRA 32 Notice of Dishonor Corazon Victoriano provided pieces of jewelry to Nora Moulic so that the latter may sell the same. As security for the jewelries, Moulic issued to Victoriano two post dated checks in the aggregate amount of P100,000.00. Moulic was not able to sell the jewelries so she returned the same to Victoriano. Victoriano was however unable to return the checks hence Moulic withdrew all her funds from the bank. Apparently, the checks were negotiated by Victoriano to State Investment House. So when the checks were dishonored, State Investment demanded Moulic to pay. Moulic refused to pay because she said the checks were merely used as security for the jewelry. Moulic further averred that she received no notice of dishonor. ISSUE: Whether or not State Investment House is entitled to be paid. HELD: Yes. The Holder of two checks which were dishonored because the drawer withdrew her funds from the bank can hold the drawer liable even if no notice of dishonor was given to the drawer, since the drawer had no right to expect that the drawee bank would honor the check.
A Simple Guide for Drafting of Conveyances in India : Forms of Conveyances and Instruments executed in the Indian sub-continent along with Notes and Tips