Father Saturnino Urios University College of Law Negotiable Instruments Law Course Outline Second Semester S.Y. !

"#$ !"% Instructor& 'tty. (endo ). Udarbe I. IN*+O(UC*ION $ Origin of the Negotiable Instruments Law and its a,,licability. Cases& ". Osmena vs. Citiban-. N.'. % / SC+' "01 . 23I 45,ress Card Cor,oration vs. C'. 1/ SC+' /! #. +oman Catholic 2isho, of 6alolos vs. Intermediate ',,ellate Court. "1" SC+' %"" II. +47UISI*4S OF N4)O*I'2ILI*Y Cases& %. Calte5 83hils.9. Inc. vs. C'. ).+. 1::0#. 'ug. "!. "11 0. *raders +oyal 2an-. /1 SC+' "0 /. Consolidated 3lywood vs. IFC Leasing. "%1 SC+' %%; :. )arcia vs. Llamas. %": SC+' 1 8a9 Sum certain in money 8b9 Unconditional ,romise or order to ,ay 8c9 (eterminable future time 8d9 'ct in addition to ,ayment of money 8e9 6atters that may be added or omitted 8f9 3ayable on demand 8g9 3ayable to order 8h9 3ayable to bearer 8i9 'nte$dated and ,ost$dated instruments 8<9 Incom,lete instruments 8-9 6echanically incom,lete but delivered instrument 8l9 6echanically incom,lete and undelivered instrument 8m96echanically com,lete but undelivered instrument Case& ;. (e la =ictoria vs. 2urgos. %0 SC+' #:% 8n9 +ules of Construction 8o9 Liability of ,erson who did not sign the instrument 8,9 Liability of an agent Case& 1. Francisco vs. Court of ',,eals. ).+. ""/# !. Nov. 1. "111 8>9 Forgery Cases& "!. San Carlos 6illing Co. vs. 23I. 0! 3hil. 01 "". 23I vs. Casa 6ontessori. %#! SC+' /" " . Samsung Construction Co. vs. Far 4ast 2an-. %#/ SC+' %!

"#. 3N2 vs. National City 2an-. /# 3hil. :"" "%. 3N2 vs. Court of ',,eals. 0 SC+' /1# "0. +e,ublic vs. 23I. "! SC+' ; "/. *raders +oyal 2an- vs. +adio 3hil.. #1! SC+' /!; ":. 3CI2 vs. Court of ',,eals. #0! SC+' %%/ ";. )reat 4astern Life Ins. =s. ?ong-ong @ Shanghai 2an-. %# 3hil. /:1 "1. )em,esaw vs. Court of ',,eals. ).+. No. 1 %%. Feb. 1. "11# !. 'ssociated 2an- vs. Court of ',,eals. ).+. ;1;! . 6ay :. "11 ". Aai$'lai Cor,oration vs. 23I. // SC+' 1 . 6etroban- vs. Court of ',,eals. ":! SC+' "/1 III. CONSI(4+'*ION Cases& #. *ravel$On vs. Court of ',,eals. ).+. 0/"/1. Aune /. "11 %. Yang vs. Court of ',,eals. %!1 SC+' "01 8a9 'bsence or Failure of Consideration 8b9 'ccommodation 3arty Cases& 0. Lim vs. Saban. %%: SC+' ## /. 3rudencio vs. Court of ',,eals. "%# SC+' : :. 6aulini vs. Serrano. ; 3hil. /%! ;. Sadaya vs. Sevilla. "1 SC+' 1 % I=. N4)O*I'*ION 8a9 Indorsement. how made 8b9 Binds of Indorsements 8"9 2lan- and s,ecial indorsements 8 9 +estrictive indorsement 8#9 7ualified indorsement 8%9 Conditional indorsement 8c9 ?ow long negotiable character continues 8d9 Stri-ing out an indorsement 8e9 (elivery without indorsement of order instrument 8f9 Instrument renegotiated to ,rior ,arty =. +I)?*S OF *?4 ?OL(4+ 8a9 ?older in due course Case& 1. =icente +. de Ocam,o vs. )atchalian. # SC+' 01/ 8b9 +ights of holder in due course i. 3ersonal defenses ii. +eal defenses iii. +ight to enforce full amount of the instrument 8c9 Chen the instrument is sub<ect to original defenses 8d9 Chen the ,erson not holder in due course has rights of holder in due course

=I.

LI'2ILI*I4S OF 3'+*I4S 8a9 6a-er Case& #!. 'stro 4lectronics vs. 3hilguarantee. %"" SC+' %/ 8b9 8c9 8d9 8e9 8f9 8g9 8h9 (rawer (rawee 'cce,tor Irregular indorser 3erson negotiating by delivery or >ualified indorsement )eneral indorser Order of liability of indorsers 3+4S4N*64N* FO+ 3'Y64N* Chen necessary +e>uisites of sufficient ,resentment 3lace of ,resentment Chen ,resentment is not re>uired to charge the drawer Chen ,resentment is not re>uired to charge the indorser Chen delay in ,resentment is e5cused Chen ,resentment maybe dis,ensed with (ishonor by non$,ayment Immediate right of recourse Case& #". *uaDon vs. ?eirs of 2artolome +amos. %/# SC+' %!; 8<9 3ayment in due course

=II. 8a9 8b9 8c9 8d9 8e9 8f9 8g9 8h9 8i9

=III.

NO*IC4 OF (IS?ONO+

8a9 Cho must be given dishonor 8b9 Cho need not be given notice of dishonor 8c9 4ffect of failure to give notice of dishonor Case& # . )ullas vs. 3N2. / 3hil. 0"1 8d9 8e9 8f9 8g9 8h9 8i9 Cho may give notice of dishonor 4ffect of notice of dishonor given by the holder 4ffect of notice of dishonor given by a ,arty entitled to give notice Form of Notice Notice to an agent *ime to give notice of dishonor i. 3arties residing at the same ,lace ii. 3arties residing at different ,laces 8<9 Chere notice of dishonor must be sent 8-9 Caiver of notice of dishonor 8l9 Notice of dishonor dis,ensed with 8m9(elay e5cused 8n9 Notice of dishonor to drawer not re>uired 8o9 Notice of dishonor to indorser not re>uired

IE. 8a9 8b9 8c9 8d9

(ISC?'+)4 OF N4)O*I'2L4 INS*+U64N*S ?ow negotiable instrument is discharged Chen ,erson secondarily liable is discharged 4ffects of ,ayment by ,erson secondarily liable 'lteration Case& ##. 6ontinola vs. 3hili,,ine National 2an-. ;; 3hil. ":; i. S,olation ii. 6aterial alterations iii. Immaterial alterations

*I*L4 II. 2ILLS OF 4EC?'N)4 I. a. b. c. d. e. II. a. b. c. d. e. f. III. a. b. c. d. e. f. g. h. i. <. I=. a. b. c. d. =. FO+6 and IN*4+3+4*'*ION 2ills of e5change defined 2ill not an assignment of funds Inland and foreign bills Chen a bill may be treated as a note +eferee in case of need 'CC43*'NC4 ?ow made *ime allotted to the drawee to acce,t Constructive and im,lied acce,tance Binds of acce,tance 7ualified acce,tance +ights of ,arties to a >ualified acce,tance 3+4S4N*64N* FO+ 'CC43*'NC4 (efinition (istinguished from ,resentment for ,ayment Chen made 4ffect of failure to ma-e ,resentment for acce,tance when re>uired by law ?ow made On what days may be made Chen delay in ma-ing ,resentment is e5cused Chen ,resentment is e5cused (uty of holder where the bill is not acce,ted +ights of holder where bill in not acce,ted 3+O*4S* (efinition Chen necessary Cho can ma-e a ,rotest Chen and where made 'CC43*'NC4 FO+ ?ONO+

a. Chen made

b. Liability of acce,tor for honor c. 'greement of an acce,tor for honor d. (istinctions between acce,tance for honor and regular acce,tance =I. a. b. c. d. e. f. 3'Y64N* FO+ ?ONO+ Cho may ma-e (istinctions between acce,tance for honor and ,ayment for honor ?ow made 3reference of ,arties 4ffect on subse>uent ,arties where the bill is ,aid for honor 4ffect of holderFs refusal to receive ,ayment supra protest 2ILLS IN S4*

=II.

a. (efinition b. +ights of holders where different ,arts of the bill in set are negotiated c. 4ffect of ,ayment by an acce,tor of a bill in set without re>uiring the surrender of the co,y that bears his acce,tance d. 4ffect of discharging one of a set in a bill in set =III. 3+O6ISSO+Y NO*4S 'N( C?4CBS

a. 3romissory noteGChec-sH definition b. Crossed chec-sH definitionH -inds c. 4ffect of crossing a checCases& 3CI2 v. C'. #0! SC+' %%/ 3io 2arreto +ealty v. C'. #/! SC+' " / 'ssociated 2an- v. C'. !; SC+' %/0 State Investment ?ouse v. I'C. ":0 SC+' #"! )em,esaw v. C'. ).+. No. 1 %%. ! G!1G1# d. e. f. g. *ime of ,resentmentH effect of delay 4ffect of certification Chec- not an assignment of fundH liability of drawee to drawer NOC 'ccountsH relationshi, between ban- and de,ositor

Cases& 3eo,le v. +eyes. %0% SC+' /#/ 'ssociated 2an- v. *an. %%/ SC+' ; IE. )4N4+'L 3+O=ISIONS

a. (efinitions