LETTERS OF CREDIT
Definition
Applicable laws
Parties to a letter of credit
‘Transactions involved in a letter of credit (See: Independence Principle:
Fraud Exception Principle and Rule of Strict Compliance)
pes of letters of creait
irrevocable letter of credit
confirmed letter of credit
standby letter of credit
others
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CASES: Bank of the Philippine Islands vs. De Reny Fabric Industries, Inc., GR.
No. L-24821, 16 October 1970,; Bank of America, NT vs. Court of Appeals,
G.R. No, 105395,10 December 1993; Feati Bank & Trust Company vs. Court
of Appeals, G.R. No. 94209, 30 April 1991; Transfield Philippines, Inc. vs.
Luzon Hydro Corp., G.R. No. 146717,22 November 2004; MWSS vs. Hon.
Daway, G.R. No, 160732, 21 June 2004
TRUST RECEIPTS
‘Trust receipt transaction (Sec. 4, TRL)
Form of trust receipt (Sec. 5, TRL)
Parties to a trust receipt transaction
Rights of the entruster (Sec. 7, 8, & 12 TRL)
Obligations/Liabilities of the entrustee (Sec. 9 & 10, TRL)
Rights of purchaser (Sec. 11, TRL)
Penalties (Sec. 13)
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CASES: People vs. Nitafan, G.R. Nos. 81559-60, 06 April 1992; Rosario Textile
Mills Corp., et al. vs. Home Bankers Savings & Trust Co., G.R. No, 137232, 29
June 2005; Landl Company vs. Metrobank, G.R. No. 159622, 30 July 2004;
Vintola vs. Insular Bank, G.R. No. 73271, 29 May 1987; Pilipinas vs. Ong, G.R.
No. 133176, 8 August 2002; Land Bank of the Philippines v. Lamberto C.
Perez, Nestor C. Kun, Ma. Estelita Angeles-Panlilio, and Napoleon 0. Garcia,
GR. No. 166884, June 13, 2012
WAREHOUSE RECEIPTS LAW
1. Concept of warehousing business
2. Duties of a warehouseman,
3. Warehouse receipts
a. Functions
b. Form of receipts (Sec. 2, WRL)
c. kinds of warehouse receipts
1. negotiable
2. non-negotiable
4. Negotiation of receipts
bearer and order receipts (Sec. 37 & 38, WRL)
effects of negotiation (Sec. 41, 49 and 25, WRL)
incomplete negotiation (Sec. 43, WRL)
negotiation by fraud, mistake or duress (Sec. 47, WRL compare
with Art. 1518, NCC)
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5. Transfer of receipts and effects thereof (Sec. 39 and 42, WRL)Liabilities of indorser or transferor (Sec. 44 & 45, WRL)
Warehouseman’s lien and its enforcement (Sec. 27, 29, 33, 34 and 35,
WRL)
Adverse claims (Sec. 17, 18 and 19, WRL)