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NEGOTIABLE INSTRUMENTS NOTES

BASED ON AGBAYANIS BOOK AND ATTY. MERCADOS LECTURES


Page 101 of 190


BY: MA. ANGELA LEONOR C. AGUINALDO
ATENEO LAW 2D BATCH 2010
Accordingly, where F holder doesnt make a presentment to X, A
drawer would not be discharged by such failure

PRESENTMENT IS NOT REQUIRED TO CHARGE THE DRAWER IN THE
FOLLOWING CASES
1. In case the check upon which payment has been stopped
2. Where the drawers balance is less than the amount of the check.
The mere fact however that the drawer has no funds with drawee
at the time he draws, doesnt render presentment unnecessary if
he still has reasonable grounds to believe that the instrument will
be paid, particularly when provision has been made for payment
of any bill drawn by the drawer on the drawee
3. Where the drawer of a bill containing the words Pay from
balance had no money on deposit with the drawee but expected
to arrange with the broker to cover drafts

WHEN INDORSER NEED NOT BE GIVEN NOTICE
A makes a note for the accommodation of B, payee.

I promise to pay B P1000.

Sgd. A

B!C
C!D
D!E
E!F
F need not make presentment for payment to A in order to charge B
indorser
B didnt give any value to A
B has no reason to expect that the note will be paid upon presentment
B is considered to be the ultimately liable party since he is the
accommodated party
With regard C and D, presentment for payment is still required

Sec. 81. When delay in making presentment is excused. - Delay in
making presentment for payment is excused when the delay is
caused by circumstances beyond the control of the holder and not
imputable to his default, misconduct, or negligence. When the
cause of delay ceases to operate, presentment must be made with
reasonable diligence.

EXCUSES FOR DELAY
Overwhelming calamity, malignant diseases, interruption of trade
negotiations by political circumstances, etc.

Sec. 82. When presentment for payment is excused. - Presentment
for payment is excused:

(a) Where, after the exercise of reasonable diligence,
presentment, as required by this Act, cannot be made;

(b) Where the drawee is a fictitious person;

(c) By waiver of presentment, express or implied.

APPLICATION OF SECTION 82
What is excused is failure to make presentment for payment and not
mere delay

WAIVER MAY BE EXPRESS OR IMPLIED

IMPLIED WAIVER
Implied waiver of presentment may be manifested by any language or
conduct or any agreement between the parties reasonably calculated
to lead the holder to believe that presentment is waived or to mislead
or prevent him from treating the bill as he otherwise would

SUMMARY OF RULES AS TO PRESENTMENT FOR PAYMENT
1. Presentment for payment is not necessary to charge persons primarily
liable
2. But it is necessary to charge a person secondarily liable except
a. As to drawer, under Section 79
b. As to indorser, under Section 80
c. When dispensed with under Section 82
d. d. When the instrument has been dishonored by non-acceptance

Sec. 83. When instrument dishonored by non-payment. - The
instrument is dishonored by non-payment when:

(a) It is duly presented for payment and payment is refused or
cannot be obtained; or

(b) Presentment is excused and the instrument is overdue and
unpaid.

WHEN PAYMENT REFUSED, ETC.