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Course Outline for

Negotiable Instruments Law


Prof. S.M.Ceniza

A. Forms and Interpretation

1. Requisites of Negotiability

HSBC Ltd.-Phil. Br. vs. Comm. of Internal Revenue, G.R. No. 166018, June 04, 2014
Rodrigo Rivera vs. Sps. Salvador and Violeta Chua, G.R. No. 184458, Jan. 14, 2015
Sps. Pedro and Florencia Violago vs. BA Finance Corp., et. al., G.R. No. 158262, July
21, 2008
Consolidated Plywood Industries, Inc., et. al. vs. IFC Leasing and Acceptance
Corporation, G.R. No. 72593, April 30, 1987
Caltex (Phils.), Inc. vs. Court of Appeals and Security Bank and Trust Co., G.R. No.
97753. Aug. 10, 1992

2. Applicability of NIL

Romeo C. Garcia vs. Dionisio V. Llamas, G.R. No. 154127, Dec. 8, 2003
Firestone Tire & Rubber Co. of the Phils. vs., Court of Appeals, et. al.,
G.R. No. 113236, March 5, 2001

3. Kinds of Negotiable Instruments

a) Bearer instrument
- People of the Phils. v. Gilbert Reyes Wagas, G.R. No. 157943,
- PNB vs. Erlando T. Rodriguez, et. al., G.R. No. 170325, Sept. 26, 2008,
Sept. 4, 2013

b) Order Instrument

B. Completion and Delivery

1. Insertion of Date
2. Completion of Blanks

- John Dy vs. People of the Phils., et. al., G.R. No. 158312, Nov. 14, 2008

3. Incomplete but delivered Instruments

- Alvin Patrimonio vs. Napoleon Gutierrez , et. al. G.R. No. 187769, June 04,
2014
- Bank of America NT & SA vs. Philippine Racing Club, G.R. No. 150228, July 30,
2009
- Ting Ting Pua vs. Sps. Benito Lo Bun Tiong And Caroline Siok Ching Teng, G.R. No.
198660, October 23, 2013

4. Complete but Undelivered Instruments

- RCBC vs. Hi-Tri Dev. Corp. , et. al, G.R. No. 192413, June 13, 2012

5. Issuance and Delivery

- John Dy vs. People of the Phils., G.R. No. 158312 Nov. 14, 2008

- Dev. Bank of Rizal, vs. Sima Wei, et. al., G.R. No. 85419, March 9, 1993

C. Signature
1. Signing in Trade Name
2. Signature of Agent

- Enrique P. Montinola vs. PNB, et. al., G.R. No. L-2861, Feb 26, 1951

3. Indorsement by Minor or Corporation


4. Forgery

- Samsung Construction Co. Phils, Inc. vs. Far East Bank and Trust Co. et. al. G.R. No.
129015. Aug. 13, 2004
- Associated Bank vs. Hon. Court of Appeals, G.R. No. 107382. Jan. 31, 1996
- Traders Royal Bank vs. Radio Philippines Network, Inc., et. al., G.R. No. 138510,
Oct. 10, 2002
- BPI vs. Casa Montessori Internationale, et. al., G.R. No. 149454. May 28, 2004
- MWSS vs. CA and PNB, G.R. No. L-62943, July 14, 1986

D. Consideration

Engr. Jose E. Cayanan North Star Intl Travel, Inc., G.R. No. 172954 Oct. 5, 2011
Leodegario Bayani vs. People of the Phils., G.R. No. 154947, Aug. 11, 2004
Carmela Brobio Mangahas vs. Eufrocina A. Brobio, G.R. No. 183852, Oct. 20, 2010
Quirino Gonzales Logging Concessionaire, et. al. vs. CA and Republic Planters Bank,
G. R. No. 126568. April 30, 2003

E. Accommodation Party

Fideliza J. Aglibot vs. Ingersol R. Santia, G.R. No. 185945, Dec. 5, 2012
Eusebio Gonzales vs. PCIB, et. al. G.R. No. 180257, February 23, 2011
Ang v. Associated Bank, G.R. No. 146511, September 5, 2007, 532 SCRA 244
Claude P. Bautista vs. Auto Plus Traders, Inc., et. al., G.R. No. 166405, Aug. 6, 2008
Tomas Ang vs. Associated Bank , et. al. G.R. No. 146511 Sept. 5, 2007
Genevieve Lim vs. Florencio Saban, G.R. No. 163720 , December 16, 2004

F. Negotiation
1. Distinguished from Assignment
2. Modes of Negotiation

Caltex (Phils.), Inc. vs. CA, et. al. , G.R. No. 97753, Aug. 10, 1992
People of the Phils. vs. Gilbert Reyes Wagas, G.R. No. 157943, Sept. 04, 2013
BPI vs. CA, Annabelle A. Salazar and Julio Templonuevo, G.R. No. 136202, Jan. 25,
2007
Raul Sesbreo vs. CA, Delta Motors Corp. and Pilipinas Bank G.R. No. 89252, May 24,
1993

3. Kinds of Indorsements

PNB vs. Erlando T. Rodriguez, et. al., G.R. No. 170325, Sept. 26, 2008
PCIB vs. CA, G.R. No. 121413. January 29, 2001
Metrobank vs. BA Finance , et. al., G.R. No. 179952, December 4, 2009
Metrobank vs. PB Com, et. al. G.R. No. 141408, Oct. 18, 2007
Allied Banking Corp. vs. Lim Sio Wan, et. al., G.R. No. 133179 March 27, 2008
Melva Theresa Alviar Gonzales vs. RCBC G.R. No. 156294 Nov. 29, 2006

G. Rights of the Holder

1. Holder in Due Course

BPI vs. Gregorio C. Roxas, G.R. NO. 157833 : October 15, 2007
Robert Dino vs. Maria Luisa Judal-Loot , et. al., G.R. No. 170912 Apr. 19, 2010
Hi-Cement Corp. vs. Insular Bank of Asia and America, G.R. No. 132403,
Sept. 28, 2007
Sps. Pedro and Florencia Violago vs. BA Finance Corp., et. al., G.R. No. 158262, July
21, 2008
Cely Yang vs. Court of Appeals, et. al., G.R. No. 138074. Aug. 15, 2003
Alvin Patrimonio vs. Napoleon Gutierrez , et.al., G.R. No. 187769, June 04, 2014
Atrium Mgmt Corp. vs. CA , 323 SCRA 23
Cesar V. Areza , et. al. vs. .Express Savings Bank, Inc. , et. al., G.R. No. 176697, Sept.
10, 2014
State Investment House vs. Intermediate Appellate Court, et al., G.R. No. 72764 July 13,
1989
Eulalio Prudencio, et al. vs. CA, et al., G.R. No. L-34539 July 14, 1986
Sps. Pedro and Florencia Violago v. BA Finance Corp. and Avelino Violago G.R. No.
158262
Equitable PCI Bank vs. Rowena Ong G.R. No. 156207, Sept. 15, 2006

2. Defenses Against the Holder

H. Liabilities of Parties
1. Maker
2. Drawer
- Natividad Gempesaw vs. CA and PBCom, G.R. No. 92244, Feb. 9, 1993
3. Acceptor
Far East Bank & Trust Co. vs. Gold Palace Jewellery Co., G.R. No. 168274, August 20,
2008
4. Indorser

- Allied Banking Corp. vs. Lim Sio Wan, et. al., G.R. No. 133179, March 27, 2008
- Anamer Salazar vs. J.Y. Bros. Marketing Corp., G.R. No. 171998, Oct. 20, 2010
- Maria Tuazon, et. al. vs. Heirs of Bartolome Ramos, G.R. No. 156262,
July 14, 2005
- BPI VS. CA and Benjamin C. Napiza, G.R. No. 112392. February 29, 2000
- Melva Theresa Alviar Gonzales vs. RCBC, G.R. No. 156294, Nov. 29, 2006
- Tuazon vs. Heirs of Bartolome Santos- 463 SCRA 408

5. Warranties
- Allied Banking Corp. vs. Lim Sio Wan, et. al., G.R. No. 133179 March 27, 2008

I. Presentment for Payment


1. Necessity of Presentment for Payment
2. Parties to Whom Presentment for Payment Should Be Made
3. Dispensation with Presentment for Payment
4. Dishonor by Non-Payment
- Anamer Salazar vs. J.Y. Bros. Marketing Corp., G.R. No. 171998, Oct. 20, 2010

J. Notice of Dishonor
1. Parties to Be Notified
2. Parties Who May Give Notice and Dishonor
3. Effect of Notice
Amada Resterio vs. People of the Phils.,G.R. No. 177438, Sept. 24, 2012
Ma. Rosario Campos vs. People of the Phils. and First Womens Credit Corp., G.R. No.
187401, Sept. 17, 2014
4. Form of Notice

Jaime Alferez vs. People of the Phils., et. al., G.R. No. 182301, Jan. 31, 2011
5. Waiver
6. Dispensation with Notice
7. Effect of Failure to Give Notice
K. Protest
Marlou L. Velasquez vs. Solidbank Corporation, G.R. No. 157309, March 28, 2008

Allied Banking Corp. vs. Court of Appeals and G.G. Sportswear Mfg. Corp., et. al. G.R. No.
125851 July 11, 2006
Producers Bank of the Phils. vs. Excelsa Industries, Inc., G.R. No. 152071 May 8, 2009

L. Discharge of Negotiable Instrument


1. Discharge of Negotiable Instrument
- Namer Salazar vs.J.Y. Bros. Marketing Corp., G.R. No. 171998 Oct. 20, 2010
2. Discharge of Parties Secondarily Liable
3. Right of Party Who Discharged Instrument
4. Renunciation by Holder

M. Material Alteration
1. Concept
2. Effect of Material Alteration
PNB vs. Court of Appeals, et.. al., G.R. No. 107508, April 25, 1996
The Intl Corporate Bank, Inc. vs. C.A. G.R. No. 129910 Sept. 5, 2006
Metrobank Vs. Renato D. Cabilzo, G.R. No. 154469, December 6, 2006
Bank of America vs. Phil. Racing Club, G.R. No. 150228, July 30, 2009
N. Acceptance
1. Definition
The HSBC Limited-Phil. Br. vs. Comm. of Internal Revenue, G.R. No. 166018, June
04, 2014
Equitable PCI Bank vs. Rowena Ong, G.R. No. 156207, Sept. 15, 2006
Security Bank and Trust Co. vs. RCBC, G.R. No. 170984, January 30, 2009
The International Corporate Bank (now Union Bank of the Phils.) vs. Sps. Francis S.
Gueco and Ma. Luz E. Gueco, G.R. No. 141968. Feb. 12, 2001
Sps. Gil Gardose vs. Reynaldo S. Tarroza, G.R. No. 130570. May 19, 1998
Myron Papa, et. al. vs. A. U. Valencia and Co. Inc., et. al., G.R. No. 105188, Jan. 23,
1998
Bank of America, NT & SA vs. Asso. Citizens Bank, et. al. G.R. No. 141001, May 21,
2009
Far East Bank & Trust Co. vs. Gold Palace Jewellery Co. et. al. , G.R. No. 168274, Aug.
20, 2008

2. Manner
3. Time for Acceptance
4. Rules Governing Acceptance
- Far East Bank & Trust C. vs. Gold Palace Jewellery Co., G.R. No. 168274
Aug. 20, 2008

O. Presentment for Acceptance


1. Time/Place/Manner of Presentment
2. Effect of Failure to Make Presentment
3. Dishonor by Non-Acceptance

P. Promissory Notes

Rodrigo Rivera vs. Sps. Salvador and S. Violeta Chua, G.R. No. 184458, Jan. 14, 2015

Q. Checks
1. Definition
2. Kinds
Crossed Check
- Equitable Banking Corp. vs. Special Steel Products, Inc., et. al., G.R. No.
175350, June 13, 2012)
- Philippine Commercial Bank vs. Antonio B. Balmaceda and Rolando
N. Ramos, G.R. No. 158143, Sept. 21, 2011
- Equitable Banking Corp. vs. Special Steel Products, Inc. et. al.,
G.R. No. 175350, June 13, 2012
Managers Check
- Security Bank vs. RCBC, G.R. No. 170984, Jan. 30, 2009
- RCBC vs. Hi-Tri Dev. Corp., et al., G.R. No. 192413, June 13, 2012
- BPI vs. Wilfred N. Chiok, G.R. No. 175302, Nov. 26, 2014

Cashiers Check
- International Corporate Bank v. Sps. Gueco, 404 Phil. 353 (2001)
3. Presentment for Payment
a. Time
b. Effect of Delay

R. Bouncing Checks Law

1. Valid Issuance of the check


Evangeline Cabrera vs. People of the Phils, et. al., G.R. No. 150618, July 24, 2003
2. Sufficient Funds with the Drawee Bank
Sycip Jr. vs. Court of Appeals, 328 SCRA 447

N.B.

For more comprehensive study of the course, additional cases maybe assigned for each new topic.

SMC.NIL.2017