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THE TRIBE Negotiable instruments Law

Sec. 94. When agent may give notice-- Where the Sec. 96. Form of notice. – The notice may be in writing
instrument has been dishonored in the hands of an or merely oral and may be given in any terms which
agent, he may either himself give notice to the parties sufficiently identify the instrument and indicate that it
liable thereon, or he may give notice to the principal. If has been dishonored by nonacceptance or nonpayment.
he gives notice to his principal, he must do so within the It may in all cases be given by delivering it personally or
same time as if he were the holder, and the principal through the mails.
upon receipt of such notice has himself the same time
 What is the form of the notice of dishonor?
for giving notice as if the agent had been an
 May be in (1) in writing or (2) merely
independent holder.

 What are the contents of the notice?

 When and to whom agent may give notice
Whether written or oral, it must set forth:
In case the instrument is dishonored in the
1. the identity of the instrument;
hands of the agent, he may give notice either
2. the fact that it has been dishonored by
nonacceptance/ nonpayment;
1. His principal
3. a statement that the party giving notice
 Agent must notify him within the
intends to look to the party addressed
same time referred to as if he were
for payment;
a holder
 Principal upon receiving notice, has
 How is the notice given?
also the same time for giving notice
1. By personal delivery;
to the parties secondarily liable as if
2. By mail.
the instrument was dishonored on
*note: the word “may” in the last sentence of the art
the day that he received the notice has been construed as “must”
2. Parties secondarily liable
 Agent must give notice within the  Defect of notice
time fixed by sec. 102, 103, 104,  Lack of Signature/ Insufficiency
and 107  does not invalidate the notice
 If no notice is given within the time  may be supplemented and
fixed: they are discharged for lack validated by oral communication
of notice unless the principal  Misdescription of Instrument
himself notifies them within the  Misdescription, such as, (1) amount,
same time (2) date, (3) name of the parties, (4)
date of maturity, does not vitiates
the notice, unless it mislead the
party to whom it is sent
Sec. 95. When notice sufficient— A written notice need  REASON: the purpose of the
not be signed, and an insufficient written notice may be notice is to appraise the party
supplemented and validated by verbal communication. entitled thereto of the dishonor
A misdescription of the instrument does not vitiate the of the instrument, so that when
notice unless the party to whom the notice is given is in he is not misled by the
fact misled thereby. misdescription, notice is
 How may an insufficient written notice be  Lack of Statement of Recourse to Indorser
validated?  Notice need not state that the
 it may be supplemented and sender looks to the indorser for
validated by verbal communication payment, where it may be inferred
that the indorsee looks to the
indorser, and no other inference
 Effect of a misdescription of instrument could reasonably be drawn from
 General Rule: does not vitiate the notice the notice
 Exception: the party to whom the notice is
Sec. 97. To whom notice may be given-- Notice of
given is in fact misled thereby
dishonor may be given either to the party himself or to
his agent in that behalf.

 To whom is the notice of dishonor given?

1. To the Party himself
2. To his agent in that behalf
 Must be authorized to received
notice for the drawer or indorser
concerned and not merely an agent
for a specified purpose.

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THE TRIBE Negotiable instruments Law

 In Sec. 91, agent need not be

authorized by the principal; in sec.
97, agent must be authorized by the
 REASON: in sec. 91, giving of
notice benefits the principal; in
sec. 97, the receipt of notice
creates liability.

Sec. 98. Notice where party is dead-- When any party is

dead, and his death is known to the party giving notice,
the notice must be given to a personal representative, if
there be one, and if with reasonable diligence he can be
found. If there be no personal representative, notice
may be sent to the last residence or last place of
business of the deceased.

 Where must the notice be given when the

party sought to be charged is dead?
Must be given to his personal representative
provided that:
1. his death is known to the party, giving
2. there is a personal representative;
3. if with reasonable diligence, said
representative could be found.

 When is notice to personal representative not

1. If the death is not known to the party giving
2. Although the fact of the death is known, the
decedent has no personal representative;
3. If the be one but with reasonable diligence,
he cannot be found.
 NOTE: in any of the above situations, notice
may be sent to the (1) last residence or (2)
last place of business of the deceased.

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