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18-00306 02/27/2019
Law on Negotiable Instruments Quiz #7

Concept of presentment It is the production of a bill of exchange to the drawee or acceptor

for payment for payment, or of a promissory note to the party liable for payment
of the same. The instrument must be exhibited to the person from
whom payment is demanded, and when it is paid must be delivered
up to the party paying in. [Sec. 74]
Necessity of presentment for payment
1) As against party  Presentment for payment is not necessary to charge party
primarily liable primarily liable.
2) As against persons  Presentment for payment is necessary to charge the drawer
secondarily liable and indorsers.
Exceptions, i.e drawers and indorsers are liable even
without presentment for payment.
a) Drawer – When he has no right to expect or require that the
drawee or acceptor will pay the instrument. [Sec. 79]
b) Indorser – Where the instrument was made or accepted for
his accommodation and he has no reason to expect that the
instrument will be paid if presented. [Sec. 80]
c) When presentment is dispensed with:
i. When it cannot be made after the exercise of
reasonable diligence.
ii. When the drawee is a fictitious person.
iii. By waiver of presentment, express or implied. [Sec.
82]
iv. When a bill is dishonored by non-acceptance. [Sec.
151]
What constitute sufficient presentment
1) By whom  By the holder, or some person authorized to receive
presented payment in his behalf.
2) When presented  Presentment for payment must be made on the date fixed
without race [Sec. 85], unless delay in presentment for
payment is excused when it is caused by circumstances
beyond the control of the holder, and not imputed to his
default, misconduct or negligence. When the cause of delay
ceases to operate, presentment for payment must be made
with reasonable diligence. [Sec. 81]
i. Time of presentment
 Presentment for payment must be made at
a reasonable hour on a business day.
If payable at a bank, presentment for
payment must be made during banking
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hours, unless the person to make payment

has no funds there to meet it at any time
during the day, in which case presentment at
any hour before the bank is closed on that
day is sufficient. [Sec. 75]
ii. Date of presentment
 If instrument is payable on demand [Sec. 71]
 Promissory note – Presentment for
payment must be made within a
reasonable time after issuance.
 Bill of exchange – Presentment for
payment must be made within a
reasonable time after the last
negotiation.
If day falls on a Saturday, the holder has the
option to present instrument – (a) on the
succeeding business day, or (b) before 12:00
noon on that Saturday when that entire day
is not a holiday. [Sec. 8]
 If instrument is not payable on demand, i.e.,
payable at a fixed or determinable future
time – presentment for payment must be on
the day it falls due. [Sec. 71] If it falls on a
Saturday, Sunday or holiday, presentment
must be made on the succeeding business
day. [Sec.85]
iii. Computation of time of maturity
 Where the instrument is payable at a fixed
period after date, after sight, or after the
happening of a specified event, the time or
payment is determined by excluding the day
from which the time is to run, and by
including the date of payment. [Sec. 86]
3) Where presented  Presentation is made at the proper place:
a) If a place of payment is specified in the instrument and it is
there presented.
b) If no place is specified, but the address of the person to
make payment is given in the instrument, and it is there
presented.
c) In the absence of the first two, and the instrument is
presented at the usual place of business or residence of the
person to make payment.
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d) In any other case if presented to the person to make

payment wherever he can be found, or if presented at his
last known place of business or residence.
4) To whom presented  To a person primarily liable on the instrument, or if he is
absent or inaccessible, to any person found at the place
where presentment is made. [Sec. 72] subject the ff. rules;
 If principal debtor is dead – If no place of
payment is specified, to his personal
representative, if there is one, and if with the
exercise of reasonable diligence, he can be
found. [Sec.76]
 If the principal debtors are partners – If no
place of payment is specified, to any one of
the partners, even if there has been a
dissolution of the firm. [Sec. 77]
 If principal debtors are joint debtors – If no
place of payment is specified, to all of them
[Sec. 78] unless one is authorized by the
others.