1 Negotiable Instruments Law for Atty.

Caldona by Jason Arteche

Roman Catholic Bishop of Malolos Inc. vs IAC

Facts
Roman Inc. and IAC entered into a contract with the latter buying Land X from the former for a sum
of money. Payment would be made in 4-years from date. The 4 years came and went but no payment
arrived. Roman Inc. granted IAC a 5-day extension to pay the principal plus interest. IAC offered a
check as payment on the last day but Roman Inc. refused it. Roman Inc. then revoked the contract and
considered the land reconveyed to its name.

Issue
Is Roman Inc’s check offer a valid tender of payment?

Held
No.

The check is a certified a personal check that is neither legal tender of payment nor the currency
stipulated in the contract.

A negotiable instrument is only a substitute for money and not money, the delivery of such an
instrument doesn’t by itself operate as payment.

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