Discharge

Order instrument

A – B (blank) – C (special) – D – ninakaw W – Y (good faith)

 A pays Y in good faith. Is obligation extinguished? Is instrument discharged?

Nag blank. Sana pwede negotiation by delivery. Kaso nag special, it reverted instrument to
order. Therefore D cannot deliver to W to delivery. Di nga nag deliver kasi ninakaw. Draw a line
separate the two. Tapos.

 Same scenario but W strikes out C. Extinguished. Naging bearer siya.

II. P- payment by accommodated party

A (accommodation maker) – B (accommodated party) – S
A makes a PN to accommodate B, tapos pinasa kay S. Ang due date, di na hinintay ni A for S to
go after A. B went to S, and B pays. Is obligation extinguished? YES. There was payment by the
accommodated party.

III. Intentional Cancellation – Pinunit ni holder ang instrument. Bakit pa ako maniningil
eh friend ko si maker A.
IV. Principal debtor becomes holder of instrument at or after its maturity. Kung holder
ka, creditor ka, at ikaw din ang debtor. Between this one person nagkaroon ng
confusion.
V. Other means that will discharge simple obligations to pay money

Kelan na didischarge ang PSL? DD IVER

I. Discharge of the instrument –kung wala ng instrument, alangan naman may parties
pa.
II. Discharge of prior party. Kapag may prior party na discharge, ang subsequent party,
ma didischarge.
III. I, intentional cancellation of the signature of that indorser. Tingnan mo scenario na
to
A–B–C–D–E- F–G
Naisipan ni G may strike out ng indorsement. Halimbawa indorsement C kay D, ay
blank. Tapos si D nag endorse kay E. So pwede na si G mag bura.
Binura, strike out na ni G si D. Si D na discharge Intentional cancellation of signature.
Sa mata ni D, si E, F, G subsequent party. Sa mata ni E at F, si D prior party. The
discharge of prior party, will discharge subsequent party.

IV. Valid Tender of Payment made by a prior party

A–B–C–D–E–F–G
 Si A nag dishonor. Si G nag notify kay F at C. Wala siyang balak to make singil D kasi
kaibigan niya. F to protect himself to notifies E, E notifies D. Ng natanggap ni D ang
notice, nag bayad si D kay G.
G: Friend why are you paying? Di kita binigyan ng notice kasi I don’t intend to collect
from you.
D: Yes but I received a notice from E, and he’s telling me to pay. Ang the notice niya
galing kay F. Ang ni-notify mo, no-notify kami. If you collect from F, sisingilin ako, so
might as well collect from me.
G: Ayoko sap era mo. Ba’t kita sisingilin.

There was a valid tender of payment made by D, which was refused by G. For E and F, D is a
prior party. Pag nagbayad ang prior party, di mo tinanggap, lahat ng subsequent discharged
na. So kanino maniningil kay G? Kay C. Lahat yan discharged na eh.

V. Extension of time of payment except if they consent

Nag due. Si G nagpunta kay A, naniningil.

A: G look at the documents I have. Next week I will receive money as promised to me, then I
will pay you. humingi ng 1 week extension
G has a pusong mamon. Nakita niya na may-capacity naman si A to pay. The moment G
allows an extension for A to pay on a later date, lahat ng PSL ma-didischarge.
Kung gusto ni G sabihan niya si A: “Gusto kita tulungan pero gusto ko bayaran ako ng mga
niyan (PSL). Tell them that you are requesting for an extension and if they agree that I grant
you the extension, then I will grant you the extention. If payag sila sa extention, di sila
makakawala.”

VI. R – Release of the principal debtor

If G condones A, principal debtor, all parties secondarily liable are discharged.