PAGADUAN, RACHELLE ANNE P.

BA - 12

Mr. A signed a check and delivered it to Mr. B in payment of his

obligation. Mr. B is indebted to Mr. C. Mr. B delivered and Mr. C
accepted the check of Mr. A in payment of the obligation of Mr. B. Mr.
C failed to encash the check for several years. In the meantime, Mr. A
already closed his checking account and can no longer be found. Can
Mr. B claim that there is payment? Why?

Answer:

No, Mr. B cannot claim that there is a payment. Under Article 1249, the
delivery of promissory notes payable to order, or bills or exchange or
other mercantile documents shall produce effect of payment only when
they have been cashed, or when through the fault of creditor they have
been impaired. Check is a mercantile document and it is not a legal
tender, therefore, the creditor cannot be compelled to accept it. Mr. C
accepted the check as a payment of Mr. B, but the payment by check is
consider only to be a conditional payment, so Mr. B is yet release to his
obligation until the check has been honored by the bank which it will be
drawn. After several years the check became a stale check and Mr. A
closed his checking account and can no longer be found. Stale Checks
are dishonored in banks because it is more than six months from the date
it can be encashed and the checking account of Mr. A is closed. The
original obligation is suspended.