section 23 ford's signature effect all when a signature is forged or made without the authority of the person whose

signature it purports to be
it is wholly inoperative and no right to retain the instrument or to give a discharge therefore or to enforce payment or off against any
party there too can be acquired through or under such signature unless the party against whom it is sold to enforce such right is precluded
from setting up the forgery or want of authority ford's signature lack of genuineness in the instrument is an absolute defense
and such lack of genuineness may arise from forgery forgery is the counterfeit making or fraudulent alteration abandon writing which may
consist of one signing of another's name with intent to defraud or to alteration of an instrument in the name
amount name obey chatter with intent to defront under this section however forgery pertains only to the signature of a party to the
instrument namely maker drawer acceptor endorser made without the authority of said party whose signature it purports to be such ford's
signature is wholly in operative and no right to retain the instrument or to give a discharge therefore or to enforce payment off against any
party there too can be acquired through or under such signature unless the party against whom it is so to enforce such right is precluded
from setting up the forgery or want of authority a person whose signature to an instrument was forged was never a party and never
consented to the contract which allegedly gave rise to such instrument the writing of one's name by another who is not authorized to do so
imposes no obligation upon the one whose name is signed even a holder in due course cannot recover from the principle parties prior to the
ford's signature cannot be held liable by persons who acquired the instrument through or under such signature this is known as the cut off
rule forged check drawer d has a checking account with roybankx thief t steals this checkbook and writes a check payable to p or order and
signs this name as drawer because t was not authorized to sign this name the signature is ineffective as the signature of the unless these
precluded from setting up the forgery or want of authoritysince they did not sign the cheque nor authorized it to sign in in his behalf this is
not liable not to check the cheque however is not analogy the cheque in this example which bears a ford's drawer's signature is known as a
forged check forged endorsement d writes a check to the order of b signs it as a drawer and mails it to p t steals the cheque from p endorses
the cheque by signing page name at the back of the check and obtains payment of the check from x acceptor the check in this example is
not a ford's check because this signature was not forged the infirmity of the check is that it bears a forced endorsement the signature of d is
ineffective as p signature since p did not endorse the check t cannot negotiate the check and nobody can obtain rights as a holder unless
again p is precluded from setting up the forgery or want of authority forgery conveys no title thus if an instrument
is negotiated by means above's endorsement the endorser acquires no title even though he is a purchaser for value and in good faith but
where the instrument is a better instrument or has been endorsed in black it can be negotiated by mere delivery and the holder derives his
title independent of the ford's endorsement also he can recover from any of the parties to the instrument illustration one a bill is endorsed
this way pay to a or order a endorses it in blank and it comes to the hands of b who simply delivers it to c
c forges base endorsement and transfers it to d can d recover yes d can claim payment despite the false endorsement because it can fill in
his own name over the blank endorsement of a and strike out the subsequent endorsements illustration 2 an instrument payable to a or order
is endorsed in blanks by a then specially endorsed by a genuine endorsement of the holder to be this endorsement is forged and then the
instrument comes into the handsome sea a bonafide purchaser can see collect on the instrument she cannot collect because he cannot
write his name over the blank endorsement because the subsequent genuine special endorsement restricts the negotiability of the paper it is
necessary there shall be a genuine endorsement from b in order to transfer the title effects of ford's signature cut off rule the general rule is
when a signature is forged or made without authority of the person or signature it purports to be the forged signature not the instrument
itself and the other genuine signatures is wholly in operative the effects are one no right to retain the instrument two no right to give a dis
discharge therefore and three no right to enforce payment or off against any party there too can be acquired through or under such signature
unless the part against whom it is sought to be enforced is precluded from setting of the forgery or want of authority as a defense paymentto
a person holding under the forced endorsement does not discharge the instrument the person in possession cannot force
payment of the instrument by any party who became liable prior to the forced endorsement if the name of the maker drawer or acceptor is
forged the instrument is not binding on them even a holder in due course is not permitted to enforce such a pretended obligation the
prospective purchaser therefore must determine at his peril whether the signature is genuine the essence of the cut-off rule is thoroughly
explained in the case of namibi natividad gimpesa alberto ca and philippine bank of communications the supreme court speaking through
justice campos laid down a detailed discussion of the effect of forgery to it under the foresight and provision forgery is a real or absolute
defense by the party whose signature was forced a party whose signature to an instrument was forged was never a party and never gave his
consent to the contract which gave rise to the instrument since his signature does not appear in the instrument he cannot be held liable their
own by anyone not even by a holder in due course thus if a person's signature is forged as a maker of a promissory note he cannot be made
to pay because he never made the promise to pay or where a person's signature as a drawer of a check is forged he cannot charge the
amount thereof against the drawer's account because he never gave the bank the order to pay and said section does not refer only to the
forged signature of the maker of a promissory note and of the drawer of a check it covers also a ford's endorsement namely the ford
signature of the pay or endorsing of a note or a check since under said provision a forged signature is wholly inoperative no one can gain title
to the instrument through such ford's endorsement such an endorsement prevents any subsequent party from acquiring any right as against
any party whose name appears prior to the forgery although rights may exist between and among parties subsequent to the ford's
endorsement not one of them can acquire rights against parties prior to the forgery such ford's endorsement cuts off the
rights of all subsequent parties as against parties prior to the forgery however the law makes an exception to those rules where a party is
precluded from setting up forgery as a defense persons precluded from setting up forgery persons who are precluded from setting a
forgery or want of authority are the following one those who are on the genuineness of the instrument namely the endorsers or persons
negotiating by delivery two those who want the genuineness of the signature of the drawer namely the acceptor three those who ratified the
forgery expressly or impliedly and for those whose negligence contributed to the perpetration of the forgery liability of parties on a forged
instrument one in a promissory note a maker whose signature was forged cannot be held liable by any holder including a holder in due
course a party whose endorsement is forged on a note payable to order and all parties prior to him including the maker cannot be held liable
by any holder a party whose signature is forged on a note originally payable to better and all parties prior to him including the maker may be
held liable by a holder in due course provided that it was mechanically complete before the forgeries two in a bill of exchange if the drawing
has accepted the bill the drawee bears the loss and his remedy is to go after the forger the drawer's account cannot be charged by the
drawing where the draw we paid the instrument if the drawee has not accepted the bill but has paid it the drawing cannot recover from the
drawer or the recipient of the proceeds absence any act of negligence on their part