—Cognovitis a 1 em Coefonern TacaNS “he has Refers pnfession of judgment after s or confeseion rele erent efor tal. In 2 conte icta ao fesses the and ne defendant cont he plain vein vee withdraws or abandons his caus on cause or ther procedures taken By Bim. vert law intended to protect the (Waiver of ben ror drawer) agrees not to ino epebteess on ave Cate holder an election to require som sn tes of payment of money — ‘othe general rule that a negotiable soument is payable only in money. Under this instrament ine payee or holder (creditor) is given the paragraph Me ee between delivery of goods and/or oanemes in iew of money. However, if the choice is on Se inet Soe negotiable for being contrary to Section 1b) () Gives be done in exception set 1 ry ‘non °F pay of el ler the option ether to rg re payment require the maker to serve asthe boner der for 30 days’ iaity and negotiable character ofan instrument are not affected by the fact ther: it is not dated; or EZ z (6) does not specify the value given, or that any value had been given therefor; or |(6} does not specify the place where it is drawn or the place where it is payable; or (4) bears a seal; or designates a particular kind of current money in which payment is to be made, But nothing in this section shall alter or repeal any statute requiring in certain cases the natare f the consideration to be stated in the 18. Permissible Omissions 50tiability of a bill or a note is hat the date and place of ‘and the place of payment or that it is payable in drawn and the date are usually ‘a the upper tight-hand corner of the ‘ther or both may be omitted. The wrt and date of maturity may also be “ffecting the validity of the paper. The Athen not specified in the instrument ‘gence or place of business. When ‘cifes no maturity date it is payable re lace of payment JS the maker's res the instrument SPC on demand. date is unimportant in a negotiable The lack of aX itis in terms payable on a certain if an instrument in this form were Jf would be an incomplete instrument which lund ave to be dealt with as provided in Section 13, tn some foreign jurisdictions, instruments under seal imposing obligations upon private individuals had bene held to be non-negotiable. However, foreign reoris have been unanimous in declaring obligations of corporations having attached thereto a seal as negotiable on the theory that the seal was not placed there to restrain their negotiability, but rather to stamp them as genuine. Republic Act No. 8183 (June 11, 1996) allows the parties to agree that an obligation or transaction shall be settled in any other currency at the time of payment. Section 1 of the law states: “All monetary obligations shall be settled in the Philippine currency 51 which is legal tender in the Phi parties may agree that the ol may a tion oF transac thal be sete in anyother currency at ae te wyment’* The law repealed ‘Rey ime of Hune 16, 1950) whieh Sccared sia 8 529 fs against public policy and thea at stipulation and of no legal effect 3s) "7 “Retefore null and void pines. However, the ‘The negotiability of an instrume, which payment is to be made” hegotiable instrument may be parable Means 8 current money, as in dollar bills or oes Ander — other current, Not destroyed if current money in | promise to pay to the order of PUS$100.00. (Sgd,) M | rok ded Go of cage en i ee he ales gees anime der at given therefor, does not indicate the places. of ccution and payment, and is Sana that it payable in Ifno date of execution is indicated the payee is to fil in the true date; valuable consiietion a presumed; if no date of maturity is stated it means the instrument is payable on demand; if no place of execution is provided, it means a bill is drawn or a 82Je where it is de isin means the instru ent se] pace of business oF residence of the usa po or wherever he can't Bar Question ‘Exam 1997 a exch mnge ora promissory note qualify as a lable See, 7. When payable on demand. instrument is payable on demand: (alWhen it is so expressed to be payable on demand, or at sight, or on presentation; or | yin which no time for payment is expressed. Qiinwns instrument is issued, accepted, or | indorsed when overdue, it is, as regards the person so issuing, accepting, or indorsing it, | payable on demand. 19, Payable On Demand Payable on demand means payable immediately when demanded by the payee or holder of the note or bill. If an instrument is payable on demand, the payee or holder may require payment anytime after issuance of the note, and the maker or drawee has the option to 9 Seta 7. pay anytime prior to demand or presentment. Refusal Of the payee or holder to accept payment will terminate any, but the obligation to the following notes are payable jise to pay to the order of P P10,000 on (2) I promise to pay to the order of P P10,000 at sight I promise to pay to the order of P P10,000 on presentation. (4) [promise to pay to the order of P P10,000. If the time for payment is left blank (as opposed to being omitted), it may properly be considered as an incomplete instrument and falis under the provisions of Sections 13, 14, or 15, depending on whether the instrument is delivered or not If the instrument is payable at a fixed time and the payee or holder fails to require payment on the stipulated date and the instrument becomes overdue, it becomes payable on demand as to the party who issued, accepted, or indorsed it when already overdue.!01 _ sareasonable time alter the ge his indorser if the note ___——__ se ¢o order. - The instrument | gs oe where it is drawn payable to fied person or to him or his payable to the order of: drawer, or drawee; sec. 8 seagate to © tre of ses te may be de tha reyee ‘who is not maker, {by The drawer or makers rea drawees Of gota ae | Te ore payee Joint oF Guocor some of several payees; OF Gne holder of an office for the time being, is payable to order, the ‘be named or otherwise indicated payee must Therein with reasonat 20. Payable To Order le to “A or order” or payable to the same legal effect, although .e between them. In the latter ere is no payee until A makes An instrument payabl the ‘order of AT have there is a bit of difference form, strictly speaking th fan onder to pay another person, yet legally A is the payee. An instrument payable to o indorsement of the holder on¢t > zotiated by ind completed by delivers to the indorsee.!3 Witho the order of” the instrament ores 10 Order orig person de rument is payable only co negotiable and is therefore non. Based on this section, thi payable to order: 11) Lpromise to pay Payee or order P10,000,00, promise to pay Maker or user ayy, Pay to Drawer ar order Pion pee ooo Pay to Drawee or order P10,000.00 (3) Pato A and Bor 000.00 (2 Pay tA ar B one 000.0 (7) Pay to the order of the ci ares current mayor of Manila ¢ following instruments are Where the maker is himself the oven creditor; hence, the anna Fe, he becomes his effect. An instrument payable to the oslo; oy St maker himself is not a completed instrunery te is indorsed by him to another person who beeen yt payee of the instrument. Ifthe indorsement gene ee the instrument is payable to bearer. On the wis hand, a bill drawn payable to the drawer's oun onter is complete without indorsement ed Joint payees are indicated by y 9 the conjunction ‘and to negotiate, all must indorse. Several peyecs oe indicated by the conjunction "or"; to neapiate: ee one of them may indorse. In the event the sige) 109 Section 30, Nl v8 ed Physcod Industries vs IFC ae Leasing GR. No, 72593, Ape 56made out to ing “ang” or sor’ the bank wi = Feasonable certainty. The payee can be an Fro he oe he Her of fe Te ur aa one, wold have he ht to payee does not purport to be the name of any oe Section 14 deals with an instrument wanting in any material particular. It says: “(W)here an instrument is wanting in any material particular, the person in possession thereof has prima facie authority to Complete it by filling up the blanks therein’. Hence, where a material particular is missing in an instrament payable to order, the one in possession has prima facie authority to complete it by filling up the blanks, provided it is filled up strictly in accordance with the authority given.!°7 Section 9), Section 14, s7 payable to bearer: ) When it is expressed to be so payable; or ) When it is payable to a person named therein or bearer; or (c) When it is payable to the order of a fictitious or non-existing person, and such fact was known to the person making it so payable; or (4) When the name of the payee does not purport to be the name of any person; or {e) When the only or last indorsement is an indorsement in blank. 21. Payable To Bearer to the order of the person or party ident negotiable instrument itself. Based on this section, the following i payable to bearer: Pay to bearer Pay to the order of bearer Pay to Pay to CASH Pay to the order of CASH Pay (o the order of P or bearer Pay to the order of White Ladly (+) (8) Pay to B= me? (a) seforeg’ mr (and) res ae narument i payable joing manners is @ ‘or non-existing person, and (maker or dete to bearer. This means that a payable ‘gueh payee, 18 payable to Bearer. This is a naine < onelusion, otherwise nobody would be entitled soue sum payable of it could give Some perso to tnt make a false indorsement in order to g ie instrument. A “fictitious person” is not iegreon having no legal existence. He may be an oeheg person who has no right to the instrument Cae he is obviously not the intended payee. cS iment is deemed payable to bearer. A check payable to the order of “Cash” is payable to bearer, ‘bank may pay the person presenting it for ment without the drawer’s indorsement.'°5 An payment waleyable to. bearer iS negotiated by delivery. , an instrument payable to order Under paragraph oe ose pe ‘0 bearer under the following ‘can become payal situations’ ‘When there is only one indorsement, and that indorsement is in blank; and 108 ang Tek ian CA, GR. Na 12516, September 25,1950. "0" Seton 30, IL 38 (2) When there are several indorsements, and the last indorsement is in blank!" A “blank indorsement” or an *indorsement in blank” ‘specifies no indorsee and an instrument so indorsed is payable to bearer, and may be ne; by mere delivery.!"1 A blank indorsement authorizes the holder to insert his own name or that of anyone else as indorsee, but under the statute a blank indorsement is a little more than that; it makes payable to bearer, though the holder, ‘own name or that of another person in the blank space above the indorsement, may change the instrument from one payable to bearer to one payable to a special indorsee or order.!!2 ‘See. 34. Special indorsement; indorsement in blank. -A | ‘special indorsement specifies the person to whom, or to Whose order, the instrument is to be payable, and the indorsement of such indorsee is necessary to the [furier negotiation of te instrument. An indorsementin blank specifies no indorsee, and an instrument so indorsed is payable to bearer, and may be negotiated by delivery, [Seq 35. Blank indorsement: Fow Changed Yo special indorsement. ~The holder ‘may convert “a. blank indorsement into a special indorscment writing over the signature of the indorser in blank ang eetact consistent with the character of the indorsement.aragraph holds that an instrument o the order of a particular person Badable to bearer by being indorsed in blank, Baap be payable to bearer if afterwards’ indorsed especially ‘The last pe payable 10 is section 9 should be read together with Secti which states: 40 “Sec 40. Indarsement of instrument payable to bearer, Where an instrument, payable to bearer, is indorsed Spectety it may nevertheless be furthe Pingu but the person indorsing speci iiorser to only such holders as make title through his indorsement._ 1 40 pertains to an instrument originally sectio payable to bearer but indorsed specially, It holds that Peentinues to be payable to bearer notwithstanding the special indorsement. Section 40 further states that “the person indorsing specially is liable as indorser to only such holders as make title through his ndersement.” The indorser of a bearer instrument ofa regular indorser under Section ‘Take note of the distinction between instruments payable to order but indorsed in blank?! and Instruments payable to bearer but indorsed specially. Mlustration 1; M issues a note which states, “I promise to pay to bearer P10,000.” P indorses the note speci a Mlustration 2: M issues a order of P P10, a subsequent hol ve loses the and the fi u finder sold purchaser. Can D disregard and claim payment thereon age ee A bearer instrument does tment does not itcan be negotiated by mere who becomes a holder. The ind oo Wales, in favor only of the poreacrser® Warranties are instrument, not to subsequent rarerrece ansferees.is = A negotiable instrument nt payable to bearer is the payee than one thai peyate ora Me cause an instrument payable to beat ‘baslealy, money in and of Hsely the document ag necessary (0 reeelve payment the matianet stolen, the thief would be to use it 7 payment thereon, ee However, bearer insruments have hi own be tmosily because they are easy to use and to transien Simply handing over the document of a Bence instrument Is efough to transr the huss med ‘his is fortunate fr ease uf use and uno Oe ose Stations in which the party fo pay i tele for instance, arse check might be mae ou oes 90 a- rpestowed upon any bearer instead of a be bestow" that it ca ee n the other hand, can ramen ae ee op Ing ued or payment A mentioned on the only of the pal erally safer than sndorsement they are generally het ent, AS SUC uments. instrament instrument yale bes Bar, questions 6 via joban 1997 B, Bihen spe ‘ar Exam 1997 umentt. A ders Deer ing fo D. st Gand Ctr rer and sory note payable to be ake Pera Page, Aurora Page, however, ‘Richard Clinton m divers the same to, Aurora endo 10 i gned Aurora Page sare 8 Con Noy on proceed against a i a Nin et Sorc Bar Boom 2001 le to B or bearer. A delivered ‘cue a priate payable 0B Dare. delivered due course, without 's to F of A, Band C. Sec. 10. Terms, when need not follow the 1a terms are sufficient intention to conform t. sufficient. - The instrument inguage of this Act, but any which clearly indicate an 'o the requirements hereof, 22. Terms When Sufficient Generally | @ negotiable instrument contains the nwing words of negotiability: ‘omise to pay to the order of Juan Cruz”, or romise to pay to Juan Cruz or order”; or wy to the order of Juan Cruz", or “Pay to Juan Cruz or order” However, the instrument need not follow the lan; of the law, Hence, {the Word *promise” may be substituted with the words “assure,” “covenant, “stipulate,” “vouch,” “vow” or closely similar meaning Sec. 11. Date, presumption as to. - Where the | instrument or an acceptance or any indorsement thereon is dated, such date is deemed prima facie to be the true date of the making, dravi acceptance, or indorsement, as the case may ,” “engage,” “undertake,” » €te., which carry the same 23. Presumption As To Date 16 Section 10, NIL 6a