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NIL Final Syllabus
NIL Final Syllabus
I. INTRODUCTION
1. History, Governing Laws (Act. 2031, Code of Commerce, New Civil Code)
c. What is Legal Tender, [Sec. 52, 60, New Central Bank Act; BSP Circular no. 537, (2006)]
e. Treasury Warrants
Read: Metropolitan Bank vs. CA, 194 SCRA 169 (1991)
Read: Caltex (Philippines) vs. CA, 212 SCRA 448, Aug. 10, 1992
2. Effect of Estoppel
Read: Banco de Oro vs. Equitable Banking Corp.; 157 SCRA 188 (1988)
Phil. Bank of Commerce vs. Aruego, 102 SCRA 530, Jan. 31, 1981
a. must be in writing and signed by the maker or drawer (Sec. 191, NIL)
b. must contain an unconditional promise or order to pay a sum certain in money
i. promise or order to pay (Sec. 1, NIL)
ii. promise or order must be unconditional
2. period
4. sum certain in money (sec. 2, 5d, 6e, NIL; CB Circular 799, July 1, 2013; Art. 2209, Civil
Code; acceleration, insecurity, extension clauses)
Read: Metropolitan Bank vs. CA, 194 SCRA 169, Feb. 18, 1991
e. drawee must be named or indicated with reasonable certainty Sec. 1e, 130, NIL; Sec. 128, NIL
Read: Sesbreno vs. CA, 222 SCRA 466, May 24, 1993
Consolidated Plywood vs. IFC Leasing, 149 SCRA 448, April 30, 1987
Traders Royal Bank vs. CA, 269 SCRA 16, March 3, 1997
Read: Manuel Lim vs. CA, 251 SCRA 409, Dec. 19, 1995
Dela Victoria vs. Burgos, 245 SCRA 374, June 27, 1995
Development Bank of Rizal vs. Sima Wei, 217 SCRA 743, March 9, 1993
e. Absolute Indorsement
f. Joint Indorsement (Sec. 41, NIL)
g. Irregular Indorsement (Sec. 64, NIL)
IV. HOLDERS
Read: Chan Wan vs. Tan Kim, 109 Phil 706, Sept. 30, 1960
Atrium Management vs. CA, 144 SCAD 390, Feb. 28, 2001
Marcelo Mesina vs. CA, 145 SCRA 497, Nov. 13, 1986
2. Holders in Due Course (Sec. 52, 53, 54, 55, 56, 88, NIL)
e. good faith
Read: Equitable Banking vs. Special Steel, GR 175350, June 13, 2012
De Ocampo vs. Gatchalian, 3 SCRA 596, Nov. 30, 1961
Yang vs. CA, No. 138074, Aug. 15, 2003
Bataan Cigar vs. CA, 230 SCRA 643 (1994)
Stelco Marketing vs. CA, 210 SCRA 51, June 17, 1992
Go vs. Metropolitan Bank, GR No. 168842, Aug. 11, 2010
4. Rights of Holders in Due Course (Sec. 14, 16, 57, NIL); When Subject to Original Defenses (Sec. 58, NIL)
Read: Salas vs. CA, 181 SCRA 296
State Investment House vs. CA, 175 SCRA 311, July 13, 1989
Prudencio vs. CA, 143 SCRA 7, July 14, 1986
Stelco Marketing vs. CA, GR No. 96160, June 17, 1992
5. Rights of Holders Not in Due Course (Sec. 14, 16, 51, 53, NIL)
6. Accommodation Parties, Sec. 29, NIL)
1. Primary and Secondary Liability Distinguished (Sec. 61, 66, 192, NIL)
2. Payment by Party Secondarily Liable (Sec. 68, 70, 84, 89, 118, 120, 151, 184, NIL)
3. Liability vs. Warranties
4. Liability and/or Warranties of Parties
Read: Ang Tiong vs. Ting, 22 SCRA 713, Feb. 22, 1968
People vs. Maniego, 148 SCRA 30, Feb. 27, 1987
4
VI. DEFENSES
2. Real Defenses
a. Minority and Ultra Vires Acts (Sec. 22, NIL)
i. Defense of Minority not Total (See Art. 1341, New Civil Code)
Read: Atrium Management Corp. vs. CA, GR 109491, Feb. 28, 2001
Crisologo-Jose vs. CA, GR. 80599, Sept. 1989
1988
Westmont Bank vs. Eugene Ong, GR 132250, Jan. 30, 2002
Ilusorio vs. CA, GR 139130, Nov. 27, 2002
Traders Royal Bank vs. RPN, GR 138510, Oct. 10, 2002
BPI vs. CA
Bank of America vs. Associated Citizens Bank, May 21, 2009
f. Extinctive Prescription
Read: PCIB vs. CA, 350 SCRA 446
Papa vs AU Valencia, 284 SCRA 643, Jan. 23, 1998
g. Illegality
3. Personal Defenses
a. Ante-dating or post-dating (Sec. 12, NIL)
b. Insertion of Wrong Date (Sec. 13, NIL)
c. Filing up Blanks Beyond Authority (Sec. 14, NIL)
e. Simple Fraud, Duress, Intimidation, Force or Fear, Illegality of Consideration, Breach of Faith (Sec. 55,
56, 57, NIL)
g. Fraud in Inducement
Read: Great Eastern Insurance vs. Hongkong and Shanghai Banking Corp., GR 18657,
Aug. 23, 1922
Quirino Gonzalez Logging vs. CA, GR 126568, April 20, 2003
i. Promissory Notes
b. if dishonored by non-acceptance
a. fixed date
b. payable on demand
c. payable at a bank (Sec. 75, NIL)
f. Liability of Person Secondarily Liable When Instrument Dishonored (Sec. 84, NIL)
Read: Crisologo-Jose vs. CA, Sept. 15, 1989
Salas vs. CA, Jan. 22, 1990
PNB vs. CA, Jan. 22, 1990
Associated Bank vs. CA, Jan. 31, 1996
Great Eastern vs. Hong Kong Shanghai Bank, Aug. 23, 1922
Republic vs. Ebrada, July 31, 1975
PNB vs. Quimpo, March 14, 1988
Gempesaw vs. CA, Feb. 9, 1993
PCI Bank vs. CA, 350 SCRA 446
Papa vs. AU Valencia, 284 SCRA 643
Far East Realty vs. Cam, 166 SCRA 256 (1988)
McGuire vs Province of Samar, GR L-8155, Oct. 23, 1956
Asia Banking vs. Javier, GR 19051, April 1923
Gullas vs. PNB, GR 43191, Nov. 13, 1935
Nyco Sales vs. BA Finance, 200 SCRA 637, 1991
Great Asian Sales vs. CA, GR 105774, April 25, 2002
Luis Wong vs CA, GR 117857, Feb. 2, 2001
a. how made (Sec. 132, 133-135, 137, 145, 72, 75, NIL)
k. Protest
a. Concept of Discharge
b. How Instrument Discharged (Sec. 119, 120, NIL)
iv. any act that discharges simple contracts (Art. 1231, Civil Code)
v. principle debtor becomes holder
IX. CHECKS
d. Kinds of Checks
i. cashier’s check and manager’s check (See BSP Circular 259 series of 2000, and Circular 291,
series of 2001)
ii. certified check (Sec. 187-189, NIL)
Read: New Pacific Timber vs. Hon. Seneris, Dec. 19, 1980
PNB vs. National City Bank of New York, 63 Phil 711
i. Pertinent Philippine Clearing House Corp. rules; RA 7653, New Central Bank Act, Sec. 102
i. relationship of parties
ii. warranties
iii. 24-hour rule
iv. iron clad rule for cashier’s checks
Read: Mesina vs. IAC