NEGOTIABLE INSTRUMENTS LAW

Case Assignments
FORM AND INTERPRETATION: 1. The instrument in order to be considered negotiable, it must contain the so-called words of negotiability. What are these words? Salas vs. Court of Appeals, 181 SCRA 296 (1990) 2. How is the negotiability or non-negotiability of an instrument determined? Where the holder has alien on the instrument arising from contract, he is deemed a holder for value up to what extent? How does one negotiate an instrument, and in what manner? Caltex Phils. Inc. vs Court of Appeals, 212 SCRA 448. 3. How are persons writing their names on the face of the promissory notes treated? Astro Electronics Corp. vs Phil. Export and Foreign Loan Guarantee Corporation, 141 SCRA 462 (2003) 4. Under Section 29 of the NIL, what is the liability of an accommodation party? Is a note payable to a specific person covered by the Negotiable Instruments Law? Garcia vs Llamas, 417 SCRA 292 (2003) 5. What is the effect of a forged signature? Does payment made through or under such signature discharge the instrument? Samsung Construction Company Philippines, Inc. vs. Far East Bank and Trust Company. 436 SCRA 402 (2004). 6. Why is a forged signature considered as a real or absolute defense? BPI vs Casa Montessori Internationale, 430 SCRA 261, (2004). CONSIDERATION: 7. In actions based upon a negotiable instrument, is it necessary to aver or prove consideration? Ong vs People, 346 SCRA 117. 8. What is the presumption created under Section 24 of the NIL? Yang vs CA, 409 SCRA 159, (2003). 9. What kind of relationship exists between an accommodation party and that party accommodated party? Caneda, Jr. vs CA, 181 SCRA 762, (1990). 10. Can a holder of a check who is not a holder in due course sue the draweraccommodation party? Stelco marketing Corporation vs CA, 210 SCRA 51, (1992).

RIGHTS OF A HOLDER: 11. Who are considered holders in due course of bills, notes, and checks? Vicente R. De Ocampo & Co. vs Gatchalian, 3 SCRA 596 , (1961).

12. Can a holder of a bearer note who is not a holder in due course recover on the checks? Why? What is the limitation of his rights, if any? Chan Wan vs. Tan Kim, L-15380, Sept. 30, 1960. 13. What is the weight of evidence required in order to rebut presumption of a holder in due course? Travel-On Inc., vs CA, 210 SCRA 351, (1992). 14. What are the warranties of a person negotiating an instrument by delivery or by qualified indorsement? BPI vs CA, 326 SCRA 641, (2000). 15. To constitute sufficient presentment for payment, who should make the presentment? -Associated Bank vs CA, 208 SCRA 465, (1992). NOTICE OF DISHONOR: 16. Under what instances when a notice of dishonor is not required? What is the effect of delay in notice of dishonor? Great Asian Sales Center Corp. vs. CA, 381 SCRA 557, (2002). 17. Under the provisions of the NIL regarding the liability of a general indorser and the procedure for a notice of dishonor, what is the obligation of the drawee bank? Associated Bank vs Tan, 446 SCRA 282 ,( 2004) 18. To whom, and by whom, should notice of dishonor of a check be sent, and in what form? Rigor vs People, 442 SCRA 450,( 2004). 19. What is the effect of failure to send the notice of dishonor of an assigned check? Nyco Sales Corp. vs BA Finance Corporation, 200 SCRA 637 (1991).

BILLS OF EXCHANGE: 20. Are Letters of Credit and Trust Receipts considered as negotiable instruments? Lee vs CA, 375 SCRA 579 (2002) 21. When the bank pays a forged check, can said bank charge the amount so paid to the depositor? What is the liability of a collecting bank which indorses a check bearing a forged indorsement and presents it to the drawee bank? Why? Traders Royal Bank vs Radio Philippines Network, Inc., 390 SCRA 608 (2002) PROMISSORY NOTES AND CHECKS: 22. For allowing payment on the checks to a wrongful and fictitious payee, what is the liability of the drawee bank towards its depositor? BPI vs Cassa Montessori Internationale, 430 SCRA 261 (2004) 23. A bank which cashes a check drawn upon another bank, without requiring proof as to the identity of persons presenting it, or making inquiries with regard to them, can it hold the proceeds against the drawee when the proceeds of the checks were afterwards diverted to the hands of a third party? Why? PCIB vs CA , 350 SCRA 446 (2001)

24. Is failure of depositor to make prompt reconciliation of the monthly bank statements furnished by the bank constituting negligence? What is the recourse of said depositor against the bank in case depositors checks are forged? MWSS vs CA, 143 SCRA 20 (1986) 25. What is the effect of failure to present a managers check for payment within a reasonable time? International Corporate Bank vs. Gueco, 351 SCRA 516 (2001) 26. Does delivery of a check produce the effect of payment? Is it the same if the debtor is prejudiced by the delayed acceptance of a check? Pio Barreto Realty Development Corporation vs CA, 360 SCRA 127 (2001) 27. What are the effects of crossing a check? Associated Bank vs CA , 208 SCRA 465 (1992) 28. Does a memorandum check fall within the ambit of BP Blg. 22? People vs Nitafan, 215 SCRA 79 (1992) 29. Is a check, whether a managers check or an ordinary check, a legal tender? Does an offer of a check in payment of a debt considered as a valid tender of payment? Can the oblige or creditor refuse its receipt? PAL Inc. vs CA, 181 SCRA 557 (1990) 30. Under Section 193 of the NIL, how does one determine what is a reasonable time with respect to a negotiable instrument? International Corporate Bank vs Gueco, 351 SCRA 516 (2001).