Documente Academic
Documente Profesional
Documente Cultură
Memory Aid
Written contract for the payment of money, by its form intended as substitute for money and
intended to pass from hand to hand to give the holder in due course the right to hold the same
and collect the sum due
PROMISSORY NOTE
unconditional promise in writing made by one person to another signed by the maker
engaging to pay on demand, or at a fixed or determinable future time a sum certain in money to
order or to bearer
where a note is drawn to the makers own order, it is not complete until indorsed by him
BILL OF EXCHANGE
1.
2.
3.
4.
1.
2.
3.
1.
2.
unconditional order in writing addressed by one person to another signed by the person giving it
requiring the person to whom its addressed to pay on demand or at a fixed or determinable
future time a sum certain in money to order or to bearer
check: bill of exchange drawn on a bank payable on demand. Kinds of checks:
personal check
managers/cashiers check drawn by a bank on itself. Issuance has the effect of acceptance
memorandum check memo is written across its face, signifying that drawer will pay holder
absolutely without need of presentment
crossed check
effects:
check may not be encashed but only deposited in bank
may be negotiated only once, to one who has an acct. with a bank
warning to holder that check has been issued for a definite purpose so that he must inquire if he
received check pursuant to such purpose, otherwise not HDC
kinds:
general (no word between lines, or co between lines)
special (name of bank appearing between parallel lines)
BEARER
HOLDER
Payee or indorsee of a bill or note who is in possession of it, or the bearer thereof.
issue
negotiation
presentment for acceptance in certain bills
acceptance
dishonor by on acceptance
presentment for payment
dishonor by nonpayment
notice of dishonor
protest in certain cases
discharge
NEGOTIABILITY
REQUISITES
1.
1.
no person liable on the instrument whose signature does not appear thereon ( subject to exceptions)
1.
1.
an indication of a particular fund out of which reimbursement to be made, or a particular account to be debited with amount, or
one who signs in a trade or assumed name liable to the same extent as if he had signed in his own name
signature of any party may be made by a duly authorized agent, no particular form of appt. necessary
1.
1.
2.
with interest, or
by stated installments, or
3.
4.
by stated installments with a provision that upon default in payment of any installment/interest, the whole shall become due, or
with exchange, whether at a fixed rate or at the current rate, or
5.
with costs of collection or an attorneys fee, in case payment not made at maturity
1.
3.
payable on demand,
where an instrument is issued, accepted or indorsed when overdue, it is, as regards the person so issuing, accepting, or indorsing it,
payable on demand
* relate to sec. 11 ( presumption as to date) and sec. 17 (construction where instrument ambiguous)
* note effect of acceleration provisions, p. 30 Campos
* note effect of provisions extending time of payment, p. 40 Campos
1.
4.
where it is drawn payable to the order of a specified person or to him or his order. May be drawn payable to order of
payable to order
1.
2.
3.
drawer or maker, or
drawee, or
4.
5.
when the instrument is payable to order the payee must be named or otherwise indicated therein with reasonable certainty
or bearer,
1.
5.
bill may be addressed to two or more drawees jointly, whether partners or not, but not to two or more drawees in the alternative or in
succession
1.
2.
drawee is fictitious/incapacitated
3.
4.
restrictively indorsed
discharged by payment or otherwise
Section 1. Uniform procedure. The procedure in the Municipal Trial Courts shall be the same as
in the Regional Trial Courts, except (a) where a particular provision expressly or impliedy applies
only to either of said courts, or (b) in civil cases governed by the Rule on Summary Procedure.
Section 2. Meaning of terms. The term Municipal Trial Courts as used in these rules shall
include Metropolitan Trial Courts, Municipal Trial Courts in Cities, Municipal Trial Courts, and
Municipal Circuit Trial Courts.
1.
1.
1.
* if in the hand of any holder (note definition of holder) other than a HDC, vulnerable to same
defenses as if non-negotiable
DEFENSES
1. INCAPACITY: real; indorsement/assign by corp/infant: passes property but corp/infant no
liability
1. ILLEGALITY: personal, even if no K because void under CC 1409
1. FORGERY: real (lack of consent):
1. forged
2. made without authority of person whose signature it purports to be.
General Rule:
1. wholly inoperative
2. no right to retain instrument, or give discharge, or enforce payment vs. any party, can be
acquired through or under such signature (unless forged signature unnecessary to holders title)
Exception:
unless the party against whom it is sought to enforce such right is precluded from setting up
forgery/want of authority
precluded:
1. parties who make certain warranties, like a general indorser or acceptor
2. estopped/negligent parties
1.
2.
1.
2.
3.
4.
5.
overdraft
stop payment order
forged indorsements
MATERIAL ALTERATION
Where NI materially altered w/o assent of all parties liable thereon, avoided, except as vs. a
party who has himself made, authorized or assented to alteration
and subsequent indorsers.
But when an instrument has been materially altered and is in the hands of a HDC not a party to
the alteration, HDC may enforce payment thereof according to orig. tenor
Material Alteration
change date
sum payable, either for principal or interest
time of payment
number/relations of parties
medium/currency of payment, adds place of payment where none specified, other
change/addition altering effect of instrument in any respect.
*material alteration a personal defense when used to deny liability according to org. tenor of
instrument, but real defense when relied on to deny liability according to altered terms.
1.
2.
3.
1.
1.
1.
FRAUD
fraud in execution: real defense (didnt know it was NI)
fraud in inducement: personal defense (knows its NI but deceived as to value/terms)
DURESS
Personal, unless so serious as to give rise to a real defense for lack of contractual intent
COMPLETE, UNDELIVERED INSTRUMENT
Personal defense (sec. 16)
If instrument not in poss. Of party who signed, delivery prima facie presumed
If holder is HDC, delivery conclusively presumed
INCOMPLETE, UNDELIVERED INSTRUMENT
Real defense (sec. 15)
Instrument will not, if completed and negotiated without authority, be a valid contract in the
hands of any holder, as against any person whose signature was placed thereon before delivery
1. Liability of Maker
2. Promises to pay it according to its tenor
3. admits existence of payee and his then capacity to indorse
1.
2.
3.
4.
Liability of Acceptor
Promises to pay inst according to its tenor
Admits the following:
existence of drawer
genuineness of his signature
his capacity and authority to draw the instrument
existence of payee and his then capacity to endorse
1.
2.
1.
2.
3.
4.
SECONDARY PARTIES
Liability of Drawer
Admits existence of payee and his then capacity to endorse
Engages that on due presentment instrument will be accepted, or paid, or both, according to its
tenor and that
5. If it be dishonored, and the necessary proceedings on dishonor be duly taken, he will pay the
amount thereof to the holder or to an subsequent indorser who may be compelled to pay it
1.
1.
2.
3.
drawer may insert in the instrument an express stipulation negativing / limiting his own liability
to holder
Liability of Indorsers:
Qualified Indorser and one Negotiating by Delivery
Instrument genuine, in all respects what it purports to be
good title
all prior parties had capacity to contract
4. he had no knowledge of any fact w/c would impair validity of instrument or render it valueless
in case of negotiation by delivery only, warranty only extends in favor of immediate transferee
1.
2.
3.
4.
1. Liability of an Agent
Signature of any party may be made by duly authorized agent, establish as in ordinary agency
Where instrument contains or a person adds to his signature words indicating that he signs for or
on behalf of a principal, he is not liable on the instrument if he was duly authorized, but the
mere addition of words describing him as an agent without disclosing his principal, does not
exempt from personal liability.
Signature per procuration operates as notice that the agent has but a limited authority to sign,
and the principal is bound on ly in case the agent in so signing acted within the actual limits of
his authority
Where a broker or agent negotiates an instrument without indorsement, he incurs all liabilities
in Sec. 65, unless he discloses name of principal and fact that hes only acting as agent
Reasonable Time
Must consider
1. nature of instrument
2. usage of trade or business with respect to instrument
3. facts of each case
Date of presentment
Where instrument not payable on demand: presentment must be made on date it falls due
Where payable on demand: presentment must be made within reasonable time after issue,
except that in case of a bill of exchange, presentment for payment will be sufficient if made
within a reasonable time after last negotiation (but note: though reasonable time from last
negotiation, it may be unreasonable time from issuance thus holder may not be HDC under sec.
71)
Check must be presented for payment within reasonable time after its issue or drawer will be
discharged from liability thereon to extent of loss caused by delay
Notice of Dishonor
General rule: to drawer and to each indorser, and any drawer or indorser to whom such notice is
not given is discharged
Form, Contents, Time Sec. 95, 96, 102, 103, 104, 105, 106, 108, 113
By Whom Given
By or on behalf of the holder or any party to the instrument who may be compelled to pay it to
the holder, and who, upon taking it up, would have a right to reimbursement from the party to
whom the notice is given
Notice of dishonor may be given by an agent either in his own name or in the name of any party
entitled to give notice, whether that party be his principal or not
Where instrument has been dishonored in hands of agent, he may either himself give
notice to the parties liable thereon, or he may give notice to his principal (as if agent an
independent holder)
Protest
Definition: testimony of some proper person that the regular legal steps to fix the liability of
drawer and indorsers have been taken
Rule 57
Sec. 1. Grounds upon which attachment may issue. At the commencement of the action or at
any time before entry of judgment, a plaintiff or any proper party may have the property of the
adverse party attached as security for the satisfaction of any judgment that may be recovered in
the following cases:
(a) In an action for the recovery of a specified amount of money or damages, other than
moral and exemplary, on a cause of action arising from law, contract, quasi-contract, delict or
quasi-delict against a party who is about to depart from the Philippines with intent to defraud
his creditors;
(b) In an action for money or property embezzled or fraudulently misapplied or converted
to his own use by a public officer, or an officer of a corporation, or an attorney, factor, broker,
agent, or clerk, in the course of his employment as such, or by any other person in a fiduciary
capacity, or for a willful violation of duty;
Sec. 2. Issuance and contents of order. An order of attachment may be issued either ex-parte
or upon motion with notice and hearing by the court in which the action is pending, or by the
Court of Appeals or the Supreme Court, and must require the sheriff of the court to attach so
much of the property in the Philippines of the party against whom it is issued, not exempt from
execution, as may be sufficient to satisfy the applicants demand, unless such party makes
deposit or gives a bond as hereinafter provided in an amount equal to that fixed in the order,
which may be the amount sufficient to satisfy the applicants demand or the value of the
property to be attached as stated by the applicant, exclusive of costs. Several writs may be
issued at the same time to the sheriffs of the courts of different judicial regions.
Where the basis for the application of a writ of attachment is embezzlement of money or property
committed by a defendant who is an officer of a corporation, a public officer, or an atorney,
factor, broker or agent or clerk of the plaintiff, it is not necessary to establish his fiduciary
capacity before the writ is granted as such fiduciary capacity is assumed from the nature of his
position. it is only when the misappropriation was committed by any other person that his
fiduciary relationship with the plaintiff will have to be established. Such relationship does not
have to be shown because it suffices that the questioned acts of employing illegal machinations in
obtaining enormous credit facilities for the corporation were committed by the officers of UPLFC
in the course of their duties and not by any other person in a fiduciary capacity.
Sec. 3. Affidavit and bond required. An order of attachment shall be granted only when it
appears by the affidavit of the applicant, or some other person who personally knows the facts,
that a sufficient cause of action exists, that the case is one of those mentioned in section 1
hereof, that there is no other sufficient security for the claim sought to be enforced by the
action, and that the amount due to the applicant, or the value of the property the possession of
which he is entitled to recover, is as much as the sum for which the order is granted above all
legal counterclaims. The affidavit, and the bond required by the next succeeding section, must
be duly filed with the court before the order issues.
Sec. 4. Condition of applicants bond. The party applying for the order must thereafter give
a bond executed to the adverse party in the amount fixed by the court in its order granting the
issuance of the writ, conditioned that the latter will pay all the costs which may be adjudged to
the adverse party and all damages which he may sustain by reason of the attachment, if the
court shall finally adjudge that the applicant was not entitled thereto.
Bond undertaking done by the surety that it will pay the damages in case the party guaranteed
does not comply with the orders of the court.
Sec. 5. Manner of attaching property. The sheriff enforcing the writ shall without delay and
with all reasonable diligence attach, to await judgment and execution in the action, only so much
of the property in the Philippines of the party against whom the writ is issued, not exempt from
execution, as may be sufficient to satisfy the applicants demand, unless the former makes a
deposit with the court from which the writ is issued, or gives a counter-bond executed to the
applicant, in an amount equal to the bond fixed by the court in the order of attachment or to the
value of the property to be attached, exclusive of costs. No levy on attachment pursuant to the
writ issued under section 2 hereof shall be enforced unless it is preceded, or contemporaneously
accompanied, by service of summons, together with a copy of the complaint, the application for
attachment, the applicants affidavit and bond, and the order and writ of attachment, on the
defendant within the Philippines.
The requirement of prior contemporaneous service of summons shall not apply where the
summons could not be served personally or by substituted service despite diligent efforts, or the
defendant is a resident of the Philippines temporarily absent therefrom, or the defendant is a
non-resident of the Philippines, or the action is one in rem or quasi in rem.
Oate v. Abrogar
230 SCRA 181
Facts:
Held: Writ of preliminary attachment may be validly applied for and granted even before the
defendant is summoned or is heard from.
Enforcement of the preliminary attachment is valid even if it preceded the actual service of
summons where a previous attempt to serve the summons and the writ of attachment failed due
to factors beyond the control of either the plaintiff or the process server.
Reasons:
1. Defendant may put his property beyond the reach of the plaintiff while the latter is trying to
serve the summons and the writ anew.
2. Court eventually acquired jurisdiction over the plaintiffs (6 days later).
3. Ease by which a writ of attachment can be obtained is counter-balanced by the ease with which
the same can be discharged. To discharge writ of preliminary attachment, defendant simply has to
make a cash deposit or post a counter-bond equivalent to the value of the property attached.
Sec. 6. Sheriffs return. After enforcing the writ, the sheriff must likewise without delay make
a return thereon to the court from which the writ issued, with a full statement of his
proceedings under the writ, and a complete inventory of the property attached, together with
any counter-bond given by the party against whom attachment is issued, and serve copies thereof
on the applicant.
Sec. 7. Attachment of real and personal property; recording thereof. Real and personal
property shall be attached by the sheriff executing the writ in the following manner:
(a) Real property, or growing crops thereon, or any interest therein, standing upon the
records of the registry of deeds of the province in the name of the party against whom
attachment is issued, or not appearing at all upon such records, or belonging to the party against
whom attachment is issued and held by any other person, or standing on the records of the
registry of deeds in the name of any other person, by filing with the registry of deeds a copy of
the order, together with a description of the property attached, and a notice that it is attached,
or that such real property and any interest therein held by or standing in the name of such other
person are attached, and by leaving a copy of such order, description, and notice with the
occupant of the property, if any, or with such other person or his agent if found within the
province. Where the Land Registration Act or the Property Registration Decree, the notice shall
contain a reference to the number of the certificate of title, the volume and page in the
registration book where the certificate is registered, and the registered owner or owners
thereof.
The registrar of deeds must index attachments filed under this section in the names of
the applicant, the adverse party, or the person by whom the property is held or in whose name it
stands in the records. If the attachment is not claimed on the entire area of the land covered by
the certificate of title, a description sufficiently accurate for the identification of the land or
interest to be affected shall be included in the registration of such attachment;
(b) Personal property capable of manual delivery, by taking and safely keeping it in his
custody, after issuing the corresponding receipt therefor;
(c) Stocks or shares, or an interest in stocks or shares, of any corporation or company, by
leaving with the president or managing agent thereof, a copy of the writ, and a notice stating
that the stock or interest of the party against whom the attachment is issued is attached in
pursuance of such writ;
(d) Debts and credits, including bank deposits, financial interest, royalties, commissions
and other personal property not capable of manual delivery, by leaving with the person owing
such debts, or having in his possession or under his control, such credits or other personal
property, or with his agent, a copy of the writ, and notice that the debts owing by him to the
party against whom attachment is issued, and the credits and other personal property in his
possession or under his control, belonging to said party, are attached in pursuance of such writ;
(e) The interest of the party against whom attachment is issued in the property belonging
to the estate of the decedent, whether as heir, legatee, or devisee, by serving the executor or
administrator or other personal representative of the decedent with a copy of the writ and
notice that said interest is attached. A copy of said writ of attachment and of said notice shall
also be filed in the office of the clerk of court in which said estate is being settled and served
upon the heir, legatee or devisee concerned.
If the property sought to be attached is in custodia legis, a copy of the writ of
attachment shall be filed with the proper court or quasi-judicial agency, and notice of the
attachment served upon the custodian of such property.
Properties subject to attachment
Manner of attachment
Sec. 8. Effect of attachment of debts, credits and all other similar personal property. All
persons having in their possession or under their control any credits or other similar personal
property belonging to the party against whom attachment is issued, or owing any debts to him, at
the time of service upon them of the copy of the writ of attachment and notice as provided in
the last preceding section, shall be liable to the applicant for the amount of such credits, debts
or other similar personal property, until the attachment is discharged, or any judgment
recovered by him is satisfied, unless such property is delivered or transferred, or such debts are
paid, to the clerk, sheriff, or other proper officer of the court issuing the attachment.
orders and processes of the trial court with a view to the complete satisfaction of the judgment of
the court.
Garnishment of third party liability insurance contract may be effected from the moment the
insured became liable to the third person for it is also at that moment that the insured acquired
an interest in the insurance contract. Such interest may be garnished like any other credit. It is
not necessary that the insured has effected payment to the injured third person in order that the
obligation of the insurer may arise.
Sec. 10. Examination of party whose property is attached and persons indebted to him or
controlling his property; delivery of property to sheriff. Any person owing debts to the party
whose property is attached or having in his possession or under his control any credit or other
personal property belonging to such party, may be required to attend before the court in which
the action is pending, or before a commissioner appointed by the court, and be examined on oath
respecting the same. The party whose property is attached may also be required to attend for
the purpose of giving information respecting his property, and may be examined on oath. The
court may, after such examination, order personal property capable of manual delivery belonging
to him, in the possession of the person so required to attend before the court, to be delivered to
the clerk of court of sheriff on such terms as may be just, having reference to any lien thereon or
claim against the same, to await the judgment in the action.
Sec. 11. When attached property may be sold after levy on attachment and before entry of
judgment. Whenever it shall be made to appear to the court in which the action is pending,
upon hearing with notice to both parties, that the property attached is perishable, or that the
interests of all the parties to the action will be subserved by the sale thereof, the court may
order such property to be sold at public auction in such manner as it may direct and the proceeds
of such sale to be deposited in court to abide the judgment in the action.
Sec. 12. Discharge of attachment upon giving counter-bond. After a writ of attachment has
been enforced, the party whose property has been attached or the person appearing on his
behalf, may move for the discharge of the attachment wholly or in part on the security given.
The court shall, after due notice and hearing, order the discharge of the attachment if the
movant makes a cash deposit, or files a counter-bond executed to the attaching party with the
clerk of the court where the application is made an amount equal to that fixed by the court in
the order of attachment, exclusive of costs. But if the attachment is sought to be discharged
with respect to a particular property, the counter-bond shall be equal to the value of that
property as determined by the court. In either case, the cash deposit or the counter-bond shall
secure the payment of any judgment that the attaching party may recover in the action. A notice
of the deposit shall forthwith be served on the attaching party. Upon the discharge of the
attachment in accordance with the provisions of this section, the property attached, or the
proceeds of any sale thereof, shall be delivered to the party making the deposit or giving the
counter-bond, or to the person appearing on his behalf, the deposit or counter-bond aforesaid
standing in place of the property so released. Should such counter-bond for any reason be found
to be or become insufficient, and the party furnishing the same fail to file an additional counterbond, the attaching party may apply for a new order of attachment.
199 SCRA
Where the order lifting of the writ of attachment was improperly issued as the attaching creditor
was not allowed to oppose the application for the discharge of the attachment by counteraffidavit or other evidence, such order is void and does not have any effect at all to the writ of
attachment. The writ continued to be valid from its issuance since the judgment had not been
satisfied , nor has there been a valid discharge thereof either by the filing of a counter-bond or
for improper or irregular issuance.
Sec. 14. Proceedings where property claimed by third person. If the property attached is
claimed by any person other than the party against whom attachment had been issued or his
agent, and such person makes an affidavit of his title thereto, or right to the possession thereof,
stating the grounds of such right or title, and serves such affidavit upon the sheriff while the
latter has possession of the attached property, and a copy thereof upon the attaching party, the
sheriff shall not be bound to keep the property under attachment, unless the attaching party or
his agent, on demand of the sheriff, shall file a bond approved by the court to indemnify the
third-party claimant in a sum not less than the value of the property levied upon. In case of
disagreement as to such value, the same shall be decided by the court issuing the writ of
attachment. No claim for damages for the taking or keeping of the property may be enforced
against the bond unless the action therefor is filed within one hundred twenty (120) days from
the date of the filing of the bond.
The sheriff shall not be liable for damages for the taking or keeping of such property, to
any such third-party claimant, if such bond shall be filed. Nothing herein contained shall prevent
such claimant or any third person from vindicating his claim to the property, or prevent the
attaching party from claiming damages against a third-party claimant who filed a frivolous or
plainly spurious claim, in the same or separate action.
When the writ of attachment is issued in favor of the Republic of the Philippines, or any
officer duly representing it, the filing of such bond shall not be required, and in case the sheriff
is sued for damages as a result of the attachment, he shall be represented by the Solicitor
General, and if held liable therefor, the actual damages adjudged by the court shall be paid by
the National Treasurer out of the funds to be appropriated for the purpose.
Sec. 15. Satisfaction of judgment out of property attached; return of sheriff. If judgment be
recovered by the attaching party and execution issue thereon, the sheriff may cause the
judgment to be satisfied out of the property attached, if it be sufficient for that purpose in the
following manner:
(a) By paying to the judgment obligee the proceeds of all sales of perishable or other
property sold in pursuance of the order of the court or so much as shall be necessary to satisfy
the judgment;
(b) If any balance remains due, by selling so much of the property, real or personal, as
may be necessary to satisfy the balance, if enough for that purpose remain in the sheriffs hands,
or in those of the clerk of the court;
(c) By collecting from all persons having in their possession credits belonging to the
judgment obligor, or owing debts to the latter at the time of the attachment of such credits or
debts, the amount of such credits and debts as determined by the court in the action, and stated
in the judgment, and paying the proceeds of such collection over to the judgment obligee.
The sheriff shall forthwith make a return in writing to the court of his proceedings under
this section and furnish the parties with copies thereof.
Sec. 16. Balance due collected upon execution; excess delivered to judgment obligor. If
after realizing upon all the property attached, including the proceeds of any debts or credits
collected, and applying the proceeds of any debts or credits collected, and applying the proceeds
to the satisfaction of the judgment, less the expenses of proceedings upon the judgment, less the
expenses of proceedings upon the judgment, any balance shall remain due, the sheriff must
proceed to collect such balance as upon ordinary execution. Whenever the judgment shall have
been paid, the sheriff, upon reasonable demand, must return to the judgment obligor the
attached property remaining in his hands, and any proceeds of the sale of the property attached
not applied to the judgment.
Sec. 17. Recovery upon the counter-bond. When the judgment has become executory, the
surety or sureties on any counter-bond given pursuant to the provisions of this Rule to secure the
payment of the judgment shall become charged on such counter-bond and bound to pay the
judgment obligee upon demand the amount due under the judgment, which amount may be
recovered from such surety or sureties after notice and summary hearing in the same action.
for the satisfaction of the judgment; and (3) that the surety be given notice and a summary
hearing in the same action as to his liability for the judgment under his counterbond.
Sec. 18. Disposition of money deposited. Where the party against whom attachment had been
issued has deposited money instead of giving counter-bond, it shall be applied under the
direction of the court to the satisfaction of any judgment rendered in favor of the attaching
party, and after satisfying the judgment the balance shall be refunded to the depositor or his
assignee. If the judgment is in favor of the party against whom attachment was issued, the whole
sum deposited must be refunded to him or his assignee.
Sec. 19, Disposition of attached property where judgment is for party against whom
attachment was issued. If judgment be rendered against the attaching party, all the proceeds
of sales and money collected or received by the sheriff, under the order of attachment, and all
property attached remaining in any such officers hands, shall be delivered to the party against
whom attachment was issued, and the order of attachment discharged.
Sec. 20. Claim for damages on account of improper, irregular or excessive attachment. An
application for damages on account of improper, irregular, or excessive attachment must be filed
before the trial or before appeal is perfected or before the judgment becomes executory, with
due notice to the attaching party and his surety or sureties, setting forth the facts showing his
right to damages and the amount thereof. Such damages may be awarded only after proper
hearing and shall be included in the judgment on the main case.
If the judgment of the appellate court be favorable to the party against whom
attachment was issued, he must claim damages sustained during the pendency of the appeal by
filing an application in the appellate court, with notice to the party in whose favor the
attachment was issued or his surety or sureties, before judgment of the appellate court becomes
executory. The appellate court may allow the application to be heard and decided by the trial
court.
Nothing herein contained shall prevent the party against whom the attachment was
issued from recovering in the same action the damages awarded to him from any property of the
attaching party not exempt from execution should the bond or deposit given by the latter be
insufficient or fail to fully satisfy the award.
Where a writ of attachment was issued and levied upon a property belonging to a third person not
party to the main action, said third person may file a separate action for damages. The rule that
recovery of damages on account of the issuance of a writ of attachment cannot be subject of a
separate action, is not applicable where damages are sought not because the writ of attachment
was illegally or wrongfully issued by the court, but because said writ was caused to levied upon
the property of the plaintiff which was not a party in the case where the attachment was issued.
1.
2.
3.
4.
5.
1.
2.
3.
Of the Instrument
payment in due course by or on behalf of principal debtor
Payment in due course:
made at or after maturity
to the holder thereof
in good faith and without notice that his title is defective
payment in due course by party accommodated where party is made/ accepted for
accommodation
intentional cancellation by holder
if unintentional or under mistake or without authority of holder, inoperative. Burden of proof
on party which alleges it was unintentional, etc.
any other act which discharges a simple contract
principal debtor becomes holder of instrument at or after maturity in his own right
renunciation of holder:
holder may expressly renounce his rights vs. any party to the instrument, before or after its
maturity
absolute and unconditional renunciation of his rights vs. principal debtor made at or after
maturity discharges the instrument
renunciation does not affect rights of HDC w/o notice.
Renunciation must be in writing unless instrument delivered up to person primarily liable
thereon
1. material alteration (sec. 124: material alteration w/o assent of all parties liable avoids
instrument except as against party to alteration and subsequent indorsers)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
1.
2.
Of secondary parties
any act which discharges the instrument
intentional cancellation of signature by holder
discharge of prior party
valid tender of payment made by prior party
release of principal debtor, unless holders right of recourse vs. 2ndary party reserved
any agreement binding upon holder to extend time of payment, or to postpone holders right to
enforce instrument, unless made with assent of party secondarily liable, or unless right of
recourse reserved.
Failure to make due presentment (sec. 70, 144)
failure to give notice of dishonor
certification of check at instance of holder
reacquisition by prior party
where instrument negotiated back to a prior party, such party may reissue and further
negotiate, but not entitled to enforce payment vs. any intervening party to whom he was
personally liable
where instrument is paid by party secondarily liable, its not discharged, but
the party so paying it is remitted to his former rights as regard to all prior parties
and he may strike out his own and all subsequent indorsements, and again negotiate instrument,
except
where its payable to order of 3rd party and has been paid by drawer
where its made/accepted for accommodation and has been paid by party accommodated.