SECTION 14

Mechanically incomplete
but Delivered
NOTE:

SECTION 15
Incomplete Instrument not
Delivered

SECTION 16
Mechanically Complete but
Undelivered

RIGHTS
Maker/Drawer

Not a holder in Due Course

If its his signature

he shall not be
liable if it was
wrongfully filled.
He shall be liable if
it was filled in with
valid authority

Prima facie
authority to fill up
the blank
Blank was
wrongfully filled
a. Not a holder in
due course
cannot enforce
the instrument if
the same is not
filled up strictly
in accordance

If its his signature

he shall not be
liable since it was
made without
authority, even
against holder in
due course

Invalidity is only with

reference to parties
whose signature
appears in the same
prior to delivery. As to
the parties whose
signature appears
after delivery, it may
be valid.

May revoke , cancel

or tear up the
instrument before
delivery
- Where the
instrument is no
longer in the
possession of a
party whose
signature appears
thereon, a valid and
intentional delivery
by him is presumed
until the contrary is
proved
- Where the instrument
is no longer in the
possession of a party
whose signature
appears thereon, a
valid and intentional
delivery by him is
presumed until the
contrary is proved
- NI incomplete and
revocable until
delivery for the

Holder in Due Course

with the
authority given
or within
reasonable time
b. He can enforce
the instrument
as completed as
against the
parties
subsequent to
the completion
but not against
those prior
thereto
Filled within authority
given: Can enforce
the instrument as
completed against
parties prior or
subsequent to the
completion
Prima facie authority
to fill up the blank
Can enforce the
instrument as
completed against
parties prior or
subsequent to the
completion

purpose of giving
effect thereto. As
between:
a. immediate parties
b. remote party other
than holder in due
course

Prima facie
presumption of
delivery which the
maker may rebut by
proof of non- delivery
Incomplete
instruments
entrusted to another
who wrongfully
completes and
negotiates to a holder

Conclusively
presumed that the
instrument was
validly delivered to
him and all the
parties prior to him
shall be liable.
No delivery, no
negligence or fault on
the maker/drawer,
there shall be no

in due course: is a
sufficient delivery to
bind the drawer or
make

DEFENSE

Personal Defense:
available only to holders
who are not holders in due
course

Real Defense:
- Possible defense of
a party whose
signature appears
on an instrument
prior to delivery is
that, as against him,
the instrument is
not valid for having
been incomplete
but undelivered
- Want of delivery of
a mechanically
incomplete
instrument
defense that can be
interposed against
one who is not a
holder in due course
and also a holder in
due course

liability, because its

wrongful seizure
cannot create against
his will a valid
contract where none
existed before.
Personal Defense
- Defense of a party
sought to be
charged is that the
instrument wasnt
delivered, or if
delivered wasnt
authorized or only
on a condition or for
a special purpose
- want of delivery of
a mechanically
complete
instrument is a
defense
- It can however be
interposed against
an immediate party
and remote parties
not holders in due
course in as much
as the presumption
of valid (real
defense?)
intentional delivery
is only rebuttable as

to immediate
parties and to
remote parties who
are not holders in
due course
http://www.batasnatin.com/law-library/mercantile-law/negotiable-instruments/923-when-may-blanks-be-filled-in-anegotiable-instrument.html
http://www.batasnatin.com/law-library/mercantile-law/negotiable-instruments/925-incomplete-and-undeliverednegotiable-instrument.html
http://www.batasnatin.com/law-library/mercantile-law/negotiable-instruments/926-outline-of-rules-on-delivery-ofnegotiable-instruments.html

Parties standing in immediate relation i.e. parties in direct relation with each other are:
1) The drawer of a bill of exchange stands in immediate relation with the acceptor.
2) The maker of a promissory note, bill of exchange or cheque stands in immediate relation with the payee.
3) The indorser stands in immediate relation with his indorsee and the holder. All other parties are remote.
4) Other signors may by agreement stand in immediate relation with a holder.
All other parties are remote.
http://www.citeman.com/10809-immediate-parties.html
IMMEDIATE PARTIES: who are immediate in the sense of having or being held to know of the conditions or limitaions
placed upon the delivery of the instrument. Privity / proximity
REMOTE PARTIES: who are not direct contractual relation to each other.