Negotiable Instruments Law (NIL)
Syllabus
Atty. Catherine S. Amen
(Sunday, 9:00AM-12:00PM)
Reference: Notes and Cases on Banking Law and
Negotiable Instruments Law by Timoteo B. Aquino
I. General Consideration
a. Governing Law
b. History of NIL
c. Functions of Negotiable Instruments
Cases: BPI v. Spouses Royeca, G.R. No. 176664, 21 July 2008
Firestone Tire & Rubber Company of the Phil. v. CA, et al., G.R. No. 113236, 05 March 2001
Cebu International Finance Corp. v. CA and Alegre, G.R. No. 123031, 12 October 1999
Papa v. A.U. Valencia and Co., et al., G.R. No. 105188, 23 January 1998
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d. Features of Negotiable Instruments
e. Kinds of Negotiable Instruments
f. Parties to Negotiable Instruments
g. Distinguished from Non-Negotiable Instruments
Case: Sesbreño v. CA, et al., G.R. No. 89252, 24 May 1993
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h. Incidents or Stages in the Life of a Negotiable Instrument
II. Negotiability
a. How to Determine Negotiability
b. Effect of Estoppel
c. Requisites of Negotiability
Cases: Firestone Tire & Rubber Company of the Phil. v. CA, et al., G.R. No. 113236, 05 March 2001
Caltex (Philippines), Inc. v. CA and Security Bank, G.R. No. 97753, 10 August 1992
Metrobank v. CA, et al., G.R. No. 88866, 18 February 1991
Philippine Education Co., Inc. v. Soriano, et al., G.R. No. L-22405, 30 June 1971
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i. Must be in Writing signed by the maker or drawer
ii. Must contain an Unconditional Promise or Order to Pay a Sum Certain
in Money
iii. Payable on Demand or at a Fixed or Determinable Future Time
iv. Payable to Order or Bearer
Cases: PNB v. Rodriguez and Rodriguez, G.R. No. 170325, 26 September 2008
Ang Tek Lian v. CA, G.R. No. L-2516, 25 September 1950
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v. Identification of the Drawee
d. Omissions and Provisions that Do Not Affect Negotiability
Case: Ilano v. Espaol, et al., G.R. No. 161756, 16 December 2005
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III. Interpretation of Instruments
a. Rules that Apply in Case of Ambiguity
Cases: Spouses Evangelista v. Mercator Finance Corp., et al., G.R. No. 148864, 21 August 2003
Sapiera v. CA and Sua, G.R. No. 128927, 14 September 1999
People v. Romero, et al., G.R. No. 112985, 21 April 1999
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IV. Transfer and Negotiation
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a. Modes of Transfer
b. How Negotiation Takes Place
Case: BPI v. CA, et al., G.R. No. 136202, 25 January 2007
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c. Indorsement
Case: Far East Bank v. Gold Palace Jewellery Co., G.R. No. 168274, 20 August 2008
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d. Negotiation by Prior Party
e. Striking Out of Indorsement
f. Consideration for Issuance and Subsequent Transfer
V. Holders
a. Rights of Holders in General
b. Holders in Due Course
Cases: Dino v. Judal-Loot et al., G.R. No. 170912, 19 April 2010
Spouses Violago v. BA Finance Corp., et al., G.R. No. 158262, 21 July 2008
Hi-Cement Corp. v. Insular Bank of Asia and America, G.R. No. 132403, 28 September 2007
Yang v. CA, et al., G.R. No. 138074, 15 August 2003
Atrium Management Corp. v. CA, G.R. No. 109491, 28 February 2001
Mesina v. IAC, et al., G.R. No. 70145, 13 November 1986
Vicente R. De Ocampo & Co. v. Gatchalian, et al., G.R. No. L-15126, 30 November 1961
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i. Rights of Holders in Due Course
c. Shelter Rule
d. Rights of Holder in Bills in Set
VI. Parties Who Are Liable
a. Maker
Case: Astro Electronics Corp. and Roxas v. Philippine Export and Foreign Loan Guarantee Corp., G.R. No.
136729, 23 September 2003
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b. Drawer
c. Acceptor
Cases: Far East Bank v. Gold Palace Jewellery Co., G.R. No. 168274, 20 August 2008
Philippine Commercial International Bank v. CA, et al., G.R. No. 121413, 29 January 2001
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d. Indorser
Cases: Metrobank v. BA Finance and Malayan Insurance Co., G.R. No. 179952, 04 December 2009
Allied Banking Corporation v. Lim Sio Wan, Metrobank, G.R. No. 133179, 27 March 2008
Metrobank v. Philippine Bank of Communications, et al., G.R. No. 141408, 18 October 2007
Gonzales v. RCBC, G.R. No. 156294, 29 November 2006
BPI v. CA and Napiza, G.R. No. 112392, 29 February 2000
Sapiera v. CA and Sua, G.R. No. 128927, 14 September 1999
Metropol (Bacolod) Financing & Investment Corp. v. Sambok Motors, G.R. No. L-39641, 28 Feb. 1983
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e. Persons Negotiating by Delivery
f. Agent
Cases: Solidbank Corp. v. Mindanao Ferroalloy Corp., et al., G.R. No. 153535, 28 July 2005
Francisco v. CA, et al., G.R. No. 116320, 29 November 1999
The Philippine Bank of Commerce v. Aruego, G.R. Nos. L-25836-37, 31 January 1981
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g. Accommodation Parties
Cases: Aglibot v. Santia, G.R. No. 185945, 05 December 2012
Gonzales v. Philippine Commercial and International Bank, et al., G.R. No. 180257, 23 February 2011
Garcia v. Llamas, G.R. 154127, 08 December 2003
Agro Conglomerates, Inc. and Soriano v. CA, et al., G.R. No. 117660, 18 December 2000
Travel-On, Inc. v. CA and Miranda, G.R. No. L-56169, 26 June 1992
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Stelco Marketing Corp. v. CA, et al., G.R. No. 96160, 17 June 1992
Crisologo-Jose v. CA, et al., G.R. No. 80599, 15 September 1989
Sadaya v. Sevilla, G.R. No. L-17845, 27 April 1967
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VII. Defenses
a. Minority and Other Causes of Incapacity
b. Non-Delivery and Conditional Delivery
Cases: RCBC v. Hi-Tri Development Corp. and Luz Bakunawa, G.R. No. 192413, 13 June 2012
Bank of America NT & SA v. Philippine Racing Club, G.R. No. 150228, 30 July 2009
Dy v. People, G.R. No. 158312, 14 November 2008
Development Bank of Rizal v. Sima Wei, et al., G.R. No. 85419, 09 March 1993
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c. Filling Up Blanks Beyond Authority
d. Fraud
e. Material Alteration
Cases: Metrobank v. Cabilzo, G.R. No. 154469, 06 December 2006
The International Corporate Bank, Inc. v. CA, et al., G.R. No. 129910, 05 September 2006
PNB v. CA, et al., G.R. No. 107508, 25 April 1996
Montinola v. PNB, et al., G.R. No. L-2861, 26 February 1951
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f. Ante-Dating or Post-Dating
g. Insertion of a Wrong Date
h. Absence or Failure of Consideration
i. Duress and Intimidation
j. Illegality
k. Prescription
l. Forgery and Want of Authority
Cases: Samsung Construction Company v. Far East Bank, et al., G.R. No. 129015, 13 August 2004
BPI v. CASA Montessori Internationale, et al., G.R. No. 149454, 28 May 2004
Ilusorio v. CA and Manila Banking Corp., G.R. No. 139130, 27 November 2002
Westmont Bank (formerly Associated Banking Corp.) v. Ong, G.R. No. 132560, 30 January 2002
Philippine Commercial International Bank v. CA, et al., G.R. No. 121413, 29 January 2001
Associated Bank v. CA, et al., G.R. No. 107382, 31 January 1996
Gempesaw v. CA and Phil. Bank of Communications, G.R. No. 92244, 09 February 1993
Republic Bank v. CA and First National City Bank, G.R. No. 42725, 22 April 1991
Banco de Oro Savings and Mortgage Bank v. Equitable Banking Corp., et al., G.R. No. 74917, 20
January 1988
MWSS v. CA and PNB, G.R. No. L-62943, 14 July 1986
Metrobank v. The First National City Bank and CA, G.R. No. L-55079, 19 November 1982
Jai-Alai Corp. v. BPI, G.R. No. L-29432, 06 August 1975
Republic Bank v. Ebrada, G.R. No. L-40796, 31 July 1975
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VIII. Enforcement of Liability
a. Steps to Charge the Parties Liable
b. Presentment for Payment
Cases: The International Corporate Bank v. Spouses Gueco, G.R. No. 141968, 12 February 2001
Wong v. CA and People, G.R. No. 117857, 02 February 2001
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c. Presentment for Acceptance
Case: Prudential Bank v. IAC, G.R. No. 74886, 08 December 1992
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d. Acceptance
e. Notice of Dishonor
Cases: Gonzales v. Philippine Commercial and International Bank, et al., G.R. No. 180257, 23 February 2011
Lopez v. People, G.R. No. 166810, 26 June 2008
State Investment House, Inc. v. CA and Moulic, G.R. No. 101163, 11 January 1993
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f. Rules Regarding Foreign Bills
Cases: Velasquez v. Solidbank Corp., G.R. No. 157309, 28 March 2008
BPI v. CIR, G.R. No. 137002, 27 July 2006
Allied Banking Corp. v. CA, et al., G.R. No. 125851, 11 July 2006
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IX. Discharge
a. Discharge of Persons Primarily Liable
i. Payment in Due Course
ii. Renunciation
iii. Cancellation
Case: State Investment House, Inc. v. CA and Moulic, G.R. No. 101163, 11 January 1993
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iv. Acts that Discharge Simple Contracts
Case: Salazar v. J.Y. Brothers Marketing Corp., G.R. No. 171998, 20 October 2010
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v. Principal Debtor Becomes the Holder
b. Discharge of Persons Secondarily Liable
i. Discharge of Prior Party
ii. Tender of Payment
iii. Release of Principal Debtor
iv. Extension of Term
X. Checks
a. Kinds of Checks
i. Cashier’s and Manager’s Checks
Cases: RCBC v. Hi-Tri Development Corp. et al., G.R. No. 192413, 13 June 2012
SBTC v. RCBC, G.R. No. 170984, 30 January 2009
BPI v. Roxas, G.R. No. 157833, 15 October 2007
Equitable PCI Bank v. Ong, G.R. No. 156207, 15 September 2006
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ii. Certified Checks
iii. Crossed Checks
Cases: Salazar v. J.Y. Brothers Marketing Corp., G.R. No. 171998, 20 October 2010
Bank of America v. Associated Citizens Bank, et al., G.R. No. 141001, 21 May 2009
People v. Reyes and Reyes, G.R. No. 154159, 31 March 2005
Bataan Cigar and Cigarette Factory, Inc. v. CA, et al., G.R. No. 93048, 03 March 1994
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iv. Memorandum and Traveller’s Checks
b. Checks and Ordinary Bills of Exchange Distinguished
c. Relationship between Payee, Drawee and Drawer
Cases: Villanueva v. Nite, G.R. No. 148211, 25 July 2006
Tan v. CA and RCBC, G.R. No. 108555, 20 December 1994
Citytrust Banking Corp. v. IAC and Herrero, G.R. No. 84281, 27 May 1994
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d. Collection of Checks
e. Stopping Payment
i. Iron Clad Rule
f. Crimes Involving Checks
Case: Macalalag v. People, G.R. No. 164358, 20 December 2006
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