NEGOTIABLE INSTRUMENTS LAW SYLLABUS

Nature and Coverage of Act 2031, the Negotiable Instruments Law (NIL)
I.

The function of Negotiable Instruments

1.
2.
3.
4.
5.
6.

II.

Traders Royal Bank vs. CA, 269 SCRA

Crystal vs. CA (GR L-35767, 18 June 1976)
New Pacific Timber vs. Seneris, 101 SCRA
Roman Catholic Church of Malolos vs. IAC, 191 SCRA
Tibajia vs. CA (GR 100290, 4 June 1993)
Vda. de Eduque vs. Ocampo (GR L-222, 26 April 1950)

Negotiation distinguished from assignment

1.

Sesbreno vs. CA (GR 89252, 24 May 1993)

2.
3.
III.

Abubakar vs. Auditor General (GR L-1405, 31 July 1948)

Philippine Education Co. vs. Soriano (GR L-22405, 30 June 1971)

Formal Requisites of Negotiable Instruments

1.
2.
3.
4.
5.

IV.

Specific instrument covered

Ponce vs. CA (GR L-49444, 31 May 1979)

Arrieta vs. National Rice and Corn Corporation (GR L-15645, 31 January 1964)
Kalalo vs. Luz (GR L-27782, 31 July 1970)
Philippine Bank of Commerce vs. Aruego (GR L-25836-37, 31 January 1981)
Jimenez vs. Bucoy (GR L-10221, 28 February 1958)

Issuance of Negotiable Instruments

1.

Dela Victoria vs. Burgos (GR 111190, 27 June 1995)

2.

4.

6.
7.
8.
9.
10.
11.
12.
13.
14.

Signature and Forgery vs. Alteration

Rules on signatories

Forgery

Associated Bank vs. CA (GR 107382, 31 January 1996)

PNB vs. Quimpo (GR L-53194, 14 March 1988)
MWSS vs. CA (GR L-62943, 14 July 1986)
Gempesaw vs. CA (GR 92244, 9 February 1993)
Republic Bank vs. CA (GR 42725, 22 April 1991)
Manila Lighter Transportation vs. CA (GR L-50373, 15 February 1990)
PNB vs. CA, 25 SCRA [ * ]
PNB vs. National City Bank (GR 43596, 31 October 1936)
San Carlos Milling vs. BPI (GR 37467, 11 December 1933)
Republic vs. Ebrada, supra

15.

Transfer of the Negotiable Instrument from one person to another

Republic Planters Bank vs. CA (GR 93073, 21 December 1992)

Republic Bank vs. Ebrada (GR L-40796, 31 July 1975)

5.

Negotiation

Caltex (Philippines) Inc. vs. CA (GR 97753, 10 August 1992)

3.

Concept of delivery

Alteration

Hongkong & Shanghai Bank vs. Peoples Bank and Trust (GR L-28226, 30 September 1970)

16.

Accommodation party

17. Ang Tiong vs. Ting (GR L-26767, 22 February 1968)

18. Prudencio vs. CA (GR L-34539, 14 July 1986)
19. Republic Bank vs. Ebrada, 65 SCRA, supra
20. Clark vs. Sellner (GR 16477, 22 November 1921)
21. People vs. Maniego (GR L-30910, 27 February 1987)
Discharge of negotiable instrument
1.

VI.

Presumption as to consideration

Pineda vs. dela Rama (GR L-31831, 28 April 1983)

V.

Consideration in a Negotiable Instrument

State Investment House vs. CA (GR 101163, 11 January 1993)

Special Provisions applicable only to Bill of Exchange, Promissory Notes and Checks

Bills of Exchange (Special Provisions)

Section 126
1.

Types of Bills of Exchange

2.

City Trust Banking vs. CA (GR 92591, 30 April 1991)

Checks (special provisions)

3.
4.
5.
6.
7.
8.
9.
10.

Philippine Bank of Commerce vs. Aruego, 102 SCRA

Moran vs. CA (GR 105836, 7 March 1994)

Tibajia vs. CA, 223 SCRA, supra [See 5]
Co vs. PNB (GR L-51767, 29 June 1982)
State Investment House vs. IAC (GR 72764, 13 July 1989)
Travel On vs. CA (GR 56169, 26 June 1992)
Firestone Tire and Rubber vs. Ines Chaves & Co. (GR L-17106, 19 October 1966)
Stelco Marketing vs. CA (GR 96160, 17 June 1992)
Tan vs. CA (GR 108555, 20 December 1994)

Certification of a check
11. New Pacific Timber vs. Seneres, 101 SCRA, supra
12. PNB vs. National City Bank of NY, 63 PHIL, supra
Types of checks
13. Bataan Cigar and Cigarette Factory vs. CA (GR 93048, 3 March 1994)
14. State Investment House vs. IAC, 175 SCRA, supra
15. Associated Bank vs. CA (GR 89802, 7 May 1992)

Applicable Laws on Bouncing Checks

1.
2.
3.
4.
5.
6.
7.

BP 22

Lozano vs. Martinez (GR L-63419, 18 December 1986)

Caram Resources vs. Contreras (AM MTJ0830849, 26 October 1994)
Uy vs. CA (GR 119000, 28 June 1997)
People vs. Reyes (GR 101127-31, 18 November 1993)
People vs. Grospe (GR L-74053-54, 20 January 1988)
Ibasco vs. CA (GR 117488, 5 September 1996)
People vs. Tuanda (AC 3360, 30 January 1990)

8.
9.
10.
11.
12.
13.
14.
15.

1.
2.
3.
4.
5.
6.
7.
Additional cases
1.
2.
3.
4.
5.
6.
7.

Llamado vs. CA (GR 99032, 26 March 1997)

Magno vs. CA (GR 96132, 26 June 1992)
Navarro vs. CA (GR 112389, 1 August 1994)
Lao vs. CA (GR 119178, 20 June 1997)
Que vs. People (GR 75217-18, 21 September 1987)
Lazaro vs. CA (GR 105461, 11 November 1993)
Cruz vs. CA (GR 108738, 17 June 1994)
Lim vs. CA (GR 107898, 19 December 1995)

Forgery in Bill of Exchange

PNB vs. Quimpo (158 SCRA ), supra
Metropolitan Waterworks vs. CA (143 SCRA), supra
PNB vs. CA (GR L-26001, 29 October 1968)
Manila Lighter Transportation vs. CA (182 SCRA), supra
Republic Bank vs. CA (196 SCRA), supra
Associated Bank vs. CA (252 SCRA), supra

Insular Drug vs. PNB (GR 38816, 3 November 1933)

Belisario vs. Vda. de Zulueta (GR 39815, 28 April 1934)
United General Industries vs. Paler (GR L-30205, 15 March 1982)
Lim vs. People (GR 130038, 18 September 2000)
Lim vs. Rodrigo (GR 76974, 18 November 1988)
Philippine Commercial Industrial Bank vs. CA (GR 121413, 29 January 2001)
Vaca vs. CA (GR 43596, 31 October 1936)