Professional Documents
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Glenn Subia) | 1
Alcazar, JMM.
Every obligation which contains a resolutory condition shall also be demandable, without prejudice to
the effects of the happening of the event.
Section 40. indorsement of instrument payable to bearer. applies whether it is originally payable to
order or has been converted back to payable to order.
Section 41. indorsement where payable to two or more persons. cor. to Art. 1802
Article 1802. In case it should have been stipulated that none of the managing partners shall act without
the consent of the others, the concurrence of all shall be necessary for the validity of the acts, and the
absence or disability of any one of them cannot be alleged, unless there is imminent danger of grave or
irreparable injury to the partnership.
Section 47. continuation of negotiable character. - cor. to Sec. 36 (1) (when indorsement restrictive)
and Sec. 119 (instrument how discharged)
Section 49. transfer without indorsement, effect. applies to instrument payable to order.
Reckoning time: actual time of indorsement
Section 50. when prior party may negotiate instrument cor. to Sec. 121 (right of a party who
discharges instrument)
Memorize
Section 52. What constitutes a holder in due course.
A holder in due course is a holder who has taken the instrument under the following
conditions:chanroblesvirtuallawlibrary
(a) That it is complete and regular upon its face;
(b) That he became the holder of it before it was overdue, and without notice that it has been
previously dishonored, if such was the fact;
(c) That he took it in good faith and for value;
(d) That at the time it was negotiated to him, he had no notice of any infirmity in the instrument
or defect in the title of the person negotiating it.
Section 53. when person not deemed holder in due course: - cor. with Sec. 71 (presentment where
instrument is not payable on demand and where payable on demand)
Reasonable time cor. with Sec. 193 (reasonable time, what constitutes)
Section 59. who is deemed a holder in due course. does not apply to parties prior to the defective
title
Class discussion, after midterms:
Sec. 62 Liability of the acceptor correlate to Sec. 127 bill not an assignment of funds in hands of
drawee
Sec. 63 When a person deemed indorser cor. to Sec. 17 Construction
Sec. 94 When agent may give notice cor. with Sec. 91 Notice by agent
Two ways of notice by the agent:
1. Act like a principal in giving notice to the drawer
2. Notify the principal himself
Sec. 96 Form of notice cor. with Sec. 102 time within which notice must be given
Sec. 107 notice to subsequent party cor. with Sec. 91 notice by agent and Sec. 102 - time within
which notice must be given
Sec. 108 where notice must be sent cor. with Sec. 16 privity of the subsequent holders
No need to notify the immediate party
Sec. 117 Effect of omission to give notice of non-acceptance cor. with Sec. 143 when
presentment for acceptance must be made
Sec. 119 Instrument how discharged
Par. (a) cor. with Sec 88 what constitute payment in due course
(b) cor. with Sec. 29 liability of accommodation party
(c) cor. with Sec. 123 cancellation
(e) refers to absolute liability cor. with Sec. 192 persons primarily liable
Sec. 144 when failure to present releases drawer and indorser cor. with Sec. 193 reasonable
time
Sec. 149 when dishonored by non acceptance cor. with Sec. 83 when instrument dishonored by
nonpayment
Sec. 150 Duty of holder where bill not accepted cor. with Sec. 84 liability of person secondarily
liable
Protest - formal instrument executed by a notary public or other competent person certifying that the
facts necessary to the dishonor of the instrument by non-acceptance or non-payment have taken place.
Sec. 152 protest necessary cor. with Sec. 129 inland and foreign bills
Memorize: Sec. 156 protest, where made cor. with Sec. 152
Sec. 159 protest dispensed with cor. with Sec. 112 notice is dispensed with
Sec. 161 bill accepted for honor
Requisites of acceptance for honor:
Bill has been protested for dishonor by non acceptance or protested for better security
The bill is not overdue
Any person not being a party is already liable
There must be the consent of the holder for the acceptance for honor
Memorize: Sec. 165 Agreement for acceptor for honor ; Sec. 184 promissory note
Sec. 185 check cor. with Sec. 127 bill not an assignment of funds
Sec. 194 Time, how computed cor. with Sec. 86 time, how computed