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Lim Vs CA (Digest)
Lim Vs CA (Digest)
Negotiable Instruments Law, 2004 ( 11 )Digests (Berne Guerrero) funds with the additional notation payment stopped (The Lims claimed that the supplies delivered by Linton Commercial were not in accordance with the specifications of purchase orders). Despite demands, the Lims refused to make good the checks or to pay value of the deliveries. Issue: Whether the receipt of the checks by the collector of Linton is the issuance and delivery to the payee within the contemplation of the law (as prelude to jurisdiction issue). Held: Issue means the first delivery of the instrument complete in form to a person who takes it as a holder. Holder refers to the payee or indorsee of a note or who is in possession of it or the bearer thereof. The issuance as well as the delivery of the check must be to a person who takes it as a holder. Delivery of the checks signifies transfer of possession (actual or constructive) from one person to another with intent to transfer title thereto; the delivery being the final act essential to its consummation as an obligation. The collector was not the person who could take the checks as a holder. Neither could the collector be deemed an agent of Linton Commercial with respect to the checks because he was a mere employee.