The document discusses negotiable instruments under Philippine law. It begins by stating that the Negotiable Instruments Law applies to instruments defined as negotiable under Section 1 and that cases not covered default to existing legislation or commercial law.
It then explains that negotiable instruments are used as a substitute for money and allow the instrument to be transferred freely without personal defenses. Common forms used in commerce are checks, bills of exchange, and promissory notes.
The document outlines two key characteristics of negotiable instruments - negotiability, which allows the holder to collect free of defects in prior titles or defenses, and the accumulation of secondary contracts each time an instrument is transferred. Various types of instruments are also identified, including certificates of
Third Division January 10, 2018 G.R. No. 204039 United Coconut Planters Bank, Petitioner Spouses Walter Uy and Lily Uy, Respondents Decision Martires, J.
The document discusses negotiable instruments under Philippine law. It begins by stating that the Negotiable Instruments Law applies to instruments defined as negotiable under Section 1 and that cases not covered default to existing legislation or commercial law.
It then explains that negotiable instruments are used as a substitute for money and allow the instrument to be transferred freely without personal defenses. Common forms used in commerce are checks, bills of exchange, and promissory notes.
The document outlines two key characteristics of negotiable instruments - negotiability, which allows the holder to collect free of defects in prior titles or defenses, and the accumulation of secondary contracts each time an instrument is transferred. Various types of instruments are also identified, including certificates of
The document discusses negotiable instruments under Philippine law. It begins by stating that the Negotiable Instruments Law applies to instruments defined as negotiable under Section 1 and that cases not covered default to existing legislation or commercial law.
It then explains that negotiable instruments are used as a substitute for money and allow the instrument to be transferred freely without personal defenses. Common forms used in commerce are checks, bills of exchange, and promissory notes.
The document outlines two key characteristics of negotiable instruments - negotiability, which allows the holder to collect free of defects in prior titles or defenses, and the accumulation of secondary contracts each time an instrument is transferred. Various types of instruments are also identified, including certificates of
The document discusses negotiable instruments under Philippine law. It begins by stating that the Negotiable Instruments Law applies to instruments defined as negotiable under Section 1 and that cases not covered default to existing legislation or commercial law.
It then explains that negotiable instruments are used as a substitute for money and allow the instrument to be transferred freely without personal defenses. Common forms used in commerce are checks, bills of exchange, and promissory notes.
The document outlines two key characteristics of negotiable instruments - negotiability, which allows the holder to collect free of defects in prior titles or defenses, and the accumulation of secondary contracts each time an instrument is transferred. Various types of instruments are also identified, including certificates of
Applies to Negotiable Instruments or those under Section 1 of the law Any case not provided by the Act shall be governed by the provisions of existing legislation or in default, the rules of the law merchant (Sec. 196) CIVIL CODE HAS NOT EFFECT on its provisions except to supply any deficiency in cases not covered by the Act (Art. 18, NCC) Function and Importance of Negotiable Instruments They do not constitute legal tender (1249), but are used for substitute for money. One characteristic is that it is negotiable and allows it to go from hand to hand in the commercial markets free from all personal defenses available against the original owner. Negotiable papers, particularly checks, constitute, at present, the media of exchange for most commercial transactions. Negotiable instruments also serve as a medium of credit transaction. Checks are primarily used for immediate payment while ordinary bill of exchange and the promissory note are intended for the circulation of credits. Characteristics of Negotiable Instruments
TWO IMPORTANT FEATURES
Negotiability the quality/attribute of a bill or note whereby it may pass from one person to another similar to money, so as to give the holder in due course the right to collect on the instrument the sum payable for himself free from any defect in the title of any of the prior parties or defenses available to them among themselves (sec. 52, 57) Accumulation of Secondary Contracts when an instrument is transferred from one person to another, a new contract is formed.
Once an instrument is issued, (191) additional parties can become
involved.
Forms of Negotiable Instruments
In General, these are the only two kinds of instruments: (a) Promissory notes or those in which the issuer has promised to pay; and (b)Bills of exchange or those in which the issuer has ordered a third person to pay. 1. Common Forms The most common forms of negotiable instruments in commercial transactions are the promissory note (Sec. 184), bill of exchange (Sec. 126), and bank check (Sec. 185) 2. Special Types There are, to be sure, many various forms of negotiable instruments. But these variations, however, belong to one or the other of the types mentioned. Other instruments: 1. 2. 3. 4. 5. 6. 7.
Certificates of deposits (Special types of promissory notes, sec. 184)
Bank notes (Special types of promissory notes, sec. 184) Due bills (Special types of promissory notes, sec. 184) Bonds (Special types of promissory notes, sec. 184) Drafts (Bills of Exchanges, 126) Trade Acceptances (Bills of Exchanges, 126) Bankers acceptances (Bills of Exchanges, 126)
Third Division January 10, 2018 G.R. No. 204039 United Coconut Planters Bank, Petitioner Spouses Walter Uy and Lily Uy, Respondents Decision Martires, J.