FACTS WHICH MUST BE SHOWN A VALID VALUABLE CONSIDERATION

Jesus Pineda VsJose V. Dela Rama

G.R. No. L-31831,April 28, 1983
Guitierrez, JR.,J.:

DOCTRINE:
Section 24 of Negotiable Instruments Act; Presumption of Consideration - That every Negotiable
Instruments is deemed prima facie to have been issued for a valuable consideration; and every
person whose signature appears thereon, to have become a party thereto for value.

FACTS:
Petitioner – Jesus Pineda was engaged in an anomaly in misappropriation of cavans of palay in
Concepcion, Tarlac, he hired respondent-delarama for making representation in behalf of the
petitioner with the chairman and general manager of the National Rice and Corn Administration
to stop or delay the institution of criminal charges against the latter. Petitioner issued promissory
note in favour of the respondent to delay the filing of the complaint. Dela Rama on the other
hand contended that the promissory note was for the loan advance to Pineda.

Respondent – Dela Rama filed a suit to collect P9,300.00 loan, evidenced by the matured
promissory note and P5,000.00 as attorney’s fees

ISSUE:
Is the Promissory Note void for lack of consideration?

RULING:
The highest court of the land ruled, Under Sec 24 of the Negotiable Instrument Act, The
Presumption that a negotiable instrument is issued for a valuable consideration is only prima
facie and it can be rebutted by proof to the contrary. Pineda signed the promissory note because
he believed Dela Rama’s story that these amounts had already been advanced by Dela Rama and
given as gifts for NARIC Officials. As per Article 1409, promissory note issued for illegal void
from the beginning and no cause of action for the collection cases can arise from it. The
consideration for the promissory note to influence public officers in the performance of their
duties is contrary to law and public policy.

Therefore the issued promissory note is void as against the law and public policy