Negotiable Instruments Law:

Reading Assignments
(Textbook Reference: De Leon)
Link for Lecture on Articles 1 to 23: https://www.youtube.com/watch?v=o-HoXoF4fzQ&t=400s

Purpose:
 Statement Investment House v. CA, GR 101163

What law governs instruments not considered as NI:

 Garcia V. Llamas, GR 154127

Freedom of Negotiability:
 Traders Royal Bank v. Court of Appeals, GR 93397, Mach 3, 1997

Basis to determine negotiability:

 Caltex (Philippines) v. Court of Appeals, GR 97753, August 10, 1992

Negotiation versus Assignment:

 Sesbreno v. Court of Appeals, GR No. 89252, May 24, 1993

Significance of using the phrase “payable to bearer” or “payable to order”:

 Consolidated Plywood Industries v. IFC Leasing and Acceptance Corporation, GR 72593

Fictitious Payee Rule:

 Philippine National Bank v. Rodriguez, GR 170325 (2008)

Promissory Notes:
 Far East Bank and Trust v. Querimit, GR 148582, January 16, 2002
 Caltex (Philippines) v. Court of Appeals, GR 97753, August 10, 1992

Bills of Exchange:
 Bank Drafts: Citytrust Banking Corporation v, Court of Appeals, GR 92591, April 30,
1991
 Demand Drafts: Republic of the Philippines v. First National Bank of New York, et al.,
GR No. L-16106, December 30, 1961
 Checks: Mitra v. People, GR 191404, July 5, 2010
o Kind of Checks:
 Manager’s Check:
 Philippine National Bank v. Tria, GR 193250, April 25, 2012
 Rizal Commercial Banking Corporation v. HiTri Development
Corporation, GR 192413, June 13, 2012
 Cashier’s Check:
 Republic of the Philippines v. Philippine National Bank, et al., GR
No. L-16106, December 30, 1961
 Certified Check (Section 187, NIL)
 Manager’s check vis-à-vis certified check: Security Bank and Trust
Company v. Rizal Commercial Banking Corporation, G.R. No.
170984, January 30, 2009.
 Stale Check
 International Corporate Bank v. Sps. Gueco, G.R. No. 141968,
February 12, 2001
 Crossed Check
 Traders Royal Bank v. Radio Philippines Network, GR 138510
(2002)
 o Simple rules governing checks; checks v. ordinary bills of exchange:
 Sps. Moran v. Citytrust Banking Corporation, GR 105836 (1994)

Not Negotiable Instruments:

 Lee, et al. v. Court of Appeals, GR 117913, February 1, 2002
 Lee v. Rodil, GR 80544
 Surigao Century Sawmill v. Court of Appeals, GR 83889
 Abubakar v. Auditor General, GR L-1405
 Serrano v. Court of Appeals, et al., GR 45125, April 22, 1991
 Philippine Education Co., Inc. v. Soriano, et al., GR No. L-22405, June 30, 1971

Ante-dating/post-dating negotiable instruments:

 Firestone Tire & Rubber Co of the Philippines v. Chavez, GR L-17106, October 19, 1966

Section 14: Incomplete and delivered instrument:

 Patrimonio v. Gutierrez, GR 187769
 Dy v. People. GR 158312

Section 15: Incomplete and undelivered instrument

 Bank of America NT & SA v. Philippine Racing Club, GR 150228, July 30, 2009

Section 16: Complete and undelivered instrument; Delivery, when effectual and when
presumed
 Development Bank of Rizal v. Sima Wei, et al., G.R. No. 85419 March 9, 1993
 Asia Brewery Inc, et al. v. Equitable PCI Bank, GR 190432, April 25, 2017

Parties:
 Immediate Parties
 Remote Parties
 Prior Parties

Holders:
 Holders Simply (Sec. 51)
 Holders for Value (Sec. 26)
 Holders in Due Course (Sec. 52, 57, 59)
o Significance as to:
 Rights
 Defenses
 Holders other than Holder in Due Course (Section 58)
o Shelter Principle (Holders through a Holder in Due Course)
o Reacquirers