Parties primarily liable:  Unconditionally liable;

 must pay holder at date of maturity, WON

1. Maker of promissory note. holder demands payment from him,
2. Acceptor of bill of exchange  not relieved from liability even if the
3. Certifier of a check. instrument should become overdue due to
failure of holder to make such demand.

Person primarily liable: person who by the terms of

the instrument is absolutely required to pay the
same.

Presentment for payment not necessary to charge

primary party.
Liability of the Maker: 1. PAY NI according to its TENOR;
2. ADMITS the existence of the PAYEE;
(Sec. 60 NIL) 3. ADMITS CAPACITY of payee to indorse.

Warranties of a Maker: TPC

Liability of the Acceptor:
(Sec. 62 NIL)
Warranties of the Acceptor: ADGC/AC
Parties secondarily liable:
 Drawer of a bill.
 Indorsers both note and bill.
Liability of Drawer:
(Sec. 61 NIL)
Warranties of the Drawer: CDP
1. PAY bill according to the tenor of his
ACCEPTANCE
2. admits EXISTENCE of the DRAWER
3. admits that signature of drawer is
GENUINE;
4. admits the CAPACITY of the DRAWER;
5. admits that DRAWER has AUTHORITY to
draw the instrument; and
6. admits the EXISTENCE and CAPACITY to
indorse of PAYEE
 Conditionally liable.
 Not bound to pay unless the following has
been
fulfilled: DDP
1. Due presentment or demand from
primary party for payment or
acceptance;
2. Dishonor by such party; and
3. Proceedings on dishonor were duly
taken.
 admits the EXISTENCE and CAPACITY of
the PAYEE to indorse;
 THAT bill will be ACCEPTED or PAID, or
both,
1. according to its tenor,
2. on DUE PRESENTMENT
 PAY holder of the bill or any subsequent
indorser who was compelled to pay it,
 1. if dishonored by non-acceptance or
non-payment,
2. proceedings on dishonor were duly
taken.
To fix the liability of the Drawer, 1. DUE presentment or demand from primary
ff. steps must be party for payment or acceptance;
taken: DDP 2. DISHONOR by such party; and
3. proceedings on dishonor were duly taken
When a person deemed Indorser: 1. person signs instrument not as maker,
drawer or acceptor deemed as an Indorser.
(Sec. 63 NIL) 2. If it is not clear in what capacity a person
signed the instrument
Sec. 67. Liability of indorser where 3. Where a person places his indorsement on
paper negotiable by delivery. — an instrument negotiable by delivery, he
incurs all the liability of an indorser.
Liability of Irregular Indorser: 1. He is not otherwise a PARTY to the
instrument;
(Sec. 64 NIL) 2. He signs the instrument in BLANK; and
3. He signs BEFORE delivery of the
Requisites to be an Irregular Indorser: instrument;
PSB o if AFTER delivery, this section will
NOT APPLY.
Cases regarding the liability of an I. Instrument PAYABLE TO THE ORDER OF
Irregular Indorser: A THIRD PERSON
o liable to
1. PAYEE
2. ALL SUBSEQUENT PARTIES.
II. Instrument PAYABLE TO THE ORDER of
a. maker
b. drawer
c. bearer
 liable to
o PARTIES SUBSEQUENT TO
THE MAKER OR DRAWER.

III. for the ACCOMMODATION OF PAYEE

 liable to all
o parties SUBSEQUENT TO THE
PAYEE.
Qualified Indorsement/Negotiation by 1. The instrument is GENUINE and in all respect
delivery: what it purports to be
2. he indorser has GOOD title to it
(Sec. 65 NIL) 3. All PRIOR PARTIES had the CAPACITY to
contract;
Warranties of a Qualified 4. Indorser has NO knowledge of any fact that
Indorser/Negotiation by would impair the validity or the value of the
delivery: GGCN instrument.
Liability of a General/Unqualified  The instrument is GENUINE and in all
Indorser: respect what it purports to be;
 The indorser has GOOD title to it;
(Sec. 66 NIL)  All PRIOR PARTIES had the CAPACITY to
contract;
Warranties of a General Indorser:  That is VALID and subsisting.
GGCV In addition:

 THAT bill will be ACCEPTED or PAID, or

both,
1. according to its tenor,
2. on DUE PRESENTMENT
 PAY holder of the bill or any subsequent
indorser who was compelled to pay it,
1. if dishonored by non-acceptance
or non-payment,
2. proceedings on dishonor were
duly taken.

To fix the liability of a General Indorser, 1. DUE presentment or demand from primary
the ff. steps party for payment or acceptance;
must be taken: DDT 2. DISHONOR by such party; and
3. PROCEEDINGS on dishonor were duly
taken.
Order of liability AMONG Indorsers:  The presumption is that Indorsers are liable
(Sec. 68 NIL) in the order in which they indorse;
 unless it is shown otherwise by parol
evidence.
To the holder:  As far as the holder is concerned, he can go
against any indorser in any order.
Liability of an Agent or Broker:  refers to instrument
1. payable to bearer
(Sec. 69 NIL) 2. negotiated by mere delivery by an agent or
broker.
 PERSONALLY LIABLE in the manner of an
indorser who negotiated the instrument by
mere delivery
1. if he DID NOT DISCLOSED the
name of the principal and
2. the fact that he is only an agent.