Course Syllabus

Negotiable Instruments Law

Forms and Interpretation

A. Requisites of Negotiability

1. Equitable Banking Corporation vs. the Honorable Intermediate Appellate Court and The Edward J. Nell
Co., G.R. No. 74451, May 25, 1988 (Sec. 8)
2. Juanita Salas vs. Hon. Court of Appeals and First Finance & Leasing Corporation, G.R. No. 76788
January 22, 1990 (Sec. 1)
3. Metropolitan Bank & Trust Company vs. Court Of Appeals, Golden Savings & Loan Association, Inc.,
Lucia Castillo, Magno Castillo and Gloria Castillo, G.R. No. 88866, February 18, 1991 (Sec. 3 [b])
4. Caltex (Philippines), Inc. vs. Court of Appeals and Security Bank and Trust Company, G.R. No. 97753,
August 10, 1992 (Sec. 1)
5. Traders Royal Bank vs. Court of Appeals, Filriters Guaranty Assurance Corporation and Central Bank
of the Philippines, G.R. No. 93397, March 3, 1997 (Sec. 1)
6. Philippine National Bank vs. Erlando T. Rodriguez and Norma Rodriguez, G.R. No. 170325, September
26, 2008 (Sec. 9 [c])
7. People of the Philippines vs. Gilbert Reyes Wagas, G.R. No. 157943, September 4, 2013

B. Kinds of Negotiable Instruments

1. Philippine Education Co., inc. vs. Mauricio A. Soriano, et al., G.R. No. L-22405, June 30, 1971
2. Firestone Tire & Rubber Company of the Philippines vs. Court of Appeals and Luzon Development
Bank, G.R. No. 113236, March 5, 2001
3. Philippine National Bank vs. Erlando T. Rodriguez and Norma Rodriguez, G.R. No. 170325, September
26, 2008
4. Prudential Bank v. Commissioner of Internal Revenue (CIR), G.R. No. 180390, July 27, 2011

C. Completion and Delivery

1. Ting Ting Pua vs. Spouses Benito Lo Bun Tiong and Caroline Siok Ching Teng, G.R. No. 198660,
October 23, 2013
2. BENJAMIN EVANGELISTA v. SCREENEX, INC., represented by ALEXANDER G. YU, G.R. No.
211564, November 20, 2017, First Division, SERENO, C.J.

 Insertion of Date

 Completion of Blanks
1. Quirino Gonzales Logging Concessionaire, Quirino Gonzales and Eufemia Gonzales vs. Court of
Appeals and Republic Planters Bank, G. R. No. 126568, April 30, 2003
2. Patrimonio vs. Gutierrez, 724 SCRA 636

 Incomplete and Undelivered Instruments

1. Ching vs. Nicdao, G.R. No. 141181, April 27, 2007

 Complete but Undelivered Instruments

 1. Loreto D. de la Victoria, as City Fiscal of Mandaue City and in his personal capacity as garnishee vs.
Hon. Jose P. Burgos, Presiding Judge, RTC, Br. XVII, Cebu City, and Raul H. Sesbreño, G.R. No.
111190, June 27, 1995
2. San Miguel Corporation vs. Puzon, Jr., G.R. No. 167567, 22 September 2010
3. Equitable Banking Corporation vs. Special Steel Products, June 13, 2012
4. Development Bank of Rizal vs. Sim Wei, 245 SCRA 374
5. ASIA BREWERY, INC. AND CHARLIE S. GO v. EQUITABLE PCI BANK (NOW BANCO DE ORO –
EPCI, INC.), G. R. No. 190432, April 25, 2017, First Division, SERENO, C.J.

D. Signature

 Signing in Trade Name

 Signature of Agent

1. Philippine Bank of Commerce vs. Jose M. Aruego, G.R. Nos. L-25836-37, January 31, 1981

 Indorsement by Minor or Corporation

 Forgery

1. Westmont Bank (formerly Associated Banking Corp.) vs. Eugene Ong, G.R. No. 132560, January 30,
2002
2. Associated Bank and Conrado Cruz, vs. Hon. Court of Appeals, and Merle V. Reyes, doing business
under the name and style "Melissa’s RTW", G.R. No. 89802, May 7, 1992
3. Ramon K. Ilusorio vs. Court of Appeals, G.R. No. 139130, November 27, 2002
4. Bank of the Philippine Islands vs. Casa Montessori Internationale and Leonardo T. Yabut, G.R. No.
149454, May 28, 2004
5. Samsung Construction Company Philippines, Inc. vs. Far East Bank and Trust Company and Court of
Appeals, G.R. NO. 129015, August 13, 2004
6. Philippine National Bank vs. FF Cruz and Company, G.R. No. 173259, July 25, 2011
7. Philippine Commercial International Bank vs. Balmaceda, G.R. No. 158143, September 21, 2011
8. Metropolitan Waterworks & Sewerage System vs. Court of Appeals, 143 SCRA 20.

E. Consideration

1. Travel-On, Inc. vs. Court of Appeals and Arturo S. Miranda, G.R. No. L-56169, June 26, 1992
2. Remigio S. Ong vs. People of the Philippines and Court of Appeals, G.R. No. 139006, November 27,
2000
3. Charles Lee, Chua Siok Suy, Mariano Sio, Alfonso Yap, Richard Velasco and Alfonso Co vs. Court of
Appeals and Philippine Bank of Communications, G.R. NO. 117913, February 1, 2002
4. Quirino Gonzales Logging Concessionaire, Quirino Gonzales and Eufemia Gonzales vs. Court of
Appeals and Republic Planters Bank, G. R. No. 126568, April 30, 2003
5. Cayanan v. North Star International Travel Inc., G.R. No. 172954, October 5, 2011

F. Accommodation Party

1. Ang Tiong vs. Lorenzo Ting, doing business under the name & style of Prunes Preserves MFG., &
Felipe Ang, G.R. No. L-26767, February 22, 1968
2. GSIS vs. Court of Appeals, G.R. No. L-40824, February 23, 1989
3. People vs. Maniego (148 SCRA 30 [1987])
 4. Town Saving and Loan Bank, Inc. vs. Court of Appeals (223 SCRA 459 [1993])
5. Gonzales vs. Phillippine Commercial and International Bank, GR No. 180257, February 23, 2011

G. Negotiation

 Distinguished from Assignment

1. Sesbreno vs. Court of Appeals (222 SCRA 466 [1993])

 Modes of Negotiation

1. Ang Tek Lian vs. Court of Appeals, G.R. No. L-2516, September 25, 1950
2. Caltex (Philippines), Inc. vs. Court of Appeals and Security Bank and Trust Company, G.R. No. 97753,
August 10, 1992

 Kinds of Indorsements

H. Rights of the Holder

 Holder in Due Course

1. Vicente R. De Ocampo & Co. vs. Anita Gatchalian, et al., G.R. No. L-15126, November 30, 1961
2. Juanita Salas vs. Hon. Court of Appeals and First Finance & Leasing Corporation, G.R. No. 76788
January 22, 1990
3. Stelco Marketing Corporation vs. Court of Appeals and Steelweld Corporation of the Philippines, Inc.,
G.R. No. 96160 June 17, 1992
4. Bataan Cigar and Cigarette Factory, Inc. vs. the Court of Appeals and State Investment House, Inc.,
G.R. No. 93048, March 3, 1994
5. Atrium Management Corporation vs. Court of Appeals, et al., G.R. No. 109491, February 28, 2001
6. Cely Yang vs. Hon. Court of Appeals, Philippine Commercial International Bank, Far East Bank & Trust
Co., Equitable Banking Corporation, Prem Chandiramani and Fernando David, G.R. No. 138074,
August 15, 2003

I. Defenses Against the Holder

1. RCBC SAVINGS BANK, Petitioner, - versus - NOEL M. ODRADA, Respondent. (G.R. No. 219037,
SECOND DIVISION, October 19, 2016, CARPIO,J.)

J. Liabilities of Parties

 Maker

1. Republic Planters Bank vs. Court of Appeals (216 SCRA 730 [1992])

 Drawer

1. Myron C. Papa vs. A.U. Valencia & Co., Inc., et al., G.R. No. 105188. January 23, 1998
2. Bank of the Philippine Islands vs. Reynald R. Suarez, G.R. No. 167750, March 15, 2010

 Acceptor
 1. Associated Bank and Conrado Cruz, vs. Court of Appeals, and Merle V. Reyes, doing business under
the name and style "Melissa’s RTW", G.R. No. 89802, May 7, 1992
2. Westmont Bank (formerly Associated Banking Corp.) vs. Eugene Ong, G.R. No. 132560, January 30,
2002
3. Samsung Construction Company Philippines, Inc. vs. Far East Bank and Trust Company and Court Of
Appeals, G.R. NO. 129015, August 13, 2004
4. Far Eastern Bank & Trust Company vs. Gold Palace Jewelry Company, 562 SCRA 604.
5. Areza vs. Express Savings Bank, Inc., 734 SCRA 588

 Indorser

1. Ang Tiong vs. Lorenzo Ting, doing business under the name & style of Prunes Preserves MFG., &
Felipe Ang, G.R. No. L-26767, February 22, 1968
2. Maria Tuazon vs. Heirs of Bartolome Ramos (463 SCRA 408 [2005])
3. Allied Banking Corporation vs. Bank of the Philippine Islands, GR. 188363, February 27, 2013
4. Gonzales vs. Rizal Commercial Banking Corporation, 508 SCRA 459
5. Bank of the Philippine Islands vs. Court of Appeals, 326 SCRA 641
6. BDO UNIBANK, INC. v. ENGR. SELWYN LAO, doing business under the name and style "SELWYN F.
LAO CONSTRUCTION" AND "WING AN CONSTRUCTION AND DEVELOPMENT CORPORATION"
and INTERNATIONAL EXCHANGE BANK (now UNION BANK OF THE PHILIPPINES) (G.R. No.
227005, June 19, 2017, MENDOZA, J.)
7. Metropolitan Bank and Trust Co. v. Junnel's Marketing Corp., G.R. Nos. 235511 & 235565, [June 20,
2018]

 Warranties

1. Associated Bank and Conrado Cruz, vs. Court of Appeals, and Merle V. Reyes, doing business under
the name and style "Melissa’s RTW," G.R. No. 89802, May 7, 1992

K. Presentment for Payment

1. Associated Bank and Conrado Cruz, vs. Hon. Court of Appeals, and Merle V. Reyes, doing business
under the name and style "Melissa’s RTW," G.R. No. 89802, May 7, 1992

 Necessity of Presentment for Payment

1. International Corporate Bank vs. Gueco (351 SCRA 516 [2001])

 Parties to Whom Presentment for Payment Should Be Made

 Dispensation with Presentment for Payment
 Dishonor by Non-Payment

L. Notice of Dishonor

1. Jaime Dico vs. Court of Appeals and People of the Philippines, G.R. NO. 141669, February 28, 2005

 Parties to Be Notified
1. Lao vs. Court of Appeals, G.R. No. 119178, June 20, 1997
2. Ofelia Marigomen vs. People of the Philippines, G.R. No. 153451, May 26, 2005
3. Great Asian Sales Center Corporation and Tan Chong Lin vs. the Court of Appeals and Bancasia
Finance and Investment Corporation, G.R. No. 105774, April 25, 2002
 Parties Who May Give Notice and Dishonor

1. Eliza T. Tan vs. People of the Philippines, G.R. No. 141466, January 19, 2001

 Effect of Notice

1. Bank of the Philippine Islands vs. Reynald R. Suarez, G.R. No. 167750, March 15, 2010
2. James Svendsen vs. People of the Philippines, G.R. NO. 175381, February 26, 2008

 Form of Notice

1. Jaime Dico vs. Hon. Court of Appeals and People of the Philippines, G.R. NO. 141669, February 28,
2005
2. BANK of the PHILIPPINE ISLANDS v. MENDOZA, G.R. No. 198799, March 20, 2017, First Division,
PERLAS BERNABE, J.

 Waiver
 Dispensation with Notice
 Effect of Failure to Give Notice

M. Discharge of Negotiable Instruments

 Discharge of Negotiable Instrument

1. Bank of the Philippine Islands vs. Court of Appeals (326 SCRA 641 [2000])
2. Cebu International Finance Corporation vs. Court of Appeals (316 SCRA 488 [1999])
3. Anamer Salazar vs. JY Brothers Marketing Corporation, G.R. No. 171998, October 20, 2010

 Discharge of Parties Secondarily Liable

 Right of Party Who Discharged Instrument
 Renunciation by Holder

N. Material Alteration

 Concept

1. Philippine National Bank vs. Court of Appeals, Capitol City Development Bank, Philippine Bank of
Communications, and F. Abante Marketing, G.R. No. 107508, April 25, 1996
2. Philippine National Bank vs. Court of Appeals, Capitol City Development Bank, Philippine Bank of
Communications, and F. Abante Marketing, G.R. No. 107508, April 25, 1996
3. The International Corporate Bank, Inc. vs. Court of Appeals and Philippine National Bank, G.R. No.
129910, September 5, 2006

 Effect of Material Alteration

1. Metropolitan Bank and Trust Company vs. Renato D. Cabilzo, G.R. No. 154469, December 6, 2006
O. Acceptance

 Definition
 1. Prudential Bank, Petitioner, v. Intermediate Appellate Court, Philippine Rayon Mills Inc. and Anacleto R.
Chi, G.R. No. 74886, December 8, 1992
2. Philippine National Bank vs. the Court of Appeals and Philippine Commercial and Industrial Bank, G.R.
No. L-26001, October 29, 1968

 Manner

1. New Pacific Timber vs. Seneris (101 SCRA 686 [1980])

2. Prudential Bank, Petitioner, v. Intermediate Appellate Court, Philippine Rayon Mills Inc. and Anacleto R.
Chi, G.R. No. 74886, December 8, 1992

 Time for Acceptance

 Rules Governing Acceptance

P. Presentment for Acceptance

 Time/Place/Manner of Presentment

1. Prudential Bank vs. Intermediate Appellate Court, Philippine Rayon Mills Inc. and Anacleto R. Chi, G.R.
No. 74886, December 8, 1992

 Effect of Failure to Make Presentment

1. Myron C. Papa vs. A.U. Valencia & Co., Inc., et al. G.R. No. 105188. January 23, 1998

 Dishonor by Non-Acceptance

1. MANUEL UBAS SR. v. WILSON CHAN, G.R. No. 215910, February 6, 2017, First Division, PERLAS-
BERNABE, J.

Q. Promissory Notes

1. Philippine National Bank vs. Concepcion Mining Company, Inc., et al., G.R. No. L-16968. July 31, 1962
2. Perla Compania De Seguros, Inc. vs. the Court of Appeals, Herminio Lim And Evelyn Lim, G.R. No.
96452, May 7, 1992
3. Jose L. Ponce de leon vs. Rehabilitation Finance Corporation, G.R. No. L-24571, December 18, 1970
4. People of the Philippines vs. Martin L. Romero and Ernesto C. Rodriguez, G.R. No. 112985, April 21,
1999
5. Astro Electronics Corp. and Peter Roxas vs. Philippine Export and Foreign Loan Guarantee
Corporation, G.R. No. 136729, September 23, 2003

R. Checks

 Definition

1. BPI Card Corporation vs. Court of Appeals, 296 SCRA 260 (1998)

 Kinds
1. Associated Bank and Conrado Cruz, vs. Court of Appeals, and Merle V. Reyes, doing business under
the name and style "Melissa’s RTW," G.R. No. 89802, May 7, 1992
2. State Investment House vs. IAC (175 SCRA 310 [1989])
 3. People vs. Nitafan, G.R. No. 75954, October 22, 1992
4. Tan vs. Court of Appeals, G.R. No. 108555, December 20, 1994
5. Teddy G. Pabugais vs. Dave Sahijiwani, G.R. No. 156846, February 23, 2004
6. Bank of the Philippine Islands vs. Roxas, 536 SCRA 168
7. Philippine Commercial International Bank vs. Balmaceda, G.R. No. 158143, September 21, 2011

 Presentment for Payment

1. New Pacific Timber vs. Seneris, G.R. No. 41764, December 19, 1980
2. Philippine Airlines vs. Court of Appeals, G.R. No. 49188, January 30, 1990
3. Bishop of Malolos vs. Intermediate Appellate Court, G.R. No. 72110, November 16, 1990
4. Fortunado vs. Court of Appeals (196 SCRA 26 [1991])
5. Tibajia, Jr. vs. Court of Appeals, G.R. No. 100290, June 4, 1993
6. Far East Bank & Trust Company vs. Diaz Realty, Inc., G.R. No. 138588, August 23, 2001
7. International Corporate Bank vs. Sps. Francis S. Gueco and Ma. Luz E. Gueco, G.R. No. 141968,
February 12, 2001
8. Security Bank and Trust Company vs. Rizal Commercial Banking Corporation, G.R. No. 170984, 30
January 2009

 Time

1. International Corporate Bank vs. Sps. Francis S. Gueco and Ma. Luz E. Gueco, G.R. No. 141968,
February 12, 2001

 Effect of Delay

1. International Corporate Bank vs. Sps. Francis S. Gueco and Ma. Luz E. Gueco, G.R. No. 141968,
February 12, 2001
2. Philippine National Bank vs. Seeto, 91 Phil. 756

S. Miscellaneous Topics

 Negotiable instrument as mode of payment

1. New Pacific Timber vs. Seneris, 101 SCRA 686 (1980) (See however, Tibajia, Jr, vs. Court of appeals,
infra)
2. Philippine Airlines vs. Court of Appeals, 181 SCRA 557 (1990)
3. Roman Catholic Bishop of Malolos vs. Intermediate Appelate Court, 191 SCRA 411 (1990)
4. Fortunado vs. Court of Appeals, 196 SCRA 26 (1991)
5. Tibajia, jr. vs. Court of Appeals, 223 SCRA 163 (1993)
6. Tan vs. Court of Appeals, 239 SCRA 310 (1994)
7. Papa vs. A.U Valencia & Co., Inc. vs. 284 SCRA 643 (1998)
8. BPI Express Card Corporation vs. Court of Appeals, 296 SCRA 260 (1998)
9. Cebu International Finance Corporation vs. Court of Appeals, 316 SCRA 488 (1999)
10. Bank of the Philippine Islands vs. Court of Appeals, 326 SCRA 641 (2000)
11. International Corporate Bank vs. Gueco, 351 SCRA 516 (2001)
12. East Bank & Trust Company vs. Diaz Realty, Inc., 363 SCRA 596 (2001)
13. Pabugais vs. Sahijiwani, 423 SCRA 596 (2004)
14. Security Bank and Trust Company vs. Rizal Commercial Banking Corporation 577 SCRA 407 (2009)
 Liabilities of Parties under B.P. 22

1. Danao vs. Court of Appeals, 358 SCRA 450 (2001)

2. Bautista vs. Court of Appeals, 360 SCRA 618 (2001)
3. Tan vs. Mendez, Jr., 383 SCRA 202 (2002)
4. Recuerdo vs. People of the Philippines, 395 SCRA 638 (2003)
5. Yu Oh vs. Court of Appeals, 403 SCRA 300 (2003)

 Clearing Rules

1. Banco de Oro vs. Equitable Banking Corp, 157 SCRA 188 (1988)
2. Home Bankers Savings and Trust Company vs. Court of Appeals, 318 SCRA 558 (1999)
3. Allied Banking Corporation vs. Court of Appeals, 321 SCRA 563 (1999)
4. Metropolitan Bank & Trust Company vs. Court of Appeals, 579 SCRA (2009)