NEGOTIABLE INSTRUMENTS LAW
Peter Leo M. Ralla
Assignment, Coverage (Final Period):
1. Chapter VIII – Discharge of Negotiable Instruments, (Sec. 119 to 125)
2. Chapter IX – Bills of Exchange; Form and Interpretation (Sec. 126 to 131)
3. Chapter X – Acceptance (Sec. 132 to 142)
4. Chapter XI – Presentment for Acceptance (Sec. 143 to 151)
5. Chapter XII – Protest (Sec. 151 to 160)
6. Chapter XIII – Acceptance for Honor (Sec. 161 to 170)
7. Chapter XIV – Payment for Honor (Sec. 171 to 177)
8. Chapter XV – Bills in set – (Sec. 176 to 183)
9. Chapter XVI – Promissory notes and checks (Sec. 184 to 189)
Cases: (Read and digest, for submission until June 8, 2020)
Study Guide 1
1) Maralit v. Imperial, G.R. No. 130756, January 21, 2007.
2) Bank of the Philippine Islands v. Court of Appeals, G.R. No. 112392,
February 29, 2000.
3) Wong v. Court of Appeals, G.R. No. 117857, June 25, 2001.
4) Rigor v. People, G.R. No. 144887, November 17, 2004.
5) State Investment House, Inc. v. Court of Appeals, G.R. No. 101163, January
11, 1993.
6) Sycip, Jr. v. Court of Appeals, G.R. No. 125059, March 17, 2000.
7) Bank of America, NT & SA v. Associated Citizens Bank, G.R. No. 141001,
May 21, 2009.
8) Elvira Yu Oh v. Court of Appeals, G.R. No. 125297, June 6, 2003.
9) Philippine National Bank v. Soriano, G.R. No. 164051, October 3, 2012
Study Guide and Lecture notes:
Secs. 119 to 125
1) Memorize the 5 instances when an instrument is discharged.
a) Take note of the meaning of “principal debtor”
b) Refer to Art. 1231 on extinguishment of obligations in the Civil Code,
particularly Sec. 1, 1232 to 1251, which applies suppletorily.
c) Know the effect on payment of an accommodated party.
d) Know the cancellation of the instrument and the requirement of
“intentional cancellation”.
e) Know the effect on discharge of the grant of extension of time to the
holder.
2) Determine the instances when persons secondarily liable are discharged.
a) Discharge by operation of law is not included, it must be an act of the
holder.
b) Release or discharge is always with value.
3) Know the forms and time of renunciation.
4) Know the meaning of cancellation.
5) Know the forms of alterations and take note of its effect on the rights
of a holder in due course.
(a) There is no distinction between an fraudulent or intentional
alteration.
6) Know when there is a valid tender of payment.
7) Know the right of the party that discharges and instrument.
8) Know the effect of the renunciation of a holder, its forms and time.
9) Know the instance when there is a material alteration.
(Sec. 126 – 131)
1) Know what a trust receipt is. (P.D. No. 115)
2) Relate this Chapte to the lecture on negotiability of instruments.
(Sec. 132 – 142)
1) Know when an acceptance of a check or negotiable instrument is made
including the forms.
2) Read the right of the holder to require acceptance of a bill.
(Sec. 143 – 151)
1) Know the general rule and exception when presentment for acceptance
is made.
2) Know how presentment for acceptance is made.
3) Know the instances when presentment for acceptance is excused.
(Sec. 152 – 160)
1) Study what instances require protest.
2) Know when it is to be made.
(Sec. 161 – 170)
1) Know the instances when a bill may be accepted for honor.
2) Know the purpose when a bill is accepted for honor.
(Sec. 171 – 177)
1) Know the requisites for payment for honor.
2) Know the general procedure for payment for honor.
(Sec. 178 – 183)
1) Know what is a bill in set and its purpose.
(Sec. 184 – 189)
1) Read Batas Pambansa Blg. 22.
