Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Applicable provision:
Section 3. When promise is unconditional. An unqualified order or
promise to pay is unconditional within the meaning of this Act, though
coupled with
a. An indication of a particular fund out of which reimbursement is to be
made, or a particular account to be debited with the amount; or
b. A statement of the transaction which gives rise to the instrument.
But a promise to pay out of a particular fund is not unconditional.
Example:
To: M
Pay to X or order P1,000,000 as payment of my debt to
him.
Sgd.
__________
Sir: Is this now conditional?
No, Sir. The order to pay is still unconditional since the added
statement of as payment of my debt to him is just a statement of the
transaction which gave rise to the instrument.
The legal basis is Section 3b.
A statement of what gave rise of the obligation to pay does not render
the order or the promise conditional.
Sir: You can place there:
To: M
For value received, pay to X or order P1,000,000.
In other words, because of the value that the drawer received from X,
he is requiring M to pay X or his order. It does not make the order to
pay conditional because it is just a mere statement of why I am
ordering you to pay.
Whether or not that consideration or that particular transaction did
happen, it will not matter whether M is required to pay or not. It would
still require M to pay X or order regardless of what transaction may
have transpired between X and the drawer of this instrument.
It does not render the instrument non-negotiable because the order to
pay is still unconditional.
Sir: Is sum certain in money same as certain sum of money? What is the
criteria for you to say a sum certain in money?
The sum certain requirement is met if the holder can determine from
the instrument itself the amount he is entitled to receive at maturity.
Example:
To: M
Pay to X or order the sum as indicated in our loan contract
as payment of my debt to him.
Sgd.
__________
Sir: Is the example a sum certain in money?
No, Sir because it would now entail looking at another contract which is
the loan contract in order to ascertain the sum of money to be paid.
It makes the instrument non-negotiable because it does not conform to
the requirement of a sum certain in money. This is because in the
example given, you will have to refer to another source (loan contract)
in order to determine the amount.