Lawyer’s Oath Sec. 2. What constitutes certainty as to Sec. 9. When payable to bearer. Sec 63.
When a person deemed
I, do solemnly swear that: sum. The instrument is payable to bearer: indorser. 1. I will maintain allegiance to the Republic The sum payable is a sum certain within (a) When it is expressed to be so payable; A person placing his signature upon an of the Philippines, the meaning of this Act, although it is to be (b) When it is payable to a person named instrument 2. I will support the Constitutio and obey paid: therein or bearer; or otherwise than as maker, drawer, or the laws as well as the legal orders of the (a) with interest; or (c) When it is payable to the order of a acceptor, is duly constituted authorities therein; (b) by stated installments; or fictitious or non-existing person, and such deemed to be indorser 3. I will do no falsehood, nor consent to the (c)by stated installments, with a provision fact was known to the person making it so unless he clearly indicates by appropriate doing of any in court; that, upon default in payment of any payable; or words 4. I will not wittingly or willingly promote or installment or of interest, the whole shall (d) When the name of the payee does not his intention to be bound in some other sue any groundless, false or unlawful suit, become due; purport to be the name of any person; or capacity. or give aid nor consent to the same; (d) with exchange, whether at a fixed rate (e) When the only or last indorsement is an 5. I will delay no man for money or malice, or at the current rate; or indorsement in blank. Sec 64. Liability of regular indorser. and will conduct myself as a lawyer (e) with costs of collection or an attorney's Where a person, not otherwise a party to according to the best of my knowledge and fee, in case payment shall not be made at Sec. 184. Promissory note, defined. an instrument, places thereon his signature discretion, with all good fidelity as well to maturity. A negotiable promissory note within the in blank before delivery, he is liable as the courts as to my clients; meaning of this Act is indorser, in accordance with the following 6. and I impose upon myself these Sec. 7. When payable on demand. 1. an unconditional promise in writing rules: voluntary obligations without any mental An instrument is payable on demand: made by one person to another, (a) If the instrument is payable to the order reservation or purpose of evasion. (a) When it is so expressed to be payable 2. signed by the maker, of a third person, he is liable to the payee 7. So, help me God. on demand, or at sight, or on presentation; 3. engaging to pay on demand, or at a and to all subsequent parties. or fixed or determinable future time, (b) If the instrument is payable to the order Sec 1. Form of negotiable instruments. (b) In which no time for payment is 4. a sum certain in money of the maker or drawer, or is payable to An instrument to be negotiable must expressed. 5. to order or to bearer. bearer, he is liable to all parties conform to the following requirements: subsequent to the maker or drawer. Where an instrument is issued, accepted, Sec. 126. Bill of Exchange, defined. (4) (c) If he signs for the accommodation of 1. It must be in writing and signed by the or indorsed when overdue, it is, as regards A bill of exchange is the payee, he is liable to all parties maker or drawer; the person so issuing, accepting, or 1. an unconditional order in writing subsequent to the payee. 2. Must contain an unconditional promise indorsing it, payable on demand. addressed by one person to another, or order to pay a sum certain in money; 2. signed by the person giving it, 3. Must be payable on demand, or at a Sec. 8. When payable to order. 3. requiring the person to whom it is Sec 66. Liability of general indorser. fixed or determinable future time; The instrument is payable to order where it addressed to pay on demand or the fixed Every indorser who indorses without 4. Must be payable to order or to bearer; is drawn payable to the order of a specified or determinable future time a sum certain qualification, warrants to all subsequent and person or to him or his order. It may be in money holders in due course: 5. Where the instrument is addressed to a drawn payable to the order of: 4. to order or to bearer. (a) The matters and things drawee, he must be named or otherwise mentioned in subdivisions (a), (b), and (c) indicated therein with reasonable certainty. (a) A payee who is not maker, drawer, or Sec 185. Check, defined. (4) of the next preceding section; and drawee; or A check is a bill of exchange drawn on a (b) That the instrument is, at the Sec. 3. When promise is unconditional. (b) The drawer or maker; or bank payable on demand. time of his indorsement, valid and An unqualified order or promise to pay is (c) The drawee; or Except as herein otherwise provided, subsisting; unconditional within the meaning of this Act (d) Two or more payees jointly; or the provisions of this Act applicable to a bill And, in addition, though coupled with: (e) One or some of several payees; or of exchange payable on demand apply to he engages that, on due presentment, it (f) The holder of an office for the time a check. shall be accepted or paid, or both, as the (a) An indication of a particular fund out being. case may be, according to its tenor, of which reimbursement is to be Sec. 30. What constitutes negotiation. and that if it be dishonored and the made or a particular account to be Where the instrument is payable to order, 1. An instrument is negotiated when it is necessary proceedings on dishonor be debited with the amount; or the payee must be named or otherwise transferred from one person to another in duly taken, (b) A statement of the transaction which indicated therein with reasonable such manner as to constitute the he will pay the amount thereof to the gives rise to the instrument. But an certainty. transferee the holder thereof. holder, or to any subsequent indorser who order or promise to pay out of a 2. If payable to bearer, it is negotiated by may be compelled to pay it. particular fund is not unconditional delivery; 3. if payable to order, it is negotiated by the indorsement of the holder and completed by delivery. Sec 65. Warranty where negotiation by Sec 124. Alteration of instrument. Sec 23. Forged signature; effect of. Sec 143. When presentment for delivery and so forth. (5) Where a negotiable instrument is When a signature is forged or made acceptance must be made. Every person negotiating an instrument by materially altered without the assent of all without the authority of the person whose Presentment for acceptance must be delivery or by a qualified indorsement parties liable thereon, signature it purports to be, made: warrants: it is avoided, - it is wholly inoperative, and (a) Where the bill is payable after sight, or (a) That the instrument is genuine and in in any other case, except as against - no right to retain the instrument, or all respects what it purports to be; a party who has himself made, authorized, - to give a discharge therefor, or where presentment for acceptance is (b) That he has a good title to it; (c) That all prior parties had capacity to or assented to the alteration and - to enforce payment thereof against necessary in order to fix the maturity of the subsequent indorsers. any party thereto, can be acquired instrument; or contract; But when an instrument has been through or under such signature, (b) Where the bill expressly stipulates that (d) That he has no knowledge of any fact materially altered and it shall be presented for acceptance; or which would impair the validity of the instrument or render it valueless. is in the hands of a holder in due course unless the party against whom it is sought (c) Where the bill is drawn payable But when the negotiation is by delivery not a party to the alteration, he may to enforce such right is precluded from elsewhere than at the residence or place of only, enforce payment thereof according to its setting up the forgery or want of authority. business of the drawee. the warranty extends in favor of no holder original tenor. other than the immediate transferee. In no other case is presentment for Sec 60. Liability of maker. The provisions of subdivision (c) of this acceptance necessary in order to render Sec 58. When subject to original The maker of a negotiable instrument, by section do not apply to a person any party to the bill liable. defense. making it, negotiating public or corporation securities In the hands of any holder other than a - engages that he will pay it according to other than bills and notes. holder in due course, a negotiable its tenor, and Sec 89. To whom notice of dishonor instrument is subject to the same defenses must be given. - admits the existence of the payee and Sec 52. Holder in due course. as if it were non-negotiable. But a holder Except as herein otherwise provided, his then capacity to indorse. A holder in due course is a holder who has who derives his title through a holder in when a negotiable instrument has been taken the instrument under the following due course, and who is not himself a party dishonored by non-acceptance or non- conditions: Sec 61. Liability of drawer. to any fraud or illegality affecting the payment, (a) That it is complete and regular upon its instrument, has all the rights of such The drawer by drawing the instrument notice of dishonor must be given face; former holder in respect of all parties prior - admits the existence of the payee and - to the drawer and (b) That he became the holder of it before to the latter. his then capacity to indorse; and - to each indorser, and it was overdue, and without notice that it - engages that, on due presentment, the has been previously dishonored, if such instrument will be accepted or paid, or any drawer or indorser to whom such Sec 55. When title defective. was the fact; both, according to its tenor, and notice is not given is discharged. The title of a person who negotiates an (c) That he took it in good faith and for instrument is defective within the meaning - that if it be dishonored and the value; necessary proceedings on dishonor be Sec 119. Instrument; how discharged. of this Act when: (d) That at the time it was negotiated to duly taken, A negotiable instrument is discharged: 1. he obtained the instrument, or any him, he had no notice of any infirmity in the signature thereto, he will pay the amount thereof to the (a) By payment in due course by or on instrument or defect in the title of the holder or to any subsequent indorser who behalf of the principal debtor; 2. by fraud, duress, or force and fear, person negotiating it. may be compelled to pay it. (b) By payment in due course by the party or other unlawful means, But the drawer may insert in the instrument accommodated, where the instrument is 3. or for an illegal consideration, Sec 57. Rights of holder in due course. an express stipulation negativing or limiting made or accepted for his accommodation; 4. or when he negotiates it in breach his own liability to the holder. (c) By the intentional cancellation thereof A holder in due course holds the of faith, or under such circumstances as instrument free from any defect of title of by the holder; amount to a fraud. prior parties, and free from defenses Sec 62. Liability of acceptor. (d) By any other act which will discharge a available to prior parties among The acceptor, by accepting the instrument, simple contract for the payment of money; themselves, and may enforce payment of engages that he will pay it according to the (e) When the principal debtor becomes the the instrument for the full amount thereof tenor of his acceptance and admits: holder of the instrument at or after maturity against all parties liable thereon. in his own right. (a) The existence of the drawer, the genuineness of his signature, and his capacity and authority to draw the instrument; and (b) The existence of the payee and his then capacity to indorse. Primarily Liable (3) Sec 53. When person not deemed - Maker of PN holder in due course. - Acceptor of BoE Where an instrument payable on demand - Certifier of a check is negotiated on an unreasonable length of time after its issue, Secondarily Liable (2) the holder is not deemed a holder in due - Drawer of a bill course. - Indorser of a note or bill
Sec 12. Ante-dated or post dated
Not Liable (1) instrument - Drawee, until he accepts the instrument The instrument is not invalid for the reason in which case he becomes an acceptor only that it is ante-dated or post-dated, provided this is not done for an illegal or Sec 36. When indorsement restrictive. fraudulent purpose. An indorsement is restrictive which either: The person to whom an instrument so (a) Prohibits the further negotiation of the dated is delivered acquires the title thereto instrument; or as of the date of delivery. (b) Constitutes the indorsee the agent of the indorser; or Sec 59. Who is deemed holder in due (c) Vests the title in the indorsee in trust for course. or to the use of some other persons. But Every holder is deemed prima facie to be a the mere absence of words implying power holder in due course; to negotiate does not make an but when it is shown that the title of any indorsement restrictive. person who has negotiated the instrument was defective, Sec 56. What constitutes notice of the burden is on the holder to prove that he defect. or some person under whom he claims To constitute notice of an infirmity in the acquired the title as holder in due course. instrument or defect in the title of the person negotiating the same, But the last-mentioned rule does not apply 1. the person to whom it is negotiated must in favor of a party who became bound on have had actual knowledge of the infirmity the instrument prior to the acquisition of or defect, such defective title. 2. or knowledge of such facts that his action in taking the instrument amounted to Sec 49. Transfer without indorsement; bad faith. effect of. Where the holder of an instrument payable Sec 54. Notice before full amount is to his order transfers it for value without paid. indorsing it, Where the transferee receives notice of the transfer vests in the transferee such any infirmity in the instrument or defect in title as the transferor had therein, and the title of the person negotiating the same the transferee acquires in addition, before he has paid the full amount agreed to be paid therefor, he will be deemed a the right to have the indorsement of the holder in due course only to the extent of transferor. the amount therefore paid by him. But for the purpose of determining whether the transferee is a holder in due course, the negotiation takes effect as of the time when the indorsement is actually made.