SAN BEDA COLLEGE ALABANG

SCHOOL OF LAW

OUTLINE

IN

NEGOTIABLE INSTRUMENTS LAW

1ST Semester, School Year 2015-2016

Saturdays, 9 a.m. to 12 p.m.

RODERICK R.C. SALAZAR III

FORTUN NARVASA & SALAZAR

Tel No. 812-8670/Mobile Phone No. 0917-8489462/e-mail: rrcsalazar@fnslaw.com.ph

Class Rules:

1. Basis of Grades

i. Recitation 30%

a. Minimal reading from notes/laptops;

b. Unexcused absences failing grade when called for recitation

c. No talking or texting while others are reciting; mobile phones must be

turned off, otherwise, for confiscation during classhours.

ii. Surprise Quizzes 5%

iii. Midterms 30% -

iv. Final Exams 35%

2. No prescribed textbook but questions may be sourced from either of the books of de Leon

or Aquino - outline is basis for discussion flow.

3. Seat plan Class President is requested to provide me a seat plan with passport photos of

students.

4. Dress Code observe College rules.

5. Waiting time for Professor before Class may leave up to one (1) hour.

I. INTRODUCTION

A. History

1. U.S. Uniform Negotiable Instruments Act

2. U.S. Uniform Commercial Code

3. Code of Commerce Book II, Articles 443 to 556

B. Governing Law Act No. 2031, Negotiable Instruments Law (NIL or Act,

hereinafter);

1. Sec.1 197, NIL Repealing Clause

2. Sec. 196, NIL Cases not provided for in the Act

3. Article 18, Civil Code

- Rivera vs. Spouses Chua; G.R. No. 184458, January 14, 2015

- State Investment House, Inc. vs. Court of Appeals, 217 SCRA 32 [1993]

- Government Service Insurance System vs. CA and Mr. and Mrs. Isabelo R.

Racho, 170 SCRA 533 [1989]

- Metropolitan Bank & Trust Company vs. CA, et al., 194 SCRA 169 [1991]

C. Functions and Significance of Negotiable Instruments

1. Money Substitute Lozano vs. Martinez, 146 SCRA 323

2. Medium of Exchange in Business Transactions

3. Medium of Credit in Business Transactions

Lim vs. Mindanao Wines & Liquor Galleria, 678 SCRA 628 [2012]

1 References to Sections or Section in this outline shall mean the relevant Sections of the NIL,

unless otherwise stated.

Edward Vange Arriba

- Gaw vs, Chua; 551 SCRA 505 [2008]

D. Features of Negotiable Instruments

1. Negotiability Traders Royal Bank vs. CA, et al., 269 SCRA 15 [1997]

2. Secondary Contracts Accumulation State Investment House, supra.

E. Forms/Kinds of Negotiable Instruments

1. Sec. 126 bill of exchange HSBC, Philippine Branches vs. Comm. Of

Internal Revenue, 724 SCRA 499

2. Sec. 184 promissory note; Sec. 130

3. Differences between Bill of Exchange and Promissory Note

4. Others

a. Sec. 185 checks Citibank, N.A. vs. Sabeniano, 504 SCRA 378

[2006]

b. Certificate of Deposit Far East Bank & Trust Company vs.

Queremit, G.R. No. 148582, January 16, 2002.

c. Bonds, debentures, notes Sec. 3, Republic Act No. 8799,

Securities Regulation Code (SRC); Rule 12.1-6

5. Limited Negotiability Instruments

a. Document of Title

b. Letter of Credit Code of Commerce, Art. 568

c. Trust Receipts Trust Receipts Law P.D. No. 115.

d. Certificate of Stock Corporation Code, B.P. No. 68

6. Phases in a Negotiable Instruments Effectivity See Aquino, Notes and

Cases on Banking Law and the Negotiable Instruments Law, Vol. 1, p. 22,

[2014 edition]

II. GENERAL DISCUSSION ON NEGOTIABLE INSTRUMENTS

A. Form and Interpretation

1. Sec. 1 requisites for negotiability; non-negotiability

- Caltex (Philippines), Inc. vs. CA, 212 SCRA 448 [1992]

- Philippine Bank vs. Aruego, 102 SCRA 530 [1981]

- Banco de Oro Savings & Mortgage Bank vs. Equitable Banking

Corporation, et al., 157 SCRA 188 [1988]

- Garcia vs. Llamas, 417 SCRA 292 [2003]

a. Written and signed by maker or drawer Sec. 191

b. Contain Unconditional promise or order to pay a sum certain in money

Secs. 3 (Unconditional Promise)

- Sec. 10 (Terms, when sufficient);

- Art. 1173, 1181, New Civil Code;

- Sec. 2 (Certainty as to sum)

- Pacifica Jimenez vs. Bucoy, 103 Phil. 40 [1958]

Allowable conditions presentment

Sec. 70 (presentment for payment),

- Sec. 143 (presentment for acceptance);

- Secs. 152 (protest necessary), 165 (agreement of acceptor for

honor), 167 (protest of bill accepted for honor), 170 (dishonor of

bill by acceptor for honor);

- Sec. 89 (to whom notice of dishonor is given).

c. Payable on Demand or at a fixed or determinable future time

Secs. 7 (payable on demand) and Sec. 4 (determinable future time);

- Art. 1193; Sec. 5 (Additional provisions not affecting negotiability).

d. Payable to Order or to Bearer words of negotiability;

- Sec. 8 (payable to order); Sec. 9 (payable to bearer);

Fictitious Payee Rule;

Bearer defined Sec. 191, par. 4

- People vs. Wagas, 705 SCRA 17 [2013]

- Salas vs. CA, et al., 181 SCRA 296 [1990]

- Philippine National Bank vs. Rodriguez, et al., 566 SCRA 513

[2008]

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Edward Vange Arriba

Edward Vange Arriba

Edward Vange Arriba

Edward Vange Arriba

Edward Vange Arriba

Edward Vange Arriba

Edward Vange Arriba

Edward Vange Arriba

Edward Vange Arriba

Edward Vange Arriba

Edward Vange Arriba

Edward Vange Arriba

Edward Vange Arriba

Edward Vange Arriba

- Consolidated Plywood Industries, Inc. vs. IFC Leasing &

Acceptance Corp. 149, SCRA 448 [1987]

e. Named drawee.

2. - Sec. 6 Omissions Not affecting negotiability;

- Sec. 13 (date insertion)

- Sec. 11 (presumption as to date);

- Ponce de Leon v. Rehabilitation Finance, 36 SCRA 289

- Buencamino v. Hernandez, 8 SCRA 483

- Art. 2244[4], Civil Code

- Sec. 12 (ante-dated/post-dated)

- Pacheco v. CA, 319 SCRA 595

- People vs. Tiongco, 290 SCRA 595

- Sec. 14 (filling in blanks)

- Gonzales vs. Pe, 655 SCRA 181, [2011]

- Borromeo v. Sun, 317 SCRA 176

3. Sec. 15 Incomplete Instruments

- Development Bank of Rizal v. Wei, 219 SCRA 736

Sec. 17 (Construction of ambiguous instruments)

- Philippine National Bank vs. Concepcion Mining Co.,

5 SCRA 705 [1962]

- Republic Planters Bank vs. CA, 216 SCRA 738 [1992]

- Astro Electronics Corp. vs. Philippine Export and Foreign Loan

Guarantee Corp. 411 SCRA 462 [2003]

- State Investment House, Inc. vs. CA, supra.

- Equitable Banking Corp. vs. Hon. CA, 161 SCRA 518 [1988]

4. Sec. 18 (Liability Using Trade or Assumed Name)

5. Sec. 19 (signature by agent)

6. Sec. 20 (liability of an agent)

7. Sec. 21 (signature by procuration;

8. Sec. 22 (Indorsement by infant or corporation)

9. Sec. 23 (Forged Signature)

10. Sec. 24 (Presumption of Consideration)

- Cayanan vs. North Star International Travel, Inc. 658 SCRA 644

[2011]

B. Parties

1. Parties (Sec. 191 in relation to Sec. 126 and 184)

Holder

Maker/Drawer

Payee

Drawee/Acceptor

Bearer

Indorser

Indorsee

- Villanueva v. Nite, 496 SCRA 459

- Hi-Cement Corp. v. Insular Bank of Asia, 534 SCRA 269

2. Requisites of Contract and Capacity to Contract

Articles 1318 and 1327, Civil Code

Article 1381, Civil Code (Rescissible Contracts)

Article 1390, Civil Code (Voidable Contracts)

Article 1403, Civil Code (Unenforceable Contracts)

Article 1409, Civil Code (Void Contracts)

3. Exceptions with Respect to Negotiable Instruments

Incapacity (Sec. 22, NIL)

Illegality (Secs. 38 and 39, NIL)

Forgery (Secs. 18 and 23, NIL)

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Edward Vange Arriba

Edward Vange Arriba

Edward Vange Arriba

Edward Vange Arriba

Edward Vange Arriba

Edward Vange Arriba

Edward Vange Arriba

Edward Vange Arriba

Edward Vange Arriba

Edward Vange Arriba

Edward Vange Arriba

Edward Vange Arriba

Duress (Sec. 55, NIL; Article 1335, Civil Code)

4. Liabilities (Sec. 192, NIL)

Primarily Liable (Maker and Acceptor)

Secondarily Liable (Drawer and Indorser)

5. Indorser vs. Guarantor/Surety

- Allied Banking Corp. v. Court of Appeals, 494 SCRA 467

III. CONSIDERATION AND EFFECTS

A. Presumption

- Sec. 24, NIL

- Travel-On Inc. v. CA, 210 SCRA 351

- Idos v. CA, 296 SCRA 19

B. Value

- Sec. 25, NIL

- Rodriguez v. CA, 207 SCRA

- Pineda vs. dela Rama, 121 SCRA 671

C. Holder for Value

- Sec. 26, NIL

- Bataan Cigar v. CA, 230 SCRA 643

D. Lien Holder; Holder for value

- Sec. 27, NIL

- Caltex (Phils.) v. CA, 212 SCRA 448

E. Effect of Want of Consideration

- Sec. 28, NIL

F. Accommodation Party

- Sec. 29, NIL

- Spouses Sierra v. PAIC Savings and Mortgage, Inc., 734 SCRA 694

[2014]

- Aglibot v. Santia, G.R. No. 185945, December 5, 2012

- Gonzales v. PCIB, 644 SCRA 180 {2011}

- Jose v. CA, 177 SCRA 594

- Ang v. Associated Bank, 532 SCRA 244

IV. TRANSFER AND NEGOTIATION

A. Issuance and Delivery

- Sec. 16, 191 NIL

- Rizal Commercial Banking Corporation v. Hi-Tri Development

Corporation, G.R. No. 192413, June 13, 2012

- In Re: Marten's Estate

- De la Victoria v. Burgos, 245 SCRA 374

- Lim v. CA, 251 SCRA 408

B. Negotiation; Holder

- Secs. 30, 191, NIL

- State Investment House v. CA, 217 SCRA 32

- Bank of Philippine Islands v. Court of Appeals, 512 SCRA 620

C. Methods of negotiation

- Allied Banking Corp. v. CA, 494 SCRA 467

D. Indorsement

- By signature on instrument or on allonge

- Sec. 31, NIL

- In case of joint or alternative payees or indorsers

- Where name is misspelled

E. Indorsement must be entire instrument

- Severally:

- Jointly and severally

- Sec. 32, NIL

- Montinola v. PNB, 88 Phil. 178

F. Kinds of Indorsements

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- Special & blank indorsements; payable to bearer, qualified and restrictive

- Secs. 34, 40, 35, NIL

G. Qualified Indorsement

- Metropol Bacolod Financing & Investment Corp. v. Sarmak, 120 SCRA

864

- Great Asian Sales Center Corp. v. CA, 381 SCRA 557

H. Conditional Indorsement

- Sec. 39, NIL

I. Indorsement to or by collecting bank

- Metropolitan Bank & Trust Co. v. Phil. Bank of Communications, 536

SCRA 556

J. Unindorsed instruments

- Sec. 49, NIL

- Metropolitan Bank and Trust Company v. Chiok, G.R. No. 175302,

November 26, 2014

K. Cancellation of indorsements

- Sec. 48, NIL

L. Indorsement by agent

- Sec. 44, 20 NIL

- Francisco v. CA, 319 SCRA 054

M. Presumption as to indorsements

- Secs. 45 (time), 46 (place) , 42 (payee)

N. Continuation of negotiable character

- Sec. 47, NIL

V. HOLDER IN DUE COURSE

A. Holder; Holder for Value and Holder and in due Course

- Secs. 26, 52, 53 and 191 NIL

- Patrimonio v. Gutierrez, 724 SCRA 636, June 4, 2014

- Prudencio v. CA, 143 SCRA 11

- BPI v. Roxas, 536 SCRA 168

B. Holder For value

- Secs. 24, 25, 26 and 27, NIL

- Caltex (Phils.) v. CA, 212 SCRA 448

C. In Good Faith

- Secs. 55, 56 NIL

- Article 1338, 1344 Civil Code

- Gonzales v. RCBC, 508 SCRA 459

1. Crossing a check; bad faith

Hi-Cement Corp. v. Insular Bank of Asia, 534 SCRA 269

Metropolitan Bank & Trust Co.v. Philippine Bank of

Communications, 536 SCRA 556

2. Financing company; holder in good faith

Salas vs. CA, 181 SCRA 296

Great Asian Sales Center Corp. v. CA, 381 SCRA 557

Sec. 146, RA No. 7394 (Consumer Act of the Phils.)

3. Postdating a check

- Sec. 12, NIL

- People of the Philippines v. Gilbert Reyes Wagas, G.R. No.

157943, September 4, 2013

- State Investment House v. CA, 217 SCRA 32

4. Suspicious circumstances

- Vicente de Ocampo & Co. v. Gatchalian, 3 SCRA 596

5. Effect of purchase at a discount

6. Effect of notice before full payment

- Sec. 54, NIL

7. Constructive notice not sufficient

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8. Notice of accommodation not notice of defect

- Sec. 29

D. Complete & Regular; material alteration

- Secs. 124, 125, NIL

- Leonardo Bognot v. RRI Lending Corporation, G.R. No.

180144, September 24, 2014

- International Corporate Bank v. CA, 501 SCRA 20

E. Holder at or after maturity & without notice of dishonor

- Sec. 53, NIL

F. Rights of a Holder in Due Course

- Secs. 57, 58, NIL

1. Personal defenses

2. Real defenses

- State Investment House v. CA, 217 SCRA 32

- Yang v. CA, 409 SCRA 159

G. Effect of qualified conditional and restrictive indorsements

H. Payee as holder in due course

- Howard National Bank v. Wilson

I. Rights of a purchaser from a holder in due course

- Sec. 58, NIL

- Gonzales v. Rizal Commercial Banking Corp., 508 SCRA 459

J. Presumption in favor of due course holding

- Sec. 59, NIL

- BPI v. CA, 232 SCRA 302

K. Transfer of unindorsed instrument

- Sec. 49, NIL

- Commercial Bank of Lafayette & Trust Co. vs. Barry

VI: DEFENSES AND EQUITIES

A. Defenses and Equities in general

- Secs. 57, 58, 55, NIL

B. Incapacity

- Sec. 22, NIL

- Murray vs. Thompson

- Sec. 45, Corporation Code

C. Illegality

Articles 38, 39 (i); Civil Code

- Rodriguez vs. Martinez

- Pineda v. de la Rama, 121 SCRA 671

D. Forgery

- Secs. 23, 18, NIL

- Associated Bank v. CA, 252 SCRA 620

- Republic v. Edrada, 65 SCRA 680

E. Acceptance and payment under mistake

Effects of Acceptance

Far East Bank & Trust Co. v. Gold Palace Jewellery, 562 SCRA 604

When drawee accepts and pays for forged instrument

Sec. 62, NIL

Price vs. Neal

PNB vs. CA, 25 SCRA 693

Extensions of Price vs. Neal doctrine

- Over draft

- First National Bank of Portland vs. Noble

- Liberty Trust vs. Haggerly

- Stop payment order

Effect of negligence of depositor

PNB v. Quimpo, 158 SCRA 582

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Gempesaw v. CA, 218 SCRA 682

Effect of payment under forged indorsements

Manila Lighter Trans. v. CA, 182 SCRA 251

Samsung Construction v. Far East Bank, 436 SCRA 402

Effect of negligence of drawee in informing recipient of forgery

Clearfield Trust Co. v. US

Estoppel

MWSS v. CA, 143 SCRA 20

F. Material alteration

1. In general

Sec. 124, 125, NIL

Banco Atlantico v. Auditor General, 81 SCRA 335

Metropolitan Bank & Trust Co. v. Cabilzo, 510 SCRA 259

2. Effect of negligence of drawer of checks

Foutch v. Alexandria Bank & Trust Co.

3. Effect of drawees payment of acceptance of altered check

Marine National Bank v. National City Bank

4. Payment under materially altered instrument

Metropolitan Bank & Trust Co. v. Cabilzo, 510 SCRA 259

G. Fraud

C.I.T. Corp. v. City of Taunton

H. Duress

I. Complete instrument which is undelivered

Sec. 16, NIL

People v. Yabut, 76 SCRA

Lim v. CA, 251 SCRA 408

J. Incomplete instrument which delivered

Sec. 15, NIL

Linick v. A.J. Nutting Co.

K. Incomplete instrument which has been delivered

Sec. 14, NIL

Borromeo v. Sun, 317 SCRA 176

Pacheco v. CA, 319 SCRA 595

L. Consideration

Sec. 28, NIL

Dougherty v. Salt

M. Signature under Trade Name or Agency

- Secs. 18, 19 and 20, NIL

Francisco v. CA, 319 SCRA 354

Philippine Bank of Communicationsv. Aruego, 102 SCRA 530

VII. LIABILITY OF PARTIES

A. Liability of primary parties

1. In general

Sec. 192, NIL

- Far East Bank & Trust Co. v. Gold Palace Jewelry, 562 SCRA 604

2. Want of demand; presentment

Sec. 70, NIL

Rivera v. Spouses Chua, G.R. Nos. 184458 & 184472, January 14, 2015

Clark v. Sellner, 42 Phil. 385

3. Status of drawee prior to acceptance or payment; effect of stop order

Sec. 127, 189, NIL

- Republic v. FNCB, 35 SCRA 851

- Phil. Bank of Commerce v. CA, 269 SCRA 695

4. Liability of acceptor

Sec. 62, NIL

-Far East Bank & Trust Co. v. Gold Palace Jewellery, 562 SCRA 604

B. Formal requisites of acceptance

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Sec. 191, 132, 133, 138, NIL

- Philacor Credit Corporation, vs.Commissioner of Internal

Revenue, G.R. No. 169899, February 06, 2013

Constructive acceptance

Secs. 136, 137, 150

- Wisner vs. First National Bank of Gallitzin

C. Acceptance on a separate instrument

Secs. 134, 135

- Coolidge vs. Payson

D. Kinds of Acceptance

1. General acceptance

- Secs 141, 142, NIL

2. Qualified acceptance

Sec. 141, 142 NIL

3. Trade acceptance

4. Bankers acceptance

E. Checks

- Secs 185, 63

- Areza v. Express Savings Bank, Inc.734 SCRA 588, [2014]

- PAL v. CA, 181 SCRA 557

- International Corporate Bank v. Gueco, 351 SCRA 516

1. Certification and its effects

Secs. 187, 188 and 189

- Roman Catholic Archbishop of Malolos Inc v. IAC

2. Distinction between surrender of check upon payment and negotiation

3. Clearing of checks

F. Liability of secondary parties

Sec. 70

1. Liability of drawer; stop payment

Sec. 61

PNB vs. Picornell, 46 Phil. 716

2. Criminal liability for bouncing checks

a) under B.P. No. 22,

- Moster v. People, 546 SCRA 287

b) estafa under the Revised Penal Code

- Lazaro v. Martinez, 146 SCRA 323

- Dy v. People, 571 SCRA 59

3. Liability of qualified indorsement and one negotiating by delivery

- Sec. 65

4. Liability of a general or unqualified indorser

- Secs. 66, 67, 63, 40, NIL

- Allied Banking Corp. v. Lim Sio Wan, 549 SCRA 504

5. Liability of restrictive indorsers

6. Order of liability among indorsers

Sec. 68, NIL

G. Liability of accommodation party

- Secs. 29, 63, 64

Ingalls vs. Marston

Prudencio vs. CA, 143 SCRA 7

PRESENTMENT

I. Presentment for acceptance

1. When necessary effect of non-presentmen

- Secs. 143, 144, 193, NIL

2. How and when made

Secs. 145, 146, NIL

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3. When excused

Secs. 148, 147, NIL

4. Dishonor and its effects

Secs. 149, 150, 151, 89, 117, NIL

J. Presentment of payment

1. When presentment necessary; effect of non-presentment

Secs. 143, 144, 193, NIL

2. When presentment not necessary

a) As to drawer

Sec. 79, NIL

b) As to indorser

Sec. 80, NIL

c) As to all secondary parties

Sec. 82, 151, 111, NIL

3. Date and time of presentment of instrument bearing fixed maturity

Sec.s 71, 85, 86, 124, NIL

- Ting Ting Pua vs. Sps. Benito Lo Bun Tiong and Caroline Siok

Ching Teng, G.R. No. 198660, October 23, 2013

- Far East Realty Investment Inc. v. CA, 166 SCRA 256

4. Date of presentment of demand notes

Sec. 7, NIL

Buencamino v. Hernandez, 85 SCRA 483

5. Date of presentment of demand bills of exchange

Columbian Banking vs. Boween

6. Date of presentment of checks

Secs. 185, 186, NIL

City of Naga v. Agna, 715 SCRA 176

Wong v. CA, 351 SCRA 100

7. When delay in presentment excused

Sec. 81, NIL

8. Manner of presentment

Sec. 74, NIL

9. What constitute sufficient presentment

Sec. 72, NIL

a. By whom

Crossed checks

- Equitable Banking Corporation v. Special Steel Products,

Inc., G.R. No. 175350, June 13, 2012

- PCIB v. Balmaceda, 658 SCRA 33[2011]

b. Time of presentment

Secs. 72(b), 75

c. Place of presentment

Sec. 73, NIL

d. To whom presentment must be made

Secs 72(d), 76, 77, 78, NIL

10. What constitutes dishonor by non-payment

Sec. 83, NIL

11. Effect of dishonor by non-payment

Sec. 84, NIL

K. Notice of dishonor

1. When necessary

Sec. 89

2. Form and contents must be given

Secs. 95, 96, NIL

3 . Time within which notice must be given

Secs. 102, 103, 104, 105, 106, 107, 113

Arterburn vs. Wakefield

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4. Place where notice must be given

Sec. 108

5. By whom notice may be given

Sec. 90, 91, NIL

6. To whom notice must be given

a. if given by agent

Sec. 94, NIL

b. To whom in general

Sec. 97, NIL

c. if party is dead

Sec. 98, NIL

d. to partners

Sec. 99, NIL

e. to joint partners

Sec. 100, NIL

f. to bankrupt

Sec. 101, NIL

7. In whose favor notice operates

Sec. 92, 9.

8. When rule requiring notice not applied

a. In general

Sec. 112

b. when notice of non-acceptance already given

Sec. 116

c. Waiver

Secs. 109, 110

Peoples National Bank of Ypsiolanti vs. Dicks

d. When not necessary to charge drawer

Sec. 114

State Investment House vs. CA, supra

e. When not necessary to charge indorser

Sec. 115

9. Legal effect of failure to give notice

Secs. 89, 117

PROTEST

L. Protest

1. Definition and method

Velasquez v. Solidbank, Corp., 550 SCRA 119

2. When necessary

Secs. 152, 129, 157

3. Forms and contents of certificate of protest

Sec. 153

a. Purpose of the certificate of protest

b. By whom made

Sec. 154

4. Time and place of protest

Sec.s 155, 156

5. Protest for better security

Sec. 158, NIL

6. When delay is excused and protest

Secs. 159, 112, NIL

Ellenbogen vs. State Bank

7. Waiver of protest

Sec. 111, NIL

8. Protest in case of loss of instrument

Sec. 160

M. Acceptance for honor

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Secs. 161, 131, NIL

N. Payment for honor

Sec. 171, NIL

O. Liability of party on indorsement after maturity

Sec. 7, NIL

Bishop vs. Dexter

P. Instruments payable at a bank

Sec. 87, NIL

Binghampton Pharmacy vs. First National Bank

Q. Bills in set

Secs. 178, 179, 180, 181, 182, 183, NIL

R. Liability of transferors or assignors or negotiable instruments

Art. 1628 CC

VIII. DISCHARGE

PRIMARILY LIABLE

A. Discharge of the instrument; generally

Sec. 119, NIL

B. By payment in due course

Secs. 51, 88

1. Medium of payment

PNB v, CA, 181 SCRA 557

2. By whom made

Fox vs. Kroeger

3. When check deemed paid by drawee bank

- Philippine National Bank v. Spouses Cheah Chee Chong and

Ofelia Camacho Cheah, G.R. No. 170865, April 25, 2012

4. To whom made

Equitable Banking vs. CA

In Re Harbaughs Estate

5. At or after maturity

6. In good faith and without notice

C. By intentional cancellation

Secs. 119(c), 123, NIL

- Jones Admrs vs. Coleman

D. By any other act which will discharge a contract

Manchester v. Parsons

E. By reacquisition of principal debtor in his own right

Sec. 119(e), NIL

F. By renunciation of holder

Sec. 122, NIL

McGlynn vs. Granstrom

SECONDARILY LIABLE

A. In General

Sec. 120, NIL

B. Tender of payment

Legaspi v. CA, 142 SCRA 82

C. Renunciation by holder

Sec. 122, NIL

D. Cancellation; unintentional

Sec. 123, NIL

E. Alteration

Sec. 124, 125, NIL

EXTINGUISHMENT OF OBLIGATIONS

Article 1231, Civil Code

- Payment or performance

- Loss of the thing due

- Condonation or remission of the debt

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- Confusion or merger of rights

- Compensation

- Novation

- Annulment

- Rescission

- Fulfilment of a resolutory condition

- Prescription

Nothing follows

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