BVR CONSULTING INC
  • HOME
  • OUR SERVICES
    • BUSINESS REGISTRATION
    • BACK OFFICE SUPPORT SERVICES
    • I.T. SOLUTIONS
    • BUSINESS PROCESS OUTSOURCING
    • PAYROLL SERVICES
    • TRAININGS & SEMINARS
    • AUDIT
    • TAX COMPLIANCE & ACCOUNTING
    • ADVISORY
  • BVR ACCOUNTING
    • TAX COMPLIANCE & ACCOUNTING
    • ADVISORY
    • AUDIT
    • TRAININGS & SEMINARS
  • CONTACT US
  • ARTICLES
    • TESTIMONIALS
    • BLOG
  • ONLINE TAX PREPARATION

a collections of case digests and laws that can help aspiring law students to become a lawyer. 
this webpage is
 primarily designed to assist students of law in their studies. It is merely a tool. The use of our Services does not guarantee success in obtaining a law degree nor in passing the Bar Exams. we makes no warranties or representations of any kind, whether expressed or implied for the Services provided. The cases, laws, and other publications found in this site are of public domain, collected from public sources such as the Supreme Court online library. The content however have been heavily modified, formatted, and optimized for better user experience, and are no longer perfect copies of their original. we gives no warranty for the accuracy or the completeness of the materials. This site also contains materials published by the students, professors, lawyers, and other users of the our Services. 


Crisologo vs CA (177 SCRA 594, 15 Sept 1989)

7/11/2021

0 Comments

 
Crisologo vs CA (177 SCRA 594, 15 Sept 1989)

Facts:
Respondent was the vice-president of Mover Enterprises, Inc. in-charge of marketing and sales; and the president of the said corporation was Atty. Oscar Z. Benares. Atty. Benares, in accommodation of his clients, issued Check payable to petitioner. Since the check was under the account of Mover Enterprises, Inc., the same was to be signed by its president, Atty. Oscar Z. Benares, and the treasurer of the said corporation. However, since at that time, the treasurer of Mover Enterprises was not available, Atty. Benares prevailed upon the plaintiff, Ricardo S. Santos, Jr., to sign the aforesaid check as an alternate signatory. When petitioner deposited this check it was dishonored for insufficiency of funds. Hence, petitioner filed a criminal complaint against Respondent. Respondent tendered cashier’s check to the petitioner who refused to receive the cashier’s check in payment of the dishonoured. Hence, plaintiff deposited said amount with the Clerk of Court. After trial, the court a quo, holding that it was “not persuaded to believe that consignation referred to in Article 1256 of the Civil Code is applicable to this case,” rendered judgment dismissing respondent complaint and petitioner’s counterclaim. CA reversed and set aside said judgment of dismissal and revived the complaint for consignation, directing the trial court to give due course thereto. Hence, the instant petition.

Issue:
Whether the corporation is liable to the petitioner as an accommodation party when the corporate officer issued a corporation’s check in their personal capacity.

​Held:
No, The provision of the Negotiable Instruments Law which holds an accommodation party liable on the instrument to a holder for value, although such holder at the time of taking the instrument knew him to be only an accommodation party, does not include nor apply to corporations which are accommodation parties. This is because the issue or indorsement of negotiable paper by a corporation without consideration and for the accommodation of another is ultra vires. Hence, one who has taken the instrument with knowledge of the accommodation nature thereof cannot recover against a corporation where it is only an accommodation party. If the form of the instrument, or the nature of the transaction, is such as to charge the indorsee with knowledge that the issue or indorsement of the instrument by the corporation is for the accommodation of another, he cannot recover against the corporation thereon.

0 Comments



Leave a Reply.

    Archives

    September 2024
    August 2024
    May 2024
    December 2023
    July 2023
    June 2023
    May 2023
    January 2023
    December 2022
    August 2022
    July 2022
    June 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    July 2021
    June 2021
    May 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    April 2020
    March 2020
    October 2019
    September 2019
    August 2019
    March 2018

    Categories

    All
    Agrarian Law
    Articles-of-incorporation
    By-laws
    Constitutional Law
    Criminal Law
    Law
    Persons And Family Relations

    RSS Feed

Powered by Create your own unique website with customizable templates.
  • HOME
  • OUR SERVICES
    • BUSINESS REGISTRATION
    • BACK OFFICE SUPPORT SERVICES
    • I.T. SOLUTIONS
    • BUSINESS PROCESS OUTSOURCING
    • PAYROLL SERVICES
    • TRAININGS & SEMINARS
    • AUDIT
    • TAX COMPLIANCE & ACCOUNTING
    • ADVISORY
  • BVR ACCOUNTING
    • TAX COMPLIANCE & ACCOUNTING
    • ADVISORY
    • AUDIT
    • TRAININGS & SEMINARS
  • CONTACT US
  • ARTICLES
    • TESTIMONIALS
    • BLOG
  • ONLINE TAX PREPARATION