BVR & ASSOCIATES
  • HOME
  • OUR SERVICES
    • TAX COMPLIANCE & ACCOUNTING
    • BUSINESS REGISTRATION
    • BACK OFFICE SUPPORT SERVICES
    • BUSINESS PROCESS OUTSOURCING
    • PAYROLL SERVICES
    • VIRTUAL ASSISTANT
    • FINANCIAL PLANNING
    • ASSET MANAGEMENT
    • HUMAN RESOURCES
  • About
  • ARTICLES
    • TESTIMONIALS
    • BLOG
  • CONTACT US
  • SERVICES

a collections of case digests and laws that can help aspiring law students to become a lawyer


Montinola vs PNB (88 Phil 178, 26 Feb 1951)

7/4/2021

0 Comments

 
Montinola vs PNB (88 Phil 178, 26 Feb 1951)

​Facts:
Laya, provincial treasurer of Misamis Oriental, issued a check to Ramos. Montinola in exchange of the check paid 45K Japanese notes, instead of 85K Japanese notes, to Ramos. On the back of the check, Ramos wrote:
“Pay to the order of Enrique P. Montinola P30,000 only. The balance to be deposited in the Philippine National Bank to the credit of M. V. Ramos.”

Montinola sought to have the check encashed but PNB dishonored the check. It appears that there was an insertion made. Under the signature of Laya, the words “Agent, Philippine National Bank” was inserted, thus making it appear that Laya disbursed the check as an agent of PNB and not as provincial treasurer of Misamis Oriental.

Issue:
Whether the insertion of "Agent, Phil. National Bank" is a material alteration.

Held:
Yes, it is material alteration.
The insertion of the words "Agent, Phil. National Bank" which converts the bank from a mere drawee to a drawer and therefore changes its liability, constitutes a material alteration of the instrument without the consent of the parties liable thereon, and so discharges the instrument. (Section 124 of the Negotiable Instruments Law). The check was not legally negotiated within the meaning of the Negotiable Instruments Law. Section 32 of the NIL provides that "the indorsement must be an indorsement of the entire instrument. An indorsement which purports to transfer to the indorsee a part only of the amount payable does not operate as a negotiation of the instrument." Montinola at most he may be regarded as a mere assignee of the P30,000 sold to him by Ramos, in which case, as such assignee, he is subject to all defenses available to the drawer Provincial Treasurer of Misamis Oriental and against Ramos.

0 Comments



Leave a Reply.

    Archives

    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
    • TAX COMPLIANCE & ACCOUNTING
    • BUSINESS REGISTRATION
    • BACK OFFICE SUPPORT SERVICES
    • BUSINESS PROCESS OUTSOURCING
    • PAYROLL SERVICES
    • VIRTUAL ASSISTANT
    • FINANCIAL PLANNING
    • ASSET MANAGEMENT
    • HUMAN RESOURCES
  • About
  • ARTICLES
    • TESTIMONIALS
    • BLOG
  • CONTACT US
  • SERVICES