Case Digests

Factors not affecting negotiability of an instrument

Sec.  6.  Omissions;  seal;  particular  money.  -  The  validity  and negotiable character of an instrument are not affected by the fact that:
 
      (a) it is not dated; or
        
      (b) does not specify the value given, or that any value had been given therefor; or
        
      (c)  does  not  specify  the  place  where  it  is  drawn  or  the  place where it is payable; or
        
      (d) bears a seal; or
        
      (e)  designates  a  particular  kind  of  current  money  in  which payment is to be made.  
 
But  nothing  in  this  section  shall  alter  or  repeal  any  statute requiring  in  certain  cases  the  nature  of  the  consideration  to  be stated in the instrument.

 

EFFECT OF OMISSION OF DATE  

      Even  where  the  instrument  is  not  dated,  still  the  instrument  is  not rendered non-negotiable
      There  are  however  instances,  wherein  the  date  is  needed  for  the instrument to become negotiable
      When are these instances?   
o      When it is payable in a period after date or after sight
o      When it is allowed to write the date… (Section 13)
 

EFFECT OF OMISSION OF VALUE

      Usually,  what  is  stated  in  the  instrument  is  that  it  is  being  used  for “value received” without specifying what that value is
      Nevertheless,   the   absence   of   value   given,   doesn’t   render   the instrument non-negotiable
 

PARTICULAR KIND OF MONEY

      Even if the money in which the instrument is to be payable is not legal tender, provided that it is current money or foreign money which has a fixed  value  in  relation  to  the  money  in  the  country  in  which  the instrument  is  payable,  still  the  negotiability  of  the  instrument  is  not affected, as the instrument still is considered payable in money

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Musikatorni is a musical project by Atty. Ranny Randolf B. Libayan, known for its original song compositions that blend insightful lyrics with captivating melodies.
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