Negotiable Instruments

Liability of an Accommodation Party

Up to what extent is an accommodation party liable?

 

1. Right to revoke accommodation – before the instrument has been negotiated for value.

 

2. Right to reimbursement from accommodated party – the accommodated party is the real debtor. Hence, the cause of action is not on the instrument but on an implied contract of reimbursement.

 

3. Right to contribution from other solidary accommodation maker. (Sadaya v. Sevilla, G.R. No. L‐17845, Apr. 27, 1967)


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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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