Negotiable Instruments

A Corporation as an Accommodation Party

Can a corporation be an accommodation party, if so, does the liability of an accommodation party attach to a corporation?

 

No. 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. (Crisologo‐Jose v. CA,G.R. No. 80599, Sept. 15, 1989)


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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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