Hormigones y morteros Características

FACTS:

The government filed a complaint for escheat of certain unclaimed bank deposits balances pursuant to a law, which provides that unclaimed balances—credits, money, bullion, security or other evidence of indebtedness of any kind, and interest with banks—shall be deposited with the government if it remains to be unclaimed within a period of 10 years of more.

One of the banks against the complaint has been filed is First National City Bank. Although it concedes that the government had the right to claim the unclaimed deposit balances, it seeks to exclude some which, according to it, are not within the purview of credits and deposits as defined in law. the trial court held in favor of the bank, excluding from the claim the manager’s checks and other demand drafts.

HELD:

Credit is a sum credited on the books of a company to a person who appears to be entitled to it. it presupposes a creditor-debtor relationship and may be said to imply ability, by reason of property or estates, to make a promised payment. It is correlative to indebtedness, and that which is due to any person, as distinguished to that which he owes.

Do demand drafts and telegraphic orders come within the purview of credits or deposits employed in the law?

Since the demand drafts herein involved have not been presented either for acceptance or payment, the inevitable consequence is that the bank never had the chance of accepting or receiving them. Verily, the bank

never became a debtor of the payee concerned and as such the aforesaid drafts cannot be considered as credits subject to escheat within the meaning of the law.

Further, a demand draft is different from a cashier’s check for this is a primary obligation of the bank which issues it and constitutes a written promise to pay upon demand. It is an order to a third party purporting to be drawn upon a deposit of funds.

If there is any consolation, the telegraphic orders can be escheated in favor of the government. The agreement to remit creates a contractual obligation and has been termed a purchase and sale transaction. The purchaser of a telegraphic transfer upon making payment completes the transaction insofar as he is concerned, though insofar as the remitting bank is concerned the contract is executory until the credit is established. The drawer bank has already been paid the value of the telegraphic order. It appears in the books of the bank that the amounts represented by the orders appear in the names of respective payees. If the latter choose to demand payment, the bank had the obligation to pay them.

Sec. 128. Bill addressed to more than one drawee. - A bill may be addressed to two or more drawees jointly, whether they are partners or not; but not to two or more drawees in the alternative or in succession.

BILL ADDRESSED TO MORE THAN ONE DRAWEE: VALID Pay to X or order P1000.

Sgd. A To: Y and Z

BILL ADDRESSED TO MORE THAN ONE DRAWEE: INVALID Pay to X or order P1000. Sgd. A To: Y or Z Pay to X or order P1000. Sgd. A To: Y or in default of Y, Z

Sec. 129. Inland and foreign bills of exchange. - An inland bill of exchange is a bill which is, or on its face purports to be, both drawn and payable within the Philippines. Any other bill is a foreign bill. Unless the contrary appears on the face of the bill, the holder may treat it as an inland bill.

INLAND BILL

 Where the instrument is drawn and made payable in the Philippines Pay to X or order P1000.

Sgd. A To: Y, Manila, Philippines

FOREIGN BILL

1. Where the bill is not drawn and not payable in the Philippines 2. Where the bill is drawn in but not made payable in the Philippines 3. Where the bill is not drawn but made payable in the Philippines Sec. 130. When bill may be treated as promissory note. - Where in a bill the drawer and drawee are the same person or where the drawee is a fictitious person or a person not having capacity to contract, the holder may treat the instrument at his option either as a bill of exchange or as a promissory note.

WHEN BILL MAY BE TREATED AS PROMISSORY NOTE 1. Where the drawer and drawee are the same person 2. Where the drawee is a fictitious person

3. Where the drawee is a person not having capacity to contract  The holder may treat the instrument at his option either as a bill of

exchange or a promissory note

Sec. 131. Referee in case of need. - The drawer of a bill and any indorser may insert thereon the name of a person to whom the holder may resort in case of need; that is to say, in case the bill is dishonored by non-acceptance or non-payment. Such person is called a referee in case of need. It is in the option of the holder to resort to the referee in case of need or not as he may see fit.

NOTES: WEEK #13 NOTES: WEEK #13 SEPTEMBER 17 TO 21, 2007 SEPTEMBER 17 TO 21, 2007 X. ACCEPTANCE

Sec. 132. Acceptance; how made, by and so forth. - The acceptance of a bill is the signification by the drawee of his assent to the order of the drawer. The acceptance must be in writing and signed by the drawee. It must not express that the drawee will perform his promise by any other means than the payment of money.

ACCEPTANCE, DEFINED.

 The signification of the drawee of his assent to the order of the drawer  Act by which a person on whome the bill of exchange is drawn assents

to the request of the drawer to pay it

 It may be actual, constructive, general or qualified REQUISITES OF ACCEPTANCE

1. Must be in writing 2. Signed by the drawee

3. It must not express that the drawee will perform his promise by any other means than payment of money

4. It must be communicated or delivered to the holder ACCEPTANCE MUST BE IN WRITING

 The acceptance cannot be made orally

 Sound public policy requires substantial and tangible evidence of contract, and more reliable in its nature than the statement or recollection of witnesses

 An oral acceptance is not binding on the drawee  Acceptance by phone is not acceptance

ACCEPTANCE, HOW MADE

 Usually done by writing across the face of the bill the word “accepted” followed by the signature of the drawee

 But any words written by the drawee not negativing directly the order of the drawer, would constitute sufficient acceptance, such as “holder”, “presented” or “seen”, or “honored” or “I will pay the bill” or the signature of the drawee, without more

 Acceptance by telegram has been held to be sufficient WHEN ACCEPTANCE NOT REQUIRED

 In general, acceptance in the sense in which the term is used in NIL isn’t required for checks, for the same are payable on demand

THE DRAWEE MUST SIGN

 Without the signature of the drawee, he would not be bound pursuant to the principle enumerated in Section 18

PAYMENT IN MONEY

 Acceptance must be expressed to be payable in money only NECESSITY OF DELIVERY

 The acceptance is incomplete until delivery or notification

 And the acceptor or drawee who hasn’t communicated his acceptance or transmitted the accepted bill to the holder, may revoke an acceptance before delivery and cancel the written acceptance

EFFECT OF ACCEPTANCE

 Upon acceptance, the drawee becomes liable on the bill

 The bill becomes in effect a note, the acceptor standing in the place of the maker, and the drawer, in the place of the first indorser

 But should the drawee refuse to accept, the payee or other holder has no recourse against him but only against the drawer or indorsers, if any

PAYMENT NOT ACCEPTANCE

 Payment of a check doesn’t include or imply its acceptance in the sense that this word is used in Section 62 of the NIL

 Payment is the actual performance while acceptance is the promise to perform an act

CASE DIGESTS: SECTION 132

166 SUMACAD V. PROVINCE OF SAMAR