FAQ on Corporate Law When is an airline liable for damages despite force majeure?

Assuming arguendo that airline passengers have no vested right to amenities in case a flight is cancelled due to force majeure, what makes an airline liable for damages in the instant case is its blatant refusal to accord the so-called amenities equally to all its stranded passengers who were similarly situated. What is the essence of a cashiers check? It is a well-known and accepted practice in the business sector that a cashiers check is deemed as cash. Moreover, since the said check had been certified by the drawee bank, by the certification, the funds represented by the check are transferred from the credit of the maker to that of the payee or holder, and for all intents and purposes, the latter becomes the depositor of the drawee bank, with rights and duties of one in such situation. Where a check is certified by the bank on which it is drawn, the certification is equivalent to acceptance. Said certification implies that the check is drawn upon sufficient funds in the hands of the drawee, that they have been set apart for its satisfaction, and that they shall be so applied whenever the check is presented for payment. It is an understanding that the check is good then, and shall continue good, and this agreement is as binding on the bank as its notes in circulation, a certificate of deposit payable to the order of the depositor, or any other obligation it can assume. When is an airline liable for damages despite force majeure? Assuming arguendo that airline passengers have no vested right to amenities in case a flight is cancelled due to force majeure, what makes an airline liable for damages in the instant case is its blatant refusal to accord the so-called amenities equally to all its stranded passengers who were similarly situated. Does the delivery of a check extinguish an obligation? Since a negotiable instrument is only a substitute for money and not money, the delivery of such an instrument does not, by itself, operate as payment. A check, whether a managers check or ordinary check, is not legal tender, and an offer of a check in payment of a debt is not a valid tender of payment and may be refused receipt by the obligee or creditor. Mere delivery of checks does not discharge the obligation under a judgment. The obligation is not extinguished and remains suspended until the payment by commercial document is actually realized.

Source: http://tanjutcolaw.com/practice-areas/corporate-business-law/faqs-oncorporate-law-philippines-2-2/