NEGOTIABLE INSTRUMENTS NOTES

BASED ON AGBAYANIS BOOK AND ATTY. MERCADOS LECTURES

Page 107 of 190


BY: MA. ANGELA LEONOR C. AGUINALDO
ATENEO LAW 2D BATCH 2010
Notice to agent must be distinguished from notice attempted to be
given to party himself where he is absent at his place of business or
residence. In such a case, the notice may be left with anyone found in
charge therein

Sec. 98. Notice where party is dead. - When any party is dead and
his death is known to the party giving notice, the notice must be
given to a personal representative, if there be one, and if with
reasonable diligence, he can be found. If there be no personal
representative, notice may be sent to the last residence or last
place of business of the deceased.

REQUISITES FOR NOTICE TO REPRESENTATIVE
1. Death is known to the party giving notice
2. There is a personal representative
3. If with reasonable diligence he could be found

WHEN NOTICE MAY BE SENT TO THE LAST RESIDENCE OR PLACE OF
BUSINESS
1. If his death is not known to the party giving notice
2. Or although his death is known to the party giving notice but
there is no personal representative
3. If there be one but he cannot be found with reasonable diligence

Sec. 99. Notice to partners. - Where the parties to be notified are
partners, notice to any one partner is notice to the firm, even
though there has been a dissolution.

Sec. 100. Notice to persons jointly liable. - Notice to joint persons
who are not partners must be given to each of them unless one of
them has authority to receive such notice for the others.

PROVISION WOULD APPLY ONLY TO JOINT DRAWERS

Sec. 101. Notice to bankrupt. - Where a party has been adjudged a
bankrupt or an insolvent, or has made an assignment for the
benefit of creditors, notice may be given either to the party himself
or to his trustee or assignee.

APPLICATION OF SECTION
1. Where the party secondarily liable has been declared a bankrupt
or an insolvent
2. Where he has made an assignment of his properties for the
benefits of creditors
In such cases, notice be given to the party himself or his trustee or
assignee

Sec. 102. Time within which notice must be given. - Notice may be
given as soon as the instrument is dishonored and, unless delay is
excused as hereinafter provided, must be given within the time
fixed by this Act.

MAY NOTICE OF DISHONOR BE GIVEN BEFORE THE DATE OF MATURITY
No, such notice would be insufficient because an instrument cannot be
said to be dishonored for non-payment unless presented and
presentment must be made on the date of maturity unless of course,
presentment is excused
But even in such cases, the instrument cannot be said to be
dishonored by non-payment unless it is overdue and unpaid
Notice of dishonor can be given only after the instrument has been
actually dishonored, and notice given before the paper due is
premature and insufficient, regardless of the indorsers knowledge that
the maker was in default

MAY NOTICE OF DISHONOR BE GIVEN ON THE DATE OF MATURITY?
Yes, provided that the instrument has been presented for payment and
is has been dishonored
But if the instrument is payable at a bank, it is not dishonored if the
maker deposits the amount of the instrument before the close of
banking hours. Hence, notice of dishonor must be given after the
close of banking hours on the date of maturity

PURPOSE OF PROMPT NOTICE
To give the persons secondarily liable every opportunity to secure
themselves such as to enable the party to be charged to preserve and
protect his rights against prior parties

CASE DIGESTS: SECTION 102

142 FAR EAST REALTY INVESTMENT V. CA
166 SCRA 256

FACTS:
Private respondents approached petitioner and asked the latter to extend
to them an accommodation loan. They proposed to pay with interest.
They even gave a check, signed by Tat, drawn against Chinabank, and
signed at the back by the private respondents. They said that they will
change the check with cash after one month and if not, the check could be