![]() ![]() The check had been a stolen check and had never been issued nor delivered by respondent to petitioner. On the civil liability arising from the checks, the Supreme Court applied the foregoing provisions of the Negotiable Instruments Law in ruling that petitioner did not acquire any right or interest over the check and cannot assert any cause of action founded on said check. As such, the said check without the details as to the date, amount and payee, was an incomplete and undelivered instrument when it went missing, and ended up in petitioner’s hands. The subject pre-signed blank check was the same one that had gone missing way back in 1995, and the check was never delivered by respondent to petitioner. The Court of Appeals found plausible respondent’s defense that the check was among the ones she has the practice of pre-signing as a matter of business practice, and then leaving the details to be filled out later. However, the check was dishonored by the drawee bank for the reason that it was drawn against insufficient funds. Petitioner alleged that respondent had issued him a check in the amount of P20 million in payment of her obligation. Court of Appeals (GR 141181, 27 April 2007), petitioner filed several counts of violation of BP 22 against respondent. In the case of Samson Ching vs Clarita Nicdao and Hon. 16).Īpplying these provisions, if a check is incomplete and undelivered, the issuer cannot be liable to anyone who relies on the check even if a valid signature appears therein. And where the instrument is no longer in the possession of a party whose signature appears thereon, a valid and intentional delivery by him is presumed until the contrary is proved (Sec. In other words, the check must be delivered to the payee by the authority of the issuer.īut where the instrument is in the hands of a holder in due course, a valid delivery thereof by all parties prior to him so as to make them liable to him is conclusively presumed. As between immediate parties and as regards a remote party other than a holder in due course, the delivery, in order to be effectual, must be made either by or under the authority of the party making, drawing, accepting or indorsing, as the case may be. This is because every contract on a negotiable instrument is incomplete and revocable until delivery of the instrument for the purpose of giving effect thereto. For instance, this applies in the case of blank checks that have been pre-signed by the owner. Under Act 2031 also known as Negotiable Instruments Law, where an incomplete instrument (or a check) has not been delivered, it will not, if completed and negotiated without authority of the check owner/issuer be a valid contract in the hands of any holder, as against any person whose signature was placed thereon before delivery (Sec. More formally speaking, a check is a bill of exchange drawn on a bank payable on demand.īut lost checks are not always a lost cause. After all, a check is one convenient way of payment, a means of accessing funds in your account issued in the name of the payee. The most prudent action is of course to reach out to one’s bank and inform them of the loss, and provide details such as account number, check number, and other helpful information.īut when a lost check is already out there and cannot be accounted for, one concern that comes to mind is possible liability under the Bouncing Checks Law or Batas Pambansa (BP) 22 that might arise if an unscrupulous person getting hold of the checks decides to improperly use the same. ![]() But when checks go missing, the next step might not be readily known to all for the implications might be more complex than missing cash or jewels. If jewels go missing, the first step is to contact the insurance provider for possible relief. We all know what to do if our wallet goes missing - we call our banks to block access to the missing debit or credit cards, and apply for new ones immediately. One of the most practical applications of prudence is the matter of safekeeping valuable items such as cash, cards, jewelry, checks and digital devices that have access to online banking. Prudence is touted the mother of all virtues for it teaches one to exercise wisdom, insight, and carefulness in one’s dealings. ![]()
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