Negotiable Instrument Non Forgery Philippines
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FAQ
Ing to section 52 of the same Act, the plaintiff is the holder in due course of the instrument in question, that is, of the promissory note containing the obligation compliance with which is demanded of him by the defendant, because he took the instrument under the condition: (a) That it was complete and regular ...
-- To enumerate the categories of real defenses, they are: (1) forgery; (2) execution without authority; (3) a species of fraud, sometimes referred to as fraud in the execution or in the inception-akin to forgery; (4) some kinds of duress; (5) material alteration; (6) non-delivery of an incomplete instrument; (7) ...
Negotiable instruments serve two different functions in commercial transactions: a credit function and a payment function.
? An instrument is negotiated when it is transferred from one person to another in such manner as to constitute the transferee the holder thereof. If payable to bearer, it is negotiated by delivery; if payable to order, it is negotiated by the indorsement of the holder completed by delivery.
( ACT NO. XXVI OF 1881 ) 52. The indorser of a negotiable instrument may, by express words in the indorsement, exclude his own liability thereon, or make such liability or the right of the indorsee to receive the amount due thereon depend upon the happening of a specified event, although such event may never happen.