Article 14p. 14

COMMERCIAL LAWS NEGOTIABLE INSTRUMENTS, CORPORATION, INSURANCE, TRANSPORTATION, BANKING

whether they are partners or not; but not to two or more

drawees in the alternative or in succession.

SECTION 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

Philippine Islands. 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.

SECTION 130. When Bill May Be Treated as Promissory

Note . — Where in a bill 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 a promissory note.

SECTION 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

the 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.

CHAPTER X Acceptance

SECTION 132. Acceptance ; How Made , 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.

SECTION 133. Holder Entitled to Acceptance on Face of

Bill . — The holder of a bill presenting the same for

acceptance may require that the acceptance be written

on the bill, and, if such request is refused, may treat the

bill as dishonored.

SECTION 134. Acceptance by Separate Instrument . —

Where an acceptance is written on a paper other than

the bill itself, it does not bind the acceptor except in favor

of a person to whom it is shown and who, on the faith

thereof, receives the bill for value.

SECTION 135. Promise to Accept ; When Equivalent to

Acceptance . — An unconditional promise in writing to

accept a bill before it is drawn is deemed an actual

acceptance in favor of every person who, upon the faith

thereof, receives the bill for value.

SECTION 136. Time Allowed Drawee to Accept . — The

drawee is allowed twenty-four hours after presentment in

which to decide whether or not he will accept the bill; but

the

acceptance,

if

given,

dates

as

of

the

day

of

presentation.

SECTION

137. Liability

of

Drawee

Retaining

or

Destroying Bill . — Where a drawee to whom a bill is

delivered for acceptance destroys the same, or refuses

within twenty-four hours after such delivery, or within

such other period as the holder may allow, to return the

bill accepted or non-accepted to the holder, he will be

deemed to have accepted the same.

SECTION 138. Acceptance of Incomplete Bill . — A bill may

be accepted before it has been signed by the drawer, or

while otherwise incomplete, or when it is overdue, or after

it has been dishonored by a previous refusal to accept, or

by non-payment. But when a bill payable after sight is

dishonored

by

non-acceptance

and

the

drawee

subsequently accepts it, the holder, in the absence of any

different agreement, is entitled to have the bill accepted

as of the date of the first presentment.

SECTION 139. Kinds of Acceptance . — An acceptance is

either general or qualified. A general acceptance assents

without

qualification

to the order of the drawer. A

qualified acceptance in express terms varies the effect of

the bill as drawn.

SECTION 140. What Constitutes a General Acceptance .

— An acceptance to pay at a particular place is a general

acceptance, unless it expressly states that the bill is to be

paid there only and not elsewhere.

SECTION 141. Qualified Acceptance . — An acceptance is

qualified which is —

(a)Conditional; that is to say, which makes payment by

the acceptor dependent on the fulfillment of a condition

therein stated;

(b)Partial; that is to say, an acceptance to pay part only of

the amount for which the bill is drawn;

(c)Local; that is to say, an acceptance to pay only at a

particular place;

(d)Qualified as to time;

(e)The acceptance of some one or more of the drawees,

but not of all.

SECTION

142. Rights

of

Parties

as

to

Qualified

Acceptance . — The holder may refuse to take a qualified

acceptance, and if he does not obtain an unqualified

acceptance, he may treat the bill as dishonored by

non-acceptance. Where a qualified acceptance is taken,

the drawer and indorsers are discharged from liability on

the bill, unless they have expressly or impliedly authorized

the

holder

to

take

a

qualified

acceptance,

or

subsequently assent thereto. When the drawer or an

indorser receives notice of a qualified acceptance, he

must, within a reasonable time, express his dissent to the

holder, or he will be deemed to have assented thereto.

CHAPTER XI Presentment for Acceptance

SECTION 143. When Presentment for Acceptance Must

Be Made . — Presentment for acceptance must be made

—

(a)Where the bill is payable after sight, or in any other

case, where presentment for acceptance is necessary in

order to fix the maturity of the instrument; or

(b)Where the bill expressly stipulates that it shall be

presented for acceptance; or

(c)Where the bill is drawn payable elsewhere than at the

residence or place of business of the drawee.

In no other case is presentment for acceptance necessary

in order to render any party to the bill liable.

SECTION 144. When Failure to Present Releases Drawer

and Indorser . — Except as herein otherwise provided, the

holder of a bill which is required by the next preceding

section to be presented for acceptance must either

present

it

for

acceptance

or

negotiate

it

within

a

reasonable time. If he fail to do so, the drawer and all

indorsers are discharged.

SECTION 145. Presentment ; How Made . — Presentment

for acceptance must be made by or on behalf of the

holder at a reasonable hour, on a business day and before

the

bill

is overdue, to the drawee or some person

authorized to accept or refuse acceptance on his behalf;

and

(a)Where a bill is addressed to two or more drawees who

are not partners, presentment must be made to them all,

unless one has authority to accept or refuse acceptance

for all, in which case presentment may be made to him

only;

(b)Where the drawee is dead, presentment may be made

to his personal representative;

(c)Where the drawee has been adjudged a bankrupt or

an insolvent, or has made an assignment for the benefit

of creditors, presentment may be made to him or to his

trustee or assignee.

SECTION

146. On

What

Days

Presentment May Be

Made . — A bill may be presented for acceptance on any

day on which negotiable instruments may be presented

for payment under the provisions of sections seventy-two

and

eighty-five

of

this

Act.

When

Saturday

is

not

© Compiled by RGL

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