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G.R. No. L-16968 – 5 SCRA 745 – Mercantile Law – Negotiable Instruments Law – Negotiable Instruments in General – Rules of Construction
A promissory note dated March 12, 1954 was executed by Vicente Legarda, president of Concepcion Mining Company, and Jose Sarte. On the face of the promissory note partially reads:
NINETY DAYS after date, for value received, I promise to pay to the order of the Philippine National Bank
The promissory note matured and without payment from the makers. PNB sued Concepcion Mining and Sarte.
ISSUE: Whether or not the estate of Legarda should be included in the suit.
HELD: No. There is no need for pursuant to Section 17 (g) of the Negotiable Instruments Law:
SEC. 17. Construction where instrument is ambiguous. – Where the language of the instrument is ambiguous or there are omissions therein, the following rules of construction apply:
x x x x x x x x x
(g) Where an instrument containing the word “I promise to pay” is signed by two or more persons, they are deemed to be jointly and severally liable thereon.