Commercial Law

Philippine National Bank vs Concepcion Mining Company, Inc.

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G.R. No. L-16968 Р5 SCRA 745 РMercantile Law РNegotiable Instruments Law РNegotiable Instruments in General РRules 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. РWhere 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.

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