Commercial Law

Philippine National Bank vs Concepcion Mining Company, Inc.

Can't share this digest on Facebook? Here's why.

image_printPrint this!

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.

Read full text

image_printPrint this!

Leave a Reply