Form and you will Translation
The writing may be for the ink, printing, otherwise pencil. It could be up on parchment, material, fabric, or any other alternative out of paper. It could be signed on the simple initials if not number, such 1, 2, 8. However, the spot where the name’s maybe not signed, the manager need certainly to confirm you to definitely what’s authored is intended since a trademark of the individual tried are recharged. Title ped, engraved, snap or lithographed. However in for example case, it ought to be demonstrated to have been used and you can used by the brand new people as the his signature.
If a bill, it must contain an order to pay. It is an instrument demanding a right, not mere asking of a favor. “I hereby authorize you to pay P 1,000, on our account, to the order of Pedro Cruz.” It is not negotiable because it is a mere authorization to pay. It gives discretion to pay or not to pay. In promissory note, instead of the promise, the following words may be used: “agree,” “will pay,” “shall pay,” and the like. A mere admission that the debt is due is not sufficient.
Aval was a device that’s given since a safety otherwise collateral for another software. For the AVAL, the security look at applies only when additional appliance are dishonored of the non-acceptance/non-payment
The sum payable are a sum certain, though it will be paid off (a) Having appeal, (b) By stated repayment, (c) By said payments, that have a supply one up on standard from inside the payment of every repayment otherwise of great interest the whole should become owed, (d) Having replace, if or not in the a predetermined speed otherwise in the current rate, otherwise (e) That have costs regarding collection or a keen attorney’s commission, in case percentage shall never be generated at maturity. (Sec. 2)
Where in actuality the promise otherwise purchase to spend was designed to count into the an excellent contingent event, it’s conditional and you can helps make the means low-negotiable. An enthusiastic unqualified buy otherwise promise to pay is unconditional in the event paired with:
a. An indication of a particular fund out of which reimbursement is to be made, or a particular account to be debited with the amount. An example is: “Pay to B or order P1,000 and reimburse yourself out of my money in your hands.” The instrument is negotiable because the order to pay is not rendered conditional. The particular fund indicated is not the direct source of payment, but only a source of reimbursement. The fact that the amount paid is to be debited from accounts payable is only for the purpose of accounting and does not make the order conditional.
But an order or promise to pay out of a particular fund is not unconditional. (Sec. 3) In the following instrument, the particular fund indicated is not for reimbursement, but the direct source of payment: “Pay to B or order P 1,000 out of my part of the estate.” This is, therefore, non-negotiable as payment is conditional.
An instrument which contains an order or promise to do any act in addition to the payment of money is not negotiable. But the negotiable character of an instrument otherwise negotiable is not affected by a provision which gives the holder an election to require something to be done in lieu of payment of money. (See Sec. 5) A statement which allows the creditor the option to require something in lieu of money, however, does not affect negotiability. “Pay to B P 10,000 or deliver to him 1,000 bags of cement.” (Signed) A (and addressed to:) C”. The order is conditional, because the option is given to the drawee. Hence, the payee or holder is not certain what will be paid or delivered to him. It would be different if the option is given to the payee or holder.