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Crisologo-Jose v. Court of Appeals [G.R. No. 80599. September 15, 1989]

30 Jul

FACTS

Petitioner avers that the accommodation party in this case is Mover Enterprises, Inc. and not private respondent who merely signed the check in question in a representative capacity, that is, as vice-president of said corporation, hence he is not liable thereon under the Negotiable Instruments Law.

 

ISSUE

Whether or not petitioner is not liable on the ground that he is simply acting as an agent of a corporation.

 

RULING

NO. An accommodation party is liable on the instrument to a holder for value, although such holder at the time of taking the instrument knew him to be only an accommodation party, does not include nor apply to corporations which are accommodation parties.  This is because the issue or indorsement of negotiable paper by a corporation without consideration and for the accommodation of another is ultra vires.

 

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