Philippine Bank of Commerce v. Aruego [G.R. Nos. L-25836-37.January 31, 1981]

30 Jul


Defendant-appellant Aruego signed various bills of exchange which was negotiated and later dishonored. Appellee bank aggrieved, sued Aruego.



Whether or not defendant may effectively put up the defense that he was just an agent of the company issuing the bills of exchange.



Section 20 of the Negotiable Instruments Law provides that “Where the instrument contains or a person adds to his signature words indicating that he signs for or on behalf of a principal or in a representative capacity, he is not liable on the instrument if he was duly authorized; but the mere addition of words describing him as an agent or as filing a representative character, without disclosing his principal, does not exempt him from personal liability.”


Tags: , ,

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: