RSS

Philippine National Bank v. Court of Appeals [G.R. No. 107508. April 25, 1996]

30 Jul

FACTS

Petitioner returned the check to PBCom and debited PBCom’s account for the amount covered by the check, the reason being that there was a “material alteration” of the check number.

 

ISSUE

Whether or not there is “material alteration” on the check.

 

RULING

NO. An alteration is said to be material if it alters the effect of the instrument.  It means an unauthorized change in an instrument that purports to modify in any respect the obligation of a party or an unauthorized addition of words or numbers or other change to an incomplete instrument relating to the obligation of a party. Here, the alteration of check number does not affect its negotiability contemplated in Section 1 of the Negotiable Instruments Law.

 

 

Tags: , ,

Leave a Reply

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

WordPress.com Logo

You are commenting using your WordPress.com 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 )

Google+ photo

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

Connecting to %s

 
%d bloggers like this: