G.R. No. 76788 January 22,1990
Lessons Applicable: Introduction to Negotiable Instruments (Negotiable Instruments Law)
FACTS:
- February 6, 1980: Juanita Salas bought a motor vehicle from the Violago Motor Sales Corp. (VMS) for P58,138.20 as evidence by a promissory note
- This note was subsequently endorsed to Filinvest Finance &Leasing Corp. (FFLC)
- May 21, 1980: Salas defaulted in her installments allegedly due to discrepancies in the engine and chassis number of the vehicle delivered and discovery of certificate of reg. and deed of mortgage
- VMS initiated for a sum of money at the RTC
- RTC: favored VMS
- CA: Affirmed
ISSUE: W/N the promissory note is a negotiable which will bar completely all defenses of Salas against VMS
HELD: YES. Affirmed
- Requisites under the law (Sec. 1 of Negotiable Instruments Law)
- it is in writing and signed by the maker (Salas)
- it contains an unconditional promise to pay the amount P58,138.20
- it is payable at a fixed or determinable future time which is P1,614.95 monthly for 36 months due and payable on the 21st day of each month starting March 21, 1980 thru and inclusive of Feb 21 1983
- It is payable to VMS or order and as such
- drawee is named or indicated with certainty
- Filinvest = holder in due course