Sec. 80
X here
What you have to pin point is
where is the indorser in the
order of negotiation (referring
to the example in the board)
Where should he be in this
case?
From B to F where should he
be?
He should be the subsequent
party next to the maker (the
payee) because the provision
says the instrument was made
or accepted for his
accommodation.
How does that work?
He has to be the reason why
the instrument why the
instrument was made, thus he
must be the payee. It may
happen that here is X wanting
to make payment for someone
else through a negotiable
instrument but no one will
believe him. The person to
whom he will make payment
doesn’t believe him. BUT he
believes V perhaps. So, V made
a promissory note in which he is
making X as the payee.
will be considered as an
accommodation indorser
because after receiving the
instrument, he is supposed to
indorse the instrument to the
person whom he will make
payment.
SO, here (referring to example)
X was accommodated by B,
the person who appeared to
be the person primarily liable.
AND that is the reason why
here F is not required to present
the instrument for payment.
However, is this true for all
parties then?
It only applies to the party who
was accommodated
(accommodated indorser).
Thus, if F wants to make the
other parties liable he needs to
present the instrument for
payment to them.
Sec. 81
Is Sec.81 a ground to excuse
the presentment for payment?
No, it does not excuse the Otherwise, they will be
presentment for payment but discharged.
only excuses the delay for such
BUT it goes also that the
presentment. Thus, where
moment the instrument is
circumstances exist beyond the
dishonored by non-payment,
control of the holder and not
there is an automatic recourse
imputable to his default,
to parties secondarily liable.
misconduct, or negligence,
(BUT there is still a requirement
delay for such presentment is
that notice of dishonor is
excused. However, where the
given).
cause of the delay ceases,
prompt presentment must be
made. Otherwise, persons
What constitutes payment in
secondarily liable will no longer
due course?
be charged.
When payment is made at or
When is an instrument
after maturity to the holder
considered dishonored by non-
thereof in good faith without
payment?
notice that his title is defective.
1) When it is duly presented for
payment and payment is
refused or cannot be obtained Who has to make payment?

2) When presentment is Ideally the person primarily

excused and the instrument is
overdue and unpaid.
What happens when an
instrument is dishonored by
non-payment?
Give notice of dishonor to
parties secondarily liable.
liable should make payment
but payment may be made by
another on behalf of the
person primarily liable so long
as he is authorized to make
payment. BUT if it is paid for the
person who is not authorized by
the person primarily liable, the
instrument will not be
discharged because the
instrument will now belong to
the person who made the
payment. SO he will be the one
to enforce payment to the
person primarily liable because
he was not authorized.