available to prior parties among themselves,

and may enforce payment of the

instrument for the full amount thereof

against all parties liable thereon.”

ENFORCEMENT OF LIABILITY:

A. Parties primarily liable and parties secondarily

liable

Primarily Liable Secondarily Liable

Maker Drawer

Acceptor General Indorsers

Qualified Indorsers

B. General steps in enforcing liability

1. Presentment
2. Dishonor

• Promissory Note

1. Presentment for payment must be

made within the required period to the

maker (Sec. 70)

2. Notice of Dishonor (Sec. 89)

Example:

M→A→B→C→D→E

Q: In a case where the cause of action is for

payment, is presentment and dishonor

essential?

A: YES.
Q: If the holder is running after the

indorsement for breach of warranty, is

presentment and dishonour essential?

A: NO.

• Bill of Exchange

1. Presentment for acceptance or

negotiation within a reasonable time

after it was acquired (Sec. 143)

2. If dishonored by non-acceptance:

2.1.Notice of dishonor should be given

to the indorsers and drawer

2.2.If the bill is a foreign bill, there must

be a protest for dishonor by nonacceptance

3. If the bill is accepted:

3.1.Presentment for payment to the

acceptor should be made

3.2.If the bill is dishonored upon

presentment for payment:

3.2.1. Notice of dishonor upon

presentment for payment

3.2.2. If the bill is a foreign bill,

protest for dishonor by

non-acceptance must be

made

C. Presentment for payment

1. Concept of presentment

Presentment is the production of a bill of

exchange to the drawee for his acceptance

or to the drawee or acceptor for payment

or the production of a promissory note to

the party liable for the payment of the

same.

2. Requisites for sufficiency

Sec. 72 of the Negotiable Instrument Law

provides that: “Presentment for payment,

to be sufficient, must be made: (a) By the

holder, or by some person authorized to

receive payment on his behalf; (b) At a

reasonable hour on a business day; (c) At a

proper place as herein defined; (d) To the

person primarily liable on the instrument,

available to prior parties among themselves,

and may enforce payment of the

instrument for the full amount thereof

against all parties liable thereon.”

ENFORCEMENT OF LIABILITY:

A. Parties primarily liable and parties secondarily

liable

Primarily Liable Secondarily Liable

Maker Drawer

Acceptor General Indorsers

Qualified Indorsers

B. General steps in enforcing liability

1. Presentment

2. Dishonor

• Promissory Note

1. Presentment for payment must be

made within the required period to the

maker (Sec. 70)

2. Notice of Dishonor (Sec. 89)

Example:

M→A→B→C→D→E

Q: In a case where the cause of action is for

payment, is presentment and dishonor

essential?

A: YES.

Q: If the holder is running after the

indorsement for breach of warranty, is

presentment and dishonour essential?

A: NO.

• Bill of Exchange

1. Presentment for acceptance or

negotiation within a reasonable time

after it was acquired (Sec. 143)

2. If dishonored by non-acceptance:

2.1.Notice of dishonor should be given

to the indorsers and drawer

2.2.If the bill is a foreign bill, there must

be a protest for dishonor by nonacceptance

3. If the bill is accepted:

3.1.Presentment for payment to the

acceptor should be made

3.2.If the bill is dishonored upon

presentment for payment:

3.2.1. Notice of dishonor upon

presentment for payment

3.2.2. If the bill is a foreign bill,

protest for dishonor by

non-acceptance must be

made

C. Presentment for payment

1. Concept of presentment

Presentment is the production of a bill of

exchange to the drawee for his acceptance

or to the drawee or acceptor for payment

or the production of a promissory note to

the party liable for the payment of the

same.

2. Requisites for sufficiency

Sec. 72 of the Negotiable Instrument Law

provides that: “Presentment for payment,

to be sufficient, must be made: (a) By the

holder, or by some person authorized to

receive payment on his behalf; (b) At a

reasonable hour on a business day; (c) At a

proper place as herein defined; (d) To the

person primaravailable to prior parties among themselves,

and may enforce payment of the

instrument for the full amount thereof

against all parties liable thereon.”

ENFORCEMENT OF LIABILITY:

A. Parties primarily liable and parties secondarily

liable
Primarily Liable Secondarily Liable

Maker Drawer

Acceptor General Indorsers

Qualified Indorsers

B. General steps in enforcing liability

1. Presentment

2. Dishonor

• Promissory Note

1. Presentment for payment must be

made within the required period to the

maker (Sec. 70)

2. Notice of Dishonor (Sec. 89)

Example:
M→A→B→C→D→E

Q: In a case where the cause of action is for

payment, is presentment and dishonor

essential?

A: YES.

Q: If the holder is running after the

indorsement for breach of warranty, is

presentment and dishonour essential?

A: NO.

• Bill of Exchange

1. Presentment for acceptance or

negotiation within a reasonable time

after it was acquired (Sec. 143)

2. If dishonored by non-acceptance:

2.1.Notice of dishonor should be given

to the indorsers and drawer

2.2.If the bill is a foreign bill, there must

be a protest for dishonor by nonacceptance

3. If the bill is accepted:

3.1.Presentment for payment to the

acceptor should be made

3.2.If the bill is dishonored upon

presentment for payment:

3.2.1. Notice of dishonor upon

presentment for payment

3.2.2. If the bill is a foreign bill,

protest for dishonor by

non-acceptance must be

made

C. Presentment for payment

1. Concept of presentment

Presentment is the production of a bill of

exchange to the drawee for his acceptance

or to the drawee or acceptor for payment

or the production of a promissory note to

the party liable for the payment of the

same.
2. Requisites for sufficiency

Sec. 72 of the Negotiable Instrument Law

provides that: “Presentment for payment,

to be sufficient, must be made: (a) By the

holder, or by some person authorized to

receive payment on his behalf; (b) At a

reasonable hour on a business day; (c) At a

proper place as herein defined; (d) To the

person primarily liable on the instrument,

or if he is absenavailable to prior parties among themselves,

and may enforce payment of the

instrument for the full amount thereof

against all parties liable thereon.”

ENFORCEMENT OF LIABILITY:

A. Parties primarily liable and parties secondarily

liable

Primarily Liable Secondarily Liable

Maker Drawer

Acceptor General Indorsers

Qualified Indorsers

B. General steps in enforcing liability

1. Presentment

2. Dishonor

• Promissory Note

1. Presentment for payment must be

made within the required period to the

maker (Sec. 70)

2. Notice of Dishonor (Sec. 89)

Example:

M→A→B→C→D→E

Q: In a case where the cause of action is for

payment, is presentment and dishonor

essential?

A: YES.

Q: If the holder is running after the

indorsement for breach of warranty, is

presentment and dishonour essential?

A: NO.
• Bill of Exchange

1. Presentment for acceptance or

negotiation within a reasonable time

after it was acquired (Sec. 143)

2. If dishonored by non-acceptance:

2.1.Notice of dishonor should be given

to the indorsers and drawer

2.2.If the bill is a foreign bill, there must

be a protest for dishonor by nonacceptance

3. If the bill is accepted:

3.1.Presentment for payment to the

acceptor should be made

3.2.If the bill is dishonored upon

presentment for payment:

3.2.1. Notice of dishonor upon

presentment for payment

3.2.2. If the bill is a foreign bill,

protest for dishonor by

non-acceptance must be

made

C. Presentment for payment

1. Concept of presentment

Presentment is the production of a bill of

exchange to the drawee for his acceptance

or to the drawee or acceptor for payment

or the production of a promissory note to

the party liable for the payment of the

same.

2. Requisites for sufficiency

Sec. 72 of the Negotiable Instrument Law

provides that: “Presentment for payment,

to be sufficient, must be made: (a) By the

holder, or by some person authorized to

receive payment on his behalf; (b) At a

reasonable hour on a business day; (c) At a

proper place as herein defined; (d) To the

person primarily liable on the instrument,

or if he is absent or inaccessible, to any

person found at the place where the

presentment is made.”

a. Dat or inaccessible, to any

person found at the place where the

presentment is made.”

a. Daily liable on the instrument,

or if he is absent or inaccessible, to any

person found at the place where the

presentment is made.”

a. Da

or if he is absent or inaccessible, to any

person found at the place where the

presentment is made.”

a. Da