Delgado Clinic may not be considered a holder in due course of the check from Rolando given to Roger, and therefore is not entitled to recover payment. While Delgado Clinic was unaware of the specifics of the check being delivered to Roger, there were circumstances that should have alerted them to make further inquiries, such as Rolando having no relationship with the clinic, the amount not matching Roger's obligation exactly, and it being a crossed check.
Delgado Clinic may not be considered a holder in due course of the check from Rolando given to Roger, and therefore is not entitled to recover payment. While Delgado Clinic was unaware of the specifics of the check being delivered to Roger, there were circumstances that should have alerted them to make further inquiries, such as Rolando having no relationship with the clinic, the amount not matching Roger's obligation exactly, and it being a crossed check.
Delgado Clinic may not be considered a holder in due course of the check from Rolando given to Roger, and therefore is not entitled to recover payment. While Delgado Clinic was unaware of the specifics of the check being delivered to Roger, there were circumstances that should have alerted them to make further inquiries, such as Rolando having no relationship with the clinic, the amount not matching Roger's obligation exactly, and it being a crossed check.
Delgado Clinic may not be considered a holder in due course of the check from Rolando given to Roger, and therefore is not entitled to recover payment. While Delgado Clinic was unaware of the specifics of the check being delivered to Roger, there were circumstances that should have alerted them to make further inquiries, such as Rolando having no relationship with the clinic, the amount not matching Roger's obligation exactly, and it being a crossed check.
Download as TXT, PDF, TXT or read online from Scribd
Download as txt, pdf, or txt
You are on page 1of 1
taken the instrument complete and regular on its face, he took it
before it was overdue and it was not previously dishonored; he
took it in good faith and for value and he had no notice of any infirmity in the instrument or a defect of the title of a prior party. Rolando, intending to buy a car, saw an old friend, Roger, who is an agent to sell the car belonging to Delgado Clinic. After negotiation, Rolando decided to buy said car. He drew upon request of Roger, a crossed check for P600.00, payable to Delgado Clinic as evidence of his good faith, but which was merely meant to be shown to Delgado Clinic by Roger who received said check. The check would then be returned when Roger brings the car and its registration certificate for Rolando's inspection. For failure of Roger to bring the car and its certificate of registration, and to return the check, Rolando issued a "stop payment order" to the drawee bank. In the meantime, Roger paid the check to the Delgado Clinic for the hospital bill of his wife and was given P158.25 as change. May Delgado Clinic be considered a holder in due course, hence entitled to recover? Decide with reasons. Delgado Clinic may not be considered a holder in due course, hence not entitled to recover. Although Delgado Clinic was not in fact aware of the circumstances with respect to the delivery of the check to Roger, there are circumstances that should have put him on inquiry. Thus, it should have noted that Rolando had no relation with it; that the amount of the check did not correspond exactly with the obligation of Roger to the clinic; and that the check is a crossed check, which means that the check could only be deposited but may not be converted into cash, and should have put the clinic to inquiry as to the possession of the check by Roger, and why he used it to pay his accounts (1962 and 1977 Bar). Po Press issued in favor of Jose a postdated crossed check, in pay- ment of newsprint which Jose promised to deliver. Jose sold and negotiated the check to Excel Inc. at a discount. Excel did not ask Jose the purpose of crossing the check. Since Jose failed to deliver the newsprint, Po ordered the drawee bank to stop payment on the check. Efforts of Excel to collect from Po failed. Excel wants to know from you as counsel: 1) Is Excel a holder in due course? defense? 2) Can Po Press raise absence or failure of consideration as a 1) Excel is not a holder in due course. The instrument involved is a crossed check and was supposed to be deposited only. Excel is therefore obligated to inquire regarding the circumstances involving the issuance of the check. Failure on his part, as in this case, will prevent him from becoming & faith. holder in due course; such failure or refusal
The 5 Elements of the Highly Effective Debt Collector: How to Become a Top Performing Debt Collector in Less Than 30 Days!!! the Powerful Training System for Developing Efficient, Effective & Top Performing Debt Collectors