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    The Negotiable Instruments Law Ii

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    Marcial Gerald Suarez III
    II. Consideration

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    © All Rights Reserved
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    The Negotiable Instruments Law Ii

    Uploaded by

    Marcial Gerald Suarez III
    20 views1 page
    II. Consideration

    Original Title

    THE NEGOTIABLE INSTRUMENTS LAW II

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    © © All Rights Reserved

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    II. Consideration

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    20 views1 page

    The Negotiable Instruments Law Ii

    Uploaded by

    Marcial Gerald Suarez III
    II. Consideration

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    THE NEGOTIABLE INSTRUMENTS LAW

    II. CONSIDERATION
    Sec. 24. Presumption of consideration. - Every negotiable instrument is
    deemed prima facie to have been issued for a valuable consideration; and
    every person whose signature appears thereon to have become a party
    thereto for value.

    Sec. 25. Value, what constitutes. — Value is any consideration sufficient to


    support a simple contract. An antecedent or pre-existing debt constitutes
    value; and is deemed such whether the instrument is payable on demand or
    at a future time.

    Sec. 26. What constitutes holder for value. - Where value has at any time
    been given for the instrument, the holder is deemed a holder for value in
    respect to all parties who become such prior to that time.
    Sec. 27. When lien on instrument constitutes holder for value. — Where the
    holder has a lien on the instrument arising either from contract or by
    implication of law, he is deemed a holder for value to the extent of his lien.

    Sec. 28. Effect of want of consideration. - Absence or failure of consideration


    is a matter of defense as against any person not a holder in due course; and
    partial failure of consideration is a defense pro tanto, whether the failure is
    an ascertained and liquidated amount or otherwise.

    Sec. 29. Liability of accommodation party. - An accommodation party is one


    who has signed the instrument as maker, drawer, acceptor, or indorser,
    without receiving value therefor, and for the purpose of lending his name to
    some other person. Such a person is liable on the instrument to a holder for
    value, notwithstanding such holder, at the time of taking the instrument,
    knew him to be only an accommodation party.

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