Chapter 11 Nil

Chapter XI PRESENTMENT FOR ACCEPTANCE
Sec. 143. When presentment for acceptance must be made.

— Presentment for acceptance must be made —
(a) Where the bill is payable after sight, or in any other case,
where presentment for acceptance is necessary in order to fix the
maturity of the instrument; or
(b) Where the biil expressly stipulates that it shall be
presented for acceptance; or
(c) Where the bill is drawn payable elsewhere than at the
residence or place of business of the drawee.
In no other case is presentment for acceptance necessary in
order to render any party to the bill liable.
Meaning of presentment for acceptance.
Presentment for acceptance is the production or exhibition of a bill of
exchange to die drawee for his acceptance or payment.
The words "presentment for acceptance" include presentment for
payment also. While there is a conflict of authority, the cases maintaining
this view represent die overwhelming weight of authority. (Beutel's
Brarman, op. dt., p. 1250.)
When presentment for acceptance necessary.

Section 143 enumerates the cases when presentment for acceptance
is necessary.
Under subsection (a), it is essential to fix the maturity date of the
instrument; under subsection (b), to comply with the express stipulation of
the parties in the bill itself; and under subsection (c), to inform the drawee
of the existence of the bill so that he can
354
Sec. 144 BILLS OF EXCHANGE 355
XI. Presentment for
Acceptance
make arrangements for its payment on the date of maturity at the place
designated therein.
EXAMPLES:
(1) Bill payable after sight. — A bill payable 30 days after
sight. Its date of maturity shall be computed 30 days from the date
of its presentment. The same is true with a bill payable so many
days after demand.
(2) Bill with express stipulation. — This is self-explanatory.
(3) Bill payable elsewhere. — A bill payable to P at P.N.B,
Manila, drawn against W, residing and having his place of business
in Quezon City.
When presentment for acceptance not

necessary.
Bills payable on demand (e.g., checks) or on sight and time bills or bills
payable at a day certain, or at a fixed time after its date, or upon other
certain event which does not fall under Section 143(b) and (c), need not be
presented for acceptance but only for payment in order to charge the
drawer or indorsers. (ibid., 2nd par.; see Phil. National Bank vs. Seato, 91
Phil. 756 [1952]; Prudential Bank vs. Intermediate Appellate Court, 216
SCRA 257 [1992].)
However, it is to the holder's interest that the bill should be accepted
as only by accepting it does the drawee become bound to pay it and until
such acceptance, the holder has for his debtor only the drawer, and the
step is one which a prudent man of business ordinarily careful of his
interest, would take for his protection; and if the drawee refuses to accept,
the bill will be deemed dishonored by non-acceptance and the holder then
must proceed in the same manner as if the bill required acceptance. (Nat.
Park Bank v. Saitta, 111 N.Y. Supp. 927; see Sec. 150.)
Sec. 144. When failure to present releases drawer and
indorser. — Except as herein otherwise provided, the holder of a
bill which is required by the next preceding section to be
presented for acceptance must either present it for acceptance or
negotiate it within a reasonable time. If he fails to do so, the
drawer and all indorsers are discharged.
356 THE NEGOTIABLE INSTRUMENTS LAW Sees'. 139-141
Necessity for presentment for acceptance or negotiation within a

reasonable time.
In the three cases provided in Section 143, it is necessary: (1) to
present the bill for acceptance; or (2) to negotiate it (even without
presentment for acceptance) within a reasonable time (see Sec. 193.) to
charge the drawer and all indorsers.
The reason is that the drawer and indorsers have a right in having the
bills accepted immediately in order to shorten the time of payment and
thus put a limit to the period of their liability and likewise to enable them
to protect themselves by other means before it is too late, if the bill is not
accepted and paid within the time originally contemplated by them.
(Mimrocks v. Woody, 2 S.E. 249.) And this is true even if it is shown that
the drawee is perfectly solvent and no damage is caused to the drawer and
indorsers by the delay. (Allan v. Eldred, 50 Ms. 132; Thornburg v. Emmens,
23 W. Vao 333; as to check see Sec. 186.)
Sec. 145. Presentment; how made. — Presentment for

acceptance must be made by or on behalf of the holder at a
reasonable hour, on a business day and before the bill is overdue,
to the drawee or some person authorized to accept or refuse
acceptance on his behalf; and
(a) Where a bill is addressed to two or more drawees who
are not partners, presentment must be made to them all, unless
one has authority to accept or refuse acceptance for all, in which
case presentment may be made to him only;
(b) Where the drawee is dead, presentment may be made
to his personal representative;
(c) Where the drawee has been adjudged a bankrupt or an
insolvent or has made an assignment for the benefit of creditors,
presentment may be made to him or to his trustee or assignee.
How presentment for acceptance made.

In order that presentment for acceptance may be.proper it is
necessary that it: (1) must be made by or on behalf of the holder;

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Chapter XI PRESENTMENT FOR ACCEPTANCE

Sec. 143. When presentment for acceptance must be made.

When presentment for acceptance necessary.

When presentment for acceptance not

Necessity for presentment for acceptance or negotiation within a

Sec. 145. Presentment; how made. — Presentment for

How presentment for acceptance made.

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