THE TRIBE Negotiable instruments Law
Sec. 94. When agent may give notice-- Where the
instrument has been dishonored in the hands of an
agent, he may either himself give notice to the parties
liable thereon, or he may give notice to the principal. If
he gives notice to his principal, he must do so within the
same time as if he were the holder, and the principal
upon receipt of such notice has himself the same time
for giving notice as if the agent had been an
independent holder.
 When and to whom agent may give notice
In case the instrument is dishonored in the
hands of the agent, he may give notice either
to:
1. His principal
 Agent must notify him within the
same time referred to as if he were
a holder
 Principal upon receiving notice, has
also the same time for giving notice
to the parties secondarily liable as if
the instrument was dishonored on
the day that he received the notice
2. Parties secondarily liable
 Agent must give notice within the
time fixed by sec. 102, 103, 104,
and 107
 If no notice is given within the time
fixed: they are discharged for lack
of notice unless the principal
himself notifies them within the
same time
Sec. 95. When notice sufficient— A written notice need
not be signed, and an insufficient written notice may be
supplemented and validated by verbal communication.
A misdescription of the instrument does not vitiate the
notice unless the party to whom the notice is given is in
fact misled thereby.
 How may an insufficient written notice be
validated?
 it may be supplemented and
validated by verbal communication
 Effect of a misdescription of instrument
 General Rule: does not vitiate the notice
 Exception: the party to whom the notice is
given is in fact misled thereby
Sec. 96. Form of notice. – The notice may be in writing
or merely oral and may be given in any terms which
sufficiently identify the instrument and indicate that it
has been dishonored by nonacceptance or nonpayment.
It may in all cases be given by delivering it personally or
through the mails.
 What is the form of the notice of dishonor?
 May be in (1) in writing or (2) merely
oral
 What are the contents of the notice?
Whether written or oral, it must set forth:
1. the identity of the instrument;
2. the fact that it has been dishonored by
nonacceptance/ nonpayment;
3. a statement that the party giving notice
intends to look to the party addressed
for payment;
 How is the notice given?
1. By personal delivery;
2. By mail.
*note: the word “may” in the last sentence of the art
has been construed as “must”
 Defect of notice
 Lack of Signature/ Insufficiency
 does not invalidate the notice
 may be supplemented and
validated by oral communication
 Misdescription of Instrument
 Misdescription, such as, (1) amount,
(2) date, (3) name of the parties, (4)
date of maturity, does not vitiates
the notice, unless it mislead the
party to whom it is sent
 REASON: the purpose of the
notice is to appraise the party
entitled thereto of the dishonor
of the instrument, so that when
he is not misled by the
misdescription, notice is
sufficient
 Lack of Statement of Recourse to Indorser
 Notice need not state that the
sender looks to the indorser for
payment, where it may be inferred
that the indorsee looks to the
indorser, and no other inference
could reasonably be drawn from
the notice
Sec. 97. To whom notice may be given-- Notice of
dishonor may be given either to the party himself or to
his agent in that behalf.
 To whom is the notice of dishonor given?
1. To the Party himself
2. To his agent in that behalf
 Must be authorized to received
notice for the drawer or indorser
concerned and not merely an agent
for a specified purpose.
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 THE TRIBE Negotiable instruments Law

 In Sec. 91, agent need not be

authorized by the principal; in sec.
97, agent must be authorized by the
principal
 REASON: in sec. 91, giving of
notice benefits the principal; in
sec. 97, the receipt of notice
creates liability.

Sec. 98. Notice where party is dead-- When any party is

dead, and his death is known to the party giving notice,
the notice must be given to a personal representative, if
there be one, and if with reasonable diligence he can be
found. If there be no personal representative, notice
may be sent to the last residence or last place of
business of the deceased.

 Where must the notice be given when the

party sought to be charged is dead?
Must be given to his personal representative
provided that:
1. his death is known to the party, giving
notice;
2. there is a personal representative;
3. if with reasonable diligence, said
representative could be found.

 When is notice to personal representative not

required?
1. If the death is not known to the party giving
notice;
2. Although the fact of the death is known, the
decedent has no personal representative;
3. If the be one but with reasonable diligence,
he cannot be found.
 NOTE: in any of the above situations, notice
may be sent to the (1) last residence or (2)
last place of business of the deceased.

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