EN BANC
[G.R. No. 4163. August 4, 1909. ]
ED BANCO ESPAÑOL-FILIPINO, Plaintiff-Appellee, v. FULGENCIO TAN-TONGCO AND GERONIMO JOSE, Defendants-Appellants.
Jose Varela Calderon, for Appellants.
Del-Pan, Ortigas & Fisher, for Appellee.
SYLLABUS
1. MERCANTILE PROMISSORY NOTES. — Neither the literal reading of article 532 of the Code of Commerce, nor the principles governing the mercantile law now in force, require that a promissory note, payable to order, be made between merchants, in order that said note may be a mercantile one, as is required by said article 532 in connection with drafts.
2. ID. — The law does not require that promissory notes, in order that they may be indorsed and that the indorsement may be valid, the same as that of a bill of exchange, must be made between merchants, especially if the said notes arise from a mercantile loan, in which case it is only required that one of the contractors be a merchant, according to article 311 (code of Commerce).
3. ID. — A promissory note arising from a mercantile loan, according to its literal reading and the principles of the Code of Commerce, where the same is drawn to order, is perpetually negotiable, transferable, and strictly mercantile, no other expression being necessary for the purpose of showing that it arises from a commercial transaction within the meaning of article 532.
2. ID. — The law does not require that promissory notes, in order that they may be indorsed and that the indorsement may be valid, the same as that of a bill of exchange, must be made between merchants, especially if the said notes arise from a mercantile loan, in which case it is only required that one of the contractors be a merchant, according to article 311 (code of Commerce).
3. ID. — A promissory note arising from a mercantile loan, according to its literal reading and the principles of the Code of Commerce, where the same is drawn to order, is perpetually negotiable, transferable, and strictly mercantile, no other expression being necessary for the purpose of showing that it arises from a commercial transaction within the meaning of article 532.
D E C I S I O N
ARELLANO, C.J. :
The matter involved in this controversy is a promissory note drawn as follows:jgc:chanrobles.com.ph
"Three months from this date I hereby promise to pay, in Manila, to the order of D. Geronimo Jose, the sum of three thousand six hundred pesos, Mexican currency, value received in cash for commercial transactions.
"Manila, 21st of July, 1902.
(Signed)
"Three months from this date I hereby promise to pay, in Manila, to the order of D. Geronimo Jose, the sum of three thousand six hundred pesos, Mexican currency, value received in cash for commercial transactions.
"Manila, 21st of July, 1902.
(Signed)
