Title SUNDIANG - Reviewer on Commercial Law (2019).pdf ✅

)/CJ- D·C ·· ... •··· .. v··,.'·.•··e····w·•···e,• n.~·: '··I·'.' . .a:,,. .. :·· ...... ; ........ --_·; .·.····,;f' ON .CQM,M.e::;RelA,L . . . . . L~. . . w JOSE R. SUNDIANG, SR. AB, BSE, Ll.B. Professor of Law, San Beda College of Law and Arellano Law Foundation Reviewer on Commercial Law, San Beda College of Law, Arellano Law Foundation, Recoletos Review Center (Manila & Cebu), UP Law Center's Bar Review Institute, .,and Cosmopolitan Review Center Former Dean, San Beda College of Law, and Arellano Law Foundation TIMOTEO B. AQUINO Professor of Law Pre-Bar Review and MCLE Lecturer in Commercial Law and Civil Law Former Prefect of Smdent Affairs, San Beda College of Law Author, Reviewer on Civil Law, Torts and Damages, Essentials of Insurance Law, Essentials of Credit Transactions and Banking Laws, Notes and Cases on Negotiable Instruments Law and Banking Law, Philippine Corporate Law Compendium, . Notes and Cases on Banking Law and Negotiable Instruments Law, Volumes II (General Banking Law, New Central Bank Act and Allied Laws) Co-Author, Revised Corporation Code of the Philippines A Short Introduction, Fundamentals of Banking Law Essentials of Transportation and Public Utilities Law Fundamentals of Negotiable Instruments Law, Fundamentals of Obligations and Contracts, Handbook on Summary and Small Oaims Procedure art4 '8~u'.!}(;U\g<;h~tl<$ Law and The 1991 Revised Ruie t'rfslimfuary Procedure Revisited Ninth Edition 2019 dh.· · Published&:Dlitributedby 1iJ REX '.ijook $Jpre · · 856 Nlcanor Reyes, Sr. St Tel. Nos. 736-05-67 • 735-13-64 1977 c.M. Recto Avenue Tel. Nos. 735-55-27 • 735-55-34 Manila, PhlDpplnes www.rexpubfishlng.com.ph
Philippine Copyright 2019 by JOS ISBN 978-971-23-9948-0 No portion of this book may be copied or reproduced in books, pamphlets, outlines or notes, whether printed, mimeographed, typewritten, copied in different electronic devices or in any other form, for distribution or sale, without the written permission of either of the authors except brief passages in books, articles, reviews, legal papers, .and judicial or other official proceedings with proper citation. Any copy of this book without the corresponding number and the signature of either of the authors on this page either proceeds fro~ an illegitimate source or is in possession of one who has no authority to dispose of the same. ALL RIGHTS RESERVED BY THE AUTHORS a 1 1685 No. ,...,.._,__,_,,.;__...--...,. Printed by REX pRinTinq COfflPftOq, inc. Typography & Creative Lithography 84 P. Florentino St, Quezon City Tel. No. 857-77-77 ·•"''~ 1 .. ! l l J l f ! ··-,•~».--~- To my wife Felicitas, my children Macaria, Jocelyn, Jose, Jr., and Renato, and their famili_es Jose R. Sundiang, Sr. To my wife Bea, and our children Leona Isabelle, Lean Carlo, and Lauren Margaret T1moteo B. Aquino ~-f, :0:- ,- ill
iv ------'""'C""'" PREFACE TO THE NINTH EDITION Books that are designed primarily to answer the needs of Bar reviewees should be constantly updated to meet the ebb and flow of the law and jurisprudence. This updated edition substantially modifies the previous edition because of recent statutes including R.A. No. 11232 otherwise known as the Revised Corporation Code of the Philippines, R.A. No. 11057 otherwise known as the Personal Property Security Act, R.A. No. 10667 otherwise known as the Philippine C=,mpetition Act, R.A. No. 10173 otherwise known as Data Privacy Act of 2012, R.A. No. 10668 which is the cabotage or co- loading law in this jurisdiction, R.A. No. 10641 governing the entry of Foreign Banks, R.A. No. 10607 that modified the Insurance Code of the Philip?ines, latest amendments to the Intellectual Property Code (R.A. No. 10372), the PDIC Charter (R.A. No. 10846), and the Anti-Money Laundering Law (R.A. Nos. 10167, 10365, and 10927). Since the Electronic Commerce Act is now included in the coverage of the Bar Examinations in Commercial Law, the authors likewise included the salient features of the said law fa the introductory part of the book. In addition, this contains highlights of the modified rules embodied in the 2015 Implementing Rules and Regulations of the Securities Regulations Code. This edition adheres to the basic aim of the previous editions - to present the core subjects of Commercial Law in a simplified but comprehensive manner. The structure of tJ,e book was purposely designed to help students review for the Bar Examinations. As far as: pt~ctkable, the topics of past bar ex@:linativi "' •• •••• .. , • > PREFACE This book aims to provide law students with materials for careful review of the fundamental principles, doctrines, and rules on the cluster of laws that encompasses Commercial Law. Like similar ~€~~is cases. However, since the book embodies what should be a student's core knowledge of Commercial Law, it may be used not only by students who are preparing for the bar examinations but also as study guide of students who are taking Commercial Law subjects in law school, especially Commercial Law Review. th!:! present eipQr.ates new la'w's and jutispruderu::e. For insti!!lce~ this W-Qrl<,: ix\clua.es salieq.t £ea~ of the Hu.man Security .Act of 2007, Civil Aviation Act of 2008 and the Universally Accessible Cheaper''ancl Qu~ty; J¥1edic;me·Ad: of 200$. New tq>pjcs like tfiefaws6iti'lii'lil estatetndrf@l~j salva~, and ship mortsage are now included. The authors re-arranged the different parts of the book without deviating from the general format of presentation of the materials. All laws and discussion involving Credit Transactions are now part of Part V of this volume. The authors, in the preparation of the present edition, are still ~~ed 1'ly thcit peliefith:at ftte:re is ri.o •thing,as ex~edingly 't:~1a;,;r:~,t~i:=~,:~~~t~:!i of lia:w; E'@JY<.§~lietjt~h<>ttld heed the caution gi,ven