- Statute
- Civil Code
- Article
- Art. 1518
- Topic
- Obligations of the Vendor
- Status
- In force
- Book
- BOOK IV Obligations and Contracts
- Title
- TITLE VI SALES
- Chapter
- CHAPTER 4 Obligations of the Vendor
- Year
- 1949
- Cited by
- Multiple Supreme Court decisions
The provision
The validity of the negotiation of a negotiable document of title is not impaired by the fact that the negotiation was a breach of duty on the part of the person making the negotiation, or by the fact that the owner of the document was deprived of the possession of the same by loss, theft, fraud, accident, mistake, duress, or conversion, if the person to whom the document was negotiated or a person to whom the document was subsequently negotiated paid value therefor in good faith without notice of the breach of duty, or loss, theft, fraud, accident, mistake, duress or conversion. (n)
Intellegal Wiki · In plain terms
Transferring a negotiable document of title stays valid even if the transfer breached a duty, or the owner lost the document through loss, theft, fraud, accident, mistake, duress, or conversion. A person who took the document in good faith, for value, and without notice of the problem is still protected in the transaction.
An editorially maintained plain-language explanation of this provision — not legal advice.
Cases applying this article
- Leonardo Lucido v. Gelasio Calupitan G.R. No. 8200
- Felix Angao v. Nicolas Clavano G.R. No. 5853
- Angela Joaquin y Patricio v. Inocencio Aragon G.R. No. 1239
- Lino Gonzaga, Demandante-Apelado, Contra Juan Go Y Victorina Cabelin De Go, Demandados-Apelantes G.R. No. 47061
- Eusebio Cabigao v. Ignacio Valencia G.R. No. 31448
- Pedro Magayano v. Tomas Gapuzan G.R. No. 9038