Practice question
A lender issues checks intended to fund a loan, but they are never encashed or deposited and no loan proceeds are delivered. A signed mortgage recites the proposed debt. On facts like Naguiat, which is correct?
- Mere issuance and the rebutted recital do not establish delivery perfecting the real loan
- Every check automatically proves cash delivery
- A mortgage signature makes actual funding irrelevant
- The borrower must repay money never received solely because a loan was proposed
- A notarial seal makes every recital irrebuttable
Legal references
- Naguiat v. Court of Appeals, G.R. No.118375, October 3, 2003, MAIN decision, unencashed loan checks: https://lawphil.net/judjuris/juri2003/oct2003/gr_118375_2003.html
- Civil Code, Articles 1159,1191,1249,1308,1314-1316,1319,1322-1326,1933-1934,1962 and1980: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
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