Practice question
A collecting bank grossly disregards visible regional-check information and prematurely credits and pays a deposited check. The customer withdraws in good faith, with no proof of knowing receipt of an undeserved benefit. On facts matching BDO v. Barcellano, does the bank necessarily recover merely by labelling the credit a mistaken payment?
- Yes, every bank error conclusively establishes solutio indebiti
- No; the Court rejected recovery on the proved gross-negligence and good-faith facts
- Yes, customer good faith is legally impossible
- Yes, the deposit conclusively proves fraud
- Yes, Article 2162 is the only possible reason any restitution claim can fail
Legal references
- Civil Code, Articles 22, 1157, 1160, 2142-2169 and 2176: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
- BDO Unibank, Inc. v. Barcellano y Riego, G.R. No. 261264, February 12, 2026, MAIN decision: https://lawphil.net/judjuris/juri2026/feb2026/gr_261264_2026.html
Answer this question in flashcards to review your response and continue practicing.