ATTY. PAOLA LOUISE P.

LORIDO, CPA 1
ATTY. PAOLA LOUISE P. LORIDO, CPA 2
 FORM AND INTERPRETATION
Section 23. Forged signature; effect of. Where a
signature is forged or made without the authority of the
person whose signature it purports to be, it is wholly
inoperative, and no right to retain the instrument, or to
give a discharge therefor, or to enforce payment thereof
against any party thereto, can be acquired through or
under such signature, unless the party against whom it
is sought to enforce such right is precluded from
setting up the forgery or want of authority.

ATTY. PAOLA LOUISE P. LORIDO, CPA 3

 EFFECT OF FORGERY
The signature that is forged or made
without authority is wholly inoperative
No right to retain the instrument, or to
give a discharge therefor, or to enforce
payment thereof against any party
thereto, can be acquired through or under
such signature

ATTY. PAOLA LOUISE P. LORIDO, CPA 4

 EXCEPTIONS
Those who are precluded from
setting up forgery or want of
authority
Where the forged signature is not
necessary to the title of the holder

ATTY. PAOLA LOUISE P. LORIDO, CPA 5

ATTY. PAOLA LOUISE P. LORIDO, CPA 6
 CASES OF FORGERY
1. Forgery of promissory notes
Forgery of the makers signature
Forgery of an indorsement
2. Forgery of bills of exchange
Forgery of the drawers signature
With acceptance by the drawee
Without such acceptance but the bill is paid by the drawee
Without such acceptance
Forgery of an indorsement

ATTY. PAOLA LOUISE P. LORIDO, CPA 7

 CASES OF FORGERY

What kind of instrument?

Order or bearer?
Whose signature is
forged?

ATTY. PAOLA LOUISE P. LORIDO, CPA 8

 DEFENSES AGAINST A HOLDER
PERSONAL REAL
Lack/Failure/Absence of Fraud in factum or fraud in
consideration (Section 28)
esse contractus (Sec.tion 14)
Illegal consideration
Ante-dating or post-dating for Want or lack of delivery of
illegal/ fraudulent purposes (Section 12) an incomplete instrument
(Section 15)
Insertion of wrongful date (Section 13)
Want or lack of authority to Minority/Ultra vires act/
complete instrument (Section 14) Lack of capacity (Section 22)
Want or lack of delivery of complete (only as to such person)
instrument (Section 16) Forgery(Section 23)
Conditional delivery of a complete
instrument (Section 16)
Fraud in inducement
ATTY. PAOLA LOUISE P. LORIDO, CPA 9