Myline Cordial

Ang Tek Lian vs. Court of Appeals
G.R. No. L-2516, September 25, 1950

FACTS:
The appellant, Ang Tek Lian issued a check payable to the order of “cash” in exchange for money in the amount of Php4,000. Relying on appellant’s assurance that he had sufficient funds, the payee encashed but it was dishonored for insufficiency of funds.

ISSUE:
Whether or not appellant-drawer, is liable given the fact that the check had been made payable to cash and had not been endorsed by the drawer.

RULING:
Yes, he is liable. A check payable to the order of cash is a check payable to bearer, and the bank may pay it to the person presenting it for payment without the drawer’s endorsement.