7/29/2019 FAQ on Corporate Law

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FAQ on Corporate Law

When is an airline liable for damages despite force majeure?Assuming arguendo that airline passengers have no vested right to amenities in case aflight is cancelled due to force majeure, what makes an airline liable for damages in the

instant case is its blatant refusal to accord the so-called amenities equally to all itsstranded passengers who were similarly situated.

What is the essence of a cashiers check?It is a well-known and accepted practice in the business sector that a cashiers check isdeemed as cash. Moreover, since the said check had been certified by the draweebank, by the certification, the funds represented by the check are transferred from thecredit of the maker to that of the payee or holder, and for all intents and purposes, thelatter becomes the depositor of the drawee bank, with rights and duties of one in suchsituation. Where a check is certified by the bank on which it is drawn, the certification isequivalent to acceptance. Said certification implies that the check is drawn uponsufficient funds in the hands of the drawee, that they have been set apart for its

satisfaction, and that they shall be so applied whenever the check is presented forpayment. It is an understanding that the check is good then, and shall continue good,and this agreement is as binding on the bank as its notes in circulation, a certificate ofdeposit payable to the order of the depositor, or any other obligation it can assume.

When is an airline liable for damages despite force majeure?Assuming arguendo that airline passengers have no vested right to amenities in case aflight is cancelled due to force majeure, what makes an airline liable for damages in theinstant case is its blatant refusal to accord the so-called amenities equally to all itsstranded passengers who were similarly situated.

Does the delivery of a check extinguish an obligation?

Since a negotiable instrument is only a substitute for money and not money, the deliveryof such an instrument does not, by itself, operate as payment. A check, whether amanagers check or ordinary check, is not legal tender, and an offer of a check inpayment of a debt is not a valid tender of payment and may be refused receipt by theobligee or creditor. Mere delivery of checks does not discharge the obligation under a

judgment. The obligation is not extinguished and remains suspended until the paymentby commercial document is actually realized .

Source: http://tanjutcolaw.com/practice-areas/corporate-business-law/faqs-on-

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