Question
For services rendered by Jose to Maria, Maria issued Jose a check payable to CASH worth P50,000 dated March 1, 2021. Jose accepted the check.
For services rendered by Jose to Maria, Maria issued Jose a check payable to CASH worth P50,000 dated March 1, 2021. Jose accepted the check. On February 14, 2021, Jose needed money to date his girlfriend Tina for Valentine's day. Early that morning of February 14, Jose went to Berto to have the check "rediscounted." Jose endorsed the check in favor of Berto and Berto gave Jose P49,000. On March 1, 2021, Berto was successfully able to encash the check. Jose went to Maria asking for payment of his services.
Jose argued that the check paid by Maria is not legal tender and the obligation is thus, not yet extinguished. Is Jose correct?
Group of answer choices
YES, Jose is correct. Check is not legal tender in the Philippines. Payment by check does not extinguish an obligation.
NO, Jose is not correct. Check is not legal tender unless encashed. Jose accepted the check as payment and the same has been successfully encashed.
NO, Jose is not correct. Maria made a valid tender of payment via check and it was properly consigned to Jose. According to the law, tender of payment coupled with consignment extinguishes an obligation.
YES, Jose is correct. It was Jose, not Berto, who encashed the check. As far as Jose is concerned, the check was never encashed and the check, not being legal tender, never had the effect of payment which could have extinguished the obligation.
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