Text of the provision
Art. 1518. The validity of the negotiation of a negotiable document of title is not impaired by the fact that the negotiation was a breach of duty on the part of the person making the negotiation, or by the fact that the owner of the document was deprived of the possession of the same by loss, theft, fraud, accident, mistake, duress, or conversion, if the person to whom the document was negotiated or a person to whom the document was subsequently negotiated paid value therefor in good faith without notice of the breach of duty, or loss, theft, fraud, accident, mistake, duress or conversion.
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Civil Code of the Philippines, Republic Act No. 386, approved June 18, 1949, effective August 30, 1950. Reproduced in full; verified verbatim against the LawPhil and ChanRobles official-text renderings.
What this article means
The validity of a negotiation is not impaired by the negotiator's breach of duty or the owner's loss of possession by theft, fraud, etc., if the taker paid value in good faith without notice.
Related provisions
- Article 1513 — Rights of a Holder by Due Negotiation.
- Article 1519 — Goods Under a Negotiable Document Not Attachable.
Cases interpreting this article
- Authorities on this article will be added here as each is verified against primary sources.