4/7/2021 E-Library - Information At Your Fingertips: Printer Friendly drafts. Moreover, allowing such solidary liability would, indeed, be to sanction unjust enrichment on the part of Llorente, who [would] be allowed to profit or enrich himself inequitabl[y] at EPCIB's expense, since he was already paid and yet, the latter, who was without any fault, is still bound to share the responsibility without any assurance of being paid. Hence, it is only just and equitable to relieve the bank from any liability to pay considering the execution of the above agreement in favor of Llorente.[92] The Court finds, and so holds, that the CA erred in discharging EPCIB from its liability as the drawer of the subject demand/bank drafts. A review of the records confirms SCPL's argument that the Indemnity Agreement cannot be considered as evidence because it was not formally offered. In addition, even if it were given some evidentiary weight, it will nevertheless not bind SCPL pursuant to the principle of relativity of contracts under Article 1311 of the Civil Code, which provides that "[c]ontracts take effect only between the parties, their assigns and heirs, except in case where the rights and obligations arising from the contract are not transmissible by their nature, or by stipulation or by provision of law." As to the unjust enrichment principle applied by the CA, the same is not proper. EPCIB's invocation of unjust enrichment to avoid its liability as the drawer of the subject demand/bank draft evinces bad faith in that rather than discharging its obligation as the drawer, EPCIB presents the Indemnity Agreement as an afterthought to shield itself from liability. Firstly, the liability of EPCIB as the drawer cannot be abrogated by virtue of the Indemnity Agreement because it arises from the subject demand/bank drafts, which are negotiable instruments, that it issued. Its secondary liability under Section 61 of the NIL became primary when the payment of the subject demand/bank drafts had been stopped which had the same effect as if the instruments had been dishonored and notice thereof was given to the drawer pursuant to Section 84 of the NIL. Given the nature of the liability of the drawer of a negotiable instrument, EPCIB's argument that it is not liable to SCPL because they have no privity of contract is utterly without merit. Secondly, the reimbursement/return by EPCIB to Llorente of the face value of the subject demand/bank drafts in the total amount ofUS$300,000.00 by virtue of the Indemnity Agreement, assuming this had any probative value, is subject to the following provision: 4. Claimant ([Llorente)] also agrees to execute and post an indemnity bond in an amount equivalent to US$300,000.00 in favor of EPCIBank, Star Casino (US$ Drafts Holder/Endorsee), Union Bank of California: (UBOC), and to any other person or entity who may have been prejudiced by Claimant for whatever damages that may be suffered by EPCIBank, and other third parties as a consequence of Claimant's SPO [(Stop Payment Order)] and reimbursement of the amount of US$300,000.00.[93] Thus, if EPCIB is made liable on the subject demand/bank drafts, it has a recourse against the indemnity bond. To be sure, the posting of the indemnity bond required by EPCIB of Llorente is in effect an admission of his liability to SCPL and the provision in https://elibrary.judiciary.gov.ph/thebookshelf/showdocsfriendly/1/65911 15/22