B.P. 22; FREEDOM OF CONTRACT NOT IMPAIRED CHECKS NOT CATEGORIZED AS CONTRACTS. — We  find not valid ground to sustain the contention that B.P. 22 impairs freedom of contract. The freedom of contract which is constitutionally protected is freedom to enter into "lawful" contracts. Contracts which contravene public policy are not lawful. We must bear in mind that checks can not be categorized as mere contracts. It is a commercial instrument which, in this modern day and age, has become a convenient substitute for money; it form part of the banking system and therefore not entirely free from the regulatory power of the state.

CJ Yap, p.

Decision

xxx

We find no valid ground to sustain the contention that BP 22 impairs freedom of contract. The freedom of contract which is constitutionally protected is freedom to enter into "lawful" contracts. Contracts which contravene public policy are not lawful.33.     Article 1409, Civil Code.34 Tañada and Fernando, Constitution of the Phil. (1949 ed.) p. Besides, we must bear in mind that checks can not be categorized as mere contracts. It is a commercial instrument which, in this modern day and age, has become a convenient substitute for money; it forms part of the banking system and therefore not entirely free from the regulatory power of the state.

EN BANC, Justice Yap, FLORENTINA A. LOZANO, petitioner, vs. THE HONORABLE ANTONIO M. MARTINEZ, in his capacity as Presiding Judge, Regional Trial Court, National Capital Judicial Region, Branch XX, Manila, and the HONORABLE JOSE B. FLAMINIANO, in his capacity as City Fiscal of Manila, respondents.[G.R. Nos. L-66839-42.  December 18, 1986.]