negotiable instruments law

NEGOTIABLE INSTRUMENTS LAW

Part I

Preliminaries

1. Memorize Section 1 of the Negotiable Instruments LawAnswer:Legal Backup/Reference:

2. Define a negotiable instrument according to the Supreme Court of the Philippines.Answer:Legal Backup/Reference:

3. What is/are the function/s of negotiable instruments?Answer:Legal Backup/Reference:

4. What are the common forms of negotiable instruments?Answer:Legal Backup/Reference:

5. What is the important characteristic or feature of negotiable instruments?Answer:Legal Backup/Reference:

6. Define a negotiable promissory note.Answer:Legal Backup/Reference:

7. Define a negotiable bill of exchange.Answer:Legal Backup/Reference:

8. Define a negotiable check.Answer:Legal Backup/Reference:

Lesson 1 – Promissory Notes

9. Define a negotiable promissory note.Answer:Legal Backup/Reference:

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10. What are the special types of promissory notes?Answer:Legal Backup/Reference:

11. Define a Certificate of Deposit.Answer:Legal Backup/Reference:

12. What is a Bond?Answer:Legal Backup/Reference:

13. Define a Bank Note.Answer:Legal Backup/Reference:

14. What is a Due Bill?Answer:Legal Backup/Reference:

Lesson 2- Bill of Exchange

15. Define a negotiable Bill of Exchange.Answer:Legal Backup/Reference:

16. Give the special types of bills of exchange.Answer:Legal Backup/Reference:

17. Define a trade acceptance bill.Answer:Legal Backup/Reference:

18. Define a banker’s acceptance bill.Answer:Legal Backup/Reference:

19. Is a treasury warrant negotiable?Answer:Legal Backup/Reference:

20. Are postal money orders negotiable?Answer:Legal Backup/Reference:

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21. Define a clean bill of exchange.Answer:Legal Backup/Reference:

22. What is a documentary bill?Answer:Legal Backup/Reference:

23. Can a payee enforce payment on the bill against the drawee to whom the bill is addressed, if the drawee does not accept the bill?Answer:Legal Backup/Reference:

24. May the bill of exchange be addressed to two or more drawees?Answer:Legal Backup/Reference:

25. Define an inland bill of exchange.Answer:Legal Backup/Reference:

26. Define a foreign bill of exchange.Answer:Legal Backup/Reference:

27. Under what circumstances may a bill be considered a promissory note?Answer:Legal Backup/Reference:

28. Who is a “Referee in case of Need”?Answer:Legal Backup/Reference:

29. Is the holder duty bound to resort to the referee in case of need?Answer:Legal Backup/Reference:

Lesson 3 – Check

30. Define a negotiable check.Answer:Legal Backup/Reference:

31. Name the special types of checks.

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Answer:Legal Backup/Reference:

32. Define a cashier’s check.Answer:Legal Backup/Reference:

33. Define a manager’s check.Answer:Legal Backup/Reference:

34. Can both cashier’s and manager’s checks be treated as promissory notes?Answer:Legal Backup/Reference:

35. Define a Memorandum check.Answer:Legal Backup/Reference:

36. Define a crossed check.Answer:Legal Backup/Reference:

37. What is the purpose of crossing a check?Answer:Legal Backup/Reference:

38. Who crosses a check?Answer:Legal Backup/Reference:

39. In how many ways may a check be crossed?Answer:Legal Backup/Reference:

40. When is a check said to be crossed specially?Answer:Legal Backup/Reference:

41. When is a check said to be crossed generally?Answer:Legal Backup/Reference:

42. What is a traveler’s check?Answer:Legal Backup/Reference:

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43. What is a certified check?Answer:Legal Backup/Reference:

44. What is the effect of certification of a check?Answer:Legal Backup/Reference:

45. Who may procure a check to be certified?Answer:Legal Backup/Reference:

46. What is the effect if the check is certified procured by the holder?Answer:Legal Backup/Reference:

47. What is the effect of certification of the check procured by the drawer?Answer:Legal Backup/Reference:

48. When does a check operate as an assignment of the funds of the drawer with the drawee bank available for payment?Answer:Legal Backup/Reference:

49. Within what time shall a check be presented for payment?Answer:Legal Backup/Reference:

50. How do you call a check which is not presented for payment within a reasonable time after its issue?Answer:Legal Backup/Reference:

51. When is a drawer of a check discharged from liability in the event it has become stale?Answer:Legal Backup/Reference:

52. What is the effect upon the liability of the endorser in case the check is not presented for payment within a reasonable time after its issuance?Answer:Legal Backup/Reference:

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Lesson 4 – Requisites of Negotiability

53. What are the essential requisites of a negotiable instrument?Answer:Legal Backup/Reference:

54. What are the essential requisites of a negotiable promissory note?Answer:Legal Backup/Reference:

55. What are the essential requisites of a negotiable bill of exchange?Answer:Legal Backup/Reference:

56. What are the essential requisites of a negotiable check?Answer:Legal Backup/Reference:

Lesson 5 – Writing

57. What constitutes in writing?Answer:Legal Backup/Reference:

58. What is the doctrine of substantial compliance?Answer:Legal Backup/Reference:

59. For an instrument to be negotiable must it follow literally the language of the Negotiable Instruments Law?Answer:Legal Backup/Reference:

60. What is the difference between written and printed?Answer:Legal Backup/Reference:

Lesson 6 – Signature

61. What are the rules regarding signature?Answer:Legal Backup/Reference:

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62. What is the general rule as to the liability of a person whose signature does not appear on the instrument?Answer:Legal Backup/Reference:

63. What are the exceptions to this general rule?Answer:Legal Backup/Reference:

64. What are requisites must be followed so that the agent in so signing his principal will not be personally liable?Answer:Legal Backup/Reference:

65. Suppose an agent signs as follows: (Sgd.) Juan de la Cruzagent of Pedro Reyes:

Under such signature who shall be liable?Answer:Legal Backup/Reference:

66. What is meant by “disclosure of the principal”?Answer:Legal Backup/Reference:

67. Must disclosure of the principal be made always on the signature?Answer:Legal Backup/Reference:

68. What is a signature per procuration?Answer:Legal Backup/Reference:

69. How is a signature per procuration made?Answer:Legal Backup/Reference:

70. What is the effect of a signature per procuration?Answer:Legal Backup/Reference:

71. The question in this item was moved to Part 3 of GQ as question item 19

72. Define forgery.Answer:Legal Backup/Reference:

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73. In how many ways may forgery of a signature be done?Answer:Legal Backup/Reference:

74. What are the other forms of forgery?Answer:Legal Backup/Reference:

75. Explain Fraud in Factum.Answer:Legal Backup/Reference:

76. How is duress amounting to forgery done?Answer:Legal Backup/Reference:

77. Supposing A represents himself to be Jose Reyes, when in fact he is not. Through this misinterpretation A obtains from X a negotiable note payable to order of Jose Reyes. Then A indorses the note, signing “JOSE REYES”. Is this forgery?Answer:Legal Backup/Reference:

78. What are the effects of forgery of a signature on the instrument in general?Answer:Legal Backup/Reference:

79. Who are the persons precluded from setting up the defense of forgery?Answer:Legal Backup/Reference:

80. If a broker or agent negotiates an instrument by delivery who shall be liable? Is it the agent or the principal?Answer:Legal Backup/Reference:

Lesson 7- Parties

81. Who is a payee? Holder? Bearer?Answer:Legal Backup/Reference:

82. Who is a maker?Answer:Legal Backup/Reference:

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83. Who is a Drawer?Answer:Legal Backup/Reference:

84. Who is a drawee?Answer:Legal Backup/Reference:

85. What is a bank?Answer:Legal Backup/Reference:

86. Who is an acceptor?Answer:Legal Backup/Reference:

87. Who is an accommodation party?Answer:Legal Backup/Reference:

88. Who is an accommodated party?Answer:Legal Backup/Reference:

89. How many kinds of accommodation parties are there?Answer:Legal Backup/Reference:

90. Must an accommodation party not receive any consideration at all?Answer:Legal Backup/Reference:

91. What is the legal position of an accommodated party?Answer:Legal Backup/Reference:

92. Is the accommodation party liable to the accommodated party?Answer:Legal Backup/Reference:

93. To whom, then shall an accommodation party be liable on the instrument?Answer:Legal Backup/Reference:

Lesson 7A – Liabilities of Parties

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94. What kind of liability has a maker?Answer:Legal Backup/Reference:

95. What are the warranties of a maker?Answer:Legal Backup/Reference:

96. What kind of liability has the drawer?Answer:Legal Backup/Reference:

97. What warranties does drawer make?Answer:Legal Backup/Reference:

98. What kind of liability has the drawee?Answer:Legal Backup/Reference:

99. As Acceptor, what kind of liability does he have?Answer:Legal Backup/Reference:

100. What warranties does an acceptor make?Answer:Legal Backup/Reference:

101. In what respect does a maker differ from the acceptor as regards their primary liability?Answer:Legal Backup/Reference:

Lesson 8 – Unconditional Promise or Order

102. When is a promise or order considered unconditional within the meaning of the Act?Answer:Legal Backup/Reference:

103. In the following instrument, is the promise unconditional?“I promise to pay to the order of B P1,000 out of the proceeds of the sale of my car. (Sgd.) “A”

Answer:

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Legal Backup/Reference:

104. Suppose the fund stated on the instrument is the source of reimbursement, will the promise or order remain unconditional?Answer:Legal Backup/Reference:

105. Is the following instrument negotiable?Pay to the order of B, P5,000 on Dec. 1, 1987 and reimburse yourself out of my deposit with you. To: X (Sgd.) “A”Answer:Legal Backup/Reference:

106. Will an indication of a particular account to be debited with the amount affect negotiability?Answer:Legal Backup/Reference:

107. Is the following instrument negotiable?:“I promise to pay to the order of B, P5,000 in payment of the car I purchased from B.

(Sgd.) “A”Answer:Legal Backup/Reference:

108. If on the face of the instrument there are additional provisions as something to be done or added, will the instrument be negotiable?Answer:Legal Backup/Reference:

109. What is the test to determine whether additional acts will or will not impair negotiability?Answer:Legal Backup/Reference:

110. What acts in addition to payment of money will not affect negotiability?Answer:Legal Backup/Reference:

111. Is the following instrument negotiable?“I promise to pay to the order of B, P1,000 on Dec. 1, 1987. In case of default I hereby authorize the sale of my law books I pledge as a security. (Sgd.) “A”Answer:Legal Backup/Reference:

112. What is meant by “confession of judgment”?Answer:

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113. If an instrument contains a confession of judgment, will the instrument remain negotiable?Answer:Legal Backup/Reference:

114. In case there is an option to require something to be done in lieu of money on the instrument, will it affect negotiability?Answer:Legal Backup/Reference:

Lesson 9 – Sum Certain in Money

115. What constitutes sum certain in money?Answer:Legal Backup/Reference:

116. If the instrument contains the following:“To pay P1,000 and all other sums due”, is the sum certain in money?Answer:Legal Backup/Reference:

117. What is meant by the phrase “stated installments”?Answer:Legal Backup/Reference:

118. If the instrument contains the following: that the sum of P1,000 is payable in two equal installments”, will that satisfy the stated installments as required by the law?Answer:Legal Backup/Reference:

119. Suppose the phrase is the following:“The sum of P1,000 payable in two equal monthly installments to start on August 1, 1987,” is the sum certain in money?Answer:Legal Backup/Reference:

120. How does an acceleration clause affect the certainty of the sum payable?Answer:Legal Backup/Reference:

121. What is meant by “exchange”?Answer:Legal Backup/Reference:

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122. Does the phrase “with exchange” destroy negotiability?Answer:Legal Backup/Reference:

123. Suppose the instrument is payable in foreign currency, will that destroy negotiability?Answer:Legal Backup/Reference:

124. How does the stipulation on costs and attorney’s fees affect negotiability?Answer:Legal Backup/Reference:

Lesson 10 – Demand

125. When is an instrument considered payable on demand?Answer:Legal Backup/Reference:

Jan. 10, 1987126. I promise to pay to the order of B, P1,000 on Jan. 15, 1987.

(Sgd.) AThis note thogh made by A last Jan. 1, 2010 was issued by A to B only last Jan. 18, 2010. when is this note payable?Answer:Legal Backup/Reference:

127. But if the note above was issued by A to B last Jan. 10, 2010 but was only indorsed by B to C last Jan. 20 2010, when is it payale?Answer:Legal Backup/Reference:

Lesson 11 – Fixed Date

128. What are the rules regarding fixed date?Answer:Legal Backup/Reference:

Lesson 12 – Determinable Future Time

129. When is an instrument said to be payable at a determinable future time?Answer:

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130. To what does the phrase “after date” refer?Answer:Legal Backup/Reference:

131. To what does the phrase “after sight” refer?Answer:Legal Backup/Reference:

132. Can a promissory note be made payable either at a fixed period after date or after sight?Answer:Legal Backup/Reference:

133. Can a bill of exchange be drawn payable at a fixed period after date or sight?Answer:Legal Backup/Reference:

134. If a bill of exchange payable “10 days after sight” has been presented for acceptance on Aug. 1, 1987 but at the same time it was refuse acceptance by the drawee, when shall maturity date be?Answer:Legal Backup/Reference:

135. If an instrument is payable on or before Dec. 1, 1987, can the maker be compelled to pay before Dec. 1, 1987?Answer:Legal Backup/Reference:

136. Where the determinable future time specified on the instrument is sure to happen or is certain when it shall happen, can the instrument be payable at a fixed period before such event?Answer:Legal Backup/Reference:

137. Suppose the event mentioned is “death of a person”, can the instrument be made payable before such event?Answer:Legal Backup/Reference:

138. I promise to pay to the order of B when X gets married to Y, Is the instrument payable on a determinable future time?Answer:Legal Backup/Reference:

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Lesson 13 – Order

139. In how many ways may an instrument be made payable to order?140. To whose order may an instrument be drawn?Answer:Legal Backup/Reference:

141. I promise to pay to the order of the Treasurer P1,000 on demand.Is the above instrument payable to order?

Answer:Legal Backup/Reference:

142. Must the payee to whose order the instrument is payable be always named?Answer:Legal Backup/Reference:

143. There is no question in this item as well as in item 144 in the given GQ144.

145. Can you consider the note complete, if it is payable to the order of the maker himself?Answer:Legal Backup/Reference:

Lesson 14 – Bearer

146. When is an instrument payable to bearer?Answer:Legal Backup/Reference:

147. Does the Negotiable Instrument Law distinguish between fictitious person and a non-existing person?Answer:Legal Backup/Reference:

148. What requisites must be present so that an instrument where the payee named therein is fictitious or non-existing be considered payable to bearer?Answer:Legal Backup/Reference:

149. I promise to pay to Santa Claus P5,000 on demand.(Sgd.) “A”

Here A knows that his payee is non-existing, is the instrument payable to bearer?Answer:

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150. If an instrument payable to order has been indorsed in blank, can it be subsequently negotiated by mere delivery?Answer:Legal Backup/Reference:

Lesson 15 – Rules on Construction

151. State the rules of construction where the instrument is ambiguous.Answer:Legal Backup/Reference:

152. When are the above rules applicable?Answer:Legal Backup/Reference:

Lesson 16 – Rules Regarding Date

153. What are the rules regarding date?Answer:Legal Backup/Reference:

154. Is date of issuance essential for negotiability?Answer:Legal Backup/Reference:

155. When is an instrument considered ante-dated?Answer:Legal Backup/Reference:

156. When is the instrument considered post-dated?Answer:Legal Backup/Reference:

157. Does ante-dating or post-dating an instrument invalidate the instrument?Answer:Legal Backup/Reference:

158. As of what date shall a person acquire title to an instrument which is ante-dated or post-dated but not for an illegal or fraudulent purpose?Answer:Legal Backup/Reference:

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159. Under what instances may date of issuance or acceptance be inserted in the instrument?Answer:Legal Backup/Reference:

160. What is the authority of the holder as regards the insertion of the date?Answer:Legal Backup/Reference:

161. Will insertion of a wrong date invalidate the instrument?Answer:Legal Backup/Reference:

Lesson 17 – Omissions not Affecting Negotiability

162. What factors may be omitted on the face of the instrument, yet will not impair negotiability?Answer:Legal Backup/Reference:

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negotiable instruments law

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