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Negotiable Instruments Law MCQ
Negotiable Instruments Law MCQ
accommodation party
He must be a party to the instrument
He must receive value therefor
He must sign for lending his name or credit
All of the above
35. All
a.
b.
c.
d.
36. The following are the rights of indorsee in a restrictive indorsement, except
a. To receive payment on the instrument
b. To bring any action thereon that the indorser could bring
c. To negotiate the instrument
d. None of the above
37. I promise to pay P10,000.00 (Sgd) M
a. Negotiable
b. Non-negotiable
38. I authorize you to pay P or order P10,000.00 (Sgd) M
a. Negotiable
b. Non-negotiable
39. I agree to pay to the order of P, P10,000.00 (Sgd) M
a. Negotiable
b. Non-negotiable
40. I promise to pay P or order P10,000.00, 30 days after the death of his
partner (Sgd) M
a. Negotiable
b. Non-negotiable
41. M signed a blank check which he inadvertently left in his desk at his office. P
later stole the same, who filled in the amount of P 20,000.00 and a fictitious
name as payee. P then indorsed the check in the payees name and indorsed
the check to A; thereafter, A indorsed to B; then B to C, and C to D.
e. D cannot enforce the instrument against M only if D is holder in due
course
f. D can enforce the instrument against M even if D is not a holder in due
course because the signature of D is genuine
g. D cannot enforce the instrument against any one of the prior parties
because the instrument is not a valid instrument and therefore, not
negotiable
h. D can enforce the instrument against any one of the prior parties except
M
42. Which feature of a bill of exchange in not found on a promissory note?
e. Promise to pay
f. Order to pay
g. Written instrument
h. Promise to pay sum certain in money
43. Which instrument is payable to bearer
e. Pay to bearer B, P1000
f. Pay to B, bearer, P1000
g. Pay to bearer, P1000
h. All of the above
44. A promissory note payable on demand must be presented for payment
e. Within a reasonable time after its issuance
f. Within a reasonable time after its last negotiation
g. Within a reasonable time after its last indorsement
h. None of the above
45. The validity and negotiability of an instrument are not affected by the
following omissions, except
e. It is not dated
f. Does not specify where it is drawn or the place where it is payable
g. Designates a particular fund from which payment is to be made
h. None of the above
46. Which of the following is not necessary in order to make an instrument
negotiable?
e. It must be in writing and signed by the maker or drawer
f. It must contain an unconditional promise or order to pay a certain in money
g. It must be payable only to a specified person
h. It must be payable on demand or at fixed or determinable future time
47. A bill of exchange may be treated as a promissory note
e. When the drawee and the payee are the same person
f. When the drawer and the payee are the same person
g. When the drawer and the drawee are the same person
h. All of the above
48. Not a method of transferring commercial paper
e. Assignment
c. Negotiation
f. Indorsement and delivery d. None of the above
49. Which is not a negotiable instrument?
e. Promissory note
c. Bill of exchange
f. Checks
d. Certificate of stock
50. Which of the following is an example of real defense?
e. Acquisition of the instrument by force
c. Cashiers check
d. None of the above
86. An indorsement where the indorser adds the phrase without recourse is a
a. blank indorsement
c. restrictive indorsement
b. qualified indorsement
d. conditional indorsement
87. Which is an instrument payable to the order of the drawee?
a. pay to yourself or order, 100.00 c. pay to the order of ourselves, 100.00
b. I promise to pay myself or order, 100.00
d. all of the above
88. Which of the following is not necessary in order to make an instrument
negotiable?
a. it must be in writing and signed by the maker or drawer
b. it must contain an unconditional promise or order to pay a sum certain
in money
c. it must be payable on demand or at a fixed determinable future time
it must be pay
89. Which of the following issued and signed by Kimpoy is negotiable?
a. I promise to pay A or order P 100.00 if he will pass the Bar exams this year.
b. I promise to pay A or order P 100.00 10 days after the death of his dog Kinky.
c. I promise to pay A or order P 100.00 in two installments.
d. I promise to pay A P 100.00.
90. A promissory note is different from Bill of Exchange because
a.
b.
c.
d.
b.
d.
Restrictively indorsed
Indorsed especially
96. Which of the following is not warranted by a person negotiating an instrument by delivery?
a.
b.
c.
d.
That at the time of his endorsement the instrument is valid and subsisting
That the instrument is genuine and in all respect what it purports to be
That he has good title to it and that all prior parties have capacity to contract
That he has no knowledge of any fact which would impair the validity of the instrument or
render it valueless
97. Alteration which changes the following shall be deemed to be material, except a. Date
a. Time or place of payment
b.
d.