Thank you for the opportunity to share with you what I have learned inside and outside the

classroom. May you be successful in whatever endeavor you will take. See you next time.

NEGOTIABLE INSTRUMENT LAW

FINAL EXAMINATION

I. Choose the best answer. (Just write the letter of your choice) Good Luck.

1. What is negotiation?
a. It is a transfer.
b. It is an assignment
c. It is a transfer of negotiable instrument from one person to another in such manner as to
constitute the transferee the holder thereof.
d. None of the above

2. Indorsement is
a. It is in writing
b. It is a signature
c. It is process
d. It is the writing of the signature of the indorser to the instrument itself or upon a paper
attached thereto.
3. There are many kinds of indorsement, namely blank, special, restrictive,conditional or qualified.
Which among these is a blank indorsement?
a. Pay to Donald Php 300
Sgd.
b. Pay to Babang Php 500
To: Pico
Sgd. Anjing
c. Pay to cash
d. Pay to superman
4. What kind of indorsement which bears the phrase, “without recourse or sans recourse”?
a. Conditional indorsement
b. Restric tive indorsement
c. Qualified indorsement
d. Blank indorsement
5. One requisite of this kind of indorsement is it PROHIBITS THE FURTHER NEGOTIATION OF THE
INSTRUMENT. What is it?
a. Restrictive Indorsement
b. Conditional Indorsement
c. Special Indorsement
d. Qualified Indorsement
6. Sarrah made an order instrument payable to Cristine or her order for PHP 500. Cristine on the
other hand indorsed the same to Oyo; Oyo then delivered the same to Kristine. Kristine now
goes to Sarrah and makes collection on the instrument. Can she collect?
a. No, because she is not a party to the instrument.
b. Yes, because it is properly negotiated.
c. Yes, because it was delivered to her by Oyo.
d. No, it is not properly negotiated. It is an order instrument and an indorsement instrument is
negotiated only through indorsement, coupled with delivery.
 Thank you for the opportunity to share with you what I have learned inside and outside the
classroom. May you be successful in whatever endeavor you will take. See you next time.

7. Supposed in the problem above, it is a bearer instrument. Will your answer be the same?
a. No, it is still not properly negotiated because there was an indorsement first.
b. Yes, it was delivered.
c. No, there was no intention mentioned.
d. Yes, a bearer instrument is always a bearer instrument. Even there has been an
indorsement on the instrument it can still be negotiated by delivery by Oyo to Kristine. Since
a bearer instrument is negotiated by delivery.
8. Apolinar took a negotiable instrument complete and regular on its face, he took it for value and
in good faith, he became a holder before it was overdue and he has no notice of any infirmity in
the instrument or defect on the title of the person negotiating it. Is he a holder in due course?
a. Yes
b. No
c. Maybe.
d. I supposed?
9. From the list below, what is a personal defense?
a. Complete but undelivered instrument
b. Forgery
c. Material alteration
d. Incomplete and undelivered instrument
10. Among these, what is a warranty of a general indorser?
a. That the instrument is genuine and in all respects what it purports to be
b. That he has a good title to it
c. That all prior parties had capacity to contract
d. That the instrument is at the time of his indorsement is valid and subsisting
e. All of the above

II. Distinguish

1. Payment for honor vs. acceptance for honor

2. Presentment for payment vs. presentment for acceptance
3. Inland Bill of exchange vs. foreign bill of exchange
4. Notice of dishonor vs protest
5. Material alteration vs forgery
6. Check vs bill of exchange
7. Special indorsement vs blank indorsement
8. Payment in due course vs. payment
9. Qualified acceptance vs qualified indorsement
10. Referee in need vs. acceptor

III. Discuss the life of a negotiable instrument.

Bonus:
What do you think of your teacher? Write honestly (Anyways we will not see each other anymore :P)

-Happy Graduation-


Thank you for the opportunity to share with you what I have learned inside and outside the
classroom. May you be successful in whatever endeavor you will take. See you next time.