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CHAPTER 2

EXAMPLES
1. SUM CERTAIN IN MONEY. (See Sec. 2)

a. With interest
I promise to pay Kobe or bearer P100,000 after one(1) year with 20% interest per annum.
Sgd. LeBron
The instrument is negotiable. The fact that the instrument indicates interest does not destroy
negotiability. The certainty as to sum as required in Sec. 1 refers to the principal amount that is
P100,000. The interest stipulated is only an accessory to the instrument.
b. By stated installments
I promise to pay Kobe or bearer P100,000 in four monthly installments, as follows:
1st
2nd
3rd
4th



-

24 August 2015
24 September 2015
24 October 2015
24 November 2015

P25,000
P25,000
P25,000
P25,000

Sgd. LeBron
The instrument remains to be negotiable because the principal sum is certain. Kahit na installment pa
yan, it doesn’t destroy the negotiability of the instrument.
c. By stated installments with acceleration clause
I promise to pay Kobe or bearer P100,000 in four monthly installments, as follows:
1st
2nd
3rd
4th



-

24 August 2015
24 September 2015
24 October 2015
24 November 2015

P25,000
P25,000
P25,000
P25,000

Upon default in payment in any of the aforesaid installments, then the whole amount payable shall
become due
Sgd. LeBron
Negotiable pa din ang instrument because of the fact that it has a provision that upon default in
payment of any installment, the whole amount shall become due. The last paragraph in the instrument
is called acceleration clause.

LeBron In this case. e. Must be payable to order or bearer a. I promise to pay Kobe or bearer P100. The fact that the instrument is with exchange doesn’t destroy the instrument’s negotiability. ___________________ 3. this provision applies to foreign bill. exchange simply means rate multiplied by the principal amount in the instrument to cover the expenses in providing the funds since it may be drawn in one country and payable in another country. Sgd. (See Sec. Hence. LeBron In this example. Must be payable on demand. I likewise commit to pay the costs of collection and attorney’s fees. 1. Determinable future time (See Sec.000 30 days after sight.000 with exchange at 1.e. I promise to pay Kobe or bearer P100. or at a fixed or determinable future time. a. Payable to order (See Sec. Payable on demand. letters a-f) i. _________________ 2.000 . I promise to pay Kobe or bearer P100. With exchange rate whether at a fixed or current rate I promise to pay Kobe or bearer S100. 7) This requirement pertains to time or maturity of the instrument. Pay to Kobe or order P100.5% Sgd.The additional obligation will not destroy the negotiability of the instrument as the same is not contrary to law. or 2.000 30 days after date. or at sight or on presentation i.e. I promise to pay Kobe or bearer P100. or 2.000 (No time) b. or 3. I promise to pay Kobe or bearer P100. a. 8. With cost of collection or attorney’s fee I promise to pay Kobe or bearer P100.000 on demand.000 is still certain.000 b.000 on or before 24 August 2015.d.000 on 23 August 2015 and upon default.000 on presentation. I promise to pay Kobe or bearer P100. the sum of P100. Pay to the order of myself P100. 4) 1. or 3.

the payee signed his name and delivered it to another. f. Pay to yourself or order P100.000 Pay to Kobe or bearer P100.000 Pay to K1 or K2 or order P100. 9. e.000 To: LeBron Sgd. Payable to bearer (See Sec.e.000 Pay to Wolverine P100. e. a. (endorsement in blank) .000 Pay to the order of President of Kobe Corporation P100. c. letters a-e i. Pay to bearer P100. d. d.c. b. Steph Curry b.000 Pay to K1 or K2 or K3 or order P100.000 Pay to cash At the back of the instrument.