qerndition yenskenc of Gait -casuly motrants are considered nope = An inser: is conscaved Paya Bearer neo ie §5payatie tothe order t's Reaon or non-sunng pack and ch ac know tobe parson mains tse maa 8 Bain ore fie © Nort tmtrg: No. 21 ase. 4 Noaiwtatve, nz eae ie ss 8 borrowed Ppt milion fam L and offer! to hin his BH car worth Poot Millon 9s. collateral E then’ sxawated Promissory note thet reads: “lS, promise to pay tor Wastes {he amount of Pht Millon and te kews ray Beil Carne collateral) free from any other encuriurance. Sanea, Boe 5. Yes, since Ils payable to bearer. Yes; since it contains an Unconditional promise to pay a sin eta in mney. io, nee contains a {he paymant af money. Just pay a 9um af money is a Promise to de an act in addon to , debror of C, wrote a promissory note payable to the order of G:C brather, M, misrepresenting hrmsell 9s Cis soca, obtained the note thom Dy then negotigted. t to Nain forging Cs signature. N indorsed re to € wis indorsed Wes, ahalder in dus course. May F recover tom £2 9, No, since the forgery of Ce signature results in tho techarge of >. Yes, since only the forged signeture Is inoperative and © Is bound os indorser. 9s forged Yes, since the signature of Cis unmotenal, Be Beg the 16. c Consider these two statements Tan instrument’ originaly payable be converted into 9 bearer instrument converted ima an order insvomvent. a. Both statemunts are tue 3. Both Statements are fac Statement Tie ue; Statement If false GL Staternent tifa, Statament tts see to order may Drees i eee 8, Which ofthe falowng omissions an the face of an instrument villrancer fe non-nagotane> 3. The omission ofthe date of issue 5. The “omission of ‘any statement that value has been iver, he omission of the draws. 14. The omission of the signature af the maker above his ‘ypennitten name lace where the instrument was 19. 1 promise to pay to the order of x P100,000 in two equel instalment. The 2 payment is on January's. 2012. (saa 4 2." The instrument is non negotiable because tra payment ot 1" installment. was not faxed and thesctoce b. The instrument is negotlable because the payment is onsigered payabie on demand and the 2” paymens vias Mixed on January Ss S012 ©The instrument's han negotable because the instrument ‘S payable on instalment and te ate ef poyrnent oF Doth 1 and 2 instalment wae not stated 4, The instrument "cannot "be determined, whether it is negotiable or non negotiable 6 22, 6 D 7 = : = limited outhonty to sign. Thus. a parsan whe akes's Bit thor i draw aceapted, OF indersed by pracuration fy uty base {o nauite into the extort of the agents suthonty be examining the agent's special power of ataraey b. examining the bil t datermin the extent of such asking the agent avout the extent af such authorky > 'g the princloal about *he extent of Such auth. ments Law, 9 signeture by Ge That the ogent har but & ln 8 sigcature by procuration, the principal & boureé only in fase the agent acted within te Retual lots of hs auton te Tre sanate case operates wots 2.2 cual authority o sigh 5 limtea authenty ce sign © special authority te sign Due to his debt to C, © wrote 2 promissory note which is ppavable £0 the order of =. C's brathen, Hy Mlarepreseatiey himself a agent of C. obtained the rote’ from Beh wee ‘egavated the note to W after Torun the signature tC. Mey as Yes, since'D is the orincipat debtor 10 No, since the signature of was forged © Ne. since Wis C who ‘can enforce the note being ava to the ota 8. Yebyaince D, 26 mater I pinay Hable on the note Forgery of bis of exchange Aavior's signnture, shel & suthout acceptance but Owe bile pat by 1 taser with acceptance but tive bil pale by tke drawer may be subvlded into, 9) ‘an the bt anid 8) Forgery of the ray ther be with meceptane hy X found « check on the street, seown by ¥ aginst ABC Bank, with 2 payee. X forge 2s signature as an intone Gees indorsed © personally ard delivaret to Der wank, Re latter, n turn, indorseet I to ABC Bank wien cna nS, forgery a5 its defense. Wil prosper? aol, Rince the payae's sgh hes bean forged, Bas Oe ety fn te Yes, since ABC Bones Bound to Hew the cignature 1 a pramissory note whieh reads Is signed by twa ar more makers 2°°0'hn instrument hich contains on order oF promise to do any. 2et In addition to the. payment af money se noe “we promise to pay ete. the Habilty i= Joint and © Bort tater No.2 & fatce‘A ncqatiable instrument can be indorsed by way of a testnictive ingorsement, which prohibits further negobstion land constitutes the indarsee aS agen! of the indorser. As agent, the indorsee has the right, among others, £2 {demand payment of the instrument only. b. notify the drawer ofthe payment ofthe istrument 8 receive payment of the instrument, 4. astuct that paymert be made tothe drawes The rule ts that the intentional cancellation of a person Secondary liable results in the discharge of the latter. With respect to an indorser, the holde:'s night to cancel his Signatere is: 2. nithcut limitation, . not limited to the case where the indorsement necessary to is tide © limited to the case where the indorsement Is not necessary to his tite. @. ited to the case where the indorsemant is necessary to his le 16. 6 A holder in due course holds the instrument free from any feted of title of prior parties ard free trom defense avaiable te pnor parties among themselves, An example of such a dafense is 2. traud in ineicament duress amounting to foraery su esse contractus alteration A restrictive endorsement constitules the indorser a mere assignor of the tls tothe instroment 2" A restricted indorsement- which vests ttle inthe indorsce w trust for another person renders the instrument to become non-negotiable. 2, Bath ere ue Db. Both are fase fio, 1's ue, No. 2s false @. Mo, false, No.2 i true B “Pay to € for collection onty, Sgd. 8° is an example of 2 Cy \esictive ype of endorsement bch is dlassiied as 2. Frohibitive tye 5. auency type 13 © Trust ype eL Rlof the above ‘as maker makes a promissory note for P500,000 payable to the order of B a: payee. The note is successively ‘egtiated from B to C2, D did leaving as an only hel S Uecomes the owner of '< note = a. By assignment BY operation of law sy negatiation | @. Mone of tre above 1. The her may at any time strike out any endorsement that 5 mot necessary to tis ttle. The endorser whose Signature is struck out, and all subsequent endorses, 1s thereby relieved from lability on the Instrument. 2 Where the instrument fs negotated back toa prior party, Such party may reissued and further negetate the same but he is not entitled to "enforce payment thereot against any intervening party to whom he was personally Hable, a. Both are true, 2 Both are fase, No. 11s true; No.2 is false. J. No.1 is false; No.2 is tue Statement 1: The Negobable instrument provides that a holder notin due course cannot recover on the instruments. Statement 2: A holder in due course who acquires a bearer instrument from a thief or finder wil have a superior right over the previous holder from whom it & stolen Or who has lost 16. a. Orly the 1 staroment is true Bb. Only the 2” statement ie tree © Bath statement are nat trie 4, Beth statement are true AA sssued a negotiable promissory note ta the order of B for 20,000 payable after 3) days alter date. Lator 8 indorsed i WC. Then X suole the nove fram C, forged the signature of C ‘nd neyouiated ik ta D, and D toe, € to F, the holder. On "icy ofthe note, which ofthe following statements Is not ec and vais? ® F cannot collect from C because it was C's signature whlch was forged b. Fecan collect from A because A cannot put up forgery as his deter Frcan collect tram ether bor €, because thar signature ‘are genuine and the note is operative against them &. F cannot collect fram # because Bis party prior to the forgery Lich oF the folowing sicumstarces woul! prevent a person From becoming a holler in due course ef an instrument 3. The person was nobfied hat one af the prior indorses| was Gichargedt The personas nated tha payment Was reused © The note vias collateral for 3 loan 4. The note was purchased ate oiscount Viel of the following ot Is inearroct™ 2. The Indovsoment must be uf te whol instrament, The signature of the indorser whut adtonal sors is stint. IorSers are Hable the veer i which they indore 4. WFan instrument is delivered wkhotdndorsemem ‘negotiation takes affac atthe time of sivery avon if the instrament is subscouently indore. Identity the flowing indorsement "Pay (9 &, without recourse” Sid P 2. Gualited © Special qualified D. Blonie 41 Quaid restrictive ‘A instrument payable to bearsr may be negouatt through any ofthe following means, excent 8, Special indorsement pus delivery. b. mere delwery, © lank indocsement ps delivery ie dalvery is cequirad as lng a5. there sgrssement, whether blank or special An inursement where the indorser waives the bene of any w Intended for his protection s known as 1. an absolute indersemert. ' facutative inderseren €& contional indorsement 4. a suceesswe mdorsement Hi inakes @ note payable to the order of & P speciaty indorses the nove to, specaly inorses the note ta, & indorses the note in blank and delivers i to:C, C specially Indorses the note to 0, D specially Indorses the note to hele Which of the indorsemonts may M strike out” 3, The special indorsement of P to A, The blank indoreersent of 3 mC The special ndorsement of C to 4, The special indorsement of to H. A holder not in due course has the folowing rights, except 2. He may receive payment and if the payment isin due course the instrument © dscharged b.Heimay sue on the instrument, in his ov name‘ 6 He eannt recover on the instrument, He ‘s entited to the instrument but hols it subjeet to the same defense as iit were non-negotiable. 17, 1%. where a negotabe instruments dosed cantina, the person ibe on the ‘nsvumene may regen Conan and egy pay te ame 22 seal posible ft 8 panto be boa hole io ue course and 2 nonoler tn due course mith vespee fk Bese natiinaemee 2. Both ae sue b: Bothare fe & Ne ett Re 2i8 ae 4. Nell tae Risa M makes a note payable te the order of Pincers the role tos, ATO, B Loe, CD, DID E, and E sacks Based on the foregoing, which of tne folowing staterrents i ‘incorrect? ‘9. Amay renegotiate the promissory nate b. A camot go after 8, ¢, D and E. © B,C, 0 and E enjoy temporary defence if Ais the holder. Uf the instrument is renegotiated by A to F, the latter cannot go after 8, C, O and E ay the ingorsee of a promissory note indorsed to him “for deposit” file a sult against the indorser? Yes, as long as the indorser recelved value for the restrictive indorsement. Yes, as jong as the indorser received value for the conditional ndersement & Yes, whether or not the indorser received value for the conditional indorcement. Yes, whether or not the indarser received value for the restetive indorsement, 8 20, 2 wrote out an instrument that states: “Pay to X the amount ‘of Phot Million for collection only, Signed, 2." x indorsed i to his creditor. ¥, to worn he owed Php milion. now wants {0 collact ond Satisfy X's debt through the Php! milion on the ‘check, May he waialy do 50? 2. Yes, since the indorsement to ¥ is for Php Mion, No, Since Zis nota party tothe lean between ¥ and ¥. No, since X is merely an agent af 2, hs only nght being to collect 4. Yes, since X owed ¥ Php Mion H makes a promissory note that states: “l, M, promise to pay Pnp§,000.00 to 8 oF bearer. Signed, H." H negotiated the note by delivery to 8, B to N, and N to O. B had known that 4 was bankrupt when M issued the note. Whe would be leble too? {5% Mand since they may be assumed to know of Hs bankruptey b. Ny being O's immediate negotiator ofa bearer note 8; Hand N, being indorsers by delivery ofa bearer note J.B, having known of M's bankruptcy 22. A ts maker of a promissory note payable to the oider of {and then successively negotiated to C to D to Eto F to S who |g the holder. G strikes out intentionally the Indorserment of c a Only cis discharged. A ane D are discharged but not & and F Al OFC, 0, & and Fare discharged; C by the striking out ot his indorsement and D, E and F by discharge o! 2 prior pany. No one ts discharged because the problem does not say that the striking out of the inéorsemant wae before oF after the maturity of the instrumest b 25. A makes promis nte payable tothe order of 8, but Gefters Rise Who maybe conde nage tr noe uss sate ana Be Rather Bor 24, Under the Negotiable Instruments Law, ifthe holder hes a lien on the instrument which arses either from a contract oF by implication of la, he wculd be 2 holdks for value to the extent of 2. his successors interest b. his predecessor's anterest © thelieninhis favor 4d, the amount indicated on the Instruments face 25. M sions a promissory note payable to the order of P which is. lank as to amount. 6 delivers the note to ? with instructs to type the antount of P20,000,00 on the blank. P, haweve! types the amount of PS0.060.00, and negotstes the same to A, AB, Bto, and Cto H, a holder in due cnurse. AS, ¢ ad also # had ne knowledge oF tne wrunef competion cl the blank 3H may collect from M nothing because P violated H's + structions >. may collect from 720,000.00 the amount M Instructed P t piace on the space for Une aro. © H may colec from M 50,000.00, the amount actual, placed by F H may collect from A, 8 ot € 920,000.00 since they hat no knowiedge of the wrongful completion, 4 26. Abholder in due course isa holder who has taken the instr ‘ment under the following conditions Po notice of any infty im the instrument or dete! the title af the persun negotiating 8. Allef the above 2, A Placido, a bank depostr, left his checkbook ai his dest at his house. Unknown to him, 2 vita at the ti, noting Sama, look 2 chack therefrom, fild # #9 the amouat 3,000 and succeeded in erashing the check on the 0 ay. Placide' scours wine thetuby debite tke am amount. Discovering the erroneous eit, Placita demand that th ‘bank credit vim with like amount. The hank rehcet 0 ground that Flscda was negigenr in feaving his chests fn his desk so that ne could not put up the defense Fargesy of want of authority under te Negotiable Instrum La ‘The facts disclose that even to the naked eye, there: wer riarked differences between Pacida’s signature wd the one Inthe check forged by the visitor, As between Placid ans the bank, who shoule ear the loss? 3. The bank should bear the loss because tne bané vwarants the genuneness of the signature vf as carer? depositor The bank is no Hable because the sole cause of the In Is due to tre nagigence of Plarklo leaving | ‘checkbook on his desk at his house © Plachio must suffer the loss because he i nenligence keeping his check , Place should bear the toss because the bank eesti reasonable diigence In determining that the signet not forged,A bill of exchange has D as drawer, & as drawee and F as payee. The bill was then indorsed to G, G to H, end H to IL the current holder presented the bill to € for acceptance. & accepted but, as it later turned out, Dis 2 Ntitious person, Is E freed from liability? No, since by accepting, E admits the existence of the drawer. b. No, since by accepting, E warrants that he is solvent. Yes, if E was not aware of that fact at the time of acceptance, Yes, since a bill of exchange with a flettious drawer Is void and inexistent, Which of the following indorsers expressly warrants in Negotiating an instrument that 1) itis genvine and true; 2) he has a good title to it; 3) al prior parties have capacity to ‘Negotiate; and 4) i i valid and subsisting at the time of his Indorsement? 2, The ieguiar indorser, The regular indorser. G The general indorser 4. The qualified indorser. MH, the maker, issued a promissory note to f, the payee \which states: “Z, M, promise to pay P or order the amour of Phpt_Milion. “Signed, M.° negotiated the note oy Indorsement to W, then W to 0 also by indorsement, an O to Q, again by indorsement. But before O indorsed the rote to Q, O's wife wrote the figure "2" on the note after “Phpt* without O's knowledge, making it appear that the note is for Php12 Milian. For how much is © table to Q? 3. Php Millon since is the orginal tenor ofthe note , Phpt milion since he warrants that the note is genuine ‘and in all respects what it purports to be. © Phpl2 Nilion since he warrants his solvency and that he has a good tie ta the note Prpl2 Million since he warrants that the note is genuine and in all respects what i purports to be. ‘A moterial alteration of an instrument without the assent of all parties lable thereon results in its avoidance, EXCEPT against a 2. prior indorsee subsequent indorser b. subsequent acceptor 4. prior acceator, P sold to M 10 grams of shabu worth PhpS,000.00. As he had ‘No money at the time of the sale, M wrate a promissory nate promising to pay P or his order Pho5,000, P then ingorsee the note to x (who cid not know about the shabu}, and X to ¥. Unable to collect from P, Y then sued X-on the note. X set Lp the defense of legality of consideration. Is he correct? 2. No, since %, being a subsequent indorser, warrants that the note is Vaid and subsisting b. No, since X, a general indorser, warrants that the note is valid and subsisting. Yes nee veld contract doesnot ive ee to any ght. |) 4. Yes, since the note was born ef an illegal consideration which i @ real defense, X ts the holder of an instrument payable to him (X) or his fier, with Yas maker. X then indorsed it as. follows "Subject to no recourse, pay to Z. Signed, X." When Z went to caliect from ¥, it turned out that Y'S signature was forged. Z now sues X for collection, Will prosper? a. Yes, because X, as 2 conditional indorser, warrants that the note is genuine, } b. Yes, because X, as a qualifies indorser, warrants that the note is genuine. 6. No, because X made a qualified indorsement. No, because @ qualified indorsement daes not include the warranty of genuineness, 7. A bill of exchange has T for its dranee, U as drawer, and F as holder. when F went toT for presentment, F learned that Tis rly 15 years old. F wants to recover from U but the latter \woists that @ notice of dishonor must first be made, the ‘nstrument being a bill of exchange. Is he correet? 2 Yes; since @ notice of dishonor is essential to charging the caver ®% Na, since T can waive the requirement of notice of dishonor No, since F can treat U as maker T the drawee. Yes, since in a bill of exchange, notice of dishonor is at all times required Aue to the minority of 8. Any agreement binding upon the holder to extend the time of payment or to postpone the holder's right to enforce’ the Instrument results in the discharge of the party secondarily lable uniess made with the iatters consent. This agreement refers to one which the ho nade with the a. principal dedtor secondary creditor ©, principal creditor secondary debtor 3. Can a dromec who accepts a aatarialty altered cheek recover J 9m the holder and the draw. A. No, he cannot recaver fro ‘rom bath of therm “Yes but only from Yes but only trom \elther of them. 4 10. D draws @ bill of exchange that states: “One month fram date, pay to 6 oF his erder Php100,000.00. Signed, 0." The drawee ramed in the bil is E. 8 negotiated the Bil to M, M to N,N to 0, and 0 to P. Due to non-acceptance and’ after Proceedings for dishonor were made, P asked O to poy, ‘wivch O did, From whom may 0 recover? a. B, being the payee b. Ras indorser to 0 ©, being the drawer 4D, being the erawer X, drawee of 2 bill of exchanga, rate the words: "Accepted, with protnise to make payment within two days, Signed, X." ‘The drawer questioned the acceptance as mvalid. Is’ the ‘acceptance valid? 2. Yes, because the acceptance isin reality @ clear assent to the order of the drawer to pay. Yes, because the form of the acceptance is really Immaterial. © No, secause the acceptance must he a clear assent to he crder of the drawer to pay 4. No, because the dacument must not express that the ‘drowee wll perform bis promise within two days 42, Which ofthe following is not incuded as warranty of @ person ‘negotiating en instrument by delivery or by a cuailed cendorsenient? = That the instrument is genuine and in all respects what * purports to be b That he has ecod tie to it That all prior parties had capacky to contract {That the instrument +5 at the tie of his endorsement valle end subsisting 12, Marie makes 9 promissory note payable to bearer and deivers ine same to Polo, who nagotites It to Arman By song it without recourse. ifthe nete is dishonored in the hands of Arman due to insolvency of Marie. Arman cannot recover from Polido because the latter ‘does not warrant Marie's solvency. ‘Armen can recover from Palio because the letter Is secondary lable on the instrument as indorser& Arman can recover from warranty, 4 ‘Arman cannot recover trom Polido secause hie indorsement is conditional 14 sine a check amounting td 750,009.00 but vie is ane 25 he mae aye, He Keefe he es he f\ Boc3 he Seeay asi ee ne ese Ne A\ Me bank on negsstes 1 Renin gare o5 are 8; and have no toni a'thc er I Unastorsed comlcton by 3 ase fe trang, ich oft ooving Sateen ses 8° H'may enforce payne a the coe seh roerinwe sete ay ofr poyment of he heck agit 5 wheter Wisatolerh Goccoune oe & Himay ence payment fh heck spins 3 and wae a Ader ae oa Hi mar rt entre some of the Sack ait wecer iis shlirinaue case oh oa Pi GReKeS 2 promissory note for P10,000.00 payable to the Dider of P for merchandise to be delivered by P to him. b powever, was able to deliver to M merchandise Worth | P8.000 Go ony. Pindorsed en nate te aT 3, B toc, and Cton, 1. If His @ holder in due course, he can callect 20,000.00 from M, ML WH is nota holder in due course, he can collect 8,000.00 from H 2, Goth statements are tru, Both statement are false € Slatement is tue; Statement Is age, 6 Statement 1s false; Statement ite trae ‘6. Which isnot correct? The acceptor by acenting 2 negotiable instrument 3 Admits the existence of the payee and his capacty to G © endorse ‘Admits the existence of the drewer, the genuiness of his ‘lgnature and his authority te draw the instrument, © Admits the exstence ofthe enderser, the genuineness of bis signature and his authority to draw the iestroment, Admits that he will pay it according to the tenor of his acceptance, 19, The maker, by liabilities, except: Q) & teem to making the instrument, has the following ay the mstrument according to its tenor the admission of the existence ofthe payee the admission ofthe capacity of the payee fe indorse the instiument, 4. the admission of the right of the holder to enforce Payment of the instrument. 18. Any alteration which changes the following shall be deemed to be material, except a. The date b. The sum payable, either for principal or intenast & The time or place af payment 4. Mone of the above 19. The following are warranties of a qualtied endorser, excep: That the instrument is genuine and in all respects who Do, Bmore b. Thathe has a good ttle tot © That all oror parties and capacity to contract 4. None of the above Polido because of breach of 20, The following statement are 1 24, 2, 2 24 a 26, © He holds te in the warranties and admission Admit the existence of the payee and his capacity to Indorse 4H. That the instrument is at the time of indorsement valid {and subsisting IL. That all orior parties had capacity 20 contract NV, He engages that, on due presentment, it shall be accepted or paid, cr both, as the case may’ be, accerding to [ts tenor, and that ‘tit be dishonored and the necessary proceedings on disronar be duly taken, he wil Pay the amount thereof to the holder, or to any. Subsequent indorser who may ba compelled to pay te, Statement 1: The Drawer adit and warrant, Il and 1 Statement If: The General Indorser admit and warrant J, 1, Mi and ty 2. First statement ls tue; second statement i false. b. First statement i false, cacend statement is true © Both statements are true 4. Both statements are fas ‘The acceptor does nat warrants the: 3. Genuineness of drawers signature b, Existence ofthe payee © Due execution af te instrument 4. Capacity ofthe payee te indorse When negotiable instrument had deen dishonored by non= acceptance or nonpayment, cotice of dishonor must be given to the folowing, etherwise they are discharged a. Maker Drawee b braner d. Acceptor 2 person secondarily lable on the Instrument is discharged, except: 2. BY any act which discharged the instrument 5. By the intentional cancefanon of his signature by the holder © By val tender of payment made by a prior party 4. None af the above X obtains the signatuse of ¥ for autograph purpose. x writes 3 negotiable promissory note anave ¥'s signature. ‘The note 95 validly negotiated to 2 who is a holder in due course, ‘What kind of defense can avail gains? 2 Personal defense. Equtable defense bb. Real defense Qualified defense Marcelo makes 9 note payable to the order of Patrdie who Indorses it to alfonso. Fdel obtains possession of the nate froudulently, forges Aifonsa’s signature and invdorses It to Bartolome who in tum indorses it to Catalin. Tn Uns case, atalino can 2. Enforce the instrument against Marcelo and Patricio. Enforce the instrument against Alfonso, Enforce the instrument against Bartolome. di. Answer not alven. ‘The folowing, except one are the rights of a holder in due course, Which isthe exception? 3. ‘He may enforce payment of the instrument for the full amount thereof against all parties isle thereon, b. He may receive payment and af payment 1s in due course, the instrument 5 discharged, cublect to the same defense as 4. He may sue on tie instrument in his own name,i. C X executed 2 promissory nate in favor of ¥ by way of ‘accommodation. It says: "Pay to ¥ or order the amount of Php50,000.00. Signed, X." then indorsed the note to 2, and Z to T: When T sought collection trom Y, the latter countered 8s indorser that there should have been a presentment fist to the maker who dishonors it, 18 correct? 2. No, since Y is the real debtor and thus, there is no need for presentment for payment ond dishonor by the meer Yes, since es an indorser who Is secandariy lable, there ‘must first be presentment for payment and cishanar by the maker. © No, since the absolute rule is that there is no need for resentment for payment and dishonor to hols an Indorser liable, Yes, since the secondary lability of ¥ and Z would only anse after presentment for payment and dishonor by the maker. P authorized to sian a negotiable instrument In his (5%) hhame. tt reads: "Pay to B or order the sum of Pht milion, Signed, A (for and in behalf of F)." The Instrument. shows that it wes drawn on P, B then indorsed to C, © to 0, and D to E. E then treated it as a bill of exchange. ‘Is presentment for acceptance necessary in this ease? ‘2, No, since the cramer and drawee are the same person. b. No, since the bill is non-negotiable, the drawer. and ddrawee being the same person © Yes, since the bil is payable to order, presentment is required for acceptance, 9. Yes, In order to held all persons table on the bil signs @ promissory note payable to the order of P which is, blank as to amount. M delivers the nate to P with instruction {0 type the amount of P20,000,00 on the blank. P, however, {ypas the amount of P50.000.00, and negotistes the same to A, Ato B, B to C, and C to, a holder in due course. A. 8, C ‘and also H had nto knowledge of the wrongful completion of the blank. 3. -H may collect from M nothing because P violated M's instructions, b. H may collect from M P20,000.00 the amount ‘structed P to place on the space for the amount. © H may collect from M P50,000.00, the amount actually placed by P. 4. H moy collect from A, 8 or € P20,000.00 since they had no knowledge of the wrongful comaletion. The following are all requisites of an acceptance for honor choose the exception, 2. That the bill must have been previously dishonored by ‘hon acceptance oF protested for better security, >, That the bill is already overdue ©: That the acceptance for henar must be with the consent of the holder, 4d, That the acceptor for honor must not be a party already lable on the instrument. A stranger to the instrument makes a material alteration hanging the amount thereot tram P100,000 t> P400,000 this act is known a8 a. Forgery, bb Materal alteration & Spoliation 1. Allof the above Statement No.1 A check must be presented for payment within a reasonable time after its last negotiation Statement No. 2: A bill of exchange must be presented for Payment within a reasonable time after Its last negatiation. 3.” True, true False, true b. True, false d. False, false 2 8 eB 10, 8 A 12, 13 Dd Statement 1: A person cannot be convicted of a crime of BP 22 when the check is presented more than $0 days from the date of the check, Statement 2: Prejudice or damage to the complainant is not requisite for the conviction of a crime under BP "22 (Bouncing check 'aw, 3. Fist statement is second statement is false. i. First statement is false: second statement is rus, ©. Both statements are true 4. Both statements are raise. A general endorser is distinguished from the endorser in that general endorser 2. Mekes either a blank or special endorsement; ', _Indorses after its delivery to the payee. © IS table to the payee and subsequent parties unless he sighs for the accommodation of the payes, in which ease he is Fable only to all parties subsequent to him. 6. Answer not given Inveguiar Notice of dishonor Is not required fo be made in all cases. ‘One instance where such notice fs not necessary Is when tie indorser 's the one to whom the instrument suppose 80 be resented for payment The rationale tere if that: the Indorser 2. already knows of the dishonor and it makes no-sense to notify him of Is bound to make the acceptance in al cases. has no reason to expect the dishonor of the Instrument 4, must be made to account for all his actions. P authorized A to sign a bill of exchange in his (P's) name. ‘The bill reads: "Pay to B or order tha sum of Pipl millon Signed, 4 (for and in behalf of P).” The bill was drawn on P. B indorsed the bill tC, Cto D, and D to E. May € treat the bill 25 a promissory nate 2. No, because the instrument is payable to order and has been indorsed several times, b. Yes, because the drawer and drawee are one and the same person No, because the instrument isa bill af exchange. “d.Yes, because A was only an agent of P. Manager's check may be promissory note because The crawer and drawee are the same persons “The drasvee is fetitious “The instrument is ambiguous Allof the above treated and considered a A bill of exchange to which no document is attached when Presentment for payment of acceptance 's made a. Trade acceptant Bank aecoptance © Clean bill of exchange 3 Documentary bil of exchange In relation to checks and bil correct statement? 2. A bill may be dravn addressed to any person as drawee, bbut a check can only be addressed to a bank os drawee, B.A check is alvays payable on demand whereas a bill may be made payable “on demand or at a fixed or determinable future time. A check must be presented for payment within 2 reasonable time from Its date of issue, whereas 2 ill within a. reasonable time from the date of last negotiation 4. Where the check and the. bill of exchange are not presented for payment within 2 reesonable time es Stated in choice (c) the drawers are considered Sischarged absolutely, fof exchange, which Is not aG 1s, 16 vy. 18, 18, 20, 8 sng aistnction between acceptance for honor and ordinary ‘acceptance is that In aeceptance for honor, pratest isnot reetaced while in rdnary acceptance, there rust be previous protect, b. In acceptance for honor, the acceotor is the drones while In ordinary acceptance; the accantor must be a stranger to the bil In acceptance for honor, the consent of the holder is Fequired while in ordinary acceptance, such consent to rot required; 4. Answer nat given 2 A When negotiable instrument hhad been dishonored by non- ‘acceptance or nonpayment, ‘notice of disionor ust be given tothe folowing, otherwise they are clschargee. 2, ote © Srowee B 8 Drawer iho TD seperate paper atached to an instrument on which an Inorsamen or acceptance ofthe stant ih M2 oe s falls € enclosure b. Memorandum 4. attachment, 2" Ail of exchange may be drawn payable te the drawers on order, 25 |The acceptor for honor is only secondarily liable on the instrument a. Both are true Both are false No. Lis true; No, 2 fase No.1 false; No. 21s true ™ C 8 é Presentment for acceptance of a bill of exchange is nat necessary: a. Where the bil is payable after sit ‘Where the bill is crawn payable elsewhere than at the ‘residence or place of business of the craves © Where w is payabie at a certain number cf days after G 2s, date 4. -Ansi¥er nat given Jose Reyes signed a blank arty, left the check on to Later, Nazarene forced open the dour to Reyes stole ‘te blank check, 3 Dantes cannot enforce the check against Jose Reyes, who can raise the defense that the check was incomplete 27. and wot delivered, when only stolen and filed up by Nazareno >. Dantes ‘can enforce the check against Jose Reyes because Dantes Is presumed to be a hoider in dee © Dantes can enforce the check against Jose Reyes becouse Jose Reyes is presumed to be negligence sed therefore’ must suffer the loss, 4 Dantes cannct enforce the check against Jose Reyes bocause Jose Reyes can set up personal defence, 28. In this instrument a protest made by a notary Is needed E Instead of a simple notice of dishonor. 2. Inland bil of exchange . Foreign bill of exchange © Travelers check 4. Promissory note 2s, A A executed 2 bit of exchange in favor of 8 for P10,000. 8, altered the amount te P100,000 and presented the Sil {6 C, the rawee who accepted the bil, Theranfer the bil ase ‘negotiated by € to B. Which is corel? 2 The drawee is able yp :> 910,000 ony by The erewee isnot labs because ofthe alteration The drawee i lable oniy up to PL0,000 except fDi a holder in due course 'n which case A is lble pte 00,000 ¢ by accepting the bill's table according tothe ‘enor of his acceptance, that is 106,000, Zhe crime of BP 22 or the bouncing check law which penalize the act of ‘making or drawing and issuing "9 check wehoot sufficient rund or ere i 3. Malm in se . Malum prohibium Nether Matum in se nor Melum protibitum 4. Both Malum in se and Hskum prehibtum ‘Skatement lo. 1: 4 check must be presented for payment Within reasonable time after its last negotiation, ‘Sitement No. 2: 4 bil of exchange must be presented for payment withiv a reasonable time after its last aegot ation, a. Tue, true ©. Fase, tue b. True, alee 6. False, false Protest is not necessary Upon dishonor by mon-acceptance of @ foreign il appearing an its face to be such, b. Upon dishonor by’ nos-paymicnt appearing on its face to be sue, it nok having beer Previously dlshoncred by non-aeceptancey, In cases of inland bills and! promissory nates 4. Answer net aiven, of a toraian bi Which ofthe following does 2. Payment in due course by the accammodated party . Intentional cancelation of tie instrument Dy the Nelder © When the principal debtor becomes the halter in hie oom ‘ight before maturity \ discharge the instrument? 4. Payment in due cours by or on behalf of the prindpal siebtor A party secondarily Habla is eischarged thraugh any of the following means, except by th ‘a. intentional cancellation of discharge ofa prior sarty release of the principal dedtor. extension of the time of payment whichis assented to by Siich party secondarily liable his stature by the noir: Which of the following alteration fs not material? 3 An alteration which changes the medium or currency which payment is to be made b. An alteration whien ade a lace of payment is spree An alteration which postpones the time of payment 4: an alteration which substitutes the words "or bearer” for the words "or erger None of the above lace of payment where no Which of these isa party primarily hie on the instrument? 2. Drawer Indorser © Acceptor for honor &. All of the above © None of thar Ir the drawee destroys te bill 2, The bilis considered gcceptes . The bil is considered dishonored “the ills discharged, the bill is cancelled