Midterm Examination on NEGOTIABLE INSTRUMENT

Instruction: Write your correct answers. Please submit and send your answers on February 5, 2011 to talulot162004@yahoo.com until 11:59 p.m. Send this as an attached document. God bless. I. Enumerate and Define 1. Give the characteristics of Negotiability. 2. Give the reason why the instruments below are non-negotiable a. Letters of credit b. Treasury warrants c. Warehouse receipts d. Postal Money Order 3. What is Section 1 of the Negotiable Instrument Law? 4. The Negotiable Instruments Law govern three kinds of negotiable instruments. What are they 5. What is signature by procuration? 6. What is a promissory note? 7. What is a holder in due course? 8. What is fraud in factum? 9. What is a check? 10.What is a bill of exchange? 11.What is a negotiable instrument? 12.Give the persons who are liable still even if their signature do not appear on the instrument. 13.Who are the persons precluded to set up the defense of forgery? 14.Who is a maker? Life does not begin and end within the confines of a classroom. It begins outside, so breathe and enjoy life—prinsesa talulot

15.Who is a forger? II. True or False (Write True if the statement is true and false if it is false) 1. In order that an instrument is negotiable, the payment must be made in money. 2. Where the drawer’s signature is forged, the drawer shall bear the loss. 3. In the hands of a holder in due course, an incomplete and undelivered instrument cannot be avoided. 4. A negotiable instrument is ineffectual until delivery is made. 5. The instrument is still valid despite a forgery on the payee’s signature was done. 6. The instrument where a minor signs as drawer can still be negotiated. 7. The agent is not liable in the instrument if he discloses the name of the principal and he signs in behalf of the latter. 8. The forger is liable on the instrument even if his signature does not appear on the instrument. 9. In the hands of a holder who is not a holder in due course, delivery is conclusively presumed. 10. An indorser’s signature is still necessary to negotiate a bearer instrument. 11.Certified Time Deposits are negotiable. 12. The instrument is payable to bearer, if it expressed to be so payable. 13.Generally, the drawee bank bears the loss in case of forgery on the drawer’s signature. 14.Generally, a person whose signature does not appear on the instrument is not liable. 15.If an incomplete but delivered instrument is in the hands of a holder in due course, it is valid and effectual for all purpose as though it was filled up strictly in accordance with the authority given and within a reasonable time. III. Negotiable or not, Why? (Identify if the following instruments are negotiable or not and the reason behind your answers)

Life does not begin and end within the confines of a classroom. It begins outside, so breathe and enjoy life—prinsesa talulot

1.

March 20, 2010

I promise to pay B Php 1, 000 with 12% interest per annum.

Signed A.

2. Feb. 2, 2012 Pay to A Php 1, 000 on the above-stated date. Sgd B To: D 3. I promise to pay Redanto one kilo of sugar. Sgd Hermie 4. Pay to Superman Php 1, 0000 To: Maritess 5. Pay to cash the sum of PHP 3,000 Sgd. Rebecca To: RJ IV. Problem solving Sgd. Irene

Eric, the maker, executed a promissory note which reads,

I promise to pay Irene the sum of Php 1million. Life does not begin and end within the confines of a classroom. It begins outside, so breathe and enjoy life—prinsesa talulot

SGD.___________ He was a busy man so he forgot the note and put it inside his drawer. His secretary, Maritess, suddenly found it, signed the instrument using Eric’s signature and negotiated the instrument to Christopher, then to Allan and to Pokwang. Pokwang is a holder in due course. Can Eric be held liable on the instrument? This instrument is incomplete and undelivered.

Bonus question: What is your law teacher’s pen name?  -Enjoy-

Life does not begin and end within the confines of a classroom. It begins outside, so breathe and enjoy life—prinsesa talulot

Sign up to vote on this title
UsefulNot useful