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a. Joey cannot be liable to Dondy.

b. Romel was a holder for value. Answer: d. Incomplete and undelivered instrument. It is a real defense
c. Romel should be liable to Dondy. available against any holder, whether holder in due course.
d. If Dondy is a holder in due course, Joey can be held liable to Dondy.

Answer: b. Romel was a holder for value. Love and affection does not 11. These stamen are presented to you:
constitute value.
A) Minority is a real defense available against a holder in due course.
B) Prior parties of a minor indorser can set-up minority as a defense
8. Which of the following is not a right of a holder in due course? against a holder in due course.

a. He can hold the instrument free from defect of title of prior parties. a. Both statements are true.
b. He can hold the instrument free from personal defenses. b. Both statements are false.
c. He can hold the instrument free from real defenses. c. Only statement A is true.
d. He can enforce payment of the instrument for the full amount thereof d. Only statement B is false.
against all parties liable thereon.
Answer: a. Both statements are true. Minority as a defense passes to the
Answer: c. He can hold the instrument free from real defenses. A Real minor. On the minor can avail of said defense.
defense is available even against a holder in due course.

12. Gloria makes a promissory note for Three Million to the order of
9. Amer made a promissory note indicating that Nassief is the maker and is Benigno. To secure benigno’s debt to Mar of Two million, he pledges the
payable to order of Amer. Amer forges Nassief’s signature. Amer nore to Mar as a security.
indorses the note to Norsad and Norsad to Ahmed, the present holder.
A) Mar may recover Three Million, holding the surplus One million for
a. Whether Ahmed is a holder in due course or not, he cannot collect to Benigno, if the note matured.
Nassief. B) If Gloria has defense of failure of consideration against Benigno,
b. Whether Ahmed is a holder in due course or not, he can collect to Mar can collect Two Million if he is a holder in due course.
Nassief.
c. Whether Ahmed is a holder in due course or not, he can collect to Amer. a. Both statements are true.
d. Ahmed can collect to Nassief, provided he is a holder in due course. b. Both statements are false.
c. Only statement A is true.
Answer: d. Ahmed can collect to Nassief, provided he is a holder in due d. Only statement B is false.
course. Forgery is a real defense which is available even against a holder in due
course. Answer: a. Both statements are true. Mar is deemed a holder for value to the
extent of his lien.

10. Which is available against any holder?

13. A) A payee may be a holder in due course.
a. Failure or absence of consideration. B) A drawee may be a holder in due course.
b. Complete but undelivered instrument.
c. Incomplete but delivered instrument. a. Both statements are true.
d. Incomplete and undelivered instrument. b. Both statements are false.