SEC.

1 Form of Negotiable Instruments/ Requisites

• It must be on writing and signed by the maker or drawer
• Must contain an unconditional promise or order to pay a sum certain in money
• Must be payable in demand, or at fixed or determinable future time
• Must be payable to order or to bearer
• When instrument is addressed to drawee, he must be named or otherwise indicated with reasonable
certainty
 
It must be on writing
 Ink, print or pencil
 Paper, parchment or any substitute of paper that is movable in nature/can be passed from one
hand to another
 NO ORAL PROMISE- it would be difficult to determine liability and it could create danger of
fraud (deceiving)
Signed by the maker or drawer
 The instrument must be signed by the maker/drawer
 Full name, first name, initials only as long as it was intended as his/her signature
 Handwritten, engraved, stamped or printed
 Gen. Rule: lower right hand but it can be anywhere on the face of the instrument
 If signature is unclear or the intention of the one who signed it, HE MIGHT BE AN INDORSER
 If signature is denied, he must present evidence of signature invalidity