FINAL EXAMINATION

COMMERCIAL LAW I
School of Law
Andres Bonifacio College
February 2, 2023

INSTRUCTIONS: The examinee must read the items or questions carefully

before answering. A mere Yes or No answer to the problems without any
explanation will not be given any credit.

The examination shall be from 7:30 o’clock to 9:00 o’clock in the evening
(today). The answers should be sent electronically to this email address:
jameslaw04@yahoo.com. The examinee must indicate his or her name for
purposes of identification.

Answers transmitted after the cut-off time will not be accepted or honored.

1. What is negotiable instrument? (5 points)

2. State the common forms of negotiable instruments. Define each. (10

points)

3. What are the requirements to make an instrument negotiable? (5

points)

4. A document, dated July 15, 2021, reads: “Pay to Joe or order the
sum of P 5,000.00 five days after his pet dog, Donald dies. Signed
Putin.” Is it a negotiable instrument? (10 points)

5. Can a bill of exchange or a promissory note qualify as a negotiable

instrument if- (a) it is not dated; or (b) the day and the month, but
not the year of its maturity, is given; or (c) it is payable to “cash”; or
(d) it names two alternative drawees. (10 points)

Page 1 of 2
6. Bee Bee Em signs a promissory note payable to Sara or bearer, and
delivers it personally to Sara. The latter somehow misplaces the said
note and Miguel finds the note lying around the corridor of the
building. Miguel endorses the promissory note to Jose for value by
forging the signature of Sara. My Jose hold Bee Bee Em liable on the
note? (10 points)

7. PN makes a promissory note for P 5,000.00 but leaves the name of

the payee in the blank because he wanted to verify its correct
spelling first. He mindlessly left the note on top of his desk at the end
of the workday. When he returned the following morning, the note
was missing. It turned up later when X presented it to PN for
payment. Before X, T, who turned out to have filched the note from
PN’s office, had endorsed the note after inserting his own name in
the blank space as the payee. PN dishonored the note contending
that he did not authorize its completion and delivery. But X said he
had no participation in, or knowledge about, the pilferage and
alteration of the note and therefore he enjoys the rights of a holder
in due course under the Negotiable Instruments Law. Who is correct
and why? (10 points)

8. When is a holder of an instrument a holder in due course. (5 points)

9. What constitutes notice of defect? Discuss briefly (5 points)

10. Draft sample forms of a negotiable promissory note and a bill of

exchange. (10 points)

GOOD LUCK!!!

Page 2 of 2