Estrada. Alaiza B.

BSBA FM 3E

Negotiable Instrument, one of the oldest law in our country, and it’s found in the Act. No. 2031 and
become a law on February 3, 1911. Where it is a standard requirements for owners in an apartment,
condo particularly regarding postdated cheques and negotiable instruments , There is also negotiable
and non-negotiable instruments, when an instrument is negotiable it can be transferred to another
person through a deed of assignment itself. For example is the promissory note that according to section
one of the negotiable law, negotiable promissory note is an unconditional promise to pay as a certain in
money and it should be in writing and signed by the maker of the promise. Where it can be written
anywhere as long as it is with signature, when in writing all signature’s that is documented in your id are
also the same. While the non-negotiable is that, it may be transferred to another person. Using another
instrument, it can be transferred to another person through a deed of assignment or deed of transfer or
other deeds that convey effective ownership. And in the video also mentioned the two types of
negotiable instrument these are the negotiable promissory notes were mentioned where above and
negotiable bills of exchange

And it also mentioned bill of exchange were the drawer or the person who makes the order to pay the
drawee is the recipient of this order, where the person who’s commanded to make a payment must be
named in the note or be determined. And addition to that non bill of exchange is not valid if he or she is
not named with the reason of certainty. In the cheque where it is a special type of bill of exchange, and
contains elements such as account name, issuer, payee and the amount these elements can determine
whether is cheque is a bill of exchange. This reveals the aim of the student to be educated about the
fundamental principle and elements of negotiable instruments and emphasizes the importance of clarity
and certainty of paying or in terms of payment. It also classifies the differentiation between negotiable
and non-negotiable instruments and the role of ownership and rights.

The information provided in the video sheds an important aspect of financial transactions and
understanding the requirements and characteristics of negotiable instrument from individual, real
estate and ownership. And by emphasizing the importance of written and signed documents for
transparency to protect the right of both parties involved, while the negotiable and non- negotiable
refined the transferability and enforceability of different financial instruments. It value the aspects of
highlighting the importance of financial transactions confidently and protect their rights as owners and
payees.

While the Act. No. 2031 of Negotiable Instruments law, specifically 1 to 198, appears to be
comprehensive and large scale of legal framework governing negotiable instruments. The complete
sections indicate the complexity and depth of the law, as a student it is challenging and require amount
of time and effort to understand and analyze each sections were mentioned. It highlight the consistency
and predictability in commercial practices making it knowledgeable for parties to engage in different
transaction and legal jurisdiction system. Each sections also cover various aspects such as the
endorsement, negotiation, enforcement and negotiation which the law establish rules and requirements
to show fairness in commercial transactions all throughout. The basis for the Negotiable Instrument lies
in establishing a legal framework that facilitates the commerce and contribute functioning financial
transactions and build trust and confidence in commercial dealings.
Also to establish harmony and uniformity in treatment and the interpretation to enforced it across the
different jurisdiction and promotes international trade and commerce, ensuring the negotiable
instruments are recognized and legally binding. And set legal requirements to ensure the safeguards the
rights of the holders, maker, payee and the indorsers. And provides solutions and legal recourse in case
of disputes, non-payment, or fraudulent activities related to negotiable instruments. The predictability
in commercial transaction by defining the rights, obligations, and responsibilities if the parties involved.

In conclusion, the Negotiable Instruments law serves a vital legal framework that govern negotiable
instruments, such as promissory note, bill of exchange, and checks that provides comprehensive set of
rules and regulations that guide and facilitate and promoting economic activity and providing reliable
method of interpretation of legal validity and establish criteria for instruments such as being signed, and
contain unconditional promise. Also the compliance with provisions are essential to recognize the
different jurisdiction of trade and commerce.