LICEL M.

MONTILLA
Law 222 – Negotiable Instruments
Seatwork 2

1. The instrument in the example is non-negotiable. It is because provided in Section 1(d) of Act No.
2031, that for an instrument to be considered negotiable, it must be payable to order or to bearer.
In the example given, the instrument just stated “Pay to Jose”, which is incorrect. The words to be
used should be, "to the order of," "or order," "to bearer," or "or bearer", because, these words
constitute an express indication of consent that allows the negotiability of an instrument. These
terms articulate the implicit agreement permitting the instrument's transfer in accordance with the
direction of the payee, thereby facilitating its successive negotiation. In the given example, the
instrument is payable to a person named Jose, without any express indication of consent to be
payable to bearer or order. Thus, the absence of said requisite renders the instrument non-
negotiable.

2. The instrument in the example given is negotiable. Section 8 of Act No. 2031 provides for the
requisites when an instrument be payable to order and to whom specifically the instrument may be
drawn payable to the order of. In the example given, the instrument expressly states that it may be
drawn payable to the order of a specific person named Jose, hence, the instrument is negotiable.

3. The instrument is negotiable. According to Section 8 of Act No. 2031, the instrument is payable to
order where it is drawn payable to the order of a specified person or to him or his order. The
example given which says “Pay to Jose or his order” is an example to the second category of the
aforementioned statute, that is, payable to a specific individual or his order. Consequently, since
the instrument stipulates that payment may be rendered to Jose or his order, makes the
instrument negotiable.

4. c The instrument in the given example used a common clause in negotiable instruments that
enables payments an fund transfers between parties through indorsement. It meets the criteria of
Section 8 for an instrument to be considered payable to order, therefore, it is negotiable.

5. The instrument in the example is a negotiable one. Stated in Section 8(f) of Act No. 2031, that a
negotiable instrument may be drawn payable to the order of the holder of an office for the time
being. The instrument in the given example says “Pay to the order of the administrator of Jose”,
which is an example to the aforesaid provision of Act No. 2031, and for that reason, it causes the
instrument to be a negotiable one.

6. The instrument in the example is negotiable. As provided in Section 8(c) of Act No. 2031, that a
negotiable instrument may be drawn payable to the order of the drawee, himself. In the given
example, with the drawee also serving as the payee, the drawee is entitled to pay himself upon
the instrument's maturity using the drawer's funds in his custody. Therefore, the instrument
qualifies as a negotiable instrument.

7. The instrument in the example is negotiable. Section 9(a) of Act No. 2031 states that, the
instrument is payable to bearer when it is expressed to be so payable. Under the given provision
of the aforesaid law, the instrument clearly states that it is payable to the bearer, who is defined as
the individual possessing a bill or note made out to bearer. Consequently, it is evident that the
instrument is a negotiable one.

8. The instrument in the example is non-negotiable. Section 9 of Act No. 2031 provides for the
instances when an instrument is payable to bearer, for it to be negotiable. The instrument made
payable to "bearer, Jose" is not deemed negotiable, as the term bearer in this context simply
describes Jose and does not contain the necessary language of negotiability. This language would
indicate a consent that the instrument can be transferred by negotiation. The instrument’s non-
compliance to the aforementioned provision makes it non-negotiable.

9. The instrument in the example is a negotiable one. According to Section 9(b) of Act No. 2031, the
instrument is payable to bearer when it is payable to a person named therein or bearer. The
instrument clearly states, “Pay to Jose or bearer”, which falls within the aforesaid provision. Thus,
based on Section 9(b) of Act No. 2031, this instrument is negotiable.
10. The instrument given in the example is negotiable. It is for the reason that provided in Section 9(c)
of Act No. 2031 that, the instrument is payable to bearer when it is payable to the order of a
fictitious or non-existing person, and such fact was known to the person making it so payable.
When the named payee on an instrument is non-existent, indorsement is indeed impossible. In
such cases, it can be inferred that the drawer's intention is to make the instrument negotiable by
delivery, effectively treating it as bearer paper. Hence, the instrument is considered a negotiable
one.

11. The instrument in the example is non-negotiable. Section 1(d) of Act No. 2031 states that, an
instrument to be negotiable must be payable to order or to bearer. Correct, the phrases "to the
order of,” “or order,” “to bearer,” or “or bearer” are recognized as terms that indicate negotiability in
an instrument. These expressions signify that the instrument can be transferred to whomever the
payee designates, facilitating its negotiation. If the instrument in question does not include
language stating that it is payable "to order" or "to bearer," it does not conform to the standard
criteria for negotiability. When the transferability is limited to a specific entity that does not exist,
like the Prince of Mars, the document does not meet the requirements to be viewed as negotiable.
Thus, lacking the characteristic words of negotiation, the instrument cannot be negotiated and is,
therefore, non-negotiable.

12. The instrument in the example is negotiable. As what Section 9(d) of Act No. 2031 provides, an
instrument to be negotiable must be payable to order or to bearer. The instrument in question
does not explicitly name a particular payee. By issuing the instrument to a non-specific payee, the
issuer manifests an intention for it to be payable to the bearer, thus aligning with the stipulations
outlined under the aforementioned provision, this renders the instrument to be negotiable.

13. The instrument in the example is negotiable. Section 9(d) of Act No. 2031 provides that, an
instrument to be negotiable must be payable to order or to bearer. The instrument in the example
given, fails to designate a specific payee, instead, listing “money” as the payee. Given that
endorsement by such an impersonal payee is unfeasible, this characteristic implies that the
involved parties intended the instrument to be payable to the bearer, rendering it negotiable under
the relevant provision priorly mentioned.

14. The instrument in the example is a negotiable one. According to what Section 8(d) of Act No. 2031
provides, the instrument is payable to order where it is drawn payable to the order of a specified
person or to him or his order. It may be drawn payable to the order of two or more payees jointly.
The instrument given in the example, being payable to the order of both Ben and Ana, does not
affect its negotiability. Despite the multiple payees, the instrument's negotiable status is preserved.

15. The instrument is negotiable. Stated in Section 5(d) of Act No. 2031, an instrument which contains
an order or promise to do any act in addition to the payment of money is not negotiable. But the
negotiable character of an instrument otherwise negotiable is not affected by a provision which
gives the holder an election to require something to be done in lieu of payment of money. In the
given example, the option to choose lies with Ben whether to receive P15,000.00 or to deliver the
maker of the instrument a horse in lieu of payment of money. However, if the option lies upon the
maker or drawer, it would render the instrument non-negotiable for violating the principle of
mutuality of contract. For the reason that the instrument given in the example complies with the
aforementioned provision, this would constitute the instrument to be negotiable.