JERICKSON A.

REYES
Assignment No. 12
1a.
A commercial transaction is one that involves the exchange of goods, services, or money
between two or more parties with the primary intent of generating a profit or achieving a
commercial benefit.
1b.
No, it's not always necessary for at least one party to be a merchant to consider a
transaction commercial. The absence of merchants does not necessarily negate the
commercial nature of a transaction if it meets the criteria of being conducted for profit or
commercial benefit.
2.
Negotiable instruments have requisites of Sec. 1 of the Negotiable Instrument Law (NIL)
whereby a holder of this instrument have right of recourse against intermediate parties
who are secondarily liable, Holder in due course may have rights better than transferor,
its subject is money and the Instrument itself is property of value. On the other hand,
negotiable document does not contain requisites of Sec. 1 of NIL, it has no secondary
liability of intermediate parties, transferee merely steps into the shoes of the transferor,
its subject are goods and the instrument is merely evidence of title; thing of value are the
goods mentioned in the document.
3i.
Postal money orders are non-negotiable as it is governed by postal rules and regulation
which may be inconsistent with the NIL and it can only be negotiated once.
3ii.
Letters of credit are non-negotiable because it is not for a sum certain in money and is not
payable to order or to bearer but is issued in the name of a specified person.
3iii.
Warehouse receipts are non-negotiable for the same as Bill of Lading it merely represents
good, not money.
3iv.
Treasury warrants payable from a specific fund are non-negotiable for being payable out
of a particular fund.