Sec 5.

Additional provisions not affecting

negotiability.

Acts in addition to payment of money

(1) General rule
Instrument is non-negotiable if it
contains a promise or order to do any
act in addition to the payment of money.

(2) Exceptions
a) Sale of collateral securities
*adds to the marketability or
acceptability of the instrument in
commerce as a substitute for money
or as a credit instrument.
b) Confession of judgement
It is a written acknowledgement by
the defendant of his indebtedness or
liability to the plaintiff.
A confession of judgment given after
the action is brought to save
expenses is valid.
c) Waiver of benefit granted by law
d) Election of holder to require some
other act.

(a) It is not dated; or

(b) Does not specify the value given, or
that any value has been given
therefor; or
(c) Does not specify the place where it is
drawn or the place where it is
payable; or
(d) Bears a seal; or
(e) Designates a particular kind of
current money in which payment is to
be made.

Effect of omission of date

(1) Date of instrument generally not
necessary
*omission of the date will not make the
instrument non-negotiable
(2) When date necessary
(a) Date is tied to the date of issue, an
undated note
(b) Interest is stipulated for the purpose
of determining when interest is to run
(c) Promissory note date of issue
Bill of exchange date of last
negotiation
*for the purpose of determining whether
a party acted within a reasonable time in
making presentment for payment.

(3) Date stated not in calender

Law will deem the nearest date of the
month the date intended.

Effect of omission of value

value received not necessary because
consideration is presumed
Effect of omission of place
Sec 6. Omissions; seal; particular money.
The validity and negotiable character of an
instrument are not affected by the fact that

*does not specify the place of payment

presumed to be payable at the place of
residence or business of the maker or drawer

Effect of presence of seal

(1) Instrument bears a seal does not
destroy its negotiability.
(2) Advisable to have a bill or note appear
in a public instrument.

Effect of designation of particular kind of

current money payable
The law does not require that payment should
be made in legal tender.
It includes any particular kind of current money
or foreign money which has fixed value in
relation to our money.

Sec 11. Date, presumption as to.

Presumption as to date
Instrument bears a date presumed that it is
the date when it was made by the maker,
drawn by drawer, accepted by drawee, or
indorsed by payee or holder.

Date in instrument payable at a fixed future

date
Date not essential in negotiability when
instruments
(a) Payable at a fixed future date and
(b) Which do not stipulate for the payment
of interest

Date in instrument payable on demand

*need not be dated since it is demandable at
any time
(1) Date of issue or last negotiation
Promissory note must be presented
for payment within reasonable time after
its issue
Bill of exchange within reasonable
time after the last negotiation thereof
(2) Importance of the date
For the purpose of determining whether
a party has acted within reasonable
time.

Sec 12. Ante-dated and post-dated.

(1) Ante-dated when it contains a date
earlier than the true date of its issuance
(2) Post-dated when it contains a date
later than the true date of issuance
Effect of ante-dating & post-dating
(1) Generally not invalid or nonnegotiable, may be negotiated before or
after the date given as long as it is not
negotiated after its maturity.
(2) If done for an illegal or fraudulent
purpose - it is rendered invalid

Sec 13. When date may be inserted.

When date is necessary

(a) Where instrument is payable at a
fixed period after date.
(b) Where instrument is payable at a
fixed
period
after
sight
or
presentment.

When date may be inserted

(1) Two cases

(a) Where an instrument is payable at a

fixed period after date but is issued
undated; and
(b) Where an instrument is payable at a
fixed period after sight but the
acceptance is undated; and

(2) Date of issue or acceptance to be

specified
The reason is that unless the true date
is inserted, one will not know when the
instrument will be due.
(3) Application to other cases

Effect of insertion of wrong date

(1) As to holder with knowledge will
avoid the instrument as to him but not
as to a subsequent holder in due course
who
may
enforce
the
same
notwithstanding the improper date.
(2) As to subsequent holder in due
course even if wrong, is to be
regarded as the true date