3rd requirement for an instrument to become
negotiable.
Must be payable on Demand or a fixed or
determinable future time.
Instrument Payable on Demand
Pay to the order of X, P10,000
Sgn. A
Reason: Par. 2 of Sec 7. Since there is no time for the
payment to be made, it is a demand instrument.
August 20, 2018
Pay to the order of X, P10,000
Sgn. A
Reason: Since the date has already lapsed, it is
considered as overdue, under 2nd par. Of Sec.7, when
the maker issues an instrument which is overdue, it
is considered as payable on demand.
*Even if it is subsequently indorsed to another, it is
still considered to be a demand instrument since the
instrument is overdue
Instrument Payable at fixed period after date.
Pay to the order of X, P10,000, 30
days after.
Sgn. A
*The date may not be indicated in the body already
since there is the date when it was issued and since
there is a presumption that the date being referred
is the date of issuance.
*If what is referred as the time of payment is
Christmas, it is considered as a fixed period because
it is common knowledge that Christmas happens on
December 25.
Instrument Payable after sight
To B
Pay to the order of X, the amount of
P10,000 30 days after sight.
Sgn. A
*This only applies to Bills of Exchange
*The acceptor after sight, may decide whether to
accept the instrument or not
*After acceptance, the drawee will be liable to the
payee
*He must indicate the date when the instrument
was accepted so that the parties will be able to know
when the instrument will be due
Instrument Payable on or before a fixed time.
I promise to pay X, P10,000, on or
before December 25,2018
Sgn. A
Instrument Payable ON or BEFORE a determinable
future time
I promise to pay X, P10,000 on or 10
days before Christmas of 2018
Sgn. A
*Start of classes of USC Law Academic 2019-2020
cannot be considered as a determinable future time
since this would be considered conditional as such
event may or may not happen.
Determinable Future Time- One that requires the
person to compute or solve.
** Example in the book of De Leon is incorrect
Instrument payable ON or AFTER a fixed period
which is certain to happen
I promise to pay X, P10,000 on or
After the death of his mother
Sgn. A
*Not negotiable if it is on or before the happening of
the fixed period which is certain to happen.
Otherwise, the holder will never know when the
instrument will be due.
*Even if the period happens, if it is payable on or
before such period, it will not cure the defect.
Otherwise, it will always make the instrument
payable after it is overdue.
4th requirement for an instrument to be negotiable. Payable to the order of the maker

Must be payable to order or bearer

I promise to pay to the order of myself, the
amount of P10,000.
2 forms: Sgn. A
1. Payable to the order of a specified
2. Payable to him or his order
End
Instrument Payable to the order of a specified
person

I promise to pay P3,000,000 to the

order of X.
Sgn. A

*If it is payable to a specified person, it is not

negotiable.

Instrument Payable to a specified person or his

order

I promise to pay X, the amount of

P3,000,000 or to his order.
Sgn. A

Sec 8. Paragraphs A-F

Payable to the order of a payee who is not a maker

I promise to pay to the order of B, the

amount of P10,000
Sgn. A

Payable to the order of a payee who is not a drawer

or drawee

To C
Pay to the order of B, the amount of P10,000
Sgn. A

Payable to the order of drawer

To C
Pay to the order of myself, the amount of
P10,000
Sgn. A