Professional Documents
Culture Documents
BL - Negotiable Instruments PDF
BL - Negotiable Instruments PDF
a. “Pay to bearer Jose Cruz P 10,000 upon demand”, signed by A and addressed to B
b. “Pay to Jose Cruz or bearer P 10,000 upon demand”, signed by A and addressed to B
c. “I oblige myself to pay Pedro Reyes or order P 3,000 ten days after day signed by M as
maker.
d. “Good to L or order P 5,000 July 1, 2009 signed by M as maker
a. “ I promise to pay Jose Cruz or order P 10,000 or deliver 1 cow 20 days after date at
the option of the holder” signed by M as maker
b. “Pay to Pedro Reyes or bearer P 10,000 or deliver 1 cow on 4-4-10 at the option of the
drawee”, signed by A and addressed to B
c. “Pay to Pedro C. Cruz or order P 5,000 out of fund I deposited with you” signed by A
and addressed to B
d. I promise to pay K. KHO or order P 10,000 in 5 installments, first installment August
1, 2009 and every month thereafter, signed by M as maker
a, Issue c. Preparation
b. notice of dishonor d. Negotiation
7. Which of the following is negotiable?
a. issue
b. indorsement plus delivery
c. delivery
d. none of them
10. This indorsement constitutes the indorser as a mere assignor of the title of the
instrument:
a. Special c. qualified
b. Blank d. restrictive
11. The following are requisites in order that a person can be considered a holder in due
course; except
13. Real defenses are those that attached to the instrument itself and can be set up even
against holder in due course. Which of the following is not considered real defense?
a. fraud in factum c. absence or failure of consideration
b. forgery d. minority
14. The existence of the payee and his then capacity to indorse is a warranty of:
a. Maker c. drawer
b. Indorser d. person negotiating by mere delivery
20. A check is not presented for payment within a reasonable length of time after issue is
called
a. certified c. memorandum
b. Stale d. crossed
21. Signification by the drawee of his assent to comply with the order of the drawer is:
a. Indorsement c acceptance
b. delivery d. presentment for acceptance
26. I promise to pay Jose Reyes or order P 10,000 ten days after the date signed by M as
maker. The note is undated. Which of the following is correct?
27. The negotiable promissory note signed by M as maker for P 10,000 is payable to Jose
Cruz or bearer on May 10, 2009. M however issued the note to the payee May 15, 2009.
In this case:
a. The instrument is considered non-negotiable because the date of issue is later than the
date of payment.
b. Cruz can ask for payment at anytime
c. Cruz can require payments only on May 15, 2009
d. Cruz cannot negotiate the note
28. “Pay to Maria or order P 20,000 upon demand”, signed by A as drawer and addressed
to B. Maria negotiated the bill to C, C to D, E stole the bill from D and indorsed it to F by
forging the signature of D. F in turn indorsed the bill to G & G to H. Which of the
following is false?
29. M is the maker of a note payable to J. Cruz or order for P 5,000 due July 30, 2009.
Cruz borrowed P 2,000 from C payable July 31, 2009 and pledged the note by indorsing
it to C. Which of the following is correct?
31. M is the maker of a note, payable to C or order for P 10,000. C negotiated the note to
D, D to E, E to F, F to G and G to H. M dishonored the note when presented by H for
payment. H gave notice of dishonor to F. Which of the following is true.
32. “ Pay to Pedro Reyes or order P 20,000 ten days after sight
SIGNED
By A drawer as agent of B
To: B
Pedro Reyes negotiated the bill to C, C to D and D to E. B dishonored the bill by non
payment. E gave notice of dishonor to all prior parties except B. Which of the following
is not correct?
33. M signed a promissory note payable to C or order for P 5,000 ten days after date. C
indorsed the note to D, D to E and E to F. F, without authority from the prior parties,
altered the amount to P 15,000 then indorsed the note to G.
34. Drawer A addressed a bill to B for P 20,000 payable to C or order 20 days after
acceptance. B made a conditional acceptance in this case:
35.M is the maker of a note for P 30,000 payable to C or bearer. C negotiated the note to
D, D to E, E to F and F to M. Which is correct?
36. Drawer A addressed a bill to B payable to C or bearer for P 60,000 upon demand. C
negotiated the note to D, D to E, E to F and F to G. Upon proper presentment, B paid the
bill. Which of the following is true?
1. a
2. a
3. a
4. a
5.d
6.d
7. d
8. d
9d
10. c
11. d
12. a
13. c
14. d
15. d
16. d
17. d
18. d
19. a
20. b
21. c
22. d
23. b
24. d
25. c
26. b
27. b
28. b
29. c
30. b
31. c
32. b
33. c
34. b
35. a