MIDTERM EXAMINATION 2014

NEGOTIABLE INSTRUMENTS LAW

HAND IN YOUR BLUEBOOKLET WITH THIS QUESTIONAIRE. A mere “Yes” or “No” answer
without any corresponding discussion will not be given any credit.

1. What is a Negotiable Instrument? (5%)

2. What are the Requisites of a Negotiable Instrument? (5%)

II

1. What are the functions of a negotiable instrument? (4%)

2. Is a Negotiable Instrument a LEGAL TENDER? Explain. (4%)
3. What are the two KINDS of a negotiable instrument? (2%)

III

1. What are the kinds of Bills of Exchange? (7%)

2. What are the kinds of Promissory Note? (3%)

IV

1. Distinguished an Ordinary Bill of Exchange from a Check? (3%)

2. Who are the persons involved in a negotiable instrument? (7%)

Juan Cruz borrowed P 1, 000.00 from Pedro Santos as evidenced by a promissory note executed
by X as maker. All other requisites of negotiability are present in the note except that Juan Cruz did not
affix his usual signature thereon. As Juan was ailing at that time, he was only able to put “X” in the blank
space meant for the signature of the maker. Is the requisite that the instrument must be signed by the
maker complied with? (10%)

VI

Can a Bill of exchange or promissory note qualify as a negotiable instrument if:

a.) It is not dated; (4%)

b.) Or the day and the month, but not the year of its maturity, is given; (4%)
c.) Or it is payable to “cash”; (4%)
d.) Or it names two alternative drawees; (4%)
e.) Or it does not state the place where it is made or payable? (4%)

VII

1. Name at least 5 kinds of Indorsement? (5%)

2. Where does an indorsement be placed? (5%)

NOTHING FOLLOWS