MIDTERMS EXAM

Negotiable Instruments Law

* Required

1. An instrument which is not dated will be considered dated as at the time of * 2 points

Mark only one oval.

acceptance

.rst indorsement

last indorsement

issuance

2. "I promise to pay P or his order the sum of Php10,000 30 days a!er the death of X." This 2 points

is an instrument payable: *

Mark only one oval.

at a determinable future time

on demand

upon the ful.llment of a condition

at an inde.nite time, hence, non-negotiable

3. Who among the following is the holder of a negotiable instrument originally payable to 2 points

order? *

Mark only one oval.

original payee who has negotiated the instrument

indorsee who is in possession of the instrument

possessor of the instrument to whom the instrument was delivered without any indorsement

indorsee who has negotiated the instrument

4. An instrument payable to bearer may be negotiated through any of the following means, 2 points
except by *

Mark only one oval.

special indorsement plus delivery

mere delivery

blank indorsement plus delivery

no delivery is required as long as there is an indorsement, whether blank or special

5. Assuming all the other requisites of negotiability are present, which of the following 2 points

instruments is not payable to bearer *

Mark only one oval.

"Pay to the order of Cash"

"Pay to the order of Jose Rizal, National Hero"

Pay to Pedro Padernal, bearer"

"Pay to Pedro Padernal or bearer"

6. Consider these 2 statements: I. An instrument originally payable to order may be 2 points

conve"ed into a bearer instrument. II. An instrument originally payable to order may be
conve"ed into an order instrument. *

Mark only one oval.

Both statements are true

Both are false

Statement 1 is true; S2 is false

S1 is false; S2 is true

7. Which of the following is a valid address to a drawee so as to make the instrument 2 points

negotiable? *

Mark only one oval.

To Juris Judan or Joseph Judan

To Juris Judan, or in his absence, Joseph Judan

To Juris Judan and Joseph Judan

To Juris Judan and another drawee named Joseph

8. M signs a promissory note payable to the order of P which is blank as to amount. M 2 points
delivers the note to P with the instruction to type the amount of Php20,000 on the blank.
P, however, types the amount of Php50,000, and negotiates the same to A, A to B, B to C,
and C to H, a holder in due course. A, B, C, and also H had no knowledge of the wrongful
completion of the blank. *

Mark only one oval.

H may collect from M nothing because P violated M's instructions

H may collect M Php20,000 only as per M's instruction

H may collect M Php50,000

H may collect from A, B or C Php 20,000 since they had no knowledge of the wrongful completion

9. R signs a check amounting to Php50,000 but which is blank as to the name of payee. He 2 points
keeps the check in his drawer but S, his secretary, steals it, places her name as payee on
the blank, and negotiates it to A, A to B, B to C, and C to H, holder. A, B and C have no
knowledge of the the! of the check and its unauthorized completion by S. Which is
incorrect? *

Mark only one oval.

H may enforce payment of the check against R if H is a holder in due course

H may enforce payment against S, whether H is a holder in due course or not

H may enforce payment against A, B and C, whether H is a holder in due course or not

H may not enforce payment of the check against R, whether H is a holder in due course or not

10. M makes a note payable to the order of P. He delivers the note to P with the instruction 2 points
that P shall keep the same until M has obtained the proceeds of his loan from the bank.
P, however, disregarded the instruction of M and indorsed the note to A, A to B, B to C,
and C to H, holder. A, B and C has no knowledge of P's defective title. Which statement
is incorrect? *

Mark only one oval.

H may enforce payment against M if H is a holder in due course

H may not enforce payment against M if H is not a holder in due course

H may not enforce payment against A, B and C, whether H is a holder in due course or not

H may enforce payment against P, whether H is a holder in due course or not

11. An indorsement, where the indorser signs only his name at the back of the instrument, 2 points
is a: *

Mark only one oval.

Special indorsement

Blank indorsement

QUali.ed indorsement

Restrictive indorsement

12. An instrument reads: "November 30, 2019. I promise to pay to the order of Paolo Garcia 2 points
the sum of Php50,000 if he places 1st in the May 2020 engineering examination.
Signed, Mariano Miranda" *

Mark only one oval.

The instrument is valid and negotiable

The instrument is valid but not negotiable

The instrument is invalid but negotiable

The instrument is invalid and non-negotiable

13. An instrument reads: "November 1, 2020. I promise to pay to the order of Lei Rosario the 2 points
sum of Php60,000 on November 30, 2020. Signed, Jisel Rosario, Signed Juris Rosario,
signed Kim Eden". On November 30, 2020, Lei Rosario may collect from Jisel Rosario
the amount of *

Mark only one oval.

Php30,000

Php20,000

Php60,000

nothing, because the note is void

14. Which of the following renders an instrument non-negotiable * 2 points

Mark only one oval.

the promise or order is to pay the amount of the instrument out of a particular fund

the promise or order to pay is coupled with a statement of the transaction that gave rise to the
instrument

the sum payable is to be paid with costs of collection or an attorney's fee in case payment is not
made at maturity

the instrument contains a provision authorizing the sale of collateral securities in case instrument
is not paid at maturity
15. Which of the following omissions on the face of the instrument will render it non- 2 points
negotiable *

Mark only one oval.

omission of the date of issue

omission of any statement that value has been given

omission of the place where the instrument was drawn

omission of the signature of the maker above his typewritten name

16. The a#ribute of a negotiable instrument which allows it to be passed from one hand to 2 points

another, similar to money, so as to give the holder in due course the right to hold the
instrument free from defect of title of prior pa"ies, and free from defenses available to
prior pa"ies among themselves and to enforce payment of the instrument for the full
amount thereof against all pa"ies liable thereon is known as *

Mark only one oval.

assignability

negotiability

transferability

acceptability

17. An instrument is not payable on demand in one of the following cases * 2 points

Mark only one oval.

when the instrument is expressed to be payable at sight

when the instrument is expressed to be payable upon presentation

when the instrument is expressed to be payable after the occurrence of a speci.ed event which is
certain to happen

when no time for payment is expressed

18. Which of the following is not a promise to pay, thus will make an instrument non- 2 points
negotiable *

Mark only one oval.

"I agree to pay P"

I bind myself to pay P

I acknowledge my debt to pay P

I oblige myself to pay P

19. An instrument to be negotiable, must be payable at a $xed or determinable future time. 2 points
which does not comply with said requisite? *

Mark only one oval.

I promise to pay P or order on christmas day 2 years from now

I promise to pay P or order on the death of X

I promise to pay P or order 10 days before the death of X

I promise to pay P or order before valentine's day next year

20. Which of the following instrument is not payable to order * 2 points

Mark only one oval.

I promise to pay P or his agent Php10,000

I promise to pay P or his assigns Php10,000

I promise to pay to the order of myself, Php 10,000

Pay to the order of yourself, Php10,000

21. The placing of a date in instrument is necessary in the following cases, except: * 2 points

Mark only one oval.

To .x the maturity of the instrument

to determine when interest is to run

to .x the prescriptive period

to make the instrument negotiable

22. Wri#en assent of the drawee to the order of the drawer is * 2 points

Mark only one oval.

Acceptance

Approval

Indorsement

Negotiation
23. An instrument which contains a promise or order to pay a sum of money which is 2 points
subject to a condition is negotiable as long as the condition happens *

Mark only one oval.

True

False

24. An instrument where no time for payment is expressed is payable on demand * 2 points

Mark only one oval.

True

False

25. An instrument payable to a speci$ed person or his agent is payable to order * 2 points

Mark only one oval.

True

False

26. The negotiable character of an instrument is not a%ected by the fact that it is not dated 2 points
*

Mark only one oval.

True

False

27. Where the name of the payee does not purpo" to be the name of any person, the 2 points
instrument is payable to order *

Mark only one oval.

True

False
28. Where the instrument is payable to the order of a "$ctitious person", the instrument is 2 points

still payable to bearer although such person is actually existing as long as he was not the
intended recipient of the payment *

Mark only one oval.

True

False

29. The ante dating or post dating of the instrument does not render the instrument invalid 2 points
provided it is not done for an illegal purpose *

Mark only one oval.

True

False

30. An instrument that is incomplete but delivered , when completed without authority, shall 2 points
be considered to have been completed with authority in the hands of a due course *

Mark only one oval.

True

False

31. An instrument that is complete but is undelivered shall be considered as validly 2 points
delivered if it is in the hands of a holder in due course *

Mark only one oval.

True

False

32. When an instrument provides: "I promise to pay" is signed by two or more persons, they 2 points
are deemed to be jointly and severally liable *

Mark only one oval.

True

False

33. Name of your professor in Negotiable Instruments Law * 6 points

34. Requisites for an instrument to be negotiable (ENUMERATE) * 10 points

This content is neither created nor endorsed by Google.

Forms