REFLECTION 1 - FINALS

Negotiable instruments have been used for centuries as a reliable and convenient
method of payment and credit in business transactions. These instruments are
regulated by specific laws and regulations that ensure their legal validity and
enforceability. In the Philippines, the Negotiable Instruments Law provides the legal
framework for negotiable instruments, which includes promissory notes, bills of
exchange, and checks. One of the key advantages of negotiable instruments is their
transferability. These instruments can be easily transferred from one person to another
by endorsement or delivery, which makes them a useful tool for transferring funds and
providing credit. Additionally, negotiable instruments are considered to be of high
liquidity, which means that they can be easily converted into cash when needed.
However, negotiable instruments also have some limitations and risks. For example, the
transfer of a negotiable instrument does not guarantee the payment of the promised
amount. The issuer of the instrument may default on their payment obligation, which
can result in financial losses for the holder of the instrument. Moreover, negotiable
instruments can be subject to fraud and forgery, which can further increase the risks
associated with their use. In my opinion, negotiable instruments are a valuable and
necessary tool in business transactions, but their use should be accompanied by
appropriate precautions and safeguards. For example, parties involved in negotiable
instrument transactions should ensure that the instruments they use are properly
drafted and meet the legal requirements for validity and enforceability. Moreover, they
should be cautious when transferring negotiable instruments and should verify the
identity and creditworthiness of the issuer before accepting the instrument. In
conclusion, negotiable instruments have played a vital role in facilitating business
transactions for many years. Their legal validity, transferability, and liquidity make them
a useful tool for transferring funds and providing credit. However, their use also carries
some risks and limitations that should be carefully considered and addressed. Overall,
negotiable instruments remain an essential part of the financial landscape, and their
importance is likely to continue in the future.
CURRENT ISSUE 1 – FINALS
Negotiable instruments are still widely used in many parts of the world, particularly in
business transactions involving international trade and finance. However, in recent
years, the use of electronic payments and digital currencies has increased, which has led
to some changes in the way negotiable instruments are used. One current issue related
to negotiable instruments is the rise of digital and electronic negotiable instruments,
which are becoming more common in today's digital age. These instruments include
electronic bills of lading, electronic checks, and other digital payment instruments that
are designed to replace traditional paper-based negotiable instruments. This trend
towards digitization and electronic payments is driven by factors such as convenience,
security, and efficiency. Another issue related to negotiable instruments is the need for
more effective regulation and enforcement to prevent fraud and other forms of financial
crime. Governments and regulatory bodies are increasingly focused on combating
financial crime, including fraud, money laundering, and terrorist financing, which can
involve the misuse of negotiable instruments. As a result, there is a growing demand for
more effective regulation and enforcement mechanisms to ensure the integrity and
security of negotiable instruments.