1.

By affixing his signature on the negotiable instrument, to whom does an

accommodation party lends his name or credit? Discuss briefly.

2. What are the requisites of an accommodation party?

3. A issued a negotiable instrument payable to B who, indorsed the same as an

accommodation party. A then delivered the instrument to C for value, the payee who
knew that B indorsed the instrument as an accommodation party. Should A be unable
to pay the instrument when it becomes due, can C hold B liable to pay the instrument?
Explain your answer.

4. A, B, C and D signed a negotiable instrument as accommodation makers, along with X,

the principal debtor, in favour of Y, the payee. Y then for value indorsed the instrument
to Z, a holder in due course. When the instrument became due, X was declared
insolvent thus, Y demanded payment from A who, at once paid the value of the
instrument. Can A now demand contribution/reimbursement from B, C, and D without
first directing his action against X, the principal debtor? Explain.

5. Stamped on the face of a bill of lading are the words “Not Negotiable”. May the said
bill of lading transferred to a third party for value? Explain your answer.

6. What is the purpose of an indorsement on a negotiable instrument?

7. What is an Allonge?

8. What is the meaning of and indorsement “Without Recourse”?

9. A issued a Negotiable Instrument payable to B or Order. B then indorsed the

instrument to C. Afterwards, C indorsed it again to B. When the instrument became
due A was already insolvent. May B sue C for recovery? Explain.

10. What is an Indorsement in full?