Escolar Documentos
Profissional Documentos
Cultura Documentos
a. A treasury warrant
b. A postal money order
c. A certificate of time deposit certifying that the bearer had deposited a
certain amount with the bank and repayable to the depositor.
d. An authorization to an addressee to pay.
d. It mentioned the contract which gave rise to the issuance of the negotiable
instrument and made the negotiable instrument subject to the terms and
conditions of the contract.
a. It is not dated
b. It does not specify any consideration was given
c. It does not specify where it is payable
d. It is payable in the amount of 1,000 dollars without specifying the country
whose dollars are being referred to.
a. A promissory note may be payable to the order of John Smith and Jane
Smith.
b. A promissory note may be payable to the order of John Smith and/or
Jane Smith.
c. A promissory note may be payable to the order of the widow of John
Smith
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a. If the sum payable expressed in words is P200 and the sum payable
expressed in figures is P2,000, the sum payable is P2,000.
b. If the instrument does not specify the date from which the stipulated
interest will run, it will run from the date of the instrument.
c. If the instrument does not specify the date from which the stipulated
interest will run and the instrument is undated, it will run from the date
of issuance of the instrument.
d. If the instrument is not dated, it will be dated as of the time it was issued.
a. In case of conflict between the written and printed provisions the written
provisions prevail.
b. If there is an ambiguity as to whether the instrument is a bill or note, the
holder may treat it as either.
c. If a signature appears across the face of a promissory note, he will be
deemed an indorser.
d. If two persons signed a promissory note containing the words “I promise
to pay,” they are jointly liable.
a. The holder of a check issued with the name of the payee in blank, may
negotiate it.
b. If a maker signed a promissory note in favor of bank and left the amount
blank, and the bank filled it up and sued him later for payment, he cannot
raise the defense that the promissory note is not valid.
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c. If the drawer of a check authorized the holder to fill it up for P50,000, and
he filled it up for P80,000, and the check was dishonored, he cannot hold
the drawer liable for any amount.
d. If the holder of a check was authorized by the drawer to fill up the check
for P50,000, he filled it up for P80,000, he indorsed it to a holder in due
course, and it was dishonored, the indorsee can hold the drawer liable up
to P50,000 only.
a. A drawer who signed a check but left the name of the payee and the
amount payable blank and entrusted it to his employee, is not liable to
the holder if the check was stolen and dishonored for lack of funds upon
presentment for payment.
b. Since the officers of a corporation who signed blank checks to pay for
obligations of the corporation that might fall due during their trip abroad
were seriously negligent, if the check was stolen and encashed, the
corporation should bear 40 per cent of the loss.
c. If an incomplete and undelivered check was completed and negotiated
without authority to a holder in due course, and was dishonored, the
holder can hold the drawer liable.
d. In an incomplete and undelivered check was completed and negotiated
without authority to a holder, and was dishonored, the holder can hold
the person who negotiated the check to him liable.
a. If a debtor issued a check to pay his creditor but a thief stole it in the
office of the debtor and indorsed it by forging the signature of the
creditor, to a third party who was able to encash it, the creditor can sue
the third party.
b. If the holder of a check payable to bearer delivered it to another for
safekeeping, he can ask for its return at any time.
c. If the holder of a check payable to bearer delivered it to somebody in
trust for him and the trustee tried to encash it but the check was
dishonored for lack of funds, the trustee cannot hold the drawer liable to
him.
20. One of these is not a requirement for an agent to avoid personal liability if he signs
a negotiable instrument:
21. A person is not liable even if his own signature does not appear in a negotiable
instrument in one of these cases:
22. The indorsement of one of these will not pass title to a negotiable instrument:
a. A minor.
b. A corporation acting ultra vires.
c. An insane person.
d. An enemy alien.
a. A drawee bank which paid a check in which the signature of the drawer
was a forgery must restore the amount it paid to the account of the drawer.
b. A drawee bank which paid a friend of the drawer who stole a check and
forged the signature of the drawer must restore the amount to the account
of the drawer. The drawer was not negligent.
c. A drawee bank must restore to the account of the drawer the amounts of
the checks it paid in which the external auditor of the drawer was able to
forge the signature of the drawer because he was asked to take charge of
reconciling the bank statements with the records of the drawer, since the
auditor was not an employee but an independent contractor.
d. A drawee bank must restore to the account of the drawer the amounts of
the checks it paid in which the signature of the drawer was forged, even if
the drawer did not examine the bank statements and did not discover the
forgeries promptly.
a. The drawee bank must restore to the account of the drawer the amount of
the check payable to order which it paid although the indorsement was
forged.
b. A collecting bank must refund to the drawee bank the amount it paid for a
check presented by the collecting bank in which the indorsement of the
payee was forged.
c. The drawer is not entitled to the restoration to his account of the amount
the drawee bank paid to the holder of a check which is payable to bearer
and which has a forged indorsement.
d. The drawee bank must restore to the account of the drawer the amount of
the checks it paid with forged indorsements even if the drawer did not
inform it of the forgeries, because the drawer did not examine the bank
statements and the cancelled checks.
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a. An assignee is merely placed in the position of the assignor and takes the
instrument subject to all defenses available to the maker or drawer of the
instrument. In negotiation the holder takes the instrument free from
personal defenses available to prior parties.
b. If an instrument is payable to bearer, it may be negotiated by delivery. If
it is payable to order, it may be negotiated by indorsement of the holder
completed with delivery.
c. An indorsement must be an indorsement of the entire instrument, except
if it is payable in installments and had been paid in part.
d. A partial indorsement operates as a negotiation to the extent of the part
indorsed and as an assignment to the extent of the part which was not
indorsed.
a. A holder in due course holds the instrument free from any defect of
title of prior parties and free from defenses available to prior parties
among themselves.
b. A holder who is not a holder in due course holds a negotiable
instrument subject to the same defenses as if it were not negotiable.
c. A holder who is not a holder in due course but derived his title from a
holder in due course and is not a party to any fraud or illegality
affecting the instrument, enjoys the same exemption from defenses as
a holder in due course.
d. A holder who is not a holder in due course need not prove that the
previous holder who indorsed the instrument to him is a holder in
due course, because this is presumed.
d. Material alteration.
a. Both a qualified indorser and general indorser warrant that: (1) the
instrument is genuine and in all respects what it purports to be; (2)
they have a good title to it; and (3) all prior parties had capacity to
contract.
b. A qualified indorser warrants that he has no knowledge of any fact
that will impair the validity of the instrument, while a general
indorser warrants that the instrument is at the time of his
indorsement valid and subsisting.
c. A general indorser undertakes that on due presentment the bill of
exchange will be accepted and paid and that if it be dishonored and
the necessary proceedings on dishonor are duly taken, he will be
liable to the holder or any subsequent holder who may be compelled
to pay it.
d. If the drawee dishonored a bill of exchange on the ground that the
signature of the drawer is forgery, to be able to hold a qualified or
general indorser liable, the holder must prove the forgery.
a. If the parties to be notified are joint persons who are not partners,
notice must be given to each of them unless one is authorized to
receive the notice for the others.
b. If the party to be notified has been adjudged insolvent, notice may
be given to him or to the assignee appointed by the insolvency
court.
c. Notice of dishonor may be given by or on behalf of the holder or
by or on behalf of any party to the instrument who may be
compelled to pay the holder and would have a right of
reimbursement from the party notified.
d. If the notice will be given by an agent, he must be authorized by
the principal.
a. Notice may be waived before the time for giving it or after the
failure to give due notice.
b. Waiver may be expressed or implied
c. If the waiver was embodied in the instrument upon its issuance, it
is binding upon all parties.
d. If the waiver was written after the issuance of the instrument, and
was written above the signature of an indorser, it will bind him
and all subsequent parties.
a. Any drawer or indorser who was not given notice of dishonor will
be discharged.
b. The failure to give notice of dishonor will not bind a holder in due
course subsequent to the failure.
c. If the instrument is payable in installments and there is no
acceleration clause, failure to give notice of dishonor for non-
payment of an installment will not discharge the drawer and the
indorsers as to the subsequent installments.
d. If the instrument is payable in installments and has an
acceleration clause, failure to give notice of dishonor for non-
payment of an installment will discharge the drawer and the
indorser as to the subsequent installments, even if the acceleration
is not automatic.
a. A holder may renounce all his rights against any party to the instrument
before, at, or after its maturity.
b. An absolute and unconditional renunciation by a holder of his rights
against the principal at or after maturity discharges the instrument.
c. Renunciation does not affect the rights of a holder in due course without
notice of it.
d. An oral renunciation is always invalid.
74. One of these statements is not correct if the amount payable in a promissory note
was changed from P10,000 to P40,000:
a. The holder may require that the acceptance be written on the bill
of exchange.
b. If the request is refused, the holder should treat the bill as
dishonored.
c. An acceptance of any bill of exchange on a separate instrument
does not bind the acceptor except in favor of a person to whom it
was shown and who received the bill for value on the faith of it.
d. An unconditional promise in writing to accept a bill before it is
drawn will not bind the acceptor except in favor of a person to
whom it was shown and who received the bill for value on the
faith of it.
a. The drawee is allowed 24 hours to decide whether or not he will accept the
bill.
b. If the drawee does not return the bill accepted or unaccepted within 24
hours, he will be deemed to have accepted it.
c. If the drawee requires the return of the bill before the expiration of 24
hours, he must decide before its expiration whether or not he will accept
the bill.
d. If the drawee destroys the bill, he will be deemed to have accepted it.
a. An acceptance to pay a part only of the amount for which the bill
was drawn is qualified.
b. An acceptance to pay on a date different from the date of maturity
in the bill is qualified.
c. If there are several drawees and not all of them accepted, the
acceptance is qualified.
d. An acceptance which stated that it was being made pursuant to a
deed of sale selling a parcel of land is qualified.
a. Where the bill is payable after sight or in any other case where presentment
for acceptance is necessary to fix the maturity of the instrument.
b. Where the bill expressly stipulated for it.
c. Where the bill is payable elsewhere than at the residence or place of
business of the drawee.
d. Where the bill is payable on demand.
a. If a check was not presented on time after its issuance, the drawer
will be discharged from liability to the extent of the loss caused by
the delay.
b. If a check was not presented on time and became stale, the drawer
will be discharged from his liability under the contract which was
the basis for the issuance of the check.
c. If a check was not presented on time and became stale, the drawer
remains liable under the contract which was the basis for the
issuance of the check and will be discharged to the extent he was
prejudiced if the bank became insolvent.
d. An indorser is discharged if a check was not presented on time
and became stale, because it is conclusively presumed he was
prejudiced by the delay.