Introduction to

Negotiable Instruments
Law Quiz
Instructions: True or False. Read the
questions carefully. 10 seconds is
allocated to answer each number.

6/30/16

1
2
3
STAR
T

1. Although they do
not constitute legal
tender and are not
money,
negotiable
instruments
are
used as a substitute
for money.

2.
Negotiable
instruments have two
important
features,
namely:
negotiability
and
accumulation
of
secondary contracts as
they pass from one
person to another.

The
theory
of
negotiable instruments,
and of their currency
from hand to hand, rests
upon
the
proposition
that
they
appear
to
belong to the person
having
them
in
3.

Checks are special

form or kind of bill of
exchange.
4.

5. Where the meaning of

the
instrument
is
doubtful, the policy is to
resolve in favor of the
negotiability
of
the
instrument.

6. Between ordinary
contracts
and
negotiable instruments
there is the difference
between
"assignability"
and
"negotiability."

7. A Certificate of Stock
is a muniment of title to
a given share in the
assets of a corporation.
It is also without an
unconditional promise or
order to pay a sum
certain in money.

8. One function of
a
negotiable
instrument is that
it also serve as a
medium of credit
transactions.

9. The most important

feature of negotiable
instruments
is
the
accumulation
of
secondary contracts as
they
are
transferred
from one person to
another.

10.
Negotiability
is
defined as that quality or
attribute of a bill or note
whereby it may pass
from
hand
to
hand
similar to money.

End of quiz
Answers to follow

Answers
T
2. T
3. T
4. T
5. T
6. T
7. T
8. T
9. T
10. T
1.