I.

FINAL EXAM
NEGOTIABLE INSTRUMENT
2014-2015
EXPLAIN WITH LEGAL BASIS

1. A make a note payable to the order of B. B negotiates it to C, C to D, D to E, E to F.

a. Can A give notice
b. If F notifies D, can E give notice of dishonor
2. I promise to pay to B or order P1, 000.00 at the PNB Sgd. A, maker who will pay
directly to B?
3. A, accommodation maker, makes a note in favor of payee B. B indorse to C, C to D, D to
E, E to F.
If F did not present the note for payment to A, can hold B, C, D, or E liable?
4. M makes a note payable to the order of P for P10, 000.00 and delivers the same to P.
without the consent of M; P changed the amount to 40,000.00. P then indorsed the note
to A, A to B, B to C, and C to H, holder. Can H enforced payment against M?
II.
TRUE OR FALSE (RIGHT MINUS WRONG)
1. When an instrument is negotiated to a prior party, the prior party can go after the
intervening parties for the amount of the instrument.
2. A holder may still be a holder in due course even if the instrument is not dated.
3. Payment in good faith before maturity which is made by the principal debtor to the
holder and without notice that his title is defective discharges the instrument.
4. The cancellation of a negotiable instrument which is made by the holder is presumed
to have been intentionally.
5. When the principal debtor becomes the holder in his own right before maturity, the
instrument is discharged by confusion or merger.
6. An absolute and unconditional renunciation made by the holder before, at or after
maturity in favor of the principal debtor discharges the instrument.
7. The certification of a check by a bank is equivalent to acceptance, and when
procured by the holder, the drawer and indorsers are discharged.
8. Acceptance is the significations by the maker of his assert to pay the instrument.
9. Presentment for payment is the production of the negotiable instrument to the
drawer for payment
10. Acceptance to pay only at a particular place is a conditional acceptance

I.

FINAL EXAM
NEGOTIABLE INSTRUMENT
2014-2015
EXPLAIN WITH LEGAL BASIS

1. A make a note payable to the order of B. B negotiates it to C, C to D, D to E, E to F.

c. Can A give notice
d. If F notifies D, can E give notice of dishonor
2. I promise to pay to B or order P1, 000.00 at the PNB Sgd. A, maker who will pay
directly to B?
3. A, accommodation maker, makes a note in favor of payee B. B indorse to C, C to D, D to
E, E to F.
If F did not present the note for payment to A, can hold B, C, D, or E liable?
4. M makes a note payable to the order of P for P10, 000.00 and delivers the same to P.
without the consent of M; P changed the amount to 40,000.00. P then indorsed the note
to A, A to B, B to C, and C to H, holder. Can H enforced payment against M?
II.
TRUE OR FALSE (RIGHT MINUS WRONG)
1. When an instrument is negotiated to a prior party, the prior party can go after the
intervening parties for the amount of the instrument.
2. A holder may still be a holder in due course even if the instrument is not dated.
3. Payment in good faith before maturity which is made by the principal debtor to the
holder and without notice that his title is defective discharges the instrument.
4. The cancellation of a negotiable instrument which is made by the holder is presumed
to have been intentionally.
5. When the principal debtor becomes the holder in his own right before maturity, the
instrument is discharged by confusion or merger.
6. An absolute and unconditional renunciation made by the holder before, at or after
maturity in favor of the principal debtor discharges the instrument.
7. The certification of a check by a bank is equivalent to acceptance, and when
procured by the holder, the drawer and indorsers are discharged.
8. Acceptance is the significations by the maker of his assert to pay the instrument.
9. Presentment for payment is the production of the negotiable instrument to the
drawer for payment
10. Acceptance to pay only at a particular place is a conditional acceptance