ASIA PACIFIC COLLEGE OF ADVANCED STUDIES FINAL EXAMINATION LAW 3 LAW ON NEGOTIABLE INSTRUMENTS
NAME: ___________________________________________ DATE:_______________
Items 1-32. State whether the following statements are negotiable or no t. 1. I promise to pay X or order the sum of 200 on Oct 1 201!. Sgd. " 2. I agree to pay X or order the sum of 200 on Oct 1 201!. Sgd " 3. I oblige myself to pay X or order the sum of 200 on Oct 1 201!. Sgd " !. I commit to pay X or order the sum of 200 on Oct 1 201!. Sgd " #. I shall pay X or order the sum of 200 on Oct 1 201!. Sgd " $. I will pay X or order the sum of 200 on Oct 1 201!. Sgd " %. I ac&nowledge that I owe X or order the sum of 200 on Oct 1 201!. Sgd " '. (ay to X or order the sum of 100 and reimburse yourself from my salary. salary. Sgd " )o* )o* + ,. (ay to X or order the sum of 100 and debit the amount from my bonus. Sgd " )o* )o* + 10. (ay to X or order the sum of 100 which is payment for the shoes I purchased. Sgd. " 11. (ay to X or order the sum of 100 from my allowance. Sgd " )o* )o* + 12. I promise to pay S or order the sum of 100 on demand. Sgd. " 13. I promise to pay S or order the sum of 100 at sight. Sgd. Sgd . " 1!. I promise to pay S or order the sum of 100 upon presentation. Sgd. " 1#. I promise to pay S or order the sum of 100. Sgd. " 1$. I promise to pay S or order the sum of 100 on ecember 1' 201!. Sgd. " 1%. (ay to S or order the sum of 100 30 days after date. Sgd. " 1'. (ay to S or order the sum of 100 30 days after sight. Sgd. " 1,. (ay to S or order the sum of 100 on or before Oct. 1 2012. Sgd. " 20. (ay to S or order the sum of 100 30 da ys after the death of . Sgd. " 21. (ay to S or order the sum of 100 30 da ys before the death of . Sgd. " 22. (ay to S or order the sum of 100 30 days after he graduates. Sgd. " 23. I promise to pay S or order the sum of 100. Sgd. " 2!. (ay to the order of myself the sum of #00. Sgd. " 2#. (ay to the order of yourself the sum of #00. Sgd. " 2$. (ay to the order of / and the sum of #00. Sgd. " 2%. (ay to the order of / or the sum of #00. Sgd. " 2'. (ay to the order of the (resident of X orp the sum of 1000 1 000 on ugust 1 201#. Sgd. " 2,. (ay to bearer the sum of #000 on demand. Sgd. " 30. I promise to pay ( or bearer the sum of #000. # 000. Sgd. " 31. (ay to the order of S 10000. Sgd. " 32. I promise to pay to the order of (ablo (atricio the sum of 10000. 10000 . Sgd." t the bac& of instrument (ablo (atricio ( atricio merely signed as follows. Sgd. (ablo (atricio
FILL IN THE BLANKS
Items 33-!#. Identify what defense is applicable with the following infirmities or defects. rite ( if the answer is (ersonal efense and if eal efense. 444433. ant of deli5ery of incomplete instrument 44443!. 6orgery 44443#. 6raud in inducement 44443$. bsence or failure of consideration consideration 44443%. "inority 44443'. 6illing up of blan&s not in accordance with authority gi5en
44443,. Insertion of a wrong date 4444!0. 6raud in factum 4444!1. ischarge 4444!2. c7uisition of signature by force or fear 4444!3. 8egotiation of instrument by breach of faith 4444!!. Illegality of contract 4444!#. uress amounting to forgery TRUE OR FALSE 4444!$. n order or promise to pay out of a particular fund is not negotiable.. 4444!%. n accommodation party is liable on the instrument to a holder for 5alue notwithstanding such holder at the time of ta&ing the instrument &new him to be only an accommodation party. 4444!'. signature by 9procuration: operates as notice that the agent has but a limited authority to sign and the principal is bound only in the case the agent in so doing acted within the actual limits of his authority. 4444!,. n antedated or postdated instrument is 5alid and it does not lose its negotiable character ;ust because it is antedated or postdated pro5ided this is not done for an illegal or fraudulent purpose. 4444#0. n instrument where no time of payment is e
b. (ay to %000 and / the balance =amount of the instrument is (10000> c. (ay to ('000 out of the instrument of (10000 of this note d. (ay to and / (10000 #2. bill of e ": b. 9On or before October 30 201# I promise to pay ( or order (10000.=Sgd> ".: c. 9Si ": d. 9)en days before the death of X I promise to pay ( or his order (10000 =Sgd> ": ##. (ayable to specified person a. (ay to / or his agent (1000 b. (ay to / or his assigns (1000 c. (ay to / or his indorsees (1000 d. 8one of the abo5e #$. )he following instruments are payable to bearer @X@() a. hen it is payable to a person named therein or bearer b. hen the name of the payee does not purport to be name of any person c. hen it is payable to the order of a fictitious or non-e
#%. )he promise or order is conditional hence non-negotiable. a. I promise to pay / or order (20000. Sgd + b. (ay / or order (20000 =ddressed to C signed by +> c. (ay to / or order (20000 and reimburse yourself out of my money in your possession. =ddressed to C signed by +> d. (ay / or order (20000 out of my money in your possession #'. hich of the following is not necessary in order to ma&e an instrument negotiableA a. It must be in writing and signed by the ma&er b. It must contain an unconditional promise or order to pay a sum certain in money c. It must be payable on demand or at a fi b. Dood to ( or order ( 30000 =Sgd "> c. I promise to pay ( or order (30000 on Eune 30 =Sgd "> d. I promise to pay ( or order (#000 =Sgd "> $0. older altered the amount of negotiable note from (10000 to (110000 then negotiated the note to (. a. If ( is holder in due course he can re7uire the ma&er to pay (110000 b. If ( is not a holder in due course he can re7uire the ma&er to pay only the original sum of (10000 c. ( cannot re7uire the ma&er to pay because of forgery whether or not he is holder in due course d. ( can collect (10000 if ( is a holder in due course $1. " ma&es a note for (3000 payable to the order of (. ( negotiates the note to who with the consent of ( raise the amount to (30000 and thereafter endorses it to / / to and to who is not a holder in due course. In this case a. / can reco5er (3000 as against " b. can reco5er (3000 from " c. ( and are liable to (3000 d. / and are not liable to $2. n instrument which is originally negotiable ceases to be negotiable when a. estricti5ely indorsed c. )he last and only indorsement is blan& b. Fualifiedly indorsed d. 8one of the abo5e $3. )he instrument is non-negotiable when a. )here is an indication of a particular fund out of which the reimbursement is to be made b. )here is an indication of a particular account to be debited with the amount c. )he instrument is payable out of a particular fund d. 8one of the abo5e $!. n indorsement where the indorser adds the phrase 9without recourse: a. /lan& b. estricti5e c. Fualified d. onditional $#. On "ay 1 oug signs a chec& that is payable to the order of @
c. GI wish you would pay XG d. both and / $%. hich of the following phrases indicates a bearer instrumentA a. Gpayable to bearerG b. Gpay to cashG c. Gpay to the order of cashG d. all of the abo5e $'. ic& signs a chec& payable to the order of Eane writes 9this is nonnegotiable: in the lower left corner and gi5es it to her. )his chec& is a. negotiable. b. nonnegotiable because it includes the notation 9this is nonnegotiable.: c. nonnegotiable because it is not go5erned by rticle 3. d. nonnegotiable because it was gi5en to Eane $,. indy signs a chec& payable 9to the order of my blue-eyed friend: and gi5es it to an who does not ha5e blue eyes. )his chec& is a. 8egotiable b. nonnegotiable because an does not ha5e blue eyes. c. nonnegotiable because it does not indicate a specific payee d.
nonnegotiable because it was e
%0. It is a form of e
ESSAY 20 Poi!"
%1- '0 Section I of 8I? states that in order to be negotiable the instruments must conforms to the following re7uirements. @numerate those re7uirements. =2 points each> 1.444444444444444444444444444444444444444444444444444444444444444444444
2.444444444444444444444444444444444444444444444444444444444444444444444
3.444444444444444444444444444444444444444444444444444444444444444444444
!.444444444444444444444444444444444444444444444444444444444444444444444
#.444444444444444444444444444444444444444444444444444444444444444444444
'1-'# ifferentiate ondition from a (eriod. 444444444444444444444444444444444444444444444444444444444444444444444444444444 444444444444444444444444444444444444444444444444444444444444444444444444444444 444444444444444444444444444444444444444444444444444444444444444444444444444444 444444444444444444444444444444444444444444444444444444444444444444444444444444 444444444444444444444444444444444444444444444444444444444444444444444444444444 444444444444444444444444444444444444444444444444444444444444444444444444444444
'$-,0 ifferentiate (ersonal efense from a eal efense 444444444444444444444444444444444444444444444444444444444444444444444444444444 444444444444444444444444444444444444444444444444444444444444444444444444444444 444444444444444444444444444444444444444444444444444444444444444444444444444444 444444444444444444444444444444444444444444444444444444444444444444444444444444 444444444444444444444444444444444444444444444444444444444444444444444444444444 444444444444444444444444444444444444444444444444444444444444444444444444444444
“I will persist until I succeed.” Og Mandino
