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Northeastern College College of Accountancy & Business Administration Negotiable Instruments Law (Law 3) 2:3pm MWF PRELIM EXAMS !uly ""# "$%' GENERAL IN!R"#!I$N( Before ta)ing this e*am# ma)e sure that all your things must +e ,lac ,laced ed infr infron ontt near near the the +lac +lac)+ )+oa oard rd''- .nly .nly your your ,erm ,ermit it## ,en# ,en# /ues /uesti tion onna nair ires es fee fee and and the the /uestionnaire0ans1er sheets must +e found on your 1riting des)- 2ailure to follo1 the same is li)e1ise li)e1ise e/ui3alent to automatic failure from this e*am'- N. C4EA5IN6777 C4EA5IN6777 I% M"L!I&LE #'$I#E% Encircle the correct letter of your choice- "-89 each% Presentment for ,ayment may +e 1ai3ed e*,ressly or im,liedly: and in such a case# if there is no ,resentment a' Parties secondarily secondarily lia+le 1ill 1ill +e dischargeddischarged+' Parties ,rimarily lia+le lia+le 1ill not +e dischargeddischargedc' Parties ,rimarily ,rimarily lia+le 1ill +e dischargeddischargedd' Parties secondarily secondarily lia+le 1ill not +e dischargeddischarged-
N.5 a re/uisite of a negotia+le instrument( 2% 5he follo1ing is N.5 a' must +e ,aya+le on demand or at a ;*ed future future time +' it must +e in 1riting signed +y the ma)er or or dra1er c' must contain an unconditional ,romise ,romise or order to ,ay ,ay a sum certain money d' must +e ,aya+le to order or +earer 3% Comment on the o+ligation of the follo1ing instrument as issued assuming that the other re/uisites for negotia+ility are ,resentPay to < order Ph,- %$#$$$-$$ to +e de+ited against Paya+le- Sgd- Xa' It is negotia+le +ecause the order is unconditional though indicated indicated a ,articular account to +e de+ited 1ith the amount+' It is not negotia+le +ecause it is chargea+le against against Accounts Paya+le Paya+le c' It is negotia+le 1ith 1ith an indication of a ,articular ,articular fund out of 1hich 1hich reim+ursement is to +e maded' It is not negotia+le +ecause +ecause there is an im,lied im,lied condition% A dra1s a +ill ,aya+le to B or order 1ith X# as the dra1ee- 5he +ill 1as successi3ely endorsed to C# =# E and 2# holderholder- X does not ,ay and 2 has duly ,rotested non>,ayment- < ,ays for the honor of C?hich of the follo1ing statement is 1rong@ a' = is discharge dischargedd+' E is discharged discharged-c' C is discharge dischargeddd' < can as) reim+ursement reim+ursement from A*% X e*ecuted a ,romissory note in fa3or of < containing the 1ords( I# X# ,romise to deli3er to < the sum of P8$$ or a ,air of dogs# at Xs o,tion- 5he note is( a' negotia+le +ecause it contains a ,romise ,romise to deli3er a sum of moneymoney+' negotia+le +ecause the deli3ery of a sum of money or a ,air of dogs is at the o,tion of the o+ligor# Xc' non>negotia+le +ecause the ma)er ma)er is gi3en the o,tion o,tion to deli3er something in in lieu of moneyd' Non>negotia+le +ecause the o+ligee o+ligee is not gi3en the o,tion to choose 1hich should +e deli3ered to him+% M ma)es ,romissory note for Ph, D#$$$ ,aya+le to P or order- P negotiates the note to A# 1ho# 1ith the consent of P raises the amount to Ph, #$$$-$$ and thereafter indorses it to B# B to C# and C to = under circumstances 1hich ma)e = not a holder h older in due coursea' the note is discharged discharged as against M+' = cannot enforce the note against M e3en for the original tenortenorc' A 1ould +e lia+le lia+le to = for the sum of Ph, #$$$-$$ d' P 1ould not +e lia+le lia+le to = for Ph, #$$$-$$ #$$$-$$
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,% A ma)es a ,romissory note ,aya+le to +earer and deli3ers it to B- in turn B negotiates it +y mere deli3ery to C: 1ho indorses it s,ecially to =- = negotiates it +y s,ecial endorsement to E# 1ho negotiates it to 2 +y mere deli3ery- A did not ,aya' = is only lia+le to E c' = and E are not lia+le to 2 +' B and C are not lia+le to 2 d' A is not lia+le to 2 -% B forged As signature as dra1er of chec) dra1n on Citi+an)- 5he chec) ,ur,ortedly ,aya+le to the order of B- B then indorsed the chec) to C# a holder in due course# 1ho de,osited the same to his account 1ith BPI- 5he chec) ,assed through the normal course of clearing and accordingly the dra1ee Citi+an) credited the collecting +an) BPI 1ith the amount of the chec) 1hich Citi+an)# together 1ith the cancelled chec)s de+ited from his de,osit account# disco3ered the forgeryCan A com,el Citi+an) to re>credit to his account the amount of the forged chec)@ a'
In the ,receding ,ro+lem# may the Citi+an) or BPI ,roceed against C@ /% a' /uali;ed>restricti3e c' s ,ecial>/uali;ed>non>restricti3e +' S,ecial>/uali;ed>restricti3e d' s,ecial>un/uali;ed>non>restricti3e Can a +ill of e*change /ualify as a negotia+le instrument if the day and the month *% +ut not the year of its maturity is gi3en@ a' No# if the holder inserts the incorrect date +'
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I ,romise to ,ay to the order of +earer P%#$$$-$$- Sgd' =igong- Is this a +% negotia+le instrument@ a' No# +ecause it is not ,aya+le to order or +earer +'
?hen is an instrument ,aya+le to +earer@ it is ,aya+le to the order of the +earer it is ,aya+le to the holder of an oJce it is ,aya+le to the order of a s,eci;ed ,erson the name of the ,ayee does not ,ur,ort to +e the name of any ,erson
Pay to the order of X P%%#$$$-$$- Sgd' K23% 5o( 5he =ean of the College of La1 of NC Santiago city or the =ean of the College of Accountancy- Is this a negotia+le instrument@ a'
c' !une %"# %%% d' 2e+ruary %D# %%%
A man does not al1ays ha3e ,ro,erty# or 3alua+le ,ro,erty rights 1hich he can turn 2+% into cash at any moment- 5his ,ertains to Negotia+le Instruments as a' A su+stitute for money
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+' A medium of e*change for most commercial transactions c' A medium of credit transactions d' A com+ination of all of the a+o3e II%
EA0% 6i3e 1hat is +eing as)ed- Su,,ort your ans1ers 1ith legal +asis- ?rite your ans1ers on the s,aces ,ro3ided-
"- Enumerate the nine incidents in the life of a negotia+le instrument and e*,lain each@ %89' D- =e;ne the follo1ing-
-NOTHING FOLLOWSGod bless and study harder!!!
A!!0% RAI1A' M$LA!$ MANGAN!"LA$ Instructor
