Bearer - negotiated by delivery

Order - negotiated plus delivery

Bearer - primary liable

Indorser - secondly liable

To whom to collect?
- maker

What if the maker is insolvent?

- To the indorser because indorser warrants the insolvency of the maker

In bearer - you can collect from the immediate indorser only

In order - anyone of them

RULES OF THE INSTRUMENT:

Two makers - they are solidarily liable
"We" - jointly and soludarily liable
Payment of sack of rice - not negotiable - it should be sum of money
To make it negotiable - add "at the option of the order"
Foreign currency - negotiable
Installments - non- negotiable but if you put the dates and amount when it will be fully paid, it becomes
negotiable.

Confession of judgment - ognovit actionem

Non-negotiable - disregard the confession of judgment

Which will prevail, written or printed?

GENERAL RULE - printed bec written can be falsified easily
EXCEPTION - there is a confusion because it stated "peso dollar yen" - written will prevail

Parties in bill of exchange - drawer, drawee, owner

Drawee - will be liable only when he accepts in which case he becomes the primarily liable
If drawee is insolvent - collect from drawer and the

General law- good faith is a defense

Special law - good faith is not a defense
Pre- existing obligation or existing obligation - ex. A person issues a check for his pre existing obligation
(only bouncing check) - you went to a shop and paid a check - existing obligation (estafa and bp 22)

Elements- bp 22
1.check not funded
2. Without informing the payee
3. Amount not sufficient
4. Payee not informed
If a person issues a check, how many days
-90
Penalty - not less than 30 days but not more than 1 yr and fine depending of the amount of the check
but will not exceed 200k
Where to file? - MTC except when there is a crime of estafa
Defect of the law - even if the check is 1m, the person willmonly be liable to 200k

Similar words allowed -

I promise to give - synonymous with pay or I oblige myself - to demand from me

 Consideration is presumed
 Presumed to be the date it is due
 Printed provision shall prevail
 No due date - valid - payable on demand
 Jan 35, 2019 - presumed to be 31
 Indorser is incapacitated, instrument is valid
 Maker is insolvent - cannot
 I promise to pay - bill of exchange - valid, it will be atvthe option of the holder
 Money or in kind - not valid, "at the option of the payee" - valid
 10 days before he dies - not valid, not certain when - after he dies - valid
 Typhoon yolanda leave par - no, bec you cannot prefict calamity
 Before the fire has been extinguish - no, it should be after the fire has bee n extinguish
 If sued in court. I admit my liablity in court. - valud but 2nd paragraph in null and void (ognovit
actionem)
 And lose in court, I will not appeal anymore -valid, for speedy trial
 We -jointly liable , x and y - soludarily liable (the act of one is the act of all)
 Alteration - changing yhe wordings of the instrument - only a personal defense, if he does not
know it he can collect
 Right time - until it is fully paid
 Indorser paid - not discharge bec it was notnpaid by the person primarily liable
 Cancellation of the maker's signature - it is extinguish,but indorser's signature - not extinguished
 Allonge - separate piece of paper but must be attached
 Prior party liable to subsequent party
 Insertion - yes you can insert
 Consignation - 2 holders collecting from the maker - file a case in court called consignation and the
court wil determine - deposit the money in court