Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
1.Give the instrument listed herein which is not A .“On the death of X, I promise to pay to the
negotiable as it is beyond the scope of the order of B P1,000.00. Sgd.”A”
Negotiable Instruments Law:
B. “On or before October 30, 2009, I promise
A. Certificate of Deposit to pay B or his order P1,000.00. Sgd.”A”
B. Due Bill
C. Post-Office Money Order C. “Sixty days after sight, I promise to pay to
D. Trade Acceptance the order of B P1,000.00. Sgd.”A”
2.Under the Negotiable Instruments Law, a D. “Ten days before the death of X, I
certificate of stock is not negotiable instrument promise to pay B or his order P1,000.00.
because it lacks the requisites of: Sgd.”A”
3. This negotiable instrument is always drawn 7. This negotiable instrument is always drawn
against a bank. against a bank:
D. “Pay to Cash the sum of P1,000.00. 9. When there are three (3) parties, the drawer, the
To:X Sgd.”A” payee and the drawee, the instrument is a:
A. Promissory note
B. Certificate of indebtedness
C. Bank Check
D. Bill of exchange
D. It must be payable only to a specific
10. A bill of exchange may be treated and person.
considered a promissory note:
15. An instrument is payable on demand:
A. When the drawer and the drawee are the
same person. A. When no time of payment is fixed.
B. When the drawee is fictitious. B. When last endorsement is in blank.
C. When the instrument is ambiguous. C. When the payee is blank.
D. All of the above. D. When payable to order.
11. Which of the following instruments is not 16. The following is not negotiable:
negotiable?
A. “Pay to C or order, P20,000.00 with
A. “I agree to pay to the order of A, exchange at 2.5%.
P30,000.00.” (Sgd. X) To: Z
B. “Good to A or order, P30,000.00.” (Sgd. Sgd:”M”
X)
C. “I promise to pay A or order P30,000.00 B. “Pay to order of C within 6 months from
on June 30.” (Sgd.X) date, the sum of P20,000.00 with interest at
D. “I promise to pay to A or order P5,000.00.” 12% per annum.
(Sgd.X) To:Z
Sgd:”M”
12. The promise or order is conditional, hence
non-negotiable. C. “Pay to C or bearer P20,000.00 6 months
after date. If not paid on due date, I agree to
A. “I promise to pay to B or order P20,000.00.” pay collection and Attorney’s fees.
(Sgd.Y) To:Z
B. “Pay to B or order P20,000.00.” (Addressed Sgd:”M”
to Z, signed by Y)
C. “Pay to B or order P20,000.00 and D. “Pay to C or order P20,000 in installment.
reimburse yourself out of my money in your To:Z
possession.” (Addressed to Z signed, by Y) Sgd:”M”
D. “Pay to B or order P20,000.00 out of my
money in your possession .” 17. This party is with primary liability:
(Addressed to Z, signed by Y)
A. Maker
13. An instrument is payable on demand: B. Drawer
C. Indorser
A. When payable to order. D. None of the three.
B. When the last endorsement is in blank.
C. When no time of payment is expressed. 18. If an instrument conforms to the following:
D. When payable within a period of time.
1. It must be in writing and signed by the
14. Which of the following is not necessary in maker or drawer.
order to make an instrument negotiable? 2. It must contain an unconditional promise or
order to pay a sum certain in money.
A. It must be in writing and signed by the 3. It must be payable on demand or at a fixed
maker. or determinable future time, and
B. It must contain an unconditional promise or 4. It must be payable to order or to bearer, the
order to pay a sum certain in money. instrument is a
C. It must be payable on demand or at a fixed
future time. A. Check
B. Promissory note
C. Bill of exchange 23. Which one of the following instruments is non-
D. Draft negotiable?
21. A promissory note as distinguished from a bill A. Gail is obliged to pay Kate P6,000.00.
of exchange. B. Gail is obliged to pay Kate P2,000.00.
C. Gail is obliged to pay Kate P12,000.00.
A. It contains an unconditional order. D. Gail is obliged to pay Dada, Tina and Kate
B. The one who issues it is primarily liable. P18,000.00.
C. The one who issues it is secondarily liable.
D. There are three (3) parties, the drawer, the 26. “I promise to pay the bearer, Juan dela Cruz
payee and the drawee. the sum of P20,000.00.”(Signed)Joe Perez. The
promissory note is:
22. Which one of the following instruments is A. Negotiable promissory note payable on
negotiable? demand.
B. Negotiable promissory note payable to
A. “I promise to pay C or order P20,000.00 if order.
he will pass the CPA examination in C. Negotiable promissory note payable to
October, 2010.” (Sgd.D) bearer.
B. “I promise to pay C or order P20,000.00 in D. Non negotiable.
four (4) installment.” (Sgd:D)
C. “I promise to pay C or order P20,000.00
60 days after the death of his father.”
(Sgd.D)
D. “I promise to pay C P20,000.00.”
(Sgd:D)
27. Which of the following is non-negotiable? D. Either Bill of exchange or a Promissory
note
A. I bind myself to pay B or bearer P10,000.
(Sgd.) A. 31. The instrument is payable to order when
B. I acknowledged being indebted to B in the
amount of P10,000.00. (Sgd.)A. A. The name of the payee does not purport to
C. I promise to pay to the order B P10,000. be the name of any person.
(Sgd)A. B. The only or last indorsement is an
D. I agree to pay to B or order P10,000 on indorsement in blank.
demand. (Sgd)A. C. Drawn payable to the order of a specified
person or to him or his order.
28. Manila D. Payable to the order of fictitious or non-
P20,000.00 June 1, 2010 existing person, and such fact was known
to the person making it so payable.
For value received, We promise to pay to the
order of Sanrio Lumber Co. at Manila, 32. An instrument is payable at a determinable
P20,000.00. future time, which is expressed to be payable,
except
Sanrio Furniture Mfg. Corp.
A. At a fixed period after date or sight.
Sgd. Pedro Sanrio B. On or before a fixed or determinable future
time specified therein.
Sgd. Helen Sanrio C. On or at a fixed period after the occurrence
of a specified event, which is certain
Statement 1. Pedro and Helen are not liable to happen, though the time of happening be
personally because they have disclosed their uncertain.
principal. D. Upon a contingency and the contingency
Statement 2. Pedro and Helen are not liable actually happens.
personally because by using the word “WE”
on the body of the instrument, they 33. One is not negotiable.
have indicated that they are signing for
and on behalf of Sanrio Mfg. Corp. A. A promise to pay to the order of B P10,000
with 12% interest thereon where the period
A. True; False from which interest is to be counted is not
B. False; True specified.
C. Both statements are true. B. A promises to pay to the order of B
D. Both statements are false P10,000 in four monthly installments
beginning June 12, 2009 with a provision
29. A bill of exchange drawn on a bank and that if A defaults in the payment of any
payable on demand. installment, the entire balance including
the unpaid installment shall become due
A. Bond C. Check and demandable.
B. Due bill D. Certificate of deposit C. A promise to pay to the order of B the sum
of US$1,000 payable in pesos at the rate of
30. Where in a bill the drawer and the drawee are exchange prevailing on January 1, 2010.
the same person or where the drawee is a fictitious D. A promises to pay to the order of B P10,000
person, or a person not having capacity to contract, with an agreement to pay attorney’s fees and
the holder at his option may treat the instrument as costs of collection.
A. Dishonored
B. Bill of exchange
C. Promissory note
34. The promise is conditional rendering the (Midterm )
instrument non-negotiable. 1.An instrument is considered payable on demand:
A. Bill of exchange
35. Which is not negotiable?
B. Check
A. Pay to B or order P10,000 thirty days after C. Due bill
sight. Sgd. A to C D. Promissory note
B. I promise to pay B or order P10,000 on or
before March 1, 2010. Sgd. A 3.When there are three (3) parties, the drawer, the
C. I promise topay B or order P10,000 within payee & the drawee, the instrument is a:
20 days after the death of C. Sgd. A
D. Pay to B or order P10,000 within 10 days
A. Promissory note
if he marries D on June 12, 2010. Sgd. A
to C B. Certificate of indebtedness
C. Bank check
36. Where the instrument is addressed to a D, Bill of exchange
drawee, he must be named or otherwise indicated
therein with reasonable certainty. This requirement 4. A bill exchange may be treated and considered a
is applicable to promissory note:
A. C is deemed a holder for value when B 20.One who has signed the instrument as maker,
transferred the note to him. drawer, acceptor, or indorser without receiving
B. C becomes a holder in due course when B value thereof, and for the purpose of lending his
endorsed the note to C on October 4, 2010. name to some person is a (an)
C. C has no right to compel B to make the proper
endorsement to him. A. Creditor
D. C cannot collect from A because of A’s B. Accommodation party
defense of lack of consideration. C. Guarantor
D. Debtor
17. A issues a bill payable to the order of B. Later
B, without indorsing the bill transfers for a 21.The indorsement “Pay to C” Sgd. B is a
consideration said bill to C. As a result, one of the
following is not correct. A. Blank indorsement
B. Special indorsement
A. The bill is merely assigned and not negotiated C. Restrictive indorsement
B. The transferee acquired such title as the D. Qualified indorsement
transferor had therein
C. Transferee acquired the right to have the 22.An indorsement payable to the order of A is
indorsement of the transferor indorsed by A by merely affixing his signature
D. C is an assignee with the rights of a holder in without specifying the indorsee is a
due course.
A. Qualified indorsement
B. Restrictive indorsement
18. I promise to pay to the order of B, P10,000 from C. Blank indorsement
________ after date. Sgd. X D. Special indorsement
First statement. The note is negotiable because 23. An indorsement “Pay to A only” Sgd. B is a
after date refers to the date of issuance and date
of issuance can be inserted A. Restrictive indorsement
therein by the holder. B. Facultative indorsement
C. Special indorsement
Second statement. The note is negotiable because D. Qualified indorsement
this can be considered payable on demand.
24. An indorsement “Pay to A at his own risk”. Sgd.
A. First statement is true, second statement is false. B is a
B. First statement is false, second statement is true.
C. Both statements are true. A. Special indorsement
D. Both statements are false. B. Facultative indorsement
C. Qualified indorsement
D. Restrictive indorsement
25. An indorsement “Pay to A, notice of dishonor 31. A promissory note is indorsed to C who has
waived”. Sgd. B is a knowledge of the illegal consideration
between A, maker and B, payee. Later C
A. Conditional indorsement negotiates the note to D under circumstances
B. Restrictive indorsement which would make D a holder in due course. D
C. Qualified indorsement in turn indorses it to E and E back to C.
D. Facultative indorsement Which is correct?
26. A personal defense may be used against A. C can be considered a holder in due course
because he derived his title from E.
A. Holder in due course B. C cannot be considered a holder in due
B. Holder for value course.
C. Both A and B C. D, E and C are holders in due course.
D. Neither A nor B D. C can collect either from A or B but not from D
and E.
27. A real defense may be used against
32. One of the following indorsements is a valid
A. Holder in due course negotiation
B. Holder for value
C. Both A and B A. Pay to A P6,000 (amount of the instrument is
D. Neither A nor B P10,000)
B. Pay to A P7,000 and to B, the balance (amount
28. Three of the following are warranties of a of the note is P10,000)
qualified indorser, which is not? C. Pay to A P8,000 out of the amount of P10,000
of this note.
A. Capacity of prior parties D. Pay to A and B P10,000.
B. Instrument is valid and subsisting
C. He has good title 33. The following rules of construction apply where
D. Instrument is genuine and in all respect that it the language of the instrument is
purports to be ambiguous or there are omissions therein,
except:
29. An instrument which is originally negotiable
ceases to be negotiable when A. Where the instrument is not dated, it will be
considered to be dated as of the time it
A. Restrictively indorsed was issued.
B. Qualified indorsement B. Where there is a conflict between the written
C. The last indorsement is in blank and printed provisions of the instrument, the
D. The only indorsement is in blank written provisions prevail.
C. Where the instrument provides for the payment
30. One is not a condition to be a holder in due of interest without specifying the date from
course. which interest is to run, the interest runs from
the date of the instrument, and if the
A. That it is complete and regular upon its ace. instrument is undated, from the issue thereof.
B. That he became the holder of it before it was D. Where the sum payable is expressed in
overdue and without notice that it had been words and also in figures and there is
previously dishonored if such was the fact. discrepancy between the two, the sum denoted
C. That at the time it was negotiated to him it by the figures is the sum payable; but if the
has no infirmity or defect in the title of the figures are ambiguous or uncertain, reference
person may be had to the words to fix the amount.
negotiating it.
D. That he took it in good faith and for value.
34. The following instruments were presented to of one cavan of rice I bought from him. To
you for evaluation: B Sgd. C
D. Pay to the order of A P10,000 subject to the
I. “Pay to the order of A, P20,000”. terms and conditions of the sales contract
II. “Pay to the order of A, P20,000 or deliver to between him and the undersigned. To B
him a piano of the same value, at his option.” Sgd. C
III. “Pay to the order of A, P20,000 or deliver to
him a TV of the same value”. 38. The negotiable character of an instrument
IV. “Pay to the order of A a piano worth otherwise negotiable is affected by this provision
P20,000”. which
Assuming all the other requisites of negotiability A. Authorizes the sale of collateral securities in
are present, which of the foregoing instruments are case the instrument be not paid at maturity.
not negotiable? B. Authorizes a confession of judgment if the
instrument be not paid at maturity.
A. Instruments I and II C. Instruments II and III C. Gives the maker an election to require
B. Instruments I and III D. Instruments III and IV something to be done in lieu of payment of
money.
35. Consider these two statements: D. Waives the benefit of any intended for the
advantage or protection of the obligor.
I. An instrument originally payable to order
maybe converted into a bearer instrument. 39. The following instruments are negotiable,
except
II. An instrument originally payable to bearer
maybe converted into an order instrument. A. Pay to A or order P10,000 on or before
Christmas. To B Sgd. C
A. Both statements are true C. Only B. Pay to A or order P10,000 or deliver a cow at
statement I is true the option of the holder. To B Sgd. C
B. Both statements are false D. Only C. Pay to A or order P10,000 on or before June 12,
statement II is true 2010. To B Sgd. C
D. Pay to A or order P10,000, 30 days after death
36. Which of the following does not apply to a non- of E. To B Sgd. C
negotiable instrument?
40. A forged signature may transfer title if
A. The instrument can be assigned
B. The transfer of the instrument does not give the A. Procured by force or duress
transferee the right to collect. B. A mere simulation or counterfeit
C. The transferee becomes a holder. C. Unnecessary to one’s title as when a bearer
D. The transferee becomes an assignee. instrument contains a forged indorsement
D. Obtained by fraudulent use of carbon paper, or
37. The following are negotiable instruments, was given for other purpose but was used in
except converting the paper into a negotiable
instrument.
A. Pay to the order of A P10,000 on or before June
2, 2010 and reimburse yourself out of my 41. An indorsement “Pay to A for collection only”.
deposit with you. To B Sgd. C Sgd. B is a
B. Pay to the order of A P10,000 on or before June
12, 2010 and charge the same to my A. Qualified indorsement
account. To B Sgd. C B. Restricitve indorsement
C. Pay to the order of A P10,000 on or before June C. Special indorsement
12, 2010 in payment of the purchase price D. Facultative indorsement
42. An indorsement “Pat to A in trust for B”. ---------------------------------------------------------------
Sgd. B is a ---------------------------------------------
A. True; True C. True; False 2. I promise to pay to the order of B, P8,000 one
B. False; True D. False; False year after date in 5 month’s installments of P1,600
each, “with the privilege of discharging this note by
45. Which one of the following instruments is payment of principal less a discount of 5% within
negotiable? 30 days from the date thereof.”
Sgd. X
A. “I promise to pay B or order P20,000 if he will
pass the CPA board exam on May 2010. Statement 1. The note is negotiable because
(Sgd. A) although it is not dated, one year from date
B. “ I promise to pay B or order P20,000 in four will be one year from issuance thereof.
(4) installments”. (Sgd. A) Statement 2. The instrument is not negotiable
C. “I promise to pay B or order P20,000, 30 because the sum is not certain.
days after death of his father”. (Sgd. A)
D. “I promise to pay B P20,000”. (Sgd. A) A. True; False
B. False; True
C. Both statements are true.
D. Both statements are false
A. True; False
B. False; True
C. Both statements are true. 2.The following exceptions are the rights of a
D. Both statements are false holder in due course. Which is the exception?
10. I promise to pay to the order of B, P20,000 on A. He may enforce payment of the instrument
December 1, 2009 with costs and attorney’s fees for the full amount thereof against all parties
incurred for the collection of the debt. liable thereon.
B. He ma receive payment and if payment is in
Sgd. A due course, the instrument is discharged.
C. He holds the instrument subject to the
Statement 1. The instrument is negotiable because same defense as if it were non-negotiable.
the sum certain is ascertainable on the face of D. He may sue on the instrument in his own
the instrument. name.
Statement 2. The instrument is not negotiable 3.An indorser of a note or a bill is:
because the sum is not certain.
A. Secondarily liable
A. True; False B. Tertiary liable
B. False; True C. Primarily liable
C. Both statements are true. D. Not liable
D. Both statements are false
4.This is not negotiation of a negotiable instrument:
11. Due to Maria Santos P5,000 on December 1,
2009. A. Assignment
Sgd. A B. Delivery of a hearer instrument
C. Endorsement completed by delivery of an
Statement 1. This is a negotiable bill of exchange instrument payable to order
because it does not contain a promise to pay. D. Delivery of an instrument to the payee.
Statement 2. This is nevertheless a promissory note 5. A check drawn by the bank upon itself and
but it is not negotiable because it is payable to a third person.
payable to order.
A. Certified check C.Traveler’s check
A. True; False B. Cashier’s check D.Manager’s check
B. False; True
C. Both statements are true. 6. A issues a bill payable to the order of B. Later B
D. Both statements are false without endorsing the bill transfers for a
consideration said bill to C. The following
except one, are the valid effects of the transfer:
16. In a joint obligation, A, B and C are debtors of A. F can hold B and C liable but not D and E
joint creditors D, E and F in the amount of B. F can hold liable D and E but not B and C
P180,000. A’s obligation is: C. D’s indorsement passes title to E and F
making D liable as indorser
A. Pay D P60,000 D. F can hold all indorsers liable except D.
B. Pay D, E anf F, P180,000
C. Pay D P120,000 21. – A buys a diamond for P50,000 for which A
D. Pay D P20,000 issued a check. The diamond turned out to be
an ordinary glass.
By Diaz
- B obtained the signature of C for autograph
17. A real defense purpose. B wrote a promissory note above the
signature, then indorsed the note to E, a
A. Fraud in inducement holder in due course.
B. Absence or failure of consideration
C. Want of delivery of a complete instrument A. Both are real defenses
D. Minority B. Both are personal defenses
C. Personal defense; Real defense
18. A personal defense D. Real defense; Personal defense
A. He may sue on the instrument in his own - If a check is accepted at the instance of the
right holder, the drawers and indorsers are
B. He may receive payment and if payment is discharged.
in due course, the instrument is discharged
C. He can not recover on the instrument A. True; True C. True; False
D. He is entitled to the instrument but holds it B. False; True D. False; False
subject to the defenses as if it were non-
negotiable 27. Not primarily liable on the instrument
24. On January 28, 2010, A issues a bill payable to A. Maker of a promissory note
the order of B. On February 7, 2010, B without B. Acceptor of a bill of exchange
indorsing the bill transfers for a consideration said C. Drawer of a bill
bill to C. On February 15, 2010, D. Certifier of a check
B indorses the bill to C. C becomes a holder on
28. Which is not correct? The acceptor by accepting
A. February 7, 2010 and it is at that time that the instrument
the law will determine whether or not he is a
holder in due course. A. Admits the existence of the drawer, the
B. February 7, 2010 but the law will determine genuineness of his signature and his capacity and
on February 15, 2010 whether or not he is a authority to draw the instrument
holder in due course. B. Admits the existence of the indorser, the
C. February 15, 2010 but the law will genuineness of his signature and his capacity
determine on February 7, 2009 whether or not he is and authority to draw the instrument
a C. Admits the existence of the payee and his
holder in due course. then capacity to indorse
D. February 15, 2010 and it is at that time D. Engages that he will pay it according to the
that the law will determine whether or not tenor of his acceptance
he is a holder in due course.
29. Where the person not otherwise a party to the
25. A certificate of stock is not a negotiable instrument places thereon his signature in blank
instrument under the “Negotiable Instruments Law” before delivery he is liable as indorser, and if the
because it lacks the requirements of instrument is payable to the order of a third person
A. The instrument must be in writing and A. He is liable to the payee and to all
signed by the maker or drawer subsequent parties
B. It must be payable on demand, or at fixed or B. He is liable to all parties subsequent to the
determinable future time maker or drawer
C. It must be payable to order or bearer C. He is liable to all parties subsequent to the
D. It must contain an unconditional promise payee
or order to pay a sum certain in money D. He is not liable to any party
30. Where the person not otherwise a party to the
instrument places thereon his signature in blank
before delivery he is liable as indorser, and if the
instrument is payable to the order of the maker or
drawer, or its payable to bearer