Nego-go-go-go

A negotiable instrument must be all the following, except:

• must be in writing and signed by the maker or drawer

• must not contain conditional promise or order to pay a sum certain in money

• must be payable on demand or whenever

• must be payable to order or bearer

All are parties in a bill of exchange, except:

• drawer

• drawee

• payee

• maker

Which is wrong:

Sec. 6- Omissions; seal; particular money.- The validity and negotiable character of an instrument are not affected by the fact that-

• It is antedated

• Does not specify the value given, or that any value has been given therefor

• Does not specify the place where it is drawn or the place where it is payable

• Bears a seal

A note that does not specify the place of payment is presumed to be payable at the place of residence of the drawer.

• True

• False

A negotiable instrument is not negotiable if written in a foreign language.

• True

• False

Reiner makes a not for PhP1,000 with the name of the payee in blank and keeps it in his drawer. Chester steals the note and inserts his name as payee and then endorses the note to Eva, Eva to Tricia, Tricia to Thin, and Thin to Mabes, a holder in due course. Can Mabes enforce the note against Rein?

• No, pursuant to Sec. 15

• No, pursuant to Sec. 23

• Yes, pursuant to Sec. 15

• Yes, pursuant to Sec. 23

Money order is NOT negotiable.

• True

• False

Where a signature is placed upon the instrument that is not clear in what capacity the person making the same intended to sign, he is deemed to be a(n) _________

• Drawer

• Maker

• Indorser

• Payor

Where the instrument is ambiguous that there is a doubt whether it is a bill or a note, the holder may treat it as _________ at his election

• bill

• note

• either

• neither

Negligence may be used as a defense against forgery.

• True

• False