THE NEGOTIABLE INSTRUMENTS

ACT No. 2031

February 3, 1911 enacted/legislated
March 4, 1911 published in the Official Gazette
June 2, 1911 after 90 days: the law took effect
PRINCIPAL CHARACTERISTICS
Negotiability allows it to go or be passed from one hand to another similar to
money
Accumulation of Secondary contracts increasing the chances of the holder to
collect
the amount payable on the instrument

FUNCTIONS & IMPORTANCE

1 Substitute for money
2 Increases the purchasing medium in circulation
3 Intended like money to have a definite value to be taken at sight w/o the
need if investigating into the outside facts
4 When genuine, it ought to serve as the equivalent of money