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Midterm Examination
Law on NEGOTIABLE INSTRUMENTS
August 15, 2015
This exam contains 25 Multiple Choice Questions (2pts each
question), 10 True or False Questions, 15 Identification Questions, 20
Enumeration Questions and 20 pts. worth of essay questions.
Write the letter or the correct response after each questions.
Answer the enumeration questions at the back portion of the 2 ndpage
of this examination and the Essay questions at the back portion of the
1st page. STRICTLY NO ERASURES AND ALTERATIONS!
This is a closed-book, closed notes examination. However, cell
phones are not permitted for use in any way. Any discussion or
otherwise inappropriate communication between examinees, as well as
the appearance of any unnecessary material or cell-phone usage, will
be dealt with severely. Violations may result in FAILURE for this exam.
This exam is worth a total of 115 points.
Print your name, section and SR code at the top of each page in
the upper left hand corner.
Good Luck!
I.
MULTIPLE CHOICE (50%)
FOR ITEMS 1-6
August 16, 2015
Pay to the order of Randel Luterte the sum of P20,000
(Sgd.)Ralph Montecer
To: Christian Madalogdog
1. The foregoing statement is a:
A. Bill of Exchange
B. Promissory Note
C. Letter of Credit
D. Check
e. None of the above
2. The instrument is:
A. Valid and negotiable
B. Valid but not negotiable
C. Not valid but negotiable
D. Not valid and not negotiable
3. The drawer in the above instrument is
A. Christian Madalogdog
B. Ralph Montecer
C. Randel Luterte
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LAW 104
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20. Assuming that the other requisites for negotiability are present, which of the
following instruments is not negotiable?
a. I promise to pay Rain or order P10,000 on May 2, 2015 with interest
B. I promise to pay Rain or order P10,000 in five installments
C. Pay to Rain or bearer P10,000 sxty days after date with interest at 1% per month
D. I promise to pay Rain or order P10,000 on April 30, 2015. In case of default, I bind
myself to pay attorneys fees.
21. Which of the following instrument is negotiable?
a. Pay to Ben or order P10,000 in two installments beginning on October 1,
2015. (Sgd.) Mark To: Chichi
b. Pay to Ben or order P10,000 in two equal installments. (Sgd.)Mark
To:Chichi
C. Pay to Ben or order P10,000 in two equal monthly installments.
(Sgd.)Mark
To: Chichi
D. Pay to Ben or order P10,000 in two equal monthly installments beginning
on October 1, 2015. (Sgd.)Mark
To:Chichi
22. If the promise or order in an instrument is to pay a sum certain in money or to
perform another act, the nstrument is negotiable if:
a.
b.
c.
d.
The
The
The
The
MIDTERM EXAMINATION
LAW 104
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3. Any holder may insert therein the true date of issue or acceptance, and the
instrument shall be payable accordingly.
4. Delivery is essential to validity.
5. The date is not essential. If dated, such date is deemed a prima facie evidence
that it is the true date of the making, drawing, acceptance or indorsement of the
instrument
6. The holder has a prima facie authority to complete it.
7. A signature on a blank paper delivered by the person making the signature in
order that the paper may be converted into a negotiable instrument operates as a
prima facie authority to fill it up as such for any amount.
8. Valid delivery is conclusively presumed.
9. The law contemplates that the condition is orally or verbally conveyed to the
holder upon delivery, because of the rule that the negotiability is determined only
upon the face of the instrument.
10. Only persons whose signatures appear on an instrument are liable thereon.
III.
IV.
ENUMERATIONS (20%)
1-7
8-14
15-17
18-20
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LAW 104
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V.
MIDTERM EXAMINATION
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Examinations are formidable even to the best prepared, for the greatest fool
may ask more than the wisest man can answer.
Prepared by:
Noted:
Recommending Approval:
Approved by:
MIDTERM EXAMINATION
LAW 104
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