LAW ON NEGOTIABLE

INSTRUMENTS
(WORKBOOK)
QUESTIONS
1. What is the governing law of the
Law on Negotiable Instruments?
2. When was the effectivty?
3. What is a Negotiable Instrument?
4. What are the functions &
importance of a negotiable
instrument?
5. What are characteristics/features
of a Negotiable Instrument?
6. How do you construe an ambiguous
instrument?
7. Define the following:
a. Bill of Exchange
b. Check
c. Promissory Notes
d. Trade acceptance
e. Letters of Credit
f. Treasury warrant
g. Postal money order
h. Bill of lading
i. Certificate of stock
j. Warehouse receipt
8. What is the difference between
Negotiable Instrument and
Negotiable Document of Title?
9. Difference between a Promissory
Note and a Bill of Exchange.
10. Difference between a Check and a
Bill of Exchange.
11. Requisites of a Negotiable
Instrument.
12. Determination of negotiability.
13. What constitute a sum certain in
money?
14. When is an instrument payable on
demand?
15. When is an instrument is payable
upon a determinable future time?
16. When is an instrument payable to

ANSWERS:

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order?
17. When is an instrument payable to
bearer?
18. What are the additional provisions
that do not affect negotiability of
an instrument?
19. When may date be inserted?
20. What is the presumption as to date?
21. What is the liability of a person
signing in trade or assumed name?
22. What is effect of forgery in
signature?
23. What are the liabilities of parties
on a forged instrument?
24. What is/are the effect of
Incomplete but Delivered
Instrument?
25. What is/are the effect/s of an
Incomplete and Undelivered
Instrument?
26. What is/are the effect/s of
Complete but Undelivered
Instrument?
27. What is Per Procuration and its
effect?
28. What is an accommodation party
and its effect?
29. What constitutes negotiation?
30. Kinds of Indorsements:
a. Special (Sec. 34)
b. Blank (Sec. 35)
c. Restrictive (Sec. 36)
d. Qualified (Sec. 38)
e. Conditional (Sec. 39 NIL)
31. What are effects of indorsing an
instrument originally payable to
bearer?
32. What are the Effects of a transfer
without endorsement?
33. What are the Rights of a holder of
an instrument?
34. What constitutes a holder in due
course?
35. What are the rights of a holder in
due course?
36. What is a Personal or equitable
defense? Give examples.

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37. What is a Real or legal defense?

Give examples.
38. What are the Rights of a holder not
a HDC?
39. What are the liabilities of a maker?
40. What are the liabilities of a
drawer?
41. What are the liabilities of an
acceptor?
42. When is a person deemed an
indorser?
43. What are the liabilities of an
irregular indorser?
44. What are the warranties where
negotiattion is by delivery or
qualified endorsement?
45. What are Warranties of a general
indorser?

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