Quiz No. 1 - Nego

This pertains to the status of the agreement and relates to the contract:

• Sustainability

• Negotiability

• Validity

• Enforceability

An instrument which is not dated will be considered dated as at the time of:

• Acceptance

• First indorsement

• Second indorsement

• Issuance

An instrument payable to bearer may be negotiated through any of the following means, except by:

• Special indorsement plus delivery

• Mere delivery

• Blank indorsement plus delivery

• No delivery is required as long as there is an indorsement, whether blank or special

Assuming all the other requisites of negotiability are present, which of the following instruments is not payable to bearer?

• “Pay to the order of Cash”

• “Pay to the order of Jose Rizal"

• “Pay to Pedro Padernal, bearer”

• “Pay to Pedro Padernal or bearer"

Which of the following is a valid address to a drawee so as to make the instrument negotiable?

• To Rodrigo Duterte and another drawee named Leni

• To Rodrigo Duterte and Leni Robredo

• To Rodrigo Duterte or Leni Robredo

• To Rodrigo Duterte or Leni Robredo

An instrument reads as follows:

November 30, 2020

I promise to pay to the order of Yanet Garcia the sum of P40,000.00 if she places first in the May 2021 CPA Examination.

(Sgd.) Joel Sanchez

• The instrument is valid and negotiable

• The instrument is valid but not negotiable

• The instrument is invalid but negotiable

• The instrument is invalid and not negotiable

An instrument reads as follows:

I promise to pay to the order of Tony Hernandez the sum of P30,000.00 on December 20, 2020.

(Sgd.) Jones Veranda (Sgd.) Lorena Gapuz

(Sgd.) Rolly Cruz

On December 20, 2020, Tony Hernandez may collect from Lorena Gapuz:

• P30,000.00

• P20,000.00

• P10,000.00

• Nothing, because the note is void since it reads “I promise to pay” but it was signed by three makers

Which of the following omissions on the face of an instrument will render it non-negotiable?

• The omission of the date of issue

• The omission of any statement that value has been given

• The omission of the place where the instrument was drawn

• The omission of the signature of the maker above his typewritten name

The attribute of a negotiable instrument which allows to be passed from one hand to another similar to money, so as to give a holder in due course the right to hold the instrument free from defect of title of prior parties, and themselves, and to enforce payment of the instrument for the full amount thereof against all parties liable thereon is known as:

• Assignability

• Negotiability

• Transferability

• Acceptability

Which of the following is not a promise to pay, and thus will make an instrument non-negotiable?

• “I agree to pay P"

• "I bind myself to pay P"

• “I acknowledge my debt to P"

• “I oblige myself to pay P"