[LMGTRAN] 37th LLS Quizzer

What is a requisite for an instrument to be considered negotiable under the Negotiable Instruments Law?

• It must be signed by the payee.

• It must contain an unconditional promise to pay a sum certain in money.

• It must be notarized.

• It must be issued by a bank.

Which of the following is NOT a common form of negotiable instrument?

• Promissory note

• Bill of exchange

• Certificate of deposit

• Check

In a bill of exchange, who is the drawer?

• The person who orders the payment.

• The person who pays the bill.

• The person to whom payment is made.

• The bank that processes the payment.

Which condition allows for the enforcement of an instrument only upon the occurrence of a specified event?

• Resolutory Condition

• Conditional Payment

• Suspensive Condition

• Unconditional Promise

What does 'holder in due course' refer to?

• A person who receives the instrument as a gift.

• A person who has signed the instrument.

• A person who has knowledge of prior claims against the instrument.

• A person who acquires the instrument without any defect in title.

Which requirement does not belong in the WUDOD mnemonic for negotiability?

• Written and signed.

• Duration period.

• Unconditional promise.

• Payable on demand or at a determinable time.

What does indorsement refer to in negotiable instruments?

• Refusing payment on an instrument

• Signing over an instrument to another party

• Modifying terms on an existing contract

• Creating new obligations under law

Which of the following is NOT a characteristic of negotiable instruments?

• They are considered legal tender.

• They can be transferred by negotiation.

• They provide rights to the holder in due course free from defenses.

• They can serve as proof of transactions.

Jeo issued a promissory note to Josh stating, 'I promise to pay Josh P50,000 on the condition that I receive my tax refund.' Which of the following statements is true regarding this promissory note?

• The note is negotiable because it is in writing and signed.

• The note is valid as a negotiable instrument regardless of conditions.

• The note is negotiable because it specifies a sum certain.

• The note is not negotiable due to the conditional promise.

Trina, a business owner, wrote a check to her supplier for P40,000. However, she forgot to sign it before handing it over. What is the status of this check?

• The check is valid and can be cashed by the supplier.

• The check can be cashed if the supplier presents it to Alex for signature.

• The check is invalid due to lack of signature.

• The check is valid as long as it has the necessary amount written on it.