1. M made a promissory note authorizing P to fill up the blank space for himself in the amount of P10,000.00.

Contrary to Ms instruction, P filed up the amount of P15,000.00 and indorsed the note to A. A then indorsed it to B, who knew of Ms instruction to P to fill it up only for P10,000.00.

2. R signed a blank check which he placed inside the drawer of his office table . X, an officemate, stole the check and filled up the amount of P25,000.00 and a fictitious name as payee. He then indorsed the check in the payees name and negotiated it to A. A indorsed it to B, a holder in due course.

3. M made a promissory note complete of all material particulars and kept it in his drawer. X stole the note and indorsed it to A. A then indorsed it to B, then B to C, who knew that X stole the note from M.

4. M made a promissory note to P or order. P indorsed it to A. X stole the note and indorsed it to B by forging As signature as indorser. B indorsed it to C, the C to D, holder in due course. What are the liabilities of the parties to the instrument?

5. Assume the same facts in the immediately preceding problem, except that when D asked A if it was his signature on the note, A acknowledged that it was his signature. What are the liabilities of the parties to the instrument?

6. M made a promissory note payable to P or bearer and delivered the same to P, who in turn indorsed it specially to A. X fraudulently obtained possession of the note, forged As signature by specially indorsing the note to B. B delivered it without any indorsement to C.

Who among the parties may be held liable to C?

7. R drew an unsigned check for P30,000.00 and placed it in his drawer. P stole the check, forged Rs signature as drawer and placed his name as payee, then indorsed the check to A, holder in due course. S Bank, the drawee-bank, encashed it when A presented it for payment.
a. Is the bank correct in debiting Rs account for the check? Explain briefly. b. Does S bank have a right to recourse against A? Explain briefly.

8. R drew a check for P50,000.00 and delivered the same to P, the payee. X fraudulently acquired the check from P, forged Ps signature as indorser, then indorsed the check to A, holder in due course. A presented the check for payment to S Bank, the drawee-bank, who paid the amount thereof. a. Is S Bank correct in debiting Rs account for the check? Explain briefly. b. Does S Bank have a right of recourse against A? Explain briefly.