St.

Mary’s College of Meycauayan

COLLEGE DEPARTMENT
Second Semester, AY 2018-19
Final Exam/ Revalida Exam
LAW 2 (Negotiable Instruments Law)

Name_________________________ Date________________
Course________________________

PRELIMINARY INSTRUCTION: This final exam will be a take home exam. It

will be purely essay questions. You are allowed to open any reference.
However, do not ever share your answers to any of your classmates.
Anyone caught having the same answers will mean failure of the class.

The exam will be sent to you on March 16, 2020 (Monday). All
answers must be sent to my e-mail (luisalfonsoartaiz@yahoo.com) with
this format:

To: luisalfonsoartaiz@yahoo.com
Subject: LAW 2 Final Exam- SMCM ; (Surname, Complete First
Name)

You may use either Microsoft Word or Pages (for Mac users)and
attach the document in your e-mail and send it to me on or before
March 19, 2020 6:00 p.m. Use the font Courier New, size 14, and
justified. Those students who will fail to follow the instruction will
be given zero (0) for the final exam. No late final exam will be
entertained.

INSTRUCTION: Answer each question briefly and concisely. I do not need

long and novel answers without legal basis. Your grades will depend on
the following criteria: Logic, Legal Basis and Proper Grammar.Since
this is an open final exam, I will be VERY STRICT in checking.

1-20. A (maker) executed a promissory note payable to the order of B,

payee. B lost the note. X found it, signed the name of B and
negotiated the instrument to C; C to D; D to E, the present holder.

1. What kind of defense is forgery?

2-4. Can E (holder) go to A (maker) to enforce liability? Why or
why not?
5-7. Can E (holder) go to X to enforce liability? Why or why not?
8-10. Can E (holder) go to C or D to enforce liability? Why or
why not?
11-13. Explain the concept of “cut-off rule” in forgery cases.
14-16. Who are those precluded from setting up the defense of
forgery? Give three.
17-18. Who is ultimately liable in case of forgery of a check and
the payee’s signature is forged?
 19-20. Who is ultimately liable in case of forgery of a check and
the drawer’s signature is forged?

21-30. The promissory note provides:

_____________________
(no date)

I promise to pay Maria or order the sum of P1,000,000 thirty (30)

days after date.

(Sgd) Jose

21-22. Is the date of the instrument important for purposes of

negotiability of the instrument? Why or why not?
23-25. In this case, what can Maria do in order to fix the
liability of Jose?
26-30. Explain the effects of insertion of a wrong date.

31-40. A issued a promissory note in favor of B or order payable on

December 10, 2006 and left the amount blank but with the specific
instruction given to place an amount not exceeding P10,000.

31-40. B placed the amount of P100,000 and negotiated the

instrument to C. Can C go against A?

41-50. A executed a promissory note in favour of B or order but left

the amount blank and kept the instrument in his desk. B stole the
note, entered the sum of P10,000 and negotiated the instrument to C; C
to D; D to E (present holder).

41-44. Supposing that E is a holder in due course, can he go to A

and ask for the payment of P10,000? Why or why not?
45-48. Supposing that E is a holder in due course, can he go
against C or D? Why or why not?
49-50. The given problem refers to an incomplete and undelivered
instrument. What kind of defense is this?

51-56.

51-52. When an instrument containing the word “I promise to pay”

is signed by two or more persons, what is the nature of liability?
53-54. When an instrument containing the word “We promise to pay”
is signed by two or more persons, what is the nature of liability?
55-56. Where a signature is so placed upon the instrument that it
is not clear in what capacity the person making the same intended to
sign, he is deemed to sign in what capacity?
57-62. The instrument provides:

March 15, 2019

For value received, I promise to pay to the order of B P10,000 on

demand.

(Sgd) C

To: D

57-62. In the given instrument, there is ambiguity whether it is

a promissory note or bill of exchange. There is a promise to pay which
signals it is a promissory note but there is a drawee (D) which
signals that it is a bill of exchange. In this case, how would you
treat the instrument? A promissory note or a bill of exchange? Why?

63-80.

63-67. What are the requisites required under the law for an
instrument to be considered as negotiable?
68-71. Differentiate a promissory note and a bill of exchange.
Cite two distinguishing factor.
72. The instrument provides: “Pay to A or bearer P10,000.” Is
this a negotiable or non-negotiable?
73. The instrument provides: “Pay to bearer or A P10,000.” Is
this negotiable or non-negotiable?
74-78. What constitutes certainty as to sum?
79-80. Give two examples of a negotiable instrument which is
payable to bearer.

81-84.

The law provides that if a person authorizes another to sign an

instrument for and in his own behalf, that is good as if he signed the
instrument personally. What are the requisites to negative personal
liability of an agent?
 P100,000 Manila,
Philippines
April 30, 2016

I promise to pay to the order of Pedro the sum of One

Hundred Thousand Pesos (P100,000), payable thirty (30) days after date.

(Sgd) Pablo
85-95. Pedro wanted to borrow money from Juan. However, Juan was
willing to give the loan only if Pedro can get Pablo to sign a
promissory note in his favor. Hence, without receiving any valuable
consideration, the following promissory note was extended by Pablo:

85-87. What are the requisites to be an accommodation party?

88-89. Who is the accommodation party in the given instrument?
90. In what capacity didi the accommodation party sign?
91-92. Who is the accommodated party in the given instrument?
93. Who is the holder for value in the given instrument?
94-95. In the event Pablo pays the instrument, he is entitled to
get reimbursement from whom?

96-100. A executed a promissory note in favour of B who is a minor. B

(minor) indorsed the note to C then C to D (present holder).

96-98. Can the minor validly indorse the instrument to C?

99-100. Can D (present holder) go after B (minor)?