NEGOTIABLE INSTRUMENTS LAW

MULTIPLE CHOICE: Select the best answer by writing the letter of your choice.
______1. An instrument which is not dated will be considered dated as at the time of:
a. acceptance.
b. first indorsement
c. last indorsement
d. issuance.

_____2. “I promise to pay P or his order the sum of 10,000 30 day after death of X”. This is
an
instrument payable:
a. at a determinable future time.
b. on demand.
c. upon fulfillment of a condition.
d. at an indefinite time, hence, non-negotiable

_____3. Who among the following is the holder of a negotiable instrument originally payable
to
order?
a. The original payee who has negotiated the instrument.
b. The indorsee who is in possession of the instrument.
c. The possessor of the instrument to whom the instrument was delivered without any
indorsement.
d. The indorsee who has negotiated the instrument.

_____4. An instrument payable to bearer may be negotiated through any of the following
means,
except by:
a. special indorsement plus delivery.
b. mere delivery.
c. blank indorsement plus delivery.
d. No delivery is required as long as there is an indorsement, whether blank or special.

_____5. The separate paper attached to an instrument on which an indorsement or acceptance

of
the instrument is written is called:
a. allonge.
b. memorandum
c. enclosure
d. attachment

_____6. The attribute of a negotiable instrument which allows it 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 free from defenses available to
prior parties among themselves, and to enforce payment of the instrument for the full
amount thereof against all parties liable thereon is known as:
a. Assignability.
b. Negotiability.
c. Transferability.
 d. Acceptability.

_____7. State the following sections based on the Act No. 2031, also known as The
Negotiable Instruments Law (5 pts. each)

a. Section 1
b. Section 2
c. Section 3
d. Section 4
e. Section 5
f. Section 6
g. Section 7
h. Section 8
i. Section 9
j. Section 10

“Be strong and courageous. Do not be frightened, and do not be dismayed, for the Lord your
God is with you wherever you go.” (Joshua 1:9)