Bar Questions in Negotiable Instrument Summary of Bar Examination Cases MERCANTILE LAW REVIEW Negotiable Instruments Law GENERAL PRINCIPLES DOC

Title	Bar Questions in Negotiable Instrument Summary of Bar Examination Cases MERCANTILE LAW REVIEW Negotiable Instruments Law GENERAL PRINCIPLES
Author	Edmark Arcol
File Size	58 KB
File Type	DOC
Total Downloads	301
Total Views	836

Summary

Description

Bar Questions in Negotiable Instrument Summary of Bar Examination Cases MERCANTILE LAW REVIEW Negotiable Instruments Law GENERAL PRINCIPLES A. THEORY 01. What are the requisites of a negotiable instruments? [1953, 1954, 1964, 1968, 1989, 1991, 1996, Bar Examinations]. 02. What constitutes a holder in due course? [1996, Bar Examinations]. 03. Can a bill of exchange or a promissory note qualify as a negotiable instrument if - a.It is not dated; or b.The date and the month, but not the year of its maturity is given; or c.It is payable to cash; or d.It names two alternative drawees [1997, Bar Examinations]. 04. A promissory note reads as follows: "I promise to pay Gabriela Silangan P1,000.00 three years after the unconditional withdrawal of the U.S. of its military bases in the Philippines." Discuss the negotiability or non-negotiability of the note above [1966 Bar Examinations]. 05. Can the payee in a promissory note be a 'holder in due course' within the meaning of the Negotiable Instruments Law? [2000 Bar Examinations]. 06. How do you treat a negotiable instrument that is so ambiguous that there is a doubt whether it is a bill or a note? [1999, Bar Examinations]. 07. When a signature is so placed upon a negotiable instrument that it is not clear in what capacity the person making the same intended to sign, what is his liability? [1946, Bar Examinations]. 08. When a negotiable instrument contains the words "I promise to pay" and is signed by two or more persons, what is their liability, joint or solidary? Explain [1946, Bar Examinations]. B. TESTS OF NEGOTIABILITY 09. MP bought a used cellphone from JR. JR preferred cash but MP is a friend so JR accepted MP's promissory note for P10,000.00. JR though of converting the note into cash by indorsing it to his brother KR. The promissory note is a piece of paper with the following hand-printed notation: "MP WILL PAY JR P10,000.00 IN PAYMENT FOR HIS CELLPHONE ONE WEEK FROM TODAY". Below this notation is MP's signature with "8/1/00 next to it, indicating the date of the promissory note. When JR presented MP's note to KR, the latter said it was not a negotiable instrument under the law and so could not be a valid cash substitute. JR took the opposite view, insisting on the note's negotiability. You are asked to referee . Which of the opposing views is correct? Explain [2000 Bar Examinations]. 10. Perla bought a motor car payable in installments from Automotic Company for P250,000.00 with a P50,000.00 downpayment. She executed a promissory note for the balance which reads: For value received, I promise to pay Automotive Company or order at its ofce in Legaspi City, the sum of P200,000.00 with interest at 12% per annum, payable in equal installments of P20,000.00 for ten (10) months starting 21 October 2002. SGD Perla Manila, 21 September 2002 Automotive Company subsequently indorsed the note to Reliable Finance Corporation which financed the purchase. Perla defaulted in the payment of her installments. Is the above promissory note a negotiable instrument? Explain [1992 Bar Examinations]. 11. Romeo had P100,000.00 in his current account at Matatag Banking Corporation. Romeo learned that his enemy had hired a contract killer to liquidate him. Fearful of his life, he mailed to his fiance, Juliet, a check for his P100,000.00 in the bank. The check was payable to Juliet or order and was accompanied by a letter stating that he was giving her his money out of his great love for her and because something would happen to him anytime now. Juliet presented the check for payment but the bank refused to honor it. Does Juliet have any right of action against the bank? Because of the humiliation she sufered from the bank, Juliet broke of her engagement with Romeo. Does Romeo have a right of action against the bank? Explain [1986 Bar Examination]. 12. Explain whether or not the following instrument is negotiable. P1,000.00 Manila, October 5, 1970 I acknowledge to have received from Jose Cruz one thousand pesos (P1,000.00) which I promise to pay on demand or in five months from date with one percent interest per month payable within...