Tuesday, January 10, 2006

Negotiable Instrument

Today I have answered multiple choice questions on Negotiable Instruments Reviewer by RM Harina and I got 68 out of 90 questions right or a rate of 76%. I took the exam for one hour only and majority of my incorrect answers are on the topics of warranties of qualified endorsement and questions on acceptance. Guess I have to review more. Also, I have to be more careful in answering specially those tricky ones.

Phrase of the Day

Check Kiting - a procedure whereby checks written on accounts in separate banks are used to generate short-term purchasing power through the use of bank's credit.

Question of the Day

Is the following instrument negotiable?:

Please pay to Jose Santos or bearer the sum of P60,000.

(Sgd) Pedro Gil


  1. I think its negotiable coz all the conditions of negotiablity are present.

  2. andrea,

    I think so to but the reviewer of Harina say it isn't negotiable. I'll ask my professor why.

  3. No. It is not negotiable. The instrument do not complies with requirements of negotiability under sec. 1 of the N.I.L., the instrument is not payable on demand or at fixed or determinable future time. Hence, not negotiable.

  4. As an altenative answer.

    Yes. It is negotiable. The instrument complies with Sec. 1 of the N.I.L.The fact that there is no mention as when it is payable, the instrument is considered payable on demand, under Sec. 7 (b) of the N.I.L. Hence, negotiable.

  5. no it is not negotiable, because the word "please" is not necessary, notwithstanding it comprises the requisites for negotiability.

  6. type of negotiable instrument in oman