Tomas del Rosario College

Capitol Drive, San Jose, Balanga City

Telefax No: (047) 791-6152; Tele No: (047) 791-6082

Department: BUSINESS ADMINISTRATION

Course Code: LAW 4

Course Title: Negotiable Instruments Law

I. Course Description
This course deals with the provisions of the Negotiable Instruments Law (Act No. 2031). It includes discussions on the following topics:
 Concept of Negotiable Instrument
 Form and Interpretation of Negotiable Instruments
 Negotiation
 Rights of Holders
 Liability of Parties
 Defenses
 Enforcement of Liability
 Discharge of Instruments
 Rules Relating to Checks
II. Course General Objectives
 To equip the students with adequate knowledge of the Law on Negotiable Instruments and various Jurisprudence applying its provisions in order to
prepare them for the CPA Board Exam and make them competent professional practitioners in their chosen field of Accountancy.
Credit : 3 Units
Time Allotment : 54 hours (18 weeks)

Vision: “Truth and Goodness in Man and for all others through Education” Mission: Produce through a responsive curriculum, morally upright, committed
and competent graduates capable of meeting the growing human resources
needs in the profession, government, business, industry and home.
 Tomas del Rosario College
Capitol Drive, San Jose, Balanga City
Telefax No: (047) 791-6152; Tele No: (047) 791-6082

III. COURSE CONTENT

Teacher-Learner Assessment
Time Frame Topics Intended Learning Outcomes
Activities Methods/Tasks
1 class meeting Concept of Negotiable  Students must be able to determine the different Lecture a class Recitation
Instruments functions a features of a negotiable instrument participation
 Students must be able to distinguish the difference of a
negotiable instrument to non-negotiable one
3 class meetings Form and  Students must be able to enumerate the requisites of
interpretation of negotiable found in Section 1 of the NIL
negotiable instruments  Students must be able to identify the negotiable
instrument from non-negotiable instrument by applying
section 1 to 10 N
 Students must be able to distinguish a personal defense
from real defense
 Students must be able to determine whether a holder
can collect payment from the partly primarily liable
under the following instances:
- incomplete but undelivered Instrument (Section 15)
- incomplete but delivered instrument (Section 14)
 Students must be able to apply the rules on statutory
construction found in section 17 in case of ambiguities
appearing in the face of negotiable instrument
1 class meeting Forgery  Students must be able to determine the instances where Lecture and class Written
a hold can collect to the party primarily and participation examinations and
secondarily liable instances where forgery may be oral recitations
raised as a defense
2 class meetings Negotiation  Students must be able to define negotiation and Lecture and class Written
distinguish from mere assignment of rights/credit participation examinations and

Vision: “Truth and Goodness in Man and for all others through Education” Mission: Produce through a responsive curriculum, morally upright, committed
and competent graduates capable of meeting the growing human resources
needs in the profession, government, business, industry and home.
 Tomas del Rosario College
Capitol Drive, San Jose, Balanga City
Telefax No: (047) 791-6152; Tele No: (047) 791-6082

 Students must be able to know how a valid oral recitations

indorsement is mad
2 class meetings Rights of Holders  Students must be able to enumerate the requisites for a Lecture and class Written
holder be considered a holder in due course (Section participation examinations and
52) oral recitations
 Students must be able to distinguish the rights of a
holder in course from a holder that is not a holder in
due course
 Students must be able to apply the effects of various
defenses the rights of a holder
 Students must be able to apply to Shelter Rule
2 class meetings Liability of Parties  Students must be able to distinguish the difference
between primary and secondary liability
 Students must be able to distinguish liability from
warranties
 Students must be able to enumerate the various
warranties of following parties:
- Maker
- Drawer
- Acceptor
- indorsers
- parties negotiating by mere delivery
 Students must be able to determine whether a party is
liable to because of his/her warranty under the NIL
3 meetings Enforcement of  Students must be able to identify the necessary steps Lecture and class Written
Liability that must be undertaken by a holder in order to enforce presentation examinations and
payment to part primarily liable and in the event of oral recitations
dishonor to parties secondary liable

Vision: “Truth and Goodness in Man and for all others through Education” Mission: Produce through a responsive curriculum, morally upright, committed
and competent graduates capable of meeting the growing human resources
needs in the profession, government, business, industry and home.
 Tomas del Rosario College
Capitol Drive, San Jose, Balanga City
Telefax No: (047) 791-6152; Tele No: (047) 791-6082

 Students must be able to determine the correct

remedies to apply in case the note was dishonored by
the party primarily liable pay
1 meeting Discharge of  Students must be able to identify the instances where Lecture and class Written
Instrument instrument is considered discharged participation examinations and
oral recitations
2 meetings Rules of Checks  Students must be able to distinguish the different kinds Lecture and class Written
of check participation examinations and
 Students must be able to define the relationship oral recitations
existing between a drawer, drawee and payee
 Students must be able to determine the correct
remedies available to a holder of a check in case the
same was dishonored

Prepared by: Approved:

VANESSA L. VINLUAN MERCEDES G. SANCHEZ, Ed. D.

Acting College Secretary Vice President for Academics Student Affairs
and Extension Services

Vision: “Truth and Goodness in Man and for all others through Education” Mission: Produce through a responsive curriculum, morally upright, committed
and competent graduates capable of meeting the growing human resources
needs in the profession, government, business, industry and home.