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    Abnormal Negotiable Instruments

    Uploaded by

    darlene flores

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Abnormal Negotiable Instruments

    Uploaded by

    darlene flores
    10 views2 pages

    Copyright

    © © All Rights Reserved

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    PDF, TXT or read online from Scribd

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    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    10 views2 pages

    Abnormal Negotiable Instruments

    Uploaded by

    darlene flores

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Abnormal negotiable Instruments

    1. An indorsement "Pay to A for collection only" Sgd.B is a


    Restrictive indorsement
    2. An indorsement "Pay to A at his own risk" Sgd. B is a
    Qualified indorsement
    3. A forged signature may transfer title if
    Unnecessary to one's title as when a bearer instrument contains a forged indorsement.
    4. A delivers to B a promissory note payable to the order of B without specifying the
    amount but A authorized B to place the amount of P500 in the promissory note which
    was signed by A. B, in violation of the instruction of A placed P5,000 as the amount
    payable. Later B indorsed the note to C. The holder C
    Cannot recover from A but can recover from B if he knows the defect
    5. A issued a negotiable promissory note to B with the amount in blank, but with authority
    given to B to fill up the blank for P100,000. B filled it up for P400,000 and negotiated it to
    Can collect P400,000 from A or P400,000 from B
    6. An indorsement "Pay to A only" Sgd. B is a
    Restrictive indorsement
    7. A executes a check drawn against XYZ bank and payable to the order of B. Later C,
    stole the check and forged the endorsement of B. C deposited the check in ABC bank by
    way of savings deposits. When the check was cleared, C withdrew the money from ABC
    bank. Who shall bear the loss?
    XYZ, because the indorsement of the payee was forged
    8. A promissory note reads:
    "I promise to pay to the order of B P10,000, 30 days after date". Sgd. A
    A issued the promissory note to B who indorsed it to C. Then X stole the note from C,
    forged the signature of C and negotiated it to D and D to E and E to F, the holder.
    Questions
    :Q1: Can F collect from A on maturity?
    Q2: If after giving the proper notice of dishonor to all the parties secondarily liable, can F
    collect from B?
    Both answers are correct
    9. An indorsement payable to the order of A is indorsed by A by merely affixing his
    signature without specifying the indorsee is a:
    Blank indorsement
    10. The following rules of construction apply where the language of the instrument is
    ambiguous or there are omissions therein, except:
    Where the sum payable is expressed in words and also in figures and there is
    discrepancy between the two, the sum denoted by the figures is the sum payable; but if
    the figures are ambiguous or uncertain, reference may be had to the words to fix the
    amount.
    11. A promissory note reads:" I promise to pay to the order of B P10,000, 30 days after
    date". Sgd. A A issued the promissory note to B who indorsed it to C. Then X stole the
    note from C, forged the signature of C and negotiated it to D and D to E and E to F, the
    holder.
    Questions:
    Q1: Can F collect from C?
    Q2: Against whom can F collect?
    Both answers are correct
    12. An indorsement "Pay to A without recourse". Sgd. B is a
    Qualified indorsement
    13.

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