1. Supposing A signs his signature on a piece of paper and delivers the same to B for the purpose of enabling B to recognize A's signature. Thereafter, B completed it into a negotiable note payable to his order in the amount of P5,000. If B negotiated the instrument to C: a) Under the above circumstances can C be a holder in due course? Explain. b ) Assuming C is a holder in due course and C negotiated the note to D who is not a holder in due course, can D enforce payment from A? Explain. 2. X issued a promissory note payable to the order of Y who negotiated the instrument to A. Unknown to A, the note was stolen by B, his trusted housekeeper. B forged the signature of A and negotiated the note to C. Later, C indorsed and delivered the note to D, a holder in due course. Discuss the liabilities of X, Y, A, B and C to D. 3. X draws a bill of exchange against Y in favor of W or P1,000.00, requesting the drawee to pay on December 24, 1962. W indorses the instrument to P on September 1 and on September 15 presents it for acceptance. P promptly sues W for payment. Will the case prosper? Give reasons for your answer. 4. A draws a check in favor of B who indorses it to C. The bank refuses payment for lack of funds. After notice of dishonor was given, C filed a complaint against A and B for collection. What should be the decision? Explain. 5. X issued a promissory note payable to the order of A. Upon receipt of the instrument, A indorsed it to B. a) How should B negotiate the note? b) Suppose B negotiated the note to C, what is the effect on the instrument if C subsequently negotiated it to D through blank indorsement