1....Larry issued negotiable promissory note to Evelyn and authorized the latter to fill up the amount in blank with his loan account in the sum of P1,000.00. However, Evelyn inserted P5,000.00 in violation of the instruction. she negotiated the note to Julie who had knowledge of the infirmity. Julie in turn negotiated said note to Devi for value and who had no knowledge of the infirmity. Supposing Devi endorses the note to Baby for value but who has knowledge of the infirmity, can the latter enforce the note against Larry?

2.... A signed a blank check and kept it inside the drawer of his desk in his office. B, a janitor of the office opened the drawer, got the check and filled in the amount of P100,000 with B's name as payee. Thereafter, B indorsed the check to C and C indorsed the check to D. Should the drawee bank dishonor the check, can D hold A liable? Would your answer be the same if D was a holder in due course? How about B and C, are they liable to D?

3.... M, maker, prepared a promissory note payable to the order of A, but he did not sign the same and left it inside his drawer. X, a thief stole the instrument, forged M's signature and delivered the same to A, A indorsed the instrument B, B in turn indorsed it to C, the C to D, the present holder. (a) Against whom can D enforce payment? Will your answer be the same if the instrument is a bearer instrument?

4.... Juan de la Cruz signed a promissory note payable to Pedro Lim or bearer, and delivers it personally to Pedro Lim. The latter somehow misplaced the said note and Carlos Ros finds the note lying around the corridor of the building. Carlos endorses the promissory note to Juana Bond, for value, by forging the signature of Pedro Lim. May Juana Bond hold Juan de la Cruz liable on the note?

5.... Fernando forge the name of Daniel, manager of a Trading Company, as the drawer of a check. The Bank of the Philippine Islands, the drawee bank, did not detect the forgery and paid the amount. May the bank charge the amount paid against the account of the alleged drawer? Reasons.

6... Hernan issued a check payable to the order of Fernando in the sum of PHP12,000.00, and drawn on X Bank. The check was delivered to Matilde b Adriano for encashment. At that time, the check had the indorsements of Fernando and Rosa. When Matilde encashed it with X Bank, she affixed her signature on the check. Upon matilde's receipt of the cash proceeds of the check she turned over the amount to Adriano. X Bank was informed that the alleged indorsement of the payee Fernando was a forgery, since the latter had died 2 years ago. X Bank having refunded the amount to Hernan, sued Matilde, who refused to return the money. a. Was X Bank correct in paying Hernan? b. Does X Bank have a cause of action against Matilde?

7.... A delivers a bearer instrument to B. B then specially indorses it to C and C later indorses it in blank to D. E steals the instrument from D and, forging the signature of D, succeeds in "negotiating" it to F who acquires the instrument in good faith and for value. If for any reason, the drawee bank refuses to honor the check, ca F enforce the instrument against the drawer? In case of the dishonor of the check by both the drawee and the drawer, can F hold any of B, C and D liable secondarily on the instrument?

8.... NM issued 2 post-dated checks to CV, as security for pieces of jewelry to be sold. Each check has a face value of P50,000.00. Thereafter, CV negotiated the check to SIH, Inc. without the knowledge of NM. NM returned the jewelries to CV and tried to retrieve the checks. Having failed to do so, NM withdrew her funds from the drawee bank and the checks were consequently dishonored when presented for payment. SIH sued NM who interposed the defense that the checks do not have any consideration. However, NM did not present proof that SIH is not a holder in due course. Will the defense of absence of consideration prosper against SIH?

9... A bill of exchange was issued because of the love and affection of the drawer to the payee. Can the drawer held secondarily liable (assuming non-acceptance by the drawee) on the instrument: (a) by the payee; (b) by a holder in due course?

10... Pedro issued a negotiable note to Juan, a government employee, to facilitate the early release of the government approval of the application that he filed. Juan negotiated the instrument to Pablo, a holder in due course. When Pablo presented the instrument to Pedro for payment, Pedro claims that he is not liable because the consideration was illicit. Is the refusal of Pedro justified?

11... Where the President of a corporation issued a company check and signs it in his capacity as president (being an authorized signatory) in payment of a car which he purchased for his office use, but without the approval of the Board of Directors, and the check is dishonored by the drawee bank, may the seller of the car recover from the drawee bank, the corporation, and the president of the corporation.