Negotiable Instruments Law: Below are my answers to the questions related to the topic. From the feedback of this submitted assessment, it was stated that I HAVE TWO (2) MISTAKES. However, the questions/items in which I was wrong were not stated. Please help me find the two mistakes or the two questions that have incorrect answers and then, give the CORRECT answers with EXPLANATION.

Please treat the choices below as "a, b, c, and d"

1. The drawee is not primarily liable

1. Cashier's check
2. Manager's check
3. Certified check
4. Traveler's check

2. If the instrument is payable to the order of a third person

1. He is liable to all parties subsequent to the payee
2. He is not liable to the party
3. He is liable to the payee and to all subsequent parties
4. He is liable to all parties subsequent to the marker or drawer.

3. Which of the following is not negotiable?

1. Pay to D or order P10, 000 on or before Dec.31, 1997 (Sadie)
2. Pay to A or order P10, 000 Notice of Dishonor waived (Sgd. B)
3. Pay to B or order P5, 000 or deliver two horses at the option of the holder (Sgd.D)
4. Pay to C or order P10, 000 and to deliver 10 sacks of rice (Sgd. D)

4. A bill of exchange drawn on a bank and payable on demand is

1. Check
2. Treasury
3. Domestic bill
4. Bill of lading

5. Which is not correct? The acceptor by accepting the instrument

1. Admits the existence of the payee and his capacity to indorse
2. Admits the existence of the drawee, the genuiness of his signature and his capacity and authority to draw the instrument
3. Engages that he will pay is according to the tenor of his acceptance
4. Admits the existence of the endorser, the genuiness of his signature and his capacity and authority to indorse instruments

6. Maturity of undated negotiable instrument issued payable 30 days after sight is computed from

1. Date of first indorsement
2. Date of last indorsement
3. Date for first presentation for acceptance
4. Date of issue

7. When a negotiable instrument payable to order?

1. When payable to the order of a specified person or to him or his order
2. When payable to the order of a fictitious person or non-existing person and such a fact was known to the person making it so payable
3. When the name of the payee does not purport to be the name of a person.
4. When only or last indorsement is in blank

8. Which of the following is not a characteristic of a bill of exchange?

1. Original parties are the drawer, drawee and payee
2. Acceptance is generally required
3. Drawer is primarily liable
4. Contains an unconditional order to pay

9. Which is not correct? The acceptor by accepting a negotiable instrument

1. Admits the existence of the payee and his capacity to endorse
2. Admits the existence of the drawer, the genuiness of his signature and his authority to draw the instrument
3. Admits the existence of the endorser, the genuiness of his signature and his authority to draw the instrument
4. Admits that he will pat it according to the tenor of his acceptance

10. 1st statement: A check must be presented for payment within a reasonable time after it issue or the drawer will be discharged from a liability thereof.

2nd statement: Where the holder of a check procures it to be accepted or certified, the drawer and all endorsers are discharged from liability thereof.

1. only the 1st statement is true
2. only the 2nd statement is true
3. both statements are not true
4. both statements are true

11. Which of the following instruments is negotiable?

1. Pay to bearer C P 10,000. Reimburse yourself out of the rental of my house in Manila. To B (Sgd) A
2. Pay to C P 10,000 or his order out of the rental of my house in Manila. To B (Sgd) A
3. Pay to C P 10,000 and reimburse yourself out of the rental of my house in Manila. To B (Sgd) A
4. Pay to the order of C P10, 000.Reimburse yourself out of the rental of my house in Manila. To (Sgd) A

12. Which of the following is a negotiable Bill of Exchange?

1. Pay to order of X the sum of P 20,000(Sgd.) Y To: A and B
2. Pay to the order of Y the sum of P 30,000 (Sgd) X To: A or his absence to B
3. Pay to the order of X or Y the sum of P 40,000 (Sgd) C To: A or B
4. Pay to the order of Y the sum of P50, 000 (Sgd) X To: A and B

13. X draws a check against his current account with ABC bank in favor of B. Although X does not have sufficient funds; the bank honors the check when presented for payment. Apparently, and X has conspired with the bank's bookkeeper so that his ledger card would show that he has sufficient funds.

1. Yes, because X has no sufficient funds with the bank
2. No, because the bank as acceptor became primarily liable to B.
3. Yes, because of solution debit
4. No, because B was not in good faith as payee.

14. An instrument is not negotiable if the day and the month, but not the year of its maturity is given.

Where the drawees are in the alternative or in succession, the instrument is not negotiable.

1. Both statements are true.
2. Both are false.
3. First is true, second is false
4. First is true, second is true.

15. Which of the following is not an effect of a crossed check?

1. The check may not be encashed but only deposited in a bank
2. The check may be negotiated only once to one who has bank account
3. The act of crossing a check serves as a warning to the holder that the check has been issued for a definite purpose so that he must inquire if he received the check pursuant to that purpose otherwise; he is not a holder in due course
4. The indorse remains a holder in due course even if he does not inquire into right of the indorser to the check

16. A negotiable instrument must contain a promise or order to pay a sum certain in money, except

1. Which must be payable to order or bearer
2. That must be in writing
3. Which he must be unconditional promise or order
4. The payee must be identified.

17. The following are the functions of a negotiable instrument, EXCEPT:

1. It operates as a substitute for money
2. It is a means of creating and transferring credits
3. It facilities the sale of goods and increases the purchasing medium in circulation
4. It is legal tender.

18. An instrument is payable to bearer except

1. The only or last indorsement is in blank
2. Payable to "CASH"
3. It is payable to a specified persons or bearer
4. The payable to the order of the bearer

19. An instrument is payable to specified person or entity is

1. Negotiable because it complies with Section 1 of the law
2. Not negotiable because it must be payable to order or bearer
3. Negotiable because specified person is a payee or bearer
4. Not negotiable because the payee is named

20. A. An incom-plete and already delivered instrument, if completed, and is negotiated to a holder a on due course, is valid and effectual for all purposes in his hands.

B. Such holder may enforce it as if it had been filled up strictly in accordance with the authority given and within a reasonable time.

1. Both statements are true
2. First statement is false; second statement is true
3. Both statements are false
4. First statement is true; second statement is false

21. Give the instrument listed herein which is not negotiable as it is beyond the scope of the Negotiable Instruments Law:

1. Certificate of Deposit
2. Due Bill
3. Post-Office Money Order
4. Trade Acceptance

22. Which of the following instruments is not payable to bearer?

1. "Pay to the order of bearer P1,000.00.

To:X Sgd.A"

1. "Pay to the bearer the sum of P1,000.00.

To:X Sgd."A"

1. "Pay to B or bearer the sum of P1,000.00.

To:X Sgd."A"

1. "Pay to Cash the sum of P1,000.00.

To:X Sgd."A"

23. Which of the following instruments is not negotiable for the reason that the instrument is not payable at a determinable future time

1. "On the death of X, I promise to pay to the order of B P1,000.00.

Sgd."A"

1. "On or before October 30, 2009, I promise to pay B or his order P1,000.00.

Sgd."A"

1. "Sixty days after sight, I promise to pay to the order of B P1,000.00.

Sgd."A"

1. "Ten days before the death of X, I promise to pay B or his order P1,000.00.

Sgd."A"

24. An instrument is considered payable on demand:

1. When no time of payment is expressed.
2. When payable to order
3. When the last endorsement is in blank.
4. When the last endorsement is restricted

25. When there are three (3) parties, the drawer, the payee and the drawee, the instrument is a:

1. Promissory note
2. Certificate of indebtedness
3. Bank Check
4. Bill of exchange