Negotiable Instruments Law: Choose the CORRECT answer and EXPLAIN.

10. 1st statement: A check must be presented for payment within a reasonable time after it issue or the drawer will be 12. Which of the following is a negotiable Bill of Exchange? discharged from a liability thereof. a) Pay to order of X the sum of P 20,000(Sgd.) Y To: A and B 2nd statement: Where the holder of a check procures it to be b) Pay to the order of Y the sum of P 30,000 (Sgd) X To: A or his accepted or certified, the drawer and all endorsers are absence to B discharged from liability thereof. c) Pay to the order of X or Y the sum of P 40,000 (Sgd) C To: A a) only the 1st statement is true or B b) only the 2nd statement is true d) Pay to the order of Y the sum of P50, 000 (Sgd) X To: A and c) both statements are not true B d) both statements are true 13. X draws a check against his current account with ABC bank 11. Which of the following instruments is negotiable? In favor of B. Although X does not have sufficient funds; the a) Pay to bearer C P 10,000. Reimburse yourself out of the rental bank honors the check when presented for payment. of my house in Manila. To B (Sgd) A Apparently, and X has conspired with the bank's bookkeeper b) Pay to C P 10,000 or his order out of the rental of my house so that his ledger card would show that he has sufficient funds. in Manila. To B (Sgd) A a) Yes, because X has no sufficient funds with the bank c) Pay to C P 10,000 and reimburse yourself out of the rental of bj No, because the bank as acceptor became primarily liable to my house in Manila. To B (Sgd) A B d) Pay to the order of C P10, 000.Reimburse yourself out of the c) Yes, because of solution debit rental of my house in Manila. To (Sgd) A d) No, because B was not in good faith as payee