REGULATORY FRAMEWORK AND LEGAL ISSUES IN BUSINESS

16. Bert borrowed Php1 million from Lux and offered to him his BMW car worth Php1Million as collateral. Bert then executed a promissory note that reads: I, Bert, promise to pay Lux or bearer the amount of Php1 Million and to keep my BMW car (loan collateral) free from any other encumbrance. Signed, Bert. Is this note negotiable?

A. Yes, since it is payable to bearer.

B. Yes, since it contains an unconditional promise to pay a sum certain in money.

C. No, since the promise to just pay a sum of money is unclear.

D. No, since it contains a promise to do an act in addition to the payment of money

17. Statement 1: A negotiable instrument is payable on demand when it is expressed to be payable at sight. Statement 2: Where the bill of exchange is dated, such date is deemed prima facie to be the true date of the drawing

Only Statement 1 is TRUE

b. Only Statement 2 is TRUE

c. Both Statements are TRUE

d. Both Statements are FALSE

18. Statement 1: To be negotiable, an instrument must specify the place where it is payable.Statement 2: The following instrument is negotiable: Please pay to Ayi or bearer the sum of P60,000.00. (Sgd. Aya).

Only Statement 1 is TRUE

b. Only Statement 2 is TRUE

c. Both Statements are TRUE

d. Both Statements are FALSE

19. Which of the following instruments is considered negotiable?

a. I promise to mpay to my siblings Jeshua Rinei and Jireh Viktoria or order the sum of P200,000.00 if Manny Pacquiao will emerge as champion in his fight against the BIR Commissioner. (Sgd) Princess

b. I promise to pay to Bah, Beh, Bhi, and Bho a the sum of P50,000.00 in money or in twenty cases of Fundador Brandy. (Sgd) Bhu

c. I promise to pay to the bearer - Princess on January 10, 2019 whatever sum my sari-sari store will earn this coming Christmas Season. (Sgd.) Mystica

d.To: May Pay to Sha or bearer the sum of P30,000.00 and reimburse yourself out of my share in our partnership profits for fiscal year 2018. (Sgd) Bato

e. None of the above

20. Which of the following instruments is considered non-negotiable?

a. September 10, 2014 For value received, I promise to pay to the order of my sister Jireh the sum of FIVE HUNDRED THOUSAND PESOS (P50,000.00) when my means permit me to do so. (Sgd. Viktoria)

b. I promise to pay to the order of Rev. Fr. Gilbert B. Sales the sum of FIFTY THOUSAND PESOS (P500,000.00) out of my overtime pay this coming school year and from my loan from the bank at the holders option. (Sgd) Dr. Noel de Leon

c. Pay to the order of our niece Precious Akizha the sum of TWO MILLION PESOS (P2,000,00.00) ninety (90) days after sight. (Sgd) Jireh Viktoria and Jeshua Rinei

d. I promise to pay to the bearer the sum of SIXTY THOUSAND PESOS (P60,000.00) in money or in jewelries at the option of the bearer on the next blue moon. (Sgd) Jeshua To: Adleigh

e. All of the above

21. To: Mx. Vice GandaSnowtime, ABC-SBN Pay to the order of my one and only Alden Richards the sum of P100,000.00 as evidence of my undying affection. Aldub You J (Sgd) Yaya your Forever Love JThe foregoing instrument is

a. Negotiable since all the requisites provided in Section 1, NIL are present

b. Non-negotiable since it is not payable to order or to bearer

c. Non-negotiable since there is no unconditional order to pay due to the presence of a condition

d. Non-negotiable since it is not payable on demand, or at a fixed or at a determinable future time

e. None of the above

22. I promise to pay Peter or transferee P 10,000.00 in bi-monthly installments starting 15 January 2018. (Sgd. Aleck). The instrument is:

a. Negotiable since all the requisites provided in Section 1, NIL are present

b. Non-negotiable since it is not payable on demand or at a fixed or determinable future time

c. Non-negotiable since it is not sum certain in money

d. Non-negotiable since it is not payable to order or to bearer

e. None of the above

23. Pay to Xenon or order P 10,000.00 10 days after the death of Yank due to AIDS To: Bart (Sgd. Aleck and Bert). In this case, Yank really died due to AIDS based on the findings of the Medico Legal Expert. The instrument is:

a. Negotiable since all the requisites provided in Section 1, NIL are present

b. Non-negotiable since it is not payable on demand or at a fixed or determinable future time

c. Non-negotiable since there is no unconditional order to pay

d. Non-negotiable since there is no unconditional promise to pay

e. None of the above

24. Good to Peter or his heirs P 10,000.00 (Sgd. Aleck). The instrument is:

a. Negotiable since all the requisites provided in Section 1, NIL are present

b. Non-negotiable since it is not payable on demand or at a fixed or determinable future time

c. Non-negotiable since there is no word of negotiability

d. Non-negotiable since there is no unconditional promise to pay

e. None of the above

25. Thirty (30) days before the 2021 Chinese New Year, I guarantee to pay Cha and assign $10,000.00. (Sgd. Chi). The instrument is:

a. Negotiable since all the requisites provided in Section 1, NIL are present

b. Non-negotiable since it is not payable on demand or at a fixed or determinable future time

c. Non-negotiable since there is no word of negotiability

d. Non-negotiable since there is no unconditional promise to pay

e. All of the above

26. Guaranteed the amount of ONE MILLION (P10,000,000.00) DOLLARS to Mocha Latte or her lovers. (Sgd. DeCaf). The instrument is -

a. Negotiable since all the requisites provided in Section 1, NIL are present

b. Non-negotiable since it is not payable on demand or at a fixed or determinable future time

c. Non-negotiable since there is no word of negotiability

d. Non-negotiable since there is no unconditional promise to pay

e. All of the above

27. Guaranteed to pay Aleck or possessor P 10,000.00 out of my loan from the bank and from my monthly salary from Saint Louis University. (Sgd. Bart). The instrument is -

a. Negotiable since all the requisites provided in Section 1, NIL are present

b. Non-negotiable since it is not payable on demand or at a fixed or determinable future time

c. Non-negotiable since there is no word of negotiability

d. Non-negotiable since there is no unconditional promise to pay

e. All of the above

28. . The drawee will much oblige the drawer by paying to Malo or order P 10,000.00 on demand. (Sgd. Aleck) To: Myka. The instrument is -

a. Negotiable since all the requisites provided in Section 1, NIL are present

b. Non-negotiable since it is not payable on demand or at a fixed or determinable future time

c. Non-negotiable since there is no word of negotiability

d. Non-negotiable since there is no unconditional promise to pay

e. All of the above

29. I promise to pay Peter or holder P 10,000.00 in two bi-annual installments. (Sgd. Aleck). The instrument is -

a. Negotiable since all the requisites provided in Section 1, NIL are present

b. Non-negotiable since it is not payable on demand or at a fixed or determinable future time

c. Non-negotiable since there is no word of negotiability

d. Non-negotiable since there is no unconditional promise to pay

e. All of the above

30. Credit Allyson or order P100M on account of contract between you and the Ayala Land Development Corporation. (Sgd. Alessandra) To: Milo. The instrument is -

a. Negotiable since all the requisites provided in Section 1, NIL are present

b. Non-negotiable since it is not payable on demand or at a fixed or determinable future time

c. Non-negotiable since there is no word of negotiability

d. Non-negotiable since there is no unconditional promise to pay

e. All of the above