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    Negotiable Instruments Law Day 1 For Students

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    Paola Louise P. Lorido
    The document discusses several key aspects of negotiable instruments: 1) Negotiability allows an instrument to be passed from one person to another like money, giving the holder in due course rights free from defects or defenses from prior parties. 2) As an instrument is passed from person to person, secondary contracts are formed, increasing the chances the holder can collect payment and greatly improving the instrument's marketability. 3) A negotiable promissory note is an unconditional written promise to pay a fixed sum of money at a determinable future time, either to order or to bearer.

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    Negotiable Instruments Law Day 1 For Students

    Uploaded by

    Paola Louise P. Lorido
    110 views10 pages
    The document discusses several key aspects of negotiable instruments: 1) Negotiability allows an instrument to be passed from one person to another like money, giving the holder in due course rights free from defects or defenses from prior parties. 2) As an instrument is passed from person to person, secondary contracts are formed, increasing the chances the holder can collect payment and greatly improving the instrument's marketability. 3) A negotiable promissory note is an unconditional written promise to pay a fixed sum of money at a determinable future time, either to order or to bearer.

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    Intro to NIL

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    Negotiable Instruments Law Day 1 for Students

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    The document discusses several key aspects of negotiable instruments: 1) Negotiability allows an instrument to be passed from one person to another like money, giving the holder in due course rights free from defects or defenses from prior parties. 2) As an instrument is passed from person to person, secondary contracts are formed, increasing the chances the holder can collect payment and greatly improving the instrument's marketability. 3) A negotiable promissory note is an unconditional written promise to pay a fixed sum of money at a determinable future time, either to order or to bearer.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    110 views10 pages

    Negotiable Instruments Law Day 1 For Students

    Uploaded by

    Paola Louise P. Lorido
    The document discusses several key aspects of negotiable instruments: 1) Negotiability allows an instrument to be passed from one person to another like money, giving the holder in due course rights free from defects or defenses from prior parties. 2) As an instrument is passed from person to person, secondary contracts are formed, increasing the chances the holder can collect payment and greatly improving the instrument's marketability. 3) A negotiable promissory note is an unconditional written promise to pay a fixed sum of money at a determinable future time, either to order or to bearer.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 10

    ATTY. PAOLA LOUISE P.

    LORIDO, CPA 1
    NEGOTIABILITY

    This is the attribute of an instrument that allows it


    to be passed from one hand to another similar to
    money, so as to give the holder in due course
    the right to hold the instrument free from any
    defect of title of prior parties and free
    defenses available to prior parties among
    themselves, and enforce payment of the
    instrument for the full amount thereof against
    all parties liable thereon. (Sec. 57)

    ATTY. PAOLA LOUISE P. LORIDO, CPA 2


    ACCUMULATION OF SECONDARY
    CONTRACTS
    As the instrument is passed from one
    person to another, secondary contracts
    are entered into thereby increasing the
    chances of the holder to collect the
    amount payable on the instrument. For
    this reason, the marketability of the
    instrument is greatly increased.

    ATTY. PAOLA LOUISE P. LORIDO, CPA 3


    PROMISSORY NOTE

    ATTY. PAOLA LOUISE P. LORIDO, CPA 4


    PROMISSORY NOTE

    A negotiable promissory note is an


    unconditional promise in writing
    made by one person to another,
    signed by the maker, engaging to
    pay on demand or at a fixed or
    determinable future time, a sum
    certain in money, to order or to
    bearer. (Sec. 184)

    ATTY. PAOLA LOUISE P. LORIDO, CPA 5


    PROMISSORY NOTE
    P10,000.00 Quezon City, Philippines
    July 1, 2017

    For value received, I promise to pay to the order of Barbie Qu the sum
    of Ten Thousand Pesos (P10,000.00) on or before December 1, 2017, at the
    Philippine National Bank, Quezon City.

    (Sgd.) Ms. Yu

    ATTY. PAOLA LOUISE P. LORIDO, CPA 6


    WHEN PAYABLE TO ORDER

    Section 8. When payable to


    order. The instrument is
    payable to order where it is
    drawn payable to the order of
    a specified person or to him
    or his order.

    ATTY. PAOLA LOUISE P. LORIDO, CPA 7


    PAYABLE TO ORDER

    Section 8. When payable to


    order. Where the instrument
    is payable to order, the payee
    must be named or otherwise
    indicated therein with
    reasonable certainty

    ATTY. PAOLA LOUISE P. LORIDO, CPA 8


    WHEN PAYABLE TO BEARER
    Section 8. When payable to bearer. The instrument is payable to
    bearer-
    a) When it is expressed to be so payable; or
    b) When it is payable to a person named therein or bearer; or
    c) When it is payable to the order of a fictitious or non-existing
    person, and such fact was known to the person making it so
    payable; or
    d) When the name of the payee does not purport to be the
    name of any person; or
    e) When the only or last indorsement is an indorsement in
    blank.

    ATTY. PAOLA LOUISE P. LORIDO, CPA 9


    ORDER VS BEARER

    Order= Indorsement + Delivery

    Bearer= Delivery only

    ATTY. PAOLA LOUISE P. LORIDO, CPA 10

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