Prtc Law
1. Check shall produce the effect of payment:
I. When the check has been encashed
II. When through the fault of the creditor the check has been impaired.
III. When a check has been cleared and credited to creditor’s account.
IV. When the creditor accepts the check as payment.
a. I, II and III
b. I, II and IV
c. I and II
d. All of them
2. M issued a promissory note to payable to the order of P. P indorsed it specially to A. Without the knowledge of A, X took the note and forged A’s signature and then delivered it to B, who specially indorsed it to C, C to D, D to E, and E to H, a holder in due course. Against whom can H demand payment of the note?
a. B, C, D and E because their signatures appear after the forgery
b. M and P because their signatures are genuine and had not been forged
c. A because he is negligent in keeping the promissory note
d. Against all parties because H is a holder in due course
3. X issued a check in favour of his creditor, Y. It reads “Pay to Y the amount of Seven Thousand Hundred Pesos (Php700 000.00). Signed, X”. What amount should be construed as true in such a case?
a. Php700 000.00
b. Php700.00
c. Php7 000.00
d. Php700 100.00
4. If the drawer and the drawee are the same person, the holder may present the instrument for payment without need of a previous presentment for acceptance. In such a case, the holder treats it as a
a. Promissory note
b. Non-negotiable instrument
c. Letter of credit
d. Check
5. A promissory note states, on its face: “I, X, promise to pay Y the amount of Php5 000.00 five days after the completion of the on-going construction of my house. Signed, X.” Is the note negotiable?
a. No, since it is payable at a fixed period after the occurrence of an event which may not happen.
b. Yes, since it is payable at a fixed period after the occurrence of a specified event.
c. Yes, since it is payable at a fixed period or determinable future time.
d. No, since it should be payable at a fixed period
I. When the check has been encashed
II. When through the fault of the creditor the check has been impaired.
III. When a check has been cleared and credited to creditor’s account.
IV. When the creditor accepts the check as payment.
a. I, II and III
b. I, II and IV
c. I and II
d. All of them
2. M issued a promissory note to payable to the order of P. P indorsed it specially to A. Without the knowledge of A, X took the note and forged A’s signature and then delivered it to B, who specially indorsed it to C, C to D, D to E, and E to H, a holder in due course. Against whom can H demand payment of the note?
a. B, C, D and E because their signatures appear after the forgery
b. M and P because their signatures are genuine and had not been forged
c. A because he is negligent in keeping the promissory note
d. Against all parties because H is a holder in due course
3. X issued a check in favour of his creditor, Y. It reads “Pay to Y the amount of Seven Thousand Hundred Pesos (Php700 000.00). Signed, X”. What amount should be construed as true in such a case?
a. Php700 000.00
b. Php700.00
c. Php7 000.00
d. Php700 100.00
4. If the drawer and the drawee are the same person, the holder may present the instrument for payment without need of a previous presentment for acceptance. In such a case, the holder treats it as a
a. Promissory note
b. Non-negotiable instrument
c. Letter of credit
d. Check
5. A promissory note states, on its face: “I, X, promise to pay Y the amount of Php5 000.00 five days after the completion of the on-going construction of my house. Signed, X.” Is the note negotiable?
a. No, since it is payable at a fixed period after the occurrence of an event which may not happen.
b. Yes, since it is payable at a fixed period after the occurrence of a specified event.
c. Yes, since it is payable at a fixed period or determinable future time.
d. No, since it should be payable at a fixed period