negotiable instruments lecture notes
NEGOTIABLE INSTRUMENTS LAW
DEFINITIONS:
1) PROMISORY NOTE – It 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, NIL)
2) BILL OF EXCHANGE – It is an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed, to pay on demand, or a fixed or determinable future time a sum certain in money, to order or to bearer. (Sec. 126, NIL)
3) CHECK – a form of a Bill of Exchange drawn on a bank and always payable on demand. (Sec. 185, NIL)
REQUISITES OF A NEGOTIABLE INSTRUMENT – (Sec. 1)
1. It must be in writing and signed by the maker or drawer.
2. Must contain an unconditional promise or order to pay a sum certain in money.
3. Must be payable on demand or at a fixed or determinable future time.
4. Must be payable to order or to bearer.
5. Where the instrument is addressed to a drawee, he must be named or otherwise indicated therein with reasonable certainty.
DIFFERENT KINDS OF BILL OF EXCHANGE:
1) TRADE ACCEPTANCE – a bill of exchange drawn by the seller of goods on the buyer for the purchase price and accepted by the buyer.
2) BANK ACCEPTANCE – a draft drawn on and accepted by a bank.
3) DRAFT – a bill of exchange payable on demand, an order for payment of money drawn by one individual on another.
4) INLAND BILL OF EXCHANGE – a bill which is, or on its face purports to be, both drawn and payable within the Philippines.
5) FOREIGN BILL OF EXCHANGE – a bill of which is
i. Drawn and payable within one foreign country; or ii. Drawn in one country and payable in another; or iii. Drawn in a foreign country and payable in the Philippines; or iv. Drawn in the Philippines and payable in a foreign country.
6) CLEAN BILL OF EXCHANGE – a bill of exchange to which no document is attached when presentment for acceptance or
DEFINITIONS:
1) PROMISORY NOTE – It 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, NIL)
2) BILL OF EXCHANGE – It is an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed, to pay on demand, or a fixed or determinable future time a sum certain in money, to order or to bearer. (Sec. 126, NIL)
3) CHECK – a form of a Bill of Exchange drawn on a bank and always payable on demand. (Sec. 185, NIL)
REQUISITES OF A NEGOTIABLE INSTRUMENT – (Sec. 1)
1. It must be in writing and signed by the maker or drawer.
2. Must contain an unconditional promise or order to pay a sum certain in money.
3. Must be payable on demand or at a fixed or determinable future time.
4. Must be payable to order or to bearer.
5. Where the instrument is addressed to a drawee, he must be named or otherwise indicated therein with reasonable certainty.
DIFFERENT KINDS OF BILL OF EXCHANGE:
1) TRADE ACCEPTANCE – a bill of exchange drawn by the seller of goods on the buyer for the purchase price and accepted by the buyer.
2) BANK ACCEPTANCE – a draft drawn on and accepted by a bank.
3) DRAFT – a bill of exchange payable on demand, an order for payment of money drawn by one individual on another.
4) INLAND BILL OF EXCHANGE – a bill which is, or on its face purports to be, both drawn and payable within the Philippines.
5) FOREIGN BILL OF EXCHANGE – a bill of which is
i. Drawn and payable within one foreign country; or ii. Drawn in one country and payable in another; or iii. Drawn in a foreign country and payable in the Philippines; or iv. Drawn in the Philippines and payable in a foreign country.
6) CLEAN BILL OF EXCHANGE – a bill of exchange to which no document is attached when presentment for acceptance or