FINAL PHASE COVERAGE PART 3

LESSON 1-DEFENSES 1. Distinguish between Real and Personal defense. Answer: ()

2. Under what case has a payee or holder the prima facie authority to complete an instrument by filing up the blanks therein? Answer: ()

3. If the instrument was completed not in accordance with the authority given can a subsequent holder enforce the instrument against the maker or drawer? Answer: ()

4. In case where the instrument after its completion is in the hands of a holder not in due course, what defense can the maker or drawer against whom the instrument is sought to be enforced set up? Answer: ()

5. Can all parties make use of the personal defense mentioned under Sec. 14 against a holder not in due course? Answer: ()

6. What kind of defense is mentioned under Sec. 15? Answer: ()

7. To which holders can this defense be set up?

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8. Which parties to the instrument can make use of this real defense? Answer: ()

9. What are the rules applicable in case the instrument is mechanically complete but undelivered? Answer: ()

10.What kind of defensive is mentioned under Section 16? Answer: ()

11.If a negotiable instrument is also a contract, must consideration be always stated on the face of the instrument? Answer: ()

12.What is meant by value? Answer: ()

13.Who is deemed a holder for value? Answer: ()

14.When is a holder considered a holder for value for a part of the instrument? Answer: ()

15.State the defense respecting value. Answer: ()

16.What is meant be absence or want of consideration? Answer: ()

17.What is meant by partial failure of consideration? Answer: ()

18.What is the effect of an endorsement by an infant or corporation? Answer: ()

19.Can an accommodation party make use of the defense of absence of the consideration? Answer: ()

LESSON 2-ACCEPTANCE 20.Define Acceptance. Answer: ()

21.What is the effect of the acceptance by the drawee? Answer: ()

22.Where shall the drawee write his acceptance?

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23.To whom shall an acceptor be bound on his acceptance is on a separate instrument? Answer: ()

24.When is a promise to accept equivalent to acceptance? Answer: ()

25.Within what time is the drawee allowed to accept? Answer: ()

26.What constitutes constructive acceptance? Answer: ()

27.Can acceptance be made of an incomplete bill? Answer: ()

28.Where a bill payable after sight has been dishonored by non-acceptance and subsequently been accepted by the drawee, as of what date is the bill considered accepted? Answer: ()

29.State the kinds of acceptance. Answer: ()

30.Define General acceptance. Answer: ()

31.Define Qualified acceptance. Answer: ()

32.Give instances of qualified acceptance. Answer: ()

33.Is the following a qualified acceptance? Answer: ()

34.Is the holder duty bound to agree to a qualified acceptance? Answer: ()

35.What is the effect if the holder takes a qualified acceptance? Answer: ()

36.What is the duty of a holder who takes a qualified acceptance? Answer: ()

LESSON 3-PRESENTMENT FOR ACCEPTANCE 37.When must presentment for acceptance be made? Answer: ()

38.What is the effect if the holder fails to present for acceptance? Answer: () 39.How is presentment for acceptance made? Answer: () 40.To whom shall presentment be made? Answer: () 41.On what days must presentment for acceptance be made? Answer: () 42.What is the effect if the holder has no sufficient time to present for acceptance? Answer: () 43.Under what cases is presented for acceptance excused? Answer: () 44.When is a bill considered dishonored by no acceptance? Answer: () 45.What is the duty of the holder where the bill is not accepted? Answer: () 46.What is the right of the holder where the bill is not accepted? Answer: () LESSON 4-ACCEPTANCE FOR HONOR 47.Define Acceptance for Honor. Answer: () 48.State the requisites for acceptance for honor. Answer: () 49.How is an acceptance of an honor made? Answer: () 50.When is acceptance for honor deemed acceptance for honor of the drawer? Answer: () 51.To whom shall an acceptor for honor be liable? Answer: ()

52.What kind of liability has the acceptor for honor? Answer: () 53.What is the agreement of an acceptor for honor? Answer: () 54.How is maturity date of a bill which has been accepted for honor determined? Answer: () 55.What requirements must be observed before the presentment for payment is made to the acceptor for honor? Answer: () 56.How shall presentment for payment to the acceptor for honor be made? Answer: () 57.What shall delay in making presentment for the payment to the acceptor for honor be excused? Answer: () 58.What must be holder do, if the bill is dishonored by the acceptor for honor? Answer: () LESSON 5-PRESENTMENT FOR PAYMENT 59.What is meant be presentment for payment? Answer: () 60.Why is it necessary to present for payment? Answer: () 61.What constitutes tender of payment under the Negotiable Instrument Law? Answer: () 62.When shall presentment for payment be made? Answer: () 63.What constitutes sufficient presentment for payment? Answer: () 64.When does the law allow presentment for payment to one who may not be primarily liable on the instrument? Answer: ()

65.Which is the proper place of presentment? Answer: () 66.What is the effect if the holder does not present for payment? Answer: () 67.How is presentment for payment made? Answer: () 68.Is demand for payment by telephone sufficient? Answer: () 69.Where the instrument is payable at a bank, at what time shall it be presented for payment? Answer: () 70.When may presentment for payment be made after banking hours? Answer: () 71.To whom shall presentment for payment be made if the principal debtor is dead? Answer: () 72.To whom shall presentment be made in case the persons primarily liable are partners? Answer: () 73.If there is no lace specified on the instrument for presentment and the persons primarily liable are joint debtors, to whom shall presentment for payment be made? Answer: () 74.When is present for payment not required in order to charge the drawer? Answer: () 75.When is presentment for payment not required in order to charge the endorser? Answer: () 76.When shall delay in making presentment for payment be excused? Answer: () 77.When shall presentment for payment be dispensed with or excused? Answer: () 78.Under what cases is the instrument considered dishonored by nonpayment? Answer:

() 79.What is the right of the holder, where the instrument is dishonored by nonpayment? Answer: () 80.When is presentment for payment not required in order to charge the drawer? Answer: () 81.When maturity date falls on a Sunday? Answer: () 82.When maturity date falls on Saturday? Answer: () 83.When the instrument becomes payable on a Saturday? Answer: () 84.What s meant be an instrument becoming payable on a Saturday? Answer: () 85.How do you compute the time for payment, in case the instrument is payable at a fixed period after date, after sight, r after the happening of a specified event? Answer: () 86.Where the instrument is made payable at a bank, may the bank pay the instrument and charge the amount of the instrument against the account of the principal debtor thereon, without further authority from the latter? Answer: () 87.What constitutes payment in due course? Answer: () LESSON 6-PAYMENT FOR HONOR 88.What are the requisites for payment for honor? Answer: () 89.In what form shall payment for honor be? Answer: () 90.Where there are two or more parties offering to pay for honor, whose payment shall be preferred? Answer: () 91.What is the effect where a bill is paid for honor? Answer:

() 92.What is the effect of the holders refusal to receive payment supra protest? Answer: () 93.What are the rights of a prayer for honor? Answer: () LESSON 7-NOTICE OF DISHONOR 94.To whom shall notice of dishonor be given? Answer: () 95.What is the effect if no notice is given to given to the drawer and each one or endorsers? Answer: () 96.What are the kinds of notices of dishonor? Answer: () 97.Who must give notice of dishonor? Answer: () 98.If notice is given by an agent, in whose name shall notice be given? Answer: () 99.To whose benefit does a notice of dishonor given by or on behalf of the holder inure? Answer: () 100. What is the effect where notice of dishonor is given by or on behalf of a party entitled to give notice? Answer: () 101. Where the instrument is dishonored in the hands of an agent, when must he give notice? Answer: () 102. What constitutes sufficient notice of dishonor? Answer: () 103. In what form shall notice of dishonor be? Answer: () 104. To whom notice of dishonor be given? Answer: ()

105. When the person to be given notice dishonor is dead, to whom shall notice be given? Answer: () 106. To whom shall notice be given if the parties to be given notice are partners? Answer: () 107. If the parties to be given notice are jointly liable, to whom shall notice be given? Answer: () 108. If the party to be given notice has been adjudged a bankrupt or an insolvent, or has made an assignment for the benefit of creditors, notice may be given either? Answer: () 109. Within what time shall notice of dishonor be given? Answer: () 110. If it is a party who was given notice, to give notice within what time shall he give notice? Answer: () 111. At what place shall notice of dishonor be sent? Answer: () 112. May notice of dishonor be waived? Answer: () 113. Who are affected by waiver of notice of dishonor embodied in the instrument itself? Answer: () 114. What is the effect if the waiver of notice of dishonor appears in a particular endorsement? Answer: () 115. What are deemed included in waiver of protest? Answer: () 116. When is notice of dishonor dispensed with or excused? Answer: () 117. When shall delay is giving notice be excused? Answer: ()

118. When is the holder not required to give notice of dishonor to the drawer, yet the drawer is charged liable on the instrument? Answer: () 119. When is the holder no required to give notice to the endorser? Answer: () 120. How many notices of dishonor be given to a party to charge him liable? Answer: () 121. What is the effect if the holder omits to give notice of dishonor be nonacceptance? Answer: ()

LESSON 8-PROTEST 122. Define protest Answer: () 123. In what cases must protest be made? Answer: () 124. When shall protest be necessary? Answer: () 125. What is the result if the holder fails to have the bill protested? Answer: () 126. In what case is protest not required? Answer: () 127. How is protest made? Answer: () 128. Who shall make a protest? Answer: () 129. When shall protest be made? Answer: () 130. At what place shall protest be made? Answer: () 131. May a bill be protested both for no acceptance and non-payment? Answer:

() 132. What is meant by Protest for Better Security? Answer: () 133. Under what cases shall protest be dispensed with? Answer: () 134. How shall protest be made in the case where the bill is lost? Answer: () LESSON 9-DISCHARGE OF NEGOTIABLE INSTRUMENTS 135. How is negotiable instrument discharged? Answer: () 136. Give the meaning of principal debtor? Answer: () 137. Will payment in due course by an accommodated party always discharge an instrument? Answer: () 138. When are parties secondarily liable on the instrument discharged? Answer: () 139. What kind of discharge of a prior party should it be, so as to discharge the party secondarily liable? Answer: () 140. Give instances of discharge by operation of law? Answer: () 141. If a prior party is discharged, which other parties are also discharged? Answer: () 142. What are the effects where the instrument I paid by a party secondarily liable? Answer: () 143. What requisites must be followed so that a party secondarily liable who pays the instrument can renegotiate the instrument? Answer: () 144. What are the exceptions to the right to negotiate by a party secondarily liable who has paid the instrument? Answer: ()

145. Within what time may a holder renounce his rights against any party to the instrument? Answer: () 146. In what form shall the renunciation be? Answer: () 147. When shall renunciation discharge the instrument? Answer: () 148. What is the presumption where an instrument appears cancelled in the hands of the holder? Answer: () 149. What is the effect if the cancellation made be the holder is intentional? Answer: () 150. When is cancellation considered inoperative? Answer: () 151. What is the effect of the alteration of a negotiable instrument? Answer: () 152. What constitutes material alteration of the instrument? Answer: () LESSON 10-BILL IN SET 153. Define bill in set. Answer: () 154. What are the rights of the holders to whom the different parts of the bill are negotiated? Answer: () 155. What is the liability of a holder who indorses two or more parts of a bill in set to different persons? Answer: () 156. How many parts of set be accepted and where shall such acceptance be written? Answer: () 157. What is the duty of the acceptor who pays the bill? Answer: ()

158. How is bill in set discharged? Answer: ()