SU #19.2

Question 1

Elements of Negotiability

Answer 1

1. Be written & signed by the maker or drawer
2. Contain an unconditional promise or order to pay a fixed amount of money
3. be payable to order or bearer
4. Be payable on demand or at a definite time
5. Not state any other undertaking or instruction
6. Negotiable instrument is presumed to have been issued for consideration

Question 2

Order Instrument

Answer 2

1. Payable to the order of P. Cruz

2. Pay to P. Cruz or order

Question 3

Language that renders the instrument Non-negotiable

Answer 3

1. Payable to P. Cruz

2. Pay to P. Cruz

Question 4

Bearer Instrument

Answer 4

does not designate a specific payee

Question 5

A Promise or an order is payable to bearer if it

Answer 5

1. does not state a payee
2. Indicates that it is not payable to an identified person
3. Is payable to cash or to the order of cash
4. States that it is payable to bearer or to the order of bearer
5. Indicates that the person in possession is entitled to payment

Question 6

Examples of Bearer Paper

Answer 6

1. Pay bearer
2. Pay to the order of bearer
3. Pay to the order of P. Cruz or bearer
4. Pay any person presenting
5. Pay $500