Napoles

NEGOTIABLE INSTRUMENTS LAW The parties are the MAKER and the PAYEE.
QandA Maker is the person who makes the promissory note
Atty. Sarah Castro and the Payee is the person who is to receive a
payment.
PRELIMINARY CONSIDERATIONS 12. What is a bill of exchange? Parties?
I. Governing Laws A bill of exchange is an (1) unconditional order, (2)
in writing, (3) addressed by one person to another (4)
1. Is NIL an adopted statute? signed by the person giving it (5) requiring the person
Yes. to whom it is addressed (6) to pay on demand or at a
2. What is an adopted statute? fixed determinable time (7) a sum certain in money, to
It is patterned after an existing statute. order or to bearer.
3. Where is NIL adopted?
It is adopted from the following: The parties are the DRAWER, DRAWEE and the
a. US Uniform Negotiable Instruments Act PAYEE. The drawer Is the person who draws the BoE
b. US Uniform Commercial Code and orders the drawee to pay a sum certain in money.
c. Act. No. 2031 purpose of the act is to facilitate The drawee is the person to whom the order to pay is
transactions in commercial paper and to promote addressed in the BoE. He becomes the acceptor
free flow of credit when he accepts the order to pay made by the
d. Code of Commerce drawer. The payee is the party in whose favor the bill
4. What is the implication if a statute is an adopted one? is drawn or is payable.
In interpreting the statute, if there is a confusion, 13. What is a check?
the jurisprudence of the country where it originated It is the most common form of BoE, it is drawn on a
shall be considered. bank payable on demand.
5. When is jurisprudence of foreign country be resorted 14. Distinguish one from another. (Not quite sure kung
to in the interpretation of an adopted statute? ano pinapadistinguish nya so here)
When our own law is deficient in a specific matter.
6. When is NIL adopted? Published? Took effect? PN BoE
Feb. 3, 1911; March 4, 1911; June 2, 1911 Nature Unconditional Unconditional
Promise Order
II. Concept of Negotiable Instrument Number of 2 3 *drawer not yet a
Parties party unless he acc epts
bill
7. What is your concept of Negotiable Instrument? Liability Maker is Drawee-
Negotiable instruments play an important role in
primarily liable acceptor is
the business world for they act as a substitute for
primarily liable
money, as a medium of exchange (most commercial
Presentment 1 for payment 1 for
transactions) and as a medium of credit transactions.
acceptance 1
8. Define Negotiable Instruments
for payment
Sundiang and Aquino defines NI, as a written
Right to limit Maker may not Drawer may
contract for (1) payment of money and (2) it passes
liability stipulate stipulate
from one person to another as money (3) in such
negation on his limitation on his
manner as to give a holder in due course the right to
liability liability
hold the instrument free from defenses available to
prior parties
9. Is there a statutory pro vision that defines a negotiable BoE Check
instrument? When payable On demand or Always on
None, definitions available are based only on at a fixed demand
annotations of the authors only. determinable
time
III. Classes of Negotiable Instrument Presentment Must be Need not be
presented for presented
10. What are the types of Negotiable Instrument? acceptance unless
Promissory Note and Bill of Exchange requested
11. What is a promissory note? Parties? Drawn on Need not be Need be drawn
A promissory note is an (1) unconditional promise, Deposit drawn on on deposit or
(2) in writing, (3) made by one person to another, (4) deposit else its fraud
signed by the maker engaging to pay (5) on demand When Ma ybe Must be
or at a fi xed or determinable future time (6) a sum presentment presented for presented for
certain in money. made payment within payment within
reasonable time a reasonable
There are two kinds of PN, Certificate of Deposit and after last time after its
Bond. Cert of Deposit is a written acknowledgement negotiation issuance
of a bank of its receipt of a certain sum with a promise Effect of If accepted If certified
to repay the same. While, bond is a certificate or acceptance/ drawer drawer are
evidence of debt on which the issuing company or certification becomes liable discharged
governmental body promises to pay the bondholders Effect of If w/ knowledge If w/ knowledge
a specified amount of interest for a specific length of drawers death of the bank, of the bank,
time and to repay the loan on expiration date. does not revoke revokes the
the authority of authority of the
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the drawee to banker to pay Transferability Transferable by Transferable by
pay negotiation or assignment only
assignment
15. Is the NI legal tender? Transferee The transferee can The transferee
No, they dont constitute legal tender. be a holder in due remains to be an
16. What is a legal tender? course if all the assignee and can
They are coins or banknotes that must be accepted requirements (Sec. never be a holder
if offered in payment of a debt. That kind of money 52) are complied in due course
that the law compels a creditor to accept in payment with
of his debt when tendered by the debtor in the right Defenses A holder in due All defenses
amount. course takes the available to prior
17. Is there a statutory provision that defines legal NI free from parties may be
tender? personal defenses raised against the
????? and defects in title last transferee
Nature of title Requires clean Transferee
IV. Functions of Negotiable Instrument title, one that is acquires derivative
free from any title only
18. What are the functions of NI? infirmities in the
The functions are SMC-PP instrument and
a. Substitute for money defects of title of
b. Medium of exchange prior transferors
c. Credit instrument that increases credit circulation Solvency of debtor Solvency of debtor Solvency of debtor
d. Increases purchasing power in circulation is in a sense is not guaranteed
e. Proof of transaction guaranteed by the unless expressly
19. If negotiable instruments are substitute for money, is indorsers because stipulated
non-negotiable instruments also substitute for they engage that
money? the instrument will
Yes, the issue is what is a better substitute. be accepted, paid
20. What is better? or both and that
The negotiable instrument, because, it has they will pay if the
characteristics that make the holder be a holder in instrument is
due course. dishonored
21. What are the benefits of a holder in due course?
Benefits are:
a. The holder is free from all defects compared with VII. Legal Tender
a non-holder in due course Discussed already
b. If the instrument is non-negotiable, the third
holder is only an assignee which stand in the CASE: Phil Educ Co. Vs. Soriano
shoes of the assignor FACTS: Enrique Montinola sought to purchase form the Manila
c. The third holder can exercise only the rights and Post office 10 money orders of 200 pesos each. Offering to
defects it acquired from the assignor pay for them with a private check, the teller advised Montinola
to see the Chief of the Money Order Division as private checks
V. Characteristics of Negotiable Instrument were not generally accepted in payment of money orders.
Negotiability and Accumulation of secondary contracts Without knowledge of the teller, Montinola managed to leave
the building with his own check and the 10 money orders.A
A. Negotiability notice was served upon all banks instructing them not to pay
22. Define negotiability anyone of the money orders aforesaid if presented for
It is an attribute whereby (1) a bill/note/check, may payment. Petitioner received one of the money orders and
pass from hand to hand similar to money (2) so as to deposited the same with Bank of America, and thereafter
give the holder in due course the right to hold the received 200 pesos. Soriano, Chief of the Money Order
instrument and to collect the sum payable for himself Division, notified the Bank of America that the money order
free from personal defenses attached has been found to have been irregularly issued and
B. Accumulation of Secondary Contracts that the amount had been deducted from the banks clearing
23. What is your understanding of ASC? account. Bank of America debited petitioners account with the
When negotiable instruments are transferred same amount and gave it advice b y means of a debit memo.
through negotiation, secondary contracts are Petitioner requested the Postmaster General to reconsider the
accumulated because the indorsers become deduction of 200 pesos, but it was denied. Montinola was
secondarily liable not only to their immediate charged with theft but was acquitted on the ground of
transferees but also to any holder any party. These reasonable doubt. Petitioner filed an action against respondent
indorsers are liable to said holder or whoever may be praying to countermand the notice given to the Bank of
compelled to pay the instruments. America, deducting 200 pesos from the banks clearing
account or to indemnify the petitioner the same amount with
VI. Negotiable Instruments Compared with Other Papers interest contending that the postal money order is a negotiable
24. Compare instrument and that its nature is not affected by the letter
addressed to all banks with a clearing account with the post
NI Non-NI office.
Applicable Law NIL Application of NIL
is only by analogy
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ISSUE: Whether or not a postal money order is a negotiable c. Preferable full name
instrument d. Need not be the genuine signature what is
important is the signer has intended to obligate
HELD: NO. himself
The postal statutes were patterned after similar statutes in 30. Why is the instrument need be in writing?
force in the US. For this reason, the Philippine statutes are To effectively substitute for money
generally construed in accordance with the construction given 31. Where should it be written?
in the US to their own postal statutes, in the absence of any In any paper or substitute for paper as long as it is
special reason justifying a departure from this policy or movable in nature.
practice. The weight of authority in the US is that postal money 32. May I write it on the board?
orders are not negotiable instruments, the reason behind this No, it should be written on something that can be
rule being that, in establishing and operating a postal money passed on.
order system, the government is not engaging in commercial B. Must contain an unconditional promise or order to pay
transactions but merely exercises a governmental power for a sum certain in money
the public benefit. Moreover, some of the restrictions imposed i. promise or order to pay must be conditional
upon money orders by postal laws and regulations are 33. What is your understanding of condition?
inconsistent with the character of negotiable instruments. Fo r Art. 1179 provides that it must be a future
instance, such laws and regulations usually provide for not and uncertain event
more than one endorsement; payment of money orders may 34. Draw a promissory note and BoE at the
be withheld under a variety of circumstances. board
PN
November 14, 2016
FORMS AND INTERPRETATION OF NEGOTIABLE CBTL, Cubao
INSTRUMENTS
10,000 PHP
I. Requisites of Negotiability 1 year after this date I promise to pay Miggy
25. Recite Sec. 1 NIL or order the sum of ten thousand pesos
Section 1 of NIL provides:
Section 1. Form of negotiable instruments. An Shanny
instrument to be negotiable must conform to the BoE
following requirements: November 14, 2016
(a) It must be in writing and signed by the maker or CBTL, Cubao
drawer;
(b) Must contain an unconditional promise or order to 10,000 PHP
pay a sum certain in money; 1 year after this date, pay Miggy or order the
(c) Must be payable on demand, or at a fi xed or sum of ten thousand pesos
determinable future time;
(d) Must be payable to order or to bearer; and Shanny
(e) Where the instrument is addressed to a drawee, he
must be named or otherwise indicated therein with To: Selina
reasonable certainty. President Meow Company
26. What do you mean by written, does it mean that the
instrument must be written by the maker? 35. How does PN differ from BoE?
No, it must be in writing. The term "instrument"
indicates a writing. The instrument must be in writing or PN BoE
reduced in tangible form; otherwise, nothing could be Nature Unconditional Unconditional
negotiated or passed from hand to hand. Writing includes Promise Order
not only that which has been written on paper and with a Number of 2 3 *drawer not yet a
pen or pencil but also that which is in print. (Sec. 191.) or Parties party unless he acc epts
bill
has been typed. The writing may be made upon leather,
doth or any other substitute for paper as long as it is Liability Maker is Drawee-
movable in nature. Such materials, however, are no primarily liable acceptor is
longer used in the usual exercise of business. The usual primarily liable
way is to have the instrument written or printed in durable Presentment 1 for payment 1 for
paper. acceptance 1
27. Where the instruments is ____ he must be named or for payment
otherwise stated therein. Right to limit Maker may not Drawer may
No, it must be indicated, not stated. liability stipulate stipulate
negation on his limitation on his
A. Must be in writing and signed by the maker or drawer liability liability
28. Is the instrument be entirely written by the maker
or drawer? 36. May condition refer to a past event?
No. Yes.
29. What is the participation of the maker or the 37. Why?
drawer? Because the happening of the past event is still unknown to
He is required to sign only. the parties.
a. May appear in any part of the instrument 38.Why should the presence of condition negates
b. Handwritten statement is considered a signature negotiability?
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???????
39. Will it defeat the purpose of negotiable instruments if there
is a condition?
Yes, for negotiable instrument may not be an effective
substitute for money.
(a.) reference to transaction
NOTE:
Sec. 3. When promise is unconditional. An
unqualified order or promise to pay is unconditional
within the meaning of this Act, though coupled with
(a) An indication of a particular fund out of which
reimbursement is to be made, or a particular account
to be debited With the amount; or
(b) A statement of the transaction which gives rise to
the instrument.
But an order or promise to pay out of a particular fund
is not unconditional.
** Sec. 3 provides that a statement of the transaction
that gave rise to the obligation covered by the note or
the bill does not destroy the negotiability of the
instrument. However, reference to another transaction
or document MUST BE DESCRIPTIVE RATHER
THAN RESTRICTIVE. In other words, the instrument
must give only the information that it was issued in
connection with a particular transaction or document.
It must not make the order or promise dependent on
or burdened by the other transaction
40. Do you agree that a promissory note be
made without a previous transaction?
No. Because generally, a person will not
attempt to make a PN w/o any previous
transaction that made him liable to pay the
money.
41. Is it necessary to indicate the very
transaction that give rise to the instrument?
No. It is not stated in Sec. 1. NIL
42. Will the omission or referral to the
transaction affects negotiability?
No. It is not stated in Sec. 1. NIL
43. What if you are subjecting the payment
of the instrument to that prior transaction?
Negotiability is now affected. Only recital
to the transaction will render no effect upon
the negotiability of the instruments.
44. What if subjected to the transaction but
the transaction being subjected contains no
conditions?
Still, it will affect the negotiability upon the
fact that on the face of the note, it could not
be determined it negotiability for it requires
inspection outside the face of the
instruments. PRINCIPLE: WE LOOK AT
ONLY THE FACE OF THE INSTRU MENT.
Why? Because if negotiated to others, they
dont have the opportunity to inquire the
condition imposed upon the instruments
which result to a defeat of the purpose of its
negotiability.
(b.) source or payment or account to be debited
ii. payable in sum certain in money
45. Recite Sec. 1
46. Is the sum payable be fixed?
No.
47. Is the law requiring it to be fixed?
No. Only sum certain. Thus, determinable capable of
ascertaining the certainty of sum.
48. What if the maker or drawer is given the option to pay
in money or to render some services? What is the effect?
It destroys negotiability.
49. Why does it destroy negotiability?
Because it become conditional dependent upon the will
of the make or acceptor to pay or not.
(a.) provision which do not affect certainty of sum payable
NOTE:
Sec. 2. Certainty as to sum; what constitutes. The
sum payable is a sum certain within the meaning of
this Act, although it is to be paid
(a) With interest; or
(b) By stated installments; or
(c) By stated installments, with a provision that upon
default in payment of an y installment or of interest the
whole shall become due; or
(d) With exchange, whether at a fixed rate or at the
current rate; or
(e) With costs of collection or an attorney's fee, in
case payment shall not be made at maturity.
(i.) payable with interest
50. What is an interest?
A sum charge for borrowing money. It is
represented by a rate.
51. Is it accessory or principal?
Accessory
52. What is an accessory?
53. What type of accessory is interest?
54. Why does the creditor impose interest?
To earn money his money
55. Will an imposition of interest affect the
negotiability of the instrument?
No, because the sum payable is still
determinable.
56. How come that interest will not affect the
negotiability of the ins trument?
Since a negotiable instrument is a device
intended as a substitute for money, it is,
therefore, essential that it represents a fixed
amount to be paid wholly in money. provision
for the payment of interest is a mere
incident; it does not render the instrument
non- negotiable because it does not make
uncertain the sum payable.
57. What if there is an intention to pay an
interest but the interest is not stated? Will it
affect the negotiability of the instrument?
No, the legal interest must be deemed
included in the instrument as provided in Art.
1175 NCC.
(ii.) payment by installments
58. In four installments
Non-negotiable. It must be four equal
installments.
59. Does payment by installment affect the
negotiability of the instruments?
It depends. If the installment is not stated
it is non-negotiable, if it is, negotiable.
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60. What do you mean by stated
installments?
Stated installments, within the meaning of
Section 2, means that: (a) the interest of
each installment, and (b) the due date of
each installment must be fixed in the
instrument.
61. Is four monthly equal installments
starting July 2008 negotiable?
Yes.
62. What if incase of default of pa yment at
maturity the whole amount shall become
due is stated in the installment?
Still negotiable
(iii.) acceleration clause
63. What is an acceleration clause?
A statement that hastens an occurrence
of an event. i.e. a promise that if any
installment or interest is not paid as agreed,
the whole shall become due
64. What is the event that accelerate the
maturity date?
Default of payment of any installment or
interest
65. Why default of payment accelerates the
maturity date?
Because upon default, it breaches the
conditions that allows the obligor to lose the
right to continue payment on installments
66. Why does a creditor establish such
acceleration clause?
It is for the protection of the creditor
67. How does it provide protection for the
creditor?
It gives him the assurance that the debtor
will pay as promised and provides him
remedy in case of breach
68. Will the acceleration clause affect
negotiability?
No. The sum is still certain although
payable by stated installments with an
acceleration clause, it does not make an
instrument payable upon contingency (and
so non-negotiable) since the time of payment
will surely come and the exact value of the
instrument can be ascertained.
(iv.) payment with exchange
NOTE: e xtension clauses are the opposite of
acceleration clauses. They appear in
instruments with fixed future maturity date
and provide that under certain
circumstances, the date shall be further
extended. An instrument is negotiable if, by
its terms, it is payable at a definite time
subject to extension at the option of the
holder, or to extension to a further definite
time at the option of the maker or acceptor or
automatically upon or after a specified event
69. What is an exchange? What is the
difference of value of currency of different
countries?
exchange is the charge for the expense of
providing funds at the place where the
instrument is payable to cover such
instrument which is issued at another place.
It may be at a fixed rate or at the current
rate.
70. Do they affect negotiability?
No. Because the current rate of e xchange
at any given time may easily be ascertained
by inquiry from the banks dealing on
exchange or foreign currencies and such
rate is a matter of common commercial
knowledge. An instrument whether payable
"at a fi xed exchange rate or at the current
rate" is deemed by the law to meet the "sum
certain" requirement.
71. May the debtor or creditor fix the
exchange rate?
Yes.
(v.) payment of attorneys fees
72. What is an attorneys fee?
The amount billed to a client for legal
services performed on his or her behalf.
73. Who will collect the note payable? Is it
the attorney?
74. May the parties fix the attorneys fees?
75. What if the fixed attorneys fees is lesser
than the actual cost of attorneys fees?
76.
CASE: MBTC vs. CA
FACTS: A certain Eduardo Gomez opened an account with
Golden Savings and deposited over a period of 2 months 38
treasury warrants which were all drawn by the Philippine Fish
Marketing Authority and purportedly signed by its General
Manager and counter-signed by its Auditor. 6 of these were
directly payable to Gomez while the others appeared to have
been indorsed by their respective payees, followed by Gomez
as second indorser. All warrants were subsequently indorsed
by Gloria Castillo as Cashier of Golden Savings and deposited
to its Savings account in Metrobank branch in Calapan,
Mindoro. They were sent for clearance. Gomez was meanwhile
not allowed to withdraw from his account but it finally decided
to allow Golden Savings to withdraw from the proceeds of the
warrants. Golden Savings subsequently allowed Gomez to
make withdrawals from his own account. Metrobank informed
Golden Savings that 32 of the warrants had been dishonored
by the Bureau of Treasury and demanded the refund by
Golden Savings of the amount it had previously withdrawn.
ISSUES: Whether or not the treasury warrants in question are
negotiable instruments
HELD: NO.
Clearly stamped on the treasury warrants' face is the word
"non-negotiable." Moreover, and this is
of equal significance, it is indicated that they are payable from
a particular fund, to wit, Fund 501. Under Section 3 of the NIL,
"An unqualified order or promise to pay is unconditional within
the meaning of this Act though coupled with (a) An
indication of a particular fund out of which reimbursement is to
be made or a particular account to be debited with the amount;
or (b) A statement of the transaction which gives rise to the
instrument. But an order or promise to pay out of a particular
fund is not unconditional." The indication of Fund 501 as the
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source of the payment to be made on the treasury warrants
makes the order or promise to pay "not unconditional" and the
warrants themselves non-negotiable.
Follow up questions:
77. What are treasury warrants?
It is a government warrant for the payment of money such
as that issued in favor of a public officer or employee covering
payment or replenishment of cash advances for official
expenditures. It is payable out of a specific fund or
appropriation.
78. What if the court decide the treasury warrants as
negotiable?
MBTC can then have a refund
79. What is the courts decision?
Treasury warrants are not negotiable
80. Why are treasury warrants not negotiable?
Because they are payable out of a particular fund
81. What fund?
Fund 501
82. Would it matter if the fund is sufficient or not for the
payment of the sum payable?
No. The fact that the source of payment is our of particular
fund it will suffice to be non-negotiable
83. Why?
Because it will be subjected to a condition
84.
CASE: Caltex Phils. vs. CA
FACTS: In 1982, Angel de la Cruz obtained certificates of time
deposit (CTDs) from Security Bank and Trust Company for the
formers deposit with the said bank amounting to
P1,120,000.00. The said CTDs are couched in the following
manner: This is to Certify that BEARER has deposited in this
Bank the sum of _______ Pesos, Philippine Currency,
repayable to said depositor _____ days. after date, upon
presentation and surrender of this certificate, with interest at
the rate of ___ % per cent per annum. Angel de la Cruz
subsequently delivered the CTDs to Caltex in connection with
the purchase of fuel products from Caltex. In March 1982,
Angel de la Cruz advised Security Bank that he lost the CTDs
and executed an affidavit of loss s ubmitted to the bank. The
bank then issued another set of CTDs. In the same month,
Angel de la Cruz acquired a loan of P875,000.00 and he used
his time deposits as collateral. In November 1982, a
representative from Caltex went to Security Bank to present
the CTDs (delivered by de la Cruz) for verification. Caltex
advised Security Bank that de la Cruz delivered Caltex the
CTDs as security for purchases he made with the latter.
Security Bank refused to accept the CTDs and instead
required Caltex to present documents proving the agreement
made by de la Cruz with Caltex. Caltex however failed to
produce said documents. In April 1983, de la Cruz loan with
Security bank matured and no payment was made by de la
Cruz. Security Bank e ventually set-off the time deposit to pay
off the loan. Caltex sued Security Bank to compel the bank to
pay off the CTDs. Security Bank argued that the CTDs are not
negotiable instruments even though the word bearer is
written on their face because the word bearer contained
therein refer to depositor and only the depositor can encash
the CTDs and no one else
ISSUES: Whether or not the Certificates of Time Deposit are
negotiable instruments
HELD: YES. The CTDs indicate that they are payable to the
bearer; that there is an implication that the depositor is the
bearer but as to who the depositor is, no one knows. It does
not say on its face that the depositor is Angel de la Cruz. If it
was really the intention of respondent bank to pay the amount
to Angel de la Cruz only, it could have with facility so
expressed that fact in clear and categorical terms in the
documents, instead of having the word BEARER stamped on
the space provided for the name of the depositor in each CTD.
On the wordings of the documents, therefore, the amounts
deposited are repayable to whoever may be the bearer thereof.
However, Caltex may not encash the CTDs because although
the CTDs are bearer instruments, a valid negotiation thereof
for the true purpose and agreement between Caltex and De la
Cruz, requires both delivery and indorsement. As discerned
from the testimony of Caltex representative, the CTDs were
delivered to them by de la Cruz merely for guarantee or
security and not as payment.
Follow up questions:
85. To whom the certificate of deposit issued?
Angel dela Cruz
86. Why is the determination of certificate of deposit important?
If negotiable, Caltex can claim, if not they have no claim.
87. What is the ruling of CA?
The certificate of deposit is non-negotiable because there is
an evidence that Angel is the bearer described in the certificate
of deposit, thus payable to a specified person.
88. What is the ruling of the Supreme Court?
They are negotiable instruments because upon
determination of the face of the instruments, the instruments is
repayable to the bearer of the instruments. If it should be the
intention to be repayable to a specified person/ Angel dela
Cruz, the same must be indicated therein and not the word
BEARER.
89. How did the SC argue on the place of evidence that Angel
is the one described as the depositor of the Certificate of
Deposit?
C. Payable on demand or at a fixed determinable future time
90. Recite Sec. 1
91. What is the third paragraph?
Must be payable on demand, or at a fi xed or determinable
future time
92. What is an instrument payable on demand?
It is an instrument to be paid upon demand by the buyer or
upon pleasure of the buyer?
93. What are the other words similar to upon demand?
Upon his pleasure, upon his option
(1.) when payable on demand
94. Recite sec. 7
Sec. 7. When payableon demand. A n
instrument is
(a) Where it is expressed to be payable on demand,
or at sight, or on presentation; or
(b) In which no time for payment is expressed.
Where an instrument is issued, accepted, or indorsed
when overdue, it is, as regards the person so issuing,
accepting, 6r indorsing it, payable on demand.
(2.) when payable at determinable
95. Recite Sec. 4.
Sec. 4. Determinable future time; what constitutes.
An instrument is payable at a determinable future
time, within the meaning of this Act, which is
expressed to be payable
(a) At a fixed period after date or sight; or
(b) On or before a fixed or determinable future time
specified therein; or
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(c) On or at a fixed period after the occurrence of a
specified event, which is certain to happen, though
the time of happening be uncertain.
An instrument payable upon a contingency is not
negotiable, and the happening of the event does not
cure the defect.

96. What do you mean by at sight?

97. What is an event?

98. Is the e vent contemplated in the provisions, a
condition?
No, it is a period
99. What is the difference between a period and a
condition?
Period is a future certain event while a condition is
a future uncertain event
100.Due 10 days before the death of Juan dela Cruz
Negotiable or not?
Non-negotiable, unable to determine the certainty
of the date

D. payable to order or bearer

101. What does these words mean?
words of negotiability
102. What is the importance of words of negotiability?
serves as consent to transfer the instruments through
negotiation
103. b