DE LA SALLE LIPA
College of Business, Economics, Accountancy and Management Accountancy Department Business Law - Review COERA!E" A# Contra Contract ct of $artner artners% s%ip ip a# &ature &ature and and as as disting distinguis% uis%ed ed from from corporat corporation ion '# Elem Elemen ents ts and and (in (inds ds c# )orma ormali liti ties es re* re*ui uire red d d# Rules ules of mana manage geme ment nt e# Distr Distri' i'uti ution on of pro pro+ts +ts and and loss losses es f# %ari %aring ng of losses losses and lia'il lia'iliti ities es g# Mode Modes s of of dis disso solu luti tion on %# Limi Limite ted d part partne ners rs%i %ip p B# Law on &ego &egotia tia'l 'le e nstr nstrume uments nts a# &egoti &egotia' a'le le nstr nstrum ument ents s Law '# &egoti &egotia' a'ili ility ty of nstr nstrume ument nt c# )uncti )unctions ons and and (ind (inds s of negotia' negotia'le le instru instrument ments s d# Construc Construction tion of am'iguo am'iguous us instrume instrument nt e# $arties arties and and t%ei t%eirr lia' lia'ili ilitie ties s f# ndorsements g# Acco Accomo moda dati tion on part party y %# Cons Consid ider erat atio ion n i# Manner Manner and and cons conse*u e*uenc ence e of transf transfer er of instr instrume uments nts .# Dis%onored Dis%onored instruments instruments and its e/ects e/ects (# Re*uis e*uisite ites s of %olde %olderr in due due cour course se l# Defen efens se of of parti arties es m# )orge orgery ry and and its e/ec e/ects ts n# Disc%ar Disc%arge ge of negotia'le negotia'le instrum instruments ents and t%e t%e parties parties secondaril secondarily y lia'le
a da nds e l e c tt hebe s ta ns we rf o rt hef o l l o wi ngque s t i o ns . Di r e c t i on:Re 1.
The following statements concerning concerning the designation of share in the profits and losses by a third third person or by a partner partner are correct, except a. If entrusted entrusted by the partner partnerss to a third person, person, it is binding upon upon the partners partners and may be impugne impugnedd only when it is manifestly manifestly inequitab inequitable. le. b. If the designatio designationn by a third person person is manifestly manifestly inequitable inequitable,, it can no longer be impugne impugnedd by a partner who has has begun to execute execute it. c. If the designatio designationn by a third person person is manifestly manifestly inequitable inequitable,, it can no longer be impugne impugnedd by any partner partner if three months months had already already lapsed from the time he obtained knowledge thereof. d. If entrust entrusted ed to one of the the partner partners, s, the the designat designation ion is is valid. valid. 2. hen a partner partner has been been appointed appointed manager manager in the articles articles of partnership partnership,, the following following are the rules rules to be observed, observed, except except a. The managing managing partner partner may execute execute all acts of administra administration tion despite despite the oppositio oppositionn of his partners partners unless he acts acts in bad faith. faith. b. ith !ust or lawful lawful cause, cause, the revocation revocation of the power power of the managin managingg partner partner with !ust or lawful lawful cause can be made made by the vote of the the partners owning the controlling interest. c. ithout ithout !ust or lawful lawful cause, the the revocation revocation of the power power of the managing managing partner partner can be made made only with the consent consent of all the partner partnerss including the managing partner. d. The managing managing partne partnerr decision decision on acts of administ administratio rationn may reversed reversed by the vote vote of ma!ority ma!ority of the the partners. partners. ". hen a partner has been appointed manager after the partnership has been constituted, the following are the rules, except a. The managing partner may execute all acts of administration. b. In case of opposition to the decision of the managing partner on acts of administration, the partner owning the controlling interest may resort to voting for his removal as manager. c. #e may be removed with !ust cause by the vote of the partners owning the controlling interest. d. #e may be removed without !ust cause by the vote of all partners including the managing partner. $. The following are the rules when two or more partners have been appointed as managers, except a. hen there is a specification of their respective duties, each managing partner shall perform only the duties specified in his appointment. b. hen there is no specifi cation of their respective duties or there is no stipulation that one shall not act without the consent of the others, each one may separately execute all acts of administration. c. hen there is no specification of their respective duties or there is no stipulation that one shall not act without the consent of the others, the decision of the ma!ority of the managing partners shall prevail in case of opposition. d. hen there is no specifi cation of their respective duties or there is no stipulation that one shall not act without the consent of the others, the decision of managing partner owning the controlling interest shall prevail in case of tie in voting. e. hen there is a stipulation that none of the managing partners shall act without the consent of the others, the vote of the ma!ority of managing partners shall be necessary for the validity of the acts.
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%. hen the manner of management has not been agreed upon, the following are the rules, except a. &ll the partners shall be considered agents of the partnership or all of them are managers. b. &ny of the partners may make any important alteration in the immovable property of the partnership without the consent of the others if it may be useful to the partnership. c. hatever any of the partners may do alone shall bind the partnership. d. In case of opposition of the other partners, the decision of the ma!ority shall prevail and the decision of the partners owning the controlling interest shall prevail in case of tie. '. hich of the following statements is true as regards to the right of industrial partner to engage in another business( a. &n industrial partner cannot engage in a business of the same kind for himself unless the partnership expressly permits him to do so. b. &n industrial partner cannot engage in any business for hims elf, unless the partnership expressly permits him to do so. c. &n industrial partner may engage in any business for himself, unless the partnership expressly prohibits him to do so. d. &n industrial partner may engage in a business of the same kind for himself, unless the partnership expressly prohibits him to do so. ). hat is the remedy of the capitalist partner if the industrial partner engages in business for himself without the express permission of the partnership( I. *xclude him from the partnership with a right to damages II. &vail themselves of the benefits obtained from the business he engaged in with a right to damages a. *ither I or II b. +either I nor II c. I only d. II only . hich of the following statements is true as regards to the right of capitalist partner to engage in another business( a. The capitalist partner cannot engage in any business. b. The capitalist partner can engage in a business of different kind if there is stipulation allowing him to do so. c. The capitalist partner can engage in a business of the same kind even without stipulation allowing him to do so. d. The capitalist partner can engage in a business of different kind even without stipulation allowing it and in a business of the same kind if there is a stipulation allowing him to do so. -. hat is the effect if a capitalist partner engages in the same kind of business without stipulation allowing him to engage in that business( I. The capitalist partner shall bring to the common fund any profits accruing to him from the transaction. II. The capitalist partner shall bear all the losses. a. I only b. II only c. +either I nor II d. oth I and II 1/. The following are the rules on sharing of partnership liabilities to third persons, exc ept a. The liability of the partnership shall be equally divided among the partners. b. *ach general partner, whether capitalist or industrial, shall be liable with his separate property after all the assets of the partnership have been exhausted. c. & stipulation exempting a general partner from pro rata and subsidiary liability after the exhaustion of partnership asset is valid as to third persons. d. & stipulation exempting a general partner from pro rate and subsidiary liability after the exhaustion of partnership asset is vali d among the partners. 11. If there is stipulation exempting a general partner from pro rata and s ubsidiary liability, the following are the rules, except a. The assets of the partnership shall first be used to pay the liabilities. b. If the partnership assets are not sufficient, the liability shall be paid equally from the separate assets of the general partners, including industrial partner. c. The industrial partner is not required to share in the excess of liability of partnership over the assets. d. The general partners not exempted from pro rata and subsidiary liability shall reimburse according to the partner0s profit or loss sharing agreement or in the ratio of their capital contribution, whichever is applicable, to industrial partner and general partner exempted from pro rata and subsidiary liability. 12. &, and are general partners of & artnership. is an industriall partner. The partners agreed that shall be exempted from pro rata and subsidiary liability to third persons. The total assets of the partnership is /,/// and the total liabilities to third persons is 11/,///. #ow should the deficiency be shouldered by the partners in the point of view of third persons( a. & 3 "/,/// b. & 3 1%,/// and 3 1%,/// c. & 3 1%,/// and 3 1%,/// d. &41/,///, 41/,/// and 41/,/// 1". 5sing the same data in number 12, what should be the final settlement among the partners( a. & shall pay and 1/,/// each. b. & shall pay %,/// and shall pay %,///. c. There is not settlement among the partners.
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d. & shall pay %,/// and shall pay %,///.
1$. 5sing the same data in number 12 except the fact that i s an industrial partner, how should the deficiency be shouldered by the partners in the point of view of third persons( a. & 3 "/,/// b. & 3 1%,/// and 3 1%,/// c. & 3 1%,/// and 3 1%,/// d. &41/,///, 41/,/// and 41/,/// 1%. 5sing the same data in number 12 except the fact that i s an industrial partner, what should be the final settlement among the partners( a. & shall pay and 1/,/// each. b. & shall pay %,/// and shall pay %,///. c. & shall pay 1%,///. d. & shall pay %,/// and shall pay %,///. 1'. & partnership shall operate under a firm name, which may or may not include the name of one or more of the partner. If a third person, not being a member of the partnership, includes his name in a firm name, what shall be the effect( a. The third person shall not be liable as a partner. b. The third person shall be entitled to all rights of a partner. c. The third person shall be sub!ect to the !oint liability of a partner and will be considered a nominal parner. d. The third person shall be solidary liable with all the partners. 1). In the absence of stipulation to the contrart, when s hall the !uridical personality of the partnership begins( a. 6rom the moment the partners have completed their contributions. b. 6rom the moment of the execution of the contract. c. 6rom the moment of registration with the 7*. 1. In the absence of stipulation to the contrary, what is the obligation of the partners as to the contribution of capital( a. To contribute equally to the capital of the partnership. b. To ask the court for the amount of contribution. c. To ask third party to designate the amount of contribution. 1-. The following are the obligations of the partners with respect to contribution of property, except a. To deliver to the partnership at the time it was constituted or on the date stipulated the property he has promised to contribute. b. To take care of the property before its delivery to the partnership with the diligence of a good father of a family. c. To be liable for damages i n case of default. d. To answer for eviction in case the partnership is deprived of the s pecific or determinate thing he has contributed to the partnership. e. To be liable for the fruits of the thing from the time they should have been delivered with the need of any demand. 2/. The following are the obligations of the partners with respect to the contribution of money, except a. To deliver to the partnership at the time it was constituted or on the date stipulated the money he has promised to contribute. b. To pay interest on the amount he had promised to contribute from the time he should have complied with his obligation. c. To pay damages suffered by the partnership by reason of the default. d. To answer for eviction. 21. The following are the obligations of the partner with respect to amount appropriated, except a. To reimburse to the partnership the amount that he has taken from the partnership coffers. b. To misappropriate all amounts received. c. To pay interest on the amount he had converted for his own use from the time of conversion. d. To pay the damages suffered by the partnership by reason of the conversion. 22. hat is the obligation of a partner in case of imminent loss of the business of the partnership( a. To contribute additional share of capital to the capital and to sell his interest to the other partners if he refuses to contribute such additional capital unless he is an industrial partner or exempted by stipulation. b. To sell his interest to the other partners even if he wants to contribute. c. To dissolve the partnership. d. To convert the partnership into a corporation. 2". The following are obligations of a partner to the partnership, except a. To bring to the partnership capital his share of a partnership credit which he has received in whole or in part even he may have given his receipt i f the other partners have not collected their shares and the debtor becomes insolvent after the partner has received the payment. b. To pay to the partnership for damages suffered by it through his fault but he cannot compensate them with the profits and benefits which he may have earned for the partnership by his industry. c. To bear the risk of specific and determinate things owned by the partnership. d. To render on demand true and full information of all things affecting the partnership to any partner, legal representative of any deceased partner or legal representative of any partner under disability. d. To account to the partnership for any benefit and hold as trustee for it any profits, derived by him without the consent of the partners from any transaction connected with the formation, conduct or liquidation of the partnership or from use by him of its property.
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2$.The partnership shall bear the risk of loss for the following contributions of partners, except a. 6ungible things or those that cannot be kept without deteriorating. b. Things contributed to be sold. c. Things brought and appraised in the inventory unless there is a stipulation. d. 7pecific and determinate things owned by a partner which are not fungible, contributed to the partnership so that only their use and fruits may be for the common benefit. 2%. hich of the following obligations of the partnership are the responsibility of a newly4admitted partner( I. 8bligations existing at the time of his admission but only to the extent of his contribution except if there is an agreement that his liability shall extend to his separate property. II. 8bligations incurred after his admission and he is liable like the other partners pro rata with their separate property after the partnership assets have been exhausted. a. I only b. II only c. +either I nor II d. oth I and II 2'. The following are the rights of a partner in a partnership, except a. To associate another person with him in his share. b. To admit another person into the partnership without the consent of all the partners. c. To have access to and ins pect and copy the partnership books at reasonable hours. d. To have formal account of partnership affairs. 2). The following are the cases when a partner may demand a formal account of partnership affairs, except a. If he is wrongfully excluded from the partnership business or possession of its property by his co4partners. b. If the right exists under the terms of any agreement. c. ith respect to benefits or profits derived by a partner without the consent of the partners from any transaction connected with the formation, conduct or liquidation of the partnership or from use by him of its property. d. hen a partnership property is loss due to fortuitous event. e. henever other circumstances render it !ust and reasonable. 2. The following statements are true as regards to the property rights of a partner in a specific partnership property, except a. & partner is co4owner with his partners of specific partnership property. b. & partner, except as provided by law and as agreed upon by the partners, has an equal right to possess specific partnership property for partnership purpose. c. This right is assignable to third person. d. The right is not sub!ect to attachment or execution except on a claim against the partnership. e. The right is not sub!ect to legal support. 2-. The following statements are true as regards to the right of a partner on his interest in the partnership, except a. The partner0s interest in the partnership is his share of the profit and surplus. b. The partner cannot convey or assign his whole interest in the partnership. c. The partner0s interest in the partnership may be attached for his separate debts sub!ect to the preference for partnership creditors. "/. The following are the effects of the conveyance or assignment of a partner0s interest in a partnership, except a. The conveyance or assignment dissolve the partnership. b. The assignee does not become a partner. c. The assignee has not right to interfere in the management of business, to require any information of partnership transactions or to inspect partnership books. "1. The following are the rights of an assignee of partner0s interest, except a. To receive the profits to which the assigning partner would otherwise be entitled. b. To avail himself of the usual remedies in case of fraud in management. c. In case the partnership is dissolved, to require an account from the date only of the last d. To interfere in the management of the business. "2. The following are the rules for application of payment when a person owes separate demandable debts to the partnership and to the partner authori9ed to receive credit, except a. If the partner authori9e to receive issues the receipt for the partnership, payment shall be applied to the partnership credit. b. If the partner authori9ed to receive issues his own receipt, payment shall be applied to the two credits proportionately. c . If the debt to the partnership is not yet due, the payment shall be applied to the partner0s credit in its entirety. d. If the debt owed to the partnership is more onerous, the payment shall be applied to the partner0s credit in i ts entirety. e. If the debt is owed to a partner not authori9ed to receive payment, the payment shall be applied to the partnership credit. "". The following are the obligations of the partnership to the partners, except a. To pay to the partner any amounts he may have disbursed for the partnership with interest from the time the expenses were made.
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b. To pay for the obligations which a partner may have contracted in good faith in the interest of the partnership business. c. To answer for risks in consequence of its management. d. To answer for personal obligations and expenses of the partner.
"$. The following are the cases wherein the partnership shall be solidarily liable with all the partners, except a. 6or loss or in!ury caused to a third person or any penalty is incurred by reason of the wrongful act or omission of any partner acting in the ordinary course of business of the partnership or with the authority of his co4partners. b. here one partner acting within the scope of his apparent authority receives money or property of a third person and misapplies it. c. here the partnership in the course of business receives money or property of a third person and such money or property is misapplied by any partner while it is in custody of the partnership. d. here the partnership liabilities exceed the partnership assets. "%. In which of the following instances s hall the partnership be bound by the acts of the partners( I. If the partner is authori9ed to act for the partnership whether or not the act is for apparently carrying on in the usual way the business of the partnership. II. If the partner is not authori9ed to act for the partnership but the act i s for apparently carrying on in the usual way the business of the partnership and the third person has no knowledge of the partner0s lack of authority. III. hen although the act is for the apparently carrying on in the usual way the business of the partnership, the partner is not authori9ed to act for the partnership and the third person has knowledge of the partner0s lack of authority. I:. hen the partner is not authori9ed to act for the partnership and the act is not for apparently carrying on i n the usual way the business of the partnership whether or not the third person has knowledge of the partner0s lack of authority. a. I and II b. III and I: c. I and III d. II and I: "'. The following acts are not considered for apparently carrying on in the usual way of business of the partnership and may not be performed by a partner unless he is authori9ed by all the other partners, except a. &ssignment of partnership property in trust for creditors or on the assignee0s promise to pay the debts of the partnership. b. ;isposition of the goodwill of the business. c. &cts which would make it i mpossible to carry on the ordinary business of the partnership. d. onfession of !udgment. e. ayment of the salary of partnership0s employees. f. *ntering into a compromise concerning a partnership0s claim or liabili ty. g. 7ubmission of a partnership claim or liability to arbitration. h.
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a. artnership creditors shall be paid out first out of partner0s separate assets. b. artner0s separate creditor shall be paid out of the share of the partner owing him if there is an excess in the partnership0s assets over partnership0s liabilities. c. The partner0s separate creditors have preference over the partner0s separate assets. d. The partnership0s creditors have preference over the partnership0s assets. $1. hich of the following statements pertain to dissolution( a. It is the change in the relation of the partners caused by any partner ceasing to be associated in the carrying out of the business. b. It is the process of settling the disputes or affairs of the partnership after dissolution. c. It refers to the point when all the business or affairs of the partnership are completely wound up. $2. The following are the causes of dissolution of a partnership without violation of the agreement of the parties, except a. y the termination of the definite term of particular undertaking specified in the agreement. b. y the express will of all the partners who have not assigned their interests or suffered them to be charged for their separate debts, either before or after the termination of any specified term or undertaking. c. y the express will of any partner who acts in bad faith when no definite term or particular undertaking is specified. d. y the expulsion of any partner bona fide or in good faith from the business in accordance with such power conferred by the agreement of the parties. $". In addition to number $2, the following are the causes of dissolution, except a. In contravention of the agreement between the partners, by the express will of any partner at anytime such as withdrawing from the partnership. b. hen any event makes it unlawful for the business of the partnership to be carried on or for the members to carry it on in partnership. c. =oss before or after delivery of property where the partner contributed only its use or en!oyment. d. =oss before delivery of specific thing, which a partner has promised to contribute to the partnership. e. y the death of any partner. f. y the insolvency of any partner or of the partnership. g. y the civil interdiction of any partner. h. y decree of court in the cases provided by l aw. i.
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a. b. c. d.
I 3 II 3 III II 3 I 3 III III 3 II 3 I I 3 III 3 II
$-. Indicate the proper order of payment of liabilities of limited partnership in li quidation. I. Those to creditors, including limited partners. II. Those to limited partners by way of their share of the profits and other compensation by way of income on their contribution. III. Those to limited partners in respect to the capital of their contributions. I:. Those to general partners other than for capital and profits. :. Those to general partners in respect to profits. :I. Those to general partners in respect to capital. a. I 3 II 3 III 3 I: 3 : 3 :I b. I 3 II 3 I: 3 III 3 : 3 :I c. I 3 II 3 III 3 I: 3 :I 3 : d. I 3 II 3 I: 3 III 3 :I 3 : %/. hat is the effect if there is no substantial compliance with the registration of certificate of limited partnership with the 7*( a. The partnership contract is null and void. b. The limited partnership exists. c. The partnership will be considered a general partnership. %1. hich of the following statements concerning a l imited partnership is incorrect( a. &dditional limited partners may be admitted after the formation by filing an amendment to the original certificate without dissolving the limited partnership. b. The retirement, death, civil interdiction, insanity or insolvency of a general partner dissolves the limited partnership. c. The retirement, death, civil interdiction, insanity or insolvency of a limited partner dissolves the limited partnership. d. &n industrial partner may become a general partner but is not allowed to become a limited partner. %2. The +egotiable Instruments =aw is also known as a. &ct +o. 2/"1 b. &ct +o. "/21 c. &ct +o. 21"/ d. &ct +o. "12/ %". The following are the functions of negotiable instruments, except a. They are a substitute for money. b. They increase the purchasing medium in circulation. c. They increase credit transactions. d. They are intended as legal tender. %$. It is an attribute of a negotiable instrument which means that as the i nstrument is passed from one person to another, secondary contracts are entered into thereby increasing the chances of the holder to col lect the amount payable on the instrument. a. &ccumulation of secondary contracts b. +egotiability c. &ssignability d. Tenderability %%. It is an attribute of a negotiable instrument which allows it to be passed from one hand to another similar to money, so as to give the holder in due course the right to hold the i nstrument and collect the sum payable, for himself free from defense. a. &ccumulation of secondary contracts b. +egotiability c. &ssignability d. Tenderability %'. The following are the kinds of negotiable instruments, except a. romissory note b. ill of exchange c. hecks d. ill of lading %). hich of the following statements pertain to promissory note( a. 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. b. 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 at a fixed or determinable future time a sum certain in money to order or to bearer. c. It is a bill of exchange drawn on a bank payable on demand.
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%. The following are the parties in a promissory note, except a. >aker b. ayee c. Indorsee?Indorser d. &cceptor
%-. The following are the parties in a bill of exchange, except a. ayee b. ;rawer c. ;rawee4&cceptor d. >aker e. Indorser?Indorsee '/. The following are the essential requisites of a negotiable instrument@ A454;484;B a. W 3 It must be in Writing and signed by the maker or drawer. b. U – It must contain an Unconditional promise or order to pay a sum certain in money. c. D – It must be payable on Demand, or at a fixed or determinable time. d. O – It must be payable to Order or bearer. e. D – here the instrument is addressed to a drawee, he must be named or otherwise indicated therein with reasonable certainty. '1. ;etermine whether or not the following instruments are negotiable@ a. I promise to pay or bearer the sum of 1/,///. sgd &. b. >r. C will oblige D by paying E or order 1,/// on his account. To D. 7gd E. c. I agree to pay to the order of 1,///. 7gd. & d. Food to D or order 1,///. 7gd. &. e. ;ue D 1,///. 7gd. & f. ;ue D or order on demand 1,///. 7gd. & g. ay to D or bearer 1,/// if he marries E. To E. 7gd. & h. I promise to pay to or order 1,/// ten days after the death of D. 7gd.&. i. I promise to pay D or order 1,/// A"/B days from this date, at %G interest. 7gd. &. !. I promise to pay to or order 1,/// together with all sums that may be due to him on ;ecember "1,1-%/. 7gd &. k. I promise to pay to or order 1,/// in carabaos. 7gd. &. m. I promise to pay to or his order H1,///. 7gd. & n. I promise to pay D or order 1,/// on or before ;ecember 2. 7gd &. o. ay to or his assigns 1,///. To D. 7gd. & p. I promise to pay to the order of bearer 1,///. 7gd. &. q. I promise to pay to or his agent or his collector, the sum of 1,///. 7gd. & r. ayable to possessor 1,/// on demand. 7gd &. s. I promise to pay to bearer 1,///. 7gd &. t. I promise to pay to 1,///. 7gd. &. '2. The sum payable is sum certain for negotiable instruments although it is to be paid under the following instances a. ith interest b. y stated installments c. y stated installments with escalation clause d. ith exchange, whether at a fixed rate or at a current rate. e. ith costs of collections or an attorney0s fee '". hich of the following instrument is not negotiable because the sum is not c ertain( a. I promise to pay to or order 1,/// in installments. b. I promise to pay to or bearer 1,/// in four equal monthly installments beginning anuary 1,1-%. c. I promise to pay to the order of the sum of 1// in two installments as follows@ A1B $% on 6eb. 1,1-% and A2B %% on une 1, 1-%. d. ay to or order H1,/// on the current exchange rate. e. ay to or order 1,/// with 12Ginterest until paid and with collection costs and attorney0s fee if not paid at maturity. '$. & promise is unconditional for negotiable instruments although coupled with the following, except a. &n indication of a particular fund out of which reimbursement is to be made. b. &n indication of a particular account to be debited with the amount. c. & statement of the transaction which gives rise to the i nstrument. d. &n order or promise to pay out of a particular fund. '%. hich of the following instruments is non4negotiable because of conditional promise( a. ay to or order 1,/// and reimburse yourself out of my money on your hands. b. ay to or bearer 1,/// and debit the amount to my receivable. c. ay to or order 1,/// out of my salary in the company.
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d. ay to or order on account of contract between you and & Inc. ''. The following are considered determinable future time, except a. &t a fixed period after date or si ght. b. 8n or before a fixed or determinable future time specified therein. c. 8n or at a fixed period after the occurrence of a specified event which is certain to happen, though the time of happening be uncertain. d. ayable upon a contingency upon the happening of the event.
'). hich of the following instruments is non4negotiable because it is not payable in a determinable future time( a. '/ days after sight, pay to the order of 1,///. b. 8n or before ;ecember "1,1-%, I promise to pay D or order 1,///. c. 8n the death of D, I promise to or order 1,///. d. 1/ days before death of &, I promise to pay or bearer 1,///. e. I promise to pay D or bearer 1,/// 1/ days after passes the bar examination. '. The following provisions do not affect negotiability, except a. &uthori9ation of sale of collateral securities in case the instrument be not paid at maturity. b. &uthori9ation of confession of !udgment if the instrument be not paid at maturity. c. aiver of the benefit the law intended for the advantage or protection of the obligor. d. Fiving the holder an election to require something to be done in lieu of payment of money. e. &n order or promise to do any act in addition to the payment of money. '-. hich of the f ollowing instruments is non4negotiable( a. I promise to pay to bearer 1,/// and to deliver him two carabaos. b. I promise to pay to or order 1,/// on ;ecember 1,1-%, provided, howeber, that if this note is not paid at maturity date, the ring pledged may be sold at public auction. c. 7ix months after date, I promise to pay to or order 1,/// waiving the right to appeal and all of valuation appraisement. d. I promise to pay or order 1,/// or 1/ dogs at the option of holder. e. I promise to pay or order 1,/// or 1/ dogs. )/. The validity or negotiable character of an instrument are not affected by the following, except a. It is not dated. b. It does not specify the value given, or than any value had been given therefore. c. It does not specify the place where it is drawn or the place where it is payable. d. It bears a seal. e. It designated a particular kind of current money in which payment is to be made. f. It is not signed by the maker or drawer. )1. The following are the instances when a negotiable instrument is payable on demand, except a. here it is expressed to be payable on demand, or at sight or on presentation. b. here it is payable at a fixed period after date or sight. c. here no time for payment is expressed. d. here an instrument is issued, accepted, or indorsed when overdue, as regards to the person issuing, accepting or indorsing it. )2. The instrument is payable to order where it is drawn payable to the order of a specified person or to him or his order. It may be drawn payable t o the order of the following a. & payee, who is not maker, drawer, or drawee b. The drawer or maker c. The drawee d. Two or more payees !ointly e. 8ne or some of several payees f. The holder of an office for the time being g. earer )". The following instruments are payable to order, except a. I promise to pay to the order of 1,///. b. ay to the order of ourselves 1//.//. To . c. I promise to pay to the order of myself. d. I romise to pay to yourself or order. To C. e. I promise to pay to & and or order 1,///. f. I promise to pay to the order of & or 1,///. g. I promise to pay to the order of cashier of ;=7=. h. I promise to pay to the order of the bearer. )$. The following are the instances when the instrument is payable to bearer, except a. hen it is expressed to be so payable to bearer. b. hen it is payable to a person named therein or bearer. c. hen it is payable to the order of a fictitious or non4existing person, and such fact was known to the person making it so payable. d. hen the name of the payee does not purport to be the name of any person. e. hen the only or last indorsement is an in indorsement in blank.
DLSL CPA Board Operation - Business Law Page 9 of 9
f. hen it is payable to a specified person. )%. The following instruments are payable to bearer, except a. ay to bearer 1,///. b. ay to or bearer 1,///. c. ay to the order of 7piderman4olverine 1,///. d. ay to cash. ay to the order of money. ay to the order of cash. e. ay to D or order 1,///. To C. 7gd F. Indorsement. 7gd C. f. ay to bearer 1,///.
DLSL CPA Board Operation - Business Law Page 1" of 9
