The future event i.e. death of B is certain, though date is uncertain. The instrument is valid.(ii) X promises to pay Y, by a promissory note, P500 and all other sums, which shall be due.The sum payable is not certain. Hence, it is not a negotiable instrument.11. A bill is drawn as "Pay to X or order the sum of ten thousand pesos". In the margin the amount stated is P1,000.Discuss the legal position.This bill is a valid bill for P10,000 because in case of discrepancy between the amount stated in figure and in words, the amountstated in words shall be the amount of the instrument.12. State with reasons whether each of the following instruments is bearer or order:CaseDecisionReasonA bill is drawn payable to X or bearer.A bill is drawn payable to X who endorses it in blank in favor of Y. A bill is drawn payable to X or order.A bill is drawn payable to X only. Bearer instrument Bearer instrumentOrder instrument Not a negotiable instrument at all It is expressed to be so payable. The last endorsement is an endorsement in blank.It is expressed to be so payable.The use of word ‘only’ prohibits or indicates an intention that bill shall not be transferred.13. A check originally expressed payable to bearer is subsequently made payable to order by endorsement in full. Is it an order fordrawee bank to pay the amount to bearer of the check?YES. A bearer instrument is one, which can change hands by mere delivery of the instrument. The instrument may be a promissory note or abill of exchange, or a check. It should be expressed to be so payable or on which the only or last endorsement is in blank.14. Comment on the following statement – ‘Once a bearer instruments always a bearer instrument’.Where a check is originally expressed to be payable to bearer, the drawee is discharged by payment in due course to the bearer thereof,despite any endorsement whether in blank or full appearing thereon not withstanding that any such instrument purported to restrict or excludefurther negotiation. In other words, the original character of the check is not altered so far as the paying bank is concerned, provided thepayment is made in due course. Hence the proposition that once a bearer instrument always a bearer instrument.
MASAOY, QUEENCEL MAE M.NEGO
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Promissory note, Negotiable instrument, Bearer instrument, Mae M