NEGOTIABLE INSTRUMENTS LAW

I. State if the following instruments are negotiable or not. Give your reasons briefly.
1. “I promise to pay James or order Php 1,000.00 out of the proceeds of the sale of my
house. (Signed) Nadine”
2. “I promise to pay Mocha or order Php 1,000.00 pursuant to the Contract of Sale dated
July 1, 2017. (Signed) Rody”
3. “I promise to pay to the order of Maya Php 1,000.00, subject to the terms and conditions
of the contract of mortgage. (Signed) Yaya”
4. “I promise to pay to the order of Daniel Php 1,000.00, payable in two equal monthly
installments. (Signed) Kathryn”
5. “To A: Pay to the order of bearer Php 10,000.00. (Signed) B”
6. “To Chloe: Pay to Coleen or order the sum of Php 50,000.000 five days after his pet dog,
Twinkle, dies. (Signed) Ram”
7. “I promise to pay Georgia or order Php 1,000.00 25 days after date. (Signed) Emma”

II. Case Problems

1. April bought a cellphone from May. May preferred cash but April is a friend so May
accepted April’s promissory note for Php 10,000.00. May thought of converting the note
into cash by endorsing it to his brother June. The promissory note is a piece of paper with
the following hand printed notation: - APRIL WILL PAY MAY TEN THOUSAND
PESOS IN PAYMENT FOR HIS CELLPHONE 1 WEEK FROM TODAY.

Below this notation was April’s signature with July 1, 2017 next to it, indicating the date
of the promissory note. When May presented the note to June, June said it was not a
negotiable instrument under the law so it could not be a valid substitute for cash. May
insisted that the note is negotiable. Who is correct? Why?

2.
August 1, 2017

Php 100,000.00

Sixty days after date, I promise to pay Mr. Mulawin or his designated representative the
sum of one hundred thousand pesos (Php 100,000.00) from my BPI Acct. No. 1234 if, by
this due date, the sun still sets in the west to usher in the evening and rises in the east the
following morning to welcome the day.

(Sgd.) Mr. Ravena

Explain each requirement of negotiability present or absent in the instrument.