Nego Mid Quiz 1

This document contains a test on negotiable instruments with multiple choice and true/false questions. The multiple choice questions cover topics like the different parties involved in a promissory note, what constitutes negotiation and delivery of an instrument, and holders of negotiable instruments. The true/false questions require identifying whether sample instruments are payable to order or bearer. An answer key is provided with the correct response for each question.

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Nego Mid Quiz 1

Uploaded by

Koro Sensei

Available Formats

Download as DOCX, PDF, TXT or read online on Scribd

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Name: Date:

Course & Year: Score:

Test 1: Write the letter of the correct answer.

1. The person issuing a promissory note
a. Referee in case of need c. Maker
b. Indorser d. Payee
2. The party upon whom the bill is drawn
a. Payee c. Drawee
b. Indorsee d. Acceptee
3. One who possesses of the note or bill
a. Indorser c. Holder
b. Drawer d. Maker
4. The writing of the name of the payee on the instrument with the intent either to transfer
the title to the same, or to strengthen the security of the holder by assuming a contingent
liability for its future payment, or both.
a. Negotiation c. Assignment
b. Indorsement d. Issuance
5. It means the honesty in fact in the transaction concerned
a. Diligence c. Bad Faith
b. Good Faith d. Negligence
6. It is the intentional abandonment of a known right.
a. Protest c. Waiver
b. Delay d. Renouncement
7. It means the transfer of possession from one person to another
A. Conveyance c. Movement
B. Delivery d. Distribution
8. It is the transfer of a negotiable instrument form one person to another made in such a
manner as to constitute the transferee the holder thereof.
A. Assignment c. Issuance
B. Negotiation d. Trade
9. Who among the following is the holder of a negotiable instrument originally payable to
order?
a. The original payee who has negotiable instrument
b. The indorsee who is in possession of the instrument
c. The possessor of the instrument to whom the instrument was delivered
without any indorsement
c. The indoresee who has negotiable the instrument
10. An instrument which is not dated will be considered dated as at the time of:
a. acceptance
b. first indorsement
c. last indorsement
d. issuance

Test 2: Write PO if the given instrument is payable to order and PB for payable to bearer.

1. “I promise to pay Paul or order P10,000.”

(Sgd. D)
2. “I promise to pay to bearer P10,000.”
3. “I promise to pay C or holder P20,000.”
4. “I promise to pay Ar or order P15,000.00.”
(Sgd. Ar)
5. “Pay to Cellphone or order P30,000.” ( Addressed to A, signed D)
6. “Pay to Jose Rizal or order P10,000.” ( Addressed to A, signed D)
7. “Pay to the order of myself P10,000.” ( Addressed to W, signed R)
8. “Pay to A or order P10,000.00” (Addressed to A, signed by D)
9. “Pay to Dan or bearer P7,000. (Sgd. A)
10. “I agree to pay to B or order P10,000.00 . (Sgd. B)

Answer Key
1. C
2. C
3. C
4. B
5. B
6. C
7. B
8. B
9. B
10. D
TEST II
1. PO
2. PB
3. PB
4. PO
5. PB
6. PB
7. PO
8. PO
9. PB
10. PO