COMPILATION OF BLAW QUIZ 15.

TRUE: a person who is secondarily liable for the note can

recover money from the primary debtor after paying it.
TRUE OR FALSE 16. TRUE: a negotiable instrument that is materially altered
and is in possession of a holder in due course may
1. TRUE: If the instrument is payable to order of the drawer,
enforce payment to its original tenor or true amount of
the irregular indorser is liable to the payee and to all
the instrument.
subsequent parties.
17. FALSE: an accidental destruction of instrument would
2. FALSE: maker can negate his/her liability.
constitute acceptance.
3. FALSE: an irregular indorser makes either blank or
18. TRUE: an acceptance may be on the bill itself or on
special indorsement, while general indorser always
separate instrument.
makes a blank indorsement.
19. TRUE: acceptance of a bill, as definition in section 132,
4. TRUE: by presentation for payment is meant the
is the drawee’s indication of agreement to the drawer’s
presentation of instrument (i.e. Promissory note or
order.
accepted bill) to the person primarily liable for the
20. FALSE: when qualified acceptance is taken, the drawer
purpose of demanding and receiving the payment.
and indorsers remain liable on the bill regardless of any
5. TRUE: a maker can waive their right to exhibit a
authorization.
negotiable instrument if they refuse payment on other
21. FALSE: general acceptance includes qualification to the
grounds without demanding to see the instrument.
order of the drawer.
6. TRUE: section 84 states that when the instrument is
22. TRUE: when Saturday is not a public holiday, the
dishonored by non-payment, an immediate right of
presentation for the acceptance should be made before
recourse to all parties secondarily liable thereon
12:00 noon.
accrues to the holder.
23. TRUE: the person who draws or endorse dishonored bill
7. FALSE: in section 88, with the first requirement of
of exchange remain liable, even in the event of non-
constitution of payment in due course, payment before
acceptance.
maturity discharged the instrument.
24. FALSE: if the drawee is bankrupt, presentation can only
8. FALSE: notice of dishonor is bringing only verbally to the
be made to the drawee personally, not to their trustee.
knowledge of the drawer or indorser of an instrument.
25. TRUE: presentation of bill payable for acceptance is
9. FALSE: according to section 143, if notice of dishonor
necessary.
was given by a notary public, then it is called protest.
26. FALSE: another name for acceptance for honor is
10. FALSE: section 90, a notice by a mere stranger is
acceptance super protest.
effectual unless he is acting as an agent of a party who is
27. FALSE: the maturity of a bill payable after sight, that is
entitled to give notice of dishonor.
accepted for honor is calculated from date of
11. FALSE: a protest is an informal instrument that is made
acceptance for honor.
by notary public that a negotiable instrument was not
28. TRUE: the liability of acceptor for honor is considered
paid or accepted when presented.
secondary rather than primary.
12. FALSE: according to section 97, a notice of dishonor may
29. FALSE: acceptance for honor does explicitly mention the
not be given either that party himself or his agent in that
party whose honor is made.
behalf.
30. FALSE: when making presentation is excused, section
13. FALSE: the in favor of principal in the effect of
91 applies.
renunciation may be made before, at or after maturity of
31. FALSE: the concept of payment supra protest does not
the instrument.
apply to a promissory note.
14. FALSE: the payment from a secondarily obligor can
32. FALSE: where the holder of a bill refuses to receive
discharge an instrument.
payment supra protest, he has his right of recourse
 against any party who would have been discharged by 3. FALSE, SECTION 64: If an irregular indorser signs for the
such payment. accommodation of the payee, he is not liable to all
33. TRUE: the notarial of honor must be founded on a parties subsequent to the payee.
declaration made by the payer for honor or by his agent
4. TRUE, SECTION 69: To escape personal liability, the
in that behalf declaring his intention to pay the bill for
agent or broker must disclose his principal and the fact
honor and for whose honor he pays.
that he is acting only as agent.
34. FALSE: in the payment for honor, the person whose
payment will discharge the least number of parties to bill 5. FALSE, SECTION 62: An acceptor is not responsible for
is given the preference. honoring a bill of exchange after accepting it.
35. TRUE: if the payment is made for the honor of all parties
CHAPTER 10
to the bill, the payer for honor may have recourse against
all of them. 1. FALSE: It must be expressed that the drawee will
perform his promise by any other means than the
MULTIPLE CHOICE
payment of money for the acceptance of the bill.
1. The following are the parties primarily liable, except. 2. FALSE: Acceptance should only be made on the bill
a. Maker itself.
b. Drawer 3. TRUE: The drawee has 24 hours after presentment for
c. Acceptor acceptance within which to act upon the bill.
2. Who is party unconditionally bound to be liable? 4. FALSE: A general acceptance assents with qualification
a. Maker to the order of the drawer.
b. Drawer 5. TRUE: The law does not require any particular form of
c. Indorser word or words to constitute acceptance.
3. In section 82, the presentment for payment is dispensed
CHAPTER 14
with except.
a. Where after the exercise of reasonable 1. TRUE: In the case of King v. People of the Philippines, the
diligence presentment cannot be made Supreme Court ruled that a third party can pay a
b. Where drawee is fictitious person dishonored negotiable instrument for the honor of the
c. By waiver of presentment, express or implied drawer.
d. Where the holder is fictitious person 2. TRUE: In the case of Philippine National Bank v. Relativo,
4. it describes the act of surrendering a right or claim with the payment is considered valid when a third party pays
or without recompense. a dishonored negotiable instrument for the honor of the
a. Alteration drawer after receiving notice of dishonor.
b. Renunciation 3. The effects of payment for honor are those provided for
c. Obligation in what provisions?
d. Accommodation a. Section 175 & 177
b. Section 176 & 177
CHAPTER 5 c. Section 174 & 175
d. Section 177 & 178
1. TRUE, SECTION 65: A general indorser of a negotiable 4. In payment for honor, the acceptor is acceptance for
honor is primarily liable. liable, while the
instrument warrant that all prior signatures are authentic
a. Primary
and that the instrument is free from undisclosed b. Secondarily
defects. c. Direct
d. Indirect
2. FALSE, SECTION 60: The maker of a promissory note is
secondarily Liable.
 5. What are the requisites of valid payment for honor?
a. Payment supra protests made by any person.
b. The payment is attested by a notarial act of
CHAPTER 7
honor which must be appended to the protest.
c. The notarial act must be based on the
declaration made by the payer for honor or the 1. C – SECTION 93: When any party is dead, and his death
agent of his intention to pay the bill for honor is known to the party giving notice, the notice must be
and for whose honor he pays. given to a personal representative, if there be one, and if
d. All of the above. with reasonable diligence he can be found. If there be no
personal representative, notice may be sent to the last
CHAPTER 6 residence or last place of business of the deceased.
2. E – SECTION 107: Where a party receives notice of
1. If a holder's bank is closed due to a natural disaster, is dishonor, he has, after the receipt of such notice, the
the delay in presentment excused? same time for giving notice to antecedent parties that the
- (B) Yes, because the delay in holder has after the dishonor.
presentment is beyond the 3. F – SECTION 98: Where notice is given by or on behalf of
holder's control and not due to a party entitled to give notice, it inures to the benefit of
their negligence. the holder and all parties subsequent to the party to
2. Do endorsers of a promissory note have a liability to pay whom notice is given.
if there is no presentment for payment? 4. D – SECTION 116: Where due notice of dishonor by non-
- No, because endorsers are acceptance has been given, notice of a subsequent
secondarily liable and require dishonor by nonpayment is not necessary, unless in the
presentment to be held meantime the instrument has been accepted.
accountable. 5. A – SECTION 103: Where the person giving and the
3. A promissory note states it is "payable 60 days after person to receive notice reside in the same place, notice
October 10." According to Section 86, when is the must be given within the following times: (a) If given at
payment due? the place of business of the person to receive notice, it
- (B) December 10 must be given before the close of business hours on the
4. According to Section 74, what must be done with the day following. (b) If given at his residence, it must be
instrument when payment is demanded? given before the usual hours of rest on the day following.
- (B) It must be exhibited to the (c) If sent by mail, it must be deposited in the post office
person from whom payment is in time to reach him in the usual course on the day
demanded. following.

5. This section specifies situations in which presentment is CHAPTER 8

not required to charge the drawer of a negotiable
instrument. 1. B – DISCHARGE OF AN INSTRUMENT: It refers to the
- (A) Section 79 process of releasing all parties from obligations under a
negotiable instrument, rendering it without force and
effect.
2. A – RENUNCIATION BY HOLDER: It gives the holder the
option to give up their rights against any party involved
with the negotiable instrument.
3. D – CANCELLATION OF AN INSTRUMENT: It is not
limited to the writing of the word "cancelled" or "paid" on
the instrument or physically destroying it, such as by
tearing or burning.
4. C – WHEN THE HOLDER RENOUNCES THEIR RIGHTS:
According to Section 120, when are persons secondarily
liable on the instrument discharged?
5. A – MATERIAL ALTERATION: According to Section 120,
when are persons secondarily liable on the instrument
discharged?
CHAPTER 11

1. B – 4: What is the number of requisites needed for an

acceptor for honor?
2. C – 5: How many formal requisites are necessary for an
acceptor for honor?
3. A – YES: Is it possible for an acceptor for honor to refuse
the bill?
4. C – TO ACCEPT AND PAY THE BILL IN CASE OF NON-
PAYMENT BY THE ORIGINAL PARTIES: In the case of a
dishonored bill, what is the role of an "acceptor for
honor"?
5. A – IT MAKES THE ACCEPTOR LIABLE ONLY IF THE
PRIMARY DRAWEE DEFAULTS: What is the effect of
"acceptance supra protest"?

CHAPTER 13

1. C – THE PRESENTMENT IS DISHONORED: The following

are the reasons where presentment is excluded, except.
2. C – ON ANY DAY WHEN NEGOTIABLE INSTRUMENT
CAN BE PRESENTED FOR PAYMENT, WITH AN
EXCEPTION FOR SATURDAYS BEFORE NOON IF IT IS
NOT A HOLIDAY: On What days can a bid be presented
for acceptance according to section 146?
3. B – PRESENTATION OF A BILL OF EXCHANGE FOR
ACCEPTANCE: The Section 143 and 144 is not
applicable to the care of PNB. Secto (G.R. No. L-4388) as
it talks about checks. Only to what provisions 143 and
144 are applicable.
4. A – PRESENTMENT FOR ACCEPTANCE: It is the
production or exhibition of a bill of exchange to the
drawee for his acceptance or payment.
5. C – SECTIONS 149, 150, AND 151: Provisions pertaining
to the instrument dishonored by non-acceptance;
including the duties and rights of the holder when the bill
is not accepted.