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Section 1. Form of negotiable instruments. - An instrument to be negotiable must conform to the following requirements: (a) It must be in writing and signed by the maker or drawer; (b) Must contain an unconditional promise or order to pay a sum certain in money; (c) Must be payable on demand, or at a fixed or determinable future time;
Two Distinctive Features of NI: Negotiability - it is that attribute or property whereby a bill or note or check may pass from hand to hand similar to money, so as to give the holder in due course the right to hold the instrument and to collect the sum payable for himself free from defenses.
GR: The indorsement must be an indorsement of the entire instrument. An indorsement which purports to transfer to the indorsee a part only of the amount payable, or which purports to transfer the instrument to two or more indorsees severally, does not operate as a negotiation of the instrument.
Form of negotiable instruments. - An instrument to be negotiable must conform to the following requirements: (Always step 1 because it determines what law is applicable) (WUPPA)
Most common forms of negotiable instruments. Promissory notes (there are also special type i.e. bonds, due bills etc.) Sec. 184. Promissory note, defined. – A negotiable promissory note within the meaning of this Act is. an unconditional promise.
The law that governs negotiable instruments in the Philippines is primarily embodied in the Negotiable Instruments Law (NIL), which is based on American law. NIL provides comprehensive for creation, transfer, enforcement instruments. It covers important concepts such as negotiability, endorsements, liabilities of parties, and the rights of holders.
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This document provides an overview of key concepts in Philippine negotiable instruments law, specifically Act No. 2031. It discusses the origins and codification of negotiable instruments law.
