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    Form of Negotiable Instruments. - An Instrument Tobe

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    Gielsie Cruzat
    This document outlines the key requirements for negotiable instruments under Philippine law as codified in Act No. 2031. It defines what makes an instrument negotiable, including that it must be in writing and signed, contain an unconditional promise to pay a sum certain in money, be payable on demand or at a fixed time, and be payable to order or to bearer. It also specifies what additional provisions do not affect an instrument's negotiability, such as authorizing the sale of collateral if not paid, and what omissions do not invalidate an instrument, such as lacking a date.

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    Form of Negotiable Instruments. - An Instrument Tobe

    Uploaded by

    Gielsie Cruzat
    19 views2 pages
    This document outlines the key requirements for negotiable instruments under Philippine law as codified in Act No. 2031. It defines what makes an instrument negotiable, including that it must be in writing and signed, contain an unconditional promise to pay a sum certain in money, be payable on demand or at a fixed time, and be payable to order or to bearer. It also specifies what additional provisions do not affect an instrument's negotiability, such as authorizing the sale of collateral if not paid, and what omissions do not invalidate an instrument, such as lacking a date.

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    Law

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    This document outlines the key requirements for negotiable instruments under Philippine law as codified in Act No. 2031. It defines what makes an instrument negotiable, including that it must be in writing and signed, contain an unconditional promise to pay a sum certain in money, be payable on demand or at a fixed time, and be payable to order or to bearer. It also specifies what additional provisions do not affect an instrument's negotiability, such as authorizing the sale of collateral if not paid, and what omissions do not invalidate an instrument, such as lacking a date.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    19 views2 pages

    Form of Negotiable Instruments. - An Instrument Tobe

    Uploaded by

    Gielsie Cruzat
    This document outlines the key requirements for negotiable instruments under Philippine law as codified in Act No. 2031. It defines what makes an instrument negotiable, including that it must be in writing and signed, contain an unconditional promise to pay a sum certain in money, be payable on demand or at a fixed time, and be payable to order or to bearer. It also specifies what additional provisions do not affect an instrument's negotiability, such as authorizing the sale of collateral if not paid, and what omissions do not invalidate an instrument, such as lacking a date.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    ACT NO.

    2031 a specified event which is certain to happen,


    February 03, 1911 though the time of happening be uncertain.
    THE NEGOTIABLE INSTRUMENTS LAW An instrument payable upon a contingency is not
    I. FORM AND INTERPRETATIONSection 1.
    negotiable, and the happening of the event does
    Form of negotiable instruments. - An instrument tobe
    negotiable must conform to the following not cure the defect.
    requirements:
    (a) It must be in writing and signed by the maker Sec. 5. Additional provisions not affecting
    or drawer;
    negotiability. - An instrument which contains an
    (b) Must contain an unconditional promise or
    order to pay asum certain in money; order or promise to do any act in addition to the
    (c) Must be payable on demand, or at a fixed payment of money is not negotiable. But the
    ordeterminable future time; negotiable character of an instrument otherwise
    (d) Must be payable to order or to bearer; and
    negotiable is not affected by a provision
    (e) Where the instrument is addressed to a
    drawee, he mustbe named or otherwise indicated which:chanroblesvirtuallawlibrary
    therein with reasonablecertainty. (a) authorizes the sale of collateral securities in
    Sec. 2. What constitutes certainty as to sum. - case the instrument be not paid at maturity; or
    The sum payable is a sum certain within the
    meaning of this Act, although it is to be (b) authorizes a confession of judgment if the
    paid:chanroblesvirtuallawlibrary instrument be not paid at maturity; or
    (a) with interest; or
    (c) waives the benefit of any law intended for the
    (b) by stated installments; or advantage or protection of the obligor; or

    (c) by stated installments, with a provision that, (d) gives the holder an election to require
    upon default in payment of any installment or of something to be done in lieu of payment of
    interest, the whole shall become due; or money.
    But nothing in this section shall validate any
    (d) with exchange, whether at a fixed rate or at provision or stipulation otherwise illegal.
    the current rate; or

    (e) with costs of collection or an attorney's fee, in Sec. 6. Omissions; seal; particular money. - The
    case payment shall not be made at maturity. validity and negotiable character of an instrument
    Sec. 3. When promise is unconditional. - An are not affected by the fact
    unqualified order or promise to pay is that:chanroblesvirtuallawlibrary
    unconditional within the meaning of this Act (a) it is not dated; or
    though coupled with:chanroblesvirtuallawlibrary (b) does not specify the value given, or that any
    (a) An indication of a particular fund out of which value had been given therefor; or
    reimbursement is to be made or a particular
    account to be debited with the amount; or (c) does not specify the place where it is drawn or
    the place where it is payable; or
    (b) A statement of the transaction which gives
    rise to the instrument. (d) bears a seal; or
    But an order or promise to pay out of a particular
    fund is not unconditional.chan robles virtual law (e) designates a particular kind of current money
    library in which payment is to be made.
    But nothing in this section shall alter or repeal
    Sec. 4. Determinable future time; what any statute requiring in certain cases the nature
    constitutes. - An instrument is payable at a of the consideration to be stated in the
    determinable future time, within the meaning of instrument.
    this Act, which is expressed to be
    payable:chanroblesvirtuallawlibrary Sec. 7. When payable on demand. - An instrument
    (a) At a fixed period after date or sight; or is payable on
    demand:chanroblesvirtuallawlibrary
    (b) On or before a fixed or determinable future (a) When it is so expressed to be payable on
    time specified therein; or demand, or at sight, or on presentation; or

    (c) On or at a fixed period after the occurrence of (b) In which no time for payment is expressed.
    Where an instrument is issued, accepted, or
    indorsed when overdue, it is, as regards the
    person so issuing, accepting, or indorsing it,
    payable on demand.

    Sec. 8. When payable to order. - The instrument is


    payable to order where it is drawn payable to the
    order of a specified person or to him or his order.
    It may be drawn payable to the order
    of:chanroblesvirtuallawlibrary
    (a) A payee who is not maker, drawer, or drawee;
    or

    (b) The drawer or maker; or

    (c) The drawee; or

    (d) Two or more payees jointly; or

    (e) One or some of several payees; or

    (f) The holder of an office for the time being.


    Where the instrument is payable to order, the
    payee must be named or otherwise indicated
    therein with reasonable certainty.

    Sec. 9. When payable to bearer. - The instrument


    is payable to
    bearer:chanroblesvirtuallawlibrary
    (a) When it is expressed to be so payable; or

    (b) When it is payable to a person named therein


    or bearer; or

    (c) When it is payable to the order of a fictitious


    or non-existing person, and such fact was known
    to the person making it so payable; or

    (d) When the name of the payee does not purport


    to be the name of any
    person; or

    (e) When the only or last indorsement is an


    indorsement in blank.
    Sec. 10. Terms, when sufficient. - The instrument
    need not follow the language of this Act, but any
    terms are sufficient which clearly indicate an
    intention to conform to the requirements hereof.

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