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    This document discusses forgery under Section 23 of the Negotiable Instruments Law. It provides three examples: 1. Haden received a promissory note for $300,000 but was notified of defects before receiving the full amount. Haden is a holder in due course only to the extent of $300,000 paid. 2. Forgery is a real defense that can be raised against any holder, including a holder in due course. 3. Simple forgery occurs when a person signs another's name without authority or impersonates the payee and signs their name. The document seeks to clarify definitions and applications of forgery under the relevant law. It addresses what constitutes forgery,

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    This document discusses forgery under Section 23 of the Negotiable Instruments Law. It provides three examples: 1. Haden received a promissory note for $300,000 but was notified of defects before receiving the full amount. Haden is a holder in due course only to the extent of $300,000 paid. 2. Forgery is a real defense that can be raised against any holder, including a holder in due course. 3. Simple forgery occurs when a person signs another's name without authority or impersonates the payee and signs their name. The document seeks to clarify definitions and applications of forgery under the relevant law. It addresses what constitutes forgery,

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    This document discusses forgery under Section 23 of the Negotiable Instruments Law. It provides three examples: 1. Haden received a promissory note for $300,000 but was notified of defects before receiving the full amount. Haden is a holder in due course only to the extent of $300,000 paid. 2. Forgery is a real defense that can be raised against any holder, including a holder in due course. 3. Simple forgery occurs when a person signs another's name without authority or impersonates the payee and signs their name. The document seeks to clarify definitions and applications of forgery under the relevant law. It addresses what constitutes forgery,

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    © All Rights Reserved
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    Download as pdf or txt
    36 views1 page

    Raw 3

    Uploaded by

    Jetmoon Black
    This document discusses forgery under Section 23 of the Negotiable Instruments Law. It provides three examples: 1. Haden received a promissory note for $300,000 but was notified of defects before receiving the full amount. Haden is a holder in due course only to the extent of $300,000 paid. 2. Forgery is a real defense that can be raised against any holder, including a holder in due course. 3. Simple forgery occurs when a person signs another's name without authority or impersonates the payee and signs their name. The document seeks to clarify definitions and applications of forgery under the relevant law. It addresses what constitutes forgery,

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    P a g e |3

    c. Only statement A is true.


    d. Only statement B is false. FORGERY
    1. Forgery is the counterfeit-making or fraudulent alteration of writing and
    Answer: c. Only statement A is true. Payee may become a holder in due may consist in the signing of another’s name or the alteration of an
    course, so long as Sec. 52 of the NIL is complied with. instrument in the name, amount, description of the person and the like,
    with intent thereby to –
    a. defraud
    14. Mahal signed a promissory note for P500, 000 as maker, and payable to b. dishonor
    bearer, delivered to Belo in payment for Mahal’s scheduled medical c. confound
    operation that will make her tall. Later, Mahal was informed that it is d. alter
    impossible to make her tall. However, Belo has already delivered the 2. What kind of defense is forgery under Section 23 of the Negotiable
    note to Haden upon the terms of payment of P 300, 000 and the balance Instrument Law?
    in a month. Haden received notice of the defect. Which is true? a. Forgery can be presumed and the burden of proof lies on the party
    alleging forgery.
    a. Haden can collect P 500, 000 because he is a holder in due course entitle b. Forgery is a real defense which means that it could be raised
    to the full amount of the instrument. against any holder, including a holder in due course.
    b. Haden must pay the balance before he can collect for the full amount. c. Section 23 purports to declare neither the instrument totally void
    c. Haden is a holder in due course to the extent of P300, 000, the amount nor the genuine signatures thereon inoperative.
    paid by him. d. Forgery is a real or absolute defense except a holder in due course
    d. Haden cannot collect because of the failure or absence of consideration. as provided in Section 58.
    3. One of the various kinds of forgery is Simple forgery.
    Answer: c. Haden is a holder in due course to the extent of P300, 000, the Statement A: It occurs when a person signs the name of another
    amount paid by him. Sec. 54 of the NIL provides that, where the transferee without the authority of the person whose signature
    receives notice of any infirmity in the instrument or defect in the title of the it purports to be.
    person negotiating the same before before he has paid the full amount agreed Statement B : Simple forgery also occurs when the person to whom
    to be paid therefore, he will be deemed a holder in due course only to the extent the instrument has been delivered impersonated the
    of the amount paid by him. real person named as payee and signs his name.
    a. Both statements are true.
    b. Both statements are false.
    15. A holder is not deemed a holder in due course, except: c. Only statement A is true.
    d. Only statement B is true.
    a. When instrument is payable on demand is negotiated payable on
    demand is negotiated in an unreasonable length of time after its issue.
    b. Where instrument taken by a holder, who has not yet paid anything, and 4. What kind of forgery is covered by Section 23 of the Negotiable
    he receives notice of infirmity in the instrument. Instruments Law?
    c. Where a holder took instrument for value and in good faith. a. Section 23 applies only to forgery of signature
    d. Where a postal money order is delivered to Ryan, the holder. b. Section 23 applies both to forgery of signature and and alteration of
    the instrument
    Answer: c. Where a holder took instrument for value and in good faith. This c. Section 23 covers only alteration of instrument
    constitutes a condition of a holder in due course. d. Section 23 covers neither alteration and forgery

    5. The rules on liabilities of parties on a forged documents in a bill of


    exchange are:

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