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Noteson Nego Tiableinstrumentslaw (Atty. Glenn Subia) - 1: Alcazar, JMM. 2 Semester, SY 2013 - 2014

This document summarizes key aspects of negotiable instruments law. It defines a negotiable instrument as a written contract for the payment of money that can pass from one person to another like money. Negotiable instruments serve as substitutes for money and increase credit circulation. They function as mediums of exchange and increase purchasing power. Features include negotiability and the accumulation of secondary contracts. The document also outlines the requirements for an instrument to be considered negotiable, including that it must be in writing, signed, contain an unconditional promise to pay a sum certain in money, and have a determinable maturity date.

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Calderón Gutiérrez Marlón Pówan
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275 views1 page

Noteson Nego Tiableinstrumentslaw (Atty. Glenn Subia) - 1: Alcazar, JMM. 2 Semester, SY 2013 - 2014

This document summarizes key aspects of negotiable instruments law. It defines a negotiable instrument as a written contract for the payment of money that can pass from one person to another like money. Negotiable instruments serve as substitutes for money and increase credit circulation. They function as mediums of exchange and increase purchasing power. Features include negotiability and the accumulation of secondary contracts. The document also outlines the requirements for an instrument to be considered negotiable, including that it must be in writing, signed, contain an unconditional promise to pay a sum certain in money, and have a determinable maturity date.

Uploaded by

Calderón Gutiérrez Marlón Pówan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Noteson

NEGO
TIABLEINSTRUMENTSLAW
(
Atty. Glenn Subia
)
|
1
Alcazar, JMM.
2
nd
semester, SY 2013

2014
ACT 2031

Negotiable Instruments Law


Negotiable instrument
-
written contract for the payment of money which is intended as a substitute
for money and passes from one person to another as money, in such a manner as to give a holder in due
course the rig
ht to hold the instrument free from defenses available.
Functions of Negotiable instrument:
Main Functions:

Serve as substitute for money

It is a credit instrument which increases credit circulation


Other Functions

It is a medium of exchange

Increases pur
chasing power in circulation

Serves as proof of transactions


Features of Negotiable Instrument:

Negotiability

Accumulation of secondary contracts


Memorize:
Section 1. Form of negotiable instruments

It must be in writing
and signed by the maker or drawer

(maker, in case of note; drawer, in


case of bill)

Must
contain an unconditional promise or order to pay a sum certain in money

(promise, in
case of note; order, in case of bill)
Sum certain

amount that is to be unconditionally paid by the maker / dra


wer, can be
determined on the face of the instrument

Must be payable on demand, or at a fixed or determinable future time


Three options of maturity:
a.
On dem

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