REVIEWER:

1. Define a “Bill of Exchange.

2. Enumerate the instances when a bill can be treated as a

promissory note.

3. Distinguish an Inland Bill from a Foreign Bill.

4. When may a bill be treated as a promissory note?

5. What is “Acceptance” in the context of the NIL? State all the

requisites for a valid acceptance?

* Acceptance is the signification by the drawee of his assent to the order of

the drawer
*Requisites of Valid Acceptance
a. It must be in writing
b. It must be signed by the drawee
c. It must not express that the drawee will perform his promise by any
other means than the payment of the money
d. There must be delivery or notification of the acceptance.

6. What is a referee in case of need? Draw an example of a bill with a

referee in case of need.

7. When is it necessary to present a bill for acceptance?

8. State all the requisites for a valid presentment for acceptance?

9. What is the effect if the acceptance is made in a separate

document? State the general rule and exceptions, if any.

10. What is “Protest” in the context of the NIL? When is it

necessary?

11. What is “Acceptance for Honor” in the context of the NIL? State
all the requisites that must be present in order that a valid
acceptance of honor may be made.

12. Drawer issues a bill addressed to Drawee, payable to the order

of Payee, who negotiates the bill to A; A to B; B to C; D to E; E to F; F
to G; G to H, the holder. Upon presentment for acceptance to
Drawee, the same is dishonored by non-acceptance. H protests the
bill for non-acceptance but before its due date, X accepts the bill for
the honor of C. To whom is X liable? Why?

13. State all the requisites of a valid Protest?

14. What is “Payment for Honor” in the context of the NIL? State all
the requisites for a valid payment for honor.

15. Drawer issues a bill addressed to Drawee, payable to the order

of Payee, who negotiates the bill to A; A to B; B to C; C to D; D to E; E
to F; F to G; G to H, the holder. After the bill was dishonored by non-
acceptance by the Drawee, the bill was duly protested for non-
acceptance; then protested for non-payment. X pays for the honor of
E; and Y pays for the honor of C. Question: Whose payment for honor
will be preferred and why?

16. What is a negotiable document of title? What distinguishes it

from a non-negotiable document of title?

17. Who may validly negotiate a negotiable document of title?

19. Explain first then illustrate: “A bill is not an assignment of funds

in the hands of a drawee.”

19. When a bill payable after sight is dishonored by non-acceptance

but, thereafter, validly accepted for honor, how is its maturity date
computed?

20. Can a bill be validly addressed to two or more drawees? Explain

and illustrate.