1 have rights 3.

a transferee acquires no PROMISSORY NOTE

BILL of EXCHANGE
his transferor better rights than his Requisites # 1-4
transferor Requisites # 1-5
4. prior parties do not Contains an unconditional Contains an unconditional
ies warrant
warrant payment but I promise to pay order to pay
condanly
Has at least 2 parties: has at least 3 parties:
merely the legality of

I his title c NEGOTIABLE

1. maker
2 . payee
1.

2.
drawer

drawee
INSTRUMENTS: ,
3. payee

The nr maker is The drawer is onty

primarily liable
>0,RY NOTE (PN)- unconditional promise
A PN drawn to the maker's
ne person to another signed by the maker
order is NOT complete until
ly on demand or at a fixed or determinable
endorsed by him
;urn certain in money to order or to bearer.
Kinds of PromisSo,ry notes: Certificate of
The ibsuel- ur flicker may
Votes, Due bills, bonds
NOT insert in the
)(CHANGE (BE)-an unconditional order in instrument an express
?d by one person to another, signed by stipulation limiting his own
ig it, requiring the person to whom it is liability
pay on demand or at a fixed or Only one presentment: for
we time. a sum nertain in money to order paympnt
c. 126, NIL); Kinds of Bill of Exchange:
Drafts, Trade acceptance, Bankers A PN payable on demand
must be presented for
payment within a
I of exchange drawn on a bank payable reasonable time from its
185, NIL). issue
secondarily liable
A BE drawn to the
drawer's own order is
already complete even
without his endorsement
The cliawei- may irsti i its
the instrument an express
stipulation negativing' or
limiting his liability
Two presentments: for
nrrivtanrp anri frIr
payment
A BE payable on demand
must be presented for
payment within reasonable
time from its issuance

Never presented for Must be presented for

acceptance acceptance in Some cases
4NGE DISTINGUISHED FROM A
Examples: Correct Ex
 "1 promise to pay" 
"I agree to pay" 
"1 w;11 1.4 Ott I"
Wiff11 pica y
JGE CHECK aC
• "Good to P or to
1. It is necessary that a order" "Good for"

check is drawn on a • • "Due to P or m
ter of deposit. Otherwise, there order P
'nds would be fraud.

 "I acknowledge to
be indebted to P or order"
I.a 2. Death of the drawer of a • "Due on demand"
le of check, with the knowledge "Payable to"
Ike by the bank, revokes the • "To be paid"
r to authority of the banker to • "I guaranty to pay"
pay. Examples: Incorrect
 "I acknowledge to
3. Must be presented for be indebted to P"
payment within a
reasonable time after its  "Due to P"
•
issue. "Due P1000"
 "For
value
received"

"I will agree to
STINGUISHED FROM BILL OF Nay" •
"1.0.U."
Examples: Incorrect
 request you to
pay"
 "I wish you would
pay"
"I hope you will
pay"
• "I authorize you to
Pay"