Commercial Law, 2011 Bar — Question 33

MULTIPLE CHOICE

B borrowed Php1 million from L and offered to him his BMW car worth Php1 Million as collateral. B then executed a promissory note that reads: “I, B, promise to pay L or bearer the amount of Php1 Million and to keep my BMW car (loan collateral) free from any other encumbrance. Signed, B.” Is this note negotiable? A) Yes, since it is payable to bearer. B) Yes, since it contains an unconditional promise to pay a sum certain in money. C) No, since the promise to just pay a sum of money is unclear. D) No, since it contains a promise to do an act in addition to the payment of money.

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