Commercial Law, 2011 Bar — Question 50

MULTIPLE CHOICE

M, the maker, issued a promissory note to P, the payee which states: “I, M, promise to pay P or order the amount of Php1 Million. Signed, M." P negotiated the note by indorsement to N, then N to O also by indorsement, and O to Q, again by indorsement. But before O indorsed the note to Q, 0's wife wrote the figure “2” on the note after “Php1" without 0's knowledge, making it appear that the note is for Php12 Million. For how much is O liable to Q? A) Php1 Million since it is the original tenor of the note. B) Php1 Million since he warrants that the note is genuine and in all respects what it purports to be. C) Php12 Million since he warrants his solvency and that he has a good title to the note. D) Php12 Million since he warrants that the note is genuine and in all respects what it purports to be.

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