Commercial Law, 2011 Bar — Question 75

MULTIPLE CHOICE

X executed a promissory note in favor of Y by way of accommodation. It says: "Pay to Y or order the amount of Php50,000.00. Signed, X." Y then indorsed the note to Z, and Z to T. When T sought collection from Y, the latter countered as indorser that there should have been a presentment first to the maker who dishonors it. ls Y correct? A) No, since Y is the real debtor and thus, there is no need for presentment for payment and dishonor by the maker. B) Yes, since as an indorser who is secondarily liable, there must first be presentment for payment and dishonor by the maker. C) No, since the absolute rule is that there is no need for presentment for payment and dishonor to hold an indorser liable. D) Yes, since the secondary liability of Y and Z would only arise after presentment for payment and dishonor by the maker.

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