Commercial Law, 2011 Bar — Question 88

MULTIPLE CHOICE

Z wrote out an instrument that states: “Pay to X the amount of Php1 Million for collection only. Signed, Z." X indorsed it to his creditor, Y, to whom he owed Php1 million. Y now wants to collect and satisfy X's debt through the Php1 million on the check. May he validly do so? A) Yes, since the indorsement to Y is for Php1 Million. B) No, since Z is not a party to the loan between X and Y. C) No, since X is merely an agent of Z, his only right being to collect. D) Yes, since X owed Y Php1 Million.

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