Commercial Law, 2012 Bar — Question III-B

ESSAY

X borrowed money from Y in the amount of Php1 Million and as payment, issued a check. Y then indorsed the check to his sister Z for no consideration. When Z deposited the check to her account, the check was dishonored for insufficiency of funds. Who is liable on the check? The drawer or the indorser? Explain your answer. (5%)

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