Commercial Law, 2011 Bar — Question 87

MULTIPLE CHOICE

P authorized A to sign a bill of exchange in his (P's) name. The bill reads: “Pay to B or order the sum of Php1 million. Signed, A (for and in behalf of P)." The bill was drawn on P. B indorsed the bill to C, C to D, and D to E. May E treat the bill as a promissory note? A) No, because the instrument is payable to order and has been indorsed several times. B) Yes, because the drawer and drawee are one and the same person. C) No, because the instrument is a bill of exchange. D) Yes, because A was only an agent of P.

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