Commercial Law, 2011 Bar — Question 45

MULTIPLE CHOICE

A bill of exchange has D as drawer, E as drawee and F as payee. The bill was then indorsed to G, G to H, and H to I. I, the current holder presented the bill to E for acceptance. E accepted but, as it later turned out, D is a fictitious person. Is E freed from liability? A) No, since by accepting, E admits the existence of the drawer. B) No, since by accepting, E warrants that he is solvent. C) Yes, if E was not aware of that fact at the time of acceptance. D) Yes, since a bill of exchange with a fictitious drawer is void and inexistent.

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