Commercial Law, 2016 Bar — Question X

ESSAY

After securing a P1 million loan from B, A drew in B's favor a bill of exchange with C as drawee. The bill reads: “October 1, 2016. Pay to the order of B the sum of P1 million. To: C (drawee). Signed, A.” A then delivered the bill to B who, however, lost it. It turned out that it was stolen by D, B's brother. D lost no time in forging B's signature and negotiated it to E who acquired it for value and in good faith. May E recover on the bill from C, the drawee? Explain.

You can write freely without an account. Sign in to reveal the suggested answer and track your progress.