Commercial Law, 2011 Bar — Question 5

MULTIPLE CHOICE

M makes a promissory note that states: “I, M, promise to pay Php5,000.00 to B or bearer. Signed, M." M negotiated the note by delivery to B, B to N, and N to O. B had known that M was bankrupt when M issued the note. Who would be liable to O? A) M and N since they may be assumed to know of M's bankruptcy B) N, being O's immediate negotiator of a bearer note C) B, M, and N, being indorsers by delivery of a bearer note D) B, having known of M's bankruptcy

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