The written text could be in ink, printing, or pencil. It can be on parchment, cloth, fabric, and other alternative regarding report. It could be finalized to your mere initials if you don’t amounts, including step 1, 2, 8. However, where name’s maybe not signed, the brand new manager have to establish one to what’s authored is supposed while the a trademark of the person looked for as charged. Title ped, engraved, photographed or lithographed. In such as for example instance, it must be shown to was indeed adopted and you can used by the newest party since their trademark.
If a bill, it must contain an order to pay. It is an instrument demanding a right, not mere asking of a favor. “I hereby authorize you to pay P 1,000, on our account, to the order of Pedro Cruz.” It is not negotiable because it is a mere authorization to pay. It gives discretion to pay or not to pay. In promissory note, instead of the promise, the following words may be used: “agree,” “will pay,” “shall pay,” and the like. A mere admission that the debt is due is not sufficient.
The sum payable was a sum certain, though it is to be repaid (a) That have appeal, (b) Because of the mentioned repayment, (c) From the stated installment payments, having a supply that through to standard when you look at the fee of any repayment or interesting the whole will feel due, (d) With exchange, whether during the a fixed rate otherwise at the current rate, or (e) Which have will set you back out of collection or an enthusiastic attorney’s commission, in case fee will never be made from the maturity. (Sec. 2)
The spot where the vow or acquisition to pay was created to rely on the an effective contingent lds planet profile examples enjoy, it’s conditional and you will helps to make the device non-flexible. An unqualified order otherwise pledge to pay try unconditional even when paired with:
a. An indication of a particular fund out of which reimbursement is to be made, or a particular account to be debited with the amount. An example is: “Pay to B or order P1,000 and reimburse yourself out of my money in your hands.” The instrument is negotiable because the order to pay is not rendered conditional. The particular fund indicated is not the direct source of payment, but only a source of reimbursement. The fact that the amount paid is to be debited from accounts payable is only for the purpose of accounting and does not make the order conditional.
But an order or promise to pay out of a particular fund is not unconditional. (Sec. 3) In the following instrument, the particular fund indicated is not for reimbursement, but the direct source of payment: “Pay to B or order P 1,000 out of my part of the estate.” This is, therefore, non-negotiable as payment is conditional.
An instrument which contains an order or promise to do any act in addition to the payment of money is not negotiable. But the negotiable character of an instrument otherwise negotiable is not affected by a provision which gives the holder an election to require something to be done in lieu of payment of money. (See Sec. 5) A statement which allows the creditor the option to require something in lieu of money, however, does not affect negotiability. “Pay to B P 10,000 or deliver to him 1,000 bags of cement.” (Signed) A (and addressed to:) C”. The order is conditional, because the option is given to the drawee. Hence, the payee or holder is not certain what will be paid or delivered to him. It would be different if the option is given to the payee or holder.