Chapter One

1. What three qualities had negotiable paper which distinguished it from simple contracts under the common law?

2. What is negotiability?

Chapter Two

3. Define a promissory note. Write a form of one.

4. Define a bill of exchange. Write a form of one.

5. What is meant by drawing a bill in a set? What is the purpose of doing bo?

6. What is a check? How does it differ from a bill of exchange?

7. What is a certificate of deposit? Is it negotiable?

8. Is a corporate bond negotiable?

9. What is the purpose of a trade acceptance? Is it negotiable?

10. Define a bank draft.

11. Are bills of lading negotiable? Warehouse receipts?

12. Is a certificate of stock negotiable?

13. Is a mortgage negotiable?

Chapter Three

14. What was the origin of bills of exchange? When did they come into use in England? What was the first digest of the subject?

15. In what way was negotiable paper introduced into American law? What is the form of the negotiable instruments law in this country today?

Chapter Four

16. What are the formal requisites of a negotiable instrument?

17. Is a note made by lead pencil and signed by a rubber stamp negotiable ?

18. A note given by "Auto Accessories Concern, Uninc." and so signed. There are five partners. Are they liable on this note?

19. A note contained a statement "This note is given for the next month's salary of the payee." Does this destroy negotiability?

20. A note otherwise in usual form read: "This note secured by G. W. Davis note copy of contract hereto attached and made a part of this note. Negotiable and payable at "Southeast Missouri Trust Co." Is this note negotiable? (Robertson v. Kochtizky, 217 S. W. (Mo.) 543.)

21. A bill drawn on a person directing him to "charge the same to the 1800 payment." Does this language impair negotiability?

22. An order contained the provision: "Pay out of the proceeds of the Armstrong deal." If the bill is otherwise correctly drawn does this destroy negotiability?

23. Is a promissory note which is secured by real estate mortgage and which refers to such mortgage, negotiable?

24. May an installment note be negotiable? Suppose it is provided that on non-payment of any installment or of interest the holder may declare the entire note due. Does such a provision destroy negotiability?

25. May instruments be negotiable which provide for payment "with current rate of exchange"? with "attorney's fees if not paid at maturity"?

26. A note was due five years from date, but at the foot was written, "Due if ranch is sold or mortgaged." Does this destroy negotiability? (Nickell v. Bradshaw, 183 Pac. (Ore.) 12.

27. A note due in one year contained a provision: "If in the judgment of the holder of this note, said collateral depreciates in value, the undersigned agrees to deliver, when demanded, additional security to the satisfaction of said holder; otherwise this note shall mature at once." Is this note negotiable if otherwise correctly drawn? (Ibid.)

28. A promise to pay a certain amount of money in merchandise; a promise to pay a certain amount of money and certain merchandise; a promise to pay a certain amount of money or certain merchandise; are any of these negotiable?

29. A note is payable in New York "in pounds sterling." Is it negotiable ?

30. What is demand paper? Is it negotiable?

31. A desires to borrow money from his brother, B, who is engaged to be married. A makes out a note in usual form providing that he will pay when the payee marries, and delivers it to the brother, but his brother fails to give him the money. The note is sold to a bank; B marries; A desires to defend that he never got the money. Can he do so?

32. A note payable one month after maker's death. Is it negotiable ?

33. A note giving the holder right to extend payment as he pleases. Is note negotiable?

34. What are "words of negotiability"?

35. When is an instrument payable to order?

36. When is an instrument payable to bearer? How may an Instrument originally payable to the order of a specified person be made payable to bearer? If an instrument is not payable to order or bearer will an indorsement in blank make it payable to bearer?

Chapter Five

37. What is a collateral note? Is it negotiable?

38. If a note refers to a trust deed (mortgage), which secures it, is the negotiability of the note merely affected?

39. What is a "judgment note"? Is it negotiable?

40. If a maker of a note waives benefit of exemption laws, does this affect negotiability?

41. Does the addition of a seal destroy negotiability?

42. If a note is undated, ante-dated or post-dated, what is the effect thereof?

43. State the rules of construction of an ambiguously drawn instrument.

Chapter Six

44. What is meant by "delivery"? State its importance.

45. H holds a note made by M to order of P. It was purchased by H under circumstances that make him a "holder in due course." M contends he never delivered the paper to P. Is this a good defense against H?

46. M makes a note to order of P, in order to enable P to borrow money, and leaves the amount blank to be filled in by P with the amount which he succeeds in borrowing, but not over $1000. P borrows $1500, fills in for that amount and delivers the note to L. the lender indorsed by P and disappears. Can L hold M? Discuss from all angles.

47. M puts an incomplete and undelivered note on his desk. The payee sees it there, steals it, completes it, and indorses to H for value. Can H hold M?

48. What is the rule where uncancelled spaces In a complete instrument are filled up?

49. A promissory note is made by John Smith who describes himself in it as "John Smith, agent" in which manner he also signs it. He had authority to sign this note for William Jones, which fact was known to the payee. Can the agent avoid liability on this note?