Las Palmas authorized Palma to sign a bill of exchange in his (Las Palmas’s) name. The bill reads: "Pay to Madrid or order the sum of Php8 million. Signed, Palma (for and in behalf of Las Palmas)." The bill was drawn on Las Palmas. Madrid indorsed the bill to Barcelona, Barcelona to Valencia, and Valencia to Alicante. May Alicante treat the bill as a promissory note? a. No, because the instrument is payable to order and has been indorsed several times. b. No, because the instrument is a bill of exchange. c. Yes, because the drawer and drawee are one and the same person. d. Yes, because Palma was only an agent of Las Palmas

Las Palmas authorized Palma to sign a bill of exchange in his (Las Palmas’s) name. The bill reads: "Pay to Madrid or order the sum of Php8 million. Signed, Palma (for and in behalf of Las Palmas)." The bill was drawn on Las Palmas. Madrid indorsed the bill to Barcelona, Barcelona to Valencia, and Valencia to Alicante. May Alicante treat the bill as a promissory note? a. No, because the instrument is payable to order and has been indorsed several times. b. No, because the instrument is a bill of exchange. c. Yes, because the drawer and drawee are one and the same person. d. Yes, because Palma was only an agent of Las Palmas

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 13DQ

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