Check Negotiability Requirements

Summary

A check is negotiable in the Philippines if it is written, signed, contains an unconditional promise to pay a specific amount, and is payable on demand or at a future time. It must be payable to order or bearer, allowing easy transfer. A check is a negotiable instrument due to its ability to be transferred by endorsement or delivery, and its liquidity.

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*. WHAT IS REQUIRED FOR A CHECK TO BE NEGOTIABLE? *. WHY IS A CHECK CONSIDERED AS A NEGOTIABLE INSTRUMENT?
For a check to be negotiable in the Philippines, it must meet the following requirements:
- It must be in writing and signed by the maker or drawer.
- It must contain an unconditional promise or order to pay a sum certain in money.
- It must be payable on demand or at a fixed or determinable future time.
- It must be payable to order or bearer.
A check is considered a negotiable instrument because it:
- Represents a written order to pay a specified amount of money.
- Can be transferred by endorsement or delivery.
- Is payable either to order or to bearer, facilitating easy transferability and liquidity.
Do you have any further questions about negotiable instruments?