Factors not affecting negotiability of an instrument

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Factors not affecting negotiability of an instrument

Sec. 6. Omissions; seal; particular money. - The validity and negotiable character of an instrument are not affected by the fact that:

      (a) it is not dated; or

      (b) does not specify the value given, or that any value had been given therefor; or

      (c) does not specify the place where it is drawn or the place where it is payable; or

      (d) bears a seal; or

      (e) designates a particular kind of current money in which payment is to be made.

But nothing in this section shall alter or repeal any statute requiring in certain cases the nature of the consideration to be stated in the instrument.

EFFECT OF OMISSION OF DATE

      Even where the instrument is not dated, still the instrument is not rendered non-negotiable
      There are however instances, wherein the date is needed for the instrument to become negotiable
      When are these instances?
o      When it is payable in a period after date or after sight
o      When it is allowed to write the date… (Section 13)

EFFECT OF OMISSION OF VALUE

 Usually, what is stated in the instrument is that it is being used for “value received” without specifying what that value is
 Nevertheless, the absence of value given, doesn’t render the instrument non-negotiable

PARTICULAR KIND OF MONEY

 Even if the money in which the instrument is to be payable is not legal tender, provided that it is current money or foreign money which has a fixed value in relation to the money in the country in which the instrument is payable, still the negotiability of the instrument is not affected, as the instrument still is considered payable in money