5. Mercantile Law

COVERAGE

MERCANTILE  LAW 2016 BAR

EXAMINATIONS

I. Letters of Credit A. Defnition and Nature o Letter o Credit B. Parties to a Letter o Credit 1. Rights and Obligations o Parties C. Basic Principles o Letter o Credit 1. Doctrine o Independence . !raud "#ception Principle $. Doctrine o %trict Co&pliance

II. Trust Reei!ts L"# A. Defnition'Concept o a (rust Receipt (ransaction 1. Loan'%ecurit) !eature . O*nership o the +oods, Docu&ents and Instru&ents under a (rust Receipt B. Rights o the "ntruster 1. -alidit) o the %ecurit) Interest as Against the Creditors o the "ntrustee'Innocent Purchasers or -alue C. Obligation and Liabilit) o the "ntrustee 1. Pa)&ent'Delier) o Proceeds o %ale or Disposition o +oods, Docu&ents or Instru&ents . Return o +oods, Docu&ents or Instru&ents in Case o %ale $. Liabilit) or Loss o +oods, Docu&ents or Instru&ents /. Penal %anction i O0ender is a Corporation D. Re&edies Aailable C. arehouse&an2s Lien

III. Ne$oti"%&e I'stru(e'ts L"# )e*&ude i'si$'i+"'t !ro,isio'sA. !or&s and Interpretation 1. Re3uisites o Negotiabilit) . 4inds o Negotiable Instru&ents B. Co&pletion and Delier) 1. Insertion o Date . Co&pletion o Blan5s $. Inco&plete and 6ndeliered Instru&ents /. Co&plete but 6ndeliered Instru&ents C. %ignature 1. %igning in (rade Na&e . %ignature o Agent $. Indorse&ent b) 7inor or Corporation /. !orger) D. Consideration

2016 Bar Examination Coverage

2

". Acco&&odation Part) !. Negotiation 1. Distinguished ro& Assign&ent . 7odes o Negotiation $. 4inds o Indorse&ents +. Rights o the 8older 1. 8older in Due Course . Deenses Against the 8older 8. Liabilities o Parties 1. 7a5er . Dra*er $. Acceptor /. Indorser 9. arranties I. Present&ent or Pa)&ent 1. Necessit) o Present&ent or Pa)&ent . Parties to ho& Present&ent or Pa)&ent %hould Be 7ade $. Dispensation *ith Present&ent or Pa)&ent /. Dishonor b) Non:Pa)&ent  ;. Notice o Dishonor 1. Parties to Be Notifed . Parties ho 7a) +ie Notice and Dishonor $. "0ect o Notice /. !or& o Notice 9. aier