Section 1 of Act No. 2031 defines the essential requisites for an instrument to be negotiable. It must be:
The Negotiable Instruments Law (Act No. 2031) is a specialized set of rules designed to facilitate commercial transactions. Its primary purpose is to allow instruments (like checks or promissory notes) to be easily transferred from hand to hand, functioning almost as a substitute for money. According to De Leon, the law aims to establish: negotiable instruments law de leon pdf new