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Negotiable instruments:Yes. There is a difference in both the liabilities from the 2 different notes.First note: the debtors are deemed to be jointly and severally liable. NIL provides under sec. 17(g) that:(g) Where an instrument containing the word "I promise to pay" is signed by two or more persons,they are deemed to be jointly and severally liable thereon.

When two or more partners have joint and several liability for a debt, a creditor may collect fromany one of the partners. If a creditor recovers full payment from one partner, that partner maypursue the other partners for their respective share of obl igation. In other words, if the creditorpursued OJ for the whole amount and OJ paid for it the liabili ty is extinguished. The creditor canno longer go after ST. However OJ can pursue the other partner for his respective share.2nd note: Several liability is the opposite of joint liability. When two or more partners obtain aloan for which they are severally l iable, each partner is only liable for their own obligation. Thus itis presumed that The 50k debt by OJ and ST are divided in two. Hence, each of them is onlyliable for half of the whole amount.

2. Criminal action (bp22) will not prosper. Issuance of the check was made only to guarantee the75k payment of rolex in case jasper wil l not pay in two weeks and not to encash it immediately. Itis not also evident that the check issued was dishonored due to insufficient balance or closedaccount. The issuance of 'stop-payment order' by Marissa is reasonable and does not constituteany of the grounds provided for by law to prosecute her under violation of BP 22.Therefore the Criminal action will not prosper.3. A check payable to cash is just like cash - anybody can use it. If the check gets lost, whoeverfinds it can get the money unless you stop payment on the check first. Likewise, the recipient canpass the check on to somebody else. In the first question, there was no issuance by OliverLozano since the check was carelessly misplaced. Cupido who makes off the check is entitledfor payment providedthere is no stop payment on the check by Oliver. Secondly, Cupido is abearer since the check is payable to cash. Where the instrument is no longer in the possessionof a party whose signature appears thereon, a valid and intentional delivery by him is presumeduntil the contrary is proved . Lastly, If Cupido negotiates the cash to another person (owner of thehardware store) that he is indebted with the owner of the hardware store hasthe right of paymentsince he is a holder in good faith.The owner of the hardware store who becomes the good faith holder for value received, withoutknowledge of any claims against it, or that the instrument was dishonored when presented forpayment, or in any way defective is also free from any liabil ities in case Oliver Lozano may setup.

4. Yes, the check can be effectively negotiated since jessica is a bearer and the check is payableto cash. It is also evident that the check is free from any defect and therefore negotiable.Requiring jessica of his signature at the dorsal side of the check would mean that the check waspresented for payment by her and that would discharge the grocer from any liabil ity arising fromthe check if there is any defect on it.

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5. No the promissory note is not deemed negotiated to Cagayan motors. Even if it is clearlystipulated in the deed of sale that in the event of transfer of the enterprise the promissory noteshall be deemed negotiated does not necessarily follow that it is deemed negotiated. Apromissory note, bill of exchange or cheque payable to order is negotiable by the holder byendorsement and delivery thereof. Where instrument payable to order is transferred merely bydelivery it is deemed to be assigned and not negotiated. The deed of sale is not a negotiableinstrument for it to be negotiated. For negotiation to take place, indorsement and delivery must be

made.

Cagayan motors right is limited only to the extent of its right as an assignee and not as a holder indue course.