Which of the following is a negotiable bill of exchange?

• A. Pay to the order of R the sum of P20,000. Sgd. S
• B. Pay to the order of R the sum of P20,000. Sgd. S To A or in her absence to M
• C. Pay to the order the sum of P20,000. Sgd. S To A or M
• D. Pay to the order of R or J the sum of P20,000 Sgd. S. To A and M

Answer: (D)

A negotiable bill of exchange is a written instrument that orders the payment of a definite sum of money, unconditionally, either to a named person or to that person’s order or to bearer, and it must be capable of transfer by endorsement or delivery. It should not impose conditions that defeat negotiability, and the payee must be clearly identifiable.

The option that pays the sum to the order of either R or J satisfies this: it names a definite amount (P20,000) and directs payment to the order of R or J, which keeps the instrument payable to someone in a specific, transferable way. The inclusion of “or J” is allowed because the instrument is still payable to an identified person or their order, and it can be negotiated by endorsement by whoever ends up presenting it. The signature of the drawer confirms the obligation, and there are no extra conditions attached that would restrict payment.

The other options introduce elements that disrupt negotiability: conditional language or alternate conditions (like payment only if a certain person is present) or ambiguous phrasing that doesn’t clearly establish a payable-to-order arrangement. These features can render the instrument non-negotiable because they prevent a clean transfer of rights or a definite direction to pay.