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KembaraXtra – Legal Terms – Negotiable Instrument
A negotiable instrument is a written document containing an obligation to pay a specific sum of money and capable of being transferred from one person to another.
The holder of the instrument may enforce payment in their own name, even if there were defects in the previous holder’s title, provided the instrument was obtained honestly and for value.
Transferability is a key feature of negotiable instruments because rights pass with possession of the document.
Common examples include bills of exchange, cheques, and promissory notes.
Negotiable instruments play an important role in commercial transactions by facilitating trade and financial dealings.
A negotiable instrument is a written document containing an obligation to pay a specific sum of money and capable of being transferred from one person to another.
The holder of the instrument may enforce payment in their own name, even if there were defects in the previous holder’s title, provided the instrument was obtained honestly and for value.
Transferability is a key feature of negotiable instruments because rights pass with possession of the document.
Common examples include bills of exchange, cheques, and promissory notes.
Negotiable instruments play an important role in commercial transactions by facilitating trade and financial dealings.
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