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KembaraXtra – Legal Terms – Not Negotiable
The words “not negotiable” written on a crossed cheque indicate that a person receiving the cheque cannot obtain a better title to it than the person who transferred it.
This means that if the transferor had defective title, the transferee will also suffer from that defect.
Most banks now issue cheques marked “not negotiable” following the Cheques Act 1992.
A bill of exchange carrying these words is also not transferable in the ordinary negotiable sense.
The words “not negotiable” written on a crossed cheque indicate that a person receiving the cheque cannot obtain a better title to it than the person who transferred it.
This means that if the transferor had defective title, the transferee will also suffer from that defect.
Most banks now issue cheques marked “not negotiable” following the Cheques Act 1992.
A bill of exchange carrying these words is also not transferable in the ordinary negotiable sense.
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