What is a Negotiable Instrument? Characteristics of negotiable instrument.
What is a Negotiable Instrument? Meaning- "A Negotiable Instrument", as the name suggests is an instrument or a document which is Negotiable or transferable. In simple words any document that entitles a person to a sum of money and which can be transferred from one person to the another is a negotiable instrument. By transfer of document we mean transferring the right to receive the money (of the instrument) and also the right to further transfer the instrument. However, the instrument can be transferred by two modes only (by delivery or by endorsement and delivery). In other words, a NEGOTIABLE Instrument is : - (i) any document in writing. (i) this document legally entitles the holder of the instrument to a sum of money. (iii) such an instrument can be transferred from person to person. (iv) the person to whom it is transferred gets two rights : -right to receive the money -right to further transfer the same instrument. Definition- Negotia...