Definition of negotiable instrument: a transferable, signed document that promises to pay the bearer a sum of money at a future date or on demand. A negotiable instrument has three principal attributes: (1) an asset or property (that is the subject matter of the instrument) passes from the transferor to the transferee by mere delivery and/or endorsement of the instrument, (2) a transferee accepting the instrument in good faith and for value (and who has no notice of any defect in the. According to section 13 of the negotiable instruments act, a negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer'  but in section 1, it is also described that local extent, saving of usage relating to hundis, etc, commencement.
Definition of negotiable instrument: document of title or evidence of indebtedness that is freely (unconditionally) transferable in trading as a substitute for money negotiable instruments are unconditional orders or promise to pay, and. Negotiable instrument what is a 'negotiable instrument ' a negotiable instrument (eg, check) is a signed document that promises a sum of payment to a specified person or the assignee.
Negotiable instruments law: an overviewnegotiable instruments are mainly governed by state statutory law every state has adopted article 3 of the uniform commercial code (ucc), with some modifications, as the law governing negotiable instruments the ucc defines a negotiable instrument as an unconditioned writing that promises or orders the payment of a fixed amount of money. A document that contains a guarantee or promise to pay a specific amount of money to a person or entity in possession of the instrument, whether on a specified date or on demand, is known as a “negotiable instrument” a negotiable instrument features the name of the person who is to make payment. According to section 13 of the negotiable instruments act, a negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer' but in section 1, it is also described that local extent, saving of usage relating to hundis, etc, commencement.
(d) a promise or order other than a check is not an instrument if, at the time it is issued or first comes into possession of a holder, it contains a conspicuous statement, however expressed, to the effect that the promise or order is not negotiable or is not an instrument governed by this article. A negotiable instrument may be transferred to a third party, holding the same value to the new holder an everyday example of a negotiable instrument is a bank check, which is given to a payee (person to be paid), who then takes it to his bank to be cashed or deposited into his account. Next, in resolving the question of whether share certificate #12093 was a negotiable instrument, the court refers to subsection 53(3) of the obca, which states except where its transfer is restricted and noted on a security in accordance with subsection 56(3), a security is a negotiable instrument. “ my mother hired a notary to secure the negotiable instrument she wrote to my fiance in order to reimburse him for paying off my student loans was this helpful yes no 11 people found this helpful.
Negotiable instrument a commercial paper, such as a check or promissory note, that contains the signature of the maker or drawer an unconditional promise or order to pay a certa. (b) instrument means a negotiable instrument (c) an order that meets all of the requirements of subsection (a), except paragraph (1), and otherwise falls within the definition of check in subsection (f) is a negotiable instrument and a check.
Creating a negotiable instrument as stated in an official comment in the ucc, in the most basic terms a negotiable instrument is “a signed writing that orders or promises payment of money” however, not every signed piece of paper with a reference to money being paid is a negotiable instrument. “the negotiable instrument was signed, sealed, and delivered, which included a signature upon receipt to document every aspect of the deal ” was this helpful.
A negotiable instrument is a document that promises payment to a specified person or the assignee. A negotiable instrument is a document guaranteeing the payment of a specific amount of money, either on demand, or at a set time, with the payer usually named on the document.