Negotiability
/ˌniːɡoʊʃɪˈæbɪləti/
Definitions
- (n.) The quality of a financial instrument that allows it to be transferred freely and to impose obligations on the transferee.
The negotiability of the promissory note facilitated its easy transfer between parties.
Related terms
Commentary
Negotiability often refers specifically to the transferable nature of instruments like checks or promissory notes, emphasizing the holder's rights.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.