Negotiable Instrument
/ˌnɛɡoʊʃiˈeɪbəl ˈɪnstrəmənt/
Definitions
- (n.) A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, and transferable by endorsement or delivery.
The bank accepted the negotiable instrument as valid payment for the loan.
- (n.) A commercial document such as a cheque, promissory note, or bill of exchange that evidences a debt and is legally enforceable.
He endorsed the negotiable instrument to his supplier to settle the amount owed.
Forms
- negotiable instruments
Related terms
See also
Commentary
Ensure that the term covers both unconditional orders to pay and promises, distinguishing negotiable instruments from ordinary contracts by negotiability and transferability.
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.