Negotiable Instrument - Explained
What is a Negotiable Instrument?
Written by Jason Gordon
Updated at September 26th, 2021
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What is a Negotiable Instrument?
An instrument refers to a document representing ownership of an underlying right or obligation. Instruments can refer to stocks, securities, commodities, derivatives, indexes, or any other similar asset. It can also consist of legal documents, contracts, deeds, and wills, among many others. An negotiable instrument is one that is traceable and capable of transfer or negotiation to another holder of the instrument.
Back To: COMMERCIAL LAW: CONTRACTS, PAYMENTS, SECURITY INTERESTS, & BANKRUPTCY
Related Topics
- What is Commercial Paper?
- What are the common types of commercial paper?
- Who is a Holder of a negotiable instrument?
- Commercial Paper Funding Program
- What is Negotiability and why is it important?
- What is required for commercial paper to be negotiable?
- Sum Certain (Contracts)
- Inflation Adjustment Clause
- When does commercial paper contain an Unconditional promise to pay?
- Backup Line of Credit
- What is Payable on Demand or Payable on Time?
- What is Order Paper and Bearer Paper?
- Bearer Form
- How is a payee identified on the negotiable instrument?
- What rules does the court apply in determining negotiability?