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 include checks, drafts, bearer bonds, some certificates of deposit, promissory notes, and bank notes (currency). 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 title of the transferor) obtains an indefeasible title and may sue on the instrument in his or her name, and (3) no notice of the transfer need to be given to the party liable in the instrument.
A negotiable instrument is a signed document that promises a sum of payment to a specified person or the assignee. In other words, it is a formalized type of IOU: A transferable, signed document that promises to pay the bearer a sum of money at a future date or on-demand. The payee, who is the person receiving the payment, must be named or otherwise indicated on the instrument.
Because they are transferable and assignable, some negotiable instruments may trade on a secondary market.
Synonyms of Negotiable instrument
CD, IOU, MO, Acceptance, Acceptance bill, Bank acceptance, Bank check, Bill, Bill of draft, Bill of exchange, Blank check, Certificate, Certificate of deposit, Certified check, Charge card, Charge plate, Check, Checkbook, Cheque, Circular note, Commercial paper, Credit card, Credit instrument, Credit slip, Debenture, Demand bill, Demand draft, Deposit slip, Draft, Due bill, Exchequer bill, Letter of credit, Money order, Note, Note of hand, Paper, Postal order, Promissory note, Sight bill, Sight draft, Time bill, Time draft, Trade acceptance, Treasury bill, Voucher, Warrant
How to use Negotiable instrument in a sentence?
- Common examples of negotiable instruments include checks, money orders, and promissory notes.
- A negotiable instrument is a signed document that promises a sum of payment to a specified person or the assignee.
- We had a negotiable instrument that we would use when the time came for it and I knew my dad wanted to use it soon.
- Negotiable instruments are transferable in nature, allowing the holder to take the funds as cash or use them in a manner appropriate for the transaction or according to their preference.
- You should try to have a negotiable instrument in place if you want to be able to trade with another party.
- You may want to keep a negotiable instrument around in case you ever need to close a deal very quickly.
Meaning of Negotiable instrument & Negotiable instrument Definition