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negotiable instrument

The Columbia Encyclopedia, Sixth Edition | 2008 | The Columbia Encyclopedia, Sixth Edition. Copyright 2008 Columbia University Press. (Hide copyright information) Copyright

negotiable instrument bill of exchange, check, promissory note, or other written contract for payment that may serve as a substitute for money. It is simple in form and easy to transfer. Transfer of a negotiable instrument, accomplished by delivery or endorsement and delivery, gives the new holder of the contract the right to enforce fulfillment in his own name. Negotiable instruments made payable to bearer are transferred by delivery; those made payable to order are transferred by endorsement and delivery. Like commercial paper , negotiable instruments were developed to meet the needs of trade. They are used by businessmen to facilitate long-distance transactions and to avoid the constant exchange of large amounts of cash.

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Related entries from encyclopedias, dictionaries, and thesauruses

negotiable instrument
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non-negotiable instruments
Book article from: A Dictionary of Business and Management non-negotiable instruments See negotiable instrument . Read more
Negotiable Instrument
Encyclopedia entry from: West's Encyclopedia of American Law NEGOTIABLE INSTRUMENT A commercial paper, such as a check or promissory note, that contains the signature of the maker or drawer; an unconditional promise... Read more
not negotiable
Book article from: A Dictionary of Business and Management not negotiable Words marked on a bill of exchange indicating that it ceases to be a negotiable instrument , i.e. although it can still be negotiated, the holder cannot obtain a better title to it than the person from whom it was obtained, thus providing a safeguard if it is stolen. A cheque is the only form ... Read more
inchoate instrument
Book article from: A Dictionary of Business and Management inchoate instrument A negotiable instrument in which not all the particulars are given. The drawer of an inchoate instrument can authorize a third party to fill in a specified missing particular. Read more

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