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negotiable instrument

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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"negotiable instrument." The Columbia Encyclopedia, 6th ed.. . Encyclopedia.com. 20 Oct. 2017 <http://www.encyclopedia.com>.

"negotiable instrument." The Columbia Encyclopedia, 6th ed.. . Encyclopedia.com. (October 20, 2017). http://www.encyclopedia.com/reference/encyclopedias-almanacs-transcripts-and-maps/negotiable-instrument

"negotiable instrument." The Columbia Encyclopedia, 6th ed.. . Retrieved October 20, 2017 from Encyclopedia.com: http://www.encyclopedia.com/reference/encyclopedias-almanacs-transcripts-and-maps/negotiable-instrument

Negotiable Instrument

NEGOTIABLE INSTRUMENT

Acommercial paper, such as a check or promissory note, that contains the signature of the maker or drawer; an unconditional promise or order to pay a certain sum in cash that is payable either upon demand or at a specifically designated time to the order of a designated person or to its bearer.

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"Negotiable Instrument." West's Encyclopedia of American Law. . Encyclopedia.com. 20 Oct. 2017 <http://www.encyclopedia.com>.

"Negotiable Instrument." West's Encyclopedia of American Law. . Encyclopedia.com. (October 20, 2017). http://www.encyclopedia.com/law/encyclopedias-almanacs-transcripts-and-maps/negotiable-instrument

"Negotiable Instrument." West's Encyclopedia of American Law. . Retrieved October 20, 2017 from Encyclopedia.com: http://www.encyclopedia.com/law/encyclopedias-almanacs-transcripts-and-maps/negotiable-instrument