Negotiable Instruments Act

The term “negotiable instrument” means a document transferable from one person to another, including a promissory note, bill of exchange, or cheque payable either to order or to bearer.

The Act does not specifically define the term “negotiable instrument” but states that it includes a promissory note, bill of exchange, or cheque payable either to order or to bearer.

The conditions of negotiability include that the instrument should be acquired by anyone who takes it bona fide and for value, notwithstanding any defect of title in the person from whom he took it, and that the true owner could transfer the contract or engagement contained therein by simple delivery of instrument.

The types of instruments considered negotiable are promissory notes, bills of exchange, or cheques payable either to order or to bearer.

The significance is that an instrument cannot be negotiable unless it is in such a state that the true owner could transfer the contract or engagement contained therein by simple delivery of the instrument.

A negotiable instrument means a promissory note, bill of exchange, or cheque payable either to order or to bearer.

The Act does not define the term 'negotiable instrument', but it specifies that it includes a promissory note, bill of exchange, or cheque payable either to order or to bearer.

The conditions of negotiability include that the instrument should be transferable, the property in the instrument should be acquired by anyone who takes it bona fide and for value, and the true owner should be able to transfer the contract or engagement contained therein by simple delivery of the instrument.

An instrument, the property in which is acquired by anyone who takes it bona fide, and for value, notwithstanding any defect of title in the person from whom he took it.

The types of documents included in the definition of a negotiable instrument are promissory note, bill of exchange, or cheque payable either to order or to bearer.