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Negotiable Instrument
By Contributor on January 28, 2019
A negotiable instrument refers to any document that is a promise of payment to the bearer or to order.
This means that such a written instrument is transferable from one party to another.
You need to know:
What lenders hope you never learn about mortgages
The most common negotiable instruments we see everyday are:
- Stocks
- Promissory notes
- Checks
- etc
Only a person or people whose names appear on a negotiable instrument are liable to to the promise made on it.
By the same token a bearer cannot be refused a payment as long as he or she have the capacity to contract.
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