Science, asked by nonu6873, 1 year ago

Explain negotiable instrument with types?

Answers

Answered by lucky091
1
In day-to-day banking, a negotiable instrument usually refers to checks, drafts, bills of exchange, and sometypes of promissory notes. 3. ... Anegotiable instrument is a written order promising to pay a sum of money.

or in other words

A Negotiable Instrument is that document that includes a ‘promise to pay’ a certain amount of money to the bearer of the document. Its a mode of transferring a debt from one person to another. Negotiable Instruments are always in written form.

"Negotiable" means transferable by delivery 

"instrument"means a written document by which a right is created in favor of some person.  Thus, negotiable instrument means a document which is transferable by delivery.
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