What do you mean by negotiable instruments? explain three types?
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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.
Examples of Negotiable instruments are- a cheque, a promissory note, a bill of exchange
DEFINITION OF A NEGOTIABLE INSTRUMENT
Documents of a certain type which are used in commercial transactions and monetary dealings, are known Negotiable instruments.
“Negotiable” means transferable by delivery and
“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.
According to Section 13(i) of negotiable instrument Act, 1881 a negotiable instrument includes and means a promissory note, bill of exchange or cheque.