NI act Law
Negotiable Instrument
A document — such as a cheque, promissory note, or bill of exchange — that guarantees payment of a specific sum, either on demand or at a set time, and can be transferred between parties.
Negotiable instruments are designed to function almost like currency in commercial dealings — the person holding them in good faith generally gets good title, even if there was a defect somewhere earlier in the chain, which is part of what makes them useful for smooth commercial transactions.
The most common negotiable instruments people encounter are cheques, promissory notes, and bills of exchange, each with slightly different legal characteristics.
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