Negotiable instruments are specialized financial documents that facilitate the transfer of money or financial obligations from one party to another.
This is a document which represents money and the title in passes to a bona fide transferee free from only defect. It is a chose in action. Negotiable instruments are transferable by reason of law or trade usage or custom.
Features of negotiable instruments
- Easily transferable
- Must be in writing
- Time of payment must be certain
- Payee also must be certain