A negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or bearer.
Characteristics of Negotiable Instrument
- Easy transferability
- Rights of the holder
- Better title to transferee
- Unconditional promise or order
- Certain amount
Examples of Negotiable Instruments
Bill of exchange, promissory notes, cheques, Dividend warrants, share warrants, bearer debentures, banks drafts etc.