negotiable instruments

Negotiable instruments are written documents that guarantee the payment of a specific amount of money, either on demand or at a set time. Common examples include checks, promissory notes, and bills of exchange. These instruments are transferable, meaning they can be sold or passed from one person to another, making them a convenient way to conduct financial transactions. Their negotiability allows the holder to receive payment directly, facilitating trade and commerce. The legal framework governing these instruments ensures protection for all parties involved in the transaction.