Negotiable Instrument Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Negotiable Instrument, written in plain English, along with examples of how it is used.

What is Negotiable Instrument?

It is a legal contract in form of document, where one party promises the other party a payment of specific sum of money in a definate time unconditionally on the presentation of this document or by endorsing the same. These documents are promissiory notes, cheques, demand drafts, bills of exchanges.