Negotiable Instrument In Contract
Description
How to fill out Affidavit Of Loss Regarding Negotiable Instrument?
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FAQ
Negotiable Instruments are written contracts whose benefit could be passed on from its original holder to a new holder. In other words, negotiable instruments are documents which promise payment to the assignee (the person whom it is assigned to/given to) or a specified person.
Examples of negotiable instruments include bank checks, promissory notes, certificates of deposit, and bills of exchange.
A negotiable instrument is a contract, albeit not obvious in formation of the required offer, and consideration. Unlike ordinary contract documents, the right to the performance of a negotiable instrument is linked to the possession of the document itself (with certain exceptions such as loss or theft).
Types of Negotiable InstrumentsPersonal checks. Personal checks are signed and authorized by someone who deposited money with the bank and specify the amount required to be paid, as well as the name of the bearer of the check (the recipient).Traveler's checks.Money order.Promissory notes.Certificate of Deposit (CD)
Thus the paper meets the following criteria:It must be in writing.It must be signed by the maker or drawer.It must be an unconditional promise or order to pay.It must be for a fixed amount in money.It must be payable on demand or at a definite time.It must be payable to order or bearer, unless it is a check.