NEGOTIABLE INSTRUMENT                                               

Exchange of goods and services is the basic of every business activity. Goods are bought and sold for cash as well as on credit. All these transactions require flow of cash either immediately or after a certain period. In modern business, large numbers of transactions with huge sum of money are transcated. It is quite inconvenient as well as sometimes risky for either party to make and receive payments in cash. Therefore, it is a common practice for businessman to make use of certain documents as means of making payments. Some of these documents are called  negaotiable instruments.

Negotiable Instrument is a piece of paper representing ownership of debts and obligations. The ownership is passed on with the delivery of endorsement and delivery of the piece of paper. Negotiable  Instruments traded in the money market includes bills of exchange, promissionary note and which are written orders promising to pay a specified sum of money at predetermined time to the order of a specified person of bearer. Bills of echange, Promissionary note, Cheques, Drafts, Shares warrants, Dividend Warrants and Debentures are the examples of Negotiable Instrument. All Negotiable Instrument are transferable but all transferable items are not negotiable eg. a bearer cheque can be negotiated and transferred by mere deaivery, but a title certificate of a property can not be transferred by mere delivery, therefore Title Certificates of a physical property is not negotiable. For transfer of titles of properties certain established rules are followed i.e a sale deed must be there....