Negotiable Instrument

The term 'Negotiable' means transferable by delivery and the term 'Instrument' means a written document by which a right is created in favor of some person.
According to Section 13 of the NI Act-1881, Negotiable Instrument means ' a promissory note, bill of exchange or cheque' payable either to order or to bearer. These are transferable from one person to another by mere delivery or by endorsement and delivery.


Features of Negotiable Instrument: i) Transferability, ii) Ownership iii) Presumptions
Kinds of Negotiable Instrument:
A. NI by law:
i) Promissory Notes
ii) Bill of Exchange
iii) Cheque
iv) Traveler's Cheque (recognized by USA courts)
B. NI by mercantile usage:
i) Govt. Promissory notes
ii) Treasury Bills
iii) Dividend warrants
iv) Share warrants
v) Bearer debentures
vi) Port trust
vii) Hundis
viii) Railway bond
ix) Bearer bond
x) Warehouse keepers warrants , etc
C. Quasi NI:
i) Bill of lading
ii) Dock warrants
iii) Promissory notes issued by Govt.
iv) Railway receipt
D. Non-negotiable Instrument
i) Taka notes
ii) Money orders
iii) Postal orders
iv) Fixed deposit
v) Share certificate