REFLECT: Relevance of negotiable Instruments Law

Negotiable instrument is a special type of contract with standardized terms and the
unique attribute of transferability. Furthermore, negotiable instruments have multiple functions:
they are substitutes for money and regarded by some as “currency substitutes”, while also acting
as a credit device with certain forms extending credit from one party to another, and keeping
records that are used for financial statements and tax returns. Having a goal to transfer negotiable
instruments to digital environment isn’t really surprising since throughout our history, we
constantly thrived for new technologies to make our lives more developed and easier.

“Documents which had been used since the dawn of trade by the merchants of old
Europe, and perhaps best specified their own nature in the Bill of Exchange Act 1882.” As stated
above, Negotiable Instruments had existed for quite a while now. If we try to connect it to the
rapid growth of technology, it’ll made us think if NI are still necessary, especially now, anything
is accessible online or electronically.

In all honesty, if I were to asked, I can’t really deny how technology can be a great help
in international trade. All of us are also aware of the rise of electronic payment systems and
payment processing devices. “Volume of transactions with checks was in its all-time-high during
late 1980s and 1990s, however the rise of electronic payment methods de-popularized checks
and their number started to fall.”

For me, NI is still very important and a great help in our daily lives so it shouldn’t be
removed, BUT I also think upgrading and adding more terms, regulations and/or rules to
properly utilized it is a must or having legal contract electronically (that is also signed
electronically) can also be viewed as an upgrade.

Some may argue that there are still people today who have not been reached by
technology which is true, but we can’t also deny the fact that many people are living modernly
and it’ll be easier for them to manage their business (for example) digitally, also some businesses
or corporations require the use of advance technology to be able to continue their operations.
What I’m trying to say is, people can still use NI yet they can also have the OPTION if they want
to transfer/deliver or indorse it electronically or not.
 The main characteristic of the negotiable instruments is the actual way of the transfer.
Some may question the validity and security of transferring these NIs via internet. Yes, it’s very
risky and dangerous. But of course, if users were given the option to negotiate and use NIs
electronically, they should also be assured that these transfers are safe, legal and in good faith.
People responsible for making NI electronically should also come up with strong defense against
many fraudulent acts to secure and protect the users and datas of electronic Negotiable
instruments.

As per the law that governs Negotiable Instruments, we can’t just remove its relevance
just because we have more advance regulations now. Having more advance regulations or modes
of transactions does not hinder the existence, relevance and importance of a prior law. I’m not
trying to say to build or make a new one because that’ll surely make the existing one obsolete,
rather add more something to it or upgrade the existing one. Just like in some millennials terms
today, “Negotiable Instruments 2. 0”.

Sources: (Italicized Quotations)

 ASLAN, L. Redefining Negotiable Instruments with Blockchain:
Modernisation through Digitalisation. 2016 Retrieved from:
http://arno.uvt.nl/show.cgi?fid=146350

 TONCHEV, I. PAST, PRESENT AND FUTURE NEGOTIABLE

INSTRUMENTS IN THE CHANGING WORLD. Retrieved from: http://gsc-
legal.com/media/57c95b1ee0a3a.pdf