4(i).

Describe the function of negotiable instruments

The law of negotiable instruments in Malaysia is managed by the Bill Of Exchange 1949 (Revised 1948).
A negotiable instrument is a document that contains a promise to pay a certain amount of money that
may be transmitted by delivery or endorsement and delivery. The function of negotiable instruments is
as the money replacement or as a credit extension. It is important that the instrument be easily
transferred without the risk of becoming uncollectible for it to operate. A negotiable instrument is used
to transfer payments from one entity to another.