Negotiable

Instruments
Namra Ajmal
20020920-147
Negotiable Instruments

• The UCC defines a negotiable instrument as an unconditioned writing

that promises or orders the payment of a fixed amount of money.
• Drafts and notes are the two categories of instruments.
• A draft is an instrument that orders a payment to be made.
• An example is cheque, money orders, and promissory notes.
Examples:

• Promissory note.
• Bill of exchange.
• Cheque.
Promissory note
A promissory note is an instrument in writing containing an
unconditional undertaking signed by the maker to pay a certain sum of
money only to or to the order of a certain person or to the bearer of the
instrument.
Continue..
Bill of exchange:
• Bill of exchange is an instrument in writing containing an
unconditional order signed by the maker, directing a certain person to
pay a certain sum of money only to, or to the order of certain person to
the bearer of the instrument
Cheque:
• A bill of exchange drawn on a specified banker and expressed to be
payable otherwise than on demand. The maker of a bill of exchange or
Cheque is called the “Drawer"; the person thereby directed to pay is
called the "Drawee".