TOPIC- Definition of Negotiable Instruments
The law relating to negotiable instrument is embodied in the negotiable instruments act 1881. It deals with the promissory notice, bills of exchange and cheques. The negotiable instruments act came into force of the first day of March 1884.
It extends to the whole of Pakistan but it does not affect the provision of Sec 24 and 35 of the state. Bank of Pakistan act 1956 and accordingly every negotiable instrument shall be governed by the provisions of this act.
The word negotiable means transferable by delivery and instrument means a written document, so it means a document which can be transferred from one person to another making the receiver of that document entitled to receive that same amount of value which is contained.
According to Sec 13 (1) of the negotiable instrument act “A negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or bearer.
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