Illustrate Negotiable Instruments

Question

Illustrate what do you mean by Negotiable Instruments?

Answer 1

Negotiation is a process of assigning a negotiable instrument, likely a cheque/ promissory note. The law for negotiation differs in 3 very important aspects from law for assignment in general:

1. Notice doesn’t give to the promisor.

2. Assignee may stand in a superior position than assignor in either suing the assignor or defending an action by assignor.

3. Assignee can sue in his or her own name without joining the assignor as a party to the action.