A negotiable instrument is a written order promising to pay a sum of money.
A document becomes negotiable when it contains an unconditional promise to pay money and is payable to a bearer or payable on demand.
Nature of the negotiable instrument are-
Types of negotiable instrument
Cheque -> A cheque is a bill of exchange on a specified banker and not expressed to be payable otherwise than on demand.
Bill of Exchange -> A bill of exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay another person a certain sum of money.
Promissory Statements -> 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 a certain person or the bearer of the instrument.
Hundis -> Negotiable instruments written in any vernacular language according to the Indian Mercantile common law are called as Hundis.