Negotiable Instrument - Order or Bearer Paper

The video tutorial explains the concept of negotiable instruments, focusing on two main types: order paper and bearer paper. Order paper must include the word 'order' and be made out to a named person or their order, allowing transferability. Bearer paper, on the other hand, is made out to 'bearer' or no one specific, making it transferable by possession. The tutorial highlights the importance of specific wording in determining the type of negotiable instrument and its transferability.

Explain the significance of the wording in negotiable instruments.

What does it mean if an instrument is made out to bearer?