Negotiable Instruments - Explained

A negotiable instrument is a commercial document that must be in writing, signed, and contain an unconditional promise or order to pay a fixed amount of money. It should be payable on demand or at a specified time and can be payable to a specific person or bearer. Common types include drafts, checks, promissory notes, and certificates of deposit.

What are the key requirements for a document to be considered a negotiable instrument?

Explain the significance of an unconditional promise in a negotiable instrument.

What does it mean for a negotiable instrument to be payable on demand?

Differentiate between 'payable to order' and 'payable to bearer' in the context of negotiable instruments.

List some common types of negotiable instruments and provide a brief description of each.