NEGOTIABLE

INSTRUMENT  , in law, a document or other instrument purporting to represent so much money, and the property in which passes, like money, by mere delivery . Negotiable instruments arise in either of two ways: (1) by statute, (2) by custom of merchants . The most commonly recognized negotiable instruments are bills of exchange, promissory notes, bills of lading, foreign bonds and debentures payable to bearer . Negotiable instruments constitute an exception to the general rule that a man cannot give a better title than he has himself (see BILL OF EXCHANGE) .