ADMS 2610 Lecture Notes - Lecture 5: Certified Check, Financial Institution, Revolving Credit
7 Nov 2015
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Negotiable instrument: an instrument in writing that, when transferred in good faith and for. The most common form of payment used is the negotiable instrument. value without notice of defects, passes a good title to the instrument to the transferee. They are represented in today"s business world by cheques, promissory notes, and bills of exchange. The nature of these money substitutes and the rights that attach to them are governed for the most part by the bills of exchange act, a federal statute. The federal bills of exchange act sets out the general rules of law in canada that relate to bills of exchange, cheques, and promissory notes. Advantages of a negotiable instrument: bills of exchange reduced the risk involved in transporting money from one place to another. It may be used to create credit: negotiability. In some circumstances a transferee of a bill of exchange may acquire a greater right to payment than the transferor of the bill.
