egotiable Instruments are characterized by their transferability of the title.

They are frequently

transferred from one person to another for making payments and discharging business obligations. In
the Law lexicon, such process of transferring of the title or ownership of negotiable instruments is called
‘Negotiation.’ Section 4 of the Negotiable Instruments Act 1881: “When a promissory note, bill of
exchange or cheque is transferred to any person, so as to constitute that person the holder thereof, the
instrument is said to be negotiated.” Alternatively speaking, negotiation implies a transfer of negotiable
instrument so as to constitute the transferee a holder thereof, who should be entitled in his own name
to sue on the instrument and recover the amount due thereon. Example: Handing over a bearer
instrument to one’s servant for safe keeping is not negotiation. Why? Because, transfer must be with
intention to pass title or ownership of the instrument.

••
Who Can Negotiate?

• Every maker, drawer, payee or endorsee , and if there are several makers, drawers, payees or
endorsees, all of them jointly can negotiate an instrument, provided the negotiability of such instrument
has not been restricted or excluded by any express words used in the instrument. • The maker, drawer,
payee or endorsee cannot endorse instrument unless he is in lawful possession or is holder thereof
(Section 51). • Negotiable instrument can be negotiated till the party ultimately liable pays it at or after
maturity.

3
How Is Negotiation Different From Assignment?

• The equitable title of the instrument may also be transferred by ‘assignment’ by a separate deed in
writing in accordance with the Transfer of Property Act. • However, negotiation and assignment differ
from each other on certain points. • These are tabulated in the next slide.

egotiable Instruments are characterized by their transferability of the title. They are frequently
transferred from one person to another for making payments and discharging business obligations. In
the Law lexicon, such process of transferring of the title or ownership of negotiable instruments is called
‘Negotiation.’ Section 4 of the Negotiable Instruments Act 1881: “When a promissory note, bill of
exchange or cheque is transferred to any person, so as to constitute that person the holder thereof, the
instrument is said to be negotiated.” Alternatively speaking, negotiation implies a transfer of negotiable
instrument so as to constitute the transferee a holder thereof, who should be entitled in his own name
to sue on the instrument and recover the amount due thereon. Example: Handing over a bearer
instrument to one’s servant for safe keeping is not negotiation. Why? Because, transfer must be with
intention to pass title or ownership of the instrument.

••
Who Can Negotiate?

• Every maker, drawer, payee or endorsee , and if there are several makers, drawers, payees or
endorsees, all of them jointly can negotiate an instrument, provided the negotiability of such instrument
has not been restricted or excluded by any express words used in the instrument. • The maker, drawer,
payee or endorsee cannot endorse instrument unless he is in lawful possession or is holder thereof
(Section 51). • Negotiable instrument can be negotiated till the party ultimately liable pays it at or after
maturity.

3
How Is Negotiation Different From Assignment?

• The equitable title of the instrument may also be transferred by ‘assignment’ by a separate deed in
writing in accordance with the Transfer of Property Act. • However, negotiation and assignment differ
from each other on certain points. • These are tabulated in the next slide.

4
Points of Differenceegotiable Instruments are characterized by their transferability of the title. They are
frequently transferred from one person to another for making payments and discharging business
obligations. In the Law lexicon, such process of transferring of the title or ownership of negotiable
instruments is called ‘Negotiation.’ Section 4 of the Negotiable Instruments Act 1881: “When a
promissory note, bill of exchange or cheque is transferred to any person, so as to constitute that person
the holder thereof, the instrument is said to be negotiated.” Alternatively speaking, negotiation implies a
transfer of negotiable instrument so as to constitute the transferee a holder thereof, who should be
entitled in his own name to sue on the instrument and recover the amount due thereon. Example:
Handing over a bearer instrument to one’s servant for safe keeping is not negotiation. Why? Because,
transfer must be with intention to pass title or ownership of the instrument.

••
Who Can Negotiate?

• Every maker, drawer, payee or endorsee , and if there are several makers, drawers, payees or
endorsees, all of them jointly can negotiate an instrument, provided the negotiability of such instrument
has not been restricted or excluded by any express words used in the instrument. • The maker, drawer,
payee or endorsee cannot endorse instrument unless he is in lawful possession or is holder thereof
(Section 51). • Negotiable instrument can be negotiated till the party ultimately liable pays it at or after
maturity.

3
How Is Negotiation Different From Assignment?

• The equitable title of the instrument may also be transferred by ‘assignment’ by a separate deed in
writing in accordance with the Transfer of Property Act. • However, negotiation and assignment differ
from each other on certain points. • These are tabulated in the next slide.

4
Points of Differenceegotiable Instruments are characterized by their transferability of the title. They are
frequently transferred from one person to another for making payments and discharging business
obligations. In the Law lexicon, such process of transferring of the title or ownership of negotiable
instruments is called ‘Negotiation.’ Section 4 of the Negotiable Instruments Act 1881: “When a
promissory note, bill of exchange or cheque is transferred to any person, so as to constitute that person
the holder thereof, the instrument is said to be negotiated.” Alternatively speaking, negotiation implies a
transfer of negotiable instrument so as to constitute the transferee a holder thereof, who should be
entitled in his own name to sue on the instrument and recover the amount due thereon. Example:
Handing over a bearer instrument to one’s servant for safe keeping is not negotiation. Why? Because,
transfer must be with intention to pass title or ownership of the instrument.

••
Who Can Negotiate?

• Every maker, drawer, payee or endorsee , and if there are several makers, drawers, payees or
endorsees, all of them jointly can negotiate an instrument, provided the negotiability of such instrument
has not been restricted or excluded by any express words used in the instrument. • The maker, drawer,
payee or endorsee cannot endorse instrument unless he is in lawful possession or is holder thereof
(Section 51). • Negotiable instrument can be negotiated till the party ultimately liable pays it at or after
maturity.

3
How Is Negotiation Different From Assignment?

• The equitable title of the instrument may also be transferred by ‘assignment’ by a separate deed in
writing in accordance with the Transfer of Property Act. • However, negotiation and assignment differ
from each other on certain points. • These are tabulated in the next slide.

4
Points of Differenceegotiable Instruments are characterized by their transferability of the title. They are
frequently transferred from one person to another for making payments and discharging business
obligations. In the Law lexicon, such process of transferring of the title or ownership of negotiable
instruments is called ‘Negotiation.’ Section 4 of the Negotiable Instruments Act 1881: “When a
promissory note, bill of exchange or cheque is transferred to any person, so as to constitute that person
the holder thereof, the instrument is said to be negotiated.” Alternatively speaking, negotiation implies a
transfer of negotiable instrument so as to constitute the transferee a holder thereof, who should be
entitled in his own name to sue on the instrument and recover the amount due thereon. Example:
Handing over a bearer instrument to one’s servant for safe keeping is not negotiation. Why? Because,
transfer must be with intention to pass title or ownership of the instrument.

••
Who Can Negotiate?

• Every maker, drawer, payee or endorsee , and if there are several makers, drawers, payees or
endorsees, all of them jointly can negotiate an instrument, provided the negotiability of such instrument
has not been restricted or excluded by any express words used in the instrument. • The maker, drawer,
payee or endorsee cannot endorse instrument unless he is in lawful possession or is holder thereof
(Section 51). • Negotiable instrument can be negotiated till the party ultimately liable pays it at or after
maturity.

3
How Is Negotiation Different From Assignment?

• The equitable title of the instrument may also be transferred by ‘assignment’ by a separate deed in
writing in accordance with the Transfer of Property Act. • However, negotiation and assignment differ
from each other on certain points. • These are tabulated in the next slide.

4
Points of Differenceegotiable Instruments are characterized by their transferability of the title. They are
frequently transferred from one person to another for making payments and discharging business
obligations. In the Law lexicon, such process of transferring of the title or ownership of negotiable
instruments is called ‘Negotiation.’ Section 4 of the Negotiable Instruments Act 1881: “When a
promissory note, bill of exchange or cheque is transferred to any person, so as to constitute that person
the holder thereof, the instrument is said to be negotiated.” Alternatively speaking, negotiation implies a
transfer of negotiable instrument so as to constitute the transferee a holder thereof, who should be
entitled in his own name to sue on the instrument and recover the amount due thereon. Example:
Handing over a bearer instrument to one’s servant for safe keeping is not negotiation. Why? Because,
transfer must be with intention to pass title or ownership of the instrument.

••
Who Can Negotiate?

• Every maker, drawer, payee or endorsee , and if there are several makers, drawers, payees or
endorsees, all of them jointly can negotiate an instrument, provided the negotiability of such instrument
has not been restricted or excluded by any express words used in the instrument. • The maker, drawer,
payee or endorsee cannot endorse instrument unless he is in lawful possession or is holder thereof
(Section 51). • Negotiable instrument can be negotiated till the party ultimately liable pays it at or after
maturity.

3
How Is Negotiation Different From Assignment?

• The equitable title of the instrument may also be transferred by ‘assignment’ by a separate deed in
writing in accordance with the Transfer of Property Act. • However, negotiation and assignment differ
from each other on certain points. • These are tabulated in the next slide.

4
Points of Differenceegotiable Instruments are characterized by their transferability of the title. They are
frequently transferred from one person to another for making payments and discharging business
obligations. In the Law lexicon, such process of transferring of the title or ownership of negotiable
instruments is called ‘Negotiation.’ Section 4 of the Negotiable Instruments Act 1881: “When a
promissory note, bill of exchange or cheque is transferred to any person, so as to constitute that person
the holder thereof, the instrument is said to be negotiated.” Alternatively speaking, negotiation implies a
transfer of negotiable instrument so as to constitute the transferee a holder thereof, who should be
entitled in his own name to sue on the instrument and recover the amount due thereon. Example:
Handing over a bearer instrument to one’s servant for safe keeping is not negotiation. Why? Because,
transfer must be with intention to pass title or ownership of the instrument.

••
Who Can Negotiate?

• Every maker, drawer, payee or endorsee , and if there are several makers, drawers, payees or
endorsees, all of them jointly can negotiate an instrument, provided the negotiability of such instrument
has not been restricted or excluded by any express words used in the instrument. • The maker, drawer,
payee or endorsee cannot endorse instrument unless he is in lawful possession or is holder thereof
(Section 51). • Negotiable instrument can be negotiated till the party ultimately liable pays it at or after
maturity.

3
How Is Negotiation Different From Assignment?

• The equitable title of the instrument may also be transferred by ‘assignment’ by a separate deed in
writing in accordance with the Transfer of Property Act. • However, negotiation and assignment differ
from each other on certain points. • These are tabulated in the next slide.

4
Points of Differenceegotiable Instruments are characterized by their transferability of the title. They are
frequently transferred from one person to another for making payments and discharging business
obligations. In the Law lexicon, such process of transferring of the title or ownership of negotiable
instruments is called ‘Negotiation.’ Section 4 of the Negotiable Instruments Act 1881: “When a
promissory note, bill of exchange or cheque is transferred to any person, so as to constitute that person
the holder thereof, the instrument is said to be negotiated.” Alternatively speaking, negotiation implies a
transfer of negotiable instrument so as to constitute the transferee a holder thereof, who should be
entitled in his own name to sue on the instrument and recover the amount due thereon. Example:
Handing over a bearer instrument to one’s servant for safe keeping is not negotiation. Why? Because,
transfer must be with intention to pass title or ownership of the instrument.

••
Who Can Negotiate?

• Every maker, drawer, payee or endorsee , and if there are several makers, drawers, payees or
endorsees, all of them jointly can negotiate an instrument, provided the negotiability of such instrument
has not been restricted or excluded by any express words used in the instrument. • The maker, drawer,
payee or endorsee cannot endorse instrument unless he is in lawful possession or is holder thereof
(Section 51). • Negotiable instrument can be negotiated till the party ultimately liable pays it at or after
maturity.

3
How Is Negotiation Different From Assignment?

• The equitable title of the instrument may also be transferred by ‘assignment’ by a separate deed in
writing in accordance with the Transfer of Property Act. • However, negotiation and assignment differ
from each other on certain points. • These are tabulated in the next slide.

4
Points of Differenceegotiable Instruments are characterized by their transferability of the title. They are
frequently transferred from one person to another for making payments and discharging business
obligations. In the Law lexicon, such process of transferring of the title or ownership of negotiable
instruments is called ‘Negotiation.’ Section 4 of the Negotiable Instruments Act 1881: “When a
promissory note, bill of exchange or cheque is transferred to any person, so as to constitute that person
the holder thereof, the instrument is said to be negotiated.” Alternatively speaking, negotiation implies a
transfer of negotiable instrument so as to constitute the transferee a holder thereof, who should be
entitled in his own name to sue on the instrument and recover the amount due thereon. Example:
Handing over a bearer instrument to one’s servant for safe keeping is not negotiation. Why? Because,
transfer must be with intention to pass title or ownership of the instrument.

••
Who Can Negotiate?

• Every maker, drawer, payee or endorsee , and if there are several makers, drawers, payees or
endorsees, all of them jointly can negotiate an instrument, provided the negotiability of such instrument
has not been restricted or excluded by any express words used in the instrument. • The maker, drawer,
payee or endorsee cannot endorse instrument unless he is in lawful possession or is holder thereof
(Section 51). • Negotiable instrument can be negotiated till the party ultimately liable pays it at or after
maturity.

3
How Is Negotiation Different From Assignment?

• The equitable title of the instrument may also be transferred by ‘assignment’ by a separate deed in
writing in accordance with the Transfer of Property Act. • However, negotiation and assignment differ
from each other on certain points. • These are tabulated in the next slide.

4
Points of Differenceegotiable Instruments are characterized by their transferability of the title. They are
frequently transferred from one person to another for making payments and discharging business
obligations. In the Law lexicon, such process of transferring of the title or ownership of negotiable
instruments is called ‘Negotiation.’ Section 4 of the Negotiable Instruments Act 1881: “When a
promissory note, bill of exchange or cheque is transferred to any person, so as to constitute that person
the holder thereof, the instrument is said to be negotiated.” Alternatively speaking, negotiation implies a
transfer of negotiable instrument so as to constitute the transferee a holder thereof, who should be
entitled in his own name to sue on the instrument and recover the amount due thereon. Example:
Handing over a bearer instrument to one’s servant for safe keeping is not negotiation. Why? Because,
transfer must be with intention to pass title or ownership of the instrument.

••
Who Can Negotiate?

• Every maker, drawer, payee or endorsee , and if there are several makers, drawers, payees or
endorsees, all of them jointly can negotiate an instrument, provided the negotiability of such instrument
has not been restricted or excluded by any express words used in the instrument. • The maker, drawer,
payee or endorsee cannot endorse instrument unless he is in lawful possession or is holder thereof
(Section 51). • Negotiable instrument can be negotiated till the party ultimately liable pays it at or after
maturity.

3
How Is Negotiation Different From Assignment?

• The equitable title of the instrument may also be transferred by ‘assignment’ by a separate deed in
writing in accordance with the Transfer of Property Act. • However, negotiation and assignment differ
from each other on certain points. • These are tabulated in the next slide.

4
Points of Difference
Points of Difference