Negotiation
Full Text
Negotiation.—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.
Plain English Summary
Defines negotiation as the transfer of a promissory note, bill of exchange, or cheque to another person in a way that makes them the holder.
Key Legal Elements
- Requires transfer of a promissory note, bill, or cheque
- The transfer must constitute the transferee as the holder of the instrument
Practical Note
Negotiation is different from a simple assignment of debt. Negotiation transfers the title along with the rights of a holder in due course, allowing the transferee to sue in their own name and potentially acquire a better title than the transferor.
हिंदी पाठ
परक्रामण।—जब कोई वचन-पत्र, विनिमय-पत्र या चेक किसी व्यक्ति को इस प्रकार हस्तांतरित किया जाता है कि वह व्यक्ति उसका धारक (holder) बन जाता है, तो उस लिखत को परक्रामित (negotiated) कहा जाता है।