Banking Term: Negotiation

Find important banking term that is useful in upcoming banking exam.

Apr 13, 2015 16:27 IST
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Banking Term: Negotiation

  • Negotiation is transferring of any instrument from one person to another in such a manner as to convey title and to constitute the transferee the holder thereof.
  • In case of bearer instrument, the negotiation is complete with delivery only.
  • But the negotiation by endorsement and delivery would be required in case of NIs payable to order.
  • Delivery is important to complete negotiation, which may be actual or constructive.
  • Without delivery the property will not be considered to have been transferred.

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