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.