A promissory note, bill of exchange, or check payable to order or to bearer are all considered "negotiable instruments."
<h3>What is a negotiable instrument?</h3>
A negotiable instrument is a piece of paper that guarantees the payment of a certain sum of money, either immediately upon demand or at a predetermined period, and whose payer is typically identified. The ability to transact business and be guaranteed that you will be paid for services or goods without actually moving any cash makes negotiating instruments essential to our economy. For instance, a company can mail a check for payment as an alternative to sending a sizable sum of cash. In an effort to make credit instruments transferable, documentation indicating that someone was in debt were used to create the negotiable instrument, which is simply a document enshrining a claim to payment of money and which may be transferred from one person to another.
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