Negotiable Instrument Legal Meaning and Definition

Here is a simplified definition of the legal term Negotiable Instrument.

Negotiable Instrument (noun)

A Negotiable Instrument is a legal document that guarantees one party's promise to pay a specific sum of money to another party. This payment is bound to happen unconditionally at a certain time, just by presenting or endorsing this document. Common forms of Negotiable Instruments can include items such as checks, promissory notes, demand drafts, and bills of exchange.