What Are The Negotiable Instruments?

A promissory note is the simplest kind of credit instruments. It is defined in the negotiable instrument act as an instrument in writing, not being a currency note or banknote, containing an unconditional undertaking, signed by the maker or pay on demand or at a fixed determinable future time, a certain sum of money to or to the order of a certain person or to the bearer of the instrument. If a promissory note is not to be made negotiable, then all the conditions mentioned above are fulfilled.
Next instrument is a bill of exchange and according to the Negotiable Instrument Act-1881, it is an instrument in writing containing an unconditional order signed by the maker, directing a certain person to pay on demand or at a fixed or determinable future time a certain sum of money only to or to the order of a certain person to the bearer of the instrument. A bill of exchange is used in remitting funds.
The Negotiable Instruments Act, 1881 also states that a cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand. A cheque is an instrument which adds to the safety eases the doing of business.