Explain the characteristics of negotiable instruments
Characteristics of negotiable instruments
- No notice of transfer needs to be given.
- Consideration is always assumed to have been given.
- If made payable to bearer it is negotiable by mere delivery but if payable on order is negotiable by delivery and endorsement.
- It’s not affected by the doctrine of privity to contract.
Transferee acquires title if he takes it in good faith and for value