Negotiation   {sec 14}


Meaning: –

Negotiation means transfer of a negotiable instrument to any other person so as to constitute that person the holder of such negotiable instrument.

Methods of negotiation: –

*Negotiation by delivery –

1. A bearer instrument may be negotiated by delivery.

2. The delivery must be voluntary

*Negotiation by endorsement and delivery

An order instrument can be negotiated only by way of

1. Endorsement; and

2. Delivery.

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