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NEGOTIABLE INSTRUMENTS (NIs) are written contracts for the payment of money that can pass freely from person to person. There are two main types: promissory notes, which contain an unconditional promise to pay, and bills of exchange, which contain an unconditional order to pay. NIs allow currency to be supplemented and purchasing power increased by substituting for money. They are freely transferable and give holders in due course protection from certain defenses. The Negotiable Instruments Law governs most

Author

Lizzy Way

Language

EN