Negotiable

In Mercantile Law. A term applied to a contract, the right of action on which is capable of being transferred by indorsement (of which delivery is an essential part), in case the undertaking is to A or his order, A or his agent, and the like, or by delivery alone, in case the undertaking is to A or hearer, — the assignee in either case having a right to sue in his own name. That which is capable of being transferred, by assignment, indorsement, or by delivery. Vietor v. Johnson, 148 l’a. 583, 24 Atl. 173. Complete negotiability involves the right of the assignee to sue in his own name and take free of equities against the assignor; L. It. 8 Q. B. 874. At common law, choses in action were not assignable; but exceptions to this rule have grown up by mercantile usage as to some classes of simple contracts, and others have been introduced by statute, so that now bills of exchange, promissory notes, and bank-notes, to order or bearer, are universally negotiable; and notes not to order action in the name of the assignor; and in some states, by statute, bonds and other specialties are assignable by indorsement. See Assignment.

An instrument embodying an obligation for the payment of money is called "negotiable" when the legal title to the instrument itself and to the whole amount of money expressed upon its face, with the right to sue therefor in his own name, may be transferred from one person to another without a formal assignment, but by mere indorsement and delivery by the holder or by delivery only. See 1 Daniel, Nego. Inst. § 1; Walker v. Ocean Bank, 19 Ind. 247; Robinson v. Wlikinson, 38 Mich. 299; Odell v. Gray, 15 Mo. 337, 55 Am. Dee, 147.

— Negotiable instruments. A general name for bills, notes, checks, transferable bonds or coupons, letters of credit, and other negotiable written securities. Any written securities which may be transferred by indorsement and delivery or by delivery merely, so as to vest in the indorsee the legal title, and thus enable him to sue thereon in his own name. Or, more technically, those instruments which not only carry the legal title with them by indorsement or delivery, but carry as well, when transferred before maturity, the right of the transferee to demand the full amounts which their faces call for. Daniel, Neg. Inst. § la. A negotiable instrument is a written promise or request for the payment of a certain sum of money to order or bearer. CSv. Code Cal. § 3087.

— Negotiable words. Words and phrases which impart the character of negotiability to bills, notes, checks, etc., in which they are inserted; for instance, a direction to pay to A. "or order" cr "bearer."

Transferable or assignable; transferable by indorsement A term applied to bills of exchange, promissory notes, and checks. Negotiable instrument: an instrument the right of action on which is assignable or transferable. Negotiable words: words necessary to render a bill of exchange, promissory note or check negotiable. The usual word in a bill or note is " order,'" and in a check "bearer."

The word “negotiation,” as used by writers upon mercantile =a law, means the act by which a bill of exchange or promissory note is put into cireulation, by being passed by one of the original parties to another person. ‘“Nevotiable” means that which is capable of being trans- SE ferred by assignment; a thing which may be transferred by a sale and indorsement or delivery. This negotiable quality transfers the ee debt from the party to whom it was originallg ly owing, to the holder, when the instrument is properly indorsed, so as to enable the Jatter to suc, in his own name, cither the maker of a promissory note or the acceptor of a bill of exchange, and the other parties to such instruments, such as the drawer of a bill, or the indorser of a bill or note, unless the holder has been guilty of laches in giving the required notice. It must, however, be pay. able to order or bearer, and, at all events, in money only, and not out of any particular fund. 60 Ind, 250. ee NEGOTIABLE INSTRUMENTS. A general name for bills, notes, checks, trans- SS ferable bonds or coupons, lettera of credit, and other negotiable written securities. Any written securities which may be trans- SS ferred by indorsement and delivery or by delivery merely, 80 a3 to vest in the indorsea the legal title, and thus enable him to sue thereon in his own hame. Or, more technically, those instruments which not only carry the lecal title with them by indorsement or delivery, but carry as well, when transferred before maturity, the right of the transferve to demand the full amounts which their faces callfor. Daniel, Neg. inst. § la. A negotiable instrument ig a written promise or request for the payment of a certain sum of money toorder or bearer. Civil Code Cal. § 3087.

A term applied to an evidence so transferred that the transferee may Transferable by indorsement. Negotiable " order " or " bearer " in a note, bill, or