NEGOTIABLE PAPER Meaning and
Definition
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Negotiable paper refers to a legal document that represents a monetary value and can be transferred from one party to another as a form of payment or to settle a debt. It is typically in the form of a written instrument, such as a promissory note, bill of exchange, or draft, which holds financial value and is regarded as a valid legal instrument.
The key characteristic of negotiable paper is its transferability. This means that it can be easily and freely transferred to another party, usually through endorsement or delivery, without changing its legal rights or obligations. The new holder of the negotiable paper becomes the rightful owner and can enforce its provisions against the original issuer or any subsequent holders.
Additionally, negotiable paper typically possesses certain features that enhance its ease of transfer. These include being payable to the bearer or to a specific person or their assignee, being payable on demand or at a future date, and in some cases, being payable in a specific currency or at a particular location. These features make negotiable paper highly liquid and universally accepted as a form of payment in many business transactions.
Negotiable paper has played a crucial role in facilitating trade, commerce, and financial transactions for centuries. It provides a reliable and convenient means for parties to exchange value, settle debts, and render or receive payment. Furthermore, negotiable paper is an integral part of the modern banking system, as it allows for the creation of credit and the transfer of funds between different financial institutions.
Common Misspellings for NEGOTIABLE PAPER
- begotiable paper
- megotiable paper
- jegotiable paper
- hegotiable paper
- nwgotiable paper
- nsgotiable paper
- ndgotiable paper
- nrgotiable paper
- n4gotiable paper
- n3gotiable paper
- nefotiable paper
- nevotiable paper
- nebotiable paper
- nehotiable paper
- neyotiable paper
- netotiable paper
- negitiable paper
- negktiable paper
- negltiable paper
- negptiable paper
Etymology of NEGOTIABLE PAPER
The word "negotiable paper" originated from the combination of the words "negotiable" and "paper".
1. Negotiable:
The term "negotiable" comes from the Latin word "negotiabilis", which means "able to be transacted or dealt with". It is derived from the Latin word "negotiari", which means "to carry on business". Eventually, it entered English usage in the 17th century, retaining the same meaning of being transferable or freely exchangeable.
2. Paper:
The word "paper" has its roots in the Latin word "papyrus", which referred to a writing material made from the papyrus plant in ancient Egypt. It then evolved through various languages and European cultures and took its present form in English.
