Negotiable Instruments Act Section 14 — Negotiation

CHAPTER II OF NOTES, BILLSAND CHEQUES

General

Summary

When a promissory note, bill of exchange, or cheque is handed over or transferred to someone in a way that makes that person the official holder of the document, this transfer is called "negotiation." In simple terms, negotiation is the act of passing the instrument to another person so that they become the new holder of it.

Official Text

When a promissory note, bill of exchange or cheque is transferred to any person, so as to constitute that person the holder thereof, the instrument is said to be negotiated.