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Negotiable instruments refer to a written document which can be transferred freely and which confers upon the person who has the instrument a right to obtain the funds mentioned from the issuer.
The object of the Negotiable Instruments Act 1881 is to allow consistency in the issue of negotiable instruments, make them legally enforceable and allow people to use instruments like checks, promissory notes, bill of exchange, etc. without the risk of the party issuing them defaulting.
There are various conditions on the details that each negotiable instrument has to carry and these differ from one instrument to another. For example the promissory note is an unconditional promise to pay whereas the bill of exchange is an order to make a payment. Similar differences are present in the other negotiable instruments also.
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