Discussion One (Negotiable instrument)

1. Negotiable instrument refers to a document that consist of a contract guaranteeing or promising the payment of a given amount of money without any attached condition, and the amount may be paid either on demand or upon expiration of a set time. Some of the negotiable instruments includes cheques, banknotes, promissory notes and bills of exchange. As such a negotiable instrument characteristics are unconditional order to pay, payment of specific amount of money, payment made at definite time or on demand, and no requirement to perform any act by the payer (Kuchhal, 2005). Negotiable instruments are transferable to the third party and thus they can be used in sales of goods where buyer pays for the goods sold using a negotiable instrument where seller will claim payment from negotiable instrument issuer.

Non-negotiable instrument on the other hand, is the document of tittle or finical which cannot be exchanged, bought, transferred or sold from the holder to another party. Non-negotiable instruments include crossed check, air waybill, and certificate of deposit (Kuchhal, 2005). The can be used in the sales of goods where for example, a homeowner agrees to sell a house, on condition that he receives not less than $50000, he cannot change the price if its non-negotiable to a buyer who offers $40000.

The woman acts amount to potentially improper endorsement on legal documents, which may lead to cancellation of the legal document, and suing the woman by the aggrieved party. When applied to business the violation could erode the trust, and lead to termination of a business contract and in the situation where the violation is detected after the payment, the aggrieved party can sue the perpetrator both for money involved and accruing damages………………………..