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Question
Explain the characteristics of Negotiable Instrument.
Solution
A negotiable instrument is transferable from one person to another without any formality, such as affixing a stamp, registration, etc. When the instrument is held by the holder in due course in the process of negotiation, it is cured of all defects in the instrument with respect to ownership. Though a bill, a promissory note, or a cheque represents a debt, the transferee is entitled to sue on the instrument in his own name in case of dishonor, without giving notice to the debtor that he has become its holder.
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