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Glite Dictionary
negotiable instrument

negotiable instrument

1 8.0
A written paper that promises payment of a certain amount to a named person or the holder when due
  • noun
  • /nɪˈɡoʊʃəbl ˈɪnstrəmənt/
  • Specialized
translation icon : instrumento negociable
  • The issue of whether the typical note is a negotiable instrument, for example, doesn't seem to have been the slightest concern for lenders.

Examples

  • The L is a negotiable instrument representing the title for the cargo.

    Academic text (2017)

  • A check is a common type of negotiable instrument that ensures payment to the holder.

  • The bank will only accept that contract if it is in the form of a negotiable instrument.

  • Businesses often use negotiable instruments like promissory notes to facilitate transactions.

Synonyms

instrument
vsnegotiable instrument
  • Formal
65 8.3

A legal document that records an agreement or gives a right

is written guarantee to pay a specific amount to named payee or bearer
legal instrument
vsnegotiable instrument
  • Formal
1 6.1

A formal written document that creates a legal right or agreement

is narrower and is a payment guarantee naming payee or bearer

Surface Forms

negotiable instrument singular
negotiable instruments plural

Morphology

negotiable + instrument

A learner who knows 'negotiable' (able to be transferred or negotiated) and 'instrument' (a formal document) can infer a general sense of a transferable document, so part of the meaning is derivable from the constituents. However, the precise legal sense — a written guarantee of payment, endorsement rules and payee/bearer specifics — is specialized and not fully predictable to a B1 learner without exposure, so it is only partially transparent.

Etymology

Negotiable instrument comes from old trade: instrument meant a paper 'tool' and negotiable meant it could be 'passed on' to another person who could 'claim the money'. So today it means a written paper you can hand to someone else to receive payment.