Willis defines negotiable instruments as, “it is the one the property in which is acquired by every person who takes it bona fide for value, notwithstanding any defect of title in the person from whom he took it”.
In Pakistan Negotiable Instruments Act, 1881 is enforced the introduction chapter of which states that the act only deals with bills of exchange, cheques and promissory notes although the following also fall in the category of negotiable instruments:
Port trust bonds
An instrument carrying “not negotiable” is only transferred as ordinary chattels or chose-in.
Credit instruments are those devices which are used in business for credit transactions.
Credit instruments have the following forms:
- Bill of exchange
- Promissory Note