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of <h1>Understanding Negotiable Instruments: Section 13 of the Negotiable Instruments Act, 1881 Defines Promissory Notes, Bills, and Cheques</h1> A negotiable instrument, as defined under Section 13 of the Negotiable Instruments Act, 1881, includes promissory notes, bills of exchange, and cheques that are payable to order or bearer. An instrument is payable to order if it specifies a payee without prohibiting transfer, and payable to bearer if it is expressed as such or has a blank indorsement. Even if an instrument specifies payment to a person without mentioning 'order,' it can be paid to them or their order. Additionally, a negotiable instrument may be payable to multiple payees jointly or alternatively.
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