Negotiable instrument definition clarifies payability to order or bearer and rules on endorsement, transferability, and multiple payees. A negotiable instrument is a promissory note, bill of exchange or cheque payable to order or to bearer; 'payable to order' requires expression to a particular person without words prohibiting transfer, while 'payable to bearer' follows from bearer expression or a sole/last indorsement in blank. An instrument payable to the order of a specified person is payable to him or his order at his option. Instruments may be payable jointly or alternatively to multiple payees.