Negotiation by delivery: bearer instruments transfer by delivery, with a conditional delivery exception preserving non negotiability. Bearer promissory notes, bills of exchange and cheques become negotiable by physical delivery, passing possession and holder status, subject to statutory limits. Delivery to an agent or transfer via a banker as agent effects negotiation. A delivery made on condition that the instrument take effect only upon a specified event is not negotiable unless a holder for value acquires it without notice of the condition or the specified event occurs.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Negotiation by delivery: bearer instruments transfer by delivery, with a conditional delivery exception preserving non negotiability.
Bearer promissory notes, bills of exchange and cheques become negotiable by physical delivery, passing possession and holder status, subject to statutory limits. Delivery to an agent or transfer via a banker as agent effects negotiation. A delivery made on condition that the instrument take effect only upon a specified event is not negotiable unless a holder for value acquires it without notice of the condition or the specified event occurs.
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