Lawgist47Negotiation by delivery
Subject to the provisions of section 58, a promissory note, bill of exchange or cheque payable to bearer is negotiable by delivery thereof.
Exception.-- A promissory note, bill of exchange or cheque delivered on condition that it is not to take effect except in a certain event is not negotiable (except in the hands of a holder for value without notice of the condition) unless such event happens.
Illustrations
(a) A, the holder of a negotiable instrument payable to bearer, delivers it to B's agent to keep for B. The instrument has been negotiated.
(b) A, the holder of a negotiable instrument payable to bearer, which is in the hands of A's banker, who is at the time the banker of B, directs the banker to transfer the instrument to B's credit in the banker's account with B. The banker does so, and accordingly now possesses the instrument as B's agent. The instrument has been negotiated, and B has become the holder of it.
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- 46 Delivery
- 47 Negotiation by delivery
- 48 Negotiation by indorsement
- 49 Conversion of indorsement in blank into indorsement in full
- 50 Effect of indorsement
- 51 Who may negotiate
- 52 Indorser who excludes his own liability or makes it conditional
- 53 Holder deriving title from holder in due course
- 54 Instrument indorsed in blank
- 55 Conversion of indorsement in blank into indorsement in full
- 56 Indorsement for part of sum due
- 57 Legal representative cannot by delivery only negotiate instrument indorsed by deceased
- 58 Instrument obtained by unlawful means or for unlawful consideration
- 59 Instrument acquired after dishonour or when overdue
- 60 Instrument negotiable till payment or satisfaction
