Advantages of Negotiable Instruments
(i) A negotiable instrument provides a creditor regarding a better remedy, since once it has been issued like or accepted whether applicable it settles the amount about the debt owing and makes a legal remedy like easier to obtain than would have been such the case under an ordinary contract. Moreover example like such there is no need to such for explain the terms of the contract but creates the debt so.(ii) A negotiable instrument may be like discounted. Anyone who like holds the instrument so, and thus is entitled to claim the money at due date, that like can discount it through taking it to a bank or discounting house. Conversely the bank will in many cases, such be willing to such for take the instrument off the holder's hands, like and to pay him the agreed value and then collect the money whether as due.(iii) A negotiable instrument can like be negotiated. Anybody who such holds a negotiable instrument, that a bill of exchange, like can transfer it to a creditor in such like payment and the payee could, he chose, utilized it in this manner to just when settle his debt with such another party.