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Words of Ne Gotiability Examples of


WORDS OF NE GOTIABILITY EXAMPLES OF. At first it was the inclination of the courts to be strict in regard to words expressing negotiability, and an early case held that a paper payable to a person or bearer was not negotiable. (Hodges v. Steward, i Salk., 125.) But it is now well settled that such an instrument is negotiable, and that no special or exact form of words is required to indicate the negotiability of the paper. (Tiedeman, Com. Paper, Sec. 22.) The expression, payable "to the order of A. B." is con sidered of the same effect as "to A. B., or order." (Smith v. McClure, 5 East, 476; Durgin v. Bartol, 64 Me., 473.) But a note payable "to the bearer A." is held non-negotiable. (Warren v. Scott, 32 Ia., 22.) It is held that while the words "order" or "bearer" are convenient and expressive terms to indicate negotiability, they are not the only words that are sufficient to give the paper this transfer able quality, and instruments payable to a person or holder, or assigns, and the like, have been held negotiable