lilypadfrog
10:54
Warning
Info
Warning
Info
LSDefine
Simple English definitions for legal terms
negotiable
Read a random definition: bill of credit
A quick definition of negotiable:
Negotiable means that something, like a piece of paper, can be given to someone else by simply handing it over or signing it. This is usually done when someone pays money for it. It also means that a deal or agreement can be made and changed if both parties agree. However, if there are any problems with the item or agreement, it may not be negotiable.
A more thorough explanation:
Definition: Capable of being transferred by delivery or endorsement when the transferee takes the instrument for value, in good faith, and without notice of conflicting title claims or defenses. It can also refer to a deal or agreement that is capable of being accomplished or a price or deal that is subject to further bargaining and possible change.
For example, a check is a negotiable instrument because it can be transferred to another person by endorsement or delivery. If someone endorses a check over to you, you can deposit it into your bank account and receive the funds. However, if the check is stolen or has a forged endorsement, it is no longer negotiable.
Another example of negotiable terms is in a business deal. If two companies are negotiating a contract, they may agree on certain terms that are negotiable, meaning they can be changed or adjusted during the negotiation process. For instance, the price of a product may be negotiable, and the two companies may go back and forth until they reach an agreement that works for both parties.
Overall, negotiable refers to something that can be transferred or changed under certain conditions, such as good faith and without conflicting claims or defenses.