REG Business Law · Updated November 2026
What Makes an Instrument Negotiable?
Negotiability is a checklist. Test the required elements before moving to holder-in-due-course rules.
Written and signed
The instrument must satisfy applicable writing and signature requirements.
Unconditional promise or order
The payment obligation generally cannot depend on unrelated conditions.
Fixed amount of money
The principal obligation must involve a fixed amount of money, although applicable interest provisions can be permitted.
Order, bearer, and timing
The instrument generally must be payable to order or bearer and due on demand or at a definite time, subject to applicable exceptions.
The takeaway
A document is negotiable only when the statutory requirements are satisfied. Looking like a check or note is not enough.
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FAQ
Can a conditional promise be negotiable?
Generally no.
Can a negotiable instrument include interest?
Yes under applicable rules.
Is every contract a negotiable instrument?
No.