Listen to a Business English Dialogue About Negotiable instrument
Bradley: Hey Riley, have you heard of a negotiable instrument in business and finance?
Riley: Yes, I think it’s a document that represents a promise to pay a specific amount of money to the holder.
Bradley: That’s right. Negotiable instruments include checks, promissory notes, and bills of exchange, which can be transferred from one party to another.
Riley: Can you explain how negotiable instruments are used in business transactions?
Bradley: Sure, negotiable instruments facilitate the transfer of money or payment between parties, providing a convenient and secure method of conducting transactions.
Riley: Are there any legal requirements for a document to be considered a negotiable instrument?
Bradley: Yes, negotiable instruments must meet certain criteria outlined in the Uniform Commercial Code, such as being payable on demand or at a specific time, and being transferable to another party.
Riley: What happens if a negotiable instrument is lost or stolen?
Bradley: If a negotiable instrument is lost or stolen, the rightful owner can take legal action to recover the value of the instrument or prevent it from being cashed by someone else.
Riley: Can negotiable instruments be used internationally?
Bradley: Yes, negotiable instruments can be used internationally, although specific laws and regulations may vary between countries.
Riley: How do negotiable instruments differ from non-negotiable instruments?
Bradley: Negotiable instruments can be transferred from one party to another, while non-negotiable instruments cannot be transferred and are typically used for informational or record-keeping purposes.
Riley: Thanks for explaining, Bradley. Negotiable instruments seem like an important tool for facilitating business transactions.
Bradley: Absolutely, Riley. They provide flexibility and security in financial transactions, benefiting both businesses and individuals alike.