Negotiable instruments used in business transactions, including promissory notes, drafts, and checks that represent promises or orders to pay money. These documents are governed by the Uniform Commercial Code and can be transferred to third parties.
From Latin 'commercium' (trade) and 'papyrus' (writing material). The concept developed in medieval Italian banking to facilitate long-distance trade, allowing merchants to avoid carrying cash by using written promises to pay that could be transferred between parties.
Try Another Word