Negotiation

As defined in section 30, negotiation is the transfer of a negotiable instrument from one person to
another made in such a manner as to constitute the transferee the holder thereof, this phrase is very
material to me as I study law 113, the negotiable instruments. It is obvious from the title of the subject
itself; negotiable instrument, that it deals with negotiation but as the phase of our discussion runs
normally I learned the reasons why negotiation is the main idea of negotiable instrument, and I think
that negotiation is one of the most important topics in law 133.

The topic about negotiation is so fascinating to me because it is only through negotiation which
constitutes the transferee to be the holder of the instrument. I learned that negotiation differs if the
instrument is payable to bearer or order. If the instrument is payable to bearer the mere delivery of the
instrument constitute the transferee to be the holder of the instrument, while if the instrument is
payable to order the instrument is transferred not just by mere delivery but also with indorsement. The
presence of indorsement for the completion of negotiation had open up my mind and learned an
additional knowledge, because as I first read or encounter the word indorsement all I thought that it has
the same meaning with the word endorsement, that we usually saw on the televisions, etc, but those
thoughts are proven to be wrong when the law says indorsements it only means that to transfer the title
or holder of the instrument one must write the name of the payee.

Another topic which is connected to negotiation is the characteristics of a negotiable instrument which
are the negotiability and the accumulation of secondary contracts. I believe that because of the concept
of negotiability the characteristics of the negotiable instrument take place.

There are so many sections or topics that are connected to negotiability which made it appear so
interesting for me. Personally, I think that if we understand very well section 30 which is about
negotiation we are not just learning about one section under the law of negotiable instrument but we
are also learning the major part of the negotiable instruments.

Obviously, I can surely say that the idea of negotiation is very essential for the existence of negotiable
instrument. My conclusion about learning negotiable instrument is that, in order for us to understand it
deeper we must of course understand its root which is the concept of negotiation.

This time, I can say that of all the topics and section that was discussed in our class, the topic that I can
hardly forget, which I gave up my interest in is the negotiation, because this topic contain a wide range
of knowledge that a student must learned in order to understand the main idea of the negotiable
instrument, it corrected my misconceptions about other topics, and of course because of negotiation it
helped me to understand the major part of the negotiable instrument and it taught me a lot of things
that a student must learned about this subject.