A nonnegotiable instrument is a financial document that cannot be transferred or assigned to another party. Unlike negotiable instruments, nonnegotiable instruments are not easily transferable and often carry a specific notation indicating their non-negotiability.
A promissory note is a negotiable instrument that contains a written promise to pay a specified sum of money to a named person, their order, or the bearer at a predetermined future date. It must be unconditional, signed by the maker, and delivered to the payee or bearer.
