A negotiable instrument is a promise by one party to pay a undefined sum of money to another party. There are two parties: the maker and the payee. While the amount to be paid may vary, the date of payment must be set at a specific time in the future.

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A negotiable instrument involves a fixed sum of money, not an undefined sum, and can involve more than two parties, such as the drawer, drawee, and payee.

A Negotiable Instrument Is a Promise by One Party to Pay