instrument

An instrument is a legal term for a document that transfers property in an asset or chose in action. Instances of instruments include deeds of conveyance, bills of exchange and contracts.

Bills of exchange and cheques are negotiable instruments, in that the document themselves are transferable to another party for value, in good faith and free from any defect in title. Money on the other hand is negotiable, but it is not an instrument.

Usage: The parties negotiated the transfer of the instrument, being a cheque, at a discount.

Related Words: negotiable instrument; deed; conveyance; contract; chose in action; cheque; performance bond; surety; guarantor; debenture; bond.