Negotiability, as defined under the Uniform Commercial Code, sets specific criteria for instruments to function seamlessly in financial exchanges. First and foremost, the promise or order must be in writing, providing a tangible record. The instrument must bear the signature of the maker or drawer, indicating commitment. It must contain an unconditional promise or order to pay a fixed sum of money, either on demand or at a definite time. The amount should be clear, and the instrument should be payable to a specific person or bearer, ensuring clarity and transferability. Meeting these requirements ensures that negotiable instruments are reliable, standardized, and capable of facilitating smooth financial transactions. They provide a legal framework for creating instruments that can circulate in the market, fostering trust and efficiency in economic exchanges.

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