Negotiation, *merc. law. The act by which a bill of exchange or promissory note is put into circulation by being passed by one of the original parties to another person.
2. Until an accommodation bill or note has been negotiated, there is no contract which can be enforced on the note: the contract, either express or implied, that the party accommodated will indemnify the other, is, till then, conditional. 2 Man. & Gr. 911.
* From Bouvier's Law Dictionary, 1856 Edition. Please see Bouvier's Legal Abbreviations & Abbreviated References for help with obscure nomenclature & references.
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Negotiation Defined & Explained