NEGOTIATION. The deliberation which takes place between the parties touching a proposed agreement.
That which transpires in the negotiation makes no part of the agreement, unless in troduced into it. It is a general rule that no evidence can be given to add to, dimin ish, contradict, or alter a written instru ment; Leake, Contr. 26; McDermott v. Ins. Co., 3 S. & R. (Pa.) 609. But this rule has been much modified, and parol evidence is now held admissible to contradict, vary, or even avoid a written instrument where it would not have been executed but for the oral stipulation, except in the case of nego tiable paper ; Hoopes v. Beale, 90 Pa. 82. See EVIDENCE.
As to negotiations preceding a contract, See MERGER.
In Mercantile 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.
The transfer of a bill or note in the form and manner prescribed by the law mer chant, with the incidents and privileges an nexed thereby, i. e.:
The transferee can sue all parties to the instrument in his own name; The consideration for the transfer is pri ma facie presumed; The transferor can under certain condi tions give a good title, although he has none himself ; The transferee can further negotiate the bill with the like privileges and incidents.
There are two modes of negotiation, viz.: by delivery and by indorsements. The for mer applies to bills, etc., payable to bearer; the latter to those payable to order. See aialm. Dig. of Bills, etc. § 106; 1 Pars, Notes & B. 14; Byles, Bills 169.
Until an accommodation bill or note has been negotiated, there is no contract which can be enforced on the note; 2 M. & G. 911.