Not all orders are negotiable - i. e., capable of passing from one person to another. A simple order, "pay to X," would not be negotiable, for such an order must be paid to X and to X alone. It is seldom that such a bill is issued. Usually bills are made in such a way that one person can transfer his rights to another person. That is one reason why they are so important in the business world. There are certain qualities or requisites which a bill or draft must contain to be negotiable. These are as follows:

(1) It must be in writing and signed by the drawer.

(2) It must contain an unconditional order to pay a sum certain in money.

(3) It must be payable on demand or at a fixed or determinable future time.

(4) It must be payable to order or to bearer.

(5) The drawee must be named or otherwise indicated with reasonable certainty.