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Three major types of Negotiable Instruments
The three major forms of a negotiable instrument discussed under the Negotiable Instruments Act of 1881 are: Promissory Note, Bill of Exchange and Cheque.

What is Promissory Note?
A “promissory note” is in an instrument in writing, containing an unconditional undertaking signed by the maker, to pay on demand or at a fixed or determinable future time] a certain sum of money only to, or to the order of a certain person, or to the bearer of the instrument.

For example; A signed instrument in the following terms: “I promise to pay B or order Rs. 500.” This will form a promissory note.

What is Bill of Exchange?
A “bill of exchange” is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay on demand or at a fixed or determinable future time, a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument.

What is a Cheque?
A “cheque” is a bill of exchange drawn on a specified banker and not expressed payable otherwise than on demand.