Negotiable instruments have replaced the instruments of collection which existed under the law merchant.

Question

Quizplus · Accepted Answer

Negotiable instruments have not replaced instruments of collection but rather coexist with them, serving as a formalized means of payment and transfer of funds that is recognized and governed by law, whereas instruments of collection (such as bills of exchange) are still used in international trade and finance.

Negotiable Instruments Have Replaced the Instruments of Collection Which Existed