Q.What is meant by 'negotiation by mere delivery'? Give an example.

Negotiation by mere delivery is the simpler of the two negotiation modes under Section 47, used exclusively for bearer instruments.

Section 47 provides that a promissory note, bill of exchange, or cheque payable to BEARER is negotiated by mere delivery — the transferor simply hands the instrument to the transferee, with the intention of transferring ownership in it, and no signature or endorsement is required at all. This is the simpler of the two negotiation modes (the other being negotiation by endorsement and delivery, Section 48, used for order instruments). …

A common error is assuming ALL negotiable instruments can be negotiated by mere delivery. This mode applies ONLY to bearer instruments; an order instrument always needs BOTH endorsement …