The Negotiable Instruments Act, 1881 governs negotiable instruments like promissory notes, bills of exchange, and cheques. It defines the characteristics and rules for these instruments’ transfer, endorsement, and payment. The Act sets out obligations and liabilities of parties involved and prescribes legal remedies in cases of dishonor or default. It aims to provide a structured framework for conducting commercial transactions, ensuring the negotiability of financial instruments and facilitating trade.