Contract Glossary
Bearer
Definition
The person who physically holds a document — like a check, bond, or promissory note — that's payable to whoever has it, rather than to a named person. If a check says 'pay to bearer,' anyone holding that check can cash it.
In Practice
Bearer instruments are less common than they used to be (they're a security risk for obvious reasons), but you'll still encounter them in some financial agreements and international transactions. Bearer bonds were once popular because they offered anonymity — no name on the bond, no questions asked. Most countries have phased them out due to money laundering concerns.
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Frequently asked questions about bearer
A financial document (check, bond, or note) that belongs to whoever physically holds it. There's no named owner — possession equals ownership. It's like cash in document form. If you lose a bearer instrument, whoever finds it can potentially cash it.
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Create your contractThis content is for informational purposes only and does not constitute legal advice. For contracts with significant financial or legal implications, review by a qualified attorney is recommended.