In the law of negotiable instruments, there is some confusion as to the
relationship between value and negotiation. The absence of an exchange may in the
common law systems constitute a defense to the enforceability of the instrument, but
should be unrelated to the question of whether or not it has been negotiated. Only
in the U.S. system, however, is this distinction made. There, value is a question that
arises in regard to whether the person to whom the instrument has been negotiated
is entitled to a protected status. What constitutes value is a matter of some interest
in comparing the U.K. and U.S. system.
U.S. negotiable instruments law distinguishes between “consideration” and
“value,” concluding that an executory promise is good consideration, but not “value”