Bill
of exchange is an unconditional order in writing drawn by one person on
another, signed by the accepter that show the acceptor should pay on demand or
in future time a certain sum of money to specified person or to the bearer.
A written, unconditional order by one party (the drawer) to another (the drawee) to pay a certain add, either immediately (a sight bill) or on a fixed date (a term bill), for payment of goods and/or services received. The payer accepts the bill by signing it, therefore converting it into a post-dated check and a binding contract.
A bill of exchange is also called a draft however, while all drafts area unit negotiable instruments, only "to order" bills of exchange can be negotiated. according to the 1930 Convention Providing a uniform Law For Bills of Exchange and promissory Notes control in Geneva (also called Geneva Convention) a bill of exchange contains: (1) The term bill of exchange inserted in the body of the instrument and expressed in the language employed in drawing up the instrument. (2) an unconditional order to pay a determinate sum of money. (3) The name of the person who is to pay (drawee). (4) a statement of the time of payment. (5) a statement of the place where payment is to be made. (6) The name of the person to whom or to whose order payment is to be made. (7) a statement of the date and of the place where the bill is issued. (8) The signature of the person who issues the bill (drawer). A bill of exchange is that the most often used form of payment in local and international trade, and has a long history- as long as that of writing.
A bill of exchange is also called a draft however, while all drafts area unit negotiable instruments, only "to order" bills of exchange can be negotiated. according to the 1930 Convention Providing a uniform Law For Bills of Exchange and promissory Notes control in Geneva (also called Geneva Convention) a bill of exchange contains: (1) The term bill of exchange inserted in the body of the instrument and expressed in the language employed in drawing up the instrument. (2) an unconditional order to pay a determinate sum of money. (3) The name of the person who is to pay (drawee). (4) a statement of the time of payment. (5) a statement of the place where payment is to be made. (6) The name of the person to whom or to whose order payment is to be made. (7) a statement of the date and of the place where the bill is issued. (8) The signature of the person who issues the bill (drawer). A bill of exchange is that the most often used form of payment in local and international trade, and has a long history- as long as that of writing.
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