What is a bill of exchange?

Definition of bill of exchange.

The term bill of exchange has been defined under Section 5 of the Negotiable Instruments Act.  A "bill of exchange" is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of a certain person or to the bearer of the instrument.

The parties to a bill of exchange are

1. The maker of a bill of exchange or Cheque is called the Drawer.
2. The person thereby direct to pay is called the Drawee.
3. The Payee to whom the payment is to be made is called the payee.
4. The Endorsee to whom the bill is negotiated.
5. One who accepts the bill generally the drawee is the acceptor but a stranger may accept it on behalf of the drawee is called acceptor.
6. Holder who endorses the bill in favour of any other person is called endorser.
7. Person in whose favour the bill is endorsed by the endorser is called endorsee. 
   General Crossing and Special Crossing in cheques
   

    What is a promissory note? What are the essentials of Promissory Notes

    What is a bill of exchange?

    Essentials of a bill of exchange

    Characteristic of a Bill of Exchange

    The procedure for transfer a bill of exchange-

    Difference between a promissory note and a bill of exchange.

    Dishonour of cheques
   

   ==============================================================================

   This site is mainly dedicated for Students of Law Schools, Law Universities, Students of Higher Education in Law, Admission in Law Schools, Scholars in Law, Students of Bar-at-Law, Law admission information, College of Law, Law Notes, Law Training, Law Tuition,  Law Study Guidelines, Business Law, Students of ACCA, CIMA, CFA,CA,ICWA,CPA, MBA,CMA