Bills of Exchange
An unconditional order to pay a fixed sum on demand or at a future date.
Detailed Description
Bills of Exchange
What is a Bill of Exchange?
A Bill of Exchange is a written, unconditional order directing one party to pay a fixed sum of money to another party on demand or at a predetermined date.
Who are the main parties involved in a Bill of Exchange?
The main parties are the drawer, drawee, payee, and possibly an endorser.
What are the types of Bills of Exchange?
Types include Sight Bill, Time Bill, Clean Bill, Documentary Bill, and Promissory Note.
What are the advantages of using Bills of Exchange?
Advantages include flexibility, security, liquidity, and facilitation of trade.
How do Bills of Exchange differ from promissory notes?
A promissory note is a promise to pay, while a Bill of Exchange is an order to pay.