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3 Boe
3 Boe
A bill of exchange is an instrument in writing containing an unconditional order signed by the maker
directing a certain sum of money to a certain person or the bearer.
1. Drawer :-
The person who is giving the order in a bill about the payment is called drawer.
2. Drawee :-
Drawee is the person on whom the bill is drawn or whom the order is a addressed.
3. Payee :-
He is a person to whom the money is to be paid.
4. Holder :-
The holder of the bill of exchange or cheque means the payee.
1. In Writing :-
A bill of exchange must be in writing. It can not be oral. But no any a particular language is prescribed by
the law.
2. An Order :-
A bill of exchange should be framed in such a manner that it may not be treated as a request. It should
be an order.
3. Unconditional :-
The order to pay must be unconditional. If the payment is conditional then it would be not a bill of
exchange.
4. Signature of the Maker :-
It must be signed by the maker. A bill is not valued unless it is signed by the drawer.
6. Time Period :-
The sum of money should be payable on demand at a fixed date or on some future date.
9. Acceptance :-
It requires acceptance if it is not a sight bill.
Time Bill :-
A bill or ordering payment after a period of time specified on it is called time bill.
Documentary Bill :-
If the bill is fully supported by documents for payments is called documentary or secured bill.
Clean Bill :-
If no security is provided with the bill, it is called clean bill.