2007-03-17 19:24:34 · 6 answers · asked by thirumal s 1 in Business & Finance ➔ Other - Business & Finance
A bill of exchange is a financial instrument to settle dues between parties and is capable of being transferred just by passing on its possession with or without endorsement, as the case may be depending upon its original character. In India, it is governed mainly under the provisions of Negotiable Instruments Act. In its age old traditional form, it is also referred to "Hundi".
2007-03-17 20:48:03 · answer #1 · answered by helpaneed 7 · 1⤊ 0⤋
Bills Of Exchange Definition
2016-11-08 05:08:08 · answer #2 · answered by lauramore 4 · 0⤊ 0⤋
The Indian negotiable instrument act, 1881 defines a bill of exchange as an instrument in writing, an unconditional order signed by the maker directing to pay a certain sum of money only to or to the order of a certain person or to the bearer of the instrument.
A very large number of business transactions are done on credit basis. Bill of exchange is a written undertaking from the buyer (debtor) to get the payment after a fixed period.
All the terms and conditions relating to the sale such as date of payment, place of payment etc are mentioned in the bill.
The parties involved are drawer, drawee and payee.
2007-03-20 01:20:05 · answer #3 · answered by Ria 2 · 0⤊ 0⤋
The bill of exchange is a written order by the drawer to the drawee to pay money to the payee. It is a type of negotiable instrument.
The most common type of bill of exchange is the cheque, which is a bill of exchange drawn on a banker. Bills of exchange are used primarily in international trade, and are written orders by one person to his bank to pay the bearer a specific sum on a specific date sometime in the future. Prior to the advent of paper currency, they were a more significant part of trade.
A bill of exchange involves three parties :
1. drawer - the one who issues the document, and through which he invites the drawee to pay.
2. drawee - who has to pay the sum of money at the due date; he must have a liabilty towards the drawer
3. beneficiary - to whom the drawee has to pay. The beneficiary can be the drawer himself or a third party to whom he might owe money
A promissory note is the second major class of negotiable instruments
2007-03-20 00:29:29 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Exchange of money by way of draft, chequest and transfer of money through this way of billing is termed as bill of exchange in Banking Industry.
2007-03-20 20:45:52 · answer #5 · answered by sr50kandala 3 · 0⤊ 0⤋
a promisery note that contains willingness to pay for there dues as per indian promisery regulatry act
2007-03-17 21:30:30 · answer #6 · answered by krrishna_nk 1 · 0⤊ 0⤋