You are here: > > Bill Of Exchange Sample

Bill Of Exchange Sample

Administrator by Administrator   |   5 Comments  |   23483 Views    |   3.9/5 Rating   |   Print this Article Print This Article
834 articles online.
Apr 12th, 2011
Send to friend

Bill of Exchange
A bill of exchange is playing an important part in the commercial life of the country. The need for it arises where the buyer Purchase goods needs a period of credit before paying it. It is drawn by the creditor and is accepted by the debtor.

According to F.W. Muller, a bill of exchange is an unconditional order in writing addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time, a sum certain in money to or to the order of a certain person or to bearer.

Features or Characteristics of the bill.
The main characteristics or features of a bill of exchange are as follow.

(1) A bill of exchange must be in writing.
(2) It must contain an order to pay.
(3) The order to pay must be unconditional. If it is subject to the happening of some events it will not be a bill of exchange.
(4) It must be signed by the drawer and properly stamped.
(5) The parties to the bill the drawer, the drawee and payee must be certain and definite individuals.
(6) The amount payable must be certain.
(7) The payment must be made in money and not in kind.
(8) The bill payable may be either on demand or after a specified period.
(9) The bill may be payable either to the bearer or to the order of payee.

Parties to the bill
According to the definition, there are three parties involved to a bill of exchange.

(i) Drawer. The drawer is the person who draws the bill. He is the person who orders to pay a certain sum of money. (In the specimen of bill of exchange given below Mr. Hamid Zafar is the drawer of the bill).
(ii) Drawee. He is the person on whom the bill is drawn. He is the person who is ordered to make the payment of the bill. (In the specimen of the bill. Mr. Rashid Ahmad is the drawee).
(iii) Payee. He is the person to whom the money is directed to be paid. He gets the payment of the bill. (In the specimen of a bill, Mr. Kamal Akmal is the payee of the bill).

Specimen of a bill of exchange

Article Source:

Add New Comment

  • 1. Michael Kors Outlet Online
    nice articles michael kors outlet online
    (12:16 pm, 2014.03.03)
  • 2. Louboutins Pas Cher
    thank you for share! louboutins pas cher
    (2:19 am, 2013.07.17)
  • 3. Gucci Outlet
    nice articles gucci outlet
    (3:49 am, 2013.07.16)
  • 4. Imran
    i want tokow tht what document use but dnt kow it is bil of exchange
    (1:36 pm, 2012.01.21)
  • 5. Funmi Kuforiji
    Dear sir am an exporter from Nigeria.How should a bill of exchange be draft,Under the payment term cash against document.Who should be the drawer,drawee and the payee.Is it better for my bank to be the drawer or myself,would it be better if the drawee is the importer or his bank and the payee would it be better if its me or my bank.Thank you funmi kuforiji
    (1:21 pm, 2011.08.09)
Latest Business Articles
  • Plastic packaging manufacturers

    Uflex Ltd. is one of the largest Plastic Packaging Manufacturers. Uflex offers Flexible plastic packaging and sustainable packaging solutions most innovative and eco friendly way More >>

  • Luxury furniture show home opening soon in chislehurst

    If you are passionate about decorating your home with the most unique and stylish furniture, Ebony & Ivory Interiors is your one stop luxury furniture shop. Order online or visit the beautiful show home that opens on the 11th October for all your home furnishing needs. More >>

  • They say cleanliness is next to godliness

    They say cleanliness is next to Godliness. Who does not want to have God by their side always? But for that, cleanliness is required and we make God come by your side always. We are the Professional Fabric Protection Charlotte NC company who have been into various kinds of cleaning. More >>

  • The best of wood floor furniture refinishing

    It must have been quiet a time now that you gave any treatment to your floors for long. All during this while you were busy in soeem or the other thing wwhen you came across somebody telling you that your hone has lost the lustre that it had years ago. More >>

  • The new era of muscle cars

    Muscle cars are the new genre of rides for the car lovers now. These rides give an all new meaning to driving experience. More >>

More from Administrator
  • Objectives of business

    Objectives of Business means the purpose for which the business is established. It is generally believed that the main objective of business is ta make profit and avoid loss. More >>

  • Barter system

    Barter System - Barter System is that system in which goods are exchanged for goods - Barter System More >>

  • Functions of money

    Functions of Money - Functions of Money as a Medium of Exchange, Measure of Value, Deferred Payment, Store of Value - Functions of Money More >>

  • Importance of business in the present day world

    The importance of business is that it provides products or services to customers. More >>

  • Kinds of partners

    The partners of a firm are broadly divided into three main categories. General Partners, Special Partners and Other Partners. More >>