Question

Aims and objectivesof bill of exchange 12th std

Answer 1

Bill of Exchange is a rather vast and complex topic that requires strong foundations on financial instruments in order to be able to comprehend the concept. Before we go ahead discussing this, let us get introduced to negotiable instruments.

Negotiable instruments are legally recognized documents that guarantee the payment of a specific amount of money to the person whose name is specified on the instrument. This payment can either be made on demand or on a set time.

The Indian law recognizes 3 types of negotiable instruments:

Promissory note
Bill of Exchange
Cheques
We will now discuss one of the negotiable instrument – Bill of Exchange