Question

areena draw a bill of exchange on Sadiya which is payable after 90 days the holder Ayeshsa kept the bill of exchange with her for 70 and then presented for acceptance before Sadiya Sadiya in the meanwhile become insolvent ayesha sues Areena for payment will she succeed give your opinion​

Answer 1

Explanation:

A bill of exchange is a documented agreement binding one party to pay a fixed sum of amount agreed. So it is kind of an assurity to the other person that in case of some problem, this amount will have to be paid at least. However the bill of exchange comes in effect when the withdrawer agrees or signs the document.

In given case, when Ayesha drew a bill of exchange she kept it with her and didn't get the document signed by Sadiya and so this agreement is actually not a legit one so Ayesha cant claim her money based on this