brief answer on AIMS AND OBJECTIVES OF BILLS OF EXCHANGE
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In the Commonwealth of Nations almost all jurisdictions have codified the law relating to negotiable instruments in a Bills of Exchange Act, e.g. Bills of Exchange Act 1882 in the UK, Bills of Exchange Act 1908 in New Zealand, Bills of Exchange Act 1909 in Australia,[1] the Negotiable Instruments Act, 1881 in India and the Bills of Exchange Act 1914 in Mauritius. The Bills of Exchange Act:
defines a bill of exchange as: '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 specified person, or to bearer.defines a cheque as: 'a bill of exchange drawn on (behalf of) a banker, which is payable on demand (by banker)'defines a promissory note as: 'an unconditional promise in writing made by one person to another, signed by the maker, engaging to pay on demand, or at a fixed or determinable future time, a sum certain in money to or to the order of a specified person or to bearer.'
Additionally most Commonwealth jurisdictions have separate Cheques Acts providing for additional protections for bankers collecting unendorsed or irregularly endorsed cheques, providing that cheques that are crossed and marked 'not negotiable' or similar are not transferable, and providing for electronic presentation of cheques in inter-bank cheque clearing systems.
History
Common prototypes of bills of exchanges and promissory notes originated in China, where special instruments called feitsyan were used to safely transfer money over long distances during the reign of the Tang Dynasty in the 8th century.[2]
In the mid-13th century, the Ilkhanid rulers of Persia printed the "cha" or "chap" which was used as paper money for limited usage for transactions between the court and the merchants for about three years before it collapsed. The collapse was caused by the court accepting the "cha" only at progressive discount.
Later, such documents were used for money transfer by Middle Eastern merchants, who had used the prototypes of bills of exchange – suftadja/softa from the 8th century to present. Such prototypes came to be used later by the Iberian and Italian merchants in the 12th century. In Italy in the 13–15th centuries, bills of exchange and promissory notes obtained their main features, while further phases of their development have been associated with France (16–18th centuries, where the endorsement had appeared) and Germany (19th century, formalization of Exchange Law). The first mention of the use of bills of exchange in English statutes dates from 1381, under Richard II; the statute mandates the use of such instruments in England, and prohibits the future export of gold and silver specie, in any form, to settle foreign commercial transactions.[3] English exchange law was different than continental European law because of different legal systems; the English system was adopted later in the United States.[4]
The modern emphasis on negotiability may also be traced to Lord Mansfield.[5] Germanic Lombards documents may also have some elements of negotiability.[6]
Distinguished from other types of contracts
An contract, thus satisfying any applicable statute of frauds as to that contract.
own name. Negotiation can be effected by endorsement and delivery (order instruments), or by deli
defines a bill of exchange as: '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 specified person, or to bearer.defines a cheque as: 'a bill of exchange drawn on (behalf of) a banker, which is payable on demand (by banker)'defines a promissory note as: 'an unconditional promise in writing made by one person to another, signed by the maker, engaging to pay on demand, or at a fixed or determinable future time, a sum certain in money to or to the order of a specified person or to bearer.'
Additionally most Commonwealth jurisdictions have separate Cheques Acts providing for additional protections for bankers collecting unendorsed or irregularly endorsed cheques, providing that cheques that are crossed and marked 'not negotiable' or similar are not transferable, and providing for electronic presentation of cheques in inter-bank cheque clearing systems.
History
Common prototypes of bills of exchanges and promissory notes originated in China, where special instruments called feitsyan were used to safely transfer money over long distances during the reign of the Tang Dynasty in the 8th century.[2]
In the mid-13th century, the Ilkhanid rulers of Persia printed the "cha" or "chap" which was used as paper money for limited usage for transactions between the court and the merchants for about three years before it collapsed. The collapse was caused by the court accepting the "cha" only at progressive discount.
Later, such documents were used for money transfer by Middle Eastern merchants, who had used the prototypes of bills of exchange – suftadja/softa from the 8th century to present. Such prototypes came to be used later by the Iberian and Italian merchants in the 12th century. In Italy in the 13–15th centuries, bills of exchange and promissory notes obtained their main features, while further phases of their development have been associated with France (16–18th centuries, where the endorsement had appeared) and Germany (19th century, formalization of Exchange Law). The first mention of the use of bills of exchange in English statutes dates from 1381, under Richard II; the statute mandates the use of such instruments in England, and prohibits the future export of gold and silver specie, in any form, to settle foreign commercial transactions.[3] English exchange law was different than continental European law because of different legal systems; the English system was adopted later in the United States.[4]
The modern emphasis on negotiability may also be traced to Lord Mansfield.[5] Germanic Lombards documents may also have some elements of negotiability.[6]
Distinguished from other types of contracts
An contract, thus satisfying any applicable statute of frauds as to that contract.
own name. Negotiation can be effected by endorsement and delivery (order instruments), or by deli
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A bill of exchange is an unconditional inscribed order that
Endeavors at obtaining a self pay another person or the beneficiary of the instrument the money stat-ed. The bill is legitimate only if the person executing it approves the bill by signing over it.
The following are the objectives:
1. Confer the credit for business legally by executing mortgages on
Proposed accepted dates.
2. Give the merchant with banking by transferring their shares to a bank.
3. Allow the merchant to have a legal right on both the customer and dealer.
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