Define bill of exchange and its essential elements
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Bills of exchange refers to that instrument in writting contain an unconditional order signed by the maker ,directing a certain person to pay a certain sum of money only to a certain person .
Essential elements of bills of exchange is:
Parties to a bill of exchange- Drawer,Drawee ,Payee.
-bills of exchange is written order
-it is drawn and signed by the maker
-it specifies the date by which the amount should be paid .
-it is accepted by the drawee.
-Drawer the person who makes or writes the bill of exchange .
-Drawee the person on whom the bill of exchange is drawn for his acceptance .
-Payee the person named in the bill of exchange to whom the amount is to be paid .
Bills of exchange refers to that instrument in writting contain an unconditional order signed by the maker ,directing a certain person to pay a certain sum of money only to a certain person .
Essential elements of bills of exchange is:
Parties to a bill of exchange- Drawer,Drawee ,Payee.
-bills of exchange is written order
-it is drawn and signed by the maker
-it specifies the date by which the amount should be paid .
-it is accepted by the drawee.
-Drawer the person who makes or writes the bill of exchange .
-Drawee the person on whom the bill of exchange is drawn for his acceptance .
-Payee the person named in the bill of exchange to whom the amount is to be paid .
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