Business Studies, asked by nikithamira7152, 1 year ago

Define bill of exchange and its essential elements

Answers

Answered by Anonymous
2
Heya user ! here ur answer.

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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