Question

Features of bills of exchange

Answer 1

Answer

The Features of Bills of Exchange are :-

• It is a Written order.
• It is Drawn and signed by the maker and drawer of the bill.
• It is supplied to a person named drawee, the drawee should be accept it to make a valuable document.
• The Specified amount is payable to the person named in the bill or to his order to the bearer.

                                                                                                               

Answer 2

futures of bill of exchange:

1. It must be drawn on a particular date.
2. it must be in writing.
3. there are three parties to a bills of exchange - the drawer, the drawer, and the payee.
4. it must be signed by the maker (drawer).
5. it must be accepted by the drawee (a bill payable on demand is not required to be accepted).
6. it must be an unconditional order to pay.
7. the maker (drawer) must direct a person to pay a certain sum of money.
8. it arises generally out of credit sales or loans.
9. IT helps temporary settlement of a debt between a debtor and creditor without involving cash.
10. it must be properly stamped, based on its value.