i want brief conclusion on bills of exchange
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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 the bearer".
You should keep in mind the following points to understand the definition:
The person who writes out the order to pay is called the drawer.
The person upon whom the bill of exchange is drawn (who is ordered to pay) is called the drawee.
The drawee may "accept" the bill. This is a special use of the word accept because it means that he accepts to pay the amount payable expressed in the bill, i.e. if he accepts the obligation to pay he writes "accepted" across the face of the bill and signs it. From that time on he is know as the "acceptor" of the bill and has absolute liability to honor the bill on the due date.
The amount of money must be mentioned clearly. For example, I cannot make out a bill requiring someone to pay the value of my car or house. That is an uncertain sum. It must say "five thousand dollars or ten thousand dollars" etc.
The time must be fixed or at least be determinable. For example, "sixty days after date" is quite easily determinable. If the bill is made out on first July, it will be 29th august.
The person who is entitled to receive the money from the acceptor is called the "payee". It is usually the drawer who is supplying goods to the value of the bill, and wants to be paid for them. If the drawer decides, the bill can be made payable to someone else by endorsing it. That is why the definition says, to pay..... to, or the the order of, a specified person.
A bill can be made payable to a bearer, but it is risky, since any finder of the bill or any thief, can claim the money from the acceptor.
You should keep in mind the following points to understand the definition:
The person who writes out the order to pay is called the drawer.
The person upon whom the bill of exchange is drawn (who is ordered to pay) is called the drawee.
The drawee may "accept" the bill. This is a special use of the word accept because it means that he accepts to pay the amount payable expressed in the bill, i.e. if he accepts the obligation to pay he writes "accepted" across the face of the bill and signs it. From that time on he is know as the "acceptor" of the bill and has absolute liability to honor the bill on the due date.
The amount of money must be mentioned clearly. For example, I cannot make out a bill requiring someone to pay the value of my car or house. That is an uncertain sum. It must say "five thousand dollars or ten thousand dollars" etc.
The time must be fixed or at least be determinable. For example, "sixty days after date" is quite easily determinable. If the bill is made out on first July, it will be 29th august.
The person who is entitled to receive the money from the acceptor is called the "payee". It is usually the drawer who is supplying goods to the value of the bill, and wants to be paid for them. If the drawer decides, the bill can be made payable to someone else by endorsing it. That is why the definition says, to pay..... to, or the the order of, a specified person.
A bill can be made payable to a bearer, but it is risky, since any finder of the bill or any thief, can claim the money from the acceptor.
doremoon:
thnks a lot
welcome bro
can u plzz give the answer of 1 more question
ya but i need more pointa bro
if i feel that ur answer is acurate then only i will mark ur answer as a brainlist
ok bht points
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3
This is one of the negotiable instruments..it is a written draftbor an unconditional order signed by the maker directing a certain person to pay a certain sum of money to the bearer of the instrument.
thnks
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