Question

Renewal is a request by drawee to extend the credit period of the bill. (State True or False)

Answer 1

TRUE...

MEANS CANCEL OLD BILL

AND

ASKING TIME FOR THE BILL

Answer 2

It is true that renewal is a request by drawee or acceptor to extend the credit period of the bill.

Explanation:

• In the case of Bills of exchange, the drawer gave some specified period. The Drawee has to make payments within that time to the Drawer.
• But sometimes drawee is not able to pay for the bill on the due date then he or she may ask the drawer to extend the credit period of the time for paying the bill.