Question

What are the Need and importance of bills of exchange? I want point wise answer.

Answer 1

HEY DIVINA....✔

U R ANSWER.....

♣ IMPORTANCE OF BILL OF EXCHANGE =

1→ A BILL OF EXCHANGE MUST BE IN WRITING IT CANNOT BE ORAL.

2→ IT MUST BE, DATED & STAMPED

3→ IT MUST BE SIGN BY THE MAKER

4→ THE NAME OF THE DRAWER MUST BE CLEARLY MENTIONED.

5→ THE ORDER MUST BE AN UNCONDITIONAL

6→ IT MUST CLEARLY SPECIFY WHEN PAYMENT IS TO BE MADE

7→ IT MUST BE ACCEPTED BY DRAWEE.

8→ THE AMOUNT SHOULD BE PAID INTO THE STIPULATED TIME.

♣ NEED OF BILL OF EXCHANGE

1→ IN THE BILL OF EXCHANGE THE DEBTOR GIVES ACKNOWLEDGEMENT OF THE DEBTS , WHICH AUTOMATICALLY CREATES EVIDENCE OF THE DEBTS

2→ THE SELLER OR CREDITOR IS RELIVED FROM THE TENSION OR RISK OF RECOVERY OF THE AMOUNT OF DEBTS.

3→ THE SELLER OR CREDITOR COMES TO KNOW THE RECEIVING THE PAYMENT OF THE BILL.

4→ IT IS VALUABLE DOCUMENTS , WHICH CAN BE DISCOUNTED WITH THE BANK TO RAISED NEEDED FINANCE.

5→ IT CAN BE USED OR ENDORSED BY ITS OWNER IN SETTLEMENT OF THE DEBTS OWED BY HIM.


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