Question

What is meant by renewal of a bill of exchange?

Answer 1

Answer:

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Answer 2

Renewal of a bill of exchange

Explanation:

• The Drawee/acceptor has to make payments to Drawer/maker in Bills of Exchange within that specified time period. But sometimes when they can not pay on the due date for the bill then he/she can ask the drawer to extend the credit period.
• If the drawer accepts then the drawer will cancel the old bill and draw a fresh bill for the lengthy period agreed by the acceptor. Canceling the old bill and drawing a fresh bill for an extended period of time is called Renewal of Bill of Exchange.