Question

When is the bill is said to be honoured? (Answer in one sentence)

Answer 1

A bill of exchange is said to be honored when its acceptor pays the amount of the bill to the holder of the bill on its maturity

Answer 2

An honour of bill means payment of the bill with accordance to the tenor of the bill.

• Bills of exchange are the negotiable instruments containing an order to pay a particular individual a certain amount within a specified period of time. The borrower must submit a bill of exchange when the debtor owes money for goods or services.
• Honour of the bill is an acceptance by a bank for payment of a check or credit card transaction, depending on the amount of money or credit available in relation to the amount of payment.