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BILL OF EXCHANGE
What is a Bill of Exchange as defined under the Negotiable Instruments Act, 1881?
A Bill of Exchange is an unconditional order in writing, signed by the maker (drawer), directing a certain person (drawee) to pay a specified sum of money to or to the order of a certain person (payee) on demand or at a fixed future date.
What is the maximum validity period of a Bill of Exchange?
A bill can be drawn for any period agreed by parties.
Who are the three parties typically involved in a Bill of Exchange?
The three parties are the Drawer (who draws and signs the bill), the Drawee (who is ordered to pay and becomes the Acceptor upon acceptance), and the Payee (who receives the payment).
Who is the 'drawee' in a Bill of Exchange?
The person on whom the bill is drawn and who must pay.
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