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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, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a certain sum of money to or to the order of a specified person, or to the bearer.
What is the maximum number of days of grace allowed on a Bill of Exchange in India?
Three days of grace are allowed under NI Act.
Who are the three parties involved in a Bill of Exchange?
The three parties are the Drawer (who draws the bill and is the creditor), the Drawee (who is ordered to pay and is the debtor), and the Payee (who receives the payment, which may be the drawer himself or a third party).
Who is the 'Payee' in a Bill of Exchange?
Person to whom payment is directed or ordered.
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