Bill Of Exchange Format – Hello friends, welcome again, today we are going to share Specimen of bill of exchange. Features of Bill Of Exchange is also given below. Check it out Fast.
Features of Bill of Exchange Format
- A bill must always be in writing.
- A bill is unconditional, i.e., there is no condition attached to it.
- A bill is an order letter. It is drawn by the creditor on the debtor and it is in the form of an order and not a request.
- A bill must be signed by the drawer as well as the drawee.
- A bill is drawn in the form of an order to pay a fixed sum of money.
- A bill is payable to the person specified therein, or to the order of the specified person or to the bearer as the case may be.
- A bill of exchange is payable either on demand or after the expiry of the specified duration.
- A bill of exchange should be properly stamped.
- It is preferable to write “the value in the bill has been received” on the face of the bill , even though it is not required by law.
Parties to the Bill of Exchange
(1) Drawer – He is the seller or creditor entitled to receive money from someone . He writes or draws the bill and is known as drawer . The bill of exchange is signed by the drawer of the bill .
(2) Drawee or Acceptor – He is the purchaser or the debtor on whom the bill is drawn and who is liable to pay the amount mentioned in the bill . He accepts to pay the amount by writing the word ” Accepted on the bill and then signs it . A bill is called a draft before it is accepted .
(3) Payee – The person to whom the payment is to be made is called payee . The drawer himself or a third party may be the payee of the bill . The drawer will be the payee of the bill , if he retains the bill till the date of maturity and receives the payment . The bank may also be the payee of the bill if the bill is discounted from the bank . In case the bill is endorsed by the drawer to a third party , the third party known as endorsee will be the payee of the bill . As such , the drawer himself or the bank or the endorsee may be the payee of the bill .
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