Page 133 - eBook: EXIM for Beginner
P. 133
Bill of Exchange
What is Bill of Exchange?
• According to the Negotiable Instruments Act 1881, ‘a bill of
exchange is defined as an instrument in writing containing an
unconditional order, signed by the maker, directing a certain
person to pay a certain sum of money only to, or to the order
of a certain person or to the bearer of the instrument.’
• Bill of exchange means a bill drawn by a person directing
another person to pay the specified sum of money to
another person. ...
• For example, X orders Y to pay ₹ 50,000 for 90 days after
date and Y accepts this order by signing his name, then it will
be a bill of exchange.
