A bill of exchange must contain "an unconditional promise to pay." Do you agree with a statement?
A bill of exchange must contain "an unconditional promise to pay." Do you agree with a statement?
A bill of exchange is a formal document. According to Section 5 of the Indian Negotiable Instrument Act, "A bill of exchange is 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."
Thus, Bill of Exchange is an unconditional order, given by the maker of the instrument to other person asking him to pay a certain sum of money to him or his order or to the bearer of the document. In this way, we can say that bill of exchange is drawn by the creditor upon a debtor who instructs him to pay a certain sum of money either on demand or on the expiry of the certain period. From the above definition and discussion, it is clear that a bill of exchange does not contain an unconditional promise to pay rather it contains an unconditional order to pay.
A bill of exchange is a formal document. According to Section 5 of the Indian Negotiable Instrument Act, "A bill of exchange is 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."
Thus, Bill of Exchange is an unconditional order, given by the maker of the instrument to other person asking him to pay a certain sum of money to him or his order or to the bearer of the document. In this way, we can say that bill of exchange is drawn by the creditor upon a debtor who instructs him to pay a certain sum of money either on demand or on the expiry of the certain period. From the above definition and discussion, it is clear that a bill of exchange does not contain an unconditional promise to pay rather it contains an unconditional order to pay.
