How many days grace period is given for payment of a bill of exchange?

3

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7

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4

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Solution

The correct option is A $3$
According to the Negotiable Instruments Act, 1181, 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. The term maturity refers to the date on which a bill of exchange or promissory note becomes due for payment. In arriving at maturity date, three days, known as days of grace, must be added to the date on which the period of credit expires.

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Similar questions

In case of a bill of exchange, the drawee is entitled to have three days for making payment of the bill but in case of a _____________ is always payable on demand.

Q. While calculating the due date of the bill, days of grace are added to the period of the bill.

Q. Prepare a specimen of a Bill of Exchange from the following information:
(1) Drawee - M.P. Shinde,
Siddharth Nagar,
Panchgani.
(2) Drwer - M.M. Shaikh,
Satara Road,
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(3) Period of bill - 90 days
(4) Amount of bill - Rs. 12,800
(5) Date of bill -

10^{t h}

March, 2013
(6) Date of acceptance -

14^{t h}

March, 2013

While calculating the due date of the bill, how many days are added to the period of the bill :

Bill of exchange is a document for payment to be received from the exporter.

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