Question

Is Bank guarantee a bill of exchange?

Answer 1

No, a bank guarantee is not a type of bill of exchange. It is a guarantee that assures that the liabilities of a debtor are going to be paid by the bank in case the debtor is unable to pay the debts.

Also read:

• Bill of Exchange
• Difference Between Bill of Exchange and Promissory Note
• MCQs on Bills of Exchange

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