Question

S a resident of Sydney draw a bill of exchange of $Rs.5000$ upon Y payable in Tokyo. This is a __________.

• A. Inland bill
• B. Inchoate bill
• C. Foreign bill
• D. Accommodation bill

Answer 1

The correct option is C Foreign bill

A bill which is not an inland bill, is deemed to be a foreign bill.

Example: A bill of exchange drawn in India, on a person residing outside India and made payable outside India.

A bill drawn outside India and made payable in India.

A bill drawn outside India, on a person residing in India.

S, a resident of Sydney draws a bill of exchange of Rs. 5,000 upon Y payable in Tokyo is an example of foreign bill.