Question

What are bills of exchange? Give an example.

Answer 1

A bill of exchange is a genuine use of a written legal document that is acknowledged by the individual coordinated to pay the sum. For instance, A orders B to pay 5,00,000 rupees for 30 days after the due date, and B acknowledges this request by signing his name, then, at that point, it will be a bill of exchange.

Also see:

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