Question

What Are the Advantages of Bill of Exchange?

Answer 1

The following are the advantages of the bill of exchange:

1. It is a legal document and in case the drawee fails to pay the amount, then the drawer can take legal action against the drawee and get the amount.
2. The bill of exchange can be discounted at nominal rates from a third party in cases where the drawer is in urgent need of money.
3. The bill of exchange can be exchanged among individuals for settling of the debt.

Also read:

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

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