What is a bill of exchange?

It is an instrument written or oral, containing an unconditional undertaking signed by the maker to pay certain sum of money to the bearer.

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It is an instrument in writing containing a conditional undertaking signed by the maker to pay certain sum of money to the bearer.

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It is an instrument in writing containing an unconditional undertaking signed by the maker to pay certain sum of money to the bearer.

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It is an instrument in writing containing an unconditional order signed by the maker to pay certain sum of money to the bearer

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Solution

The correct option is D It is an instrument in writing containing an unconditional order signed by the maker to pay certain sum of money to the bearer
Bill of Exchange can be understood as a written negotiable instrument, that carries an unconditional order to pay a specified sum of money to a designated person or the holder of the instrument, as directed in the instrument by the maker. The bill of exchange is either payable on demand, or after a specified term.

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