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Question
What Is the Bill of Exchange With Example?
What Is the Bill of Exchange With Example?
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Solution
According to the Negotiable Instruments Act 1881, a bill of exchange is defined as “an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of a certain person or to the bearer of the instrument”.
Example: Demand bill – It is a type of bill of exchange which becomes payable when it is demanded. These types of bills do not have a fixed date of payment and are required to be paid whenever it is presented.
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According to the Negotiable Instruments Act 1881, a bill of exchange is defined as “an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of a certain person or to the bearer of the instrument”.
Example: Demand bill – It is a type of bill of exchange which becomes payable when it is demanded. These types of bills do not have a fixed date of payment and are required to be paid whenever it is presented.
Also read:
Learn about more questions and answers on business studies and various other commerce topics from our website.
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