Question

What makes a bill of exchange negotiable?

Answer 1

A bill of exchange is a written document that clearly states the amount of money due by a ‘drawee’ to the ‘drawer’ on a specific date. A bill of exchange makes it negotiable because of the parties involved, the set date, grace period, and the specific amount due for the goods and services sold.

Also see:

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