This article is related to features of bill of exchange. Likewise, Here we will talk about the features of bill of exchange and what are the various advantages of bill of exchange. Starting with the definition we will provide you complete information about bill of exchange. Moreover, Bill of exchange is one of the important document which makes the process of bill exchange or money exchange very easy.
A bill of change is a mode or a device which is used so that all the debts can be settled. The creditor is the one who prepares the bill. Here creditor is the person who is going to receive the money. Additionally, Creditor prepares a bill of exchange of the debtor and here debtor is the people who are going to give the money.
Or in other words, we can say that it is one of the written order which says to pay a certain sum of money to a respective person. similarly, The thing is that it is a legal document which is used to confirm a debt.
Types of Bill Exchange
- The bill of exchange is based on the type of demand is made! The drawer has to pay the amount which is return in the bill when the bill is made in front of them.
- Bills of exchange it can be paid after a certain amount of time.
- These bills are made so that the transaction can be made after a certain amount of time. Furthermore, This gives a timely date to which the person can pay the bill. This types of bills are termed as term bill.
Due to maturity/ due Date of a bill of Exchange
- This bill defines the date on which bill has to be to be paid. The thing to consider about this bill is that once this bill is made it becomes due as soon as it is presented.
- Form the date which is mentioned on the bill you can add three days of grace on it. Well, this is done as custom.
Bill of exchange at payable at sight
Generally, these types of bills are made when this is a demand made for the bill.
Features of Bills of Exchange
- This is actually an instrument/ device which is made in writing. The amount to be paid is written.
- The thing to understand about features of bill of exchange is that. It has an unconditional order to pay. This simply means that you cannot attach any sort of conditions while you are making the payment.
- However, Under the features of bill of exchange mainly there are three parties which are involved. Drawee, drawer, and payee. The thing to understand is that drawer and payee in general cases both these persons are the same as the work of drawer is to draw the bill in his/ her own favor. In additional, While doing this one thing to remember is that drawer and the drawee both the person cannot be the same.
PARTIES TO BILLS OF EXCHANGE
Drawee is the person on whom we are drawing the bill. Actually, in simple words, the drawee is the person who has the money.
Here the drawer is the person who is going to draw the bill. Actually, in simple words, this is the person who is going to receive the money.
A payee is a person to whom we are talking about. He is the person to whom all the money is payable. This is the reason in most of the situations the drawer of the bill is himself the payee.
- This is very important that the parties which are involved in the bill of exchange must be certain.
- And there should be sign of all the parties for which the bill may concern.
- Here again, this is very important. The amounts to be paid must be certain on the bill.
Advantages of Bill of Exchange
- One of the main and most important advantages and features of bill of exchange is that this is one of the convenient methods which is used for the transfer of debt.
- A creditor has the power to sue on the bill itself.
- The thing to consider about bill of exchange is that it Is an legal document which is evidence of debt.
- By discounting the bill of change can be cashed before due dates.
- The main advantage of bill of exchange of bill is that it affords an ease by means of transmitting money from one place to another place.
- And the end one of the biggest advantages of bill of exchange is that a buyer can easily be included to purchase goods and accept bills drawn on him by the person who is selling. Or simple words using the bill of exchange you can make the payment later if the buyer doesn’t have money to pay at the time of purchase.
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