Essentials of a bill of exchange

Essentials of a bill of exchange

In order that an instrument may be called a bill of exchange it should satisfy the following conditions-

1. It must be in writing.

2. It must contain an unconditional order to pay.

3. It must be signed by the drawer.

4. There must be three parties to the instrument and the parties must be certain.

5. The order must be to pay a certain sum of money.

6. The instrument must contain an order to pay money and money only.

7. It must comply with the formalities as regards date, consideration, stamp etc.

A bill of exchange like a promissory note may be written in any language. It may be written in any form of words provided the requirements of the section are complied with.
General Crossing and Special Crossing in cheques

 What is a promissory note? What are the essentials of Promissory Notes

 What is a bill of exchange?

 Essentials of a bill of exchange

 Characteristic of a Bill of Exchange

 The procedure for transfer a bill of exchange-

 Difference between a promissory note and a bill of exchange.

 Dishonour of cheques

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