Bills Of Exchange

					Bills Of Exchange
    Introduction

    Negotiable Instrument
   According To Section 13(1) Of The
    Negotiable Instrument Act, 1881,
                    “ A Negotiable
    Instrument Means A Promissory Note,
    Bill Of Exchange Or Cheque Payable
    Either To Order Or To Bearer”
 Types Of Negotiable Instrument
    Recognized By           Recognized By
     Statute                  Usage Or Custom

1.   Bills Of Exchange   1.   Hundis
2.   Promissory Notes    2.   Share Warrants
3.   Cheques             3.   Dividend Warrants
                         4.   Bearer Debentures
      Bills Of Exchange
    According to section 5 of Negotiable
    Instrument Act,
      “A Bill Of Exchange is an instrument
    in writing containing an unconditional
    order, signed by the maker , directing a
    certain person to pay a sum of money only
    to or to the order of a certain person or to
    the bearer of the instrument”
Specimen Of A Bill Of Exchange

                                                          JAMMU

                                                        27th Nov. 2006


Three months after due date, pay XYZ or order, the
Sum of Rs 1000(one thousand only) for value received.      Stamp

To,
      M/S ABC
      Gandhi Nagar
      Jammu
Parts Of A Bill Of Exchange
 Date
 Term

 Amount

 Stamp

 Parties
         Special features
1.   A Bill Of Exchange is an instrument in writing
2.   It must be signed by the maker
3.   It contains an unconditional order
4.   The order must be to pay money and money only
5.   The sum payable must be specific
6.   The amount must be paid within a stipulated time
7.   The name of the drawee must be clearly mentioned
8.   It must be dated and stamped
Parties to a Bill Of Exchange
            Drawer
The person who draws or writes the
Bill Of Exchange is called the Drawer.
The Drawer must be the seller or
creditor to whom the money is owing
              Drawee
   The Drawee is the person on whom
    the bill is drawn. He is the
    purchaser or debtor who is ordered
    by the Drawer to pay the amount
                Payee
   The person who has the right to
    receive the amount of the bill is
    called the Payee, the Payee may be
    a third person or the Drawer
    himself
 Advantages of Bill of Exchange
1.   A Bill of Exchange is used in settlement of
     debts
2.   It fixes the date of payment
3.   It is a written and signed acknowledgement
     of debt
4.   A debtor enjoys full period of credit
5.   A drawer can convert the bill into cash by
     getting it discounted with the bank
Kinds of Bills Of Exchange


   Inland Bill      Foreign Bill
    Kinds of Bills Of Exchange

   Trade Bills      Accommodation
                      Bills
Kinds of Bills Of Exchange


   Demand Bill Time Bill
Thank You

				
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posted:8/13/2011
language:English
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