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Legal Terms - Bill of Exchange
An unconditional written order, signed by the person giving it, addressed from one person (the drawer) to another (the drawee), requiring the drawee to pay a specified amount of money to the bearer or to the payee on demand or at a predetermined future time. The drawee indicates his *acceptance, making him the party principally accountable upon the bill if it is payable at a later date; the drawer and endorsers may also be liable upon a bill. One person can transfer an enforceable right to a certain amount of money to another by using bills of exchange. Not only is a bill of exchange transferable, but it can also be negotiated since, in due course, the *holder who receives the bill from the person without an enforceable right to the money gains good title to it. The Bills of Exchange Act of 1882 and the Cheques Act of 1992 codify a significant portion of the law pertaining to bills of exchange.
An unconditional written order, signed by the person giving it, addressed from one person (the drawer) to another (the drawee), requiring the drawee to pay a specified amount of money to the bearer or to the payee on demand or at a predetermined future time. The drawee indicates his *acceptance, making him the party principally accountable upon the bill if it is payable at a later date; the drawer and endorsers may also be liable upon a bill. One person can transfer an enforceable right to a certain amount of money to another by using bills of exchange. Not only is a bill of exchange transferable, but it can also be negotiated since, in due course, the *holder who receives the bill from the person without an enforceable right to the money gains good title to it. The Bills of Exchange Act of 1882 and the Cheques Act of 1992 codify a significant portion of the law pertaining to bills of exchange.
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