BILL OF EXCHANGE:
A bill of exchange is often used to protect the transaction. It is a binding agreement between buyer and seller where the buyer agrees to pay a fixed sum of cash at a predetermined date or upon demand from the seller.
A bill of exchange is a credit instrument.
It is a written acknowledgement of a debt given by one person to another
It is drawn by creditor upon his debtor.
It directs the debtor to pay a certain sum of money on demand or on the of a certain period.
According to section 5 of the Indian Negotiable instruments Act of 1881, a bill of exchange is an instrument in writing, containing an unconditional order signed by the maker, directing a certain person to pay a certain sum of money, only to or to the order of a certain person, or to the bearer of the instrument.
