Question

State any four essential features of bill of exchange

Answer 1

Essential features of bills of exchange are as follows:

1. A bill of exchange is a written order to make payment.

2. It is an unconditional order to make payment by a person i.e. drawee.

3. The amount of bill of exchange and the date of payment are certain.

4. It is signed by the drawer of the bill.

5. It is accepted by the drawee by signing on it.

6. The amount specified in the bill of exchange is payable either on demand or on the expiry of a fixed period.

7. The amount specified in the bill is payable either to a certain person or to his order or to the bearer of the bill.

8. It is stamped as per legal requirements.