1. Bills Of Exchange

2. Introduction

3. 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”

4. Types Of Negotiable Instrument
Recognized By Statute
Bills Of Exchange
Promissory Notes
Cheques
Recognized By Usage Or Custom
Hundis
Share Warrants
Dividend Warrants
Bearer Debentures

5. 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”

6. 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

7. Parts Of A Bill Of Exchange
Date
Term
Amount
Stamp
Parties

8. Special features A Bill Of Exchange is an instrument in writing
It must be signed by the maker
It contains an unconditional order
The order must be to pay money and money only
The sum payable must be specific
The amount must be paid within a stipulated time
The name of the drawee must be clearly mentioned
It must be dated and stamped

9. 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

10. 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

11. 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

12. Advantages of Bill of Exchange
A Bill of Exchange is used in settlement of debts
It fixes the date of payment
It is a written and signed acknowledgement of debt
A debtor enjoys full period of credit
A drawer can convert the bill into cash by getting it discounted with the bank

13. Kinds of Bills Of Exchange
Inland Bill
Foreign Bill

14. Kinds of Bills Of Exchange
Accommodation Bills
Trade Bills

15. Kinds of Bills Of Exchange
Demand Bill
Time Bill

16. Thank You