Definition: A bill of exchange is “an unconditional order in writing, addressed by one person to another, signed by the person to whom it is addressed to pay on demand or at a fixed or determinable future time, a sum certain in money to or to the order of a specified person or to the bearer.
Essentials of a Bill
- Bill of exchange must be in writing.
- It must be an order, not a request or promise.
- The order must be unconditional.
- It must be for a specific amount in money, not in barter.
- The bill must be payable to a certain person or his order.
- It must be addressed to a specific person.
- The bill is payable at a certain date or on demand.