NI act Law
Bill of Exchange
A written, unconditional order by one party directing another to pay a specified sum of money to a third party or the bearer, on demand or at a future date.
A bill of exchange is a negotiable instrument commonly used in trade finance, involving three parties — the drawer (who creates it), the drawee (who is directed to pay), and the payee (who receives payment) — and can be transferred to others before it matures.
Dishonour of a bill of exchange can, similar to a cheque, expose the party responsible for payment to legal consequences.
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