Bill Of Exchange

Bill of Exchange Meaning:

Section 5 of the Negotiable Instrument Act,1889, defines a bill of exchange as " 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, to the order of a certain person, or to the bearer of the instrument". 

Essentials of Bill of Exchange:

1. Date

2. The Period of Currency

3. The Parties

4. The Amount

5. The Stamp

6. The Acceptance