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Bill Of Exchange And Promissory Note Kinds Of Bills- Negotiable Instruments Act, 1881
Business Environment and Law-The Negotiable Instruments Act, 1881
Bill Of Exchange And Promissory Note Kinds Of Bills- Negotiable Instruments Act, 1881
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Bill Of Exchange And Promissory Note Kinds Of Bills- Negotiable Instruments Act, 1881
Bill Of Exchange And
Promissory Note Kinds Of Bills
Inland Bill: “a promissory note, bill of
exchange or cheque drawn or made in
India and payable in or drawn upon any person resident in India”. (Section 11).
Foreign Bills: According to Section 12, a
foreign bill is negotiable instrument
which is noted as an inland instrument.
Trade and Accommodation Bills: A trade
bill is a bill of exchange issued in
respect of a genuine trade transaction. Such bills are drawn by the seller on
the buyer in respect of payment of the price of the goods sold and purchased.
Time Bills (Usance Bills): Time
bills, also called as usance bills, are
bills payable at a fixed period after date or sight of the bills.
Demands Bills: A bill of exchange or a
promissory note is payable on demand
when –
1. It is made payable ‘on demand’or ‘at sight’or‘on presentation’ (Section 21)
2. No time for payment is mentioned therein (Section
19)
Clean and Documentary Bill: Where the
banker is instructed to deliver to
the drawee of the bill, the documents of title against acceptance of the bill,
the bill is called as Documents against Acceptance of Bill (D/A Bill) and where the documents are to be released only against
payment, it is called as Documents against Payment of Bill (D/P Bill).
Tags : Business Environment and Law-The Negotiable Instruments Act, 1881
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