Home | ARTS | Business Environment and Law | 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

   Posted On :  08.05.2018 06:07 am

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
Last 30 days 7 views

OTHER SUGEST TOPIC