BILL OF EXCHANGE | NEGOTIABLE INSTRUMENT | TYPES OF BILL OF EXCHANGE | NOTING AND PROTEST | CSEB/PSC

Описание: A Bill of Exchange is a formal, written order in trade where the Drawer (seller) instructs the Drawee (buyer) to pay a specific sum to the Payee (seller or third party) on demand or at a future date, acting as a secure, negotiable financial instrument for credit sales, especially in international trade, ensuring payment and managing cash flow. It's a legally binding document requiring signatures, dates, and amounts, formalized under laws like India's Negotiable Instruments Act.

Key Parties Involved

Drawer: The seller/exporter who creates the bill.

Drawee: The buyer/importer who must pay the bill.

Payee: The person or entity who receives the money (can be the Drawer or someone else).

By Payment Terms

Demand Bill (Sight Bill): Payable immediately upon presentation to the drawee.

Usance Bill (Time Bill): Payable after a specified period (e.g., 30, 60, 90 days).
By Geography

Inland Bill: Drawn, payable, and accepted within the same country, governed by local laws.

Foreign Bill: Involves parties in different countries, used in international trade, subject to foreign laws.


By Purpose/Nature

Trade Bill: Arises from a genuine sale of goods or services, representing a commercial debt.

Accommodation Bill: Drawn and accepted for financial help (accommodation) without an underlying trade transaction, essentially a loan.

Supply Bill: A bill from a supplier or contractor to the government for goods/services.

By Documentation

Documentary Bill: Accompanied by essential documents like invoices, bills of lading, etc., proving the transaction.

Clean Bill: Lacks supporting documents, carrying higher risk and interest.





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