Bill of exchange: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>P.F.cowdell@shu.ac.uk m (Categorise the page) |
imported>Doug Williamson m (Added more space to try and make it easier to read due to long sentences) |
||
Line 3: | Line 3: | ||
Bills of exchange are widely used to finance trade and, when discounted with a financial institution, to obtain credit. | Bills of exchange are widely used to finance trade and, when discounted with a financial institution, to obtain credit. | ||
The formal legal definition of a bill of exchange is | |||
The formal legal definition of a bill of exchange is as follows: | |||
An unconditional order in writing addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a certain sum in money to order or to bearer. | |||
Expressing this in less formal language, it is a written order from one party (the drawer) to another (the drawee) to pay a specified sum on demand or on a specified date to the drawer or to a third party specified by the drawer. | Expressing this in less formal language, it is a written order from one party (the drawer) to another (the drawee) to pay a specified sum on demand or on a specified date to the drawer or to a third party specified by the drawer. | ||
== See also == | == See also == | ||
Line 23: | Line 28: | ||
* [[Recourse]] | * [[Recourse]] | ||
[[Category: | [[Category:Corporate_finance]] | ||
[[Category: | [[Category:Long_term_funding]] | ||
[[Category: | [[Category:Long_term_funding]] | ||
[[Category: | [[Category:Trade_finance]] |
Revision as of 16:57, 13 August 2014
(BE).
Bills of exchange are widely used to finance trade and, when discounted with a financial institution, to obtain credit.
The formal legal definition of a bill of exchange is as follows:
An unconditional order in writing addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a certain sum in money to order or to bearer.
Expressing this in less formal language, it is a written order from one party (the drawer) to another (the drawee) to pay a specified sum on demand or on a specified date to the drawer or to a third party specified by the drawer.