Friday , 31 October 2014

How many parties are involved in Bill of Exchange?

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How many parties are involved in Bill of Exchange?

A three-party negotiable instrument in which the first party, the drawer, presents an order for the payment of a sum certain on a second party, the drawee, for payment to a third party, the payee, on demand or at a fixed future date.

A bill of exchange is distinguishable from a promissory note, since it does not contain a promise and the drawer does not expressly pledge to pay it. It is similar to a note, however, since it is payable either on demand or at a specific time.

The terms bill of exchange and draft are synonymous; however, the former is generally used in International Law, whereas the latter is used in the Uniform Commercial Code.

Source: http://legal-dictionary.thefreedictionary.com/bill+of+exchange

Or

Following parties are involved in the Bill of Exchange like:

  • Drawee, is the party to whom the bill of exchange is addressed
  • Drawer, is the party who issues the bill
  • Acceptor, is the party to whom a bill of exchange is addressed
  • Endorser
  • Payee

Source: http://www.blurtit.com/q805070.html

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