Bill of Exchange

BILL OF EXCHANGE Section 5 of the Negotiable Instruments Instruments ´A bill of exchange is an instrument in writing containing an unconditional unconditional order, order, signed by the maker, maker, directing a certain person to pay a certain sum of money only to or to the order of, a certain person or to the bearer of the instrument.µ Essentials of a Bill of Exchange Ex change 1.

It must be in wr writing.

2.

It must con contain tain an ord order er to pay ay..

3.

The ord order er to pay must must be unco uncond ndit itio iona nal. l.

4.

It must be sign signed ed by the the dra draw wer. er.

5.

The dra drawe wer, r, draw drawee ee an and d pay payee ee must must be be cert certai ain n

6.

The su sum payable be cer certain.

7.

The dea deall mus mustt con conta tain in an an ord order er to pa pay y mon money ey only only..

8.

It must must comp comply ly wi with th the the form formal alit itie ies s as as reg regar ards ds da date te,, consideration stamps, etc.

Specimen of a Exchange Ex change Rs 1,000

New Delhi, 25 August

1997  Three months months after date pay to C or order the sum of rupees one thousand only, for value received  To

Revenue

A 135 Sadar Bazar Delhi

Sd/-

Stamp B