Bill of Exchange

A bill of exchange is an unconditional order in writing, addressed by one person to another, signed by the person giving it requesting the person to whom it is addressed to pay on demand or at a fixed or determinable future time a sum certain in money to or to the order of a specified person, or to bearer.

There are many kinds of bill of exchange by the function.

a.             Commercial Draft, drawn by enterprises;

b.            Bank Draft, drawn by bank;

c.             Clean Draft, the draft without shipping documents;

d.            Documentary Draft, the draft with stipulated documents;

e.             Sight Draft, payable on demand;

f.             Time Draft, negotiated some days later after presenting;

g.            Period Draft, negotiated at a fixed date;

h.            Domestic Draft, circulating in the domestic;

                  i.       Foreign Bill of Exchange, the places of drawing draft and payment being different