Bill of Exchange
/ˈbɪl əv ɪksˈtʃeɪndʒ/
Definitions
- (n.) A written, unconditional order by one party (drawer) directing another (drawee) to pay a fixed sum to a third party (payee) at a specified future date or on demand.
The company issued a bill of exchange to secure payment from its client.
Forms
- bills of exchange
Related terms
See also
Commentary
Bills of exchange are fundamental negotiable instruments in commercial law, distinct from promissory notes by involving three parties and an order rather than a promise.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.