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    Bill of Exchange

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    rahula_chary
    A bill of exchange has 3 parties: the drawer, drawee, and payee. The drawer orders payment from the drawee to the payee. A bill can be inland or foreign depending on where it is drawn and paid. Hundi is the traditional Indian version of a bill of exchange.

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    Bill of Exchange

    Uploaded by

    rahula_chary
    36 views1 page
    A bill of exchange has 3 parties: the drawer, drawee, and payee. The drawer orders payment from the drawee to the payee. A bill can be inland or foreign depending on where it is drawn and paid. Hundi is the traditional Indian version of a bill of exchange.

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    A bill of exchange has 3 parties: the drawer, drawee, and payee. The drawer orders payment from the drawee to the payee. A bill can be inland or foreign depending on where it is drawn and paid. Hundi is the traditional Indian version of a bill of exchange.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    36 views1 page

    Bill of Exchange

    Uploaded by

    rahula_chary
    A bill of exchange has 3 parties: the drawer, drawee, and payee. The drawer orders payment from the drawee to the payee. A bill can be inland or foreign depending on where it is drawn and paid. Hundi is the traditional Indian version of a bill of exchange.

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    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
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    www.gktoday.

    in
    Bill of Exchange
    2011-04-23 03:04:40 GKToday

    There are 3 parties in the bill of Exchange.


    BEO is a written negotiable Instrument which contains an unconditional order which is

    1. 2. 3. 4.

    Signed by the Maker Directs a certain person to pay Certain sum of Money only to Certain person or the bearer.

    The parties are Drawer, Drawee and Payee. Drawer: The person who orders to pay Drawee: The person who is directed to pay Payee: The person who is authorized to obtain a payment Please note that A minor can be a Drawer but not a Drawee because he can not incur liability. Once the Drawee accepts the BOE, he becomes acceptor. Inland Bill & Foreign Bill A bill that is drawn in India and paid in India or out of India to a person, who is in India, whether Indian or Foreigner, is Inland Bill. Simply, a bill drawn in India and paid in India is a Inland Bill. A bill which is NOT drawn in India but is payable in India to a person, who is in India and is Indian or a foreigner is a Foreign Bill. Hundi: Hundi is the Desi version of a bill of Exchange. They are used conventionally, not stamped and a vernacular language is written on them. They are still in use and are governed by local practices only. Darshani Hundi is akin to a Demand Promissory Note Miadi Hundi is akin to a Usance Promissory Note Khoka is also a Hundi which refers to a bill of exchange that has been paid and canceled. BOE , as per the NI act are charged at the rate of 18% per annum interest.

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