What do you understand by bill of exchange?

Question

What do you understand by bill of exchange?

Answer 1

Often referred to as a ‘draft’ or ‘bill’, this is a document demanding payment. The legal definition of a Bill of Exchange is an unconditional order in writing addressed by one person (the drawer) to another (the drawee), signed by the person giving it (the drawer) requiring the person to whom it is addressed (the drawee, who when he signs becomes the acceptor) 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 the bearer (the payee).