Bill of Exchange

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Bill of Exchange
Bill of exchange is another type of Negotiable Instrument. It is also in practice in the business sector. A bill of exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to bearer of the instrument. It is defined
under the section 2(g) of the Nepalese Negotiable Instrument Act, 2034. Section 2(g) defines as "A bill of exchange is an instrument in writing containing an unconditional order, signed by maker, directing a certain person to pay a certain sum of money to, or to the order of a person or to a person or to the bearer of the instrument". On the basis of above definition, there are three parties in the bill of exchange, which are as below:
a. Drawer: The maker of a bill of exchange
b. Drawee: The person, who is directed to pay.
c. Payee: The person who receives the bill of exchange.

 Features of Bill of Exchanges:
The essential features of Bill of Exchanges are as follows:
• The Bill of Exchanges must be in written form.
• It must contain an order to pay.
• The order to pay must be unconditional.
• It must be signed by the Drawer.
• Payable sum must be certain.
• The Bill must contain an order to pay money only.
• There must be three parties.
• It must comply with the formalities as regards date, consideration, stamps etc.
• The money must be payable to a definite person.

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