Bill of exchange (BOE),
Definition of Bill of exchange (BOE):
A written, unconditional order by one party (the drawer) to another (the drawee) to pay a certain sum, either immediately (a sight bill) or on a fixed date (a term bill), for payment of goods and/or services received. The drawee accepts the bill by signing it, thus converting it into a post-dated check and a binding contract.
A bill of exchange is also called a draft but, while all drafts are negotiable instruments, only to order bills of exchange can be negotiated. According to the 1930 Convention Providing A Uniform Law For Bills of Exchange and Promissory Notes held in Geneva (also called Geneva Convention) a bill of exchange contains: (1) The term bill of exchange inserted in the body of the instrument and expressed in the language employed in drawing up the instrument. (2) An unconditional order to pay a determinate sum of money. (3) The name of the person who is to pay (drawee). (4) A statement of the time of payment. (5) A statement of the place where payment is to be made. (6) The name of the person to whom or to whose order payment is to be made. (7) A statement of the date and of the place where the bill is issued. (8) The signature of the person who issues the bill (drawer). A bill of exchange is the most often used form of payment in local and international trade, and has a long history- as long as that of writing.
A written order to a person requiring them to make a specified payment to the signatory or to a named payee; a promissory note.
Synonyms of Bill of exchange (BOE)
Cheque, Order, Bankers order, Money order, Bill of exchange, Postal order
How to use Bill of exchange (BOE) in a sentence?
- You need to know what the bill of exchange says and make sure you are giving up everything that you must.
- The bill of exchange was made juvt to make sure everything got paid and by a certain time to keep thing in order.
- The salesman was relieved to finally get the bill of exchange signed, after working many long weeks to arrange the new deal.
- Included are the traditional bills of exchange, cheques, promissory notes, bonds, and share warrants, as well as share certificates, money transfer orders, and deposit receipts.
Meaning of Bill of exchange (BOE) & Bill of exchange (BOE) Definition