Investor Words defines Bills of Exchange as an unconditional order issued by a person or business which directs the recipient to pay a fixed sum of money to a third party at a future date. The future date may be either fixed or negotiable. A bill of exchange must be in writing, signed and dated. It is also called a draft.
The bills of exchange provide a method for the provision of credit, i.e. a loan. But it is more than that. The Bill is negotiable during its life and it can be passed by one person to another as a medium of exchange, effectively serving the purpose of money.
Apart from this, at each stage that the Bill is passed on, the person who sells it guarantees the buyer against default on the loan. Thus, a bill of exchange is a kind of check or promissory note without interest and it is used primarily in international trade. If the bill of exchange is drawn on a bank, it is called a bank draft. If it is drawn on another party, it is called a trade draft.
There are three parties involved in the bills of exchange - the drawer, the drawee and the beneficiary. A drawer is a person who makes or issues the bill of exchange and facilitates the drawee to pay the bill. A drawee is the person who promises to pay the money on a certain specific date.
In Britain, a bill of exchange is defined by the Bills of Exchange Act 1882 as an unconditional order in writing addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a certain sum in money to or to the order of a specified person, or to the bearer.
It is very much possible that you have the bills of exchange and for some or the other reason, your bills of exchange get bound, it is indeed a situation of great difficulty. Easylawyers - solicitors law firm, can help you out overcome this problem regarding cancelled cheque, returned cheque, stopped cheque, unpaid cheque clearance. Easylawyers charges 50% Bounced (dishonoured) cheque of £5,000 and below. Whereas, the fees for bounced (dishonoured) cheque of between £5,001 and above are negotiated under Conditional Fee Agreement.
Hope you can get exact idea about Bills of Exchange.
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