Question
Define bill and state its characteristics.
✓
Answer
Meaning: A bill of exchange is an instrument in writing containing an unconditionalorder, signed by the drawer, directing a certain person to pay a certain sum of moneyonly at a specified time to a certain person or according to his order or to the holder ofthe instrument. Characteristics of a bills of Exchange: $(1)$ A bill must be in writing. $(2)$ The order made in the bill must be unconditional. This order should not in the form ofrequest. $(3)$ The bill must be addressed to a specific person. $(4)$ In a bill, the bill acceptor and amount receiver both are seperate persons. Therefore,their names must be clear and both should be specific persons. $(5)$ The order must only be for the payment of Indian money, not for a product or considerationof money. $(6)$ The amount shown in the bill must be clear and definite. $(7)$ The duration and date of the bill must be definite. $(8)$ Revenue stamp of the prescribed amount must be affixed on the bill depending on theamount of the bill, the bill must contain the signature of the person who is writing thebill. $(9)$ The bill becomes operative only after it is accepted by the person to whom it is drawn.
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