Bill of Exchange

A Bill of Exchange is a written order that demands one party to pay a fixed amount of money to another party at a predetermined date.

What is Bill of Exchange ?
A Bill of Exchange is a written order mainly used in international trade, where one party requires another party to pay a fixed amount of money at a set date. This bill often includes three parties, the drawee that pays the sum, the payee that receives the sum and the drawer that instructs the drawee to pay the payee. If a bank issues the bill of exchange, it can be referred to as a bank draft.