TeachMeFinance.com - explain Bill of Exchange
bill of exchange -- instructions from one party to a second party to pay a third party following the completion of an assignment.
Bill of Exchange -- Draft or Bill.
Bill of exchange -- A written order or request from one
person to another for the payment of money to a third, the
amount to be charged to the drawer (issuer) of the bill.
There is practically no difference between a bill of exchange
and a draft. The term bill of exchange, however, is commonly
applied to an order for money payable in a foreign country,
whereas the term draft is applied to an order payable within
the country of its origin.
A check dated ahead is usually regarded as a bill of exchange
rather than a check.
It is a common practise to speak of a bill of exchange (draft)
issued by a bank or banker as a check when it is payable at
sight or on demand.
A bill of exchange payable at a future date becomes in fact
a note upon its acceptance by the drawee the one upon whom
it is drawn.
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Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".
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