Summary

1. Bill of exchange as an instrument. A bill of exchange is a device by which the debtor

in a credit transaction need not pay immediately, but satisfies the creditor by accepting in

writing the liability to pay the amount due on an agreed date.

2. Meaning of a bill of exchange and a promissory note. A bill of exchange is an

acknowledgement of debt, incorporating the terms and conditions of payment; a promissory note

is a written undertaking by the debtor to pay the creditor a certain sum on stated terms.

3. Difference between a bill and a note. A bill is prepared by the creditor and accepted

by the debtor (three parties, acceptance required); a note is prepared by the debtor himself

(two parties, no acceptance required).

4. Features and advantages of a bill. A bill is a written, unconditional order, signed by …