Q.What are the characteristics of a Bill of Exchange ? (any 3)

A bill of exchange is a written, unconditional order signed by the drawer directing the drawee to pay a certain sum to a certain person; it needs acceptance and involves three parties.

A bill of exchange is a negotiable instrument defined under the Negotiable Instruments Act, 1881, studied in the Tamil Nadu HSC Class-12 Commerce syllabus. Its main characteristics (any three required) are set out below.

Characteristics of a bill of exchange:

• In writing: a bill of exchange must always be in writing; an oral order to pay is not a bill.
• Unconditional order: it must contain an order (not a mere request) to pay, and the order must be unconditional — payment cannot depend on the happening of an event.
• Signed by the drawer: it must be signed by the person who makes it, called the drawer.
• Certain sum of money: the amount payable must be a certain sum of money only. …