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Sunday, 10 June 2012

Essentials of a Bill of Exchange

Q.18. What are the essentials of a bill of exchange?
ESSENTIALS OF A BILL OF EXCHANGE

The following are the essentials of a bill of exchange.

i. It must be in writing.
ii. It must be an unconditional order to pay.
iii. It must be signed by the maker.
iv. It must be addressed by one person to another.
v. It must be written for some certain sum of money.
vi. It must be payable on demand.

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