Bill of Exchange | Definition, Types & Examples
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Bill of Exchange | Definition, Types & Examples
4K viewsJun 13, 2017
Study.comDOUGLAS HAWKS
💰 WHAT IS A BILL OF EXCHANGE? 💰 A Bill of Exchange is not just a “bill” — it’s a negotiable instrument under UCC Article 3 that functions as an order to pay. It’s a three-party contract between: 1️⃣ The Drawer – the one who creates and signs the bill. 2️⃣ The Drawee – the one who is ordered to pay (usually a bank or government entity). 3️⃣ The Payee – the one who receives the value. In essence, a Bill of Exchange is a promise backed by your signature — it’s how commerce moves through trust and
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