INTRODUCTION OF BILLS OF EXCHANGE [INDIAN NEGOTIABLE INSTRUMENT ACT, 1881]:-

 Definition of bills of exchange: According to Indian Negotiable Act, 1881 under section 5,"A bill of exchange is an instrument in writing, an unconditional order signed by the maker, directing to pay a certain amount to a certain person or to bearer of instrument".

Characteristics/Features of Bills Of Exchange:-

• It is a written document or instrument.

• It must be signed by the maker(drawer).

• It must be signed by acceptor(drawee).

• The amount of bills of exchange must be specified.

• The date of payment of bill of exchange also specified.

Parties to a Bill Of Exchange:-

There are three parties involved in bill of exchange:

1- Drawer: A person who sold the goods or draw a bill upon others, is known as drawer ok the bill.

2- Drawee: A person who purchase the goods or accept the bill drawn by others, is known as drawee of the bill 

3- Payee: A person who gets the amount of the bill is known as payee. The drawer himself or a third party may be the payee of the bill.

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