The legal strength of Bill of Exchange in International Trade. What is Bill of Exchange in International Trade.

The legal strength of Bill of Exchange in International Trade. What is Bill of Exchange in International Trade.

 The information provided here is part of Online export import training guide 


Bill of Exchange is a negotiable instrument binds to pay by one party to another party on a predetermined future date. In Indian trade, Bill of Exchange is defined as “an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to or to order of, a certain person or to the bearer of the instrument.”

While sending shipping documents to the buyer through his bank, the exporter enclose Bill of Exchange duly signed. While delivering shipping documents to the buyer by buyer’s bank, the said Bill of exchange is needed to be signed by buyer accepting the terms and conditions mentioned in the document to effect the payment as per the stipulated period.

As per my opinion, the international legal strength of Bill of exchange at the present scenario to be discussed on the assurance on export proceeds to the seller. Let me have your comments.


The above information is a part of Import Export course online

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