国际商务英语Chapter 5 Bill of Exchange.pptVIP

Chapter 5 Bill of Exchange Definition A bill of exchange is formally defined as an unconditional order in writing, addressed by one party (drawer) to another (drawee), signed by the party giving it, requiring the party to whom it is addressed to pay on demand, or at a fixed or determinable future time, a sum certain in money, to or to the order of a specified party (payee), or to bearer. A bill of exchange can also be called a draft or a bill. Essentials The word “Exchange” An unconditional order in writing Addressed by one person to another Signed by the person giving it Tenor A sum certain in money Payable to a specified person only or his order or to bearer Other items The date of issue The place of issue The place of payment A banker designated as payer Value received A set of bill Referee in case of need Notice of dishonor excused and protest waived Without recourse Parties and Acts There are three immediate parties to a bill of exchange: the drawer, the drawer and the payee. They are the basic parties to a bill before it is transferred to another party. The drawer : The drawer is the party who draws and signs a draft on the drawee and delivers it to the payee. The drawee: The drawee is the party on whom the bill is drawn and he is the party to honor the bill at the order of the drawer The payee: The payee is the party to receive payment. He is the first creditor to the bill and the first legal owner of the instrument Other Parties Endorser An endorser is a payee or a holder who signs his name on the back of a bill for the purpose of negotiation. Endorsee An endorsee is the party to whom the instrument is transferred. He becomes the new holder to the instrument and is the creditor to the instrument. An endorsee can also become an endorser if he wishes to transfer the instrument to another party by signing his name on its back. Acceptor for honor An acceptor for honor is the person who himself is not a liable party to a bill o