《国际商贸》英语Chapter 5 Bills of Exchange.ppt

Bill of Exchange Introduction Definition and Essentials Acts of a Bill of Exchange Chapter 5 Introduction In practice, sellers of goods, in general, almost never stand upon their rights to demand cash, but readily take certain substitutes, such as bills of exchange. Bills of exchange are frequently used in the finance of export trade. In order to achieve a better comprehension of this, this chapter will be devoted to the further explanation of bills of exchange in detail. 5.1 Definition and Essentials Definition of a bill of exchange ： A bill of exchange is formally defined as an unconditional order in writing, addressed by one party to another, sighed by 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, or to the bearer. A bill of exchange can also be called a draft or a bill. 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 Essentials to a bill of exchange 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 Acts of Bill of Exchange The acts of a bill of exchange refer to the legal acts carried out to bear the obligations to a draft. The main act of which is to issue. In broad sense, the acts also include presentment, payment, payment for honor, dishonor, protest and the exercise of right recourse. Issue To issue a draft comprises two acts to be performed by the drawer. One is to draw a draft and sign it; the other is to deliver it to the payee. Endorsement Endorsement is made on the back of a bill of exchange. It is an act of negotiation. Four Kinds of Endorsement 1.Special Endorsement 2. Blank Endors