(a) Bills of Exchange:- A bill of exchange is defined as an unconditional order demand by one person or firm upon another requiring him to pay a stated sum of money on a fixed or determinate future date. It also called draft or draught. 

It can also be defined as a short-term negotiable financial instrument consisting of an order in writing addressed by one person (the seller of goods) to another (the buyer) requiring the latter to pay on demand (a sight draft) or at a fixed or determinable future time (a time draft) a certain sum of money to a specified person or to the bearer of the bill.

The bill of exchange originated as a method of settling accounts in international trade.

Bills of exchange are sometimes called drafts, but that term usually applies to domestic transactions only. The term bill of exchange may also be applied more broadly to other instruments of foreign exchange, including cable and mail transfers, traveler

Meaning of a Bills of Exchange

Essentials of Bills of Exchange

Advantages and disadvantages of using Bills of Exchange

An example of a bill