Define the bill of exchange object

Registered by Jordi Ballester (

This blueprint is intended to handle the specification of the bill of exchange object.

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A bill of exchange or "draft" is a written order by the drawer to the drawee to pay money to the payee. Bills of exchange are written orders by one person to his bank to pay the bearer a specific sum on a specific date.

A bill of exchange is an unconditional order in writing addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at fixed or determinable future time a sum certain in money to order or to bearer.

It is essentially an order made by one person to another to pay money to a third person.

A bill of exchange requires in its inception three parties—the drawer, the drawee, and the payee.

The person who draws the bill is called the drawer. He gives the order to pay money to third party. The party upon whom the bill is drawn is called the drawee. He is the person to whom the bill is addressed and who is ordered to pay. He becomes an acceptor when he indicates his willingness to pay the bill. (Sec.62) The party in whose favor the bill is drawn or is payable is called the payee.

The parties need not all be distinct persons. Thus, the drawer may draw on himself payable to his own order. (see Sec. 8)

A bill of exchange may be endorsed by the payee in favour of a third party, who may in turn endorse it to a fourth, and so on indefinitely. The "holder in due course" may claim the amount of the bill against the drawee and all previous endorsers, regardless of any counterclaims that may have disabled the previous payee or endorser from doing so. This is what is meant by saying that a bill is negotiable.

Therefore we identify the order 'Bill of exchange' as an object.
- It is an instruction to pay money.
- The Address:
* Represents the address of the drawee.
* The Drawer:
- Is a business partner.
- It is the vendor in a business transaction.
- Creates (draws) the order.

*The Drawee:
- Is a business partner.
- It is generally a Bank.
- Has to accept to pay.

*The Payee:
- Is a business partner.
- It is the customer in a business transaction

*The Sum
- Is a monetary amount.

*The Due Date:
- it is a date on wich the Bill of exchange is to be paid.
- It can be specified as a fixed date; a number of days from issue of the bill; a number of days from acceptance of the bill;


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