BANKING AFFAIRS

Detailed explanation-1: -A bill of exchange is generally drawn by the creditor upon his debtor. It has to be accepted by the drawee (debtor) or someone on his behalf. It is just a draft till its acceptance is made.

Detailed explanation-2: -34 (1) The acceptance of a bill is the signification by the drawee of his assent to the order of the drawer. (2) Where in a bill the drawee is wrongly designated or his name is misspelt, he may accept the bill as therein described, adding, if he thinks fit, his proper signature or he may accept by his proper signature.

Detailed explanation-3: -The supplier of goods raises a bill of exchange expressed to be payable (i.e. 30/45/60/90/120 days etc.) after sight/ date of bills. The client on acceptance of such bills binds himself liable to make the payment of the bills at a fixed future date.

Detailed explanation-4: -It is accepted by the drawee. The specified amount is payable to the person named in the bill or to his order or to the bearer.