BILL OF EXCHANGE. A bill of exchange is defined by the Bills of Exchange Act, 1882, Section 3. as follows :— " (1) A bill of exchange is an uncon ditional 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 a fixed or determinable future time a sum certain in money to or to the order of a specified person. or to bearer.
" (2) An instrument which does not comply with these conditions, or which orders any act to be done in addition to the payment of money, is not a bill of exchange.
" (3) An order to pay out of a particular fund is not unconditional within the meaning of this Section ; but an unqualified order to pay, coupled with (a) an indication of a par ticular fund out of which the drawee is to reimburse himself or a particular account to be debited with the amount. or (b) a statement of the transaction which gives rise to the bill. is unconditional.
" (4) A bill is not invalid by reason— (a) That it is not dated ; (b) That it does not specify the value given, or that any value has been given there for ; (c) That it does not specify the place where it is drawn or the place where it is payable."
With regard to the sum payable. Section 9 provides that : " (1) The sum payable by a bill is a sum certain within the meaning of this Act, although it is required to be paid — a) With interest.
(b) By stated instalments.
(c) By stated instalments, with a provision that upon default in payment of any instal ment the whole shall become due.
(d) According to an indicated rate of exchange or according to a rate of exchange to be ascertained as directed by the bill.
" (2) Where the sum payable is expressed in words and also in figures. and there is a discrepancy between the two, the sum denoted by the words is the amount payable." A bill may be written, printed, or type-written.
There is no particular form prescribed by the Act, but bills are nearly always drawn in the same way. The following are specimens of the ordinary forms of bills of exchange : Leeds, June 10, 1910.
£100 Three months after date pay Stamp I me or to my order Is. to - John Brown or order 1 the bearer sum of one hundred pounds for value received.