Subscribe:

Ads 468x60px

Formal requirements documentfor Bill of Exchange



1. The Bank letter has to be extended in the corresponding amount, which can be purchased at any tobacconist letterheads.


2. The title has to carry the name inserted therein bill of exchange, expressed in the language used in the rest of the document.

3. The title must be dated and indicate the place where the bill is drawn. In the event that no place is expressly designated warrant shall apply such stating beside the name of the drawer.

4. Must necessarily contain the name of who has to pay the bill, person against whom the payment order, which will appear as "freed" is directed. In the case of individual person the designation shall be by name and in the case concerned a legal person, by its corporate name.

5. Also has to include the signature of the pound, that is, issues the document, which appear as "drawer".

6. The name of the person to whom payment must be made or to whose order will have to make, which may be the same drawer or a third party, and will appear as "taker". The appointment will be made, as in the case of the drawer, by his full name or its name if it is a legal person.

7. necessarily must include the unconditional order to pay a certain sum of money, not subject to any conditions. The currency in which the value of the letter may be domestic or foreign is expressed.

8. the time of "maturity" shall be indicated, ie the day when the letter should be paid. If you have not done this mention specifically, it is understood that the bill is payable at sight.

9. It is necessary that it is indicated the place where payment is to be made, ie, the place where the holder must present the bill to pay. In the event that this data remains unspecified means as payment instead of stating next to the name of the drawee, which in turn is deemed as a place of the same address.

In the event that missing any of these requirements document will not be considered bills of exchange and thus lose its enforceability which is basically the possibility that, before a default, can demand their collection quickly through the courts ( currency judgment). In this case the document will only have validity arising out of their circumstances as documentary evidence of the existence of an obligation.

A different question is that of the so-called blank letter, which carried the signature of the drawer or the acceptor, omits some of the formal requirement or all. In this case the letter is valid if completed properly before maturity
Related Posts Plugin for WordPress, Blogger...