This chapter explains that the laws correlated to the bills of exchange are contained in the Bills of Exchange Act 1882 (BoEA 1882). It presents the historical development of bills of exchange, which is an order by the drawer of the bill to the drawee to pay money to some person. Technological changes have radically altered the environment of payment mechanisms, so bills of exchange have become far less common as a result. However, bills of exchange still play a role in commerce and the concept of negotiability. The chapter then examines the requirements for a valid bill of exchange as per the BoEA 1882.
Chapter
25. Bills of exchange
Chapter
19. Bills of exchange
D Fox, RJC Munday, B Soyer, AM Tettenborn, and PG Turner
This chapter focuses on bills of exchange, especially in the context of international trade. It first provides an overview of how bills of exchange are used as a method of payment before discussing the relevant provisions of the Bills of Exchange Act 1882. It then considers the definition of a bill of exchange, how a bill of exchange is transferred, and persons entitled to the benefit of the obligation on the bill. It also examines the general principles governing liability on the bill of exchange as well as the enforcement and discharge of the bill. Finally, it looks at mistaken payment, focusing on cases where the payment was received in good faith and in ignorance of the mistake.
Chapter
20. Cheques and miscellaneous payment instruments
D Fox, RJC Munday, B Soyer, AM Tettenborn, and PG Turner
This chapter focuses on the use of cheques and similar instruments as a mode of payment in commercial transactions, and discusses the relation between them and bills of exchange (of which they are a specialised type). Cheques are intended as instruments which will immediately be paid, whereas bills of exchange are typically drawn payable at a future date and used as a credit instrument. Unlike bills of exchange, cheques are not, and are not intended to be, accepted by the bank on which they are drawn. This chapter first explains what a cheque is, and discusses the likely future of the institution, before discussing promissory notes, banker’s drafts, and travellers’ cheques.
