Bill of Exchange: Essential Features and Processes
Bill of Exchange
Credit is the most important title and must contain the following features:
1. Reference to Bills of Exchange
A reference to bills of exchange must be inserted in the text of the document. This is a sacramental formality requirement, without which the bill of exchange, as such, does not legally exist.
2. Date of Subscription
The expression of the place, month, day, and year when you subscribe. This means mentioning in the letter the place or city that creates or issues it, as well as the day, month, and year of its creation. This is required to determine if the obligor has the ability to exercise their rights on the specified date.
3. Unconditional Order to Pay
An unconditional order for the drawee to pay a certain sum of money. This requirement distinguishes it; the second is to pay a certain sum of money.
4. Name of the Drawee
The name of the drawee, which is the person to whom the drawer’s unconditional order directs them to pay a certain sum of money. This becomes required when they sign, agreeing to pay.
5. Place and Time of Payment
The place and time of payment, usually the domicile of the drawee or a third party where payment is to be made.
6. Name of the Payee
The name of the person to whom payment is to be made: the payee or holder, whose name should be mentioned in the document.
7. Signature of the Drawer
The signature of the drawer or the person who signed at their request or on their behalf. This is essential; without it, the bill of exchange has no legal existence. The drawer’s signature creates it.
Bill of Exchange Payable at Sight
A bill of exchange payable at sight means that the drawee must pay upon its presentation; it does not have a payment date. When it is submitted at sight, it must be paid. It must be presented for payment within six months following the date of issue.
Acceptance
Acceptance is the act by which the drawee or another person referred to in the title signs, agreeing to unconditionally pay the holder or beneficiary the sum of money.
- Acceptance by Intervention: The bill of exchange can be accepted by intervention after carrying out the protest in which the drawee is unable or refuses to pay.
- The Endorsement: The person who signed the bill of exchange as such agrees to switch to ensure that the import of the title will be paid, providing a guarantee of payment on the bill of exchange.
- Payment: Payment must be made in the place and address indicated in the text of the document; without the same, it will not hold. It will be presented at the domicile of the drawee.
- Payment by Intervention: If the bill of exchange is not paid by the drawee, it can be paid by intervention.
- The Protest: The certification of public confidence takes a notary public or a public corridor or the first political authority rather than the bill of exchange would be submitted for acceptance or payment and was not accepted or paid. A notary public’s lack of political authority of the place.
- The Exchange Action: The right of the holder or beneficiary to sue for direct commercial executive track or return to or bound.
- The Shelf Exchange: The extinction of the exchange right contained in the bill of exchange for not meeting the shopkeeper with a formal requirement.
- The Prescription of the Exchange: The extinction of the exchange action by the grocer not to exercise its right of recovery in the time that the law provides.