Question

Explain the features and types of Commercial Bills.

Answer 1

• Drawer 
• Acceptor 
• Payee 
• Discounter 
• Endorser 
• Assessment 
• Maturity 
• Credit Rating

Types:

• Demand and Usance Bills: A demand bill is one wherein no specific time of payment is mentioned. So, demand bills are payable immediately when they are presented to the drawee.
• Clean Bills and Documentary Bills: Bills that are accompanied by documents of title to goods are called documentary bills. Clean bills are drawn without accompanying any document.
• Inland Bills and Foreign Bills: Bills that are drawn and payable in India on a person who is resident in India are called inland bills.
• Indigeneous Bills: The drawing and acceptance of indigenous bills are governed by native custom or usage of trade.
• Accommodation and Supply Bills: Accommodation bills are those which do not arise out of genuine trade of transactions.