Bills of Exchange

A bill of exchange is a written, unconditional order from one party (the drawer) to another (the drawee) to pay a specified amount of money to a third party or the bearer at a future date. It's a formal financial instrument used in trade and commerce to facilitate payments across distances, functioning like a promise to pay. When accepted by the drawee, it becomes a legally binding acknowledgment of debt, enabling the holder to collect the amount owed either on the maturity date or through discounted sale before that.