Bill of Exchange - An unconditional
order in writing requiring the party to whom it is
addressed to pay a certain sum on a fixed date in
the future. Bills of exchange are negotiable instruments,
usually maturing within six months, and sold at a
discount to face value. The party to whom the bill
is addressed, and who accepts it, is known as the
acceptor and assumes primary liability to pay on maturity
the face value of the bill to its holder. The drawer
who issues the bill is liable should the acceptor
fail to pay. If the bill has been endorsed by a third
party, such as a bank, the endorser is liable should
both the acceptor and the drawer fail to pay. See
also Bank Bill.
