Unconditional order
Certain sum of money
Three parties
All of these
Answer is Wrong!
Answer is Right!
The correct answer is D. All of these.
A bill of exchange is an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand, or at a fixed or determinable future time, a sum certain in money to or to the order of a specified person, or to bearer.
The essential elements of a bill of exchange are:
- It must be an unconditional order. This means that the order to pay must be absolute and not subject to any conditions.
- It must be for a certain sum of money. The amount of money that is to be paid must be specified in the bill of exchange.
- It must be payable on demand or at a fixed or determinable future time. The date on which the money is to be paid must be specified in the bill of exchange.
- It must be payable to a specified person or to bearer. The person to whom the money is to be paid must be named in the bill of exchange.
- It must be signed by the person giving it. The person who is giving the order to pay must sign the bill of exchange.
If any of these essential elements are missing, the instrument is not a bill of exchange.