Question

What are the types of Commercial Bill?

Explain the types of Commercial Bills?

Answer 1

1. 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.
2. 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.
3. 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.
4. Indigeneous Bills: The drawing and acceptance of indigenous bills are governed by native custom or usage of trade.
5. Accommodation and Supply Bills: Accommodation bills are those which do not arise out of genuine trade of transactions.