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Question
What is meant by acceptance of a bill of exchange?
Answer in Brief
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Solution
A bill of exchange is a written instrument which contains an unconditional order directing a person to pay a certain amount on an agreed date.
In other words, it is drawn by the creditor on her/his debtors to make a payment of a certain amount on the mentioned date.
Such a bill comes into existence after the consent of both the parties.
A bill cannot come into existence without the acceptance of a debtor.
Hence, the debtor of the bill has to accept the terms of the bill, sign the same and make it a legal document.
shaalaa.com
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