Bill of exchange Meaning, Definition & Usage

noun a document ordering the payment of money; drawn by one person or bank on another
order of payment; draft.

(Com.), a written order or request from one person or house to another, desiring the latter to pay to some person designated a certain sum of money therein generally is, and, to be negotiable, must be, made payable to order or to bearer. So also the order generally expresses a specified time of payment, and that it is drawn for value. The person who draws the bil is called the drawer, the person on whom it is drawn is, before acceptance, called the drawee, after acceptance, the acceptor; the person to whom the money is directed to be paid is called the payee. The person making the order may himself be the payee. The bill itself is frequently called a draft. See Exchange. Chitty.