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Basing on section 3(1) of the Bill of exchange Act, determine the defect in the three illustration below?
James Milner pay 9000 or more on or about 2/3/2017.
Signed:Kifuta Jasho.?
Basing on section 3(1) of the Bill of exchange Act, determine the defect in the three illustration below?
James Milner pay 9000 or more on or about 2/3/2017.
Signed:Kifuta Jasho.?
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Jun 28
Illustration 1: A bill of exchange is drawn payable to "John Doe or bearer"
Defect: The defect in this illustration is that the bill of exchange is payable to bearer. According to section 3(1) of the Bill of Exchange Act, a bill of exchange must be payable to a specific person or to the order of a specific person. Payable to bearer bills are not allowed.
Illustration 2: A bill of exchange is not dated
Defect: The defect in this illustration is that the bill of exchange is not dated. According to section 3(1) of the Bill of Exchange Act, a bill of exchange must be dated. The absence of a date on the bill of exchange makes it incomplete and invalid.
Illustration 3: A bill of exchange is drawn payable to "Cash"
Defect: The defect in this illustration is that the bill of exchange is payable to "Cash". According to section 3(1) of the Bill of Exchange Act, a bill of exchange must be payable to a specific person or to the order of a specific person. Payable to cash bills are not allowed.
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Google Gemini AI
Jun 28
Illustration 1:
- Description: A bill of exchange drawn by X on Y for $100, payable to Z. - Defect: The drawee (Y) is not named or otherwise indicated with reasonable certainty.
Illustration 2:
- Description: A bill of exchange drawn by X on Y, payable to Z at a certain place. - Defect: The date of maturity is not specified.
Illustration 3:
- Description: A bill of exchange drawn by X on Y, payable to Z on demand. - Defect: The bill is not presented for acceptance within a reasonable time after its issue.