About Bills

1. what is a bill?

A negotiable instrument is a negotiable instrument which is unconditionally committed by the drawer to pay a certain amount of money by himself or to entrust another person.

To grasp this concept, we need to understand it from three aspects.

First, a negotiable instrument is a kind of negotiable securities, which has a certain amount of face value and represents ownership or debt of property. Whoever owns the bill has the right to obtain the amount stipulated in the instrument by the instrument, and whoever owns the company's stock owns the corresponding part of the company's property.

The generation, pfer and exercise of the right of the bill are based on its own existence. That is to say, the holder of the bill only gets the right to collect the bill only if he gets the bill. If he pfers the bill to another person, then the right to collect the money will also be pferred.

Second, a bill is a promise made by the drawer to pay a certain amount to the holder.

When a drawer opens a bill, it must bear the obligation stipulated in the payment of the bill, and only when it pays the amount can the obligation be relieved.

Third, the payment commitment made by the drawer of the bill is unconditional, that is, the obligation of the drawer to perform the payment cannot be dependent on the occurrence of an event or the emergence of certain circumstances or the precondition of an act.

That is to say, once a drawer has issued a bill, he must pay the prescribed amount at any time, no matter whether or not something or certain behavior happens.

2. how do bills be classified?

What kinds of bills are negotiable in China?

According to the law of negotiable instruments, bills include bills of exchange, promissory notes and cheques.

Negotiable instruments can be classified from different angles.

According to the time of payment, bills can be divided into spot and forward bills.

A spot bill means that a drawee must pay immediately to the holder, such as a cheque and a bill payable on demand, after sight.

A forward bill is a bill payable by a drawee at a specified time or at a specified date after sight.

Bills can be classified into registered bills and bearer notes according to their different records.

A registered bill refers to a note indicating that the name of the payee can be pferred by the endorser of the payee and that the payer can only pay the payee or his designated person.

Bearer notes refer to bills which are not recorded on the face of the payee and can be pferred directly through the delivery of the instrument without endorsement. The drawee can pay the bill to any bearer.