Answer in one sentence
1) What do you mean by bill of exchange?
Ans: A Bill of Exchange is a written order signed by the drawer, directing to a certain person to pay a certain sum of money on-demand or on a certain future date to a certain person or as per his order.
2) What are days of grace?
Ans: The three extra days allowed to the drawee or the acceptor of a bill for making payment on it are called Days of Grace.
3) What do you mean by discounting a bill of exchange?
Ans: Encashment of a bill of exchange with the bank for certain cash which is less than the face value of the bill, before its due date by its drawer or holder is called Discounting of a Bill of Exchange.
4) What is noting of the bill?
Ans: Noting of a Bill of Exchange is the recording the facts of its dishonour by a Notary public.
5) What are noting charges?
Ans: Noting Charges are the fees charged by the Notary public for noting the facts of dishonour on the face of the bill and in his official register.
6) What is relationship between Drawer and Drawee?
Ans: The relationship between the drawer and the drawee is that of the creditor and debtor.
7) Who is payee of the bill?
Ans: The Payee of a Bill is the person to whom the bill is made payable or in whose favour the bill is draw
8) What do you mean by rebate?
Ans: Any concession or discount in monetary terms given by the holder of the bill of exchange to the drawee or acceptor, when a bill is retired is called Rebate.
9) What is legal due date?
Ans: Date which is arrived at after adding three days of grace to nominal due date is known as Legal Due Date.
10) What is bills payable on demand?
Ans: When amount of bill is payable by a drawee on the presentation of a bill, in which time period is not mentioned and grace days are not allowed is known as Bills Payable on Demand.