Advantages of Bills of Exchange:
Learning Objective:
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What are the main advantages of bills of
exchange?
The following are the advantages of a bill of
exchanges:
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It is a legal evidence of debt.
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It is a convenient method for the transfer of
debt
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A creditor can sue on the bill itself
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It is a negotiable instrument and can be
transferred for settlement of one's debt without difficulty.
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It can be cashed before due date by
discounting.
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A debtor enjoys the benefit of full period of
credit.
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It affords an ease means of transmitting money
from one place to another.
It is for the aforesaid advantage, a buyer can
easily be included to purchase goods and accept bills drawn on him by the
seller when he is not prepared to pay cash at the time of purchase.
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