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In: Economics

how has a bill of exchange evolved into a check, a promissory note, and a bill...

how has a bill of exchange evolved into a check, a promissory note, and a bill of lading?

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Expert Solution

A Bill of exchange is a document which is used in international shipping, made by the seller or exporter and handed over to the buyer or importer..The buyer agrees to pay the seller a specified amount of money on a specified date after receiving the goods.Bill of exchange are similar to checks as they are drawn on banks and can be transferred through endorsement of bill of exchange.Promissory note is a documentation of payment ie it is a legal instrument in which it is mentioned in writing about a party's promise to pay another party the required amount on a specified date. .Bill of exchange is a documentation of payment like the promissory note which makes the buyer pay a required sum on a specified date.A Bill of lading proves the  contract made between the shipper and the seller and describes in detail what is being shipped, all information about the buyer , and contains the receipt for the buyer.Both the Bill of lading and the Bill of exchange provide all sort of information to the buyer and the seller that is required for completing the process of selling and shipping.

Rahul Sunny answered 6 months ago
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