Describe the Advantages of Bill of Exchange.

Advantages of Bill of Exchange. - **Framework for relationship:** A bill of exchange represents a device, which provides a framework for enabling the credit transaction between the seller/creditor and buyer/debtor on an agreed basis. - **Certainty of terms and conditions:** the creditor knows the time when he would receive the money so also debtor is fully aware of the date by which he has to pay the money - **Convenient means of credit:** A bill of exchange enables the buyer to buy the goods on credit and pay after the period of credit. - **Conclusive proof:** the bill of exchange is a legal evidence of a credit transaction implying thereby that during the course of trade buyer has obtained credit from the seller of the goods; therefore, he is liable to pay to the seller. - **Easy transferability:** A debt can be settled by transferring a bill of exchange through endorsement and delivery.