Features of a bill and promissory note

  1. Instrument in writing – they must be in writing. Oral orders or promise do not make a valid instrument
  2. Unconditional order/promise – the order in the bill and promise in the note must be unconditional. If conditions are present then it may affect its validity.
  3. Drawn on a certain person – it is drawn on a person hence the drawee must be a certain person
  4. A certain sum of money – the order or promise must be to pay a certain predetermined amount of money to the drawee, in spite of: (A) it includes future interest; (B) it is payable at an indicated rate of exchange; (C) it is payable according to the course of exchange.
  5. Payee to be certain – a bill or a promissory note is drawn payable to certain person or the bearer. Hence the payee is certain
  6. Payable on demand or after a certain date
  7. Signed by the drawer/maker – the drawer or the maker of the bill or promissory note puts on his signature on the instrument.
  8. Delivery essential – a bill or a promissory note is deemed to be drawn only when the person who has prepared it delivers it to the other party to whom it is meant
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