What are bills of exchange, hundies and promissory notes?
A ‘Bill of Exchange’ is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of a certain person or to the bearer of the instrument. Indigenous bills of exchange are generally called ‘Hundies’. A ‘Promissory Note’ is an instrument in writing (not being a bank note or a currency note containing an unconditional undertaking, signed by the maker to pay a certain sum of money only to, or to the order of a certain person or to the bearer of the instrument.
