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Form of bills of exchange and Promissory notes

A Bill of exchange is an instrument that is used to transfer Money from one person to another instead of the transfer of the actual money itself.

A promissory note is often used in similar trade finance situations to a bill of exchange, with the essential difference being that a bill of exchange is an order to pay (usually the drawer ordering the drawee to pay the payee), while a promissory note is a promise to pay (the maker of the note promising to pay the payee).

Bills of exchange and promissory notes are governed by the Bills of Exchange Act 1882 (BEA 1882).

This Practice Note considers the form that bills of exchange and promissory notes are required to take under BEA 1882 and otherwise.

Bills of exchange and promissory notes were traditionally solely paper instruments. However, since the coming into force of the Electronic Trade Documents Act 2023 (ETDA 2023), electronic bills of exchange and promissory notes