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No, Bills of Exchange is not a mandatory requirement under a Trade Transactions. There are transactions which take place without calling Bills of Exchange. For e.g. Transanctions under Deferred Payment.
The only comfort by calling a draft under a Trade Transaction is that the rights of the drawer are protected under the Negotiable Instruments Act.
No, Bill of Exchange/Draft are not essential under a Trade Transactions. There are transactions where payments are realized without presentation of Bill of Exchange/Draft (e.g. Transactions under Deferred Payment Letters of Credits).
YES IT BILL OF EXCHANGE IS ESSENTIAL TI NEGOTIATE ALONG WITH THE DOCUMENTS REQUIRED IN LETTER O CREDIT TERMS
Yes, BoE / Draft is necessary.
Absolutely NO.
Arthur, where in UCP600 have you read that a BE is compulsory? What about a sight DAP Collection, what do you need a draft for?
Yes- because Bill of Exchange is a negotiable documents usually used in international trade and customs in uniform of Uniform Custom Practice (UCP600 ) it is an unconditional order by the drawer to another drawee to pay a certain sum of amount iether sigh bill or in the form of term bill.
Draft/Bills of Exchange are not an essential document required for payment unless it is a specific requirement in the commercial contract signed between the parties. A commercial contract can envisage different type of payments and the underlying credit can be represented by bills of Exchange, promissory notes or letter of credit. Payments are then made against documents proving the execution of the contract by the seller (i.e. shipping documents)
