Mar 3, 2005 17:25
19 yrs ago
19 viewers *
English term
"Bill of exchange" versus "draft"
English
Bus/Financial
Finance (general)
I was wondering whether someone could explain the difference between a "draft" and a "bill of exchange" to me? If there is a difference, it's not clear to me. Thanks! Hanna
Responses
11 mins
Todd Field
United States
United States
Native in English
&
English
Specializes in field
United States
Related KudoZ points
:
4
Selected
same: legal vs. common term
They are the same. One is a legal term, the other is a more common term.
Here are some examples:
Bill of exchange: A signed, written order by one business that instructs another business to pay a third business a specific amount. Also called a draft. datek.smartmoney.com/glossary/index.cfm
Synonymous to a draft, (draft is the common name in the US; however, under law, this document is known as a bill of exchange) this is a written, unconditional and negotiable demand for payment. A bill of exchange is a written order for a certain sum of money, to be transferred on a certain date from the person who owes the money or agrees to make the payment (the drawee) to the creditor to whom the money is owed (the drawer of the bill). Thus, it is the creditor or the drawer, who actually draws (fills out) the bill of exchange as to the amount due and the date on which it is to be paid. It is addressed to the debtor, the drawee. The bill of exchange must be accompanied by an instruction letter. Upon request, this may be obtained from one's bank.
www.dnb.com/US/communities/intlbusiness/general_export__inf...
A written, dated, and signed three-party instrument containing an unconditional order by a drawer that directs a drawee to pay a definite sum of money to a payee on demand or at a specified future date. Also known as a draft.
august1.com/pubs/dict/b.htm
Here are some examples:
Bill of exchange: A signed, written order by one business that instructs another business to pay a third business a specific amount. Also called a draft. datek.smartmoney.com/glossary/index.cfm
Synonymous to a draft, (draft is the common name in the US; however, under law, this document is known as a bill of exchange) this is a written, unconditional and negotiable demand for payment. A bill of exchange is a written order for a certain sum of money, to be transferred on a certain date from the person who owes the money or agrees to make the payment (the drawee) to the creditor to whom the money is owed (the drawer of the bill). Thus, it is the creditor or the drawer, who actually draws (fills out) the bill of exchange as to the amount due and the date on which it is to be paid. It is addressed to the debtor, the drawee. The bill of exchange must be accompanied by an instruction letter. Upon request, this may be obtained from one's bank.
www.dnb.com/US/communities/intlbusiness/general_export__inf...
A written, dated, and signed three-party instrument containing an unconditional order by a drawer that directs a drawee to pay a definite sum of money to a payee on demand or at a specified future date. Also known as a draft.
august1.com/pubs/dict/b.htm
4 KudoZ points awarded for this answer.
Comment: "Thanks a lot to all of you for your help! Hanna"
10 mins
Alejandra Hozikian
Argentina
Argentina
Specializes in field
Argentina
Translator/Attorney/Coach (ICF)
Native in: Spanish 
Works in: English to Spanish, English, Spanish to English
English term (edited):
Bill of exchange" versus "draft
see comment
Dear Johanna,
Apparently there is no difference. But in the U.S. the term frequently used is draft instead of bill of exchange,which is more used in Britain. Now, regarding their meaning,there is no difference. They are ways of payment which operate in a way similar to a cheque,but the drawer is the same as the payee (that is the beneficiary).Instead of there being three parties involved (in the cheque), there are only two. And the bank, of course.
I hope I did help you.
Regards,
Alejandra
Apparently there is no difference. But in the U.S. the term frequently used is draft instead of bill of exchange,which is more used in Britain. Now, regarding their meaning,there is no difference. They are ways of payment which operate in a way similar to a cheque,but the drawer is the same as the payee (that is the beneficiary).Instead of there being three parties involved (in the cheque), there are only two. And the bank, of course.
I hope I did help you.
Regards,
Alejandra
12 mins
Explanation below
A bill of exchange is:
A non-interest-bearing written order used primarily in international trade that binds one party to pay a fixed sum of money to another party at a predetermined future date.
Bills of exchange are similar to checks and promissory notes. They can be drawn by individuals or banks and are generally transferable by endorsements. The difference between a promissory note and a bill of exchange is that this product is transferable and can bind one party to pay a third party that was not involved in its creation. If these bills are issued by a bank, they can be referred to as bank drafts. If they are issued by individuals, they can be referred to as trade drafts.
A non-interest-bearing written order used primarily in international trade that binds one party to pay a fixed sum of money to another party at a predetermined future date.
Bills of exchange are similar to checks and promissory notes. They can be drawn by individuals or banks and are generally transferable by endorsements. The difference between a promissory note and a bill of exchange is that this product is transferable and can bind one party to pay a third party that was not involved in its creation. If these bills are issued by a bank, they can be referred to as bank drafts. If they are issued by individuals, they can be referred to as trade drafts.
32 mins
Vladimir Dubisskiy
United States
United States
Specializes in field
United States
UNSURPASSABLE EXPERIENCE
Native in: Russian 
, Ukrainian
Works in: English to Russian, Russian to English, Ukrainian to English, and 3 more.
a note about drafts vs money orders (if it's relevant)
i work in the banking system (Canada) and simply want to add that drafts are to be given for over $1000.00 amounts. $1000.00 and beow - money orders are to be supplied.
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