Explain the features and types of Commercial Bills.
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Discounter
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Types:
Demand and Usance Bills: A demand bill is one wherein no specific time of payment is mentioned. So, demand bills are payable immediately when they are presented to the drawee.
Clean Bills and Documentary Bills: Bills that are accompanied by documents of title to goods are called documentary bills. Clean bills are drawn without accompanying any document.
Inland Bills and Foreign Bills: Bills that are drawn and payable in India on a person who is resident in India are called inland bills.
Indigeneous Bills: The drawing and acceptance of indigenous bills are governed by native custom or usage of trade.
Accommodation and Supply Bills: Accommodation bills are those which do not arise out of genuine trade of transactions.