Bill of Exchange

Unconditional order in writing by one person on another to pay to a third on demand or at a fixed or determinable future time a certain sum of money. When payable to order or bearer it is negotiable; its legal title is transferable by indorsement, or, if payable to bearer, by delivery, so that the trans ferer who takes it before due, for value and without notice of any defects, can enforce it in his own name, free from equities. If the person upon whom it is drawn accepts it, which is usually done by writing his name acro the face, he is primarily liable. If he refuses to accept, the holder may treat it as dishonored and proceed at once against the drawer of the bill. Upon dishonor, whether by refusal to accept or to pay, the holder should give notice thereof to the drawer and indorsers, and if it is a foreign bill should have it duly protested. Such bills are said to have been invented by Jews ab. 1150, and used in England ab. 1300. De Paw says they were known at Athens and among the Arabs, but Boeckh affirms that exchange was unknown at Athens. The Abbé Raynal says the Portuguese found them in use in the East Indies ab. 1500.