Essential features of bills of exchange are as follows:
- A bill of exchange is a written order to make payment.
- It is an unconditional order to make payment by a person i.e. drawee.
- The amount of bill of exchange and the date of payment is certain.
- It is signed by the drawer of the bill.
- It is accepted by the drawee by signing on it.
- The amount specified in the bill of exchange is payable either on-demand or on the expiry of a fixed period.
- The amount specified in the bill is payable either to a certain person or to his order or to the bearer of the bill.
- It is stamped as per legal requirements.