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Bills of Exchange Act, 1964 (Act No. 34 of 1964)

Chapter I

Bills of exchange - form and interpretation

2. Definition of and requirements for bill of exchange


(1) A bill of exchange is an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand, or at a fixed or determinable future time, a sum certain in money to a specified person or his order, or to bearer.


(2) An instrument which does not comply with the requirements specified in subsection (1) or which orders any act to be done in addition to the payment of money, is not a bill.


(3) An order to pay out of a particular fund is not unconditional within the meaning of subsection (1) but an unqualified order to pay coupled with—
(a) an indication of a particular fund out of which the drawee is to reimburse himself, or of a particular account to be debited with the amount;
(b) a statement of the transaction which gives rise to the bill;
(c) a statement on the bill that it is drawn against specified documents attached thereto for delivery on acceptance or on payment of the bill, as the case may be; or
(d) a statement on the bill that it is drawn under or against a specified letter of credit or other similar authority, is unconditional within the meaning of the said subsection.


(4) A bill is not invalid by reason—
(a) that it is not dated;
(b) that it does not specify the value given, or that any value has been given therefor;
(c) that it does not specify where it is drawn or where it is payable.