·         BE/ Drafts, P-note, Cheques: legal docs. Evidencing claims for amounts owed

Emplyed as

-          A mean of extending credit – usually on S-T basis, to the buyer

-          A device to provide the seller with a negotiable security for payment

·         Def: unconditional payment order made by drawer to require the drawee to pay a certain amount at sight or on a fixed future date

·         Features

-          No reason for the BE

-          Independent from the sales contract

-          Unconditional order to pay

-          The drawee is bound to pay upon acceptance

-          Negotiable instrument