Archive | Neg. Instruments

Payment against invoice or simple collection - main steps

Simple collection or payment against invoice

We begin our analysis of payment techniques with the payment against invoice or simple collection. This technique involves requesting the payment of exported goods against a simple presentation of the commercial invoice. The importer is supposed to be paid upon receipt of the invoice (and possibly all documents enabling him to clear them), not after receipt […]

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The Four Corner Model for Bills of Exchange

The Four Corner Model for bills of exchange

The different parties involved in bills of exchange as well as their roles were presented in the previous article. In this article we consider two other parties that play an important role in bills of exchange: the drawer’s bank and the drawee’s bank. Banks are involved in the settlement of bills of exchange since they […]

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The acceptor of the bill of exchange

Bill of exchange – Definition and parties involved

In this article, we continue our analysis of negotiable instruments with the bill of exchange. Historians believe the Bills of exchange to have been invented by Florentine Jews. They were created to avoid the transport of funds and have been used in trade since the middle ages. At the beginning they were used in foreign […]

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Four Corner Model of Promissory Notes

The Four Corner Model for Promissory Notes

We saw in the previous article that numerous parties are involved in promissory notes. The different parties were presented as well as the role they have. In this article we consider two other parties that play an important role in promissory notes: the drawer’s bank and the drawee’s bank. At the end of the day, […]

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Example of simple promissory note

Promissory Note – Definition and Parties involved

After the introduction of negotiable instruments in the previous article, we will now focus on two instruments that are extensively used in business transactions in numerous countries: the promissory note and the bill of exchange. This article is about the promissory note and will handle the following topics: What is a promissory note? Contents of […]

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Classification of Negotiable and Non Negotiable Instruments

Negotiable instruments – Definition and analysis

Negotiable instruments have been around for centuries. They are still used today in domestic or international trade all around the world. It is therefore interesting to take a closer look at them. This article contains in the following topics (Click on the link to go directly to the subject you are mostly interested in): What […]

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