Simple English definitions for legal terms
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An international bill of exchange is a written order signed by one person, called the drawer, directing another person, called the drawee or payor, to pay a certain amount of money to a third person, called the payee or bearer. It is a type of foreign draft that is payable in another country or state.
For example, if a company in the United States sells goods to a company in Japan, the seller can use an international bill of exchange to receive payment from the buyer. The seller would write the order, and the buyer's bank would pay the amount to the seller's bank or the seller directly.
Other types of drafts include:
Overall, a bill of exchange is a useful tool for international trade and commerce, allowing for secure and efficient payment transactions between parties in different countries.
International Bank for Reconstruction and Development | International Bureau for the Protection of Intellectual Property