SYNOPSIS FOR ITF PROJECT

TITLE
Significance of Bill of Exchange in International Trade & Finance.

ABSTRACT

A Negotiable Instrument is basically a piece of paper which entitles a person to a sum of money
& this is transferable from person to person by mere delivery or by endorsement and delivery.
The person to whom it is so transferred, becomes entitled to the money and also to the right to
further transfer it. Hence, negotiable instruments play a major role in the trade world.
Negotiable Instruments has a major purpose to avoid the carriage of higher amount of money
and to lowering the chances of uncertain circumstances like theft or robbery.
To give legal effect to Negotiable Instruments, there is legislation called "The Negotiable
Instruments Act, 1881". Exporting generally involves certain risks that might be unknown to
traders who are used to trading domestically and also the separate laws and customs between
states, difficult transport routes and methods, can make exporting a lot complex than trading
within a country. A bill of exchange helps to counter some of these risks involved with
exporting.

RESEARCH QUESTIONS
1. What is a Bill of Exchange and why is it important with respect to International Trade and
Finance.
2. What are the specification of Bill of Exchange and its comparison among other Negotiable
instruments.

REFERENCES
1. Gerold Herrmann, "Background and Salient Features of the United Nations Convention on
International Bills of Exchange and International Promissory Notes", 10 U. Pa. J. Int'l L.
517 (1988).
2. Carole Murray, David Holloway, et.al. (eds.). Schmitthoff's Export Trade-The Law and
Practice of International Trade (Sweet and Maxwell Limited, London, 11th edn., 2007)