Documentary Bill of Exchange

Documentary bill is used in the context of international trade when buyer of goods instead of making payment in cash issue a bill of exchange to the seller of goods which can be presented for payment after some time by the seller, however under documentary bill there is a precondition that such bill of exchange should be presented for payment along with documents like bill of lading or railway receipt or any other document specified in the said bill and if the person presenting such bill for payment fails to do then the bank will not honor such bill of exchange.



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