A bill of exchange is a written order used primarily in international trade that binds one party to pay a fixed sum of money to another party on demand or at a predetermined date. It is a short-term negotiable instrument that is similar to a check or promissory note, but unlike a check, it is a written document outlining a debtors indebtedness to a creditor. A bill of exchange is often used in international trade to pay for goods or services. It is a legally binding document that orders one party to pay a fixed sum of money to another party and can be drawn by individuals or banks. The parties involved in a bill of exchange often include the drawee, who pays the sum, the payee, who receives that sum, and the drawer, who obliges the drawee to pay the payee.

A bill of exchange can be drawn in any currency and is usually settled in the currency of the country in which it was issued. It is transferable and can be endorsed to another party. It also serves as a guarantee of payment and is usually accompanied by a promissory note. If it is not paid on the due date, the holder can take legal action to enforce the payment.

In summary, a bill of exchange is a written order used primarily in international trade that binds one party to pay a fixed sum of money to another party on demand or at a predetermined date. It is a legally binding document that orders one party to pay a fixed sum of money to another party and can be drawn by individuals or banks.