Acceptance of bills of exchange

Abstract

For a better understanding of the nature and notion of acceptance of bills of exchange, one must first of all discuss, at least briefly, the meaning, nature and character of bills of exchange and the parties to it. This brief study of the nature of the bill of exchange and of the parties to a bill is necessary, because, as a bill of exchange is a credit instrument, it has certain characteristics which differentiate it from other contracts, be they civil or commercial. Our Commercial Code, similar to the French Commercial Code, and the Geneva Convention does not give a definition of a bill of exchange. The Draft Commercial Code in Sect .323 states that : “the bill of exchange is a credit instrument to order…” Moreover, modern Italian and French authors, more often than not, do not give a definition, so that one must perforce look up the older writers. Perhaps, the best definition of a bill of exchange, is that provided by Navarrini who defines it as : "Un titolo di credito all' ordine, essenzialmente commerciale, (munito di particolare forza processuale), contenente l’obbligazione letterale, formale, astrstta, incondizionata e non sottoposta a contro prestazioni, di pagare o di far pagare al portatore a scadenza, in un luogo determinate, una somma di denaro.” This definition, if one were to omit the words in brackets, would apply to Malta. In Italy, as distinct from the situation prevailing in Malta, the bill of exchange is an executive title.