Question -
Answer -
The Negotiable Instrument Act, 1881 defines bill of exchange as, тАЬA bill of exchange is defined as an instrument in writing, containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument.тАЭ
One of the most significant feature of a negotiable instrument is an unconditional order to pay. The drawee cannot add any conditions such as payment will be done only if debtors pay or business makes profit.
A bill of exchange must contain an unconditional order to pay for the following reasons:
1. To avoid any kind of conflict at the time of payment
2. To provide security to the creditor and also bound the debtor to pay the amount.
3. To comply with The Negotiable Instruments Act, 1881.