I would need a help from somebody being the resident of India (Mumbai) and familiar with official law under which bills of exchange are handled in India
My question is in respect of bill of exchange that we have received under documentary collection and which should be accepted in order to deliver documents to the drawee (D/A).
According to our layers, for the bill of exchange to be correct the term ‘bill of exchange’ should be incorporated into the body of the instrument. That would certainly be the case if we are handling it under our country's Bill of Exchange act which is based on Geneva convention. Since this particular bill of exchange came from India (Mumbai) I do not know if the bill of exchange according to India's law has to quote term ‘bill of exchange’ on the body of the instrument or the words ‘pay against this Exchange....’ would be sufficient to make the document correct basis for delivering documentst under D/A documentary collection.
Simple is Beautiful; the only thing came in my mind when thought of documentary collection. And I think more and more people are thinking the same in these days. Documentary Collection offers us far greater security than selling on open account; but not as much as a documentary credit. We should therefore be more cautious before starting selling using this method of payment. Documentary Collection Forum is an effort to help you on this way – admin; besttradesolution.com
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'Exchange' is not the right term...name of the document must be Bill of Exchange is a must. Exchange of what? This to me seems like a trap.