a. Helpful in the purchase and sale of goods on credit – A bill of exchange serves as a written evidences of debt. It is a proof that the purchaser of goods owes the amount written in it.
b. Legal Document – It is a valid document in the eyes of law. If the drawee fails to make its payment, it would be easier to recover the amount legally in comparison to a verbal promise.
c. Relief from sending reminders: - The seller need not approach the purchase time and again to demand the payment because the date of payment is fixed and written on the bill of exchange
d. Endorsement possible – A bill of exchange can be easily transferred from one person to another in settlement of debts as it is a negotiable instrument
