Section 5 of NIA : Section 5: ''Bill Of Exchange''

Explanation using Example

Imagine John writes a document instructing his bank to pay $10,000 to his contractor, Smith, upon completion of a home renovation. The document states, "Pay Smith $10,000 upon the satisfactory completion of the home renovation project." John signs this document. This is a bill of exchange because it is an unconditional order to pay a specific amount to Smith, a certain person, after a certain event (the completion of the renovation) which is expected to happen. The payment is not conditional because the completion of the renovation is an event certain to occur, even though the exact date may be unknown.