Which of the following is NOT an essential requirement for a valid bill of exchange?
Understand the Problem
The question is asking to identify which option does not constitute an essential requirement for a valid bill of exchange. It tests knowledge of financial instruments and their legal requirements.
Answer
Payment of interest is not essential for a valid bill of exchange.
A valid bill of exchange does not need to include the payment of interest.
Answer for screen readers
A valid bill of exchange does not need to include the payment of interest.
More Information
Although many features are essential for a valid bill of exchange, such as it being in writing, signed, and including a specific sum of money, the payment of interest is not a requirement.
Tips
A common mistake might be assuming that interest is required, since other financial documents often include this feature. Ensure to remember that a bill of exchange is primarily about the order to pay a sum and doesn't inherently involve interest.
Sources
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