The drawing of a bill of exchange refers to the act of issuing (or opening) a bill of exchange and delivering it to the payee. The drawer is generally the exporter in international trade. Drawing is also called invoice, issuance or opening. In essence, it is the basic act of the drawer to create a bill relationship and entrust the payee to unconditionally pay a certain amount to the payee. It is usually called the “main bill act”, while endorsement, acceptance, etc. are called “subsidiary bill acts”. If the main bill act is invalid, the subsidiary bill act is naturally invalid.
The drawing of a bill of exchange must include two acts: “drawing” and “delivery”. Drawing a bill of exchange means that the drawer records the aforementioned matters on the bill of exchange, and delivering a bill of exchange means that the drawer delivers the bill of exchange to the payee. After the drawing act is completed, it will have the effect of bill law, but its effect on each party is different.
Effect of issuing on drawer
The act of issuing makes the drawer the obligor of the bill, and its obligation is to guarantee that the bill issued by it can be paid or accepted, that is, the drawer must ensure that the rights of the bill can be realized. The drawer is the debtor of the payee. If the holder fails to obtain payment or is refused acceptance, the drawer is responsible for repaying the relevant amount of the holder. Before acceptance, the principal debtor and the secondary debtor. In the case of non-payment of the bill, the drawer has the right to claim against the payee and the acceptor, and shall also fulfill the obligation to be claimed by the subsequent holder. If the bill of exchange states “without recourse”, its effect varies according to the different provisions of the bill of exchange laws of different countries.
Effect of issuing on drawee
The drawee generally refers to the importer in international trade. The payee has the right to decide whether to accept or pay the bill of exchange, but has no obligation to accept or pay the bill of exchange. Because the bill of exchange is not a “receipt”, but a “credit currency” guaranteed by the drawee, the payee’s credit is completely dependent on the credit of the drawee. However, once the payee accepts the bill of exchange, he becomes the acceptor and the debtor of the bill of exchange, and must bear the responsibility of payment when due. If the payee does not accept or pay the bill of exchange, he does not bear any liability under the bill law, that is, at this time the payee is only a person related to the bill of exchange, not the debtor, and the payee cannot force or sue him to pay.
The payee can refuse to pay the bill of exchange in the following circumstances: ① The payment method for the bill has not been agreed in advance; ② The amount of overdraft allowed and the method of paying the bill have not been agreed in advance; ③ There is no creditor’s rights and debtor relationship at all; ④ The signature on the bill of exchange is forged; ⑤ The bill of exchange has not been circulated within a reasonable time.
Effect of issuing on payee
After the payee obtains the bill of exchange and becomes the holder, he obtains the right to request payment and the right of recourse of the bill of exchange. The right to request payment is the right of the holder to request the payee to pay the amount of the bill of exchange. Before the payee accepts the bill of exchange, this right of request is only an expectation right. Only after the payee accepts the bill of exchange, the expectation right becomes a real request right. In addition, the payee also has the right to transfer the bill of exchange.