Bills of Exchange Act 1909

The rules in bankruptcy relating to bills of exchange, cheques, and promissory notes, shall continue to apply thereto notwithstanding anything in this Act contained.

The rules of common law, including the law merchant, save in so far as they are inconsistent with the express provisions of this Act, shall continue to apply to bills of exchange, cheques, and promissory notes.

This Act does not apply to bills of exchange, cheques, and promissory notes drawn issued or made before the commencement of this Act.

This Act does not apply to an instrument to which the Cheques Act 1986 applies.

A bill of exchange is an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand, or at a fixed or determinable future time, a sum certain in money to or to the order of a specified person, or to bearer.

An instrument which does not comply with these conditions, or which orders any act to be done in addition to the payment of money, is not a bill of exchange.

An order to pay out of a particular fund is not unconditional within the meaning of this section; but an unqualified order to pay, coupled with:

an indication of a particular fund out of which the drawee is to re‑imburse himself or herself, or a particular account to be debited with the amount; or

a statement of the transaction which gives rise to the bill;

A bill is not invalid by reason:

that it is not dated;

that it does not specify the value given, or that any value has been given therefor; or

that it does not specify the place where it is drawn, or the place where it is payable.

An inland bill is a bill which is, or on the face of it purports to be:

both drawn and payable within Australasia; or

drawn within Australasia upon some person resident therein.

Unless the contrary appear on the face of the bill, the holder may treat it as an inland bill.

A bill may be drawn payable to, or to the order of, the drawer; or it may be drawn payable to, or to the order of, the drawee.

Where, in a bill, drawer and drawee are the same person, or where the drawee is a fictitious person or a person not having capacity to contract, the holder may treat the instrument, at his or her option, either as a bill of exchange or as a promissory note.

The drawee must be named or otherwise indicated in a bill with reasonable certainty.

A bill may be addressed to two or more drawees, whether they are partners or not, but an order addressed to two drawees in the alternative, or to two or more drawees in succession, is not a bill of exchange.

Where a bill is not payable to bearer, the payee must be named or otherwise indicated therein with reasonable certainty.

A bill may be made payable to two or more payees jointly, or it may be made payable in the alternative to one of two, or one or some of several payees. A bill may also be made payable to the holder of an office for the time being.

Where the payee is a fictitious or non‑existing person, the bill may be treated as payable to bearer.

When a bill contains words prohibiting transfer, or indicating an intention that it should not be transferable, it is valid as between the parties thereto, but is not negotiable.

A negotiable bill may be payable either to order or to bearer.

A bill is payable to bearer which is expressed to be so payable, or on which the only or last indorsement is an indorsement in blank.

A bill is payable to order which:

is expressed to be so payable; or

is expressed to be payable to a particular person, and does not contain words prohibiting transfer or indicating an intention that it should not be transferable.

Where a bill, either originally or by indorsement, is expressed to be payable to the order of a specified person, and not to the person or his or her order, it is nevertheless payable to the person or his or her order at his or her option.