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How many days of grace does the drawer give to the drawee for payment of bills of exchange?
8. How many days of grace does the drawer give to the drawee for payment of bills of exchange?
- One
- Two
- Three
- Thirty
Answer: C) Three
Explanation:
Drawee is given an additional three days following the due date of the bill for making instalments. These 3 days are known as 'Long periods of Grace'. It is a custom to add the times of beauty. For instance, assuming the bill is drawn on first January and its development is multi-month then the due date would be first January + multi-month + 3 days = fourth February.