A bill of exchange is an unconditional order in writing for the payment of a certain sum of money absolutely and at all events.1 Bills of exchange are either inland or foreign. An inland bill of exchange is one payable in the same state or country in which it is drawn. A foreign bill of exchange is one payable in some state or country other than that in which it is drawn.

There are three original parties to a bill of exchange: the drawer (who draws the order, or in other words, orders the payment of the money), the payee (in whose favor the order is drawn), and the drawee (on whom the order is drawn).