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Bills of exchange can be compared to a promissory note. The difference lies in the fact that it is transferable and is binding on one party to pay another who was not involved in the transaction. Usually, it is called bank draft when issued by a bank; if issued by an individual, it is known as trade draft. This article provides answers to some of the most commonly asked questions about issues related to this. Our mortgage was paid with a Bill of Exchange. The bank never returned it claiming it was lost but would not talk to us about it. They later said that we failed to pay the mortgage and proceeds to sell the home. Even though we told the lawyer that the home was paid off, he sold it. What should we do?
You should hire an attorney and initiate the process of filing an injunction to prevent further action from the bank and file an appeal to the court. It will prevent the bank from taking any further action until the court reviews the situation. If you don’t get an injunction, not much can be done to stop them and you being evicted from your home. When the case goes to court, they might ask the bank to submit the original promissory note in discovery and request a motion to show cause. The bill of exchange is a promise to pay. Even with it, the loan can default. You have to prove that the money was in the bank when the bill of exchange was redeemed. If we signed a bill of exchange for goods purchased through “document against acceptance, D/A”, but paid the merchandise directly to the seller according to the seller’s instruction, but not through the bank as instructed under D/A, are we still to be held responsible for the “bill of exchange”? The problem is that his bank loaned money against these and he is supposed to pay back the bank on due date but due to financial problems he cannot do so. The bank is now asking us to pay against these bills of exchange.
This is a tricky situation since the seller was paid but you breached the agreement. The seller’s bank wants to be repaid and they know that the seller has no money. Hence, they expect you to repay the amount. Since it is clear that the seller is not in a position to repay the debt, it is pointless to sue him now. It seems that it is better to allow the bank to sue you. You can defend by saying that it was the seller who had the agreement with the bank and not you. Hence, the bank should ask the seller to repay. If a manager of a company is convinced by an employee to sign a bill of exchange payable to a false name and the employee signs it under a false name, and then cashes in on it through valuable goods, how can the manager recover the money?
The manager has to prove that he was conned by the employee to sign it and forged a false name to use it. The supervisor will then have to sue the employee. He must list fraud, coercion, breach of loyalty, etc. He should also inform the local authorities of the employee’s behavior. The police would look into the employee’s involvement of identity theft, forgery, and possible embezzlement. These are all criminal offenses. When the police come into the picture, the employee would most likely return the goods. Bills of Exchange are an easy way to do business and usually create no problem during transactions. However, sometimes things might take a surprise twist and you could be at a loss as to what to do. In such cases, it is better to ask a business lawyer to decide the best course of action and act accordingly.
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