Bills of Exchange Act 1882

The Bills of Exchange Act 1882 (45 & 46 Vict. c. 61) is an act of the Parliament of the United Kingdom that codified the law relating to bills of exchange. Bills of exchange are widely used to finance trade and, when discounted with a financial institution, to obtain credit.

The act was drafted by Sir Mackenzie Chalmers, who later drafted the Sale of Goods Act 1893 (56 & 57 Vict. c. 71) and the Marine Insurance Act 1906 (8 Edw. 7. c. 41).

Passage

Leave to bring in the Bills of Exchange Bill to the House of Commons was granted to Sir John Lubbock , Arthur Cohen , Lewis Fry , Sir Ambrose Hardinge Giffard and Charles James Monk on 15 February 1882. The bill had its first reading in the House of Commons on 15 February 1882, presented by Sir John Lubbock . The bill had its second reading in the House of Commons on 21 February 1882 and was committed to a select committee, with 14 members, the power to send for "persons, paper and records" and a quorum of five.

The committee was given the power to extend the bill to Scotland on 23 March 1882, and reported on 21 June 1882, with amendments. The amended bill was re-committed to a committee of the whole house, which met on 27 June 1882 and 3 July 1882 and reported on 5 July 1882, with amendments. The amended bill had its third reading in the House of Commons on 6 July 1882 and passed, without amendments.

The bill had its first reading in the House of Lords on 7 July 1882. The bill had its second reading in the House of Lords on 18 July 1882 and was committed to a committee of the whole house. The committee was discharged on 25 July 1882 and the bill was committed to a select committee, which was appointed with 11 members on 28 July 1882.

The committee reported on 10 August 1882, with amendments. The amended bill was re-committed to a committee of the whole house, which met and reported on 11 August 1882, with amendments. The amended bill had its third reading in the House of Lords on 11 August 1882 and passed, without amendments.

The amended bill was considered and agreed to by the House of Commons on 14 August 1882.

The bill was granted royal assent on 18 August 1882.

Provisions

Section 3 of the act provided a formal definition of a bill of exchange:

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 order or to bearer.

Expressing this in less formal language, it is a written order from one party (the drawer) to another (the drawee) to pay a specified sum on demand or on a specified date to the drawer or to a third party specified by the drawer.

Section 3 of the act also required that bills of exchange be written and signed in order to be enforceable.

Repealed enactments

Section 96 of the act repealed 17 enactments, listed in the second schedule to the act. Section 96 of the act also provided that the repeals would not affect anything done or suffered, any rights, titles or interests acquired or accrued, and any legal proceedings or remedies under the repealed acts.