Understanding Bills of Exchange and Checks
Bill of Exchange – Definition and Key Players
A bill of exchange is a document through which a person agrees to pay another person a certain amount of money on a specified date and at a specified venue. These letters and official documents are obtained from tobacconists.
In a bill of exchange, the following are involved:
- The drawer – The person issuing the letter; the seller who is owed payment.
- The drawee – The person liable for payment; the buyer.
- The borrower – The person who has the letter in his
SA & SRL Dissolution, Shares, and Bill of Exchange
Causes of Dissolution of an SA (Public Limited Company)
A Public Limited Company (SA) in Spain can be dissolved for the following reasons:
- If the General Board agrees to it.
- Compliance with the terms set by statute.
- Having met the company’s objectives.
- Losses that reduce the company’s net worth to below 50% of the share capital.
- Reduction of capital below the legal minimum (€60,102).
- Inability to carry out the company’s objectives.
- Bankruptcy (before bankruptcy proceedings). If an agreement is signed,
Bill of Exchange: Characteristics and Requirements
CHAPTER XX – Bill of Exchange
General
Notion and general characteristics.
A bill of exchange can be defined as a negotiable instrument that incorporates an unconditional order, given by the issuer to another person, to pay a certain sum to another party. It is regulated by Law 19/1985 of July 16, concerning exchange and checks.
There are three subjects:
- The drawer, who issues the document giving the payment order, ensuring compliance.
- The drawee: the person to whom the payment order is directed. They
Understanding Checks: Types, Endorsements, and Payments
People Involved in the Payment of a Check
People involved in the payment of a check:
Classes of Checks
- Bearer: Can be paid to the person who presents it for collection.
- Nominee: Intended for a specific person or entity.
- Nominative in-command: Names a person or entity so that it can be transmitted by endorsement.
The Endorsement
The endorsement is a provision that serves to pass the check. The person who transmits the check is the endorser, and who receives it is the endorsee.
A check payable to the order
Read MoreCustoms Procedures and Incoterms in International Trade
Customs Procedures in International Trade
Customs play a crucial role in exercising control over international commercial exchanges. It is a government office responsible for collecting customs duties and taxes, and enforcing rules and regulations regarding what can enter a country. They also fight against smuggling activity.
European Union (EU): No customs duties are applied to goods traveling within the EU territory (Customs Union). A common external tariff is applied on goods entering the EU. The
Read MoreExport Readiness: Company, Product, and Documentation
Company and Product Readiness
Company Readiness
- Established domestically
- Have sales grown for 3 years?
- Covers all domestic market
- Price-competitive in the domestic market
- Has conducted market research
- Payment terms you can offer
- If there is foreign demand
- Transport costs manageable?
- Has knowledge to export
- Adaptation in new market
Documentation
Internal Documentation
External Documentation
- Proforma Invoice (contractual offer)
- Transport document
- Purchase order (client order nº)
- Consular invoice (additional proof)