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. NamePartyCommentarySir John Lubbock LiberalJames Williamson LiberalRichard Martin LiberalSir Farrer Herschell LiberalRobert Reid LiberalLewis Fry LiberalArthur Cohen LiberalAndrew Commins Irish Parliamentary PartyRobert Fowler ConservativeThomas Charles BaringConservativeSir Charles MillsConservativeWilliam JacksonConservativeEdward WhitleyConservativeJohn MulhollandConservativeGranville GibsonConservativeAdded on 27 March 1882. 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. +NameCommentaryJohn Coleridge, 1st Baron ColeridgeWilliam Watson, Baron WatsonColin Blackburn, Baron BlackburnGeorge Bramwell, 1st Baron BramwellJohn FitzGerald, Baron FitzGeraldRoundell Palmer, 1st Baron SelborneLord ChancellorHugh Cairns, 1st Earl CairnsArthur James Balfour, 1st Earl of BalfourJames Wilde, 1st Baron PenzanceGeorge Glyn, 1st Baron WolvertonThomas O'Hagan, 1st Baron O'Hagan 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:

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. CitationShort titleTitleExtent of repeal 9 Will. 3. c. 17 Bills of Exchange Act 1697 An Act for the better payment of Inland Bills of Exchange. The whole act. 3 & 4 Anne. c. 8Bills of Exchange Act 1704 An Act for giving like remedy upon Promissory Notes as is now used upon Bills of Exchange, and for the better payment of Inland Bills of Exchange. The whole act. 17 Geo. 3. c. 30Bills of Exchange Act 1776 An Act for further restraining the negotiation of Promissory Notes and Inland Bills of Exchange under a limited sum within that part of Great Britain called England. The whole act. Bill of Exchange Act 1800 An Act for the better observance of Good Friday in certain cases therein mentioned. The whole act. 48 Geo. 3. c. 88Bill of Exchange Act 1808 An Act to restrain the negotiation of Promissory Notes and Inland Bills of Exchange under a limited sum in England. The whole act. 1 & 2 Geo. 4. c. 78Bills of Exchange Act 1821 An Act to regulate Acceptances of Bills of Exchange. The whole act. 7 & 8 Geo. 4. c. 15Bills of Exchange, etc. Act 1827 An Act for declaring the law relative to Bills of Exchange and Promissory Notes becoming payable on Good Friday or Christmas Day. The whole act. 9 Geo. 4. c. 24Bills of Exchange (Ireland) Act 1828 An Act to repeal certain Acts, and to consolidate and amend the laws relating to Bills of Exchange and Promissory Notes in Ireland. Sections two, four, seven, eight, nine, ten, eleven. 2 & 3 Will. 4. c. 98Bills of Exchange Act 1832 An Act for regulating the protesting for nonpayment of Bills of Exchange drawn by the banker of a place upon the place of the residence of the drawee or drawees of the same. The whole act. 6 & 7 Will. 4. c. 58Bills of Exchange Act 1836 An Act to declare the law as to what day it requires to be present for payment to Acceptor, or Acceptors supra protest for honour, or to the Referee or Referees, in case of need, Bills of Exchange which have been dishonoured. The whole act. 8 & 9 Vict. c. 37Bankers (Ireland) Act 1845 An Act to regulate the issue of Bank Notes in Ireland, and to regulate the repayment of certain sums advanced by the Governor and Company of the Bank of Ireland for the public service. Sections six and seven. 19 & 20 Vict. c. 97Mercantile Law Amendment Act 1856 The Mercantile Law Amendment Act, 1856. Section twenty-four. 23 & 24 Vict. c. 111Stamp Duties Act 1860 An Act for granting to Her Majesty certain Duties of Stamps, and to amend the laws relating to the Stamp Duties. Section nineteen. 34 & 35 Vict. c. 74Bills of Exchange Act 1871 An Act to abolish days of grace in the case of Bills of Exchange and Promissory Notes payable at sight or on presentation. The whole act. 39 & 40 Vict. c. 81Crossed Cheques Act 1876 The Crossed Cheques Act, 1876. The whole act. 41 & 42 Vict. c. 13Bills of Exchange Act 1878 The Bills of Exchange Act, 1878. The whole act. 19 & 20 Vict. c. 60Mercantile Law Amendment Act (Scotland) 1856The Mercantile Law Amendment Act (Scotland), 1856.Sections ten, eleven, twelve, thirteen, fourteen, fifteen and sixteen.

Subsequent developments The act was described as a Consolidation Act.

Judicial consideration Cases which have considered the application of the Bills of Exchange Act 1882 include: Smith v Lloyds TSB Group plc QB 541

See also English contract law

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