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Simple English definitions for legal terms
time bill
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A quick definition of time bill:
A time bill is a written order that directs one person to pay a certain amount of money to another person at a specific time. It is similar to a check. There are different types of drafts, such as a sight draft that is payable on demand or a time draft that has a specified payment date. A draft can also refer to the compulsory enlistment of people into military service. To draft means to write or compose something or to recruit or select someone for a task or job.
A more thorough explanation:
A time bill is a type of draft that specifies a payment date. A draft is an unconditional written order signed by one person (the drawer) directing another person (the drawee or payor) to pay a certain sum of money on demand or at a definite time to a third person (the payee) or to bearer.
For example, if a company wants to buy goods from another company but doesn't have the money to pay for them right away, they can use a time bill. The company would write a draft that specifies a payment date in the future, and the other company would agree to accept the draft as payment. This allows the first company to receive the goods they need without having to pay for them immediately.
Another example of a draft is a check. When you write a check, you are essentially creating a draft that instructs your bank to pay a certain amount of money to the person or company you are paying.
Overall, a time bill is a useful tool for businesses that need to make purchases but don't have the funds available at the time of purchase. By using a time bill, they can delay payment until a specified date in the future.