International Bills of Exchange — OpenTuition Forums

Ccrye15y ago

Hi ... why is this so confusing? ... They say "the sum payable on a bill is a DEFINITE SUM". And then elsewhere, where the bill involves interest payment, they say ... "The rate at which interest is to be paid may be expressed either as a definite rate or as a VARIABLE RATE".

Oh my God! ... I think F4 Global is hectic. Or maybe BPP (maybe too detailed) is not good for this paper? Any ideas?

Please help me here with this question as well as suggested study styles to catch up. I spend hours on a few pages only, especially on complicated topics. Always self-contradictory. I can't figure them out now.

Thanks.
Crye

MikeLittleTutor15y ago#1

Hi

I'm not up on global law, but if a bill is quoted as at "a variable rate" the variable rate itself should be definite. That is, the rate could well be tied to, for example, LIBOR. Libor itself varies, but the interest on the bill is fixed to a variable rate! Does that make sense?

Ccrye15y ago#2

Thanks, Mikelittle ... I really wish it made sense to me! I try but can't figure out how something could be definite, and yet variable. Please, any other way to make this clearer?
Thanks again!

MikeLittleTutor15y ago#3

Yes - how about if an amount is payable on 31 December according to a rate of exchange applicable on that date?

Will that do?