Bills of exchange are widely used to finance trade and, when discounted with a financial institution, to obtain credit.

[2] The bill had its first reading in the House of Commons on 15 February 1882, presented by Sir John Lubbock MP.

[2] The bill had its second reading in the House of Commons on 21 February 1882 and was committed to a select committee,[2] with 14 members, the power to send for "persons, paper and records" and a quorum of five.

[3] Section 3 of the act provided a formal definition of a bill of exchange:[4] 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.