Sight draft : Sight draft is a kind of bill of exchange wherein the exporter instructs his banker to handover the relevant documents to the importer only against payment. 1 2. Usance draft : Usance draft is a kind of bill of exchange wherein the exporter

international-trade
cbse

#1

(i) It is a document of title which gives the holder the right to possession of the goods.
(ii) It is an acknowledgement of receipt of goods on board the ship.
(iii) It is an contract of affreightment comprising the terms and conditions on which the shipping company has agreed to carry the goods to the destination port.
(iv) It may be used as a collateral security for raising loans.