demand bill
C2Formal, Technical (Finance, Banking, Law)
Definition
Meaning
A negotiable instrument, such as a bill of exchange or promissory note, payable immediately upon presentation (on demand) to the drawee or maker, rather than on a specified future date.
Primarily a financial/banking term; can metaphorically refer to any urgent, non-negotiable request for payment or action.
Linguistics
Semantic Notes
It is a type of 'bill of exchange' distinguished by its immediate payment clause. Synonym of 'sight bill' or 'sight draft'. Contrasts with 'time bill' or 'usance bill'.
Dialectal Variation
British vs American Usage
Differences
Term is standard in both varieties. 'Demand draft' (DD) is a more common everyday synonym in some Commonwealth and American contexts for a bank-issued instrument.
Connotations
Neutral technical term in both. Implies immediacy and liquidity.
Frequency
Low frequency in general discourse but standard within specialist financial and legal texts in both regions.
Vocabulary
Collocations
Grammar
Valency Patterns
The exporter drew a demand bill on the importer.The bank will honour the demand bill upon presentation.Payment was secured via a demand bill.Vocabulary
Synonyms
Strong
Neutral
Weak
Vocabulary
Antonyms
Phrases
Idioms & Phrases
- “(None directly associated; related to 'on demand' and 'call in a bill')”
Usage
Context Usage
Business
Used in international trade and treasury operations to ensure immediate payment for goods or services.
Academic
Found in economics, finance, and law textbooks discussing negotiable instruments and payment systems.
Everyday
Virtually never used in everyday conversation outside professional contexts.
Technical
Core term in banking law, trade finance documentation, and accounting practices.
Examples
By Part of Speech
noun
British English
- The solicitor advised using a demand bill to secure the outstanding payment without delay.
- Under the Bills of Exchange Act, a demand bill must be paid upon sight.
American English
- The contract stipulated payment via a bank-certified demand bill.
- He received a demand bill from the collection agency for the overdue debt.
Examples
By CEFR Level
- The bank would not accept the foreign demand bill due to irregularities.
- A demand bill is useful when you need guaranteed, immediate payment.
- To mitigate credit risk, the exporter insisted on a demand bill of exchange drawn on the importer's reputable bank.
- The protested demand bill was returned unpaid, triggering legal proceedings under the Uniform Commercial Code.
Learning
Memory Aids
Mnemonic
Imagine a person presenting a BILL and shouting "I DEMAND payment NOW!" – that's the essence of a demand bill.
Conceptual Metaphor
FINCIAL OBLIGATION IS A LEGAL DEMAND (The document embodies and executes the demand for immediate settlement).
Watch out
Common Pitfalls
Translation Traps (for Russian speakers)
- Avoid translating as 'требовательский счёт' (incorrect). The correct equivalent is 'платёжное требование' or 'вексель на предъявителя' (though the latter is broader).
- Do not confuse with 'счёт-фактура' (invoice) or 'законопроект' (draft law).
Common Mistakes
- Using 'demand bill' to mean an invoice or a regular utility bill.
- Confusing it with a 'demand letter' (a legal request) or 'demand note' (often a loan agreement).
- Misspelling as 'demand billl' or 'demend bill'.
Practice
Quiz
What is the key distinguishing feature of a demand bill?
FAQ
Frequently Asked Questions
No. An invoice is a commercial document requesting payment, but not a negotiable instrument. A demand bill is a legally enforceable order to pay money immediately.
No, by definition. A post-dated instrument becomes payable on a future date, making it a 'time bill' or 'usance bill,' not a demand bill.
It is considered 'dishonoured' and can be 'protested' (formally noted as unpaid). The holder has an immediate right of recourse against the drawer and endorsers.
In essence, yes. 'Demand draft' (DD) is a common modern synonym, often issued by a bank directing another bank to pay on demand. 'Demand bill' is the more traditional, formal term.