Is a cheque considered a bill of exchange that is payable on demand when the drawee is a bank?

A cheque is, in fact, a type of bill of exchange that is typically regarded as payable on demand, particularly when the drawee is a bank. This means that the payee can present the cheque to the bank for immediate payment without any prior notice required. The defining characteristic of a cheque is that it orders a bank to pay a specific amount from the account of the drawer.

In this context, understanding that a cheque is an instrument used in financial transactions that compels the bank to transfer funds upon presentation is crucial. The nature of a cheque being immediately payable elevates its status as a bill of exchange specifically intended for prompt payment.

While there are conditions that apply to the validity and negotiated status of a cheque, such as the requirement for sufficient funds or proper endorsement, these factors do not affect its classification as a bill of exchange that is payable on demand. Thus, the statement regarding the cheque's classification remains fundamentally true.