Fco is a Fiji company based in Suva. Aco is an Australian company based in Brisbane. Fco orders goods from Aco. This is a credit sale. The sale price is $85,000. Payment is due 90 days from the date the goods are shipped.

On January 1, Aco delivers the goods to the Port of Brisbane for shipping to Suva.

The shipping company issues Aco with shipping documents. Shipping law provides that the goods will only be released at the port of destination to a party presenting the shipping documents.The same day, January 1, Aco draws a bill on Fco for $85,000 payable to bearer on April 1.On January 2, Aco hands the bill of exchange and the shipping documents to its banker Westpac Brisbane. Westpac is instructed to present the bill to Fco for acceptance. Once the bill is accepted (and only if it is accepted) is Westpac to hand the shipping documents to Fco.

Westpac Brisbane forwards the bill and shipping documents to Westpac Suva.

On Jan 6 Westpac Suva presents the bill to Fco for acceptance. Fco places its acceptance on the bill and Westpac Suva hands Fco the shipping documents.

Before Westpac Suva can remit the accepted bill to Australia, Aco requests that Westpac Suva organize the discounting of the bill. On January 10 Westpac Suva itself offers to acquire the bill for $83,000. Aco accepts the offer and Westpac Suva makes payment via Westpac Brisbane to Acos current account with the latter.

Xco is a customer of Westpac Suva looking for a short term investment providing a better return than a term deposit. On February 1 Westpac Suva discounts the bill to Xco for $84,000.

Xco holds the bill to maturity, when it is presented to Fco and duly paid.

(i) Is this bill a demand bill or time bill, an order bill or bearer bill, a foreign bill or inland bill?

(ii) Draw a copy of the bill as it appears on March 30.

(iii) As regards the bill what label/s (if any) may be applied?

- To Westpac Brisbane?

- To Westpac Suva?

(iv) Might Westpac or Aco be liable on the bill if it was dishonored by non-payment?

Include reference to any relevant section/s.

(v) This was a credit sale. The sale was to be financed for the first 90 days by Aco. Did things eventually work out that way? Be specific