The Bills of Exchange Act 1882 codifies the law governing bills of exchange, cheques and promissory notes, defining requisite form, delivery, endorsement and negotiation, and establishing the concept of holder in due course. It prescribes rules on acceptance, presentment, dishonour, notice and protest, and allocates liabilities and liquidated damages for drawers, acceptors and indorsers, including provisions for acceptance or payment for honour, forged signatures and accommodation parties.

The Act also addresses cheques (notably crossings and banker protection), promissory notes (applying bill principles with necessary modifications), computation of time, lost instruments, sets, conflict of laws and supplementary matters such as signature, good faith and savings for bankruptcy, stamp and companies legislation, thereby providing a comprehensive statutory framework for negotiable instruments.