Quick Answer: Who Is A Drawer And Drawee?

Who is drawer of bill of exchange?

the drawer is the party that issues a bill of exchange – the ‘creditor’; the beneficiary or payee is the party to which the bill of exchange is payable; the drawee is the party to which the order to pay is sent – ‘the debtor’..

Who is payee in Cheque?

What does the term “payee” mean? It means the intended recipient of the cheque – the person or business to whom the payer makes the cheque payable.

Who is drawer drawee and payee?

The drawee is the party that pays the sum specified by the bill of exchange. The payee is the one who receives that sum. The drawer is the party that obliges the drawee to pay the payee. The drawer and the payee are the same entity unless the drawer transfers the bill of exchange to a third-party payee.

What is relationship between drawer and drawee?

The maker of a bill of exchange or cheque is called the “drawer”; the person thereby directed to pay is called the “drawee”.

Who is called drawer?

Drawer: the person or entity whose transaction account is to be drawn. Usually, the drawer’s name and account is preprinted on the cheque, and the drawer is usually the signatory. Payee: the person or entity who is to be paid the amount.

Who is drawee in case of need?

7. The maker of a bill of exchange or cheque is called the “drawer;” the person thereby directed to pay is called the “drawee.” When in the bill or in any indorsement thereon the name of any person is given in additional to the drawee to be resorted to in case of need, such person is called a “drawee in case of need.”

What drawer means?

1 : one that draws: such as. a : a person who causes liquor to come out of a container : one who draws (see draw entry 1 sense 1b) liquor. b : draftsman.

What is the difference between payer and payee?

Understanding Payee In the case of a promissory note, through which one party promises to pay another party a predetermined sum, the party receiving the payment is known as the payee. The party making the payment is known as the payer.

When a Cheque is drawn on a bank the bank is called the?

It is basically the bank on which the cheque is drawn and is called the “Drawee”. Always remember that a cheque is always drawn on a particular banker. The individual who is named in the cheque for getting the payment is known as the “Payee”.

Who is drawer in negotiable instrument?

The person who draws the bill is called the drawer. He gives the order to pay money to the third party. The party upon whom the bill is drawn is called the drawee. He is the person to whom the bill is addressed and who is ordered to pay.

What is the difference between a drawee and an acceptor?

As nouns the difference between drawee and acceptor is that drawee is (legal) the party directed to pay the amount of a draft or check while acceptor is one who accepts.

What are the duties of the drawer of the check?

Check: A (special kind of) draft drawn by a depositor (the drawer) ordering a bank or other financial institution (the drawee) to pay a sum certain of money on demand to, or to the order of, a third person (the payee). The drawer is liable for ensuring that sufficient funds are in his or her account to cover the check.