Asked by Xhorxhina Gjoni on Jun 16, 2024
Verified
A draft is an order by a drawer to a drawee to pay a payee.
Drawer
A drawer is a person or entity that issues or writes a check or draft, instructing a bank or similar institution to pay a specific amount of money to a designated party.
Drawee
The party on whom a cheque or draft is drawn, responsible for paying the specified amount on the instrument.
Payee
The party in a financial transaction who receives the payment.
- Identify the different types of negotiable instruments, such as drafts, notes, and checks.
Verified Answer
MP
Mukesh PareekJun 20, 2024
Final Answer :
True
Explanation :
According to UCC 3-103(a)(6),a draft is an order by a drawer to a drawee to pay a payee.
Learning Objectives
- Identify the different types of negotiable instruments, such as drafts, notes, and checks.