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Questions and Answers
Which party is usually the exporter in a draft or bill of exchange?
Which party is usually the exporter in a draft or bill of exchange?
What is the act of taking the bill to the drawee and demanding payment or acceptance called?
What is the act of taking the bill to the drawee and demanding payment or acceptance called?
What is the party called who is to receive the payment on a draft or bill of exchange?
What is the party called who is to receive the payment on a draft or bill of exchange?
What is the act called when the drawee writes down the word 'accepted' on a draft or bill of exchange?
What is the act called when the drawee writes down the word 'accepted' on a draft or bill of exchange?
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What is the party called who is to pay the money on a draft or bill of exchange?
What is the party called who is to pay the money on a draft or bill of exchange?
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Which party is usually the importer in a draft or bill of exchange?
Which party is usually the importer in a draft or bill of exchange?
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What is the act called when the drawee refuses to pay or accept a draft or bill of exchange?
What is the act called when the drawee refuses to pay or accept a draft or bill of exchange?
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What is the act of drawing a draft and signing it, followed by delivering it to the payee called?
What is the act of drawing a draft and signing it, followed by delivering it to the payee called?
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What is the party called who writes the order and gives directions to another person to make a specific payment of money on a draft or bill of exchange?
What is the party called who writes the order and gives directions to another person to make a specific payment of money on a draft or bill of exchange?
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What is the party called who is to receive the payment on a draft or bill of exchange, and is also known as the original holder/transferor if the bill is transferred?
What is the party called who is to receive the payment on a draft or bill of exchange, and is also known as the original holder/transferor if the bill is transferred?
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Study Notes
Key Parties and Acts in Drafts and Bills of Exchange
- Exporter is usually the drawer, the party who initiates the draft or bill of exchange.
- The act of presenting the bill to the drawee to demand payment or acceptance is called presentment.
Receiver and Payment Roles
- The party designated to receive the payment on a draft or bill of exchange is known as the payee.
- The act of the drawee writing 'accepted' on a draft or bill signifies acceptance of the bill.
- The party responsible for paying the money on a draft or bill of exchange is referred to as the drawee.
Importer and Refusal Actions
- Importer is typically the drawee, the party who is expected to pay for goods or services upon receipt of the draft.
- The act of a drawee refusing to pay or accept a draft is termed dishonor.
Drafting and Ordering
- The act of drawing and signing a draft, then delivering it to the payee is called drafting.
- The party who writes the order, instructing another to make a specific payment, is called the drawer.
- The payee is also known as the original holder/transferor if the bill is transferred.
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Description
Test your knowledge on drafts and bills of exchange with this quiz! Learn about the parties involved and their roles, as well as the purpose and characteristics of these financial instruments.
