Question

In the case of handling bills of exchange for collection the relationship between the customer and banker..

• A. Principal and agent
• B. Debtor and creditor
• C. Bailee and Bailor
• D. Trustee and Beneficiary

Answer 1

Answer:

A. Principal and agent

When a bank collects bills on behalf of a customer, it acts as the agent of the customer (the principal) and does not become the owner of the bills.