Question

The person who has the right to receive the amount of the bill is called ----.

• A. drawer
• B. payee
• C. drawee
• D. endorser

Answer 1

Answer:

B. payee

PARTIES TO A BILL OF EXCHANGE:

There are three parties to a bill of exchange :

1. Drawer:

• The person who draws or writes the bill is called the drawer or maker.

• The drawer must be the seller or creditor to whom money is owing.

2. Drawee:

• The drawee is the person on whom the bill is drawn.

• He is the purchaser or debtor who is ordered by the drawer to pay the amount.

3. Payee:

• The person who has the right to receive the amount of the bill is called the payee.

• The payee may be a third person or the drawer himself.