Question

How many parties are there in a cheque?

(A) One (B) Two (C) Three (D) Four​

Answer 1

Answer:

two parties in a cheque .

Answer 2

The correct answer is option (C) Three.

Cheques are among the most widely used and significant types of negotiable instruments. Cheques are defined and regulated by the Negotiable Instruments Act of 1881. Cheques, rather than cash, are used in almost all significant corporate transactions these days. Payees, holders, endorsers, and endorsees are among the parties to a cheque, in addition to drawers and drawees.

In most cases, a cheque has two parties. The drawer and the drawee are examples of these. The drawer is the individual who writes the check, whereas the drawee is the banker to whom the check is written.

There may also be a payee who is responsible for paying the amount on the check. There is also the possibility of a holder, who is usually the initial payee. When the holder signs the cheque and gives it to someone else, he becomes the endorsee. An endorsee, on the other hand, is the individual to whom the check is endorsed.

In a check transaction, three parties are engaged. The drawer is the person or company that issues the check, the drawee is the financial institution, and the payee is the person or company that receives the check.

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