Question

liabilities of drawer​

Answer 1

Explanation:

A drawer of a draft orders that at third-party drawee pay a specific amount to a payee who presents the instrument. The drawer, as creator of the instrument, is liable if the drawee dishonors (refused to pay) the draft. Likewise, a maker of a note is liable to a holder who presents the note for payment.

Answer 2

In the case of any cheque payment through any bank or financial institution,a drawer is an individual who is the payer and hence,signs the cheque and gives official permission to the respective bank to officially issue the check and pay the cheque amount to the concerned payee.

Explanation:

Liability of cheque drawer:-

• In case of the cancellation or dishonoring of any bank cheque,the respective bank has to officially notify the drawer about the cancellation and it is then a legal responsibility of the drawer to pay the concerned amount to the payee in full along with any additional compensation or penalty due to the cheque cancellation.
• The drawer is liable to ensure that he or she has adequate balance in his or her bank account and is completely responsible for any cheque cancellation due to balance insufficiency.
• The drawer has to ascertain that the funds from his or her bank account is properly and appropriately applied on to the cheque that has been issued.
• The drawer has to check that the cheque has been officially issued during the official banking hours and is properly signed by the concerned entities or parties which determines or guarantees its legal or official validity.
• The drawer also has to ensure that proper formalities and documentations from his or her behalf have been fulfilled prior to the official issuance of the cheque.