what are the parties of Bill of Exchange?
Answers
Explanation:
There are 3 parties involved in a payment by bill of exchange: the drawer is the party that issues a bill of exchange – the 'creditor'; the beneficiary or payee is the party to which the bill of exchange is payable; the drawee is the party to which the order to pay is sent - 'the debtor'.
Answer:
generally there are three parties involved in bill of exchange the first one is the drawer. drawer is a person who draws the bill he is the maker of the bill next one is drawee. drawee is a person on whom the bill is drawn
as we know bill of exchange is a negotiable instrument . in simple it is a proof between the two parties .suppose A is giving credit to B for that surety for the expectation of returns of credit him makes and bill as a proof. the person who makes the bill is drawer. on whom the bill is made is drwee.
these are the two parties the third party which is involved in bill of exchange is payee. sometimes what the drawer does he said the amount should be paid to another person means C. he says to drawee that you have to pay me money but don't give money to me pay that money to another person i.e is C in that case that C is payee. in simple terms payee is a person to whom actually the money is payable .sometimes drawer and payee both are similar .the money is actually taken by drawer itself but sometimes by the permission of drawer he says the amount is payable to someone else at that time that person is said to be payee