Question

A person named in the negotiable instrument to whom or to whose order the money in the instrument is directed to be paid is called as the __________.

• A. payer
• B. payee
• C. consignor
• D. consignee

Answer 1

Answer: (B)

payee

A payee is a person to whom a cheque or bill of exchange is written. For example, payee may be called as beneficiary of the instrument.

For example, Ram has given a cheque of Rs.1000 to Saurabh. In such case, Ram is a payer and Saurabh is a payee.