Question

Drawee of a bill of exchange is generally a ________.

• A. creditor
• B. debtor
• C. both of the above
• D. none of the above

Answer 1

Answer: (B)

debtor

According to the Negotiable Instruments Act, 1881, a bill of exchange is defined as an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of a certain person or to the bearer of the instrument. There are three parties to a bill of exchange. Drawee is the person upon whom the bill of exchange is drawn. Drawee is the purchaser or debtor of the goods upon whom the bill of exchange is drawn.