Question

How many parties are usually found in the case of a bill of exchange?

• A. $2$
• B. $3$
• C. $4$
• D. $5$

Answer 1

The correct option is B $3$

There are three parties to a bill of exchange:

(1) Drawer is the maker of the bill of exchange. A seller/creditor who is entitled to receive money from the debtor can draw a bill of exchange upon the buyer/debtor.

(2) 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.

(3) Payee is the person to whom the payment is made.