The bill is drawn as an order to drawee to pay certain amount to payee. If drawee refuses to honour the bill, another person may be named in the bill itself, as _____.

Endorsee incase of need

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Endorser in case of need

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Drawee in case of need

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Payee in case of need

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Solution

The correct option is C Drawee in case of need
The maker of a bill of exchange or cheque is called the “drawer;” the person thereby directed to pay is called the “drawee.” When in the bill or in any indorsement thereon the name of any person is given in additional to the drawee to be resorted to in case of need, such person is called a “drawee in case of need.” After the drawee of a bill has signed his assent upon the bill, or, if there are more parts thereof than one, upon one of such parts, and delivered the same, or given notice of such signing to the holder or to some person on his behalf, he is called the “acceptor”.

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Identify which of the following is true and which is false.
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Select the correct answer from the options given below-

P Q R S

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