BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -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.”

Detailed explanation-2: -the drawee is the party to which the order to pay is sent-‘the debtor’. The drawee becomes the acceptor when he/she/it has written the acceptance on the bill of exchange.

Detailed explanation-3: -The drawee is the party that pays the sum specified by the bill of exchange. The payee is the one who receives that sum. The drawer is the party that obliges the drawee to pay the payee. The drawer and the payee are the same entity unless the drawer transfers the bill of exchange to a third-party payee.

Detailed explanation-4: -Drawer is the one who draws the bill of exchange, drawee is the person towards whom the bill of exchange is drawn and payee is the person who will be getting the payment from the bill of exchange. In most cases the drawer is also the payee.

Detailed explanation-5: -a) Inland Bills A bill of exchange may be an inland instrument under two conditions. Firstly, the bill must be drawn as well as payable within India. Secondly, it may also be drawn in India upon an India resident but payable in a foreign country.