Question let me know the meaning of Drawer,Drawee and payee of the cheque. ) drawer – a person who is drawer of the bill on the demand pof payer payee – who will have the money in future. The DRAWER is the individual who issues the cheque, instructing thebank (DRAWEE) to pay the recipient (PAYEE). Drawer, drawee of the act, Negotiable Instruments Act, 1881.
Collection occurs when the drawee bank (the bank ordered by the check to make payment) takes funds from the account of the drawer (its customer who has written the check) and presents it to the collecting bank. See also drawee and drawer. There are seven requirements that a personal cheque should include in order to be negotiable, such as the payee, the payor, the date, the written amount, the numerical amount, the payor’s signature and the payee’s endorsement. A draft is a written order drawn by one party called the drawer on another party called the drawee for the payment of money to a third party called the payee, the amount to be paid from funds which.
A bill of exchange has four parties involved in it, though sometimes the roles can be filled by fewer individuals: a payer and a payee, a drawer and a drawee. So drawer is giving instruction to drawee to pay an amount mentioned on the checque to the person named or to the bearer of the checque. However, do remember that in crossed cheque payee is free to make further endorsement. The payor bank can then sue collecting banks for the full amount under a breach of warranty theory. If another party (such as the drawer, the payee, or either the drawee bank or depositary bank) was negligent in a manner that substantially contributed to the loss from the alteration they are precluded from asserting the alteration against a person who, in good faith, pays the instrument or takes it for value or for collection.
Banks And Banking
In a case where the drawer and payee were fictitious persons, the acceptor was held liable to a bona fide holder. The drawee, unless restricted by the drawer, may also fix a place of payment by his acceptance.