Asked by
Jessica Sharp
on Nov 27, 2024
Verified
For a drawee to be obligated to honor an order to pay, the drawee must be obligated to the drawer.
Drawee
In financial transactions, the party on whom a check or draft is drawn and who is responsible for paying the specified amount.
Obligated
Being legally or morally bound to do something or to fulfill a contract or promise.
Drawer
The person who issues or writes a negotiable instrument, such as a check, directing the payment of the specified amount of money.
- Gain a clear understanding of the functions and commitments of parties participating in negotiable instruments transactions.
Verified Answer
OQ
Learning Objectives
- Gain a clear understanding of the functions and commitments of parties participating in negotiable instruments transactions.