Asked by
William McKibbin
on Dec 19, 2024
Verified
In response to an order for flour from Good Eating LLC, Harvest Mill creates a draft ordering Good to pay Harvest for the flour within sixty days and sends it with the delivery to Good. On receipt, the buyer signs the draft. On this instrument, Harvest is
A) neither the drawer nor the payee.
B) only the payee.
C) only the drawer.
D) both the drawer and the payee.
Draft
An initial version of a document or plan that is subject to revisions and improvements.
Drawer
The person who writes or issues a check or draft, instructing a bank to pay a specified sum of money to a specified person or entity.
Payee
An individual or entity that is designated to receive a payment or financial transaction.
- Acquire knowledge of the key attributes that determine the negotiability of an instrument.
- Recognize the distinctions among negotiable instruments and their deployment in assorted transactions.
Verified Answer
NS
Learning Objectives
- Acquire knowledge of the key attributes that determine the negotiability of an instrument.
- Recognize the distinctions among negotiable instruments and their deployment in assorted transactions.