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Bill of Exchange

Forums › ACCA Forums › ACCA LW Corporate and Business Law Forums › Bill of Exchange

  • This topic has 1 reply, 2 voices, and was last updated 11 years ago by AvatarMikeLittle.
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  • February 25, 2015 at 7:10 am #230080
    AvatarTarlan Isgandarov
    Member
    • Topics: 2
    • Replies: 0
    • ☆

    Dear professionals
    Please explain followings:

    -The drawee is a person (usually bank) on whom a bill is drawn and who has not accepted it.
    -The drawer is the person (or persons) making the payment ( the buyer)
    -The payee is the person ( persons) in whose favour the drawer has directed the payment ( the seller)

    According to the above text which is taken BPP Text book ( page 95) drawee is bank, drawer is buyer and payee is seller. Definition of these terms also the same in Opentuition’s F4 Notes.
    Do you think that it is correct?

    In order to understand Bill of Exchange I watched videos and found that Seller is Drawer, Buyer is Drawee and usally Bank is payee.

    Please I need your help to understand Bill of Exchange correctly. Thanks in advance.

    February 28, 2015 at 9:14 pm #230826
    AvatarMikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23369
    • ☆☆☆☆☆

    You may be confusing with a Letter of Credit

    The BPP text is correct and in accord with the course notes

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