Chapter 9 Docs found in Intl Trade – Test question 2

No, you’ve misunderstood

The three original parties are drawer, drawee and payee

The drawer send the bill to the payee

The payee presents the bill to the drawee who (hopefully) will accept it, and gives it back to the payee

The payee may take the bill and simply hang on to it until maturity date, or….

…. the payee can take it along to one of his own payables (I’m going to call the payee’s payable “creditor”) and sign the bill on the back in favour of the payee’s own creditor

Thus the payee becomes the indorser and the payee’s creditor becomes the indorsee

And so the chain continues until the final indorsee sees that the bill has reached maturity date and takes it along to the original drawee who will (hopefully) honour the bill and hand over the cash

The drawer is always the drawer

The drawee becomes the acceptor

The payee becomes the first indorser

But those titles (drawer, drawee and payee) are the three original parties

These are just titles. The individuals (drawee / acceptor are the same person)(payee / indorser are the same person)

I may need to change the question from “acceptor” to “indorsee”

OK?

That’s great Angela

Well done and thanks for letting me know

Now I expect to see you in F7 🙂

Ah, OK

So maybe P7 will be the next time our paths cross 🙂