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Under the UN Convention on International Bills of Exchange and International Promissory Notes, which of the following statements relating to a bill of exchange is correct?
1.It may be payable to two or more payees
2.It can only be accepted after its maturity date
3. It is accepted when it is signed by the drawer
Is 1 the ans cuz for 3 drawee should sign to acceptOh! I most certainly do not like this one! The definition of a bill of exchange starts with the words ‘… addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay …’
It would typically be the payee that writes the bill in favour of the payee (yes, I’ve used those words very carefully!) and then sends the bill to the drawer for the drawer to sign. But is that signature ‘acceptance’? Not in my book, it isn’t
So far as I have ever been aware, the drawer, having signed the bill, returns it to the payee. The payee then will send the bill to the drawee and the drawee will (hopefully) sign the bill as ‘accepted’ and thus the drawee becomes the acceptor
Now, fitting my understanding to the question that you have written, 2 (in my mind) is clearly nonsense and 3 I have just stated is for the drawer to accept and not a responsibility of the drawer. So, by process of elimination, it has to be option 1. But here we need to be careful. We can have multiple payees ie ‘Alan and Brian’ but we cannot have alternate payees ie ‘Alan OR Brian’ would not be allowed
Does that answer it?
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