The drawee must be obligated to pay the drawer money before the drawer can order the drawee to pay the money to a third party.

Question

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In order for a drawer to order the drawee to pay the money to a third party, the drawee must already have an obligation to pay the drawer money. This obligation can be based on a previous agreement or transaction between the drawer and drawee. Only then can the drawer issue an order, known as a check or draft, instructing the drawee to pay the specified amount to the third party.

The Drawee Must Be Obligated to Pay the Drawer Money