The drawee becomes liable to pay a draft:
A) upon the drawer signing it.
B) automatically upon its creation.
C) upon accepting it.
D) upon the performance of the underlying obligation.
E) upon its presentation.

Question

Quizplus · Accepted Answer

The drawee becomes liable to pay a draft upon accepting it. Acceptance is the drawee's written promise to pay the amount of the draft when it is due. Upon acceptance, the drawee becomes the principal debtor and is legally bound to pay the draft according to its terms.

The Drawee Becomes Liable to Pay a Draft