Fact Pattern 15-2
LNG Corporation and Mid-state Utility Company enter a contract for a sale of liquefied natural gas. LNG draws a draft unconditionally ordering Mid-state Utility to pay $50,000 to LNG's order in sixty days. Mid-state Utility signs and dates the draft.
-Refer to Fact Pattern 15-2.This instrument is

Question

Quizplus · Accepted Answer

A trade acceptance is a draft or bill of exchange that is drawn by the seller (LNG Corporation) on the buyer (Mid-state Utility Company) for the payment of goods, which the buyer accepts by signing, thereby agreeing to pay the specified amount at a future date.

Fact Pattern 15-2 LNG Corporation and Mid-State Utility Company Enter a Contract for a Contract