Liability of the drawee on a bill of exchange is dependent on
A)the signing and delivery of the bill.
B)the acceptance and delivery of the bill.
C)the signing of the bill.
D)the negotiation of the bill.
E)the presentment of the bill.

Question

Quizplus · Accepted Answer

The liability of the drawee on a bill of exchange is dependent on the acceptance and delivery of the bill. Once the drawee accepts the bill, they become liable to pay the amount mentioned in the bill to the holder. Delivery of the bill is also important as it signifies the transfer of ownership of the bill. Signing, negotiation, and presentment are important steps in the process of a bill of exchange, but they do not determine the liability of the drawee.

Liability of the Drawee on a Bill of Exchange Is