When does the drawee become liable for payment of a draft?

Name: When does the drawee become liable for payment of a draft?
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Quizplus · Accepted Answer

The drawee becomes liable for payment of a draft upon accepting it. Acceptance is a legal agreement by the drawee to pay the draft according to its terms. It typically occurs when the drawee signs or stamps "accepted" on the face of the draft. Until acceptance, the drawee is not obligated to pay the draft.

When Does the Drawee Become Liable for Payment of a Draft