In response to an order for flour from Good Eating LLC, Harvest Mill creates a draft ordering Good to pay Harvest for the flour within sixty days and sends it with the delivery to Good. On receipt, the buyer signs the draft. On this instrument, Harvest is
A)neither the drawer nor the payee.
B)only the payee.
C)only the drawer.
D)both the drawer and the payee.

Question

Quizplus · Accepted Answer

Harvest Mill is both the drawer (the party that creates the draft) and the payee (the party to whom the payment is to be made).

In Response to an Order for Flour from Good Eating