Fact Pattern 22-2 LNG Corporation and Midstates Utility Company enter a contract for a sale of liquefied natural gas by LNG to Midstates. LNG draws a draft unconditionally ordering Midstates Utility to pay $50,000 to LNG's order in sixty days. Midstates Utility signs and dates the draft.
Refer to Fact Pattern 22-2. On this instrument, LNG is
A) the drawee.
B) the drawer.
C) the maker.
D) the payee.

Question

Quizplus · Accepted Answer

LNG is the drawer because it is the party that creates and signs the draft, ordering Midstates Utility to pay a specified amount.

Fact Pattern 22-2 LNG Corporation and Midstates Utility Company Enter