Jacob Benito runs a business based in Norway that sells the steel used in hockey blades.Jacob sold $50 000 worth of steel to Wayne Lemieux of Canada on 8 August 2016.Using a bill of exchange, the two parties agreed that the $50 000 would not be due until 8 October 2016 and Wayne arranged for the payment to be made through his account at ABC Trust Company.Which of the following is true?

Question

Quizplus · Accepted Answer

In a bill of exchange, the payee is the party that receives the payment, the drawer is the party that owes the money and writes the bill, and the drawee is the party that is instructed to pay the money. In this scenario, Jacob (who receives the payment) is the payee, Wayne (who owes the money and arranges for the payment) is the drawer, and ABC Trust Company (which is instructed to make the payment) is the drawee.

Jacob Benito Runs a Business Based in Norway That Sells