Fact Pattern 15-2
LNG Corporation and Mid-state Utility Company enter a contract for a sale of liquefied natural gas. LNG draws a draft unconditionally ordering Mid-state Utility to pay $50,000 to LNG's order in sixty days. Mid-state Utility signs and dates the draft.
-Refer to Fact Pattern 15-2.On this instrument, Mid-state is

Question

Quizplus · Accepted Answer

Mid-state Utility is the drawee because it is the party that is being ordered to pay the funds specified in the draft. LNG Corporation is the drawer because it is the party that is issuing the draft and ordering payment from Mid-state.

Fact Pattern 15-2 LNG Corporation and Mid-State Utility Company Enter a Contract for a Contract