A commercial draft typically:
A)specifies the payment amount and payment due date.
B)specifies that the purchaser use the seller's bank as the guarantor.
C)requires payment prior to the delivery of the goods.
D)is signed upon delivery of the goods.
E)involves a lien on the purchasers' current assets.

Question

Quizplus · Accepted Answer

A commercial draft typically specifies the payment amount and payment due date. This enables the seller to have a clear understanding of when they can expect to receive payment and the amount they should expect to receive.

Answer: C 
 A commercial draft typically requires payment prior to the delivery of the goods. This ensures that the seller is paid before any goods are transferred to the buyer.

Answer: B, E 
 A commercial draft may specify that the purchaser use the seller's bank as the guarantor, which is option B. Additionally, a commercial draft may involve a lien on the purchaser's current assets, which is option E. However, these options are not as common as options A and C.

A Commercial Draft Typically