Various parties to Negotiable Instruments

The important parties to Negotiable Instruments can be listed as follows:

· Parties to a promissory note: Maker, payee, endorser, endorsee

· Parties to a bill of exchange: Drawer, Drawee or Acceptor, drawee in case of need, acceptor for honour, , endorser, endorsee.

· Parties to a cheque: Drawer, drawee ( always a banker), payee, endorser, endorsee

Let us learn about them

Drawer, Drawee, Acceptor, Maker, Payee, etc.,:

(i) The party who draws a bill of exchange or a cheque or any other instrument is called drawer.

(ii) The party on whom such bill of exchange of cheque is drawn is called the drawee. In other words the person who is thereby directed to pay is called the drawee.

(iii) The drawee of a bill of exchange who has signified his assent to the order of the drawer is called the acceptor. The acceptor becomes liable to the holder after he has signified his assent but not before.