A drawee signs assent on a bill of exchange, or on one part of a bill drawn in a set. The drawee then…
Section 7 calls the drawee who completes those steps the acceptor.
Choose your answer
A drawee signs assent on a bill of exchange, or on one part of a bill drawn in a set. The drawee then delivers it or gives notice of the signature to the holder or someone acting for the holder. What does section 7 of the Negotiable Instruments Act, 1881 call the drawee at this stage?
Answer and explanation
Correct answer B
Section 7 calls the drawee who completes those steps the acceptor.
Option feedback
Option A
A payee is the person named in the instrument to receive payment. Signing and communicating assent is the act of acceptance.
Option B
Section 7 calls the drawee who completes those steps the acceptor.
Option C
An indorsee takes under an indorsement. The facts describe acceptance by the drawee.
Option D
Holder in due course requires the conditions in section 9, including acquisition for consideration. Assent by the drawee does not establish those conditions.
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