Drawee

What is 'Drawee'

Drawee is a legal and banking term used to describe the party that has been directed by the depositor to pay a certain sum of money to the person presenting the check or draft. A typical example is if you are cashing a paycheck. The bank that cashes your check is the drawee, your employer who wrote the check is the drawer, and you are the payee.

 

BREAKING DOWN 'Drawee'

The term "bill of exchange" is sometimes used to describe the drafts, orders and checks that are presented for payment. The bill of exchange is just an unconditional order for one party to pay another that is in writing and signed.

 

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RELATED FAQS
  1. How can I cancel a bank draft that I have purchased?

    Learn about what a bank draft is and how it works, the circumstances under which a bank draft may be cancelled, and what ... Read Answer >>
  2. Where on the Internet can I find free sample templates for a bill of exchange?

    Understand the concept behind a bill of exchange, and learn about websites on the Internet where you can find free sample ... Read Answer >>
  3. Who uses bills of exchange?

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  4. What is the difference between a bill of exchange and a promissory note?

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