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In boe drawer B/R can be transferred to endorsee Like that only the drawee can transferred his B/P to any person from where he want to receive the money from? So by this way in the Bill's of exchange there can be four parties know not only three
Answers (3)
There are only three parties to BOE. Drawee is the person directed to pay the money by the drawer (i.e., who issues a bill of exchange payable to payee). Ex: The bank that cashes your check is the drawee, your employer who wrote the check is the drawer, and you are the payee. In endorsement - If the endorser adds a direction to pay the amount mentioned in the instrument to, or to the order of, a specified person, the person so specified is called the â??endorseeâ??. Endorser is the person, either the drawer or holder.
If A draws a bill on B for Rs 5000 so that on the due date of the bill A can present the bill to B and encash 5000 Here in this case Drawer is A( who drawn the bill). Drawer is B who accepted the bill. Payee(beneficiary) is A( as he receives the payment finally) If A endorses the bill to C(creditor for A) for the amount payable to C. Then the Drawer is A( drawer of bill doesn't change). Drawer is B (acceptor of bill does not change). Payee is C ( beneficiary) receiver of Rs 5000. Here payee is also called holder of the bill. Finally there are only 3 parties.
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