A drawee is a term used in banking and finance to refer to the person or entity that is expected to pay a check or draft. The drawee is typically the bank or financial institution where the check is deposited or presented for payment. The drawee is responsible for verifying the authenticity of the check and ensuring that there are sufficient funds in the account to cover the amount of the check. Once the drawee has verified the check, they will either pay the full amount or reject the check if there are insufficient funds or other issues.
A drawee is the party that is directed to pay a sum of money in a bill of exchange or promissory note.
The drawee is responsible for accepting or rejecting the bill of exchange or promissory note and making the payment as directed.
Yes, a drawee can refuse to pay if there are valid reasons such as lack of funds, forgery, or other legal defences.
If a drawee refuses to pay, the holder of the bill of exchange or promissory note may take legal action to enforce payment.
Yes, if a drawee refuses to pay without valid reasons, they can be held liable for non-payment and may be subject to legal consequences.
In some cases, the drawee can be changed with the consent of all parties involved in the bill of exchange or promissory note.
The drawee is the party directed to make the payment, while the drawer is the party who initiates the bill of exchange or promissory note and directs the drawee to pay.
Yes, a drawee can be a bank or any other financial institution that is capable of making the payment as directed.
The drawee plays a crucial role in the payment process and is essential for the enforceability of the negotiable instrument.
If a drawee is found to have been involved in fraudulent transactions, they can be held responsible and may face legal consequences.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 13th April 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/drawee/
- Modern Language Association (MLA):Drawee. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/drawee/.
- Chicago Manual of Style (CMS):Drawee. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/drawee/ (accessed: May 09 2024).
- American Psychological Association (APA):Drawee. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/drawee/
Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.
All author posts