There are three parties to a bill of exchange:

There are three parties to a bill of exchange: Drawer is the maker of the bill of exchange. A seller/creditor who is entitled to receive money from the debtor can draw a bill of exchange upon the buyer/debtor. The drawer after writing the bill of exchange has to sign it as maker of the bill of exchange. Drawee is the person upon whom the bill of exchange is drawn.

Drawee is the purchaser or debtor of the goods upon whom the bill of exchange is drawn. Payee is the person to whom the payment is to be made. The drawer of the bill himself will be the payee if he keeps the bill with him till the date of its payment. The payee may change in the following situations: In case the drawer has got the bill discounted, the person who has discounted the bill will become the payee; In case the bill is endorsed in favour of a creditor of the drawer, the creditor will become the payee.

Normally, the drawer and the payee is the same person. Similarly, the drawee and the acceptor is normally the person. For example, Mamta sold goods worth Rs. , to Jyoti and drew a bill of exchange upon her for the same amount payable after three months.

Here, Mamta is the drawer of the bill and Jyoti is the drawee. If