You are watching: There are three parties to a check. the drawer is
In Amerihave the right to English, it is composed as ‘check’ whereas in British English it is composed as ‘cheque’.
Today, checks are among the many prevalent techniques of payment. They are the preferred payment technique once the payment being made is huge.
In this short short article we are going to take a look at the parties to a check. Tright here are always three parties to any kind of offered check. In the absence of any kind of of the three parties to a examine, a inspect cannot be provided to effect payment.
The parties are as follow:
The drawer, the drawee and also the payee.
The drawer is the person whose signature appears on the examine. In other words, the drawer is the debtor that writes a check and also instructs his or her financial institution to pay somebody on demand. His signature on the check authorizes his banker to make payment.
The drawee of a examine is the banker. This is the financial institution on which the examine is attracted. This indicates that all the moment, the drawee is the financial institution in which the drawer saves. The name of the bank is always printed on the check. For example, Barclays Bank, Merchant Bank, etc.
The last however not least party to a inspect is the payee. As the name implies, the payee is the perboy who is being phelp by the bank. The payee is the perchild that the drawer orders his banker to pay on demand also.
Bottom line: The drawer writes the amount of money that he wants his banker (drawee) to pay to someone (payee), signs it and writes the date on the examine. He then provides the inspect to the person or entity (payee) he wants to pay.
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NOTE: There are specific times wright here the drawer can be the very same perchild as the payee. This happens as soon as the drawer of a examine makes a check payable to himself.