Asked by JORDAN ESCOBAR on May 06, 2024
Verified
A (n) ________ is considered an instrument whereby one party orders the second party to pay an amount of money to the party listed on the instrument.
A) draft
B) note
C) mark
D) instrument
E) certificate of deposit.
Draft
A preliminary version of a piece of writing or a plan, or a banking term referring to a written order by one party to pay a certain sum to another party.
Instrument
A formal legal document representing a right to payment or to an interest in property.
Party
An individual or entity involved in a legal transaction or proceedings.
- Understand the notions of draft, drawer, drawee, and payee in relation to negotiable instruments.
Verified Answer
KB
Kyran BraganzaMay 11, 2024
Final Answer :
A
Explanation :
A draft is a financial instrument through which one party (the drawer) orders another party (the drawee) to pay a specified sum of money to a third party (the payee).
Learning Objectives
- Understand the notions of draft, drawer, drawee, and payee in relation to negotiable instruments.