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bill, person, addressed and exchange

DRAWEE. The drawee of a bill is the person to whom it is addressed.

By Section 6 of the Bills of Exchange Act, 1882 : " (1) The drawee must be named or otherwise indicated in a bill with reasonable certainty.

" (2) A bill may be addressed to two or more drawees whether they are partners or not, but an order addressed to two drawees in the alternative or to two or more drawees in succession is not a bill of exchange." Where different parties to a bill arc the same person, Section 5 provides : " (1) A bill may be drawn payable to, or to the order of, the drawer ; or it may be drawn payable to, or to the order of, the drawee.

" (2) Where in a bill drawer and drawee are the same person, or where the drawee is a fictitious person or a person not having capacity to con tract, the holder may treat the instrument, at his option, either as a bill of exchange or as a promissory note." The drawee is the person who is expected to accept the bill and, at maturity, to pay it. If the drawee, on receiving a bill, agrees to pay the amount as indicated therein, he signifies his assent to the drawer's order by signing his name across the face of the bill, called accepting the bill. \Vhen the drawee has accepted a bill he is then called the acceptor (q.v.) and his written assent on the

bill is his acceptance (q.v.).

With regard to funds in the hands of a drawee, Section 53 enacts : " (1) A bill, of itself, does not operate as an assignment of funds in the hands of the drawee available for the payment thereof, and the drawee of a bill who does not accept as required by this Act is not liable on the instrument. This sub-section shall not extend to Scotland.

" (2) In Scotland, where the drawee of a bill has in his hands funds available for the payment thereof, the bill operates as an assignment of the sum for which it is drawn in favour of the holder, from the time when the bill is presented to the drawee." The drawee of a cheque is the banker on whom it is drawn. The banker is respon sible only to the drawer and is under no liability to the person presenting the cheque for payment, except in Scotland where the presentment of a cheque attaches any balance there may be in the drawer's account to the extent of the cheque.

The drawee of a bank draft is the bank to which the order to pay is addressed. (See ACCEPTOR, BILL OF EXCHANGE, PRESENT MENT FOR ACCEPTANCE.