Which of the following parties has primary liability on a draft?
A)the drawee
B)the maker
C)the drawer
D)the indorser

Question

Quizplus · Accepted Answer

The maker of the draft is the party that creates the draft and is primarily liable for payment when the draft is presented for payment. The drawer is the party that orders the drawee to pay, but the drawer is only secondarily liable if the drawee does not pay. The indorser may also be liable if they have endorsed the draft, but only if the prior parties do not pay. Therefore, the correct answer is B) the maker.

Which of the Following Parties Has Primary Liability on a Draft