Which of the following is true about drafts?
A) Drafts are two-party paper.
B) A draft must have a bank as the drawee.
C) A draft contains an order to pay.
D) All drafts are payable on demand.
E) Drafts are a conditional written order.

Question

Quizplus · Accepted Answer

A draft is a written order by one party (the drawer) to another party (the drawee) to pay a sum of money to a third party (the payee). Therefore, a draft contains an order to pay.

Which of the Following Is True About Drafts