Fact Pattern 19-2
LNG Corporation and Midstates Utility Company enter a contract for a sale of liquefied natural gas. LNG draws a draft unconditionally ordering Midstates Utility to pay $50,000 to LNG's order in sixty days. Midstates Utility signs and dates the draft.
-Refer to Fact Pattern 19-2. On this instrument, LNG is
A)the banker.
B)the drawer.
C)the maker.
D)the trader.

Question

Fact Pattern 19-2
​LNG Corporation and Midstates Utility Company enter a contract for a sale of liquefied natural gas. LNG draws a draft unconditionally ordering Midstates Utility to pay $50,000 to LNG's order in sixty days. Midstates Utility signs and dates the draft.
-Refer to Fact Pattern 19-2. On this instrument, LNG is
A)the banker.
B)the drawer.
C)the maker.
D)the trader.

Quizplus · Accepted Answer

LNG is the drawer because they are the party issuing the draft and ordering payment from Midstates Utility.

Fact Pattern 19-2 ​LNG Corporation and Midstates Utility Company Enter a Contract for a Contract

Fact Pattern 19-2 LNG Corporation and Midstates Utility Company Enter a Contract for a Contract