An unconditional order drawn by the seller on the buyer instructing the buyer to pay the amount of the order on presentation is
A) an unconditional letter of credit.
B) a time draft.
C) a consignment.
D) a sight draft.

Question

Quizplus · Accepted Answer

An unconditional order drawn by the seller on the buyer instructing the buyer to pay the amount of the order on presentation is a sight draft. There is no guarantee with a documentary draft. An unscrupulous buyer could refuse to pay the draft when presented and then attempt to bargain with the seller for a lower price.

An Unconditional Order Drawn by the Seller on the Buyer