Bill of Exchange Fundamentals: Parties, Endorsement, Maturity
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The Bill of Exchange: Definition and Function
A Bill of Exchange is a document issued by a natural or legal person (the Drawer) ordering another person (the Drawee) to pay a certain amount of money, on the date indicated, to the designated person (the Payee).
A) Parties Involved in the Bill of Exchange
- Drawer: The person who issues the Bill of Exchange and gives the order to pay the Drawee. It is essential that the Drawer signs the document.
- Drawee and Acceptor: The Drawee is the person ordered by the Drawer to pay the Bill. When the Drawee accepts the Bill through their signature, they become the Acceptor.
- Payee/Holder (Tomador/Tenedor): The person designated by the Drawer to receive payment. The Drawee pays the Payee. The Holder of the Bill may