Asked by
chelsey gehring
on Nov 27, 2024
Verified
A trade acceptance is created when, as part of a deal to buy wheat from Xi, Yang signs a draft ordering the buyer to pay for the wheat within ninety days.
Trade Acceptance
A draft that is drawn by a seller of goods ordering the buyer to pay a specified sum of money to the seller, usually at a stated time in the future. The buyer accepts the draft by signing the face of the draft, thus creating an enforceable obligation to pay the draft when it comes due. On a trade acceptance, the seller is both the drawer and the payee.
Draft
A preliminary version of a document or an order for payment issued by one party to another.
Buyer
An individual or entity that purchases goods or services from another party in an exchange transaction.
- Recognize and distinguish among diverse kinds of negotiable instruments, such as promissory notes, drafts, and checks.
- Understand the responsibilities and duties of individuals engaged in dealing with negotiable instruments.
Verified Answer
RP
Learning Objectives
- Recognize and distinguish among diverse kinds of negotiable instruments, such as promissory notes, drafts, and checks.
- Understand the responsibilities and duties of individuals engaged in dealing with negotiable instruments.