A written order of payment by one party (the drawer) to another party (the drawee) to pay a particular sum to a third party (the payee) on or before a particular date.
Definition from Nolo’s Plain-English Law Dictionary
1) A written order for the payment of money, such as a check. The person who writes the draft is called the drawer, the person who holds the money -- for example, the bank -- is called the drawee, and the person who ultimately receives the money is called the payee. After receiving the draft, the payee can demand payment at any time unless the draft specifies a particular time for payment. Also called a bill of exchange. 2) A preliminary version of a written document, such as a law or a legal brief, that is ready for revision or correction. 3) To select for some purpose, such as military service.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:15 pm