Explain all the parties on a promissory note, including an indorser, and the liability each signing...

Explain all the parties on a promissory note, including an indorser, and the liability each signing party has on the note

Expert Solution

The parties on a promissory note are

Drawer: the person who makes a promissory note. He is also called the promisor, the maker, the payor, the debtor.
Drawee: the person in whose favor the promissory note is drawn and who is meant to receive the payment. He is also called the promisee, the payee, the creditor.
Bearer: the person who holds a promissory note. He is also called the holder. The bearer and the payee is usually the same person, but they can be different.
Endorser: the person who endorses a promissory note.
Endorsee: the person in whose favor the promissory note is endorsed and who receives it after endorsement. He becomes the new bearer and payee after endorsement

The maker of the promissory note is primary liable for the instrument. The drawer of the bill is liable only when the drawee does not accept the instrument money due. The liability of the maker of a note is primary and absolute.

ekkarill92 answered 1 year ago

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