What Is a Similarity Between a Demand Draft and a Trade

question 53

Multiple Choice

What is a similarity between a demand draft and a trade acceptance?

• A)both are examples of sight drafts
• B)both require credit to be extended to the buyer
• C)both have the drawer to be the payee as well
• D)both are considered two-party transactions

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Definitions:

Liability

The state of being legally responsible for something, typically a debt or obligation.

Negotiable Instrument

A legal document guaranteeing the payment of a specific amount of money, either on demand, or at a set time, with the payer named on the document.

Signed

Having affixed one's signature to a document, thereby indicating agreement, consent, or authorization.

Every Party

Refers to all the individuals or entities involved in an agreement, contract, or legal action.