Alpha Company Has an Account at First Bank

question 76

Multiple Choice

Alpha Company has an account at First Bank. Alpha writes a check payable to Beta Company. In this transaction, Alpha Company is the:

• A) payee.
• B) payer.
• C) drawer.
• D) maker.

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Definitions:

Additional Obligations

Additional obligations mean extra duties or responsibilities that may be added to an agreement or contract beyond its originally stipulated terms.

UCC

A vast array of regulatory provisions for commercial transactions in the United States is constituted within the Uniform Commercial Code.

Incidental Beneficiaries

Third parties who might benefit from a contract incidentally but have no enforceable rights in that contract.

Intended Third-Party Beneficiaries

Individuals or groups not directly involved in a contract who are nevertheless intended by the contracting parties to benefit from the contract's performance.