Drawee for Dummies
noun
pronunciation: drɔ'iWhat does Drawee really mean?
Drawee is a term that we use in the world of banking and finance, and it's important for us to understand what it means so that we can navigate through these concepts. So, imagine you want to send a letter to your friend who lives far away. You take a piece of paper, write your message, put it in an envelope, stick a stamp on it, and address it to your friend. Now, the letter is ready to be sent, but it needs to go through a process, right? This is where the term "drawee" comes into play.
The drawee, my friend, is the person or the bank who is going to pay the money that you wrote on a check or a promissory note. It's like the bank is the middleman that connects you with the person you owe money to. For example, let's say you borrowed $50 from your friend Sarah, and you promised to pay her back in a week. Now, you write a check or a promissory note to Sarah for that amount, and she takes it to her bank to get the money.
In this scenario, you are the drawer because you wrote the check, Sarah is the payee because she is the one who will receive the money, and the bank where Sarah has an account is the drawee because it will pay the $50 to Sarah.
Now, it's important to note that the drawee doesn't necessarily have to be a bank. It can also be an individual or a company who agrees to pay the money you wrote on the check or promissory note. The key factor here is that the drawee has the financial means to fulfill their obligation and pay the specified amount to the payee.
So, to summarize, the drawee is the person or the bank who is responsible for paying the money that you wrote on a check or a promissory note. They act as a bridge between you, as the drawer, and the person or company you owe money to, who is the payee. The drawee is the one who fulfills the financial obligation indicated on the document, making sure the money gets to where it needs to go.
I hope this explanation helps you understand what the term "drawee" means in a simpler way. If you have any more questions, feel free to ask!
The drawee, my friend, is the person or the bank who is going to pay the money that you wrote on a check or a promissory note. It's like the bank is the middleman that connects you with the person you owe money to. For example, let's say you borrowed $50 from your friend Sarah, and you promised to pay her back in a week. Now, you write a check or a promissory note to Sarah for that amount, and she takes it to her bank to get the money.
In this scenario, you are the drawer because you wrote the check, Sarah is the payee because she is the one who will receive the money, and the bank where Sarah has an account is the drawee because it will pay the $50 to Sarah.
Now, it's important to note that the drawee doesn't necessarily have to be a bank. It can also be an individual or a company who agrees to pay the money you wrote on the check or promissory note. The key factor here is that the drawee has the financial means to fulfill their obligation and pay the specified amount to the payee.
So, to summarize, the drawee is the person or the bank who is responsible for paying the money that you wrote on a check or a promissory note. They act as a bridge between you, as the drawer, and the person or company you owe money to, who is the payee. The drawee is the one who fulfills the financial obligation indicated on the document, making sure the money gets to where it needs to go.
I hope this explanation helps you understand what the term "drawee" means in a simpler way. If you have any more questions, feel free to ask!
Revised and Fact checked by Jack Taylor on 2023-10-29 00:09:46
Drawee In a sentece
Learn how to use Drawee inside a sentece
- When you write a check, the person or business that you are giving the check to is called the drawee.
- If you send a money order to your landlord to pay the rent, the landlord is the drawee.
- When you use a debit card to make a purchase, the store that receives the payment is the drawee.
- If you send a payment through electronic transfer to your utility company, they are the drawee.
- When you make a deposit at the bank, the bank becomes the drawee because they receive the money.
Drawee Hypernyms
Words that are more generic than the original word.
Drawee Hyponyms
Words that are more specific than the original word.