Bill of exchange normally is customary where the supplier of goods has sold goods on credit to the buyer of goods. Here is the list of parties to a bill of exchange –
1. Drawer – It is the person who is the maker of the bill of exchange. It is the person who has sold the goods and for receiving the payment from the debtor he draws a bill of exchange.
2. Drawee or Acceptor – It is the person on whom the bill of exchange is drawn and he has to make the payment to the supplier of goods.
3. Payee – It is the person to whom the payment has to be made. It may be the drawer himself if he has not discounted the bill with any third party.