Drawee vs accountee how to#

If for some reason the cheque is not cleared, it is called cheque dishonoured. If the cheque is credited to Vijay’s account, it is called cheque honoured. Sanjay can then re-issue the same cheque to Vijay. by putting the name and account number of Vijay along with his signature. The only thing that Sanjay needs to do now is to endorse the cheque and he can do so by merely putting an endorsement on the back of the cheque i.e. Yes, Sanjay can do so because Ajay had issued him a crossed cheque. Sanjay does not want to put the money in his account and directly wants to give it to Vijay. 2 Lakh to Sanjay drawing 2 parallel lines on the top left corner of the cheque. 2 Lakh to Sanjay and in turn, Sanjay needs to give Rs. Suppose, there are 3 people involved in a transaction – Ajay, Sanjay and Vijay. What do we mean by the endorsement of a Crossed Cheque? In this case also, the money will be directed to the account of the person mentioned in the cheque.īut the primary and the most important difference between an A/c Payee and a Crossed Cheque is that unlike an A/c Payee, a Crossed Cheque can be endorsed. This means that the person/entity, whose name has been written on the cheque, can only transfer this money to their account and the money cannot be given in cash at the branch.Ĭrossed Cheque is issued when we make two parallel lines on the top left corner of the cheque leaf. Let’s read more to find out the difference between the two –Īccount Payee Cheque, also commonly written as A/c Payee is issued when you want to redirect the amount to a specific person or entity. We generally write a Crossed Cheque or an A/c Payee on the cheque leaf to mean the same thing, but there is a difference between the two.

Drawee vs accountee how to#

I am sure everyone knows how to write an A/c Payee Cheque, but do you know the difference between a Crossed Cheque (//) and an Account Payee Cheque? Where a bill is addressed to an agent, and the agent accepts, the principal is not bound even though the agent had authority to accept bills.What is an Account Payee Cheque (A/c Payee)? Under what circumstances or instances do we write an Account Payee Cheque (A/c Payee)? What is the right way of writing an Account Payee Cheque? The hand that holds the pen is immaterial if, in fact, there be authority to sign. Where a bill is accepted by an agent of the drawee, instead of by the drawee himself, the acceptance is good.

An acceptance in its true style by a firm wrongly addressed is a valid acceptance. A bill addressed to a firm and accepted by one member of the firm in his own name is an acceptance by that member of the firm and not by the firm itself. Similarly, when a bill is addressed to a firm, and the partner accepts the bill in the name of the firm, adding his own name, the acceptance is that of the firm and not of the partner. When a bill is addressed personally to one who is also a partner in a firm and he accepts it in the name of the firm, it is nevertheless not the firm's acceptance, but his own. A man trading in a name other than his own may accept in either name. As stated in the previous paragraph, mere writing of the figure does not necessarily amount to signing.

Payee The person named in the instrument, to whom or to whose order the money is by the instrument directed to be paid, is called the “payee”.Īs already stated, there are three parties to a bill of exchange, Section 7 of the Negotiable Instruments Actĭrawer, drawee: The maker of a bill of exchange or cheque is called the “drawer” the person thereby directed to pay is called the “drawee”.ĭrawee in case of need When in the bill or in any indorsement thereon the name of any person is given in addition to the drawee to be resorted to in case of need such person is called a “drawee in case of need”.Īcceptor After the drawee of a bill has signed his assent upon the bill, or, if there are more parts thereof than one, upon one of such parts, and delivered the same, or given notice of such signing to the holder or to some person on his behalf, he is called the “acceptor”.Īcceptor for honour When a bill of exchange has been noted or protested for non-acceptance or for better security, and any person accepts it supra protest for honour of the drawer or of any one of the indorsers, such person is called an “acceptor for honour”.