There are mainly three parties involved in a bill of exchange, namely:

Drawer: The person who makes the bill, or who gives the order to pay a certain sum of money, is the drawer of the instrument.

Drawee: The person who accepts the bill of exchange, or who is directed to pay a certain sum, is called drawee.

Payee: The person receiving payment is called the payee, who can be a designated person or the drawer himself.

Now, apart from the parties mentioned above, there are some other parties to a bill of exchange, described as under:

Drawee, in case of need: If in any bill of exchange, a person’s name is mentioned in addition to the original drawee, who can be resorted for payment. Then, that person will be called as drawee.

Holder: The holder of the bill of exchange, is the person who possesses the bill and who has the right to recover the amount from the parties.

Acceptor: The person who accepts the bill is called acceptor. Usually, a debtor or drawee is the acceptor. However, it can be accepted by some other person also, on behalf of the debtor/drawee.

Endorser: If the holder of the bill, endorses it to another person, then the person will be called as the endorser.

Endorsee: The person to whom the bill of exchange is endorsed, is called as an endorsee.