Answer (C) is correct . Commercial drafts are commonly used in international business transactions. Such drafts are three-party instruments:? The seller-exporter is the drawer and payee, and the buyer-importer is the drawee. A draft contains an order by the drawer to the drawee to pay a fixed amount of money to the payee.
Answer (A) is incorrect because Any draft is a three-party instrument (drawer, drawee, and payee).
Answer (B) is incorrect because The draft is payable to the seller-exporter, who is also the drawer.
Answer (D) is incorrect because The drawer (seller-exporter) orders the drawee (buyer-importer) to pay the payee (seller-exporter).
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