B is corrent because the negotiable instrument in question is a draft payable on demand. If an instrument has no stated time for payment, it is payable on demand.
A is incorrect because Souther is the drawee, not the drawer. Also, a drawer is secondarily liable on the instrument. This means the holder must first present the instrument to the drawee, the instrument must be dishonored and notice of dishonor must be given to the drawer before his secondary liability comes into effect.
C is incorrect because Souther, as the drawee, would have no liability on the instrument until he accepted the draft and then he would have primary liability.
D is incorrect because the instrument is a three-party instrument containing an order (a draft). A note is a two-party instrument that contains a promise.
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