alleryHow many parties are typically involved in a Bill of Exchange?
ATwo parties only
BThree parties usually
CFive parties usually
DOne single party
Answer & Solution
Correct answer: B. Three parties usually
1. Bill of Exchange has three parties: Drawer, Drawee/Acceptor, and Payee.
2. The drawer and payee can be the same person.
3. Promissory note involves only two parties (Maker and Payee).
_Source: ICAI BoS Foundation Paper 1, Ch 6 "Bills of Exchange", §1 ¶4_
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