A bill of exchane has three parties:

Drawer:

1. The drawer is the maker of a bill of exchange.

2. The bill is signed by Drawer.

3. A creditor who is entitled to receive payment from the debtor can draw a bill of exchange.

Drawee:

1. Drawee is the person upon whom the bill of exchange is drawn.

2. Drawee is the debtor who has to pay the money to the drawer.

3. He is also known as ‘Acceptor’.

Payee:

1. The payee is the person to whom payment has to be made.

2. The payee may be the drawer himself or a third party.