Cheque:Cheque refers to a negotiable instrument that contains an unconditional order to the financial institution to pay a certain sum stated in the instrument, from the drawer’s account, come the human being to who it is issued, or to the bespeak of the specified human being or the bearer.
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Parties come Cheque:
Basically, there space three next to a cheque:Drawer: The person who color etc the cheque, i.e. Signs and orders the financial institution to salary the sum.Drawee: The bank on i m sorry the cheque is drawn or that is directed to pay the stated sum composed on the cheque.Payee: The beneficiary, i.e. To whom the quantity is to it is in paid.
Apart from this three, there room two much more parties come a cheque:Endorser: when a party transfers his appropriate to take the payment to another party, he/she is dubbed an endorser.Endorsee: The party in who favor, the ideal is transferred, is called endorsee.
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Therefore, option 2 is the exactly option.