Section 12 Drafts

• Library: Commercial Law 2007

As noted in §2.1 above, the earliest form of commercial paper was the bill or bill of exchange. Today the bill of exchange is generally understood to be synonymous with “draft,” which is defined under the UCC as an instrument meeting the negotiability requirements of § 400.3-104, RSMo Supp. 2006, and containing an order, rather than a promise, from one party (the “[d]rawer,” defined in § 400.3-103(a)(3), RSMo Supp. 2006) to a second party (the “[d]rawee,” defined in § 400.3-103(a)(2)) to pay money to the order of a...