The second party is the "drawee."
The third party is the "payee."
There are two kinds of draft.
The first is usually where the cashier of one bank, through his own check, draws on another bank for the cash difference in their accounts with each other.
The second form of draft is the most usual and is the one we shall here consider.
The cashier's draft is always for cash and the demand is always honored. The ordinary business draft may be for cash or for goods.
The business draft is usually honored, but there are circumstances under which it may be ignored.
TO MAKE A DRAFT
But let us suppose that the draft is all right and that a merchant, let us call him Henry Thomas, and suppose him a resident of Philadelphia, has a bill against James Taylor, of Cleveland, and he wants to collect it, without recourse to law. How will he go about it?
The bill is for $100.