What term describes a person who is ordered to pay a draft?

The term that describes a person who is ordered to pay a draft is "Drawee." In financial contexts, a draft is a written order requiring one party (the drawee) to pay a specified amount of money to another party. The drawee is typically a bank or financial institution that is responsible for disbursing the funds when the draft is presented for payment.

Understanding the role of the drawee is essential in financial transactions involving drafts, as it indicates who holds the obligation to fulfill the payment. The other terms—namely, drawer, endorser, and beneficiary—refer to different roles in a financial transaction. The drawer is the individual or entity that creates the draft, the endorser is someone who transfers their rights in the draft to another party, and the beneficiary is the person or entity entitled to receive the payment from the draft. This distinction helps clarify the mechanics of payment processes in various financial arrangements.