What is the meaning of draft?

draft is a written order drawn by one party, called a drawer, that directs a second party (almost always a bank), called a drawee, to pay a sum of money to a third party, called the payee. For example, a check. Drafts are used with letters of credit. Drafts may be sight drafts, payable upon receipt, or time drafts, payable on some specified future date.

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APABarry Goldsmith. (2010). draft. Retrieved September 20, 2026, from http://smartdefine.org/draft/definitions/1152439
ChicagoBarry Goldsmith. 2010. "draft" http://smartdefine.org/draft/definitions/1152439 (accessed September 20, 2026).
HarvardBarry Goldsmith 2010, draft, Smart Define, viewed 20 September, 2026, <http://smartdefine.org/draft/definitions/1152439>.
MLABarry Goldsmith. "draft" 21 October 2010. Web. 20 September 2026. <http://smartdefine.org/draft/definitions/1152439>
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