Saved Bookmarks
| 1. |
Different, between, Biil, difference between bill of exchange and promissory note |
| Answer» \tBill of ExchangePromissory NoteDefinitionA negotiable instrument issued to order the debtor to pay the creditor a certain sum of money within a specific date or on demand.A negotiable instrument issued by the debtor with a written promise to pay the creditor a certain amount within a specific date or on demand.SectionMentioned in Section 5 of the Negotiable Instruments Act, 1881Mentioned in Section 4 of the Negotiable Instruments Act, 1881Issued ByCreditorDebtorParties InvolvedThree parties involved i.e a drawer, the drawee and a payee.Two parties involved i.e a drawer/maker and the payeeAcceptanceDrawee needs to accept the bill of exchange before payment.No acceptance required from the drawee.LiabilityLiability of drawer is secondary and conditional.Liability of drawer is primary and absolute.Dishonouring of instrumentNotice served to all the concerned parties involved in the transaction on dishonouring the instrument.No notice served to the drawer in case of dishonouring the instrument.CopiesBill of exchange can have copies.The promissory note allows no copies.Is it Payable to drawer/makerYes, the same person can be drawer and payee.The same person cannot be drawer and payee.\t | |