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Answer» Difference between Bill of Exchange and Promissory Note: | Bill of Exchange | Promissory Note | | 1. Bill of Exchange is defined under Section 5 of the Negotiable Instrument Act, 1881. | 1. Promissory Note is defined under Section 4 of the Negotiable Instrument Act, 1881. | | 2. Acceptance is necessary in case of Bill of Exchange. | 2. No such question of acceptance arises in case of Promissory Note. | | 3. Bill of Exchange contains an order for payment | 3. Promissory Note contains promise for payment. | | 4. The drawer of Bill of Exchange is the creditor. | 4. The drawer of Promissory Note is the debtor. | | 5. The dishonour of Bill of Exchange may be noted to the Notary. | 5. No such Noting is required in case of a Promissory Note. | | 6. There may be three pen-ties to the Bill of Exchange: Drawer, Drawee and Payee. | 6. There are two parties to the Promissory Note: Drawer and the Receiver. | | 7. The drawer of Bill may become the payee for Bill of Exchange. | 7. The drawer of the Bill cannot be the receiver for Promissory Note | | 8. Bill of Exchange payable on presentation does not require a stamp. | 8. Stamp is required in all kinds of Promissory Notes. |
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