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Answer» The following are the differences between a PN and a BE, | Promissory note | Bills of exchange | | It contains a promise to pay | It contains a order to pay | | Primary liability to pay is of the maker of the PN | Primary liability to pay is on the Drawee. If the drawee fails, the liability will be that of the drawer | | Initially there are two parties –the maker (promissor) and the payee (promisee). Maker and payee have to be different persons. | Initially there are three parties – the maker who is the drawer, the Drawee who is ordered to pay and the payee who has to get the money. The drawer and the payee may be the same person. |
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