Wednesday, October 9, 2013

Difference between Bill of Exchange and Promissory Note


A bill of exchange is different from a promissory note on the following paragraph:
Promissory Note Bill of Exchange
  • promissory note is promise to pay
  • Bill of exchange is an order to pay
  • In promissory note there are only two parties the drawer, and the payee involved.
  • In Bill of exchange there are three parties, the drawer, the drawee, and the payee.
  • In promissory note there is no necessity of acceptance of Promissory Note
  • Bill of exchange must be accepted
  • The maker is primarily liable for promissory note
  • In Bill of exchange, The drawer is not primarily liable.
  • promissory note is never drawn in sets
  • Foreign Bills of exchange are specially drawn in sets.
  • Protesting is not necessary after dishonour of promissory note
  • A foreign Bill of exchange must be protested upon dishonor.

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