A cheque differs from a bill of exchange in the following respects:
1. Drawee:
A cheque is always drawn on a bank or a banker while a bill of
exchange can be drawn on any person including a banker.
2. Acceptance:
A cheque does not require any acceptance while a bill must be
accepted before the drawee can be made liable upon it.
3. Payment:
A cheque is payable immediately on demand without any days of
grace, but a bill of exchange is normally entitled to three days of grace
unless it is payable on demand.
4. Crossing:
A cheque may be crossed but there is no such provision in the case
of a bill of exchange.
5. Notice of dishonor:
When a cheque is not met, notice of dishonor is not necessary. Want
of assets in the hands of the banker is sufficient notice. It is necessary to
give a notice of dishonor in order to make the drawer of a bill liable.
6. Payable to bearer on demand:
A cheque can be drawn payable to bearer on demand. But a bill of
exchange cannot be so drawn.
7. Stamp:
A bill of exchange must be stamped, whereas a cheque does not
require any stamp.
8. Countermanding payment:
A cheque may be revoked by countermand of payment. The payment of a
bill, however cannot be countermanded.
9. Noting and protesting:
A cheque is not noted or protested for dishonor and is generally
inland.
10. Presentment:
A bill of exchange must be duly presented for payment otherwise the
drawer will be discharged. The drawer of a cheque is not discharged by failure
of the holder to present it in due time unless the drawer has sustained damage
by the delay.
11. Protection:
A banker is given statutory protection with regard to payment of
cheques in certain circumstances. No such protection is available to the drawee
or acceptor of a bill of exchange.