Differences between Bearer Cheque and Order Cheque

 There are many differences between bearer cheque and Order Cheque. These are

 Order cheque -:

1. Order cheque is payable to the person named in the cheque or his order. For e.g., " Pay to X or order.", such cheque is payable either to X or to any person whom he orders the payment of the cheque.

2. Order cheque is paid by the bank only when the bank is satisfied about the identity of the payee.

3. Order cheque is not transferable merely by delivery. It cannot be tranfered without the signatures of the transferor.

Bearer cheque -:

1. Bearer Cheque is payable to the person named in the cheque or to the bearer thereof.  For e.g., "Pay to X or bearer.", such a cheque may be paid to X at the counter os the bank when he present it for payment. X can either go to bank for getting payment or simply he may or may not sign at the back side of the cheque and hand it over to any person for collection.

2. The drawee bank need not take any pains to get the identification of the person to whom the payment is being made.

3. A bearer cheque is transferable merely by delivery.