Search

21 October, 2021

Difference between Promissory Note & Bill of Exchange

Promissory Note
01. It is promise to pay.
02. There are two parties i.e. the Maker and the
Payee.
03. The liability of the maker is primary.

04. A promissory note is not drawn in sets.

05. There is no need to present it for acceptance.

06. A promissory note can not be made payable to the maker himself.
 
Bill of Exchange
01. It is an order to pay.
02. Primarily  there  are  3  (three)  parties,  i.e.
Drawer, the Drawee and Payee.
03. The    liability    of    the    maker/drawer    is secondary.
04. A bill of exchange may be drawn in sets.

05. A   bill   of   exchange   payable   after   sight requires acceptance.
06. A bill of exchange can be made payable to self.