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    Cheque Bill of Exchange Promissary Note

    Uploaded by

    Neel Naik
    This document compares and contrasts cheques, bills of exchange, and promissory notes. Cheques are drawn on a bank, can be issued for immediate or future payment, do not require acceptance, and are generally valid for 6 months. Bills of exchange can be drawn on a bank or person, may or may not be payable on demand, require acceptance, and must be stamped. Promissory notes involve only two parties, are a promise to pay by the debtor to the creditor, and the legal heirs of the maker are liable for payment.

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    Cheque Bill of Exchange Promissary Note

    Uploaded by

    Neel Naik
    880 views2 pages
    This document compares and contrasts cheques, bills of exchange, and promissory notes. Cheques are drawn on a bank, can be issued for immediate or future payment, do not require acceptance, and are generally valid for 6 months. Bills of exchange can be drawn on a bank or person, may or may not be payable on demand, require acceptance, and must be stamped. Promissory notes involve only two parties, are a promise to pay by the debtor to the creditor, and the legal heirs of the maker are liable for payment.

    Original Description:

    MBA Law

    Original Title

    136_C_LegalAspect

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    This document compares and contrasts cheques, bills of exchange, and promissory notes. Cheques are drawn on a bank, can be issued for immediate or future payment, do not require acceptance, and are generally valid for 6 months. Bills of exchange can be drawn on a bank or person, may or may not be payable on demand, require acceptance, and must be stamped. Promissory notes involve only two parties, are a promise to pay by the debtor to the creditor, and the legal heirs of the maker are liable for payment.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    880 views2 pages

    Cheque Bill of Exchange Promissary Note

    Uploaded by

    Neel Naik
    This document compares and contrasts cheques, bills of exchange, and promissory notes. Cheques are drawn on a bank, can be issued for immediate or future payment, do not require acceptance, and are generally valid for 6 months. Bills of exchange can be drawn on a bank or person, may or may not be payable on demand, require acceptance, and must be stamped. Promissory notes involve only two parties, are a promise to pay by the debtor to the creditor, and the legal heirs of the maker are liable for payment.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 2

    Name: Asmita Dinkar Tikhade Roll No:136/C

    Differentiate Between Cheque, Bill of Exchange and Promissory Note.

    CHEQUE BILL OF PROMISSARY


    EXCHANGE NOTE
    A Cheque is drawn on a banker. It may be drawn on a bank or a person. Only two parties involved. Namely
    maker and payee.
    Cheques are not drawn in sets. It is drawn in sets. Issued by debtor to creditor.

    A Cheque is payable on demand. It may or may not be payable on Promissory Note is a promise to pay.
    demand .It can also be payable after a
    fixed period of time.
    Cheques are printed in form. A bill of exchange cannot be issued for There is concept of being crossed.
    payment to bearer on demand. Bills of
    this kind can be issued by the Reserve
    bank of India and by Indian
    government.
    A cheque does not require the Bill are not printed in form. Maturity related provision of the act
    acceptance of the drawee bank. apply on Promissory note.

    A cheque can be used for payment A bill requires an acceptance from the A Promissory note has no defined
    from the date of issue. issuers before payment. form.

    A Cheque does not require any A bill becomes mature for payment as A note must be stamped.
    stamping. per the rules of maturity.

    A cheque may be crossed. A bill of exchange requires stamping as No penal offence


    it makes it authentic.
    If a cheque gets dishonored then this Bill of exchange except bank drafts A Promissory note is discounted
    amounts to a offence which is penal. cannot be crossed.

    If the drawer dies or becomes insane Dishonor of a bill does not amount to an No such limit or provision for validity.
    the the payment of cheque is offense.
    stopped.

    Can be issued as payable to bearer on If the maker of Bill dies then the legal The legal heirs of the person who
    demand. heirs become liable for payment. executed the Promissory Note become
    liable for the amount.
    Signature can happen via digital A Bill cannot be issued as payable to
    signature. bearer on demand.

    Cheque can be presented again if Signature cannot happen with digital


    dishonored. signature.

    Cheques can be issued for a later Bill can be presented only once.
    date.

    Cheques is generally valid for six Bills cannot be issued for later date.
    months.

    Cheque can be in electronic form or No such validity of bill of exchange. A


    be truncated. bill cannot be like any of them.

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