"Great things never come from comfort zone"           "Wealthy people invest first and spend what’s left and broke people spend first and invest what’s left"           "Investment is an asset or item that is purchased with the hope that it will generate income or appreciate in the future"           "The secret to getting ahead is getting started.................Start using your Savings to Earn Money"           "The best gift, and investment, you can give your child is your time"           "Investing in your child’s education is never a wasted effort"           "Making money and handling money are both different things"

Difference-between-Bill-of-Exchange-and-a-Promissory-Note

 

Difference between Bill of Exchange and a Promissory Note

79715 views
26
What is Bill of Exchange & Promissory Note and their difference is as under-
   
What is Bill of Exchange -

A bill of exchange is an instrument in writing containing an unconditional order signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument.

 
What is Promissory Note -

A promissory note is an instrument in writing (not being a bank note or a currency note) containing an unconditional undertaking, signed by the maker, to pay a certain sum of money only to, or to the order of, a certain person.

   

There is a difference between Bill of Exchange and a Promissory Note, is as under-

Particulars

Bill of Exchange

Promissory Note

Meaning

A bill of exchange contains an order from the creditor to the debtor to pay a specified amount to a person mentioned therein.

A promissory note is an instrument in writing containing an unconditional undertaking, signed by the maker to pay a certain sum of money.

Negotiable Instrument Act

Bill of Exchange defined under section 5 of Negotiable Instrument Act.

Promissory Note defined under section 4 of Negotiable Instrument Act.

Parties

There may be three parties i.e. the drawer, the acceptor and the payee.

There are only two parties i.e. Maker and Payee

Drawn by

It is drawn by the creditor

It is drawn by the debtor

Liability

The liability of a drawer of bill of exchange is secondary and conditional.

The liability of the maker of a promissory note is primary and absolute.

Acceptance

Bill of Exchange requires an acceptance by the drawee.

Promissory Note does not require any acceptance by the drawee.

Copies

A single copy is prepared, except in case of foreign bills. (3 copies are made)

One copy is prepared in all cases.

Notice in case of dishonour

In case of dishonour of bill of exchange either due to non-payment or non-payment or non-acceptance, notice must be given to all person liable to pay.

In case of dishonour of promissory note, notice of dishonour to maker is not necessary.

Stamps

Stamping is necessary for a bill of exchange except for “bills payable on demand”.

Stamping is necessary for promissory notes without any exceptions.

Payable to bearer

A bill of exchange can be so drawn provided it is not payable to bearer on demand.

A promissory note cannot be made payable to a bearer.

Payable to maker

In the case of bill of exchange, the drawer and the payee may be one person.

In a promissory note, the maker cannot pay to himself.

 
See the related post : Sovereign Gold Bonds Scheme



Comments

Dani on 11/4/2022 5:58:29 AM says:
Thanks
Gg on 4/17/2022 9:57:31 AM says:
Rubish talk
Nikki on 3/31/2022 7:13:08 AM says:
I cant see promersery note
Kajal on 3/29/2022 9:55:17 AM says:
Thnxxx👍🏻
Sammy on 3/13/2022 4:17:24 PM says:
Hey
Manikangkana kalita on 3/11/2022 7:21:14 PM says:
I want to join
Gando on 2/12/2022 6:26:58 AM says:
Hi sexy girls Please contact me for sex
Spiderman on 1/8/2022 11:15:04 AM says:
Rotate your phone idiots
Anika Samia on 11/7/2021 3:12:49 PM says:
U r gay
KUNAL on 7/29/2021 11:42:01 PM says:
PROMISSORY NOTES are not visible. Please rotate the table
Student on 2/5/2021 9:51:13 AM says:
I can't see promissory note at all
Ojo victoria on 11/7/2020 10:51:00 PM says:
I can't see the promissory note at all

Leave a Reply

Name *
Comments *
   

© 2024 - EnSkyAR Financial Services