Question

distinguish between bill of exchange and cheque

Answer 1

Answer:

The Cheque is the document which contains an order to the bank to pay a certain amount of money from the account of the customer. The Bill of Exchange is the document which contains an order to drawee to pay a certain amount to the payee on demand or after certain time period.

Explanation:

Answer 2

Answer:

Cheque

1. A cheque has no grace period once it is presented for the payment.

2. A bill of exchange has three days of grace period.

Bill of Exchange

1. A Cheque does not need any approval from the parties before presented for payment.

2. A bill of exchange needs an approval from the drawee for the payment.