Question

distinguish between bills of exchange and promissory​

Answer 1

Explanation:

a bill of exchange is an unconditional written order made by the drawer on the drawe to receive the specific sum within the mentioned period. Whereas the promissory note written promise made by the borrower or drawer to repay the amount on a specific date

Answer 2

ANSWER :

❖ The distinguish between Bills of Exchange and Promissory Note are :-

• [1] Definition : According to Section 5 of the Negotiable Instrument Act, 1981, "a Bill of Exchange is an instrument in writing containing and unconditional order signed by Jamaica directing a certain person to pay a certain sum of money only to order to the order of a certain person or to the bearer of the instrument". On the other hand, according to Section 4 of the Negotiable Instrument Act, 1981, "a Promissory Note is an instrument in writing 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 or to the bearer of the instrument".

• [2] Nature : Bills of Exchange in an unconditional order to make payment. Whereas, Promissory Note is a promise to make payment.

• [3] Parties : There are three parties in case of a Bill of Exchange, namely Drawer, Drawee and Payee. On the other hand, there are two parties in case of a Promissory Note, namely Maker and Payee.

• [4] Acceptance : A Bill of Exchange requires the acceptance of the drawee. Whereas, a Promissory Note does not require the acceptance.

• [5] Liability : In case of a Bill of Exchange, the liability of the drawer arises when the acceptor does not pay. On the other hand, in case of a Promissory Note, the promise has the primary liability to pay.