Question

Give 5 difference between Bills of exchange promissory note ?​

Answer 1

heya

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

Answer 2

Bill of Exchange

1. A negotiable instrument issued to order the debtor to pay the creditor a certain sum of money within a specific date or on demand.

2. Mentioned in Section 5 of the Negotiable Instruments Act, 1881

3. Three parties involved i.e a drawer, the drawee and a payee.

4. Liability of drawer is secondary and conditional.

5. Bill of exchange can have copies

Promissory Note

1.A negotiable instrument issued by the debtor with a written promise to pay the creditor a certain amount within a specific date or on demand.

2.Mentioned in Section 4 of the Negotiable Instruments Act, 1881

3. Two parties involved i.e a drawer/maker and the payee

4. Liability of drawer is primary and absolute.

5. The promissory note allows no copies.