due on . NAME: DATE: PROMISSORY NOTE .Number . Time of a Note . Date of a Note .
Payee . Maturity Date . Interest Rate . Maker .
Principle 12th Commerce Unit - - . . AM Sl. No.
Basic of Difference Bill of Exchange Cheque . Drawn A bill of exchange can be drawn on any person including a banker A cheque can be drawn only on a particular banker. . Payability It is payable on demand or on the expiry of a certain period.
It is payable on demand only. . Validity A bill made payable to bearer on demand is void by virtue of section of the RBI Act. A cheque drawn payable to bearer on demand is perfectly valid.
. Acceptance In case of time bill, acceptance by the drawee is necessary before he can be made liable on it. A cheque does not require any acceptance. .
Grace period Three days of grace are allowed while calculating the maturity date in the case of time bill. No days of grace are allowed in the case of a cheque for the simple reason that is always payable on demand. . Notice When a bill is dishonoured, notice of dishonour is necessary.
Notice is not necessary for a cheque. . Sets Foreign bills of exchange are drawn in sets of three. It is not so in case of cheque.
. Discounting A bill can be discounted with a bank. A cheque cannot be discounted. .
Stamping Bills are to be sufficiently stamped Cheques need not be stamped . Currency A bill can be drawn and payable in any currency. A cheque is payable only in home currency. .
Crossing A bill cannot be crossed A cheque can be crossed either generally or specially so as to ensure payment to the rightful owner. . Dishonour On dishonour of a bill there is a practice of noting and protesting No such thing is done on the dishonour of a cheque. .
Discharge from Liability The drawer of bills is discharged from liability if