Distinction between a Cheque and Promissory note

Distinction between a Cheque and Promissory note Sl. No. Basic of Difference Bill of Exchange Promissory Note . Nature of Undertaking A bill of exchange contains an unconditional order to pay money. A promissory note contains an unconditional undertaking to pay money. . No. of Parties There are three parties in a bill of exchange drawer ,drawee and payee. In a promissory note there are only two parties the maker and the payee. . Drawer of the instrument A creditor draws a bill on a debtor. A debtor executes a promissory note in favour of a creditor. . Identity of the parties In a bill of exchange, both the drawer and the payee can be one and the same person. In a promissory note, the maker himself cannot be the payee because the same person cannot be both the promisor and the promisee.