Distinction Between Bills of Exchange and Promissory Note

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Bill of Exchange	Promissory Notes
It is an unconditional order directing a certain person to pay a certain sum of money	It is an unconditional promise to pay a certain sum of money.
Generally, there are three parties in the bill of exchange- the drawer, the drawee and the payee.	There are two parties in a promissory note the promisor or maker and the payee.
A bill of exchange requires acceptance by the drawee after if is drawn by the drawer.	This does not require acceptance. It is Written by the person who will pay the amount.
Bill of exchange may be payable either on order or to the bearer.	Promissory note can not be payable to bearer
In case of Bills of exchange notice of dishonour is given to all parties concerned.	In case of promissory note, notice of dishonour is not required.
The maker (Drawer) of the Bill is liable only when drawee does not make payment.	The maker is primarily liable to pay the amount.
In Case of foreign bills protest is necessary if it is required as per law of the country where bill has been drawn.	Protest is not required for promissory note.

Submitted October 05, 2020 at 12:42AM by mansicocedu https://ift.tt/3iugFrS