Difference Betwixt Neb Of Central As Well As Promissory Note

Friends, inwards our concluding posts nosotros gave you lot a brief introduction about  Bill of Exchange as well as Promissory Notes. In this post nosotros shall speak over the differences betwixt them. 

Differences betwixt Bill of Exchange as well as Promissory Note :

Following are the points of divergence betwixt a bill of central and a promissory note.
  1. Number of Parties :  
    1. Bill of Exchange : There are iii parties inwards a Bill of Exchange they are, Drawer, Drawee as well as Payee.
    2. Promissory Note : There are exclusively 2 parties inwards representative of promissory note, they are Maker as well as Payee.
  2. Promise as well as Order : 
    1. Bill of Exchange : Bill of Exchange contains an unconditional club to pay.
    2. Promissory Note : Promissory annotation contains a conditional hope to pay.
  3. Acceptance :
    • Bill of Exchange : Bill of Exchange requires credence past times the Drawee
    • Promissory Note : Promissory annotation does non withdraw whatever credence every bit debtor himself prepares it.
  4. Nature of Liability :
    • Bill of Exchange : In representative of Bill of Exchange the drawer’s liability is secondary.
    • Promissory Note : In representative of Promissory annotation the liability of the maker is primary.
  5. Maker’s Position :
    • Bill of Exchange : In representative of Bill of Exchange maker is a creditor.
    • Promissory Note : In representative of promissory note, maker is a debtor.
  6.  Formalities inwards representative of Dishonor :
    • Bill of Exchange : Notice of dishonor is essential inwards representative of Bill of Exchange.
    • Promissory Note : No Notice of dishonor is essential inwards representative of promissory note.

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