DIFFERENCE BETWEEN THE PROMISSORY NOTE & THE BILL

by • 17/06/2011 • 2nd year BankingComments (0)643

BILL OF EXCHANGE

PROMISSORY NOTE

1.A bill involves three parties: a. Drawer, b. Drawee, c. Payee

There are only two parties to it: a. Maker, Drawer (Debor), or Promissor

b. Promissee Creditor, or Drawee

2.It is an unconditional order

It is an unconditional promise.

3.It must be accepted, or else it will not be valid.

It requires no acceptance.

4.The responsibility of the drawer is secondary and depends on dishonor

The responsibility of the drawer is primary and final

5.Notice must be served in case of dishonor.

No notice is required in dishonour.

6.It may be accepted conditionally.

It cannot be conditional in any case.

7.It can be issued or drawn in sets.

It cannot be drawn in sets.

8.The drawer / maker is the creditor

The drawer / maker is the debtor.

Pin It

Leave a Reply