Cheque |
Bill of Exchange | |
Drawee | Only a banker can be a drawee. | Anyone can be drawee, including a banker. |
Acceptance | A cheque requires no acceptance. | It must be presented for acceptance. Drawee
is liable only after his acceptance. |
Payment | Payable on demand without any days of grace. | A bill is normally entitled to three days of grace after maturity, unless payable on
demand. |
Presentment | If not presented to the banker for payment, it does not discharge the drawer unless he suffers injury or
damages. |
Drawer is discharged, if bill is not presented for payment to the acceptor. |
Notice | In case of dishonour no notice of
dishonour is necessary |
Notice of dishonour is to be given to all the
parties liable to pay. |
Crossing | A cheque may be crossed. | Bill can never be crossed. |
Stamp | Cheque requires no stamp. | Bill has to be properly stamped. |
Countermanding
payment |
Payment of cheque may be
countermanded by the drawer. |
Payment of bill of exchange cannot be
countermanded by the drawer. |
Noting and
protesting |
A cheque is not required to be noted or
protested for dishonour. |
A bill of exchange may be noted or
protested for dishonour. |
Payable to bearer on
demand |
A cheque can be dawn payable to the bearer on demand. | A bill of exchange cannot be drawn payable to bearer on demand. |
Distinguish between ‘Bill of Exchange’ and ‘Cheque’
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