Distinguish between ‘Bill of Exchange’ and ‘Cheque’

	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.

One Comment