This article will help you to learn about the between a bill of exchange and a cheque.
Difference between Bill of Exchange and Cheque
Bill of Exchange
1. Drawn On:
It is usually drawn on any person.
2. Acceptance:
ADVERTISEMENTS:
Acceptance of bill of exchange is necessary before its payment can be claimed.
3. Days of Grace:
Three days of grace are allowed from the due date within which the payment can be made.
4. Crossing:
ADVERTISEMENTS:
It cannot be crossed.
5. Duration:
It is payable on demand or on the expiry of a specified time.
6. Notice of Dishonour:
ADVERTISEMENTS:
In case of bill of exchange the notice of dishonour is necessary to hold the parties liable there on.
7. Countermanding:
The payment cannot be countermanded.
8. Noting and Protesting:
ADVERTISEMENTS:
A bill of exchange is noted and protested in case of dishonour.
9. Stamp:
It requires a stamp.
10. Payable to Bearer on Demand:
ADVERTISEMENTS:
Bill of exchange can never be drawn payable to the bearer.
Cheque
1. Drawn On:
It is always drawn on a bank.
2. Acceptance:
ADVERTISEMENTS:
A cheque does not require any acceptance.
3. Days of Grace:
No days of grace are allowed for the payment of a cheque.
4. Crossing:
ADVERTISEMENTS:
It can be crossed.
5. Duration:
It is always payable on demand.
6. Notice of Dishonour:
In case of a cheque, notice of dishonour is not required.
7. Countermanding:
ADVERTISEMENTS:
The payment can be countermanded.
8. Noting and Protesting:
A cheque is not to be noted and protested in case of dishonour.
9. Stamp:
It requires no stamp.
10. Payable to Bearer on Demand:
ADVERTISEMENTS:
A cheque can be drawn payable to the bearer.