The following are the points of distinction between a promissory note and a bill of exchange:1. In a promissory note, there are only two parties—the maker (debtor) and the payee (creditor). In a bill of exchange, there are three parties, namely, drawer, drawee and payee; t...
A person, and a promissory note, has only two basic parties, the drawer (the drawee and the drawer, the same person) and the payee. (2) a check must have a financial relationship between the drawer and the payer to issue a check; the drawer of the bill of exchange and the drawee d...
The following are the points of distinction between a promissory note and a bill of exchange: 1. In a promissory note, there are only two parties—the maker (debtor) and the payee (creditor). In a bill of exchange, there are three parties, namely, drawer, drawee and payee; though two ...
This cheque is payable by the drawee bank over the counter to the Bearer or presenter of the cheque. A Bearer cheque can be negotiated or pass to another person by mere delivery. In other words, the holder (or the Transferer), when giving it to another person need not endorse the chequ...
P > commercial draft is issued by the drawer. The drawee pays the bill to the payee or bearer on condition of the specified date. The time limit for payment of the commercial draft is agreed by the two parties, but the longest period is not more than six months. The time limit for ...
Stale Cheque refers to a cheque which is expired because it is held by the payee for too long. So, it cannot be honoured and is of no use to the payee. In finer terms, a stale cheque is one that is presented for payment by the payee, at the drawee bank for encashment, but not ...
Payee: Party to whom the amount is transferred. In demand draft, drawer and drawee are basically two different branches of the same bank, however, the payee is the third party, to whom the payment is to be made. Also Read:Difference Between Banker’s Cheque and Demand Draft ...
The parties to the collection include the trustor, the collecting bank, the collecting bank and the drawee. General procedure of collection: filling in collection, collecting bank collection, collecting bank to importer, importer payment, collecting bank to pfer payment to the receiving bank, and co...
directing the drawee to pay a certain sum of money to payee addressed in the instrument. The bill is made and signed by the drawer and accepted by the drawee. It contains a pre-determined date on which the payment is to be made to the payee. It can be payable on demand when the bil...
The drawee must accept Bill. Order to pay money only as well as the amount should be definite. Delivering the bill to the payee is a must. Types of Bill of Exchange The creditor makes Bill of Exchange. It is used in business to settle the debt between the parties. ...