Name : Shalaka Phatak

Roll no. : 170

Div : C

Basics Cheque Bill Of Exchange Promissory Note

       
Meaning It is an instrument in It is a written order It is a written
writing which contains drafted by the drawer promise made by
an unconditional order on demand to pay a the drawer to pay a
addressed to a banker specific sum within a definite amount to
signed by the person mentioned time period the payee on a
who has deposited without any period. specified date.
money with the banker,
requiring him to pay on
demand a certain sum
of money to or the
order of the certain
person on the bearer of
instrument.
       
Parties drawer, drawee and drawer, drawee, drawer and payee.
payee. payee.
       
Drawn by account holder of a creditor debtor
bank
       
order/Promise An order for payment is an order to pay a promise to pay
given to the bank

Stamp duty no stamps are required Stamps are required Stamps are required
on bill of exchange on promissory note
       
Defined Under section 6 of negotiate section 5 of Section 4 of
instrument act,1881 negotiation instrument negotiate
act,1881 instrument act,1881
       
Grace time 3 days of grace in 3 days are not allowed 3 days of the grace
cheque when bill is payable on are given in
demand promissory notes
payable after a
specified time
       
Crossing cheque can be crossed crossing on bill of Crossing is not
exchange is not required
allowed
       
Area Only on the bank of inland and foreign Generally inland
depositor
       
Acceptance not required A legal necessity Not required
       

SIMILARITIES between cheque, Bill of exchange, promissory

note:

 They are negotiate instruments 

 always in writing 
 Addressing the payment to make
 Signed by the drawer of the instrument.