State any three differences between Bill of Exchange and Promissory Note.

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Ans: Difference between bill of exchange and Promissory Note:BasisBill of ExchangePromissory NoteDrawerIt is drawn by th...

Accepted Answer

Ans: Difference between bill of exchange and Promissory Note:BasisBill of ExchangePromissory NoteDrawerIt is drawn by th...

Basis	Bill of Exchange	Promissory Note
Drawer	It is drawn by the creditor.	It is drawn by the debtor.
Parties	There can be three parties to it, viz. the drawer, the Drawee and the payee.	There are only two parties to it, viz. the drawer and the payee.
Order or Promise	It contains an unconditional order to pay.	It contains an unconditional promise to pay.
Acceptance	It requires acceptance by the Drawee or someone else on his behalf.	It does not require any acceptance.
Payee	Drawer and payee can be the same party.	Maker cannot be the payee of it.
Set	A bill of exchange can be drawn in sets.	Promissory note cannot be drawn in sets.