State the five differences between Bill of Exchange and Promissory Note.

Question

BasisBill of Exchange.Promissory NoteDrawerIt is drawn by the creditorIt is drawn by the debtor.PartiesThere can be thre...

Accepted Answer

BasisBill of Exchange.Promissory NoteDrawerIt is drawn by the creditorIt is drawn by the debtor.PartiesThere can be thre...

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.