Append below are the main differences/distinction between:
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Bill Of Exchange |
Promissory Note |
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There are three parties namely drawer, drawee and payee |
There are only two parties viz maker and payee |
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The drawer and payee may be the same person |
Maker cannot be the payee |
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There is an unconditional order to drawee to pay according to the drawer’s direction |
Contains an unconditional promise by the maker to pay to the payee or to his order |
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Payable after sight must be accepted by the drawee or someone else on his behalf before it can be presented for payment |
Presented for payment without any prior acceptance by the maker |
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The liability of the drawer is secondary and conditional |
Liability of a maker of promissory note is primary and absolute. |