JOIN NOW

Commercial Applications

Distinguish between a cheque and bill of exchange.

Banking

2 Likes

Answer

Distinction between Bill of Exchange and Cheque

S.No.Point of DistinctionBill of ExchangeCheque
1.DraweeA bill may be drawn on any one including a banker.A cheque is always drawn on a banker.
2.AcceptanceA bill has to be accepted by the drawee to make him liable.A cheque does not require acceptance.
3.Payment and days of graceA bill is not payable on demand; three days of grace are allowed.A cheque is always payable on demand and no days of grace are allowed.
4.CopiesA foreign bill is prepared in three copies.A single copy of cheque is used.
5.CrossingA bill is not crossed.A cheque can be crossed.
6.StampingA time bill must be stamped.No stamps are required on a cheque.
7.Countermanding of paymentPayment of a bill cannot be countermanded.Payment of a cheque can be countermanded (stopped).
8.LiabilityA bill must be presented for payment on the due date; otherwise the drawee will be free from liability.A cheque should be presented within reasonable period, but delay does not relieve the drawer of liability.
9.Notice of dishonourIf the bill is dishonoured, the holder must give notice to the drawer.If the cheque is dishonoured, the holder need not give notice to the drawer.

Answered By

3 Likes

Related Questions