Bill of Exchange Vs Promissory Note

DIFFERENCE B /W PROMISSORY NOTE AND BILL OF EXCHANGE

BILL OF EXCHANGE 

1. A bill involves three parties: 

a. Drawer, 

b. Drawee, 

c. Payee
2. it is an unconditional order.

3. It must be accepted, or else it will not be valid.
4. The responsibility of the drawer is secondary and depends on dishonor.
5. Notice must be served in case of dishonor. 

6. it may accepted conditionally. 

7.It can be issued or drawn in sets.  

8.The drawer/maker is the creditor. 

PROMISSORY NOTE

1. There are only two parties to it: 

  a Maker, Drawer(Debtor)  or Promissory. 

  b Promisee Creditor, or Drawee 

2. It is an unconditional promise

3. It requires no acceptance. 

4.the responsibility of the drawer is primary and final

5.No notice is required in dishonor

6. It cannot be conditional in any case

7.It cannot be drawn in sets.

8.The drawer/maker is the debtor.