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Can You Discuss The Difference Between A Cheque And A Bill Of Exchange.

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Anonymous Profile
Anonymous answered
A cheque is a bill of exchange payable on demand. A bill of exchange, is an order from A to B to pay, a sum either to himself, A, or to a third party, C. When it is payable forthwith it is a cheque and bears a penny stamp ; when it is payable at a futures date it is a bill of exchange and bears a stamp 'ad valorem, varying with the amount of the sum named. It is characteristic of monetary nomenclature, which seems to try to confuse matters by applying illogical and confusing names, that the title "bill of exchange" should be given both to the genus and to one of the species into which it is divided.
Another distinction exists in the eye of the law, from the fact that a cheque, according to its legal definition, must be drawn on a bank, whereas a bill may be drawn on a bank but is more often drawn on a merchant or accepting house, or any debtor who gives his creditor the right to draw on him.
Sajid Majeed Profile
Sajid Majeed answered
Cheque:It is always drawn on a specified banker.It is immediately payable on demand without any grace.It does not require acceptance.Its drawer is not discharged by the holder's failure to present it in due time unless the bank fails.It may be crossed.Notice of dishonour is not necessary when a cheque is not met.No noting and protesting is required.
The banker is protected if he pays a cheque under forged endorsement.

Bill of exchange:It may be drawn on any body including a bank.It may be payable on demand or at a fixed date.It requires acceptance, unless it is payable on demand.It is entitled to three days of grace.Its drawer and endorsers are discharged from liability, if the holder fails to present it to the accepter at a due date.It can never be crossed.A notice of dishonour must be given.Nothing and some time protesting are required.No such protection is afforded to a drawer in case of bill.
Anonymous Profile
Anonymous answered
A Bill of Exchange is a written order directing that a specified sum of money be paid to a specified person.  Types can be promissory notes, cash, cheques.

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