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.
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.
