Distinction between Bills of Exchange and Cheque
Distinction between Bills
of Exchange and Cheque:
Bill of Exchange
· This requires acceptance by the drawee.
· This can be drawn on any person including bank.
· Notice of dishonour is necessary.
· A bill of exchange may be payable either on demand or after a specified period.
· A bill of exchange generally requires stamping.
· Bills of exchange can not be crossed
· A time bill should be presented on the due date.
· This does not require acceptance.
· This can be drawn on Bank only.
· Notice of dishonour is not necessary.
· Cheque is always payable on demand
· This does not require stamping.
· A cheque may be crossed.
· A cheque can be presented at any time within 6 months from the date of cheque.
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