(1) In the case of a cheque the drawee – i.e., the person on whom the bill is drawn – must always be banker whereas in the case of a bill of exchange the drawee may be any person.
2) No days of grace are allowed in the case of a cheque, and a cheque is as a rule, payable on demand, whereas three days’ grace is allowed in the case of a bill.
3) In the case of a dishonour of a cheque, notice of dishonour is not necessary whereas notice of dishonour is usually required in the case of a bill.
4) A cheque can be drawn to bearer and made payable on demand, whereas a bill cannot be bearer if it is made payable on demand.
5) In the case of a cheque, it is not necessary to present it for acceptance. It needs only is advisable to present them for acceptance even when it is not essential to do so.
6) Cheque do not require to be stamped in India, whereas bill must be stamped according to the law. In England and several other countries, cheques also are required to be stamped.
7) A cheque may be crossed, whereas a bill cannot be crossed.
Generally, it must be remembered that cheques are negotiable instruments and the most of the rules in relation to bills of exchange also apply to cheques.
2) No days of grace are allowed in the case of a cheque, and a cheque is as a rule, payable on demand, whereas three days’ grace is allowed in the case of a bill.
3) In the case of a dishonour of a cheque, notice of dishonour is not necessary whereas notice of dishonour is usually required in the case of a bill.
4) A cheque can be drawn to bearer and made payable on demand, whereas a bill cannot be bearer if it is made payable on demand.
5) In the case of a cheque, it is not necessary to present it for acceptance. It needs only is advisable to present them for acceptance even when it is not essential to do so.
6) Cheque do not require to be stamped in India, whereas bill must be stamped according to the law. In England and several other countries, cheques also are required to be stamped.
7) A cheque may be crossed, whereas a bill cannot be crossed.
Generally, it must be remembered that cheques are negotiable instruments and the most of the rules in relation to bills of exchange also apply to cheques.
Difference between Cheque and Bill of Exchange
![Difference between Cheque and Bill of Exchange]()
Reviewed by Hosne
on
10:29 AM
Rating:
