bill of exchange features parties and types.pptx

bill of exchange features parties and types as per negotiable instruments

1. DIFFERENCE BETWEEN promissory note & BILL OF EXCHANGE PRESENTED BY: ALINA FEROZ. PRESENTED TO: NASREEN LALANI.

2. PROMISSORY NOTE A promissory note contains a promise to pay. There are two parties in promissory note Maker Payee It is payable on demand . Notice of dishonor for non payment is not necessary in case of promissory notes. A bill of exchange contains an order for making payment. There are three parties in bill of exchange drawer drawee Payee It is payable on demand . Notice must be given to all persons liable to pay in case of dishonor of bill of exchange BILL OF EXCHANGE PROMISE & ORDER PARTIES PERIOD NOTICE OF DISHONOR

3. Grace days are allowed in case of promissory note . Promissory note needs no acceptance . The liability of maker is primary and absolute in case of promissory note . Stamp is a legal necessity. Grace days are allowed . Acceptance i s must for bill of exchange. In case of bill of exchange, the liability of drawer of bill is secondary . Stamp is a legal necessity. PROMISSORY NOTE BILL OF EXCHANGE GRACE DAYS NATURE OF LIABILITY ACCEPTANCE STAMP

4. Promissory note cannot be crossed . It contains an unconditional promise. It cannot be crossed. It contains an unconditional order to pay. PROMISSORY NOTE BILL OF EXCHANGE CROSSING UNCONDITIONAL