Bill of Exchange v/s Promissory Note

The forum is dedicated to all who deals with LCs. Please share your experiences, problems and opinions with us. You are requested to be confined to LC related issues only. Let us together discover the beauty of Letter of Credit. Thank and regards – admin; besttradesolution.com
Post Reply
ravim
Posts: 1
Joined: Sat Apr 04, 2015 12:46 pm
First Name: Ravi
Last Name: Menghani
Organization: Mashreq
Filter: Two Plus Two =: 4
Location: India

Bill of Exchange v/s Promissory Note

Post by ravim » Sat Apr 04, 2015 2:16 pm

Can anyone help me out the main differences between bill of exchange and promissory notes.

hardy2175
Posts: 34
Joined: Mon Jun 13, 2011 12:23 pm
First Name: hardy
Last Name: singh
Organization: bank
Filter: Two Plus Two =: 4

Promissory note Bill of Exchange

Post by hardy2175 » Thu Apr 09, 2015 6:08 pm

The basic difference is in case of promissory note the drawer is promising to make the payment due . Incase of a bill of exchange the drawee accepts to make the payment as instructed by the drawer.

User avatar
YegonAggrey
Posts: 2
Joined: Thu Apr 09, 2015 9:36 pm
First Name: Aggrey
Last Name: Yegon
Organization: Barclays Bank Kenya
Filter: Two Plus Two =: 4
Location: Kenya

Re: Bill of Exchange v/s Promissory Note

Post by YegonAggrey » Wed Apr 22, 2015 8:58 pm

In a basic transaction involving Seller & Buyer, A Promissory Note is issued by the buyer addressed to the seller whereas a Bill of Exchange is issued by the seller addressed to the buyer. These 2 parties will agree which instrument to choose, it's highly improbable that both a PN & BoE are employed in the same transaction for the same payment obligation. Both are negotiable instruments so they serve the same primary function i.e an obligation of the buyer to pay the seller for goods/services rendered.

Post Reply