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Bill of Exchange v/s Promissory Note
Posted: Sat Apr 04, 2015 2:16 pm
by ravim
Can anyone help me out the main differences between bill of exchange and promissory notes.
Promissory note Bill of Exchange
Posted: Thu Apr 09, 2015 6:08 pm
by hardy2175
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.
Re: Bill of Exchange v/s Promissory Note
Posted: Wed Apr 22, 2015 8:58 pm
by YegonAggrey
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.